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NTPM HOLDINGS BERHAD (384662-U)
No. 886, Jalan Bandar Baru,Sungai Kecil, 14300 Nibong Tebal,Seberang Perai Selatan, Pulau Pinang.Tel No: 04-593 1296 / 04-593 1326 Fax No: 04-593 3373 Email: [email protected]
Let’s go green.Spread the message around
NTPM HOLDINGS BERHAD (384662-U)
启顺造纸业有限公司(Incorporated in Malaysia)
Annual Report 2009
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Corporate Information
Chairman Statement
Managing Director’s Review Of Operations
Board Of Directors
Group Financial Highlights
Group Structure & Activities
Corporate Social Responsibility
Statement On Corporate Governance
Audit Committee
Statement On Internal Control
Other Information Required By The Listing Requirements Of Bursa Malaysia Securities Behad
Statement Of The Directors’ Responsibilities In Relation To The Financial Statements
Financial Statements
List Of Properties
Analysis Of Shareholdings
Notice Of Annual General Meeting
Statement Accompanying The Notice Of Annual General Meeting
Proxy Form
Contents
In Malaysia alone, over 4000 hectaresof land have been cleared for development
and 4 million trees felled every year andthe numbers are still growing.
Do you know?
Our Brands:-
NTPM HOLDINGS BERHAD (384662-U) 1
BOARD OF DIRECTORS
Dato’ Teoh Boon Beng@ Teoh Eng Kuan~ Non-IndependentNon-Executive Chairman
Lee See Jin~ Managing Director
Lee Chong Choon~ Executive Director
Teoh Teik Toe~ Non-IndependentNon-Executive Director
Lim Han Nge~ Senior IndependentNon-Executive Director
Chang Kong Foo~ Independent Non-Executive Director
Teoh Teik Lin~ Alternate Director to Dato’ Teoh Boon Beng @ Teoh Eng Kuan
COMPANY SECRETARY
Thum Sook Fun(MAICSA 7025619)
REGISTEREDOFFICE
Suite 18.05, MWE Plaza,No. 8, Lebuh Farquhar, 10200 Pulau Pinang.Tel: 04-263 1966Fax: 04-262 8544
AUDITORS
Ernst & YoungChartered Accountants22nd Floor, MWE PlazaNo. 8, Lebuh Farquhar, 10200 Pulau Pinang.
AUDITCOMMITTEE
Chang Kong Foo~ Independent Non-Executive Director, Chairman
Lim Han Nge~ Senior IndependentNon-Executive Director, Member
Teoh Teik Toe~ Non-IndependentNon-Executive Director, Member
HEAD OFFICE
No. 886, Jalan Bandar Baru, Sungai Kecil,14300 Nibong Tebal,Seberang Perai Selatan,Pulau Pinang.Tel No : 04-593 1296 / 04-593 1326Fax No : 04-593 3373Email : [email protected] Website : www.ntpm.com.my
PRINCIPAL BANKERS
Malayan Banking BerhadHSBC Bank Malaysia BerhadUnited Overseas Bank (Malaysia) BhdOCBC Bank (Malaysia) Berhad
SHAREREGISTRAR
Securities Services (Holdings) Sdn BhdSuite 18.05, MWE Plaza,No. 8, Lebuh Farquhar,10200 Pulau Pinang.Tel: 04-263 1966Fax: 04-262 8544
STOCK EXCHANGE LISTING
Main Board ofBursa Malaysia Securities BerhadStock Name: NTPMStock Code: 5066
CORPORATE INFORMATION
NTPM HOLDINGS BERHAD (384662-U)2
On behalf of the Board of Directors, I am pleased to present the Annual Report and Audited Financial Statements of NTPM Holdings Berhad (“Company” or “NTHB”) for the financial year ended 30 April 2009.
REVIEW OF RESULTS
The Group produced yet another set of excellent results for the year under review. Revenue surged by 17% to RM358.56 million for the financial year ended 30 April 2009, beating previous year high of RM306.17million, whilst profit before tax grew to a record RM58.68 million for the financial year 2009, a 41% increase over RM41.62 million for the last financial year.
The improvements in the Group’s profit for the financial year ended 30 April 2009 was principally due to the increase in sales, softening of some commodity prices towards the second half of the financial year 2009 and the continuous improvements of Group’s operation and distribution efficiencies.
FINANCIAL HIGHLIGHTS
SIGNIFICANT CORPORATE DEVELOPMENTS
In order to increase the capital base of the Company to a level which will better reflect the Group’s current scale of operations and also to reward the shareholders of the Company for their continuing support by enabling them to have greater participation in the equity of the Company in terms of the increased number of shares held, the Company had on 23 February 2009 announced to Bursa Malaysia Securities Berhad (“Bursa Securities”) that the Company proposed to undertake a bonus issue on the basis of Four (4) new ordinary shares (“Shares”) for every Five (5) existing Shares held (“Bonus Issue”). On the same date, an announcement was also made in respect of the proposed purchase by the Company of its own Shares (“Share Buy-Back”). The rationale for the Share Buy-Back was to enable the Company to utilize its financial resources not immediately required for use, to purchase its own Shares and also, to allow the Company to take preventive measures against speculators.
CHAIRMAN’S STATEMENT
Year ended 30 April2009
RM’000 2008
RM’000 Change
%
Revenue 358,557 306,173 17.1
Operating profit 60,719 43,989 38.0
Profit before taxation 58,677 41,618 41.0
Profit after taxation 46,305 33,163 39.6
Profit attributable to Shareholders 46,222 33,121 39.6
Shareholders’ equity 203,251 183,078 11.0
Current assets 131,020 114,331 14.6
Current liabilities 83,178 79,678 4.4
Borrowings 44,801 40,101 11.7
Total assets 313,628 291,572 7.6
Earnings per share (sen)@ 4.12 2.95 39.6
Net assets per share (sen)@ 18.1 16.3 11.0
Net dividend per share (sen)@ 2.62 2.25 16.4
Gearing (times) 0.22 0.22 0.0
Current ratio 1.58 1.43 10.5
Return on shareholders’ equity (%) 22.7 18.1 25.4
@ Computed based on enlarged number of ordinary shares in issue after bonus issue exercise which was completed on 7 April 2009.
Revenue surgedby 17% to RM358.56 million for thefinancial yearended 30 April 2009
NTPM HOLDINGS BERHAD (384662-U) 3
Bursa Securities had on 17 March 2009 approved the listing and quotation of 499,200,000 new Shares to be issued pursuant to the Bonus Issue. The Company had subsequently obtained approval from the shareholders for the Bonus Issue on 20 March 2009. A total of 499,200,000 new Shares had been issued and allotted to the shareholders of the Company pursuant to Bonus Issue on 6 April 2009 and then listed and quoted on the Main Board of Bursa Securities on 7 April 2009.
CHANGES IN GROUP COMPOSITION
A wholly owned subsidiary, Nibong Tebal Paper Products Sdn Bhd (“NTPP”) had been incorporated on 24 November 2008 with the authorized share capital of Ringgit Malaysia Five Million (RM5,000,000) and paid-up share capital of Ringgit Malaysia One Million (RM1,000,000). Subsequent to financial year ended 30 April 2009, NTPP has embarked on its business, which principally involved in manufacturing of stationery paper products.
CHANGES IN THE BOARD COMPOSITION
We welcomed Mr. Chang Kong Foo, who joined the Board in September 2008 as Independent and Non-Executive Director. Mr. Chang brings a wealth of expertise in areas of audit, tax, accounting, business development, financial planning and corporate secretarial services.
In September 2008, we also announced the appointment of Mr. Teoh Teik Lin as an Alternate Director to Dato’ Teoh Boon Beng @ Teoh Eng Kuan. Mr. Teoh brings entrepreneurial insight and has a successful background in wood based industries in Malaysia.
During the financial year, Mr. Tan Hock Soon resigned from the Board after five years’ service. We are hugely indebt to Mr. Tan for his support and contribution over that period, and particularly for chairing our Audit Committee from its inception.
DIVIDENDS
In line with the favourable results, the Board of Directors is pleased to recommend for shareholders’ approval a single tier final dividend of 14.5% amounting to RM16.29 million for the financial year ended 30 April 2009. This final dividend, if approved, shall be payable on 18 September 2009 to the shareholders registered in the Company’s books at the close of business on 10 September 2009.
Together with declaration of the single tier interim dividend of 11.7% which had been paid on 22 April 2009, the total dividend for the financial year 2009 will be 26.2%. The total dividend per Share based on the enlarged number of Shares in issue after Bonus Issue exercise for the financial year ended 30 April 2009 would be amounted to 2.62 sen, reflecting a 16% increase from the previous financial year of 2.25 sen.
TRENDS AND PROSPECTS
The outlook for the world and domestic economy remains challenging. The volatile commodity prices, tight liquidity and lower consumer spending will undoubtedly affect the Group’s profitability. In view of this situation, it is imperative for the Group to strive for continuous improvement to further optimize its operations.
The Group is taking the necessary measures to constantly drive for higher sales and continue to protect and grow market share from its competitors by extending the Group’s core product range and intensifying its sales promotion activities for house brand and new product entrant.
ACKNOWLEDGEMENTS
I would like to express my gratitude on behalf of the Board of Directors to all employees for another year of hard work and selfless contributions. I would also like to thank our business partners for their continuous support and in particular our customers for their confidence in our products.
Last but not least, I would like to express my heartfelt thanks to my fellow colleagues on the Board of Directors for their advice and contributions during the past year.
Date : 28 July 2009
CHAIRMAN’S STATEMENT (Cont’d)
NTPM HOLDINGS BERHAD (384662-U)4
主席声明
兹 代 表 董 事 会 呈 交 截 至 2 0 0 9 年 4
月 30日 NTPM Holdings Berhad (“公
司 ”或 “NTHB”) 年 度 报 告 及 已 审 财 务
报表。
业绩回顾
NTHB在 今 年 里 再 次 取 得 卓 越 的 业 绩 表 现 。 截 至
2009年 4月 30日 , 集 团 的 收 入 提 升 17%至 3亿 5千
856万令吉,高于先前的3亿零617万令吉;而税前
盈利则创下5千868万令吉的成长纪录,比上次的4
千162万令吉增长41%。
集 团 2009年 4月 30日 的 盈 利 增 进 表 现 主 要 归 功 于
营 业 收 入 的 增 加 , 财 政 年 度 下 半 年 里 开 始 走 软
的商业价格,以及集团的营运和分销效率的持续
提升。
财务概要
企业发展大事记
为了使公司的资本基础能够实际反映集团现有的
营运规模水平,以及回报股东的支持和让股东在
提高持股量后积极参与公司的股权,公司在2009
年2月23日通知大马证券交易所(“Bursa Securities”)
,以每五(5)股送四(4)股方式( “红股发行”)发送红
股予现有的股东。在同一个日期,公司也宣布回
购股票的建议(“回购股票建议”),以便善用非紧急
的财务资源来回购公司股票,也让公司可预先防
范任何投机活动。
2009年3月17日,大马证券交易所核准集团红股发
行和报价的4亿9千920万股新股。有关红股发行在
2009年3月20日获得股东批准。2009年4月6日,为
数4亿9千920万股,每股面值10仙的新普通股被分
配予公司的股东,并在2009年4月7日於大马交易
所主要交易板上市和报价。
截至4月30日2009
RM’000 2008
RM’000 变化
%
营业额 358,557 306,173 17.1
营运收益 60,719 43,989 38.0
税前盈利 58,677 41,618 41.0
税后盈利 46,305 33,163 39.6
可归股东的盈利 46,222 33,121 39.6
股东权益 203,251 183,078 11.0
流动资产 131,020 114,331 14.6
流动负债 83,178 79,678 4.4
借贷 44,801 40,101 11.7
总资产 313,628 291,572 7.6
每股收益 (仙)@ 4.12 2.95 39.6
每股净资产 (仙)@ 18.1 16.3 11.0
每股净股息 (仙)@ 2.62 2.25 16.4
负债比率 (倍) 0.22 0.22 0.0
流动比率 1.58 1.43 10.5
股东权益的回酬率 (%) 22.7 18.1 25.4
@ 依据在2009年4月7日完成发行红股活动后已扩大之普通股数量 作为计算标准。
NTPM HOLDINGS BERHAD (384662-U) 5
集团的结构变动
2008年11月24日,集团成立独资子公司Nibong Tebal
Paper Products Sdn Bhd (“NTPP”),其法定资本为马币
500万令吉(RM5,000,000),缴足资本为100万令吉
(RM1,000,000)。在截至2009年4月30日,NTPP开始
投入营运,业务主要涉及制造文具纸品。
董事会的结构变动
2008年9月,董事会欢迎郑江湖先生加入成为独立
非执行董事。郑先生在审计、税务、会计、业务
开发、财务策划和企业文书服务方面拥有丰富经
验。同一月份,我们也宣布委任张德麟先生为拿
督张文铭先生的替代董事。张德麟先生具备深厚
的企业洞察力,在大马的木材业有着非常出色的
资历。
在本财政年度,服务满五年的陈福顺先生辞去了
董事会成员职位。我们感谢陈 先 生 在此期间所给
予的支持和服务,尤其是他自审计委员会成立起
所作出的贡献。
股息
配 合 集 团 所 创 下 的 卓 越 表 现 , 截 至 2009年 4 月
3 0 日 , 董 事 会 建 议 并 寻 求 股 东 批 准 一 次 过 发 出
14.5%,总数1千629万令吉的年终单层股息。一旦
获得批准,此项年终股息将于2009年9月18日支付
予在2009年9月10日前注册的所有股东。
上述建议的股息连同2009年4月22日发出的11.7%
中期股息,集团在2009年财政年总共发出26.2%免
税股息。
截至2009年4月30日,在履行发行红股活动后的已
扩大普通股数量中,每股普通股所获得的股息总
额是2.62仙,比去年的2.25仙股息提高16%。
趋向和潜在远景
全球的经济环境仍然充满挑战。显而易见, 商品
价格波动,资金紧缩及消费意愿低迷将影响 集团
未来的盈利潜能。有鉴于此,集团须进行永 续改
进和优化营运能力的工作。
在这方面,NTHB继续采取必要措施以提高营业量
及保护和增加它在竞争市场的占有额,并扩大核
心产品的范畴及为自家品牌和新推介产品积极进
行促销活动。
鸣谢
兹代表董事会向所有雇员在另一年的付出与 无私
的 贡 献 表 达 谢 意 , 也 感 谢 我 们 的 商 务 夥 伴 连续的
支持以及我们的顾客对我们产品的信心。
最后再代表董事会衷心的感谢同事们于去年 的贡
献及献议。
日期:2009年7月28日
主席声明 ( 继 续 )
截 至 2009年 4月 30日 ,集 团 的 收 入 提 升 17%至3亿 5千 856万 令 吉
NTPM HOLDINGS BERHAD (384662-U)6
The Group continued to achieve another year of record-breaking top and bottom line results in spite of the worldwide economic uncertainty and turmoil. Revenue grew by 17% to RM358.56 million from RM306.17 million in the previous year, whilst net profit increased by 40% year-on-year to RM46.31 million from RM33.16 million achieved in the previous financial year 2008.
TISSUE PRODUCTS
Sales of tissue grew by 16% mainly due to the Group’s continuous effort of aggressive marketing strategies and the increase in production capacity. Export demand continue to surge by 21% as the Group gained stronger foothold in the Oceania and USA market whilst making inroads to countries like Vietnam and Nepal.
During the year under review, the Group celebrated its 15th year anniversary of “By Your Side” promotion. One of the major activities carried out during the promotion was the “Get Special Box Edition in 15 seconds” where contestants will receive gifts if they managed to spot the whereabouts of MyFM’s cruiser announced in one the Group’s radio advertisement campaign. The idea of the campaign was primarily to reward loyal customers for their continuous support in turning facial tissue into today’s market leader in Malaysia.
SANITARY NAPKINS
Sales for sanitary napkins enjoyed a satisfactory growth of 17% for the year under review despite facing stiff competition posted by larger conglomerates with worldwide presence. The Group continues to nurture its brand by intensifying its marketing effort to create brand awareness amongst the younger generation. The “Sembang-Sembang Intim” school programme and the appointment of young celebrities as brand ambassador are part of the Group’s brand strategy to instill confidence and youthful spirit associated with the brand.
In addition to Ms Fish Leong, the Group welcomes Ms. Stracie Angie Anam, or popular known as Stacy, “Champion of Akademi Fantasia 6” in January 2009 asnewest brand ambassador. The duo has individually featured in the Group’s print ads, television and radio commercial.
In tandem with the increased business volume, the Group had on 18 August 2008 acquired a factory with a total built up area of 16,200 square meters erected on land held under Pajakan Negeri 62711, Lot 7278, Mukim Parit Buntar, Daerah Kerian, Perak for a total cash consideration of RM2.49 million which was financed by internally generated fund.
The acquisition will provide a platform for future expansion of the Group’s personal care section to cater for higher production capacity to meet the surging demand and also to streamline the Group’s operation by re-locating the personal care division from the existing tissue manufacturing plant.
MANAGING DIRECTOR’S REVIEW OF OPERATIONS
NTPM, a subsidiary ofthe Group, is the firstcompany in Malaysiato achieve EnvironmentChoice New Zealand accreditation.
NTPM HOLDINGS BERHAD (384662-U) 7
AWARDS AND RECOGNITION
During the financial year, the Group’s tissue product has passed one of the highest-rated environmental assessments in the world – product certification by Environmental Choice New Zealand (“ECNZ”). Nibong Tebal Paper Mill Sdn. Bhd. (“NTPM”), a subsidiary of the Group, is the first company in Malaysia to achieve ECNZ accreditation. ECNZ is an environmental labeling programme which has been created to help consumers find products that ease the burden on the environment. The programme has been established to improve the quality of the environment by minimizing the adverse environmental impacts generated by the production, distribution, use and disposal of products. The programme is managed by the New Zealand Ecolabelling Trust.
On the investment compendium for existing and potential shareholders, NTHB was once again featured in the 2009 edition of “OSK Top Malaysian Cap Companies” (The 50 Jewels) handbook. The achievement is even more significant this year considering that OSK Holdings Berhad (OSK”), the
publisher of the book has reduced the number of companies featured in the latest edition from one hundred in the previous year to fifty companies. The criteria for selection is based on OSK’s assessment on companies that make up the “best-of-breed” that are able to endure the economic storm and emerge from a position of strength. Based on their research on the “50 Jewels”, NTHB belongs to the top quadrant in areas of dividend yields and ‘return on equity’.
FUTURE CHALLENGES & STRATEGY
In light of the current economic uncertainties, the Group will rely on its marketing and distribution strength to remain focus on its core businesses, which comprise tissue and personal care segments namely sanitary napkins and baby diapers.
The coming financial year will see the introduction of range of environmental friendly stationary products comprising envelopes, papers and files; with future additions as NTHB continues to carry on research and development into its paper production processes. This stationary product marks an extension of its tissue range as the raw materials are sourced from NTPM existing tissue manufacturing plant.
In view of encouraging baby diapers sales growth of 45% year-on-year, the Group has invested and purchased high tech baby diaper machine. The machine, which arrived in July 2009 will enable the Group to lower its direct cost and also reduce its dependence on Original Equipment Manufacturer (“OEM”).
The Board shall continue to strive to improve on its previous year results. However, the Board is mindful that corporate responsibility is a vital part of NTHB’s core values and environment conservation is topmost on the Group’s list of priorities.
With that in mind, NTHB will continue to improve its production processes to ensure its current and future product range leaves the lightest carbon footprint possible.
Date : 28 July 2009
MANAGING DIRECTOR’S REVIEW OF OPERATIONS (Cont’d)
With that in mind, NTHB will continue to improve its production processes to ensure its current and future product range leaves the lightest carbon footprint possible.
NTPM HOLDINGS BERHAD (384662-U)8
尽 管 面 对 全 球 经 济 不 稳 定 和 金 融 风
暴 , 本 集 团 仍 然 取 得 突 破 性 的 业 务
营 运 表 现 。 集 团 的 营 业 总 收 入 成 长
17%, 即 从 去 年 的 3亿 零 617万 令 吉
增加至3亿5千856万令吉;净盈利按
年对年比例提高40%,从前年的3千
316万令吉增加至4千631万令吉。
纸巾产品
随 着集团积极推动行销策略和提高生产能量,纸
巾 的 销 售 业 绩 取 得 16%成 长 率 。 集 团 在 大 洋 洲 和
美 国 的 稳 固 市 场 带 动 出 口 需 求 量 骤 增 21%, 并 开
始为进驻越南和尼泊尔市场作好准备。
集 团 在 本 财 政 年 度 欢 庆 “By Your Side”
促 销 活 动 1 5 周 年 纪 念 。 促 销 会 进 行 的 一 项
主 要 活 动 是 “Get Special Box Edition in 15
seconds”, 参 加 者 只 要 能 找 出 MyFM组 员 在 集 团 其
中一项电台宣传运动中所宣布的地点就可获得一
份礼物。这项宣传运动的目的旨在回馈今日大马
面纸市场领导者 - 面纸忠实用户所给予
的鼎力支持。
女性卫生棉
尽 管面对全球知名企业巨擘的激烈竞争,本集团
的 卫 生 棉 销 量 仍 然 取 得 令 人 满 意 的 17%成 长 率 。
本集团以开拓年轻市场以及提高品牌知名度,继
续推动 品牌。我们的“Sembang-Sembang
Intim”学校计划,以及委任年轻艺人为品牌代言运
动策略,成功为 注入信心与年轻的活力
元素。
除 了 原 有 的 梁 静 茹 小 姐 , 集 团 也 欢 迎 2009年
1月最新出炉的“Akademi Fantasia 6冠军”Ms. Stracie
Angie Anam, 或 为 人 所 熟 知 的 Stacy作 为
最新的品牌代言人。她们两人分别亮相在集团的
平面、电视和电台商业广告。
配合业务增长,集团在2008年8月18日,收购一间
建立在霹雳州,Kerian区,巴里文打县,地段7278
,州抵押局土地上的工厂。工厂总建筑面积为1万
6千200平方米,有关249万令吉现金收购价是以内
部融资方式支付。这项收购为扩展集团的个人护
理产品业务作好准备,以迎合日愈增加的产量需
求,以及通过外迁目前设於纸巾制造厂的个人护
理产品部门来整合集团的营运架构。
奖誉和表扬
在财政年度期间,集团的纸巾产品通过了世界最
高 环 境 评 估 等 级 标 准 之 一 纽 西 兰 环 保 选 择 的 产
品认证 (“ECNZ”)。集团的子公司Nibong Tebal Paper
Mill Sdn. Bhd. (“NTPM”) 是大马首家获ECNZ鉴定的公
司。ECNZ环保标记是帮助消费者寻找有助减轻环
境污染的产品。通过减低产品在生产、配销、使
用和废弃过程中对环境所造成的负面冲击,它有
助 改 善 环 境 的 素 质 。 这 项 计 划 的 管 理 单 位 是 New
Zealand Ecolabelling Trust。
在惠及现有及潜在股东的投资方面,NTHB再次地
被列入2009年版的“OSK Top Malaysian Cap Companies”
(The 50 Jewels) 手册。今年的这项成就尤其显著,
因为出版商OSK Holdings Berhad (“OSK”) 在最新一期
的手册里把入榜的公司数量从先前的100家缩减至
50家。OSK是以“最佳组合”的公司作为遴选评估
标准,这些入榜的公司皆有能力从经济风暴中脱
颖而出。根据 OSK对“50 Jewels”的研究显示,NTHB
在股息回酬率及‘股权回报’方面排在前四的位置。
集 团 的 子 公 司 NTPM是 大 马 首 家 获纽 西 兰 环 保 选 择(“ECNZ”)鉴 定 的 公 司 。
执行董事营运回顾
NTPM HOLDINGS BERHAD (384662-U) 9
未来的挑战与对策
鉴於目前全球经济波动不定,NTHB将借着其市场
和营销的优势,专注于由纸巾和个人护理领域,
即卫生棉和婴儿尿布组成的核心业务。
在接下来的财政年,集团将推出对环境友善的文
具产品 系列,分别有信封、纸张和文
件夹,并将在日后继续投注于研发纸张生产。此
文具产品延伸自集团的纸巾系列,使用原料来自
NTPM既有的纸巾制造厂。
集团的婴儿尿布销售业绩也极受鼓舞,按年取得
45%增 长 率 。 集 团 也 斥 资 购 买 一 部 高 科 技 的 婴 儿
尿 布 制 造 机 。 此 机 在 2009年 7月 抵 达 后 将 有 助 集
团 降 低 直 接 生 产 成 本 和 对 原 厂 制 造 商 (“OEM”) 的
依赖。
在提升集团过去的业绩表现方面,董事会必将全
力 以 赴 。 与 此 同 时 , 董 事 会 也 紧 记 企 业 责 任 是
NTHB重要核心价值的一部份,以及保护环境是集
团优先关注的信念。职是之故,NTHB将继续在生
产过程中精益求精,确保既有和日後推出的产品
尽量达到最低的碳足迹排放标准。
日期:2009年7月28日
执行董事营运回顾 ( 继 续 )
NTHB 将 继 续 在 生 产过 程 中 精 益 求 精 ,确 保 既 有 和 日 後 推 出的 产 品 尽 量 达 到 最 低 的碳 足 迹 排 放 标 准 。
NTPM HOLDINGS BERHAD (384662-U)10
DATO’ TEOH BOON BENG@ TEOH ENG KUANNon-Independent Non-Executive Chairman
Dato’ Teoh Boon Beng @ Teoh Eng Kuan, a Malaysian, aged 76, a Justice of Peace, was appointed to the Board of Directors of NTPM Holdings Berhad (“NTHB” or “the Company”) as Non-Independent Non-Executive Chairman on 26 April 2000. He obtained the High School Certificate in 1954. He is a businessman with vast experience and knowledge in various business sectors including rice milling and oil palm. Currently, he operates a family owned rice mill. He was the president of Kedah Chinese Chamber of Commerce and Industries (KCCCI) from 2003 to 2007 and currently he is the advisor of the said organisation. He was also the vice-president of Associated Chinese Chambers of Commerce and Industry Malaysia (ACCCIM) from 2005 to 2007 and currently he is the honorary advisor of the organisation. He sits on the board of several private limited companies.
