Table of Contents 1 236

MSM Malaysia Holdings Berhad Annual Report 2019

ANNUAL REPORT 2019 1
ABOUT THIS REPORT 2
INSIDE THIS REPORT 4
CHAIRMAN’S STATEMENT 6
DELIVERING VALUE 10
SIX CAPITALS 10
STRATEGIC PERFORMANCE 11
SHAPING MATERIAL MATTERS 12
LINKING THE CAPITALS & MATERIAL MATTERSTO STRATEGY, SUSTAINABILITY & RISKS 14
MSM OVERVIEW 16
CORPORATE PROFILES 16
CORPORATE MILESTONES 17
CORPORATE STRUCTURE 18
ORGANISATIONAL STRUCTURE 19
CORPORATE INFORMATION 20
KEY MOMENTS 21
AWARDS & CERTIFICATIONS 22
MANAGEMENT DISCUSSION & ANALYSIS 23
STRATEGIC REVIEW 23
GROUP CHIEF EXECUTIVE OFFICER REVIEW 23
MSM STRATEGY 26
KEY RISKS & MITIGATIONS 28
STAKEHOLDERS ENGAGEMENT 30
GLOBAL PRESENCE 31
MARKET LANDSCAPE 32
GROUP FINANCIAL REVIEW 33
BUSINESS REVIEW 35
RAW SUGAR SOURCING & PROCUREMENT 35
RAW SUGAR REFINING 36
SALES & MARKETING 38
SUPPLY CHAIN MANAGEMENT & DISTRIBUTION 40
PLANTATION 42
GROUP FINANCIAL REPORT 43
5-YEAR FINANCIAL SUMMARY 43
STATEMENT OF FINANCIAL POSITION 44
QUARTERLY FINANCIAL PERFORMANCE 45
STATEMENT OF VALUE ADDED 45
SEGMENTAL ANALYSIS 46
SALES ANALYSIS 47
INVESTOR RELATIONS 48
FINANCIAL CALENDAR 49
SUSTAINABILITY REPORT 50
OUR SWEET EES JOURNEY 50
ECONOMIC SUSTAINABILITY 51
ENVIRONMENTAL SUSTAINABILITY 53
SOCIAL SUSTAINABILITY 56
EFFECTIVE LEADERSHIP 65
PROFILE OF DIRECTORS 65
PROFILE OF COMPANY SECRETARY 68
PROFILE OF SENIOR MANAGEMENT 69
CORPORATE GOVERNANCE 72
CORPORATE GOVERNANCE OVERVIEW STATEMENT 72
AUDIT COMMITTEE REPORT 85
NOMINATION AND REMUNERATION COMMITTEE REPORT 91
ADDITIONAL COMPLIANCE INFORMATION 97
CORPORATE INTEGRITY 97
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL 99
INTERNAL POLICIES, PROCEDURES AND GUIDELINES 105
BUSINESS CONTINUITY MANAGEMENT 106
FINANCIAL STATEMENTS 107
STATEMENT ON DIRECTORS’ RESPONSIBILITIES 107
DIRECTORS’ REPORT 108
STATEMENT BY DIRECTORS 112
INDEPENDENT AUDITORS’ REPORT 113
STATEMENTS OF COMPREHENSIVE INCOME 118
STATEMENTS OF FINANCIAL POSITION 120
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 122
COMPANY STATEMENT OF CHANGES IN EQUITY 123
STATEMENTS OF CASH FLOWS 124
NOTES TO THE FINANCIAL STATEMENTS 129
1. GENERAL INFORMATION 129
2. BASIS OF PREPARATION 129
3. SIGNIFICANT ACCOUNTING POLICIES 130
4. FINANCIAL RISK MANAGEMENT 149
5. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS 159
6. REVENUE – CONTINUING OPERATIONS 160
7. OTHER OPERATING INCOME – CONTINUING OPERATIONS 161
8. IMPAIRMENT OF RECEIVABLES/(REVERSAL OF IMPAIRMENT OF RECEIVABLES) – CONTINUING OPERATIONS 161
9. OTHER GAINS/(LOSSES) – NET – CONTINUING OPERATIONS 162
10. FINANCE INCOME AND COSTS – CONTINUING OPERATIONS 162
11. (LOSS)/PROFIT BEFORE ZAKAT AND TAXATION – CONTINUING OPERATIONS 163
12. DIRECTORS’ REMUNERATION – CONTINUING OPERATIONS 164
13. ZAKAT – CONTINIUING OPERATION 165
14. TAXATION – CONTINUING OPERATIONS 166
15. (LOSS)/EARNINGS PER SHARE 167
16. LOSS FROM DISCONTINUING OPERATION 168
17. PROPERTY, PLANT AND EQUIPMENT 169
18. RIGHT-OF-USE ASSETS 178
19. INTANGIBLE ASSETS 181
20. INVESTMENTS IN SUBSIDIARIES 184
21. LOANS DUE FROM SUBSIDIARIES 186
22. LEASE RECEIVABLES 188
23. RECEIVABLES 189
24. INVENTORIES 193
25. AMOUNTS DUE FROM/(TO) SUBSIDIARIES, OTHER RELATED COMPANIES, ULTIMATE HOLDING COMPANY AND FELDA 194
26. LOANS DUE TO A SUBSIDIARY AND TO A RELATED COMPANY 196
27. DERIVATIVE FINANCIAL INSTRUMENTS 196
28. CASH AND CASH EQUIVALENTS 197
29. ASSETS HELD FOR SALE 199
30. SHARE CAPITAL 200
31. RESERVES 200
32. DEFERRED TAX LIABILITIES/(ASSETS) 201
33. PAYABLES 203
34. BORROWINGS 204
35. SIGNIFICANT RELATED PARTY TRANSACTIONS 207
36. PURCHASE OF PROPERTY, PLANT AND EQUIPMENT 212
37. LEASE LIABILITIES 213
38. CAPITAL COMMITMENTS 213
39. FINANCIAL INSTRUMENTS 214
40. SEGMENT INFORMATION 217
41. EFFECTS OF CHANGES IN ACCOUNTING POLICY 220
42. EVENTS AFTER THE REPORTING DATE 226
43. APPROVAL OF FINANCIAL STATEMENTS 226
ADDITIONAL INFORMATION 227
ANALYSIS OF SHAREHOLDINGS 227
SUMMARY OF PROPERTIES OWNED 230
SUMMARY OF PROPERTIES LEASED 233
LIST OF TOP 10 PROPERTIES OWNED 234
GROUP CORPORATE DIRECTORY 235

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