CORPORATE STATEMENT PENYATA KORPORAT

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4 CORPORATE STATEMENT PENYATA KORPORAT The history of our existence also reflects a series of challenging change events that our group companies have been able to turn into opportunities and created success from. We like to think that we have the traits of a learning organisation that is not intimidated by new challenges and prospect of hard work and take success with responsibility and humility. Sejarah kehadiran kita juga menunjukkan beberapa peristiwa perubahan yang mencabar yang mana telah dapat ditukar menjadi peluang dan darinya terhasil kejayaan. Kami berasa kami mempunyai ciri-ciri sebuah organisasi yang sentiasa belajar dan tidak merasa terancam oleh cabaran-cabaran baru dan keperluan untuk bekerja keras dan menerima kejayaan dengan rasa tanggungjawab dan rendah diri. 2 I NCB HOLDINGS BHD ANNUAL REPORT 2011

5 CORPORATE STATEMENT PENYATA KORPORAT NCB HOLDINGS BHD ANNUAL REPORT 2011 I 3

6 NOTICE OF ANNUAL GENERAL MEETING NOTICE IS HEREBY GIVEN that the THIRTEENTH ANNUAL GENERAL MEETING OF NCB HOLDINGS BHD will be held at Kristal Ballroom One, 1st Floor, West Wing, Hilton Petaling Jaya, No. 2, Jalan Barat, Petaling Jaya, Selangor Darul Ehsan on Monday, 2 April 2012 at a.m. for the following purposes : - AS ORDINARY BUSINESS 1. To receive and adopt the Directors Report and Audited Accounts for the year ended 31 December 2011 and the Auditor s Report thereon. Resolution 1 2. To approve the payment of single tier final dividend of 10.0 sen per share. Resolution 2 3. To approve the Directors Fees amounting to RM900,000 for the financial year ended 31 December Resolution 3 4. To re-elect the following Directors who retire under Articles 84 of the Company s Articles of Association : - Dato Zuraidah binti Atan Resolution 4 Syed Agel bin Syed Salim Resolution 5 5. To re-appoint the following Directors who retire pursuant to Section 129 of the Companies Act, 1965 to hold office until the conclusion of the next Annual General Meeting : - Tun Ahmad Sarji bin Abdul Hamid Resolution 6 Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Haji Wan Yaacob Resolution 7 Datuk Abdul Malek bin Abdul Aziz Resolution 8 6. To re-appoint Messrs. Ernst & Young as auditors of the Company and to authorise the directors to fix their remuneration. Resolution 9 AS SPECIAL BUSINESS To consider and, if thought fit, to pass the following resolution : - 7. Proposed renewal of existing shareholders mandate for recurrent related party transactions of a revenue or trading nature and proposed new shareholders mandate for additional recurrent related party transactions of a revenue or trading nature ( Proposal ). That, the mandate approved by the shareholders at the Twelfth Annual General Meeting of the Company held on the 28 March 2011 pursuant to paragraph of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, authorising the Company and its subsidiaries ( NCB Group ) to enter into the existing recurrent related party transactions and new additional recurrent related party transaction of a revenue or trading nature as set out in Section 2.3 of the Circular to shareholders dated 9 March 2012 with the related parties mentioned therein, which are necessary for the NCB Group s day-to-day operations, be and is hereby renewed and granted as set out in Section 2.3 of the Circular to shareholders dated 9 March 2012 :- a) The transactions are in the ordinary course of business and are on terms which are not more favourable to the related party than those generally available to the public and are not to the detriment of the minority shareholders of the Company; and b) The disclosures will be made in the Annual Report of the breakdown of the aggregate value of recurrent related party transactions conducted pursuant to the Proposal during the financial year based on the type of recurrent related party transactions made, the names of the related parties involved in each type of recurrent related party transactions and their relationship with the Company where: Resolution 10 4 I NCB HOLDINGS BHD ANNUAL REPORT 2011