He is the uncle of Mr. Teoh Teik Toe, a Non-Independent Non-Executive Director of the Company, and father of Mr. Teoh Teik Lin, an alternate director and a substantial shareholder of the Company. He has no conflict of interest with the Group and has never been charged for any offence other than traffic offences, if any. He had attended all four Board of Directors’ Meetings held in the financial year ended 30 April 2009.
LEE SEE JINManaging Director
Mr. Lee See Jin, a Malaysian, aged 70, was appointed to the Board of Directors of NTHB on 20 October 1996. He obtained the Higher School Certificate in 1960. He is the Managing Director of NTHB and a Director of all subsidiaries of NTHB. He is a founder of the Group and has been in the paper industry for more than 30 years. Over these years, he has gained in-depth experience and knowledge of the paper industry in Malaysia.
He is the father of Mr. Lee Chong Choon, an Executive Director and a substantial shareholder of the Company. He has no conflict of interest with the Group and has never been charged for any offence other than traffic offences, if any. He had attended all four Board of Directors’ Meetings held in the financial year ended 30 April 2009.
LEE CHONG CHOONExecutive Director
Mr. Lee Chong Choon, a Malaysian, aged 44, was appointed to the Board of Directors of NTHB on 10 November 1999. He is an Executive Director of NTHB and a Director of all the subsidiaries of NTHB. He holds a Diploma in Civil Engineering from the Singapore Polytechnic. He has extensive experience in process engineering and has provided the NTHB Group with technical manufacturing experience expertise. He was the Financial Controller of Nibong Tebal Paper Mill Sdn Bhd (“NTPM”) from 1995 to 1997 and the Country Sales Manager of NTPM from 1997 to 1999. He has also been instrumental in spearheading the progress of the Group and the development of the Group’s products.
He is the son of Mr. Lee See Jin, the Managing Director and a substantial shareholder of the Company. He has no conflict of interest with the Group and has never been charged for any offence other than traffic offences, if any. He had attended all four Board of Directors’ Meetings held in the financial year ended 30 April 2009.
TEOH TEIK TOENon-Independent Non-Executive Director
Mr. Teoh Teik Toe, a Malaysian, aged 41, was appointed to the Board of Directors of NTHB on 9 July 2004. He is a Non-Independent Non-Executive Director of NTHB. He is also a member of the Audit Committee of the Company.
He is a member of Association of Chartered and Certified Accountants (“ACCA”) and he was awarded ACCA Overall Top 30 in Singapore in year 2008. He is a member of Malaysia Institute of Accountants, Certified Public Accountant in Singapore, Certified General Accountant in Canada and Associate Certified Public Accountant in Australia. He graduated from the University of Southern California, United States of America with a Bachelor of Science in Electrical Engineering (Honours) and later obtained a Master of Science in Computer Engineering from the said University. His first job was a Software Engineer in Hewlett Packard, Singapore. He is currently lecturing in several Universities.
He is a nephew of Dato’ Teoh Boon Beng @ Teoh Eng Kuan, the Non-Independent Non-Executive Chairman and also a substantial shareholder of the Company. He has no conflict of interests with the Group and has never been charged for any offence other than traffic offence, if any. He has attended all four Board of Directors’ Meetings held in the financial year ended 30 April 2009.
BOARD OF DIRECTORS
NTPM HOLDINGS BERHAD (384662-U) 11
LIM HAN NGESenior Independent Non-Executive Director
Mr. Lim Han Nge, a Malaysian, aged 54, was appointed as the Independent Non-Executive Director of NTHB on 29 January 2003 and was subsequently re-designated as Senior Independent Non-Executive Director on 26 June 2003. He is also a member of the Audit Committee of the Company. He graduated from Coventry University, United Kingdom with a Bachelor of Arts (Honours) in Business Law. Thereafter, he qualified as a barrister (Lincoln’s Inn, United Kingdom) in 1978 and was called to the Malaysian Bar in November 1979. He is a practicing advocate & solicitor and is currently a partner in the legal firm of Messrs. Jin-Nge & Co, Alor Setar. He is a Director of several private limited companies and is a legal adviser to several non-government organizations in Kedah.
He has no family relationship with other Directors and/or substantial shareholders of the Company, nor any conflict of interest with the Group and has never been charged for any offence other than traffic offences, if any. He had attended all four Board of Directors’ Meetings held in the financial year ended 30 April 2009.
CHANG KONG FOOIndependent Non-Executive Director
Mr. Chang Kong Foo, a Malaysian, aged 55, was appointed as an Independent Non-Executive Director of NTHB on 19 September 2008. He is also the Chairman of the Audit Committee of the Company.
Mr. Chang graduated with a Bachelor in Management Studies from University of Waikato, New Zealand in 1978. He commenced his career with Audit Office in New Zealand for 2 years, was with the Big Four accounting firms for a year and a manager with an accounting firm in Butterworth for another 2 years.
Mr. Chang set up his Professional Practices in 1982 and received his audit licence in 1983. He is a member of the Malaysian Institute of Accountants, a member of the Malaysian Institute of Taxation, and he is also an authorised tax agent licensed under the Income Tax Act 1967. A liquidator since 1999, Mr. Chang Kong Foo is also a Certified Financial Planner (CFP™) since 2003 and has recently been approved as a Capital Market Services Representative, Securities Commission.
Mr. Chang Kong Foo is the Chief Executive Officer of the Key Focus Group of companies providing a multitude of financial services to clients in the Northern Region. He is the Chairman of CAS International, a network of accounting and consulting firms.
He has no family relationship with other Directors and/or substantial shareholders of the Company, nor any conflict of interest with the Group and has never been charged for any offense other than traffic offenses, if any. He had attended two of the four Board of Directors’ Meetings held during his tenure in office in the financial year ended 30 April 2009.
TEOH TEIK LINAlternate Director to Dato’ Teoh Boon Beng @Teoh Eng Kuan
Mr. Teoh Teik Lin, a Malaysian, aged 49, was appointed as Alternate Director to Dato’ Teoh Boon Beng @ Teoh Eng Kuan who is a Non-Independent Non-Executive Chairman of the Company on 19 September 2008.
He graduated from University of Toronto, Canada with a Bachelor Degree in Commerce and later obtained a Master Degree in International Business Studies from University of South Carolina, USA. He commenced his career with Masonite Corporation, USA as a Product Manager, responsible for the procurement, development and marketing of wood products. He is currently the Managing Director of Cantolli Sdn Bhd, Cantolli Industries Sdn Bhd and Timberly Sdn Bhd which are involved in manufacturing and trading of wood-related and interior decoration material products.
He is the son of Dato’ Teoh Boon Beng @ Teoh Eng Kuan, the Non-Independent Non-Executive Chairman and also a substantial shareholder of the Company. He has no conflict of interest with the Group and has never been charged for any offence other than traffic offences, if any.
BOARD OF DIRECTORS (Cont’d)
NTPM HOLDINGS BERHAD (384662-U)12
GROUP FINANCIAL HIGHLIGHTS
2005RM’000
2006RM’000
2007RM’000
2008RM’000
2009RM’000
Revenue 216,463 237,062 270,730 306,173 358,557
Operating Profit 29,072 28,072 40,291 43,989 60,719
Profit Before Tax 26,609 25,669 38,112 41,618 58,677
Net Profit Attributable to Shareholders of the Company 21,013 20,920 32,190 33,121 46,222
Shareholders' Fund / Net Assets 140,229 141,960 171,441 183,078 203,251
No. of Ordinary Shares Issued ('000) 624,000 624,000 624,000 624,000 1,123,200
Net Assets Per Share (RM) @ 0.12 0.13 0.15 0.16 0.18
Net Tangible Assets 140,348 142,054 171,441 183,078 203,251
Net Tangible Assets Per Share (RM) @ 0.12 0.13 0.15 0.16 0.18
Net Dividends 12,000 14,364 21,119 25,272 29,428
Net Dividends Per Share (sen) 1.92 2.30 3.38 4.05 2.62
Earnings Per Share (sen) @ 1.87 1.86 2.87 2.95 4.12
@ Computed based on enlarged number of ordinary shares in issue after bonus issue exercise which was completed on 7 April 2009
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
0
50,000
100,000
150,000
200,000
250,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
(RM’000)
REVENUE
2005 2006 2007 2008 2009(RM’000)
OPERATING PROFIT
2005 2006 2007 2008 2009(RM’000)
SHAREHOLDERS’ FUND / NET ASSETS
2005 2006 2007 2008 2009
216,
463
237,
062
270,
730
306,
173
29,0
72
28,0
72 40,2
91
43,9
89
60,7
19
140,
229
141,
960
171,
441
183,
078
203,
251
358,
557
NTPM HOLDINGS BERHAD (384662-U) 13
MANUFACTURING
TRADING ANDSERVICES
OVERSEASTRADING
RESEARCH ANDDEVELOPMENT
GROUP STRUCTURE & ACTIVITIES
NTPMNIBONG TEBAL PAPER MILL SDN. BHD. (22772-A)
Manufacturing and trading of paper products such as toilet rolls, tissues, serviette and investment holding
NTPCNIBONG TEBAL PERSONAL CARE SDN. BHD. (228234-U)
Manufacturing and trading of personal care products such as sanitary products
NTPPNIBONG TEBAL PAPER PRODUCTS SDN. BHD. (839591-U)
Undertaking paper product and printing related business and general trading
JIJIA IN SDN. BHD. (161672-A)
Printing of operating manuals, journals and packaging materials
NTENIBONG TEBAL ENTERPRISE SENDIRIAN BHD. (95077-H)
Trading in tissue paper and paper products, and trading in fast moving consumer goods (FMCG)
NTLNIBONG TEBAL LOGISTICS SDN. BHD. (378479-H)
Provision of logistics services, warehousing and trading in FMCG
NTITNIBONG TEBAL IT SDN. BHD. (500077-H)
Provision of information technology support and services
NSPLNTPM (SINGAPORE) PTE. LTD. (198600763K)
Importers and dealers in all kinds of tissue paper, and paper products and trading in FMCG
NTCLNTPM (THAILAND) CO., LTD. (0108454720303)
Importers and dealers in all kinds of tissue paper and paper products, and trading in FMCG
NTTNIBONG TEBAL TECHNOLOGY SDN. BHD. (202143-M)
Undertaking research and development activities on the production technology, biotechnology and recycling of waste materials related to paper industry
NTPM HOLDINGS BERHAD (384662-U)
(NTHB) Investment holding andprovision of management services
Note : FMCG consist of sanitary napkins, baby diapers, adult diapers and cotton products.
NTPM HOLDINGS BERHAD (384662-U)14
NTHB has always taken a caring and compassionate approach to social, environmental and employees’ well-being throughout its organization and this is continuing, and will continue, into the future.
ENVIRONMENTAL RESPONSIBILITY
The Group believes in playing the role of a responsible corporate organization towards environmental conservation and maintaining sustainability. is the Group’s latest response to the growing awareness of the need to reduce the environmental footprint.
consists of a range of environmental friendly stationary products comprising envelopes, papers and files; with future additions as NTHB continues to put indepth research into its environmental friendly production processes. The materials are sourced from recyclable paper or production waste generated from NTHB’s existing tissue manufacturing plant.
Environmental friendly production process
The Group is committed to produce recycled tissue products with at least 50% post consumer content whilst all its virgin fibre products are sourced from plantations or forests licensed under the Forest Stewardship Council (“FSC”). All the chemicals used in the manufacturing processes are biodegradable, chlorine free, without Ethylenediamine Tetraacetic Acid (“EDTA”) or heavy metals content and free from prohibited risk phases. The Group also ensures that there is no PVC content in its recyclable packaging materials.
The Group has consistently observed the principles of 3Rs – Reduce, Reuse & Recycle in its plant wide activities. Some of the activities that the Group has undertaken and continue to improve are as follows:
• seek to enhance its operation efficiency to minimize the effect of its operational processes on the environment;
• reduce energy and water consumption;• find ways to convert waste to useful products;• use waste wood and organic waste to generate
energy;• segregate office and production waste for recycling
activities; and• maintain air-conditioner temperature at 24o Celsius to
optimize electricity consumption.
Energy conservation and water minimization
The principle of energy conservation and reduced consumption has been deployed in the Group’s entire production processes from infrastructure design, stock preparation process, paper machines to the choice of optimizing the lighting and air-conditioner facilities. In financial year 2009, the Group continued to improve its process design by removing unwarranted pulp pumps to improve natural flow of pulping process. New fittings of machinery pipe were resized to reduce friction and smaller horse powered motors were installed to replace the larger motors in order to reduce electricity usage. These improvements amongst other factors have resulted in 3% drop of kW-hr of electricity consumed over one metric tonne of paper produced as compared to the previous financial year.
During the year, the Group upgraded its internal recycling water process by adding additional equipment and improved its Dissolved Air Flotation (“DAF”) and Sedimentation systems. These enhancements have managed to reduce the water consumption from 81 cubic meters to 68 cubic meters over one metric tonne of tissue output for the financial year ended 30 April 2009.
Waste management
The Group has managed with success to convert its production tissue waste to compressed board. The compressed board will be part of the Group’s stationary range and thus the need for public waste treatment facilities will be reduced or eliminated in the near future.
The Group also identifies waste from packaging materials, metal scraps and segregate them at source and implements measures to deal with them separately to ensure effective environment waste management.
NTHB continues totake proactive steps towards the environmental and community welfare
CORPORATE SOCIAL RESPONSIBILITY
NTPM HOLDINGS BERHAD (384662-U) 15
Recognition and certification
As an eco-friendly manufacturer, NTPM was accredited with ISO14001:2004 Environmental Management Systems on 26 May 2008. The Group then raised the bar by becoming the first company in Malaysia to have Environmental Choice New Zealand (“ECNZ”) certification and again further demonstrating the Group’s commitment to take responsibility of it’s manufacturing footprint and to continually improve its performance and manufacturing processes. ECNZ identifies overall environmental preference of the Group’s selected range of sanitary paper products based on stringent criteria relating to legislative compliance, fibre source, conformance of substances, process emissions, waste and energy management.
Environmental Choice, which is endorsed by the New Zealand Government, recognizes the genuine moves made by manufacturers to reduce the environmental impact of their products and provides a credible and independent guide for consumers who intend to purchase products that are environmental friendly. Please visit www.enviro-choice.org.nz for more information on Environmental Choice New Zealand.
EMPLOYEES’ WELL-BEING
NTHB recognizes the value that its employees create for the business and its commitment to training and personal development, together with remuneration policies which are designed to emphasize the importance of retaining staff throughout the Group. During the year, seminars on “Frontline Leadership & Management Skills Training” and “Train the Trainer” were held to mould future leaders within the Group organization and enhance the managerial capability of the Group’s executive staff. Awareness talks such as “3Rs” and “Green Business” were carried out to remind employees of the importance of each individual playing a pro-active role in the environmental conservation for future generation. In year 2008, NTPM, a subsidiary of the Group signed the 6th Memorandum of Collective Agreement with its employees’ representative union. The new conditions among others include a substantial hike in selected allowances and incentives, improvement in annual salary increment, bonuses, medical coverage and setting a new benchmark for its minimum salary scale. NTPM is mindful that the improvements were required to enhance the morale and general well-being of the workers in times of crisis where prices of consumer necessities spike-up and inflation soared.
SOCIAL RESPONSIBILITY
NTHB continues to take proactive steps towards the environmental and community welfare by providing monetary assistance and product samples for worthy causes. This year, in addition to existing charity organizations which NTHB has served, the Group collaborated with Pusat Kebajikan Good Shepherd (“PKGS”), a charitable establishment with presence in Perak, Selangor and Sabah specializing in providing welfare services to mothers and children experiencing difficulties in family life.
The Group continued its “Sembang-Sembang Intim” school campaign for the third year running to educate young female students on puberty, hygiene and menstrual issues. Health Coordinators who are well versed in the related field conducted the sessions in schools nationwide. The campaign for this year reached out to 51,000 female students in 253 schools. Based on the feedback received from the school authorities, the students as well as teachers are appreciative and supportive of the Group’s effort in conducting such educational program.
CORPORATE SOCIAL RESPONSIBILITY (Cont’d)
17NTPM HOLDINGS BERHAD (384662-U)
The Board of Directors (“the Board”) of NTHB fully appreciates the importance of adopting the principles and best practices in corporate governance as set out in the Malaysian Code on Corporate Governance (“the Code”). The Board will maintain a transparent disclosure of the manner and extent that the Company has applied the said principles and best practices.
The Company has applied all the Best Practices relating to the Code with the exception of certain areas highlighted below. The reasons for such departures are specified therein.
Best Practices Reasons
i. Appointment of a nomination committee. •
•
The appointment of new Board members will be a matter for the whole Board to deliberate upon.Based on the current Board size and mix of experience, it has proven that the current Board is effective and thus the need for appointment of Nomination Committee and appraisal of Directors’ performance was not required.
ii. Appointment of a remuneration committee. • The remuneration of the Executive Directors is a matter for the Board to deliberate upon as a whole based on market conditions, responsibilities held and the financial performance of the Group.
DIRECTORS
The Board
The Group acknowledges the vital role played by the Board in the stewardship of the directions and business operations of the Group, and ultimately the enhancement of long-term shareholders’ value. To fulfill this role, the Board is responsible for the overall corporate governance of the Group, including strategic direction, establishing goals for the management and monitoring the achievement ofthese goals.
Board Balance
The Board currently has seven (7) Directors comprising two (2) Executive Directors, two (2) Non-Independent Non-Executive Directors, two (2) Independent Non-Executive Directors and one (1) Alternate Director. The Board has complied with the Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) that at least two (2) directors or 1/3 of the Board, whichever is the higher, are Independent Directors.
The Directors collectively, with their different background and specialization, bring with them a diverse wealth of experience and expertise in areas such as business, finance, legal, engineering, regulatory and operations which is relevant to the Group. A brief profile of each individual Directors are set out on pages 10 to 11 of this annual report.
There is a clear division of roles and responsibilities between the Chairman (non-executive) and the Managing Director (executive capacity) to ensure there is a balance of power and authority. The Chairman holds a non-executive position and is primarily responsible for matters pertaining to the Board and overall conduct of the Group. The Managing Director oversees the business operations of the Group and the implementation of the Board’s decisions and policies.
The Board is satisfied that the Independent Directors represent the interest of public shareholders in the Company. Mr. Lim Han Nge is the Senior Independent Non-Executive Director to whom concerns may be conveyed.
STATEMENT ON CORPORATE GOVERNANCE
18 NTPM HOLDINGS BERHAD (384662-U)
Supply of Information
The agenda and a full set of papers which encompass both qualitative and quantitative information are forwarded to the Directors at least seven (7) days prior to the meeting to ensure that the Directors have sufficient time to study them and be properly prepared for each meeting. Where necessary, the Directors can obtain clarifications, further explanations or information so that deliberations at the meeting are focused and constructive.
All Directors have unrestricted access to any information pertaining to the Group. The Directors also have access to the advice and services of the Company Secretary.
Appointment of Directors and Re-election
In accordance with the Company’s Articles of Association, Directors who are appointed either to fill a casual vacancy or as an addition to the existing Board shall hold office until the conclusion of the next annual general meeting and are subject to re-election by shareholders. The Articles also provide that one-third or the number nearest to one-third of the Board including the Managing Director is subject to re-election at regular intervals and shall retire from office at least once in three years. Directors over seventy years of age are required to submit themselves for re-appointment annually in accordance with section 129(6) of the Companies Act, 1965.
As an integral element of the purpose of appointing new Directors, new appointees are briefed on the Group’s business, competitive and regulatory environment in which it operates and other changes during meetings with Executive Directors.
Directors are also advised on appointment of their legal and other obligations as a director of a listed company. They are also encouraged to attend training courses at the Company’s expense.
Meetings and Attendance
During the financial year ended 30 April 2009, four (4) Board Meetings were held. The following is the record of attendance by the Board members during their tenure in office:-
Director Total Attendance Percentage (%)
Dato’ Teoh Boon Beng @ Teoh Eng Kuan (Alternate Director: Teoh Teik Lin) Lee See Jin Lee Chong Choon Teoh Teik Toe Lim Han Nge Chang Kong FooTan Hock Soon
4/44/44/44/44/42/22/2
100100100100100100
100
Notes :i) Mr. Teoh Teik Lin was appointed as Alternate Director to Dato’ Teoh Boon Beng @ Teoh Eng Kuan on 19 September 2008.ii) In conjuction with the resignation of Mr. Tan Hock Soon as Director and AC Chairman of the Company on 19 September 2008, Mr. Chang Kong Foo was
appointed as Director and AC Chairman on the same day.
