DESTINI Annual Report 2018

Risk Mitigation At Destini, the Board and its Management is cognisant of its various financial, operational and business risks. The Group has implemented various measures in line with its risk management framework and internal controls to mitigate these risks. To this end, a risk management working committee has been established which consist of professionals from all levels of the Group. The committee is tasked with developing a sound risk management framework and internal control policies to safeguard the interests of all stakeholders. The framework is intended to cover all aspects of risks relating to finance, operations and compliance in adherence to international best practices andMS ISO 31000 (2010), being theMalaysian Standard on risk management. With the strategic direction that has been mapped out and the risk mitigation policies in place, Destini is confident of ensuring the long-term sustainability of its businesses. Financial Review Destini remains prudent in maintaining a sound financial position that enables the Group to execute its strategic objectives while creating value to its businesses in the coming years. For its financial year ended 31 December 2018 (“FY2018”) Destini’s PATNCI slid to RM1.77 million from RM28.85 million in FY2017. The decrease in PATNCI was on the back of a 39.31% slide in revenue of RM418.04 million in FY2018 from RM683.35 million the year before. During the year in review, Destini’s decrease in earnings were as a result of lower recognition of revenue and profits from the supply of NGPC to the MMEA with this contract being at the tail-end of its tenure. Additionally, several contracts had to be rescheduled due to a change in Government policies. These changes in schedule were mutually agreed upon between the Group and the Government. As such, Destini was unable to recognise the revenue from these contracts. Furthermore, several contracts that Destini secured during the year in review will only commence in the following year. The Group is confident of recognising revenue from the contracts above in 2019. DESTINI BERHAD ANNUAL REPORT 2018 43