7 NOTICE OF ANNUAL GENERAL MEETING i) The consideration, value of the assets, capital outlay or costs of the aggregated transactions is equal to or exceeds RM1,000,000; or ii) Any one of the percentage ratios of such aggregated transactions is equal to or exceeds 1%; whichever is the higher. AND THAT the authority granted by such mandate shall continue to be in force until : - a) the conclusion of the next Annual General Meeting following the forthcoming 13th Annual General Meeting at which the ordinary resolution for the Proposal is passed, at which time it will lapse unless by a resolution passed at a general meeting, the authority is renewed; b) the expiration of the period within which the next Annual General Meeting is to be held pursuant to Section 143 (1) of the Companies Act, 1965 (but shall not extend to such extension as may be allowed pursuant to Section 143 (2) of the Companies Act, 1965); or c) the Proposal is revoked or varied by resolution passed by the shareholders in a general meeting, whichever is the earlier. AND THAT the Directors of the Company be and are hereby authorised to complete and do such acts and things (including executing such documents as may be required) to give effect to the transactions contemplated and authorised by this resolution. AND THAT the estimates given on the recurrent related party transactions specified in Section of the Circular to shareholders dated 9 March 2012 being provisional in nature, the Directors of the Company be and are hereby authorised to agree to the actual amount or amounts thereof provided always that such amount or amounts comply with the review procedures set out in Section 2.4 of the Circular to shareholders dated 9 March To transact any other business for which due notice shall have been given in accordance with the Companies Act, NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENT NOTICE IS ALSO HEREBY GIVEN that the final dividend, if approved, will be paid on 8 May The entitlement date shall be fixed on 18 April 2012 and a Depositor shall qualify for entitlement only in respect of : - a) Shares transferred into the Depositor s Securities Account before 4.00 p.m. on 18 April 2012 in respect of ordinary transfer; and b) Shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of the Bursa Malaysia Securities Berhad. EXPLANATORY NOTES ON SPECIAL BUSINESS Resolution 10 - Proposed renewal of existing shareholders mandate for recurrent related party transactions of a revenue or trading nature and proposed new shareholders mandate for additional recurrent related party transactions of a revenue or trading nature ( Proposal ). The related party transactions entered or to be entered into by the NCB Group are all in the ordinary course of business. They are recurring transactions of a revenue or trading nature which are likely to occur with some degree of frequency and arise at any time and from time to time. These transactions may be constrained by the time-sensitive nature and confidentiality of such transactions, and it may be impractical to seek shareholders approval on a case-by-case basis before entering into such related party transactions. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 5

8 NOTICE OF ANNUAL GENERAL MEETING As such the Board is seeking an approval and renewal of shareholders mandate pursuant to Part E, Paragraph of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad for the related party transactions described in Section 2.3 of the Circular to shareholders dated 9 March 2012 as well as new mandate for additional recurrent related party transactions of a revenue or trading nature to allow the NCB Group to enter into such recurrent related party transactions made on an arm s length basis and on normal commercial terms not more favourable to the related parties than those generally available to the public and which will not be to the detriment of the minority shareholders of the Company. Further details on the Proposal can be obtained from the Circular to shareholders dated 9 March By obtaining the shareholders mandate and the renewal of the same on an annual basis, the necessity to convene separate general meetings from time to time to seek shareholders approval as and when such recurrent related party transactions occur would not arise. This would reduce substantial administrative time, inconvenience and expenses associated with the convening of such meetings, without compromising the corporate objective of the NCB Group or adversely affecting the business opportunities available to the NCB Group. By order of the Board JOHN SELVARAJ JAMES (MIA 18279) Company Secretary 9 March 2012 Notes: 1. A member of the Company entitled to attend and vote is entitled to appoint a proxy to attend and vote in his stead. A proxy need not be a member of the Company. 2. Where a member is an authorized nominee as defined under the Security Industry (Central Depository) Act, 1991, it may appoint at least one proxy in respect of each security account it holds with deposited security. 3. The instrument appointing a proxy in the case of an individual shall be signed by the appointer or his attorney duly authorised in writing and in the case of a corporation, the instrument appointing a proxy must be under seal or under the hand of an officer or attorney duly authorized. 4. The instrument appointing a proxy must be deposited at the Registered Office of the Company at Headquarter s Building, Jalan Pelabuhan, North Port, Pelabuhan Klang, Selangor Darul Ehsan, Malaysia, not less than 48 hours before the time appointed for holding the meeting and any adjournment thereof. 5. Only members whose names appear in the Record of Depositors as at 14 February 2012 will be entitled to attend and vote at the meeting. 6 I NCB HOLDINGS BHD ANNUAL REPORT 2011