Directors’ Training
All Directors including the newly appointed Directors, Mr. Chang Kong Foo and Mr. Teoh Teik Lin have attended the Mandatory Accreditation Programme (“MAP”) as required by Bursa Securities on all directors of listed companies.
The Board is encouraged to attend talks, workshops, conferences and other training programmes so as to keep abreast with the changes on guidelines issued by the relevant authorities as well as the latest developments in the market place which can complement their services to the Group.
All the Directors except for the newly appointed Directors, namely Mr. Chang Kong Foo and Mr. Teoh Teik Lin have attended a seminar with the topic of Auditing Corporate Governance during the financial year ended 30 April 2009.
STATEMENT ON CORPORATE GOVERNANCE (Cont’d)
19NTPM HOLDINGS BERHAD (384662-U)
DIRECTORS’ REMUNERATION
The remuneration package of each Executive Director is structured so as to link rewards to corporate and individual performance.
The Non-Executive Directors’ remuneration comprises fees and allowances. Determination of the said remuneration is balanced with their expected roles and responsibilities including any additional work and contribution required.
A summary of the Directors’ remuneration in the Group payable to Directors of the Company for the financial year ended 30 April 2009 is analysed as follows:
AnnualFees
RM
Salaries &Bonuses
RM
Benefit-inKind
RMAllowance
RMTotal
RM
Executive Directors 80,000 1,903,320 39,100 Nil 2,022,420
Non-Executive Directors 160,000 Nil Nil 8,000 168,000
Number of Directors
Range of Remuneration Executive Non-Executive
Less than RM50,000RM500,001 – RM550,000RM1,450,001 – RM1,500,000
-11
5--
The Board has considered the Best Practice of the Code on disclosure of details of the remuneration of each Director and is of the view that it is inappropriate to disclose the remuneration of individual Directors. However, the above disclosure was made in accordance with the format as prescribed by the Listing Requirements of the Bursa Securities.
SHAREHOLDERS
Dialogue between companies and investors
The Board acknowledges the need for shareholders to be informed of all material business matters affecting the Group. The timely release of financial results on a quarterly basis provides shareholders with an overview of the Group’s performance and operations.
The Executive Directors meet up with and brief financial analysts and representatives from securities firms on an ad hoc basis.
Annual General Meeting (“AGM”)
The AGM represents a principal forum for dialogue with shareholders. Notice of the AGM and annual reports are sent out to shareholders at least 21 days before the date of the meeting. The shareholders are encouraged to raise questions both about the Group’s financial results and operations in general. An Extraordinary General Meeting is held as and when shareholders’ approvals are required on specific matters.
ACCOUNTABILITY AND AUDIT
Financial Reporting
The Board aims to provide and present a balanced and understandable assessment of the Group’s financial performance and prospects at the end of the financial year, primarily through the annual audited financial statements and announcement of quarterly reports to shareholders.
STATEMENT ON CORPORATE GOVERNANCE (Cont’d)
20 NTPM HOLDINGS BERHAD (384662-U)
The Audit Committee (“AC”) assists the Board in ensuring the accuracy, adequacy and completeness of the financial information to be disclosed. The financial reports would be reviewed by the AC prior to tabling them to the Board for approval and subsequent release to the Bursa Securities.
Internal Control
The Board acknowledges its overall responsibility for maintaining a sound system of internal control to safeguard shareholders’ investments and the Group’s assets. An internal audit department has been established to assist the AC to ensure a sound system of internal control and risk management is implemented enterprise-wide. The Statement on Internal Control furnished on page 25 of the annual report provides an overview of the state on internal controls within the Group.
Relationship with External Auditors
The AC maintains an appropriate relationship with the Group’s external auditors. The roles, authority and responsibilities of the AC are presented in the report set out on pages 21 to 24 of this annual report.
During the financial year ended 30 April 2009, the AC held dialogue sessions with the external auditors on 19 September 2008 and 20 March 2009 in compliance with the Best Practices of the Code.
The Group has always maintained a close and transparent relationship with its auditors in seeking professional advice and ensuring compliance with the relevant accounting standards. During the financial year 2009, non-audit fees of RM85,240 were paid to the Group’s external auditors for professional fees paid to them as tax agent.
Internal Audit Function
The Group has an established Internal Audit Department, which assists the AC in the discharge of its duties and responsibilities. Its role is to provide independent and objective reports on the organisation’s management, records, accounting policies and controls to the Board.
The AC reviews and approves the internal audit plan, which was developed based on the key risk areas and major operating units of the Group. Internal audit reports were issued to the AC with regards to any audit finding on the weaknesses in the system and controls of the operation.
The major duties and responsibilities undertaken by the Internal Audit Department include:
• Evaluate billing and credit control process.• Routine audits on inventories and receivables.• Participate in operational controls in risk management.• Test of compliance of controls in risk management.• Coordinate activities in risk management.• Review compliance with established policies and procedures.
The total costs incurred by the Group for maintaining the Internal Audit function for financial year 2009 was approximately RM178,900. Such audits also ensure instituted controls are appropriate, effectively applied and achieve acceptable risk exposures consistent with the Group’s risk management policy.
Compliance with the Best Practices of the Code
Save for the exceptions set out above, the Group is in substantial compliance through the financial year with the Principles and Best Practices of the Code.
STATEMENT ON CORPORATE GOVERNANCE (Cont’d)
21NTPM HOLDINGS BERHAD (384662-U)
AUDIT COMMITTEE
COMPOSITION
The present composition of the AC consists of three members of the Board of Directors, the majority of whom are independent. The members are as follows:-
Chairman Chang Kong Foo (Appointed on 19 September 2008) Independent Non-Executive Director Members Lim Han Nge Senior Independent Non-Executive Director Teoh Teik Toe Non-Independent Non-Executive Director
The Chairman of the AC is a member of the Malaysian Institute of Accountants (“MIA”) in accordance with the Listing Requirements of Bursa Securities.
Note : In conjunction with the resignation of Mr. Tan Hock Soon as Director and AC Chairman of the Company on 19 September 2008, Mr. Chang
Kong Foo was appointed as Director and AC Chairman on the same day.
Terms of Reference
The primary objectives of the AC are to assist the Board of NTHB in discharging its statutory duties and responsibilities relating to accounting and financial reporting practices of the Company and its subsidiaries. In addition, the AC shall:
(a) evaluate the quality of the audits performed by the internal and external auditors;
(b) provide assurance that the financial information presented by management is relevant, reliable and timely;
(c) oversee compliance with laws and regulations and observance of a proper code of conduct; and
(d) determine the quality, adequacy and effectiveness of the Group’s control environment and quality of the audits.
Functions
The duties of the AC are as follows:
• To consider the appointment of the external auditors, the audit fee and any question of resignation or dismissal;
• To discuss with the external auditors before the audit commences the nature and scope of the audit and to ensure co-ordination where more than one audit firm is involved;
• To review with the external auditors their evaluation of the system of internal controls and their audit report;
• To review the quarterly and annual financial statements before submission to the Board, focusing particularly on :
- any changes in accounting policies and practices; - significant adjustments resulting from the audit; - the going concern assumption; and - compliance with accounting standards and legal requirements.
22 NTPM HOLDINGS BERHAD (384662-U)
• to discuss problems and reservations arising from the interim and final audits, and any matter the external auditor may wish to discuss (in the absence of management, where necessary);
• to review the external auditors’ management letter and management’s response;
• to do the following, in relation to the internal audit function:
- review the adequacy of the scope, functions, competency and resources of the internal audit function, and that it has the necessary authority to carry out its work;
- review the internal audit programme and results of the internal audit process and, where necessary, ensure that appropriate actions are taken on the recommendations of the internal audit function;
- review any appraisal or assessment of the performance of members of the internal audit function;- approve any appointment or termination of senior staff members of the internal audit function; and- take cognizance of resignations of internal audit staff members and provide the resigning staff member an opportunity
to submit his reasons for resigning.
Pursuant to the Listing Requirements of Bursa Securities, the Company must establish an internal audit function which is independent of the activities it audits and to ensure its internal audit function reports directly to the AC.
• To consider any related party transactions and conflict of interest situation that may arise within the Company or Group including any transaction, procedure or course of conduct that raises questions of management integrity;
• To report its findings on the financial and management performance, and other material matters to the Board;
• To consider the major findings of internal investigations and management’s response;
• To verify the allocation of employees’ share option scheme (“ESOS”) in compliance with the criteria as stipulated in the by-laws of ESOS of the Company, if any;
• To monitor the foreign currency transactions and determine and review the policies associated to each transaction annually;
• To consider any other functions as may be agreed between the AC and the Board.
Authority
The AC shall, in accordance with a procedure to be determined by the Board and at the expense of the Company,
(a) have explicit authority to investigate any matter within its terms of reference, the resources to do so, and full access to information. All employees shall be directed to co-operate as requested by members of the AC;
(b) have full and unlimited/unrestricted access to all information and documents/resources which are required to perform its duties as well as to the internal and external auditors and senior management of the Company and Group;
(c) obtain independent professional or other advice and to invite outsiders with relevant experience to attend, if necessary;
(d) have direct communication channels with the external auditors and person(s) carrying out the internal audit function or activity;
(e) where the AC is of the view that the matter reported by it to the Board has not been satisfactorily resolved resulting in a breach of the Listing Requirements of Bursa Securities, the AC shall promptly report such matter to Bursa Securities.
AUDIT COMMITTEE (Cont’d)
23NTPM HOLDINGS BERHAD (384662-U)
Meetings
The AC shall hold at least four regular meetings per year, with due notice of issues to be discussed, and shall record its conclusions in discharging its duties and responsibilities. In addition, the Chairman may call for additional meetings at any time at the Chairman’s discretion. The quorum for the AC meeting shall be the majority of members present whom must be independent directors.
Upon the request of the external auditors, the Chairman of the AC shall convene a meeting of the AC to consider any matter the external auditors believe should be brought to the attention of the directors or shareholders.
Notice of AC meetings shall be given to all the AC members unless the AC waives such requirement. The Chairman of the AC shall engage on a continuous basis with senior management, the head of internal audit and the external auditors in order to be kept informed of matters affecting the Company.
Questions arising at any meeting of the AC shall be decided by a majority of votes of the members present, and in the case of equality of votes, the Chairman of the AC shall have a second or casting vote. The Company Secretary shall be the secretary of the AC.
The AC met four times during the financial year ended 30 April 2009. The other Directors who are not AC members, Financial Controller, Internal Auditors, External Auditors and External Advisors, upon invitation of the AC, attended the AC meetings to assist in its deliberations.
The details of attendance at the AC meetings during the financial year ended 30 April 2009:-
Name of AC Members
No. of Meetingsheld in FY2009 during tenure
in office
No. of Meetings attended by
Directors during tenure in office
% ofAttendance
Chang Kong Foo(Appointed w.e.f. 19.09.2008)Lim Han NgeTeoh Teik ToeTan Hock Soon(Resigned w.e.f. 19.09.2008)
2
442
2
442
100
100100100
Activities of the AC during the financial year ended 30 April 2009
During the financial year ended 30 April 2009, the AC carried out the following activities in discharging its functions and duties in accordance with the terms of reference of the AC:
• reviewed the unaudited interim financial results of the Group before recommending to the Board for approval;• reviewed the audited annual financial statements of the Company and the Group before recommending to the Board for
approval;• ensuring compliance to the Listing Requirement of Bursa Securities, applicable accounting standards in Malaysia, provisions
of the Companies Act, 1965 and other legal and regulatory requirements;• reviewed the internal audit plan to ensure key risk areas were covered;• reviewed the reports from the internal auditors to assess the state of the internal control system of the Group and to ensure
that corrective actions were taken by management on audit findings;• reviewed the statement of internal control;• reviewed the related party transactions;• reviewed the foreign currency transactions of the Group;• reviewed the risks’ rating and controls of the updated risk registers prepared by the respective Risk Management Units’
heads;
AUDIT COMMITTEE (Cont’d)
24 NTPM HOLDINGS BERHAD (384662-U)
• reviewed with the External Auditors, their audit planning memorandum, audit approach and reporting requirements prior to the commencement of audit work;
• reviewed with the External Auditors, their audit findings and management letter together with the management response and approved for adoption their recommendations;
• reviewed the re-appointment and audit fees of the external auditors for the ensuing year;• conducted an exit interview with the resigning Internal Auditor to ascertain his reason for resigning; and• approved the appointment of the new Internal Auditors and took cognizance of the appointment of staff members of the
internal audit department.
Reports/Minutes
Minutes of each meeting shall be kept at the registered office and distributed to each member of the AC and also to the other members of the Board. The AC Chairman will report to the Board after each AC meeting.
The minutes of the AC meeting shall be signed by the Chairman of the meeting at which the proceedings were held or by the Chairman of the next succeeding meeting.
Internal Audit Department
The Board has established an Internal Audit Department (“IAD”) to review the adequacy and integrity of its system of internal control on 19 December 2003.
The major role of IAD is to assist the AC in discharging its duties and responsibilities and provide independent and reasonable assurance that the systems of internal controls are adequate and effective. It assists the Group in accomplishing its objective by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
During the financial year 2009, IAD had regularly conducted audits in the areas of risk management, credit control and finished goods inventory. The risk-based audits were carried based on the selected risks which had been identified during the Enterprise Risk Management (“ERM”) assessment through verifying the compliance of the controls in each Risk Management Units (“RMU”).
In addition, IAD also assisted and coordinated in the process of risk management such as coordinating the review of all risks and controls which were previously assessed by a professional firm in September 2003 as well as identifying new risks and controls relevant to the Group’s operations. The risks management reports were then presented to the AC by the relevant RMU heads during the quarterly meeting on a rotational basis.
AUDIT COMMITTEE (Cont’d)
25NTPM HOLDINGS BERHAD (384662-U)
STATEMENT ON INTERNAL CONTROL
The Board is ultimately responsible for the Group’s system of internal control as well as reviewing its adequacy and integrity. Because of the limitations that are inherent in any system of internal control, this system of internal control is designed to manage rather than eliminate the risk of failure to achieve business objectives. Accordingly, internal controls can only provide reasonable but not absolute assurance against material misstatement or loss. The system of internal control covers, inter alia, risk management and financial, organizational, operational and compliance control.
The Board relies largely on the close involvement of the Executive Directors of the Group in the daily operations. There are periodic reviews of operational performance at management meetings.
The Board also recognizes the need for continuous improvement in its system of internal control as an effective system of internal control is necessary to safeguard shareholders’ investments and an important part of managing risks.
The key process of the internal control functions is inculcated within the various procedures and includes the following:
• The Board reviews quarterly reports from management on the key operating performance, legal, environmental and regulatory matters. Financial performance is also deliberated at the Board meetings.
• Executive members of the Board have day-to-day involvement in all aspects of the business and attend weekly and monthly management meetings attended by senior managers to deliberate on business, financial and operating issues which include reviewing and approving all key business strategic measures and policies.
• An enterprise risk management framework has been established and the Risk Management Committee (“RMC”) has been formed to ensure that the risk management structure is embedded and consistently applied in the Group. The RMC will regularly review the principal risks faced by the Group and the status of management actions.
• The Managing Director heads the RMC and the risk register was reviewed and updated in March 2009.
• An Internal Audit function has been established to assist the Audit Committee in discharging their duties and responsibilities.
• The Group has a clear organization structure and well defined lines of responsibility which provide a sound framework of authority and approving limits within the organization and to facilitate quality and timely corporate decisions.
The Board continues to take measures to strengthen the internal control environment.
26 NTPM HOLDINGS BERHAD (384662-U)
UTILISATION OF PROCEEDS
No proceeds were raised by the Company from any corporate exercise or the general mandate pursuant to Section 132D of the Companies Act, 1965 granted by the Shareholders at the last Annual General Meeting of the Company during the financial year.
SHARE BUY-BACK
The details of the Company’s Share Buy-Back and disposal of the treasury shares for the financial year ended 30 April 2009 are as follows:
Monthly Breakdown
No. of Shares
purchased/ Re-sold
PricePer Share
Average Price Per
Share (RM)
Gross Amount
(RM)
Transaction Cost (RM)
Net Amount
(RM)Lowest
(RM)Highest
(RM)
Shares Brought Back
March 9,000 0.55 0.55 0.55 4,950 46 4,996
Shares Re-SoldApril 9,000 0.55 0.55 0.55 4,950 46 4,904
Save for the aforesaid shares purchased by the Company, which were initially held as treasury shares before being re-sold through Bursa Securities, no shares were cancelled during the financial year.
OPTIONS OR CONVERTIBLE SECURITIES
The Company did not issue any options or convertible securities during the financial year.
DEPOSITORY RECEIPT PROGRAMME
During the financial year, the Company did not sponsor any Depository Receipt programme.
IMPOSITION OF SANCTIONS AND PENALTIES
There were no sanctions or penalties imposed on the Company and its subsidiaries, Directors or management by the relevant regulatory bodies during the financial year.
NON-AUDIT FEES
During the financial year 2009, non audit fees of RM85,240 were paid to the Group’s external auditors as professional fees paid to them as tax agent.
VARIATION IN RESULTS
There were no material variations between the audited results and the un-audited results for the financial year ended 30 April 2009.
OTHER INFORMATION REQUIRED BY THELISTING REQUIREMENTS OF BURSA MALAYSIASECURITIES BERHAD
27NTPM HOLDINGS BERHAD (384662-U)
OTHER INFORMATION REQUIRED BY THELISTING REQUIREMENTS OF BURSA MALAYSIA
SECURITIES BERHAD (Cont’d)
PROFIT ESTIMATES, FORECAST AND PROJECTION
The Company did not issue any profit estimate, forecast or projection for the financial year ended 30 April 2009.
PROFIT GUARANTEEE
During the financial year, there was no profit guarantee given by the Company.
MATERIAL CONTRACTS INVOLVING DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTERESTS
There were no material contracts entered into by the Group involving Directors’ and Substantial Shareholders’ interests during thefinancial year.
REVALUATION POLICY ON LANDED PROPERTIES
Landed properties are stated at revalued amount, which is the fair value at the date of the revaluation less any accumulated impairment losses. Fair value is determined from market-based evidence by appraisal that is undertaken by professionally qualified valuers. Revaluations are performed with sufficient regularity to ensure that the fair value of a revalued asset does not differ materially from that which would be determined using fair values at the balance sheet date.
28 NTPM HOLDINGS BERHAD (384662-U)
The Board is required by the Companies Act, 1965 to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group as at the end of the financial year and of the results and cash flows of the Group for the financial year.
The Board is satisfied that in preparing the financial statements of the Group for the financial year ended 30 April 2009, the Group has used the appropriate accounting policies and consistently applied and supported by reasonable prudent judgment and estimates and that measures have been taken to ensure that accounting records are properly kept in accordance with the law.
STATEMENT OF THE DIRECTORS’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS
29NTPM HOLDINGS BERHAD (384662-U)
FINANCIAL STATEMENTS Directors’ report 30-33
Statement by directors 34
Statutory declaration 34
Independent Auditors’ Report 35-36
Income statements 37
Balance sheets 38
Statements of changes in equity 39-40
Cash flow statements 41-42
Notes to the financial statements 43-88
30 NTPM HOLDINGS BERHAD (384662-U)
DIRECTORS’ REPORT
The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Company for the financial year ended 30 April 2009.
PRINCIPAL ACTIVITIES
The principal activities of the Company are investment holding and provision of management services.
The principal activities of the subsidiaries are described in Note 13 to the financial statements.
There have been no significant changes in the nature of the principal activities during the financial year.
RESULTS
GroupRM
CompanyRM
Profit for the year
Attributable to:Equity holders of the Company Minority interests
46,305,334
46,222,54182,793
46,305,334
140,073,149
140,073,149-
140,073,149 There were no material transfers to or from reserves or provisions during the financial year, other than as disclosed in the financial statements.
In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature.
DIVIDENDS
The amount of dividends paid by the Company since 30 April 2008 were as follows:
RM
In respect of the financial year ended 30 April 2008 as reported in the directors’ report of that year:
Interim tax-exempt dividend of 19.5% declared on 624,000,000 ordinary shares of RM0.10 each on 21 March 2008 and paid on 8 May 2008
Single tier final dividend of 21% declared on 624,000,000 ordinary shares of RM0.10 each on 11 September 2008 and paid on 10 October 2008
In respect of the financial year ended 30 April 2009:
Single tier interim dividend of 11.7% declared on 1,123,200,000 ordinary shares of RM0.10 each on 20 March 2009 and paid on 22 April 2009
12,168,000
13,104,000
13,141,440
At the forthcoming Annual General Meeting, a single tier final dividend of 14.5% amounting to RM16,286,400 in respect of the financial year ended 30 April 2009, on 1,123,200,000 ordinary shares of RM0.10 each (1.45 sen per share) will be proposed for shareholders’ approval. The financial statements for the current financial year do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in shareholders’ equity as an appropriation of retained profits in the financial year ending 30 April 2010.
31NTPM HOLDINGS BERHAD (384662-U)
DIRECTORS’ REPORT (Cont’d)
DIRECTORS
The names of the directors of the Company in office since the date of the last report and at the date of this report are:
Dato’ Teoh Boon Beng @ Teoh Eng KuanLee See JinLee Chong ChoonTeoh Teik Toe* Lim Han Nge* Tan Hock Soon* (resigned on 19 September 2008) Chang Kong Foo* (appointed on 19 September 2008)Teoh Teik Lin (alternate Director to Dato’ Teoh Boon Beng @ Teoh Eng Kuan, appointed on 19 September 2008) * Being members of Audit Committee.
DIRECTORS’ BENEFITS
Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Company was a party, whereby the directors might acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.
Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefits included in the aggregate amount of emoluments received or due and receivable by the directors as shown in Note 6 to the financial statements or the fixed salary of a full-time employee of the Company or its related corporations) by reason of a contract made by the Company or a related corporation with any director or with a firm of which he is a member, or with a company in which he has a substantial financial interest, except as disclosed in Note 30 to the financial statements.
DIRECTORS’ INTERESTS
According to the register of directors’ shareholdings, the interests of directors in office at the end of the financial year in shares in the Company during the financial year were as follows:
<------------------ Number of ordinary shares of RM0.10 each ------------------>
1 May 2008/19 September
2008 BoughtBonusIssue Sold 30 April 2009
THE COMPANY
DirectDato’ Teoh Boon Beng @ Teoh Eng KuanLee See JinLee Chong ChoonTeoh Teik ToeTeoh Teik Lin
10,409,500182,534,194
72,915,6654,128,000
37,159,599
--
455,000--
8,327,600146,027,355
58,696,5323,302,400
29,727,679
-----
18,737,100328,561,549132,067,197
7,430,40066,887,278
32 NTPM HOLDINGS BERHAD (384662-U)
DIRECTORS’ INTERESTS (Cont’d.)
