| 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 |