9 NOTIS MESYUARAT AGUNG TAHUNAN DENGAN INI DIBERI NOTIS bahawa MESYUARAT AGUNG TAHUNAN YANG KE TIGA BELAS NCB HOLDINGS BHD akan diadakan di Kristal Ballroom One, Tingkat Satu, West Wing, Hilton Petaling Jaya, No. 2, Jalan Barat, Petaling Jaya, Selangor Darul Ehsan pada hari Isnin, 2 April 2012 pada jam pagi untuk tujuan-tujuan berikut : - SEBAGAI URUSAN BIASA 1. Untuk menerima dan meluluskan Laporan Pengarah dan Penyata Kewangan yang telah diaudit bagi tahun berakhir 31 Disember 2011 dan Laporan Juruaudit yang dilampirkan. Resolusi 1 2. Untuk meluluskan pembayaran dividen akhir satu peringkat sebanyak 10.0 sen sesaham. Resolusi 2 3. Untuk meluluskan pembayaran yuran Pengarah-Pengarah berjumlah RM900,000 untuk tahun berakhir 31 Disember Resolusi 3 4. Untuk melantik semula Pengarah-Pengarah berikut, yang bersara menurut Artikel 84 dibawah peruntukan Tataurusan Syarikat : - Dato Zuraidah binti Atan Resolusi 4 Syed Agel bin Syed Salim Resolusi 5 5. Untuk melantik semula Pengarah berikut yang bersara menurut Seksyen 129 Akta Syarikat, 1965 untuk memegang jawatan sehingga berakhir Mesyuarat Agung Tahunan yang berikutnya : - Tun Ahmad Sarji bin Abdul Hamid Resolusi 6 Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Haji Wan Yaacob Resolusi 7 Datuk Abdul Malek bin Abdul Aziz Resolusi 8 6. Untuk melantik semula Tetuan Ernst & Young sebagai Juruaudit Syarikat bagi tahun berikutnya dan memberi kuasa kepada Pengarah-Pengarah untuk menetapkan imbuhan mereka. Resolusi 9 SEBAGAI URUSAN KHAS Untuk mempertimbangkan, dan jika didapati sesuai, untuk meluluskan resolusi berikut : - 7. Melanjutkan mandat pemegang saham yang dicadangkan bagi urusniaga pihak berkait berulang yang bersifat hasil atau perniagaan dan mandat baru pemegang saham yang dicadangkan bagi urusniaga pihak berkait berulang tambahan yang bersifat hasil atau perniagaan ( Cadangan ) Bahawa, dengan ini, kuasa diperbaharui untuk mandat yang telah diluluskan oleh pemegang saham di Mesyuarat Agung Tahunan Ke-Dua Belas Syarikat yang diadakan pada 28 Mac 2011, selaras dengan perenggan Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad yang memberi kuasa kepada Syarikat dan subsidiari-subsidiari Syarikat ( Kumpulan NCB ) untuk menjalankan urusniaga pihak berkait berulang yang bersifat hasil atau perniagaan dan memohon mandat baru untuk urusniaga baru pihak berkait berulang yang bersifat hasil atau perniagaan sepertimana yang dinyatakan dalam Seksyen 2.3 Pekeliling kepada pemegang saham bertarikh 9 Mac 2012 dengan pihak berkait yang dinyatakan, dan diperlukan untuk operasi harian Kumpulan NCB, adalah dengan ini diperbaharui dan diluluskan sepertimana yang dinyatakan dalam Seksyen 2.3 Pekeliling kepada pemegang saham bertarikh 9 Mac 2012 : - a) Urusniaga berkenaan adalah dalam urusan biasa perniagaan dan atas syarat yang tidak lebih menguntungkan pihak-pihak berkait berbanding dengan apa yang biasanya diperolehi oleh orang awam dan tidak mengakibatkan kesan negatif kepada pemegang saham minoriti Syarikat; dan Resolusi 10 NCB HOLDINGS BHD ANNUAL REPORT 2011 I 7