<------------------ Number of ordinary shares of RM0.10 each ------------------>
1 May 2008/19 September
2008 BoughtBonusIssue Sold 30 April 2009
Indirect
Interest of Spouse/Children of the Directors*Dato’ Teoh Boon Beng @ Teoh Eng KuanLee See JinChang Kong Foo
Deemed interest of a Director**Dato’ Teoh Boon Beng @ Teoh Eng Kuan
64,459,60776,447,990
-
30,991,068
-455,000100,000
4,000,000
51,567,68661,522,392
80,000
27,992,854
---
-
116,027,293138,425,382
180,000
62,983,922
* Disclosure pursuant to Section 134 (12) (c) of the Companies Act 1965 as amended by the Companies (Amendment) Act 2007 which took effect on 15 August 2007.
** Deemed interested by virtue of his shareholdings in Kota Beras Sendirian Berhad and Teoh Peng Heong & Sons Sdn. Bhd., pursuant to Section 6A of the Companies Act, 1965.
Dato’ Teoh Boon Beng @ Teoh Eng Kuan and Lee See Jin, by virtue of their interests in shares in the Company, are also deemed interested in shares of all the Company’s subsidiaries to the extent the Company has an interest.
The other directors in office at the end of the financial year did not have any interest in shares in the Company or its related corporations during the financial year.
ISSUE OF SHARES
During the financial year, the Company increased its issued and paid-up ordinary share capital from RM62,400,000 to RM112,320,000 by way of capitalisation of the bonus issue of 499,200,000 new ordinary shares of RM0.10 each on the basis of four new shares for every five existing shares held in the Company.
The new ordinary shares issued during the financial year ranked pari passu in all respects with the existing ordinary shares ofthe Company.
TREASURY SHARES
During the financial year, the Company had repurchased a total of 9,000 ordinary shares of RM0.10 each of its issued share capital from the open market for a total consideration (inclusive of commission, stamp duty and other charges) of RM4,996 at an average cost of RM0.56 per share. The repurchase transactions were financed by internally generated funds. The repurchased shares are held as treasury shares in accordance with the requirements of Section 67A of the Companies Act, 1965. The Company had subsequently re-issued the 9,000 treasury shares by re-sale in the open market for a total net sales proceeds (net of commission, stamp duty and other charges) of RM4,904. The average net re-sale price of the treasury shares was RM0.54 per share.
DIRECTORS’ REPORT (Cont’d)
33NTPM HOLDINGS BERHAD (384662-U)
OTHER STATUTORY INFORMATION
(a) Before the income statements and balance sheets of the Group and of the Company were made out, the directors took reasonable steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate provision had been made for doubtful debts in the financial statements of the Group. The directors also satisfied themselves that there were no known bad debts and that no provision for doubtful debts was necessary in the financial statements of the Company; and
(ii) to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected so to realise.
(b) At the date of this report, the directors are not aware of any circumstances which would render:
(i) the amount written off for bad debts or the amount of the provision for doubtful debts in the financial statements of the Group inadequate to any substantial extent nor are they aware of any circumstances which would render it necessary to write off any bad debts or the amount of the provision for doubtful debts inadequate to any substantial extent in respect of the financial statements of the Company; and
(ii) the values attributed to the current assets in the financial statements of the Group and of the Company misleading.
(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.
(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Group and of the Company which would render any amount stated in the financial statements misleading.
(e) As at the date of this report, there does not exist:
(i) any charge on the assets of the Group or of the Company which has arisen since the end of the financial year which secures the liabilities of any other person; or
(ii) any contingent liability of the Group or of the Company which has arisen since the end of the financial year.
(f) In the opinion of the directors:
(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Group or of the Company to meet their obligations when they fall due; and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of the operations of the Group or of the Company for the financial year in which this report is made.
AUDITORS
The Auditors, Ernst & Young, have expressed their willingness to continue in office.
Signed on behalf of the Board in accordance with a resolution of the directors dated 28 July 2009.
Lee See Jin Lee Chong Choon
Penang, Malaysia
DIRECTORS’ REPORT (Cont’d)
34 NTPM HOLDINGS BERHAD (384662-U)
We, Lee See Jin and Lee Chong Choon, being two of the directors of NTPM Holdings Berhad, do hereby state that, in the opinion of the directors, the accompanying financial statements set out on pages 37 to 88 are drawn up in accordance with the provisions of the Companies Act, 1965 and applicable Financial Reporting Standards in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 30 April 2009 and of the results and the cash flows of the Group and of the Company for the year then ended.
Signed on behalf of the Board in accordance with a resolution of the directors dated 28 July 2009.
Lee See Jin Lee Chong Choon
Penang, Malaysia
STATEMENT BY DIRECTORS PURSUANT TO SECTION 169(15) OF THECOMPANIES ACT, 1965
STATUTORY DECLARATIONPURSUANT TO SECTION 169(16) OFTHE COMPANIES ACT, 1965
I, David Khoo Chong Beng, being the officer primarily responsible for the financial management of NTPM Holdings Berhad, do solemnly and sincerely declare that the accompanying financial statements set out on pages 37 to 88 are in my opinion correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960. Subscribed and solemnly declared by the abovenamed David Khoo Chong Beng at Georgetown in the State of Penang on 28 July 2009 : David Khoo Chong Beng
Before me,
Commissioner for Oaths
35NTPM HOLDINGS BERHAD (384662-U)
Report on the financial statements
We have audited the financial statements of NTPM Holdings Berhad., which comprise the balance sheets as at 30 April 2009 of the Group and of the Company, and the income statements, statements of changes in equity and cash flow statements for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 37 to 88.
Directors’ responsibility for the financial statements
The directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordance with Financial Reporting Standards and the Companies Act 1965 in Malaysia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and the Companies Act 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 30 April 2009 and of their financial performance and cash flows for the year then ended.
Report on other legal and regulatory requirements
In accordance with the requirements of the Companies Act 1965 in Malaysia, we also report the following:
(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries for which we have acted as auditors have been properly kept in accordance with the provisions of the Act.
(b) We have considered the financial statements and the auditors’ reports of all the subsidiaries of which we have not acted as auditors, which are indicated in Note 13 to the financial statements, being financial statements that have been included in the consolidated financial statements.
(c) We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of the Company are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations required by us for those purposes.
(d) The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification and did not include any comment required to be made under Section 174(3) of the Act.
INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF NTPM HOLDINGS BERHAD
36 NTPM HOLDINGS BERHAD (384662-U)
INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF NTPM HOLDINGS BERHAD (Cont’d)
Other matters
This report is made solely to 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. We do not assume responsibility to any other person for the content of this report.
Ernst & Young Leong Chooi MayAF: 0039 No. 1231/03/11(J)Chartered Accountants Chartered Accountant
Penang, MalaysiaDate: 28 July 2009
37NTPM HOLDINGS BERHAD (384662-U)
Group Company
Note 2009RM
2008RM
(Restated)
2009RM
2008RM
RevenueOther operating incomeAdvertising and promotional expensesChanges in inventories of finished goods and work-in-progressDepreciationImpairment loss on investment in subsidiaryManagement feesPurchase of trading inventoriesRaw materials and consumables usedRepairs and maintenanceEmployee benefits expenseSundry wagesTransportation and freight chargesUtilities costsOther operating expenses
Operating profit Finance costs
Profit before tax Income tax expense
Profit for the year
Attributable to:Equity holders of the CompanyMinority interests
Earnings per share attributable to equity holders of the Company (sen):
Basic, for profit for the year*
34
5
7
8
9
10
358,556,509 1,125,590
(7,044,512)
757,534(18,612,263)
--
(17,225,880)(130,243,277)
(11,669,822)(54,625,102)
(2,336,661)(20,959,152)(23,280,334)(13,723,654)
60,718,976(2,041,701)
58,677,275(12,371,941)
46,305,334
46,222,54182,793
46,305,334
4.12
306,172,568761,710
(5,869,436)
3,352,939(17,713,963)
--
(14,799,178)(118,877,187)
(9,358,154)(48,855,899)
(1,926,953)(18,792,815)(19,718,105)(10,386,401)
43,989,126(2,371,217)
41,617,909(8,455,350)
33,162,559
33,120,89841,661
33,162,559
2.95
146,539,693 1,510
-
-(84,240)
-(78,214)
--
(165,167)(5,050,698)
(40)-
(34,088)(772,921)
140,355,835-
140,355,835(282,686)
140,073,149
140,073,149-
140,073,149
54,405,868--
-(82,512)
(1,500,000)(108,342)
--
(171,930)(4,603,915)
(80)-
(24,490)(752,718)
47,161,881-
47,161,881(9,501,665)
37,660,216
37,660,216-
37,660,216
* Earnings per share in the previous year have been adjusted retrospectively based on the enlarged number of ordinary shares in issue after the bonus issue exercise which was completed on 7 April 2009.
INCOME STATEMENTSFOR THE YEAR ENDED 30 APRIL 2009
The accompanying notes form an integral part of the financial statements.
38 NTPM HOLDINGS BERHAD (384662-U)
Group Company
Note 2009RM
2008RM
(Restated)
2009RM
2008RM
ASSETS
Non-current assetsProperty, plant and equipmentPrepaid land lease paymentsInvestments in subsidiariesOther investmentsDeferred tax assets
Current assetsInventoriesTrade and other receivablesTax recoverableCash and bank balances
Total assets
EQUITY AND LIABILITIES
Equity attributable to equity holders of the Company
Share capitalOther reservesRetained earnings/(Accumulated losses)
Minority interests
Total equity
Non-current liabilitiesBorrowings Deferred tax liabilitiesRetirement benefit obligations
Current liabilitiesBorrowings Retirement benefit obligationsDividend payableTrade and other payablesTax payable
Total liabilities
TOTAL EQUITY AND LIABILITIES
1112131415
1617
18
192022
231524
2324
25
181,008,9391,308,642
--
290,786
182,608,367
52,721,33664,774,993
573,37012,950,355
131,020,054
313,628,421
112,320,00021,547,79369,382,764
203,250,557679,543
203,930,100
8,415,76417,298,949
804,672
26,519,385
36,385,05845,529
-44,250,414
2,497,935
83,178,936
109,698,321
313,628,421
176,061,806842,682
--
336,970
177,241,458
48,204,72052,824,124
732,40112,569,353
114,330,598
291,572,056
62,400,00021,352,11499,325,756
183,077,870596,750
183,674,620
12,411,65815,094,069
714,221
28,219,948
27,689,39227,016
12,168,00038,672,548
1,120,532
79,677,488
107,897,436
291,572,056
520,653-
12,693,793-
7,511
13,221,957
-123,881,746
292,22548,741
124,222,712
137,444,669
112,320,000-
21,251,297
133,571,297-
133,571,297
---
-
---
3,873,372-
3,873,372
3,873,372
137,444,669
550,999-
11,693,793-
19,620
12,264,412
-22,252,229
378,53526,536
22,657,300
34,921,712
62,400,000-
(42,656,319)
19,743,681-
19,743,681
---
--
-12,168,000
3,010,031-
15,178,031
15,178,031
34,921,712
The accompanying notes form an integral part of the financial statements.
BALANCE SHEETS AS AT 30 APRIL 2009
39NTPM HOLDINGS BERHAD (384662-U)
STATEMENTS OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 APRIL 2009
Attributable to equity holders <---------------- of the Company ---------------->
Note
Sharecapital
RM
Non-Distributable
Other reserves(Note 20)
RM
DistributableRetainedearnings(Note 22)
RM
Total
RM
Minority interests
RM
Totalequity
RM
GROUP At 1 May 2007 As previously stated Effects of adopting FRS 112
At 1 May 2007 (restated) Foreign currency translation,
representing net income recognised directly in equity
Profit for the yearTotal recognised income and
expenses for the year
Dividends
At 30 April 2008 (restated)
At 1 May 2008As previously statedEffects of adopting FRS 112
At 1 May 2008 (restated)Foreign currency translation,
representing net income recognised directly in equity
Loss from reissue oftreasury shares (Note 21)
Profit for the yearTotal recognised income and
expenses for the year
Bonus issue
Dividends
At 30 April 2009
26
26
62,400,000-
62,400,000
--
-
-
62,400,000
62,400,000-
62,400,000
-
--
-
49,920,000
-
112,320,000
21,272,854-
21,272,854
79,260-
79,260
-
21,352,114
21,352,114-
21,352,114
195,679
--
195,679
-
-
21,547,793
87,767,7962,676,342
90,444,138
-33,120,898
33,120,898
(24,239,280)
99,325,756
97,636,8631,688,893
99,325,756
-
(93)46,222,541
46,222,448
(49,920,000)
(26,245,440)
69,382,764
171,440,6502,676,342
174,116,992
79,26033,120,898
33,200,158
(24,239,280)
183,077,870
181,388,9771,688,893
183,077,870
195,679
(93)46,222,541
46,418,127
-
(26,245,440)
203,250,557
555,089-
555,089
-41,661
41,661
-
596,750
596,750-
596,750
-
-82,793
82,793
-
-
679,543
171,995,7392,676,342
174,672,081
79,26033,162,559
33,241,819
(24,239,280)
183,674,620
181,985,7271,688,893
183,674,620
195,679
(93)46,305,334
46,500,920
-
(26,245,440)
203,930,100
40 NTPM HOLDINGS BERHAD (384662-U)
STATEMENTS OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 APRIL 2009 (Cont’d)
Note
Sharecapital
RM
(Accumulated losses)/
Retained earnings
RM
Total
RM
COMPANY
At 1 May 2007Profit for the year, representing total recognised income and expenses for the year Dividends
At 30 April 2008
At 1 May 2008 Profit for the year, representing total recognised income and expenses for the year Capitalisation for bonus issueLoss from reissue of treasury shares (Note 21)Dividends
At 30 April 2009
26
26
62,400,000
--
62,400,000
62,400,000
-49,920,000
--
112,320,000
(56,077,255)
37,660,216(24,239,280)
(42,656,319)
(42,656,319)
140,073,149(49,920,000)
(93)(26,245,440)
21,251,297
6,322,745
37,660,216(24,239,280)
19,743,681
19,743,681
140,073,149-
(93)(26,245,440)
133,571,297
The accompanying notes form an integral part of the financial statements.
41NTPM HOLDINGS BERHAD (384662-U)
CASH FLOW STATEMENTSFOR THE YEAR ENDED 30 APRIL 2009
Group Company
2009RM
2008RM
2009RM
2008RM
Cash flows from operating activitiesProfit before tax Adjustments for:
Amortisation of prepaid land lease payments Bad debts written offDepreciationDividend incomeEffect of exchange rate changesGain on disposal of plant and equipmentImpairment loss on investment in subsidiaryImpairment loss on unquoted investment Interest expenseInterest income Plant and equipment written offProvision for doubtful debtsProvision for retirement benefitsInventories written down to net realisable valueReversal of provision for doubtful debts Short term accumulating compensated absencesUnrealised foreign exchange loss
Operating profit before working capital changes(Increase)/decrease in receivablesIncrease in inventoriesIncrease/(decrease) in payablesDecrease in retirement benefit obligations
Cash generated from/(used in) operationsInterest paid Tax paidTax refund
Net cash generated from/(used in) operating activities
Cash flows from investing activitiesPurchase of property, plant and equipment (Note A)Investment in a subsidiaryInterest receivedProceeds from disposal of property,
plant and equipmentPrepayment of land lease Dividends receivedNet change in related companies balances
Net cash (used in)/generated from investing activities
58,677,275
24,923237,082
18,612,263-
143,799(55,324)
--
2,041,701(98,615)196,339103,584198,707
2,094,507(180,000)
30,189(57,602)
81,968,828(12,019,495)
(6,611,123)5,537,461
(89,743)
68,785,928(2,041,701)(8,610,442)
26,000
58,159,785
(23,856,991)-
98,615
166,958(490,883)
--
(24,082,301)
41,617,909
19,020415,579
17,713,963-
35,161(171,631)
-45,000
2,371,217(62,693)
398,78829,811
149,774-
(1,071,113)54,050
(107,821)
61,437,014649,734
(7,311,387)5,133,954
(74,733)
59,834,582(2,371,217)(7,925,987)
-
49,537,378
(17,812,362)-
62,693
324,766---
(17,424,903)
140,355,835
--
84,240 (139,735,782)
-----
(1,510)-------
702,783(453,208)
-(16,195)
-
233,380-
(184,267)-
49,113
(53,894)(1,000,000)
1,510
--
123,435,782(83,996,773)
38,386,625
47,161,881
--
82,512(48,089,955)
--
1,500,000----------
654,438(1,347,848)
-568,929
-
(124,481)-
(208,830)-
(333,311)
(95,480)--
--
38,800,000(17,253,070)
21,451,450
42 NTPM HOLDINGS BERHAD (384662-U)
Group Company
2009RM
2008RM
2009RM
2008RM
Cash flows from financing activitiesDividends paidNet change in bank borrowingsRepayment of term loansShares repurchase
Shares reissue
Net cash used in financing activities
Net (decrease)/increase in cash andcash equivalents
Cash and cash equivalents as at 1 May
Cash and cash equivalents as at 30 April (Note B)
(38,413,440)9,168,000
(4,450,949)(4,997)
4,904
(33,696,482)
381,00212,569,353
12,950,355
(21,119,280)(5,990,000)(5,099,803)
-
-
(32,209,083)
(96,608)12,665,961
12,569,353
(38,413,440)--
(4,997)
4,904
(38,413,533)
22,20526,536
48,741
(21,119,280)---
-
(21,119,280)
(1,141)27,677
26,536
A. Purchase of property, plant and equipment
During the financial year, the Group and the Company acquired property, plant and equipment with an aggregate cost of RM23,856,991 (2008: RM17,812,362) and RM53,894 (2008: RM95,480) respectively by the following means:
Group Company
2009RM
2008RM
2009RM
2008RM
Cash paymentsOther payables
23,321,798535,193
23,856,991
17,812,362-
17,812,362
53,894-
53,894
95,480-
95,480
B. Cash and cash equivalents comprise:
Group Company
2009RM
2008RM
2009RM
2008RM
Cash on hand and at banksDeposits with licensed banks: Short term placements
12,672,255
278,100
12,950,355
9,889,353
2,680,000
12,569,353
48,741
-
48,741
26,536
-
26,536
CASH FLOW STATEMENTSFOR THE YEAR ENDED 30 APRIL 2009 (Cont’d)
43NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009
1. CORPORATE INFORMATION
The Company is a public limited liability company, incorporated and domiciled in Malaysia, and listed on the Main Board of Bursa Malaysia Securities Berhad. The principal place of business of the Company is located at 886, Jalan Bandar Baru, Sungai Kecil, 14300 Nibong Tebal, Seberang Perai Selatan, Pulau Pinang.
The principal activities of the Company are investment holding and provision of management services.
The principal activities of the subsidiaries are described in Note 13.
There have been no significant changes in the nature of the principal activities during the financial year.
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 28 July 2009.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation
The financial statements comply with the provisions of the Companies Act, 1965 and applicable Financial Reporting Standards in Malaysia. At the beginning of the current financial year, the Group and the Company had adopted new and revised FRSs which are disclosed in Note 2.3.
The financial statements of the Group and of the Company have also been prepared on a historical basis, unless otherwise stated in the accounting policies below.
The financial statements are presented in Ringgit Malaysia (RM). 2.2 Summary of significant accounting policies
(a) Subsidiaries and basis of consolidation
i. Subsidiaries
Subsidiaries are entities over which the Group has the ability to control the financial and operating policies so as to obtain benefits from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group has such power over another entity.
In the Company’s separate financial statements, investments in subsidiaries are stated at cost less impairment losses. On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is included in the income statement.
ii. Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the balance sheet date. The financial statements of the subsidiaries are prepared for the same reporting date as the Company.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. In preparing the consolidated financial statements, intragroup balances, transactions and unrealised gains or losses are eliminated in full. Uniform accounting policies are adopted in the consolidated financial statements for like transactions and events in similar circumstances.
44 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
2. Significant accounting policies (cont’d.)
2.2 Summary of significant accounting policies (cont’d.)
(a) Subsidiaries and basis of consolidation (cont’d.)
ii. Basis of consolidation (cont’d.)
Acquisitions of subsidiaries are accounted for using the purchase method. The purchase method of accounting involves allocating the cost of the acquisition to the fair value of the assets acquired and liabilities and contingent liabilities assumed at the date of acquisition. The cost of an acquisition is measured as the aggregate of the fair values, at the date of exchange, of the assets given, liabilities incurred or assumed, and equity instruments issued, plus any costs directly attributable to the acquisition.
Any excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities represents goodwill. Any excess of the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition is recognised immediately in the income statement.
Minority interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group. It is measured at the minorities’ share of the fair value of the subsidiaries’ identifiable assets and liabilities at the acquisition date and the minorities’ share of changes in the subsidiaries’ equity since then.
(b) Goodwill
Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities. Following the initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is not amortised but instead, it is reviewed for impairment, annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
(c) Property, plant and equipment and depreciation
All items of property, plant and equipment are initially recorded at cost. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.
Subsequent to recognition, property, plant and equipment except for freehold land are stated at cost less accumulated depreciation and any accumulated impairment losses.
Freehold land is stated at revalued amount, which is the fair value at the date of the revaluation less any accumulated impairment losses. Fair value is determined from market-based evidence by appraisal that is undertaken by professionally qualified valuers. Revaluations are performed with sufficient regularity to ensure that the fair value of a revalued asset does not differ materially from that which would be determined using fair values at the balance sheet date. Any revaluation surplus is credited to the revaluation reserve included within equity, except to the extent that it reverses a revaluation decrease for the same asset previously recognised in profit or loss, in which case the increase is recognised in profit or loss to the extent of the decrease previously recognised. A revaluation deficit is first offset against unutilised previously recognised revaluation surplus in respect of the same asset and the balance is thereafter recognised in profit or loss. Upon disposal or retirement of an asset, any revaluation reserve relating to the particular asset is transferred directly to
retained earnings.
45NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
2. Significant accounting policies (cont’d.)
2.2 Summary of significant accounting policies (cont’d.)
(c) Property, plant and equipment and depreciation (cont’d.)
Freehold land has an unlimited useful life and therefore is not depreciated. Capital work-in-progress are also not depreciated as these assets are not available for use.
Depreciation of other property, plant and equipment is provided on a straight-line basis to write off the cost or valuation of each asset to its residual value over its estimated useful life, at the following annual rates:
Buildings 2% - 5% Plant and machinery and electrical installations 10% Motor vehicles 10% Furniture, fittings, renovation, air conditioners, office equipment and computer 5% - 33.33%
The residual values, useful life and depreciation method are reviewed at each financial year end to ensure that the amount, method and period of depreciation are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the items of property, plant and equipment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. The difference between the net disposal proceeds, if any and the net carrying amount is recognised in profit or loss and the unutilised portion of the revaluation surplus on that item is taken directly to retained earnings.
(d) Impairment of non-financial assets
The carrying amounts of assets, other than inventories and deferred tax assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated to determine the amount of impairment loss.
For the purpose of impairment testing of these assets, recoverable amount is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. If this is the case, recoverable amount is determined for the cash-generating unit (CGU) to which the asset belongs to.
An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses recognised in respect of a CGU or groups of CGUs are allocated to reduce the carrying amount of the other assets in the unit or groups of units on a pro-rata basis.
An impairment loss is recognised in profit or loss in the year in which it arises, unless the asset is carried at a revalued amount, in which case the impairment loss is accounted for as a revaluation decrease to the extent that the impairment loss does not exceed the amount held in the asset revaluation reserve for the same asset.
