Table of Contents 1 148

Frontken Berhad Annual Report 2018

ANNUAL REPORT 2018 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 14
Board Of Directors’ Profile 16
Senior Management’s Profile 19
Sustainability Report 21
Statement Of Directors’ Responsibilities 24
Corporate Governance Overview Statement 25
Statement On Risk Management And Internal Control 32
Audit Committee Report 38
Additional Disclosure 41
FINANCIAL STATEMENTS 42
Directors’ Report 43
Independent Auditors’ Report 47
Statements Of Profit Or Loss And Other Comprehensive Income 51
Statements Of Financial Position 52
Statements Of Changes In Equity 54
Statements Of Cash Flows 57
Notes To The Financial Statements 59
1. GENERAL INFORMATION 59
2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS 59
3. SIGNIFICANT ACCOUNTING POLICIES 60
4. OPERATING SEGMENTS 76
5. REVENUE 81
6. FINANCE COSTS 82
7. PROFIT BEFORE TAX 82
8. INCOME TAX EXPENSE 84
9. EARNINGS PER SHARE 86
10. PROPERTY, PLANT AND EQUIPMENT 87
11. INVESTMENTS IN SUBSIDIARIES 93
12. INVESTMENT IN AN ASSOCIATE 97
13. GOODWILL ON CONSOLIDATION 99
14. DEFERRED TAX ASSETS/LIABILITIES 100
15. FIXED DEPOSITS WITH LICENSED BANKS 101
16. INVENTORIES 101
17. TRADE RECEIVABLES, OTHER RECEIVABLES, DEPOSITS AND PREPAID EXPENSES 101
18. AMOUNTS OWING BY/TO SUBSIDIARIES 103
19. SHORT-TERM INVESTMENTS 104
20. SHARE CAPITAL 104
21. RESERVES 105
22. TERM LOANS 106
23. HIRE PURCHASE PAYABLES 107
24. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES 107
25. BANK BORROWINGS 113
26. DIVIDENDS 113
27. FINANCIAL INSTRUMENTS 114
28. COMMITMENTS 130
29. CASH FLOW INFORMATION 131
30. FOREIGN EXCHANGE RATES 133
Statement By Directors 134
List Of Properties 135
Shareholding Statistics 138
Notice Of Annual General Meeting 140
PROXY FORM 146

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