10 NOTIS MESYUARAT AGUNG TAHUNAN b) Pengisytiharan dibuat dalam Laporan Tahunan mengenai huraian nilai agregat urusniaga pihak berkait berulang yang dijalankan selaras dengan Cadangan untuk tahun kewangan semasa berdasarkan jenis urusniaga berulang yang dibuat, nama pihak berkait yang terlibat dalam setiap jenis urusniaga berulang yang dibuat dan pertalian mereka dengan Syarikat dimana : - i) Perolehan, nilai aset, modal perbelanjaan atau jumlah kos urusniaga berjumlah RM1,000,000 atau lebih; atau ii) Yang mana satu peratus nisbah bagi transaksi berjumlah 1% atau lebih; yang mana lebih tinggi. DAN BAHAWA kuasa yang diberikan oleh mandat ini akan berkuatkuasa sehingga : - a) berakhirnya Mesyuarat Agung Tahunan yang berikutnya selepas Mesyuarat Agung Tahunan Syarikat Ke-13 yang akan datang dimana resolusi biasa untuk Cadangan akan tamat, melainkan kuasa diperbaharui melalui resolusi yang diluluskan di mesyuarat am; b) tempoh tamat bagi mengadakan Mesyuarat Agung Tahunan Syarikat yang berikutnya seperti yang diperuntukkan dalam Seksyen 143 (1) Akta Syarikat, 1965 (tetapi tidak akan melebihi tempoh tambahan mengikut Seksyen 143 (2) Akta Syarikat, 1965); atau c) Cadangan ini dibatalkan atau diubah melalui resolusi yang diluluskan oleh pemegangpemegang saham dalam mesyuarat am, yang mana lebih awal. DAN BAHAWA Pengarah-Pengarah Syarikat adalah dan dengan ini diberikan kuasa untuk menyempurnakan dan melakukan apa jua tindakan dan perkara (termasuk memeteraikan dokumen sedemikian seperti yang diperlukan) untuk melaksanakan urusniaga-urusniaga yang dirancang dan dibenarkan oleh resolusi ini. DAN BAHAWA anggaran yang diberikan untuk urusniaga pihak berkait berulang seperti yang dinyatakan didalam Seksyen Pekeliling kepada pemegang saham bertarikh 9 Mac 2012 adalah anggaran pada umumnya, dan Pengarah-Pengarah Syarikat adalah dengan ini diberikan kuasa untuk mempersetujui jumlah sebenar urusniaga dengan syarat jumlah tersebut adalah mengikut prosedur-prosedur semakan seperti yang dinyatakan di dalam Seksyen 2.4 Pekeliling kepada pemegang saham bertarikh 9 Mac Menjalankan sebarang urusan lain yang mana notis yang sewajarnya telah diberikan menurut Akta Syarikat, NOTIS KELAYAKAN DAN PEMBAYARAN DIVIDEN NOTIS JUGA DIBERI BAHAWA jika diluluskan dividen akhir akan dibayar pada 8 Mei Tarikh kelayakan untuk penerimaan dividen adalah ditetapkan pada 18 April 2012 dan pendeposit hanya berhak untuk penerimaan dividen berhubung dengan : - a) Saham-saham yang dipindahkan ke dalam Akaun Sekuriti Pendeposit pada atau sebelum jam 4.00 petang pada 18 April 2012 untuk pindahmilik biasa; dan b) Saham-saham yang dibeli dari Bursa Malaysia Securities Berhad berdasarkan kelayakan menurut Peraturan-peraturan Bursa Malaysia Securities Berhad. NOTA PENJELASAN MENGENAI URUSAN KHAS Resolusi 10 - Melanjutkan mandat pemegang saham yang dicadangkan bagi urusniaga pihak berkait berulang yang bersifat hasil atau perniagaan dan mandat baru pemegang saham yang dicadangkan bagi urusniaga pihak berkait berulang tambahan yang bersifat hasil atau perniagaan ( Cadangan ). Urusniaga pihak berkait yang dijalankan atau akan dijalankan oleh Kumpulan NCB adalah kesemuanya berkaitan dengan urusan biasa perniagaan. Ianya merupakan urusniaga berulang bersifat hasil atau perniagaan yang dijangka akan berlaku dengan bentuk dan kekerapan dan timbul pada bila-bila masa dan dari semasa ke semasa. Urusniaga ini dihadkan oleh 8 I NCB HOLDINGS BHD ANNUAL REPORT 2011