An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss for an asset is recognised in profit or loss, unless the asset is carried at revalued amount, in which case, such reversal is treated as a revaluation increase.
46 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
2. Significant accounting policies (cont’d.)
2.2 Summary of significant accounting policies (cont’d.)
(e) Inventories
Inventories are stated at the lower of cost and net realisable value.
Cost is determined using the first in, first out method. The cost of raw materials comprises costs of purchase. The costs of finished goods and work-in-progress comprise raw materials, direct labour, other direct costs and appropriate proportions of manufacturing overheads based on normal operating capacity. The cost of trading goods comprises cost of purchase
of inventories.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs to completion and estimated costs necessary to make the sale.
(f) Financial instruments
Financial instruments are recognised in the balance sheet when the Group has become a party to the contractual provisions of the instrument.
Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. Interest, dividends and gains and losses relating to a financial instrument classified as a liability, are reported as expense or income. Distributions to holders of financial instruments classified as equity are recognised directly in equity. Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.
i. Cash and cash equivalents
For the purposes of the cash flow statements, cash and cash equivalents include cash on hand and at banks, deposit at call and short term highly liquid investments which have an insignificant risk of changes in value, net of outstanding bank overdrafts.
ii. Other non-current investments
Non-current investments other than investments in subsidiaries are stated at cost less impairment losses. On disposal of an investment, the difference between the net disposal proceeds and its carrying amount is recognised in the income statement.
iii. Receivables
Receivables are carried at anticipated realisable values. Bad debts are written off when identified. An estimate is made for doubtful debts based on a review of all outstanding amounts as at the balance sheet date.
iv. Payables
Payables are stated at the fair value of the consideration to be paid in the future for goods and services received.
v. Interest bearing loans and borrowings
All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.
47NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
2. Significant accounting policies (cont’d.)
2.2 Summary of significant accounting policies (cont’d.) (f) Financial instruments (cont’d.)
vi. Equity instruments
Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in which they are declared.
The transaction costs of an equity transaction are accounted for as a deduction from equity, net of tax. Equity transaction costs comprise only those incremental external costs directly attributable to the equity transaction which would otherwise have been avoided.
vii. Derivative financial instruments
Derivative financial instruments are not recognised in the financial statements.
(g) Lease
i. Classification
A lease is recognised as a finance lease if it transfers substantially to the Group all the risks and rewards incident to ownership. Leases of land and buildings are classified as operating and finance leases in the same way as leases of other assets and the land and buildings elements of a lease of land and buildings are considered separately for the purposes of lease classification. All leases that do not transfer substantially all the risks and rewards are classified as operating leases.
ii. Finance leases - the Group as lessee
Assets acquired by way of hire purchase or finance leases are stated at an amount equal to the lower of their fair values and the present value of the minimum lease or hire purchase payments at the inception of the hire purchase or leases, less accumulated depreciation and impairment losses. The corresponding liability is included in the balance sheet as borrowings. In calculating the present value of the minimum hire purchase or lease payments, the discount factor used is the interest rate implicit in the hire purchase or lease, when it is practicable to determine; otherwise, the Group’s incremental borrowing rate is used. Any initial direct costs are also added to the carrying amount of such assets.
Hire purchase or lease payments are apportioned between the finance costs and the reduction of the outstanding liability. Finance costs, which represent the difference between the total hire purchase or leasing commitments and the fair value of the assets acquired, are recognised in the income statement over the term of the relevant hire purchase or lease so as to produce a constant periodic rate of charge on the remaining balance of the obligations for each accounting period.
Depreciation of hire purchase or leased assets is provided for on a straight-line basis to write off the cost of each asset to its residual value over its estimated useful life.
48 NTPM HOLDINGS BERHAD (384662-U)
2. Significant accounting policies (cont’d.)
2.2 Summary of significant accounting policies (cont’d.)
(g) Lease (cont’d.)
iii. Operating leases - the Group as lessee
Operating lease payments are recognised as an expense on a straight-line basis over the term of the relevant lease. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense over the lease term on a straight-line basis.
In the case of a lease of land and buildings, the minimum lease payments or the up-front payments made are allocated, whenever necessary, between the land and the buildings elements in proportion to the relative fair values for leasehold interests in the land element and buildings element of the lease at the inception of the lease. The up-front payment represents prepaid lease payments and are amortised on a straight-line basis over the lease term of 46 years to 60 years.
(h) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
(i) Income tax
Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the year and is measured using the tax rates that have been enacted at the balance sheet date.
Deferred tax is provided for, using the liability method. In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. Deferred tax is not recognised if the temporary difference arises from goodwill or negative goodwill or from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.
Deferred tax is measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is recognised as income or an expense and included in the profit or loss for the year, except when it arises from a transaction which is recognised directly in equity, in which case the deferred tax is also recognised directly in equity, or when it arises from a business combination that is an acquisition, in which case the deferred tax is included in the resulting goodwill or the amount of any excess of the acquirer’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities over the cost of the combination.
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
49NTPM HOLDINGS BERHAD (384662-U)
2. Significant accounting policies (cont’d.)
2.2 Summary of significant accounting policies (cont’d.)
(j) Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as finance cost.
(k) Employee benefits
i. Short term benefits
Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees of the Group. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensated absences. Short term non-accumulating compensated absences such as sick leave are recognised when the absences occur.
ii. Defined contribution plans
Defined contribution plans are post-employment benefit plans under which the Company pays fixed contributions into separate entities or funds and will have no legal or constructive obligation to pay further contributions if any of the funds do not hold sufficient assets to pay all employee benefits relating to employee services in the current and preceding financial years. Such contributions are recognised as an expense in the income statement as incurred. As required by law, companies in Malaysia make contributions to the Employees Provident Fund (“EPF”). Some of the Group’s foreign subsidiaries also make contributions to their respective countries’ statutory pension scheme.
iii. Defined benefit plans
A subsidiary operates an unfunded defined benefit plan for its eligible employees, as provided under the agreement between the subsidiary and the Paper And Paper Products Manufacturing Employees Union.
The Group’s obligation under the plan, calculated using the Projected Unit Credit Method, is determined based on actuarial computations by independent actuaries, through which the amount of benefit that employees have earned in return for their services in the current and prior years is estimated. That benefit is discounted in order to determine its present value. Actuarial gains and losses are recognised as income or expense over the expected average remaining working lives of the participating employees when the cumulative unrecognised actuarial gains or losses for the plan exceed 10% of the higher of the present value of the defined benefit obligation and the fair value of plan assets. Past service costs are recognised immediately to the extent that the benefits are already vested, and otherwise are amortised on a straight-line basis over the average period until the amended benefits
become vested.
The amount recognised in the balance sheet represents the present value of the defined benefit obligations adjusted for unrecognised actuarial gains and losses and unrecognised past service cost, and reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the net total of any unrecognised actuarial losses and past service cost, and the present value of any economic benefits in the form of refunds or reductions in future contributions to the plan.
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
50 NTPM HOLDINGS BERHAD (384662-U)
2. Significant accounting policies (cont’d.)
2.2 Summary of significant accounting policies (cont’d.)
(l) Foreign currencies
i. Functional and presentation currency
The individual financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in Ringgit Malaysia (RM), which is also the Company’s functional currency.
ii. Foreign currency transactions
In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional currency (foreign currencies) are recorded in the functional currencies using the exchange rates prevailing at the dates of the transactions. At each balance sheet date, monetary items denominated in foreign currencies are translated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not translated.
Exchange differences arising on the settlement of monetary items, and on the translation of monetary items, are included in income statement for the year.
Exchange differences arising on the translation of non-monetary items carried at fair value are included in the income statement for the period except for the differences arising on the translation of non-monetary items in respect of which gains and losses are recognised directly in equity. Exchange differences arising from such non-monetary items are also recognised directly in equity.
iii. Foreign operations
The results and financial position of foreign operations that have a functional currency different from the presentation currency (RM) of the consolidated financial statements are translated into RM as follows:
- Assets and liabilities for each balance sheet presented are translated at the closing rate prevailing at the balance sheet date;
- Income and expenses for each income statement are translated at average exchange rates for the year, which approximates the exchange rates at the dates of the transactions; and
- All resulting exchange differences are taken to the foreign currency translation reserve within equity.
Goodwill and fair value adjustments arising on the acquisition of foreign operations on or after 1 May 2006 are treated as assets and liabilities of the foreign operations and are recorded in the functional currency of the foreign operations and translated at the closing rate at the balance sheet date. Goodwill and fair value adjustments which arose on the acquisition of foreign subsidiaries before 1 May 2006 are deemed to be assets and liabilities of the parent company and are recorded in RM at the rates prevailing at the date of acquisition.
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
51NTPM HOLDINGS BERHAD (384662-U)
2. Significant accounting policies (cont’d.)
2.2 Summary of significant accounting policies (cont’d.)
(m) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised.
i. Sale of goods Revenue is recognised net of sales taxes and upon transfers of significant risks and rewards of ownership to the
buyer. Revenue is not recognised to the extent where there are significant uncertainties regarding recovery of the consideration due, associated costs or the possible return of goods.
ii. Dividend income Dividend income is recognised when the Group’s right to receive payment is established.
iii. Interest income Interest income is recognised on an accrual basis using the effective interest method.
iv. Rental income Rental income is recognised on an accrual basis.
v. Revenue from services
Revenue from services rendered is recognised net of discounts as and when the services are performed.
vi. Management fees
Management fees are recognised when services are rendered.
2.3 Changes in accounting policies and effects arising from adoption of new and revised FRSs On 1 May 2008, the Group and the Company adopted the following revised FRSs, Amendment to FRS and Interpretations:
FRS 107: Cash Flow Statements FRS 111: Construction Contracts FRS 112: Income Taxes FRS 118: Revenue FRS 120: Accounting for Government Grants and Disclosure of Government Assistance FRS 134: Interim Financial Reporting FRS 137: Provisions, Contingent Liabilities and Contingent Assets Amendment to FRS 121: The Effects of Changes in Foreign Exchange Rates – Net Investment in a Foreign Operation IC Interpretation 1: Changes in Existing Decommissioning, Restoration and Similar Liabilities IC Interpretation 2: Members’ Shares in Co-operative Entities and Similar Instruments IC Interpretation 5: Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds IC Interpretation 6: Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment IC Interpretation 7: Applying the Restatement Approach under FRS 129 Financial Reporting in Hyperinflationary Economies IC Interpretation 8: Scope of FRS 2
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
52 NTPM HOLDINGS BERHAD (384662-U)
2. Significant accounting policies (cont’d.)
2.3 Changes in accounting policies and effects arising from adoption of new and revised FRSs (cont’d.)
The adoption of the revised FRSs, Amendment to FRS and Interpretations do not have any significant impact on the financial statements of the Company. The adoption of the revised FRSs, Amendment to FRS and Interpretations do not have any significant impact on the financial statements of the Group except for the adoption of FRS 112: Income Taxes, as discussed below.
(a) FRS 112: Income taxes
Prior to 1 May 2008, the Group did not recognise deferred tax assets on unabsorbed reinvestment allowances in accordance with paragraph 36 of FRS 1122004 Income Taxes. Under the revised FRS 112: Income Taxes, the Group will have to recognise deferred tax assets on such unabsorbed reinvestment allowances to the extent that it is probable that future taxable profit will be available against which they can be utilised.
The Group has applied the revised FRS 112 retrospectively and as set out below, certain comparatives have been restated. The effects are set out below:
i. Effects on income statements for the year ended 30 April 2009.
Description of ChangeIncrease/(Decrease)
RM
Group
Income tax expenseProfit for the yearEarnings per share: Basic, for profit for the year
1,688,893(1,688,893)
(0.16)
ii. There were no effects on the Group’s balance sheet as at 30 April 2009.
iii. Effects on balance sheet as at 30 April 2008 and income statements for the year ended 30 April 2008.
The following comparatives have also been restated.
Description of change
Previously stated
RM
Increase/(Decrease)
FRS112 RM
Restated
RM
GROUPBalance sheetDeferred tax liabilities
Statements of changes in equity At 1 May 2007At 30 April 2008
Income statement Income tax expenseProfit for the yearEarnings per share:
Basic, for profit for the year
16,782,962
171,995,739181,985,727
(7,467,901)34,150,008
3.04
(1,688,893)
2,676,3421,688,893
(987,449)(987,449)
(0.09)
15,094,069
174,672,081183,674,620
(8,455,350)33,162,559
2.95
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
53NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
2. Significant accounting policies (cont’d.)
2.4 Standards and interpretations issued but not yet effective
At the date of authorisation of these financial statements, the following new FRSs and Interpretations were issued but not yet effective and have not been applied by the Group and the Company:
FRSs, Amendments to FRSs and InterpretationsEffective for financial periods
beginning on or after
FRS 4: Insurance ContractsFRS 7: Financial Instruments: DisclosuresFRS 8: Operating SegmentsFRS 139: Financial Instruments: Recognition and MeasurementAmendment to FRS 1: First-time Adoption of Financial Reporting Standards and FRS 127
Consolidated and Separate Financial Statements: Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate
Amendment to FRS 2 Share-based Payment : Vesting Conditions and CancellationsIC Interpretation 9: Reassessment of Embedded DerivativesIC Interpretation 10: Interim Financial Reporting and ImpairmentIC Interpretation 11: FRS 2 – Group Treasury Share TransactionsIC Interpretation 13: Customer Loyalty ProgrammesIC Interpretation 14: FRS 119 - The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction
1 January 20101 January 2010
1 July 20091 January 2010
1 January 20101 January 20101 January 20101 January 20101 January 20101 January 2010
1 January 2010
The Group and the Company are exempted from disclosing the possible impact, if any, to the financial statements upon the initial application of FRS 7 and FRS 139.
The new FRSs and Interpretations above are expected to have no significant impact on the financial statements of the Group upon their initial application except for the changes in disclosures arising from the adoption of FRS 8.
2.5 Significant accounting estimates and judgements
(a) Critical judgements made in applying accounting policies
There are no critical judgements made by the management in the process of applying the Group’s accounting policies that has significant effect on the amounts recognised in the financial statements.
(b) Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
i. Deferred tax assets
Deferred tax assets are recognised for all unused tax losses and unabsorbed capital allowances to the extent that it is probable that taxable profit will be available against which the losses and capital allowances can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. The total carrying value of unrecognised tax losses and capital allowances of the Group was RM833,464 (2008: RM344,280).
54 NTPM HOLDINGS BERHAD (384662-U)
2. Significant accounting policies (cont’d.)
2.5 Significant accounting estimates and judgements (cont’d.)
(b) Key sources of estimation uncertainty (cont’d.)
ii. Impairment of investment in subsidiaries
In previous year, the Company has recognised impairment losses in respect of investments in subsidiaries. The Company carried out the impairment test based on the estimation of the higher of the value-in-use or the fair value less cost to sell of the cash-generating units (“CGU”) to which the investments in subsidiaries belong to. Estimating the recoverable amount requires the Company to make an estimate of the expected future cash flows from the CGU and also to determine a suitable discount rate in order to calculate the present value of those cash flows. The carrying amount of investments in one of the subsidiaries of the Company as at 30 April 2009 for which impairment loss had been recognised was RM910,052. Further details of the impairment losses recognised are disclosed
in Note 13. iii. Depreciation of plant and equipment
The cost of paper making machinery is depreciated on a straight-line basis over the asset’s useful life. Management estimates the useful lives of these plant and machinery to be within 10 years. These are common life expectancies applied in the industry. Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could
be revised.
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
55NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
3. REVENUE
Revenue consists of the following:
Group Company
2009RM
2008RM
2009RM
2008RM
Sales of paper products such as toilet rolls, tissues,serviette; cotton products; diapers; sanitary products
Management feeDividend income from subsidiaries
358,556,509--
358,556,509
306,172,568--
306,172,568
-6,803,911
139,735,782
146,539,693
-6,315,913
48,089,955
54,405,868
4. OTHER OPERATING INCOME
Included in other operating income are:
Group Company
2009RM
2008RM
2009RM
2008RM
Sundry incomeInterest income
988,62798,615
654,270 62,693
-1,510
--
5. EMPLOYEE BENEFITS EXPENSE
Group Company
2009RM
2008RM
2009RM
2008RM
Wages and salariesExecutive directors’ remuneration (Note 6)Social security contributionsShort term accumulating compensated absencesContribution to defined contribution planIncrease in liability for defined benefit plan (Note 24)Other benefits
41,382,7153,587,525
572,163950,910
4,585,933198,707
3,347,149
54,625,102
36,956,6213,279,724
516,559859,327
4,063,589149,774
3,030,305
48,855,899
1,745,0152,898,930
19,6612,181
237,160-
147,751
5,050,698
1,640,0402,580,412
17,474(3,259)
195,616-
173,632
4,603,915
Included in employee benefits expense of the Group and of the Company are remuneration of the Company’s executive directors amounting to RM2,022,420 (2008: RM1,768,264) and RM2,011,320 (2008: RM1,757,164) respectively as further disclosed in Note 6.
56 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
6. DIRECTORS’ REMUNERATION
Group Company
2009RM
2008RM
2009RM
2008RM
Directors of the CompanyExecutive directors’ remuneration
FeesOther emolumentsBenefits-in-kind
Non-executive directors’ remuneration:FeesOther emoluments
Other DirectorsExecutive directors’ remuneration:
FeesOther emolumentsBenefits-in-kind
Non-executive directors’ remuneration :Fees
Total directors’ remuneration: Executive directors’ remuneration (Note 5)Non-executive directors’ remuneration (Note 7)
Estimated money value of benefits-in-kind
Total directors’ remuneration including benefits-in-kind
80,0001,903,320
39,100
2,022,420
160,0008,000
168,000
87,3121,516,893
11,100
1,615,305
22,992
3,587,525190,992
3,778,517
50,200
3,828,717
80,0001,649,164
39,100
1,768,264
160,0008,000
168,000
127,0921,423,468
11,100
1,561,660
32,224
3,279,724200,224
3,479,948
50,200
3,530,148
80,0001,903,320
28,000
2,011,320
160,0008,000
168,000
-915,610
-
915,610
-
2,898,930168,000
3,066,930
28,000
3,094,930
80,0001,649,164
28,000
1,757,164
160,0008,000
168,000
-851,248
-
851,248
-
2,580,412168,000
2,748,412
28,000
2,776,412
57NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
6. DIRECTORS’ REMUNERATION (Cont’d.)
The details of remuneration receivable by directors during the year are as follows:
Group Company
2009RM
2008RM
2009RM
2008RM
Executive:Salaries and other emoluments FeesBonus- Current year provision- Under provision in prior yearBenefits-in-kind
Non-executive (Note 7):FeeAllowance
Total
2,174,114167,312
1,236,5089,591
50,200
3,637,725
182,9928,000
190,992
3,828,717
2,039,293207,092
1,001,99431,34550,200
3,329,924
192,2248,000
200,224
3,530,148
1,582,38180,000
1,226,9589,591
28,000
2,926,930
160,0008,000
168,000
3,094,930
1,476,10380,000
992,96431,34528,000
2,608,412
160,0008,000
168,000
2,776,412
The number of directors of the Company whose total remuneration during the year fall within the following bands is analysed as follows:
Number of Directors
2009RM
2008RM
Executive directors:
RM500,001 - RM550,000RM1,200,001 - RM1,250,000RM1,450,001 - RM1,500,000
Non-Executive directors:
Below RM50,000
1-1
5
11-
4
58 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
7. OTHER OPERATING EXPENSES
Other operating expenses are stated:-
Group Company
2009RM
2008RM
2009RM
2008RM
After charging/(crediting):
Auditors’ remuneration - statutory audit - current year - (over)/under provision in prior years - other servicesAmortisation of prepaid land lease payments Bad debts written offImpairment loss on unquoted investmentNon-executive directors’ remuneration (Note 6)Inventories written down to net realisable value Gain on disposal of property, plant and equipmentPlant and equipment written offNet foreign exchange (gains)/lossesProvision for doubtful debtsReversal of provision for doubtful debts Rental expense
178,090 (7,550)85,24024,923
237,082-
190,9922,094,507
(55,324)196,339
(437,351)103,584
(180,000)704,789
191,28434,77080,77019,020
415,57945,000
200,224-
(171,631)398,788194,086
29,811 (1,071,113)
624,994
36,7503,150
15,690---
168,000---
(12,913)--
57,200
33,6008,400
26,405---
168,000---
(17,897)--
60,000
8. FINANCE COSTS
Group Company
2009RM
2008RM
2009RM
2008RM
Interest expense on:Bank borrowings 2,041,701 2,371,217 - -
59NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
9. INCOME TAX EXPENSE
Group Company
2009RM
2008RM
(restated)
2009RM
2008RM
Income tax:Malaysian income taxForeign tax
Overprovided in prior years:Malaysian income tax
Deferred tax (Note 15):
Relating to origination and reversal of temporary differences
Relating to changes in income tax rateUnder/(Over) provided in prior years
9,554,518585,989
10,140,507
(19,192)
10,121,315
2,209,319-
41,307
2,250,626
12,371,941
7,250,080196,132
7,446,212
(26,806)
7,419,406
1,639,498(589,847)
(13,707)
1,035,944
8,455,350
284,877-
284,877
(14,300)
270,577
12,109--
12,109
282,686
9,490,272
-
9,490,272
(4,395)
9,485,877
15,003785
-
15,788
9,501,665
Current income tax is calculated at the statutory tax rate of 25% (2008: 26%) of the estimated assessable profit for the year. In the prior year, certain subsidiaries of the Company being a Malaysian resident company with a paid-up capital of RM2.5 million or less qualified for the preferential tax rates under Paragraph 2A, Schedule 1 of the Income Tax Act, 1967 as follows:
On the first RM500,000 of chargeable income : 20% In excess of RM500,000 of chargeable income : 25%
However, pursuant to Paragraph 2B, Schedule 1 of the Income Tax Act, 1967 that was introduced with effect from the year of assessment 2009, certain subsidiaries of the Company no longer qualify for the above preferential tax rates.
The Malaysian corporate statutory tax rate has been reduced to 25% with effect from the year of assessment 2009. The computation of deferred tax as at 30 April 2009 has reflected these changes.
A reconciliation of income tax expense applicable to profit before tax at the statutory income tax rate to income tax expense at the effective income tax rate of the Group and of the Company is as follows:
GROUP
2009RM
2008RM
(restated)
Profit before tax
Taxation at Malaysian statutory tax rate of 25% (2008: 26%)Tax savings of 6% for first RM500,000 of chargeable income for Year of Assessment 2008Effect of different tax rates in other countriesEffect of expenses not deductible for tax purposesEffect of utilisation of previously unrecognised tax losses, unutilised reinvestment allowance and unabsorbed capital allowances
58,677,275
14,669,319
-(305,727)366,938
(91,495)
41,617,909
10,820,656
(72,796)(107,718)347,018
(403,055)
60 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
9. INCOME TAX EXPENSE (Cont’d.)
GROUP
2009RM
2008RM
(restated)
Income not subject to taxDeferred tax assets not recognised during the yearDeferred tax recognised at different tax rateReinvestment allowance claimed during the yearOverprovision of income tax in prior yearsUnder/(Over) provision of deferred tax in prior years
Tax expense for the year
(61,328)171,703
-(2,399,584)
(19,192)41,307
12,371,941
(80,974)21,396
(589,848)(1,438,816)
(26,806)(13,707)
8,455,350
COMPANY
2009RM
2008RM
(restated)
Profit before tax
Taxation at Malaysian statutory tax rate of 25% (2008: 26%)Effect of expenses not deductible for tax purposesDeferred tax recognised at different tax rateIncome not subject to taxOverprovision of income tax in prior years
Tax expense for the year
140,355,835
35,088,959141,974
-(34,933,947)
(14,300)
282,686
47,161,881
12,262,089627,853
785(3,384,667)
(4,395)
9,501,665
Tax savings during the financial year arising from:
Group Company
2009RM
2008RM
2009RM
2008RM
Utilisation of previously unrecognised tax losses 66,280 111,085 - -
10. Earnings per share
Basic
Basic earnings per share is calculated by dividing the profit for the year attributable to ordinary equity holders of the Company by the number of ordinary shares in issue during the financial year.
