Table of Contents 1 138

Frontken Berhad Annual Report 2017

ANNUAL REPORT 2017 1
CONTENTS 2
Corporate Information 3
Group Corporate Structure 4
Our Vision, Mission & Profile 5
Our Services 6
Financial Highlights 7
Chairman’s Message 9
Financial Review 13
Board Of Directors’ Profile 15
Senior Management’s Profile 18
Sustainability Report 21
Statement Of Directors’ Responsibilities 23
Corporate Governance Overview Statement 24
Statement On Risk Management And Internal Control 31
Audit Committee Report 35
Additional Disclosure 38
CONTENTS (Financial Statements) 39
Directors’ Report 40
Independent Auditors’ Report 44
Statements Of Profit Or Loss And Other Comprehensive Income 47
Statements Of Financial Position 48
Statements Of Changes In Equity 50
Statements Of Cash Flows 53
Notes To The Financial Statements 56
1. GENERAL INFORMATION 56
2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS 56
3. SIGNIFICANT ACCOUNTING POLICIES 58
4. OPERATING SEGMENTS 72
5. REVENUE 77
6. FINANCE COSTS 78
7. PROFIT BEFORE TAX 78
8. INCOME TAX EXPENSE 80
9. EARNINGS PER SHARE 82
10. PROPERTY, PLANT AND EQUIPMENT 83
11. INVESTMENTS IN SUBSIDIARIES 89
12. INVESTMENT IN AN ASSOCIATE 94
13. GOODWILL ON CONSOLIDATION 95
14. DEFERRED TAX ASSETS/LIABILITIES 96
15. FIXED DEPOSITS WITH LICENSED BANKS 97
16. INVENTORIES 97
17. TRADE RECEIVABLES, OTHER RECEIVABLES, DEPOSITS AND PREPAID EXPENSES 98
18. AMOUNTS OWING BY/TO SUBSIDIARIES 99
19. SHORT-TERM INVESTMENTS 100
20. SHARE CAPITAL 100
21. RESERVES 101
22. TERM LOANS 102
23. HIRE PURCHASE PAYABLES 103
24. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES 103
25. BANK BORROWINGS 109
26. DIVIDEND 110
27. FINANCIAL INSTRUMENTS 110
28. COMMITMENTS 122
29. CASH FLOW INFORMATION 123
30. SIGNIFICANT EVENT DURING THE FINANCIAL YEAR 124
31. FOREIGN EXCHANGE RATES 124
Statement By Directors 125
Declaration By The Officer 125
List Of Properties 126
Shareholding Statistics 129
Notice Of Annual General Meeting 131
PROXY FORM 136

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