11 NOTIS MESYUARAT AGUNG TAHUNAN sifatnya yang sensitif kepada masa dan sifat sulit urusniaga sedemikian, dan mungkin menjadi tidak praktikal untuk mendapatkan kelulusan pemegang saham setiap kali timbulnya keperluan untuk menjalankan urusniaga sedemikian. Oleh yang demikian, Lembaga Pengarah memohon kelulusan dan lanjutan bagi mandat pemegang saham selaras dengan Bahagian E, Perenggan Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad bagi urusniaga pihak berkait seperti yang diterangkan dalam Seksyen 2.3 Pekeliling bertarikh 9 Mac 2012 dan juga memohon mandat baru untuk urusniaga baru pihak berkait berulang yang bersifat hasil atau perniagaan dan memohon mandat baru untuk urusniaga baru pihak berkait berulang yang bersifat hasil atau perniagaan untuk membolehkan Kumpulan NCB melaksanakan urusniaga pihak berkait sedemikian yang dibuat atas dasar terma-terma pasaran, atas terma-terma komersil biasa dan atas terma-terma tidak lebih menguntungkan kepada pihak yang berkait berbanding dengan apa yang biasanya diperolehi oleh orang awam dan tidak mengakibatkan kesan negatif kepada pemegang saham minoriti Syarikat. Penjelasan lanjut mengenai Cadangan boleh didapati dalam Pekeliling kepada pemegang saham bertarikh 9 Mac Dengan memperolehi mandat pemegang saham yang dicadangkan dan lanjutan mandat sedemikian atas dasar tahunan, keperluan untuk memanggil mesyuarat agung berasingan dari semasa ke semasa untuk memohon kelulusan pemegang saham setiap kali berlakunya urusniaga pihak berkait berulang tidak akan timbul. Ini akan menjimatkan masa pentadbiran, kesukaran dan perbelanjaan berkait dengan urusan memanggil mesyuarat sedemikian, tanpa bercanggah dengan objektif korporat Kumpulan NCB atau menimbulkan kesan negatif keatas peluang perniagaan yang terbuka kepada Kumpulan NCB. Dengan perintah Lembaga JOHN SELVARAJ JAMES (MIA 18279) Setiausaha Syarikat 9 Mac 2012 Nota: 1. Seorang ahli yang berhak hadir dan mengundi adalah berhak melantik seorang proksi untuk hadir dan mengundi bagi pihaknya. Seorang proksi tidak semestinya ahli Syarikat. 2. Dimana ahli adalah seorang penama yang diiktiraf mengikut Akta Industri Sekuriti, 1991, beliau boleh melantik seorang proksi bagi setiap akaun sekuriti yang dipegang dengan deposit sekuriti. 3. Surat perlantikan proksi dari seorang individu mestilah ditandatangani oleh pelantik atau wakilnya yang telah dilantik dengan secara bertulis, dan surat perlantikan proksi dari sesebuah perbadanan mestilah disempurnakan di bawah meterai Syarikat ditandatangani oleh pegawai yang diberikuasa berbuat demikian. 4. Borang proksi yang telah disempurnakan mestilah dihantar kepada Pejabat Berdaftar Syarikat, Headquarter s Building, Jalan Pelabuhan, North Port, Pelabuhan Klang, Selangor Darul Ehsan, Malaysia, tidak lewat dari 48 jam sebelum waktu Mesyuarat yang ditetapkan atau waktu penangguhannya. 5. Hanya ahli-ahli yang nama mereka terdapat dalam Rekod Pendeposit pada 14 Februari 2012 akan layak untuk menghadiri dan mengundi pada mesyuarat itu. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 9

12 FINANCIAL CALENDAR KALENDAR KEWANGAN 2011 REVENUE RM928.0 m PRofit BEfoRE taxation RM190.1 m DiViDEND EaRNiNgs PER share 76.0 sen sen 10 I NCB HOLDINGS BHD ANNUAL REPORT 2011