2009RM
2008RM
(restated)
Profit attributable to ordinary equity holders of the CompanyNumber of ordinary shares in issue
Basic earnings per share (sen)
46,222,5411,123,200,000
4.12
33,120,8981,123,200,000
2.95
• Earnings per share in the previous year have been adjusted retrospectively based on the enlarged number of ordinary shares in issue after the bonus issue exercise which was completed on 7 April 2009.
Diluted earnings per share is not computed as no dilution of earnings per share is expected.
61NTPM HOLDINGS BERHAD (384662-U)
11. PROPERTY, PLANT AND EQUIPMENT
GROUP
* Landand
buildingsRM
Capitalwork-in-progress
RM
Plant andmachinery
andelectrical
installations RM
Motorvehicles
RM
Furniture, fittings,
renovation,air
conditioners,computers and office
equipmentRM
TotalRM
At 30 April 2009
Cost/Valuation
At 1 May 2008 At cost At valuation
AdditionsDisposals/Write offsReclassificationTranslation difference
At 30 April 2009
Representing:At costAt valuation
At 30 April 2009
Accumulated depreciation
At 1 May 2008Depreciation charge for the yearDisposals/write offsTranslation difference
At 30 April 2009
Net carrying amount
At costAt valuation
At 30 April 2009
4,468,75672,338,998
76,807,7542,009,287
-2,602,111
-
81,419,152
9,080,15472,338,998
81,419,152
978,594
1,045,700--
2,024,294
8,862,18670,532,672
79,394,858
7,795,571-
7,795,57118,203,512
(70,960)(17,619,555)
-
8,308,568
8,308,568-
8,308,568
-
---
-
8,308,568-
8,308,568
223,193,041-
223,193,041500,717(76,150)
15,014,81742
238,632,467
238,632,467-
238,632,467
139,053,290
16,001,909(28,387)
38
155,026,850
83,605,617-
83,605,617
19,838,122-
19,838,1222,737,647
(528,067)-
51,014
22,098,716
22,098,716-
22,098,716
12,961,951
1,164,579(341,462)
43,085
13,828,153
8,270,563-
8,270,563
7,932,447-
7,932,447405,828(18,518)
2,6279,115
8,331,499
8,331,499-
8,331,499
6,511,294
400,075(15,873)
6,670
6,902,166
1,429,333-
1,429,333
263,227,93772,338,998
335,566,93523,856,991
(693,695)-
60,171
358,790,402
286,451,40472,338,998
358,790,402
159,505,129
18,612,263(385,722)
49,793
177,781,463
110,476,26770,532,672
181,008,939
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
62 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
11. PROPERTY, PLANT AND EQUIPMENT (Cont’d.)
GROUP
* Landand
buildingsRM
Capitalwork-in-progress
RM
Plant andmachinery
andelectrical
installations RM
Motorvehicles
RM
Furniture, fittings,
renovation,air
conditioners,computers and office
equipmentRM
TotalRM
At 30 April 2008
Cost/Valuation
At 1 May 2007 At cost At valuation
AdditionsDisposals/Write offsReclassificationTranslation difference
At 30 April 2008
Representing:At costAt valuation
At 30 April 2008
Accumulated depreciation
At 1 May 2007Depreciation charge for the yearDisposals/write offsTranslation difference
At 30 April 2008
Net carrying amount
At costAt valuation
At 30 April 2008
-72,338,998
72,338,99871,303
-4,397,453
-
76,807,754
4,468,75672,338,998
76,807,754
-
978,594--
978,594
4,393,32571,435,835
75,829,160
6,512,341-
6,512,34112,004,937
(37,854)(10,683,853)
-
7,795,571
7,795,571-
7,795,571
-
---
-
7,795,571-
7,795,571
213,985,259-
213,985,2593,593,965
(618,642)6,232,427
32
223,193,041
223,193,041-
223,193,041
124,080,799
15,233,362(260,900)
29
139,053,290
84,139,751-
84,139,751
18,799,831-
18,799,8311,875,085
(869,479)-
32,685
19,838,122
19,838,122-
19,838,122
12,629,599
1,021,697(718,864)
29,519
12,961,951
6,876,171-
6,876,171
7,634,750-
7,634,750267,072(29,995)53,973
6,647
7,932,447
7,932,447-
7,932,447
6,050,502
480,310(24,284)
4,766
6,511,294
1,421,153-
1,421,153
246,932,18172,338,998
319,271,17917,812,362(1,555,970)
-39,364
335,566,935
263,227,93772,338,998
335,566,935
142,760,900
17,713,963(1,004,048)
34,314
159,505,129
104,625,97171,435,835
176,061,806
63NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
11. PROPERTY, PLANT AND EQUIPMENT (Cont’d.)
* Land and buildings
GROUP
FreeholdlandRM
Buildings
RMTotal
RM
At 30 April 2009
Cost/Valuation
At 1 May 2008 At cost At valuation
AdditionsReclassification
At 30 April 2009
Representing:At costAt valuation
Accumulated depreciation
At 1 May 2008Depreciation charge for the year
At 30 April 2009
Net carrying amount
At costAt valuation
At 30 April 2009
77,78738,700,000
38,777,787-
476,437
39,254,224
554,22438,700,000
39,254,224
-
-
-
554,22438,700,000
39,254,224
4,390,96933,638,998
38,029,9672,009,2872,125,674
42,164,928
8,525,93033,638,998
42,164,928
978,594
1,045,700
2,024,294
8,307,96231,832,672
40,140,634
4,468,75672,338,998
76,807,7542,009,2872,602,111
81,419,152
9,080,15472,338,998
81,419,152
978,594
1,045,700
2,024,294
8,862,18670,532,672
79,394,858
64 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
11. PROPERTY, PLANT AND EQUIPMENT (Cont’d.)
* Land and buildings (Cont’d.)
GROUP
FreeholdlandRM
Buildings
RMTotal
RM
At 30 April 2008
Cost/Valuation
At 1 May 2007 At cost At valuation
AdditionsReclassification
At 30 April 2008
Representing:At costAt valuation
Accumulated depreciation
At 1 May 2007Depreciation charge for the year
At 30 April 2008
Net carrying amount
At costAt valuation
At 30 April 2008
-38,700,000
38,700,00071,303
6,484
38,777,787
77,78738,700,000
38,777,787
-
-
-
77,78738,700,000
38,777,787
-33,638,998
33,638,998-
4,390,969
38,029,967
4,390,96933,638,998
38,029,967
-
978,594
978,594
4,315,53832,735,835
37,051,373
-72,338,998
72,338,99871,303
4,397,453
76,807,754
4,468,75672,338,998
76,807,754
-
978,594
978,594
4,393,32571,435,835
75,829,160
65NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
11. PROPERTY, PLANT AND EQUIPMENT (Cont’d.)
COMPANY
Motorvehicles
RM
Furniture, fittings,
renovation,air
conditioners,computers and office
equipmentRM
TotalRM
At 30 April 2009
Cost
At 1 May 2008Additions
At 30 April 2009
Accumulated depreciation
At 1 May 2008Depreciation charge for the year
At 30 April 2009
Net carrying amount
At 30 April 2009
At 30 April 2008
Cost
At 1 May 2007Additions
At 30 April 2008
Accumulated depreciation
At 1 May 2007Depreciation charge for the year
At 30 April 2008
Net carrying amount
At 30 April 2008
804,666-
804,666
270,50073,048
343,548
461,118
717,98786,679
804,666
197,45273,048
270,500
534,166
50,74753,894
104,641
33,91411,192
45,106
59,535
41,9468,801
50,747
24,4509,464
33,914
16,833
855,41353,894
909,307
304,41484,240
388,654
520,653
759,93395,480
855,413
221,90282,512
304,414
550,999
66 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
11. PROPERTY, PLANT AND EQUIPMENT (Cont’d.)
The details of the latest valuation of land and buildings of the Group performed on 30 April 2007 by professional valuers are as follows:
Date of Valuation Description of Property Valuation Amount RM Basis of Valuation
30 April 2007
30 April 2007
30 April 2007
30 April 2007
30 April 2007
Freehold industrial land and buildingat Seberang Perai Selatan, Penang
Freehold agricultural landat Seberang Perai Selatan, Penang
Freehold industrial land and buildingat Senai, Johor Bahru
Freehold industrial land and buildingat Shah Alam, Selangor
Industrial building at Parit Buntar,Perak
56,658,998
2,930,000
1,600,000
9,640,000
1,510,000
72,338,998
Comparison method
Comparison method
Comparison method
Comparison method
Comparison method
(a) Had the revalued properties been carried under the cost model, the carrying amounts of each class of property, plant and equipment that would have been included in the financial statements of the Group as at 30 April 2009 would be as follows:
Group
2009RM
2008RM
Freehold landBuildings
14,015,23722,334,393
36,349,630
14,015,23723,053,059
37,068,296
(b) Included in property, plant and equipment of the Group are fully depreciated assets which are still in use costing RM95,974,828 (2008: RM81,330,632).
(c) The net carrying amount of temporarily idle assets of the Group amounted to RM7,973,434 (2008: RM7,984,055).
(d) Included in property, plant and equipment of the Group are motor vehicles with net carrying amount of RM21,680 (2008: RM26,430) which are held in trust by third parties.
67NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
12. PREPAID LAND LEASE PAYMENTS
Group
2009RM
2008RM
At 1 May AdditionsAmortisation for the year
At 30 April
Analysed as:Long term leasehold landShort term leasehold land
842,682 490,883 (24,923)
1,308,642
535,296
773,346
1,308,642
861,702-
(19,020)
842,682
545,917296,765
842,682
13. INVESTMENTS IN SUBSIDIARIES
Company
2009RM
2008RM
Unquoted shares, at costAccumulated impairment loss
14,193,793(1,500,000)
12,693,793
13,193,793(1,500,000)
11,693,793
Details of the subsidiaries are as follows:
Name of subsidiariesEquity interest held
Principal activitiesCountry of
incorporation2009 % 2008%
Nibong Tebal EnterpriseSendirian Berhad Nibong Tebal PaperMill Sdn. Bhd.
Nibong Tebal Personal Care Sdn. Bhd.
Nibong Tebal Logistics Sdn. Bhd.
Nibong Tebal IT Sdn. Bhd.
Nibong Tebal Technology Sdn. Bhd.
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Trading in paper, cotton, diapers and sanitary products
Manufacturing and trading of paper products such as toilet rolls, tissues, serviette and investment holding
Manufacturing and trading of personal care products such as sanitary products
Carrying out integrated logistics services,warehousing and trading of fast moving consumer goods
Carrying out information technology related businesses
Carrying out research and development activities on the production technology, biotechnology and recycling of waste materials related to paper industry
Malaysia
Malaysia
Malaysia
Malaysia
Malaysia
Malaysia
68 NTPM HOLDINGS BERHAD (384662-U)
13. INVESTMENTS IN SUBSIDIARIES (Cont’d.)
Details of the subsidiaries are as follows: (Cont’d.)
Name of subsidiariesEquity interest held
Principal activitiesCountry of
incorporation2009 % 2008%
NTPM (Thailand) Co., Ltd.*
NTPM (Singapore) Pte. Ltd.*
Nibong Tebal Paper Products Sdn. Bhd.
Held Through Nibong Tebal Paper MillSdn. Bhd.
Jia In Sdn. Bhd.
100.00
100.00
100.00
60.00
100.00
100.00
-
60.00
Importers and dealers in all kinds of paper products, tissue papers, toilet rolls, paper towels and general merchandise
Importers and dealers in all kinds of paper products, tissue papers, toilet rolls, paper towels and general merchandise
Undertaking paper product and printing related business and general trading
Printing of operating manuals, journals and packaging materials
Thailand
Singapore
Malaysia
Malaysia
* Audited by a firm of auditors other than Ernst & Young.
(a) Acquisition of a subsidiary
On 28 November 2008, the Company has incorporated a new subsidiary, Nibong Tebal Paper Products Sdn. Bhd. (“NTPP”).
The new subsidiary has contributed the following results to the Group:
RM
RevenueLoss for the period
-(105,084)
The assets and liabilities arising from the incorporation are as follows:
RM
Property, plant and equipment Other receivables
Trade and other payablesShare capital
368,9131,000,000
1,368,913
473,9971,000,000
1,473,997
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
69NTPM HOLDINGS BERHAD (384662-U)
13. INVESTMENTS IN SUBSIDIARIES (Cont’d.)
(a) Acquisition of a subsidiary (Cont’d.)
The cash inflow on incorporation is as follows:
RM
Purchase consideration satisfied by cashPurchase of property, plant and equipmentCash generated from operations
Net cash and cash equivalents
1,000,000(379,729)(620,271)
-
(b) Impairment loss recognised
The management of the Company has carried out a review of the recoverable amount of its investments in subsidiaries during the previous year. The review has led to the retention of the impairment loss of RM1,500,000 recognised in the prior year’s income statement. The recoverable amount was based on the value in use calculation using cash flow projections based on the financial budgets approved by management covering a five-year period.
The following describes each key assumption on which the management has based its cash flow projection to undertake impairment testing of investment:
• The basis used to determine the value assigned to budgeted gross margin is the average gross margin achieved in the year immediately before budgeted year.
• The weighted average growth rate used are determined based on the historical achievement in the year immediately before budgeted year adjusted for expected efficiency improvements and price increase due to inflation. The price inflation is the forecast price indices during the budget year for Malaysia.
• The 5% of discount rate used is pre-tax and reflects the cost of capital and internal rate of return of the Company.
14. OTHER INVESTMENTS
Group
2009RM
2008RM
Memberships in golf club, at costImpairment loss
66,185(66,185)
-
66,185(66,185)
- The management of the Group has carried out a review of the recoverable amount of its investments in golf club memberships
in the previous year. The review has led to the recognition of an impairment loss of RM45,000 in the previous year.
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
70 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
15. DEFERRED TAX
Group
2009RM
2008RM
(restated)
At 1 MayAs previously stated
Effect of adopting revised FRS112As restated
Recognised in the income statement (Note 9)Exchange differences
At 30 April
Presented after appropriate offsetting as follows:Deferred tax assetsDeferred tax liabilities
16,445,992 (1,688,893)
14,757,0992,250,626
17,007,725438
17,008,163
(290,786)17,298,949
17,008,163
16,397,244 (2,676,342)
13,720,902 1,035,944
14,756,846 253
14,757,099
(336,970)15,094,069
14,757,099
Company
2009RM
2008RM
At 1 MayRecognised in the income statement (Note 9)
At 30 April
Presented after appropriate offsetting as follows:Deferred tax assets
(19,620)12,109
(7,511)
(7,511)
(35,408)15,788
(19,620)
(19,620)
71NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
15. DEFERRED TAX (Cont’d.)
Deferred tax assets of the Group:
The components and movements of deferred tax assets and liabilities during the financial year prior to offsetting are as follows:
Retirementbenefit
obligationsRM
Unused tax losses,
unabsorbed reinvestment
allowances and capital
allowances RM
Otherpayables
RMOthers
RMTotal
RM
At 1 May 2008Effects of adopting FRS 112
Balance at 1 May 2008,as restated
Recognised in the income statement
At 30 April 2009
Balance at 1 May 2007, as previously statedEffects of adopting FRS 112
Balance at 1 May 2007, as restatedRecognised in the income statement
At 30 April 2008
(185,309)-
(185,309)
(27,241)
(212,550)
(173,211)
-
(173,211)
(12,098)
(185,309)
(447,103) (1,688,893)
(2,135,996)
1,860,452
(275,544)
-(2,676,342)
(2,676,342)
540,346
(2,135,996)
(683,543)-
(683,543)
(453,934)
(1,137,477)
(983,620)
-
(983,620)
300,077
(683,543)
(324,237)-
(324,237)
34,075
(290,162)
(362,052)-
(362,052)
37,815
(324,237)
(1,640,192) (1,688,893)
(3,329,085)
1,413,352
(1,915,733)
(1,518,883)(2,676,342)
(4,195,225)
866,140
(3,329,085)
Deferred tax liabilities of the Group:
Property, plant and
equipmentRM
Revaluationof properties
RMOthers
RMTotal
RM
At 1 May 2008Recognised in the income statementExchange differences
At 30 April 2009
At 1 May 2007Recognised in the income statementExchange differences
At 30 April 2008
15,549,182886,697
438
16,436,317
15,225,312323,617
253
15,549,182
2,535,547(51,773)
-
2,483,774
2,690,815(155,268)
-
2,535,547
1,4552,350
-
3,805
-1,455
-
1,455
18,086,184837,274
438
18,923,896
17,916,127169,804
253
18,086,184
72 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
15. DEFERRED TAX (Cont’d.)
Deferred tax (assets)/liabilities of the Company:
Property, plant and
equipmentRM
At 1 May 2008Recognised in the income statement
At 30 April 2009
At 1 May 2007Recognised in the income statement
At 30 April 2008
(19,620) 12,109
(7,511)
(35,408)15,788
(19,620)
Deferred tax assets have not been recognised in respect of the following items:
Group
2009RM
2008RM
Unused tax lossesUnabsorbed capital allowances
557,956275,508
833,464
268,80075,480
344,280
Deferred tax assets have not been recognised in respect of these items as they may not be used to offset taxable profits of other subsidiaries in the Group and they have arisen in subsidiaries that have a recent history of losses.
The availability of the unused tax losses and unabsorbed capital allowances for offsetting against future taxable profits of the respective subsidiaries are subject to no substantial changes in shareholdings of those subsidiaries under Section 44(5A) and (5B) of the Income Tax Act, 1967.
16. INVENTORIES
Group
2009RM
2008RM
Cost:Raw materialsWork-in-progressFinished goodsTrading goodsComputer parts and accessories
35,219,4672,657,9265,822,2379,011,905
9,801
52,721,336
31,327,0252,537,6575,124,1549,208,974
6,910
48,204,720
The cost of inventories recognised as an expense during the financial year of the Group amounted to RM251,119,433 (2008: RM218,993,990).
73NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
17. TRADE AND OTHER RECEIVABLES
Group Company
2009RM
2008RM
2009RM
2008RM
Current
Trade receivablesDue from subsidiariesTrade receivablesProvision for doubtful debts
Trade receivables, net
Other receivablesAdvances to subsidiariesDeposits for purchase of property, plant and equipment and raw materialsDividend receivable Sundry deposits and prepaymentsSundry receivablesStaff advances
Provision for doubtful debts
Other receivables, net
-60,609,712(1,136,687)
59,473,025
-
3,601,080-
1,076,225985,664
51,564
5,714,533(412,565)
5,301,968
64,774,993
-50,586,420(1,303,589)
49,282,831
-
2,253,011-
722,900807,715
67,520
3,851,146(309,853)
3,541,293
52,824,124
6,803,911--
6,803,911
100,746,739
-16,300,000
-29,836
1,260
117,077,835-
117,077,835
123,881,746
6,315,913--
6,315,913
15,870,427
--
33,69729,836
2,356
15,936,316-
15,936,316
22,252,229
(a) Credit risk
The Group’s primary exposure to credit risk arises through its trade receivables. The Group’s trading terms with its customers are on cash and credit basis. The Group’s normal trade credit terms range from 30 to 90 days (2008: 30 to 90 days). Other credit terms are assessed and approved on a case-by-case basis. The Group seeks to minimise credit risk. Overdue balances are reviewed regularly by senior management. In view of the aforementioned and the fact that the Group’s trade receivables relate to a large number of diversified customers, there is no significant concentration of credit risk. Trade receivables are non interest bearing.
(b) Amounts due from related parties
The amount due from subsidiaries included under the trade receivables comprises management fee which is unsecured, interest-free and has no fixed terms of repayment.
The advances to subsidiaries are unsecured, interest-free and have no fixed terms of repayment.
Further details on related party transactions are disclosed in Note 30. Other information on financial risks of the receivables are disclosed in Note 31.
74 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
18. CASH AND BANK BALANCES
2009RM
2008RM
2009RM
2008RM
Cash on hand and at banksDeposits with licensed banks: Short term placements
12,672,255
278,100
12,950,355
9,889,353
2,680,000
12,569,353
48,741
-
48,741
26,536
-
26,536
Other information on financial risks of cash and bank balances are disclosed in Note 31.
19. SHARE CAPITAL
Number of ordinary sharesof RM0.10 each Amount
2009RM
2008RM
2009RM
2008RM
Authorised
Issued and fully paid At 1 May Issued during the year- Bonus issue
At 30 April
2,500,000,000
624,000,000
499,200,000
1,123,200,000
2,500,000,000
624,000,000
-
624,000,000
250,000,000
62,400,000
49,920,000
112,320,000
250,000,000
62,400,000
-
62,400,000
During the financial year, the Company increased its issued and paid-up ordinary share capital from RM62,400,000 to RM112,320,000 by way of capitalisation of the bonus issue of 499,200,000 new ordinary shares of RM0.10 each on the basis of four new shares for every five existing shares held in the Company.
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company’s residual assets.
75NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
20. OTHER RESERVES
Assetrevaluation
reserve RM
Foreign currency
translation reserve
RMTotal
RM
Group
At 1 May 2007Foreign currency translation
At 30 April 2008
At 1 May 2008Foreign currency translation
At 30 April 2009
21,236,105-
21,236,105
21,236,105-
21,236,105
36,74979,260
116,009
116,009195,679
311,688
21,272,85479,260
21,352,114
21,352,114195,679
21,547,793
The nature and purpose of each category of reserve are as follows:
(a) Asset revaluation reserve
The asset revaluation reserve is used to record increases in the fair value of freehold land and building and decreases to the extent that such decrease relates to an increase on the same asset previously recognised in equity.
(b) Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. It is also used to record the exchange differences arising from monetary items which form part of the Group’s net investment in foreign operations, where the monetary item is denominated in either the functional currency of the reporting entity or the foreign operation.
21. TREASURY SHARES
This amount relates to the acquisition cost of treasury shares net of the proceeds received on their subsequent sale or reissuance.
The shareholders of the Company, by a special resolution passed in a general meeting held on 20 March 2009, approved the Company’s plan to repurchase its own ordinary shares. The directors of the Company are committed to enhancing the value of the Company for its shareholders and believe that the repurchase plan can be applied in the best interests of the Company and its shareholders.