13 FINANCIAL CALENDAR KALENDAR KEWANGAN FINANCIAL RESULTS ANNOUNCEMENTS PENGUMUMAN KEPUTUSAN KEWANGAN First Quarter / Suku Tahun Pertama 27 April / April 2011 Second Quarter / Suku Tahun Kedua 22 August / Ogos 2011 Third Quarter / Suku Tahun Ketiga 24 October / Oktober 2011 Fourth Quarter / Suku Tahun Keempat 21 February / Februari 2012 DIVIDEND DIVIDEN Special Interim / Khas Awal Announcement / Pengumuman 27 June / Jun 2011 Entitlement / Kelayakan 15 July / Julai 2011 Payment / Bayaran 2 August / Ogos 2011 Interim / Awal Announcement / Pengumuman 22 August / Ogos 2011 Proposed Final Akhir dicadangkan Announcement / Pengumuman 21 February / Februari 2012 Entitlement / Kelayakan 18 April / April 2012 Payment / Bayaran 8 May / Mei 2012 GENERAL MEETING MESYUARAT AGUNG Annual / Tahunan 2 April / April 2012 Entitlement / Kelayakan 28 September / September 2011 Payment / Bayaran 12 October / Oktober 2011 NCB HOLDINGS BHD ANNUAL REPORT 2011 I 11

14 FINANCIAL HIGHLIGHTS OF THE NCB GROUP AND SUBSIDIARIES PETUNJUK PENTING KEWANGAN KUMPULAN NCB DAN SUBSIDIARI NCB HOLDINGS BHD GROUP / KUMPULAN NCB HOLDINGS BHD , , , , , , , , , ,153 Revenue Hasil (RM 000) Profit Before Taxation Keuntungan Sebelum Cukai (RM 000) Earnings Per Share Pendapatan Sesaham (Sen) Net Tangible Assets Per Share Harta Ketara Bersih Sesaham (RM) 12 I NCB HOLDINGS BHD ANNUAL REPORT 2011

15 FINANCIAL HIGHLIGHTS OF THE NCB GROUP AND SUBSIDIARIES PETUNJUK PENTING KEWANGAN KUMPULAN NCB DAN SUBSIDIARI NCB HOLDINGS BHD GROUP / KUMPULAN NCB HOLDINGS BHD RM'000 RM'000 RM'000 RM'000 RM'000 Revenue Hasil 928, , , , ,517 Profit before taxation Keuntungan sebelum cukai 190, , , , ,123 Profit after taxation Keuntungan selepas cukai 158, , , , ,307 Paid-up capital Modal berbayar 470, , , , ,253 Total shareholders fund Dana pemegang saham 1,631,713 1,816,856 1,760,674 1,792,036 1,729,406 Dividend (net) Dividen (bersih) 79,942 59,957 59,957 59,628 58,922 Dividend rate (%) - Gross Kadar Dividen (%) - Kasar Special Dividend (net) Dividen Khas (bersih) 208,087 70,538 38,796 28,215 27,836 Special Dividend rate (%) - Gross Kadar Dividen Khas (%) - Kasar Net tangible asset per share (RM) Harta ketara bersih sesaham (RM) Closing price per share as at 31 December (RM) Harga tutup sesaham pada 31 Disember (RM) Retained earnings Keuntungan terkumpul Return on shareholders equity (%) Pulangan atas ekuiti para pemegang saham (%) Earnings per share (sen) Pendapatan sesaham (sen) ,740 1,144,883 1,088,701 1,120,063 1,058, NCB HOLDINGS BHD ANNUAL REPORT 2011 I 13

16 FINANCIAL HIGHLIGHTS OF THE NCB GROUP AND SUBSIDIARIES PETUNJUK PENTING KEWANGAN KUMPULAN NCB DAN SUBSIDIARI NORTHPORT (MALAYSIA) BHD , , , , , , , , , ,747 Revenue Hasil (RM 000) Profit Before Taxation Keuntungan Sebelum Cukai (RM 000) KONTENA NASIONAL BERHAD , , , , , , , , , ,187 Revenue Hasil (RM 000) Profit Before Taxation Keuntungan Sebelum Cukai (RM 000) 14 I NCB HOLDINGS BHD ANNUAL REPORT 2011