During the financial year, the Company had repurchased a total of 9,000 ordinary shares of RM0.10 each of its issued share capital from the open market for a total consideration (inclusive of commission, stamp duty and other charges) of RM4,996 at an average cost of RM0.56 per share. The repurchase transactions were financed by internally generated funds. The repurchased shares are held as treasury shares in accordance with the requirements of Section 67A of the Companies Act, 1965. The Company had subsequently re-issued the 9,000 treasury shares by re-sale in the open market for a total net sales proceeds (net of commission, stamp duty and other charges) of RM4,904. The average net re-sale price of the treasury shares was RM0.54 per share.
76 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
22. RETAINED EARNINGS
The Company has elected for the irrevocable option under the Finance Act 2007 to disregard the 108 balance as at 31 December 2007. Hence, the Company will be able to distribute dividends out of its entire retained earnings as at 30 April 2009 under the single tier system.
23. BORROWINGS
Group
2009RM
2008RM
Short term borrowings
Secured:Bankers’ acceptancesExport credit refinancingTerm loans
Long term borrowings
Secured:Term loans
Total borrowings
Bankers’ acceptancesExport credit refinancingTerm loans
18,523,00013,873,000
3,989,058
36,385,058
8,415,764
18,523,00013,873,00012,404,822
44,800,822
13,649,0009,579,0004,461,392
27,689,392
12,411,658
13,649,0009,579,000
16,873,050
40,101,050
The bank borrowings, excluding term loans, are secured by the following:
• Corporate guarantee from the Company for RM139,150,000 (2008: RM139,150,000); and
• Negative pledge over the assets of a subsidiary.
The term loans are secured by the following:
●• Corporate guarantee from the Company for RM20,000,000 (2008: RM21,700,000); and
●• Negative pledge over the assets of a subsidiary.
Other information on financial risks of borrowings are disclosed in Note 31.
77NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
24. RETIREMENT BENEFIT OBLIGATIONS
A subsidiary operates an unfunded defined benefit plan for its eligible employees, as provided under the agreement between the subsidiary and the Paper And Paper Products Manufacturing Employees Union. Under the plan, employees with a minimum period of service of 5 years are entitled to retirement benefits calculated at 4% of final salary on attainment of the retirement age of 55.
The amount recognised in the balance sheet represents the present value of the unfunded defined benefit obligations, analysed as follows:
Group
2009RM
2008RM
CurrentNon-current
45,529804,672
850,201
27,016714,221
741,237
The amounts recognised in the income statement are as follows:
Group
2009RM
2008RM
Current service costInterest cost
Total, included in employee benefits expense (Note 5)
119,24979,458
198,707
92,55157,223
149,774
Movements in the net liability in the current year were as follows:
Group
2009RM
2008RM
At 1 MayAmounts recognised in the income statement (Note 5)Contributions paid
At 30 April
741,237198,707(89,743)
850,201
666,196149,774(74,733)
741,237
Principal actuarial assumptions used:
Group
2009%
2008%
Discount rateExpected rate of salary increases
7.007.00
7.007.00
78 NTPM HOLDINGS BERHAD (384662-U)
25. TRADE AND OTHER PAYABLES
Group Company
2009RM
2008RM
2009RM
2008RM
Current
Trade payables
Other payables
Due to directorsDue to subsidiariesAccrual for payroll related expensesIndirect taxes and other statutory payablesAccruals of expensesOther payables
18,282,442
84,610-
8,770,4843,543,8247,334,1566,234,898
25,967,972
44,250,414
17,722,531
432,967-
7,416,6633,029,1683,755,4316,315,788
20,950,017
38,672,548
-
69,9531,551,0712,107,716
51,01993,613
-
3,873,372
3,873,372
-
411,360671,532
1,778,65451,10597,380
-
3,010,031
3,010,031
(a) Trade payables
The trade payables are non-interest bearing and the normal trade credit terms granted to the Group range from 30 to 90 days (2008: 30 to 90 days).
(b) Other payables The amount of RM84,610 (2008: RM432,967) due to directors represent advances from the directors of the Company and
subsidiaries. The amounts due are unsecured, interest free and repayable upon demand.
Further details on related party transactions are disclosed in Note 30.
Other information on financial risks of other payables are disclosed in Note 31.
(c) Amounts due to subsidiaries
Amounts due to subsidiaries are mainly advances which are interest free, unsecured and are repayable on demand.
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
79NTPM HOLDINGS BERHAD (384662-U)
26. DIVIDENDS
Dividend recognised in the year Net dividend per share
2009RM
2008RM
2009RM
2008RM
In respect of the financial year ended 30 April 2009:
Single tier interim dividend of 11.7% paid on 22 April 2009
In respect of the financial year ended 30 April 2008:
Single tier final dividend of 21% paid on 10 October 2008
Interim tax-exempt dividend of 19.5% paid on 8 May 2008
In respect of the financial year ended 30 April 2007:
Final dividend of 26.5% less income tax of 27% paid on 28 September 2007
13,141,440
13,104,000
26,245,440
12,168,000
12,071,280
24,239,280
1.17
1.17
2.34
1.08
1.07
2.15
At the forthcoming Annual General Meeting, a single tier final dividend of 14.5% amounting to RM16,286,400 in respect of the financial year ended 30 April 2009, on 1,123,200,000 ordinary shares of RM0.10 each (1.45 sen per share) will be proposed for shareholders’ approval. The financial statements for the current financial year do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in shareholders’ equity as an appropriation of retained profits in the financial year ending 30 April 2010.
27. OPERATING LEASE ARRANGEMENTS
The Group has entered into non-cancellable operating lease agreements for the use of land, buildings and certain plant and machinery. These leases have an average life of between 3 and 5 years with no renewal or purchase option included in the contracts. Certain contracts include escalation clauses or contingent rental arrangements computed based on sales achieved while others include fixed rentals for an average of 3 years. There are no restrictions placed upon the Group by entering into
these leases.
The future aggregate minimum lease payments under non-cancellable operating leases contracted for as at the balance sheet date but not recognised as liabilities and the total of future aggregate minimum lease receipts expected to be received under non-cancellable leases, are as follows:
Group
2009RM
2008RM
Operating lease commitments payable:Not later than 1 yearLater than 1 year and not later than 5 years
390,02766,154
456,181
519,881265,484
785,365
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
80 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
28. CAPITAL COMMITMENTS
Group
2009RM
2008RM
Capital expenditure:Approved and contracted for:
Land and buildingsPlant and machinery
93,7205,764,080
5,857,800
83,0901,920,279
2,003,369
29. CONTINGENT LIABILITIES (UNSECURED)
Company
2009RM
2008RM
Corporate guarantees given to banks as securities for credit facilities granted to subsidiaries
44,800,822 40,101,050
30. RELATED PARTY DISCLOSURES
Company
2009RM
2008RM
Advances to subsidiaries, netManagement fee paid/ payable to a subsidiary (i)Management fee from subsidiaries (i)Dividend income from subsidiariesRental paid to subsidiary
33,492,64878,214
6,803,911 139,735,782
57,200
15,070,802108,342
6,315,91348,089,955
60,000
(i) Management fees expenses/revenue were made in accordance with prices negotiated between the parties.
Information regarding outstanding balances arising from related party transactions as at 30 April 2009 are disclosed in Notes 17 and 25.
The remuneration of directors and other members of key management during the year were as follows:
Group Company
2009RM
2008RM
2009RM
2008RM
Short term employee benefitsPost-employment benefit: Defined contribution plan
Included in the total key management personnel are:
Directors’ remuneration
3,483,672
345,045
3,828,717
3,828,717
3,256,365
273,783
3,530,148
3,530,148
2,767,459
327,471
3,094,930
3,094,930
2,534,719
241,693
2,776,412
2,776,412
81NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
31. FINANCIAL INSTRUMENTS
(a) Financial risk management objective and policies
The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for the development of the Group’s businesses whilst managing its interest rate risks (both fair value and cash flow), foreign currency risk, liquidity risk and credit risk. The Board reviews and agrees on policies for managing each of these risks and they are summarised below. The Group did not trade in derivative financial instruments during the financial year.
(b) Interest rate risk
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. As the Group has no significant interest-bearing financial assets, the Group’s income and operating cash flow are substantially independent of changes in market interest rates. The Group’s interest-bearing financial assets are mainly short term in nature and have been mostly placed in fixed deposits or occasionally, in short term commercial papers.
The Group’s interest rate risk arises primarily from interest-bearing borrowings. Borrowings at floating rates expose the Group to cash flow interest rate risk. Borrowings obtained at fixed rates expose the Group to fair value interest rate risk. The Group manages its interest rate exposure by maintaining a mix of fixed and floating rate borrowings.
The following tables set out the carrying amounts, the weighted average effective interest rates (“WAEIR”) as at the balance sheet date and the remaining maturities of the Group’s and the Company’s financial instruments that are exposed to interest rate risk:
Note WAEIR%
Within 1year
RM’000
1-2years
RM’000
2-3years
RM’000
3-4years
RM’000
4-5years
RM’000
More than 5years
RM’000Total
RM’000
At 30 April 2009
GROUP
Deposits with licensed bankShort term placements
Fixed rateTerm loans
Floating rateBankers’ acceptancesExport credit refinancing
18
23
23
23
2.40
5.42
2.77
2.94
278
3,989
18,523
13,873
-
4,099
-
-
-
4,215
-
-
-
102
-
-
-
-
-
-
-
-
-
-
278
12,405
18,523
13,873
82 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
31. FINANCIAL INSTRUMENTS (Cont’d.)
(b) Interest rate risk (Cont’d.)
Note WAEIR%
Within 1year
RM’000
1-2years
RM’000
2-3years
RM’000
3-4years
RM’000
4-5years
RM’000
More than 5years
RM’000Total
RM’000
At 30 April 2008
GROUP
Deposits with licensed bankShort term placements
Fixed rateTerm loans
Floating rateBankers’ acceptancesExport credit refinancing
18
23
23
23
2.40
5.41
3.88
3.90
2,680
4,461
13,649
9,579
-
3,989
-
-
-
4,099
-
-
-
4,215
-
-
-
109
-
-
-
-
-
-
2,680
16,873
13,649
9,579
Interest on financial instruments subject to floating interest rates is repriced annually. Interest on financial instruments at fixed rates are fixed until the maturity of the instrument. The other financial instruments of the Group and the Company that are not included in the above tables are not subject to interest rate risks.
83NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
31. FINANCIAL INSTRUMENTS (Cont’d.)
(c) Foreign currency risk
The Group is exposed to transactional currency risk primarily through sales and purchases that are denominated in a currency other than the functional currency of the operations to which they relate. The currencies giving rise to this risk are primarily United States Dollars, Singapore Dollar, Japanese Yen and Euro. Foreign exchange exposures in transactional currencies other than functional currencies of the operating entities are kept to an acceptable level.
The net unhedged financial assets and financial liabilities of the Group companies that are not denominated in their functional currencies are as follows:
At 30 April 2009:
Net financial assets/(financial liabilities)<-------------------- held in non-functional currency -------------------->
Functional Currency
United States Dollar
RM
SingaporeDollar
RM
Euro
RM
ThaiBaht
RM
Japanese Yen RM
TotalRM
GROUP
Trade receivablesRinggit Malaysia
Other receivablesRinggit Malaysia
Cash and bank balancesRinggit MalaysiaSingapore Dollar
Trade payablesRinggit Malaysia
Other payablesRinggit Malaysia
4,386,071
28,470
3,521,949505,529
4,027,478
719,214
243,430
-
-
172-
172
-
-
-
-
26,865-
26,865
244,323
77,693
228,597
-
--
-
-
130,056
-
-
--
-
-
29,956
4,614,668
28,470
3,548,986505,529
4,054,515
963,537
481,135
84 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
31. FINANCIAL INSTRUMENTS (Cont’d.)
(c) Foreign currency risk (Cont’d.)
At 30 April 2008:
Net financial assets/(financial liabilities)<-------------------- held in non-functional currency -------------------->
Functional Currency
United States Dollar
RM
ThaiBaht
RM
SingaporeDollar
RM
Euro
RM
AustralianDollar
RM
Japanese Yen RM
TotalRM
GROUP
Trade receivablesRinggit Malaysia
Cash and bank balancesRinggit MalaysiaSingapore Dollar
Trade payablesRinggit Malaysia
Other payablesRinggit Malaysia
2,152,554
581,873445,208
1,027,081
454,307
331,308
184,121
--
-
-
-
-
26,231-
26,231
144,352
174,873
-
--
-
-
222,254
-
--
-
-
-
-
--
-
-
2,053
2,336,675
608,104445,208
1,053,312
598,659
730,488
The outstanding forward foreign exchange contracts of a subsidiary are as follows:
Hedged Items
Currency to be received/
settled
Amount in foreign currency Equivalent
RM
Average forward
contract rateFair
valueRM
At 30 April 2009:Trade receivables
At 30 April 2008:Trade receivables
Singapore DollarUSD
Singapore Dollar
4,398,0001,000,000
4,873,000
10,561,0853,632,475
11,238,188
2.40133.6325
2.3062
10,621,1703,498,000
11,319,492
The maturity dates for the forward foreign exchange contracts are within one year.
(d) Liquidity risk The Group manages its debt maturity profile, operating cash flows and the availability of funding so as to ensure that
refinancing, repayment and funding needs are met. As part of its overall liquidity management, the Group maintains sufficient levels of cash or cash convertible investments to meet its working capital requirements. In addition, the Group strives to maintain available banking facilities at a reasonable level to its overall debt position. As far as possible, the Group raises committed funding from both capital markets and financial institutions and balances its portfolio with some short term funding so as to achieve overall cost effectiveness.
85NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
31. FINANCIAL INSTRUMENTS (Cont’d.)
(e) Credit risk
The Group’s credit risk is primarily attributable to trade receivables. The Group trades only with recognised and creditworthy third parties. It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivables balances are monitored on an ongoing basis and the Group’s exposure to bad debts is not significant. For transactions that are not denominated in the functional currency of the relevant operating unit, the Group does not offer credit terms without the specific approval of the Head of Credit Control. Since the Group trades only with recognised and creditworthy third parties, there is no requirement for collateral.
The credit risk of the Group’s other financial assets, which comprise cash and cash equivalents, marketable securities and non-current investments, arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets.
The Group does not have any significant exposure to any individual customer or counterparty nor does it have any major concentration of credit risk related to any financial assets.
(f) Fair values
The carrying amounts of financial assets and liabilities of the Group and of the Company at the balance sheet date approximated their fair values except for the following:
Group
Note
Carrying/ Notionalamount
RM
Fair value
RM
At 30 April 2009
Fixed rate term loansForward foreign exchange contracts:
Receivables
At 30 April 2008
Fixed rate term loansForward foreign exchange contracts:
Receivables
23
31(c)
23
31(c)
12,404,822
14,193,560
16,873,050
11,238,188
11,867,631
14,119,170
15,409,568
11,319,492
The methods and assumptions used by management to determine fair values of financial instruments other than those whose carrying amounts reasonably approximate their fair values are as follows:
i. Borrowings
Fair value has been determined using discounted estimated cash flows. The discount rates used are the current market incremental lending rates for similar types of lending, borrowing and leasing arrangements.
ii. Forward foreign exchange contracts The fair value of a forward foreign exchange contract is the amount that would be payable or receivable on termination
of the outstanding position arising and is determined by reference to the difference between the contracted rate and forward exchange rate as at the balance sheet date applied to a contract of similar quantum and maturity profile.
86 NTPM HOLDINGS BERHAD (384662-U)
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
32. SEGMENTAL INFORMATION
(a) Business segments:
The Group is organised into two major business segments:
i. Manufacturing-manufacturing of paper products such as toilet rolls, tissues, serviette and personal care products such as sanitary products.
ii. Trading-trading of paper, cotton, diapers and sanitary products. The directors are of the opinion that all inter-segment transactions have been entered into in the normal course of business
and have been established on terms and conditions that are not materially different from those obtainable in transactions with unrelated parties.
30 April 2009Manufacturing
RMTrading
RMOthers
RMAmalgamation
RMEliminations
RMConsolidated
RM
REVENUE AND EXPENSES
RevenueSegment revenue
External salesInter-segment sales
Total revenue
ResultsSegment resultsUnallocated results
Operating profitFinance costs
Profit before taxIncome tax expense
Profit for the year
62,021,445225,123,978
287,145,423
29,844,452-
296,535,06439,117,936
335,653,000
30,195,336-
-147,190,204
147,190,204
679,188-
358,556,509411,432,118
769,988,627
60,718,976-
-(411,432,118)
--
358,556,509-
358,556,509
60,718,976-
60,718,976(2,041,701)
58,677,275(12,371,941)
46,305,334
87NTPM HOLDINGS BERHAD (384662-U)
32. SEGMENTAL INFORMATION (Cont’d.)
(a) Business segments: (Cont’d.)
30 April 2009Manufacturing
RMTrading
RMOthers
RMAmalgamation
RMEliminations
RMConsolidated
RM
ASSETS AND LIABILITIESSegment assetsUnallocated assets:
Tax assetsDeferred tax assets
Consolidated total assets
Segment liabilitiesUnallocated liabilities:
BorrowingsTax liabilities
Consolidated total liabilities Capital expenditureDepreciationGoodwill written offImpairment lossesAmortisation of prepaid land lease paymentsNon-cash expenses other than depreciation, goodwill written off and impairment losses
233,495,461
30,128,661
21,739,13117,439,578
--
24,923
2,292,712
78,575,728
12,530,998
2,462,7991,018,134
--
-
293,691
693,076
2,440,956
81,375154,551
--
-
4,263
312,764,265
45,100,615
24,283,30518,612,263
--
24,923
2,590,666
-
-
(426,314)---
-
-
312,764,265573,370290,786
313,628,421
45,100,61544,800,82219,796,884
109,698,321
23,856,99118,612,263
--
24,923
2,590,666
30 April 2008Manufacturing
RMTrading
RMOthers
RMAmalgamation
RMEliminations
RMConsolidated
RM
REVENUE AND EXPENSES
RevenueSegment revenueExternal salesInter-segment sales
Total revenue
ResultsSegment resultsUnallocated results
Operating profitFinance costs
Profit before taxIncome tax expense
Profit for the year
46,548,758200,381,611
246,930,369
19,877,666
259,623,81032,100,175
291,723,985
23,489,776
-55,010,486
55,010,486
621,684
306,172,568287,492,272
593,664,840
43,989,126
-(287,492,272)
(287,492,272)
-
306,172,568-
306,172,568
43,989,126-
43,989,126(2,371,217)
41,617,909(8,455,350)
33,162,559
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
88 NTPM HOLDINGS BERHAD (384662-U)
32. SEGMENTAL INFORMATION (Cont’d.)
(a) Business segments: (Cont’d.)
30 April 2008Manufacturing
RMTrading
RMOthers
RMAmalgamation
RMEliminations
RMConsolidated
RM
ASSETS AND LIABILITIESSegment assetsUnallocated assets:Tax assetsDeferred tax assets
Consolidated total assets
Segment liabilitiesUnallocated liabilities:BorrowingsTax liabilities
Consolidated total liabilities Capital expenditureDepreciationGoodwill written offImpairment lossesAmortisation of prepaid land lease paymentsNon-cash expenses other than depreciation, goodwill written off and impairment losses
220,726,962
28,142,779
18,258,58316,596,738
-45,000
19,020
500,638
68,999,495
8,849,991
1,178,927969,665
--
-
(604,901)
776,228
14,589,057
203,954147,560
--
-
-
290,502,685
51,581,827
19,641,46417,713,963
-45,000
19,020
(104,263)
-
-
(1,829,102)---
-
-
290,502,685
732,401336,970
291,572,056
51,581,82740,101,05016,214,559
107,897,436
17,812,36217,713,963
-45,000
19,020
(104,263)
(b) Geographical segments:
The Group’s operations are mainly located in Malaysia, except those of the subsidiaries in Singapore and Thailand. The customers for the manufacturing businesses are located worldwide, namely in Singapore and other countries such as Hong Kong, Brunei, Philippines, Africa, Australia and New Zealand.
Total revenue from external customers Segment assets Capital expenditure
2009RM
2008RM
2009RM
2008RM
2009RM
2008RM
MalaysiaSingaporeOthers *
Consolidated
239,905,97758,463,21760,187,315
358,556,509
208,442,32351,857,50745,872,738
306,172,568
296,191,32514,613,202
1,959,738
312,764,265
273,147,74112,746,186
4,608,758
290,502,685
23,793,93711,67051,385
23,856,991
17,676,155136,207
-
17,812,362
* Others mainly refer to countries such as Thailand, Hong Kong, Brunei, Philippines, Africa, Australia, New Zealand and the United States of America.
NOTES TO THE FINANCIAL STATEMENTS- 30 APRIL 2009 (Cont’d)
89NTPM HOLDINGS BERHAD (384662-U)
Location/Address
Description of property/
Existing use
Land/Built-up
Area(Sq. m.)
ApproximateAge of
Building(Year) Tenure
RegisteredOwner
NBV 30.4.2009
RMDate of
Valuation
1 Lot 1000, Grant No. 35375 and Lot 999, G.M.514, Mukim 8, Seberang Perai Selatan, Penang.
Paper Mill andtissue manufacturing factory
The factory is located at No. 886,Jalan Bandar Baru,Sungai Kecil,14300 Nibong Tebal
69,082/28,617
Between11 to 30
Freehold industrial
land
NTPM 22,747,867 30.4.2007
2 Lot 642, Grant No.2263, Mukim 8, Seberang Perai Selatan, Penang.
A parcel of agricultural land
52,100 - Freehold agricultural
land
NTPM 1,000,000 30.4.2007
3 Lot 109, G.M. 372,I.R. 608, Lot 609, G.M. 594, Lot 610, Lot 631, G.M. 107, I.R. 801, I.R. 804, Lot 808, G.M. 598, Lot 810,G.M. 285, Lot 811, G.M. 286, Lot 957,G.M. 501, Lot 958,G.M. 502, Lot 959,G.M. 503, Mukim 8, Seberang Perai Selatan, Penang.
Vacant industrial land except for the followings:
Lot 608 - boiler house, mechanical workshop, waste water treatment plant, waste wood storage
Lot 631 is utilisedas open storage yard for wastepaper
Lot 109, Lot 609, Lot 811, I.R. 804 and Lot 808 is utilised as open storage yard for wastepaper & sludge recycling factory
Lot 608 & Lot 609is utilised as sanitary napkin manufacturing factory, finished goods building,fiber flow drum building, waste paper building & chemical store
Lot 610 is utilised as storage for material feed for boiler
191,170/46,298
Between 6 to 9
Between 2 to 7
2
Freehold industrial
land
NTPM 34,480,027 30.4.2007
LIST OF PROPERTIES
90 NTPM HOLDINGS BERHAD (384662-U)
Location/Address
Description of property/
Existing use
Land/Built-up
Area(Sq. m.)
ApproximateAge of
Building(Year) Tenure
RegisteredOwner
NBV 30.4.2009
RMDate of
Valuation
4 Lot 5787, Pajakan Negeri No 41687, Mukim of Parit Buntar, District of Krian, Perak.
A factory complex with a gross built - up area of 3,100 sq.m located at P.t. No 139, Kawasan PerusahaanParit Buntar,which presently is utilised as envelopesmanufacturing factory
4,165/3,100
Between 11 to 13
Leaseholdindustrial
landfor a term
of 60 years expiring on 22.10.2047
NTPM 1,722,863 30.4.2007
5 Lot 442, Grant No.32492 & Lot 443, G.M. 478, Mukim 7, and Lot 794,G.M. 277, Mukim 8, Seberang Perai Selatan,Penang.
Lot 442 & 443 - vehicle workshop building
Lot 794 - vacantagricultural land
75,919/279
7 Freeholdindustrial
land except for Lot 794which is a freehold
agriculturalland
NTPM 4,719,545 30.4.2007
6 H.S.(D) 224308 PTD No. 41665 Senai-Kulai,Johor Bahru, Johor.
An office and warehouse complex
4,390/1,593
6 Freeholdland
NTPM 1,572,000 30.4.2007
7 No 5, Jalan Tiang U8/93, Bukit Jelutong Industrial Park, Shah Alam, Selangor.
An office and warehouse complex
10,000/5,950
4 Freehold industrial
land
NTPM 9,465,654 30.4.2007
8 P.t. No 385, H.S. (D) 2279, Mukim 13, Seberang Perai Tengah, Penang.
Vacant industrial land
4,876 - Leaseholdindustrial
landfor a term
of 60 yearsexpiring on5.7.2060
Jia In 535,295 19.9.2001
9 Lot No 784, G.M. 267,Lot No 786, G.M. 269,Lot No 787, G.M. 270,Lot No 788, G.M. 271,Lot No 789, G.M. 273,Lot No 790, G.M. 274,Lot No 799, G.M. 279,Lot No 800, G.M. 280,Mukim 8, Seberang Perai Selatan, Penang.
Vacant agriculture land
96,401 - Freeholdland
NTPM 1,930,000 30.4.2007
LIST OF PROPERTIES (Cont’d)
91NTPM HOLDINGS BERHAD (384662-U)
Location/Address
Description of property/
Existing use
Land/Built-up
Area(Sq. m.)
ApproximateAge of
Building(Year) Tenure
RegisteredOwner
NBV 30.4.2009
RMDate of
Valuation
10 Lot 960, G.M. 504,Mukim 8, Seberang Perai Selatan, Penang.
Vacant agriculture land
3,485 - Freeholdland
NTPM 71,303 Acquired on
8.8.2007
11 Lot 7278, Pajakan Negeri,Mukim Parit Buntar,Daerah Kerian Perak.
A factory, office & warehouse complex with a gross built-up area of 12,417sq.m located at P.t. No3688, Jln Perusahaan 3,Kawasan Perindustrian ParitBuntar, 34200 Parit Buntar
16,192/12,417
1 Leaseholdindustrial
land for a term
of 60 years expiring on1.6. 2050
NTPC 2,458,946 Acquired on
18.8.2008
80,703,500
LIST OF PROPERTIES (Cont’d)
92 NTPM HOLDINGS BERHAD (384662-U)
SHARE CAPITAL Authorised Capital : RM250,000,000.00 Issued and Fully Paid-Up Capital : RM112,320,000.00 consists of 1,123,200,000 ordinary shares of RM0.10 eachClass of Equity Securities : Ordinary shares of RM0.10 each (“Shares”)Voting Rights : One vote per Share
DISTRIBUTION SCHEDULE OF SHAREHOLDERS
No. of Holders Holdings Total
Shareholdings %
1971
1,6201,357
2854
Less than 100100 - 1,0001,001 - 10,00010,001 to 100,000 100,001 to less than 5% of issued shares5% and above of issued shares
82145,920
8,856,50045,432,040
450,623,215618,241,504
*0.010.794.04
40.1255.04
3,356 1,123,200,000 100.00
* Negligible
30 LARGEST SECURITIES ACCOUNT HOLDERS
NO. Name No. of Shares held %
1
2
3
4
5
6
7
8
9
10
11
12
13
LEE SEE JIN
LEE CHONG CHOON
LEMBAGA TABUNG HAJI
HDM NOMINEES (TEMPATAN) SDN BHD[TEOH TEIK LIN]
HDM NOMINEES (TEMPATAN) SDN BHD[KOTA BERAS SENDIRIAN BERHAD]
HDM NOMINEES (TEMPATAN) SDN BHD[TEOH TEIK KEE]
B. T. TEOH HOLDINGS SDN. BHD.
TAN KEAT CHEW
OOI KIM TEAN @ NG AH BA
UOBM NOMINEES (TEMPATAN) SDN BHD[PLEDGED SECURITIES ACCOUNT FOR DATO’ TEOH BOON BENG @TEOH ENG KUAN]
WANGSA DANAU SDN BHD
NG INN BEO
CIMB NOMINEES (TEMPATAN) SDN BHD[LEE SEE JIN]
328,561,549
126,711,197
105,081,480
57,887,278
43,471,922
43,200,014
37,966,912
30,117,639
19,837,177
18,737,100
15,110,292
12,148,605
11,982,814
29.25
11.28
9.36
5.15
3.87
3.85
3.38
2.68
1.77
1.67
1.35
1.08
1.07
ANALYSIS OF SHAREHOLDINGSAS AT 17 JULY 2009
93NTPM HOLDINGS BERHAD (384662-U)
ANALYSIS OF SHAREHOLDINGSAS AT 17 JULY 2009 (Cont’d)
30 LARGEST SECURITIES ACCOUNT HOLDERS (cont’d.)
NO. Name No. of Shares held %
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
TEOH BOON TEONG
GINNY TEOH CHOOI SEAN
UNITED OVERSEAS NOMINEES (TEMPATAN) SDN BHD[PLEDGED SECURITIES ACCOUNT FOR TEOH TEIK LIN]
TEOH PENG HEONG & SONS SDN BHD
KOTA BERAS SENDIRIAN BERHAD
MAYBAN SECURITIES NOMINEES (TEMPATAN) SDN BHD[PLEDGED SECURITIES ACCOUNT FOR TEOH TEIK TOE]
NG CHENG KEE
OOI YAN HUA
LIM PENG HUAT
CIMSEC NOMINEES (TEMPATAN) SDN BHD[CIMB BANK FOR LEE CHONG CHOON]
TEOH TEIK WAI
FOO SAY HAI
NG LAY SIN
NG LAY TUAN
ADDEEN CONSTRUCTION & SERVICES SDN BHD
HDM NOMINEES (TEMPATAN) SDN BHD[TEOH BEE NEE]
AMANAH SAHAM MARA BERHAD
10,360,800
10,073,880
9,000,000
8,432,000
8,280,000
7,430,400
7,088,079
6,129,945
5,500,000
5,400,000
4,658,260
3,742,000
3,668,684
3,655,484
3,629,100
3,600,000
3,282,900
0.92
0.90
0.80
0.75
0.74
0.66
0.63
0.55
0.49
0.48
0.41
0.33
0.33
0.33
0.32
0.32
0.29
SUBSTANTIAL SHAREHOLDERS (excluding those who are bare trustee pursuant to Section 69 of the Companies Act, 1965)
No. of Shares beneficially held
Name of Substantial Shareholders Direct % Note Indirect % Note
Lee See JinLee Chong ChoonTeoh Teik Lin Dato’ Teoh Boon Beng @ Teoh Eng KuanLembaga Tabung Haji
328,561,549132,111,19766,887,27818,737,100
105,081,480
29.2511.76 5.96 1.67 9.36
1234
138,469,382--
179,011,214
12.33--
15.94
5
6
94 NTPM HOLDINGS BERHAD (384662-U)
ANALYSIS OF SHAREHOLDINGSAS AT 17 JULY 2009 (Cont’d)
SUBSTANTIAL SHAREHOLDERS (cont’d.)
Notes :1. By virtue of his shareholdings of 328,561,549 Shares in his own name only, which has excluded 11,982,814 Shares held through CIMB Nominees
(Tempatan) Sdn Bhd, whereby he has given up his voting rights attached to these Shares.2. By virtue of his shareholdings of 5,400,000 Shares held through Cimsec Nominees (Tempatan) Sdn Bhd and 126,711,197 Shares held under his own
name.3. By virtue of his shareholdings of 57,887,278 Shares held through HDM Nominees (Tempatan) Sdn Bhd and 9,000,000 Shares held through United
Overseas Nominees (Tempatan) Sdn Bhd.4. Held through UOBM Nominees (Tempatan) Sdn Bhd.5. Deemed interests through his spouse and children pursuant to Section 134(12) of the Companies Act 1965 (“the Act”). 6. a) Deemed interests by virtue of his shareholdings held through the following companies in NTPM Holdings Berhad by virtue of Section 6A of the Act:-
i) Kota Beras Sendirian Berhad (51,751,922 Shares) ii) Teoh Peng Heong & Sons Sdn Bhd (11,232,000 Shares) b) Deemed interests through his children pursuant to Section 134(12) of the Act.
DIRECTORS’ SHAREHOLDINGS (DIRECT & INDIRECT)
No of Shares beneficially held by the Directors
Name of Directors Direct % Note Indirect % Note
Dato’ Teoh Boon Beng @ Teoh Eng KuanLee See JinLee Chong ChoonTeoh Teik ToeLim Han NgeChang Kong FooTeoh Teik Lin (Alternate Director toDato’ Teoh Boon Beng @ Teoh Eng Kuan)
18,737,100328,561,549132,111,197
7,430,400--
66,887,278
1.6729.2511.76
0.66--
5.96
1234
7
179,011,214138,469,382
---
180,000-
15.9412.33
---
0.02-
56
8
Notes :
1. Held through UOBM Nominees (Tempatan) Sdn Bhd.2. By virtue of his shareholdings of 328,561,549 Shares in his own name only, which has excluded 11,982,814 Shares held through CIMB Nominees
(Tempatan) Sdn Bhd, whereby he has given up his voting rights attached to these Shares.3. By virtue of his shareholdings of 5,400,000 Shares held through Cimsec Nominees (Tempatan) Sdn Bhd and 126,711,197 Shares held under his own
name.4. Held through Mayban Securities Nominees (Tempatan) Sdn Bhd.5. a) Deemed interests by virtue of his shareholdings held through the following companies in NTPM Holdings Berhad by virtue of Section 6A of the Act:-
i) Kota Beras Sendirian Berhad (51,751,922 Shares) ii) Teoh Peng Heong & Sons Sdn Bhd (11,232,000 Shares) b) Deemed interests through his children pursuant to Section 134(12) of the Act.
6. Deemed interests through his spouse and children pursuant to Section 134(12) of the Act. 7. By virtue of his shareholdings of 57,887,278 Shares held through HDM Nominess (Tempatan) Sdn Bhd and 9,000,000 Shares held through United
Overseas Nominees (Tempatan) Sdn Bhd.8. Deemed interests through his spouse pursuant to Section 134(12) of the Act.
INTERESTS IN THE RELATED CORPORATION Dato’ Teoh Boon Beng @ Teoh Eng Kuan and Mr. Lee See Jin, by virtue of their interests in shares in the Company, are deemed interested in shares of all the Company’s subsidiaries to the extent the Company has an interest.
Save as disclosed above, none of the other Directors in office have any interest in shares in the Company or its related corporations.
95NTPM HOLDINGS BERHAD (384662-U)
NOTICE OF ANNUAL GENERAL MEETING
AS ORDINARY BUSINESS: -
1. To receive the Audited Financial Statements for the year ended 30 April 2009 together with the Reports of the Directors and Auditors thereon.
2. To re-elect Mr. Teoh Teik Toe who retires in accordance with Article 133 of the Company’s Articles of Association and being eligible, is offering himself for re-election.
3. To re-elect Mr. Chang Kong Foo who retires in accordance with Article 138 of the Company’s Articles of
Association and being eligible, is offering himself for re-election.
4. To consider and, if thought fit, to pass the following resolutions in accordance with Section 129(6) of the Companies Act, 1965:
(i) “THAT Dato’ Teoh Boon Beng @ Teoh Eng Kuan, retiring in accordance with Section 129 of the
Companies Act, 1965, be and is hereby re-appointed as Director of the Company to hold office until the conclusion of next Annual General Meeting of the Company.”
(ii) “THAT Mr. Lee See Jin, retiring in accordance with Section 129 of the Companies Act, 1965, be and is hereby re-appointed as Director of the Company to hold office until the conclusion of next Annual General Meeting of the Company.”
5. To approve the declaration of a single tier final dividend of 14.5% for the year ended 30 April 2009. 6. To approve the payment of Directors’ fees of RM240,000 for the year ended 30 April 2009. 7. To re-appoint Messrs. Ernst & Young as Auditors of the Company until the conclusion of the next Annual
General Meeting and to authorise the Directors to fix their remuneration.
AS SPECIAL BUSINESS: -
8. To consider and, if thought fit, to pass with or without modifications, the following resolution as ordinary resolution: -
Ordinary Resolution Proposed renewal of share buy-back authority for the Company to purchase its own ordinary
shares of up to 10% of its issued and paid-up ordinary share capital (“Proposed Renewal of Share Buy-Back Mandate”)
“THAT, subject to the Companies Act, 1965 (“the Act”), the provisions of the Company’s Memorandum and
Articles of Association, the Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) and all other applicable laws, guidelines, rules and regulations, the Directors of the Company be and hereby authorised, to the fullest extent permitted by law, to purchase such amount of ordinary shares of RM0.10 each in the Company (“Shares”) from time to time through Bursa Securities upon such terms and conditions as the Directors may deem fit and expedient in the interest of the Company provided that:-
Resolution 1
Resolution 2
Resolution 3
Resolution 4
Resolution 5
Resolution 6
Resolution 7
NOTICE IS HEREBY GIVEN that the Thirteenth (13th) Annual General Meeting of NTPM Holdings Berhad (“the Company”) will be held at Bukit Jawi Golf Resort, 691, Main Road, Sungai Bakap, 14200 Seberang Perai Selatan, Pulau Pinang on Thursday, 3 September 2009 at 9.30 a.m. for the following purposes:
96 NTPM HOLDINGS BERHAD (384662-U)
(a) the aggregate number of the Shares which may be purchased or held by the Company shall not exceed ten per centum (10%) of the total issued and paid-up ordinary share capital for the time being of the Company, subject to a restriction that the Company continues to maintain a shareholding spread that is in compliance with the Listing Requirements of Bursa Securities after the Share Buy-Back;
(b) the maximum fund to be allocated by the Company for the purpose of purchasing the Shares under the Proposed Renewal of Share Buy-Back Mandate shall not exceed the share premium account or retained profits of the Company for the time being;
(c) authority conferred by this resolution shall commence immediately upon passing of this ordinary resolution and shall continue to be in force until:
(i) the conclusion of the next Annual General Meeting (“AGM”) of the Company following the forthcoming AGM, at which time the authority will lapse unless renewed by ordinary resolution, either unconditionally or conditionally; or
(ii) the expiration of the period within which the next AGM after the date is required by law to be held; or
(iii) revoked or varied by ordinary resolution passed by the shareholders in a general meeting,
whichever occurs first, but not so as to prejudice the completion of purchase(s) by the Company of the Shares before the aforesaid expiry date and, made in any event, in accordance wih the provisions of the guidelines issued by Bursa Securities and any prevailing laws, rules, regulations, orders, guidelines and requirements issued by any relevant authorities; and
(d) upon completion of the purchase(s) of the Shares by the Company, authority be and is hereby given to the Directors of the Company to decide at their absolute discretion to either cancel the Shares so purchased and/or to retain the Shares so purchased as treasury shares and if retained as treasury shares, may resell the treasury shares and/or to distribute as Shares dividends to shareholders in the manner as prescribed by the Act, rules, regulations and orders made pursuant to the Act and the requirements of the Bursa Securities and any other relevant authority for the time being in force;
AND THAT the Directors of the Company be and are hereby authorised to take all such steps as are necessary or expedient to implement, finalise, complete or to effect the Proposed Renewal of Share Buy-Back Mandate with full powers to assent to any conditions, modifications, resolutions, variations and/or amendments (if any) as may be imposed by the relevant authorities and to do all such acts and things as the said Directors may deem fit and expedient in the best interest of the Company to give effect to and to complete the purchase of the Shares.” Resolution 8
NOTICE OF ANNUAL GENERAL MEETING (Cont’d)
97NTPM HOLDINGS BERHAD (384662-U)
NOTICE OF ANNUAL GENERAL MEETING (Cont’d)
NOTICE OF DIVIDEND ENTITLEMENT
NOTICE IS ALSO HEREBY GIVEN that a single tier final dividend of 14.5% will be payable on 18 September 2009 to depositors who are registered in the Record of Depositors at the close of business on 10 September 2009 if approved by members at the 13th Annual General Meeting on 3 September 2009.
A Depositor shall qualify for entitlement only in respect of: -
(a) Shares transferred into the Depositor’s Securities Account before 4.00 p.m. on 10 September 2009 in respect of ordinary transfers; and
(b) Shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of the Bursa Malaysia
Securities Berhad.
By Order of the Board,
THUM SOOK FUN (MAICSA 7025619)Company Secretary
PenangDated: 12 August 2009
Explanatory Notes to Special Business:
Resolution 8 - Proposed Renewal of Share Buy-Back Mandate
The proposed adoption of the Resolution No. 8, if passed, will empower the Directors to buy-back and/or hold up to a maximum of 10% of the Company’s issued and paid-up share capital at any point of time, by utilising the funds allocated which shall not exceed the total retained profits or share premium of the Company. This authority, unless revoked or varied by the Company in a general meeting, will expire at the conclusion of the next Annual General Meeting of the Company, or the expiration of period within which the next Annual General Meeting is required by law to be held, whichever is earlier.
Notes:
1. A proxy may but need not be a member of the Company and the provisions of Section 149(1)(a), (b) and (c) of the Companies Act, 1965 shall not apply to the Company. If a member appoints two (2) proxies, the appointments shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy.
2. Where a member of the Company is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, it may appoint at least one (1) proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account.
3. The instrument appointing a proxy shall be in writing, under the hand of the appointer or of his attorney duly authorised in writing. In the case where a member is a corporation, the proxy form must be executed under its common seal or under the hand of an officer or attorney duly authorised.
4. All proxy forms must be duly executed and deposited at the registered office of the Company at Suite 18.05, MWE Plaza, No. 8, Lebuh Farquhar, 10200 Penang at least 48 hours before the time for holding the meeting or any adjournment thereof.
98 NTPM HOLDINGS BERHAD (384662-U)
The Directors standing for re-election/re-appointment at the 13th Annual General Meeting of the Company to be held at Bukit Jawi Golf Resort, 691, Main Road, Sungai Bakap, 14200 Seberang Perai Selatan, Pulau Pinang on Thursday, 3 September 2009 at 9.30 a.m. are as follows:-
Directors standing for re-election/re-appointment
(a) Re-election in accordance with Article 133 of the Company’s Articles of Association of the Company:-
i) Mr. Teoh Teik Toe
(b) Re-election in accordance with Article 138 of the Company’s Articles of Association of the Company:-
i) Mr. Chang Kong Foo
(c) Re-appointment in accordance with Section 129(6) of the Companies Act, 1965:-
i) Dato’ Teoh Boon Beng @ Teoh Eng Kuan ii) Mr. Lee See Jin
Details of attendance of Directors at Board meetings held during the financial year ended 30 April 2009
There were four (4) Board meetings held during the financial year ended 30 April 2009. The details of attendance is set out on page 18 in the Corporate Governance Statement of the Company’s 2009 Annual Report.
STATEMENT ACCOMPANYING THE NOTICE OF ANNUAL GENERAL MEETING
99NTPM HOLDINGS BERHAD (384662-U)
*I/We NRIC/ Passport No.
of
being a *member/members of NTPM HOLDINGS BERHAD (“the Company”) hereby appoint
NRIC/ Passport No. of
or failing him, NRIC/ Passport No.
of
or the Chairman of the meeting, as *my/our proxy to vote in *my/our name(s) on *my/our behalf at the Thirteenth Annual General Meeting of the Company to be held at Bukit Jawi Golf Resort, 691, Main Road, Sungai Bakap, 14200 Seberang Perai Selatan, Pulau Pinang on Thursday, 3 September 2009 at 9.30 a.m. and at any adjournment thereof.
Please indicate with an ‘X’ in the space provided below how you wish your vote to be casted. In the absence of specific directions, your proxy will vote or abstain from voting as he/she thinks fit.
AGENDA
1. To receive the Audited Financial Statements for the financial year ended 30 April 2009 together with the Reports of the Directors and Auditors thereon.
Resolutions For Against
2. To re-elect Mr. Teoh Teik Toe as Director of the Company pursuant to Article 133 of the Company’s Articles of Association.
(Resolution 1)
3. To re-elect Mr. Chang Kong Foo as Director of the Company pursuant to Article 138 of the Company’s Articles of Association.
(Resolution 2)
4. To re-appoint the following Directors pursuant to Section 129 (6) of the Companies Act, 1965:-i) Dato’ Teoh Boon Beng @ Teoh Eng Kuan ii) Mr. Lee See Jin
5. To approve the declaration of a single tier final dividend of 14.5%.(Resolution 5)
6. To approve the payment of Directors’ fees.(Resolution 6)
7. To re-appoint Messrs. Ernst & Young as Auditors for the ensuing year and to authorise the Directors to fix their remuneration.
(Resolution 7)
8. To approve the Proposed Renewal of Share Buy-Back Mandate(Resolution 8)
* strike out whichever not applicable.
Signed this _______ day of ________________________, 2009.
__________________________________Signature of Shareholder / Common Seal
Notes:1. A proxy may but need not be a member of the Company and the provisions of Section 149(1)(a), (b) and (c) of the Companies Act, 1965 shall not apply to the Company.
If a member appoints two (2) proxies, the appointments shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy.2. Where a member of the Company is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, it may appoint at least one (1)
proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account.3. The instrument appointing a proxy shall be in writing, under the hand of the appointor or of his attorney duly authorised in writing. In the case where a member is a
corporation, the proxy form must be executed under its common seal or under the hand of an officer or attorney duly authorised.4. All proxy forms must be duly executed and deposited at the registered office of the Company at Suite 18.05, MWE Plaza, No. 8, Lebuh Farquhar, 10200 Penang at
least 48 hours before the time for holding the meeting or any adjournment thereof.5. Any alteration should be initialed.
PROXY FORM
(Full Name in Capital Letters)
(Full Address)
(Full Address)
(Full Address)(Full Name in Capital Letters)
(Full Name in Capital Letters)
(Resolution 3)(Resolution 4)
No. of shares held
To: Company Secretary NTPM Holdings Berhad (384662-U)
Suite 18.05, MWE Plaza
No. 8, Lebuh Farquhar
10200 Penang, Malaysia
Stamp
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Corporate Information
Chairman Statement
Managing Director’s Review Of Operations
Board Of Directors
Group Financial Highlights
Group Structure & Activities
Corporate Social Responsibility
Statement On Corporate Governance
Audit Committee
Statement On Internal Control
Other Information Required By The Listing Requirements Of Bursa Malaysia Securities Behad
Statement Of The Directors’ Responsibilities In Relation To The Financial Statements
Financial Statements
List Of Properties
Analysis Of Shareholdings
Notice Of Annual General Meeting
Statement Accompanying The Notice Of Annual General Meeting
Proxy Form
Contents
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NTPM HOLDINGS BERHAD (384662-U)
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NTPM HOLDINGS BERHAD (384662-U)
启顺造纸业有限公司(Incorporated in Malaysia)
Annual Report 2009
BACK COVER FRONT COVER
J043/NTPM ANNUAL REPORT/0509C M Y K