17 FINANCIAL HIGHLIGHTS OF THE NCB GROUP AND SUBSIDIARIES PETUNJUK PENTING KEWANGAN KUMPULAN NCB DAN SUBSIDIARI NORTHPORT (MALAYSIA) BHD AND SUBSIDIARIES / NORTHPORT (MALAYSIA) BHD DAN SUBSIDIARI RM'000 RM'000 RM'000 RM'000 RM'000 Revenue Hasil 693, , , , ,325 Profit before taxation Keuntungan sebelum cukai 172, , , , ,335 Paid-up capital Modal berbayar 308, , , , ,530 Total shareholders fund Dana pemegang saham 1,120,983 1,048,350 1,008, , ,157 Dividend (net) Dividen (bersih) - 96,377 92, ,109 Dividend rate (%) - Gross Kadar Dividen (%) - Kasar Special Dividend (net) Dividen Khas (bersih) ,000 Special Dividend rate (%) - Gross Kadar Dividen Khas (%) - Kasar KONTENA NASIONAL BERHAD AND SUBSIDIARIES / KONTENA NASIONAL BERHAD DAN SUBSIDIARI RM'000 RM'000 RM'000 RM'000 RM'000 Revenue Hasil 234, , , , ,192 Profit before taxation Keuntungan sebelum cukai 8,187 1,407 9,721 3,971 12,093 Paid-up capital Modal berbayar 28,712 28,712 28,712 28,712 28,712 Total shareholders fund Dana pemegang saham 383, , , , ,975 Dividend (net) Dividen (bersih) ,354 Dividend rate (%) - Gross Kadar Dividen (%) - Kasar Special Dividend (net) Dividen Khas (bersih) ,002 Special Dividend rate (%) - Gross Kadar Dividen Khas (%) - Kasar NCB HOLDINGS BHD ANNUAL REPORT 2011 I 15

18 Development as symbolized by the array of physical shapes and structures needs to be complemented by ingrained fine values internalized by their occupants. Kemajuan yang dilambangkan oleh ragam bentuk dan struktur fizikal akan lengkap hanya dengan penghayatan nilai-nilai murni oleh warga penghuninya.

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20 CHAIRMAN S STATEMENT DEAR SHAREHOLDERS, ON BEHALF OF THE BOARD OF DIRECTORS, I AM PLEASED TO PRESENT THE ANNUAL REPORT AND THE AUDITED FINANCIAL STATEMENTS OF THE GROUP AND OF THE COMPANY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER CORPORATE HIGHLIGHTS Business Review During the year 2011, the overall container volume passing through Port Klang showed an increase with transhipment containers showing improved numbers. The port operating company in the Group managed to retain a good share of the market both in the imports/exports segment as well as transhipment traffic, consistent with the share of installed capacity in Port Klang under its control. The logistics business in the Group showed a strong growth compared with what it achieved last year. Strong overall earning performance was registered, attributable to the support of new revenue streams from the non-retail haulage sectors. Overall, the Group s revenue registered an increase of 4.5%. Financial Position For the financial year ended 31 December 2011, the Group recorded a turn-over of RM928.0 million, reflecting a 4.5% increase compared to RM887.9 million registered the previous year. However, the pre-tax profit for the Group stood at RM190.1 million, which is a decrease of 5.0% against last year s profit figure of RM200.1 million. Port operations recorded a profit before tax of RM172.7 million arising from a revenue of RM693.8 million, a decrease of 8.5% compared to year Logistics operation on the other hand recorded a profit before tax of RM8.2 million derived from a revenue of RM234.2 million, an increase of more than 100% compared to year I NCB HOLDINGS BHD ANNUAL REPORT 2011

21 CHAIRMAN S STATEMENT Dividend The Board of Directors recognises the need to work towards providing a stable return to shareholders for the confidence they have shown and the trust they place on the company. For the year 2011, the company has already paid an interim single tier dividend of 7.0 sen per ordinary share amounting to RM32.9 million on 12 October The Board has also utilised all the Section 108 tax credit available to enable the Company to declare a special interim dividend on 27 June 2011 of 59.0 sen per share less 25% tax amounting to RM208.1 million. This dividend was paid on 2 August At the 13th Annual General Meeting, the Board will be proposing a single tier final dividend of 10.0 sen per ordinary share, amounting to RM47.0 million. If approved, the dividend will be paid on 8 May This will bring the total dividend pay-out for year 2011 to RM288.0 million. OPERATIONAL PERFORMANCE General Overview Companies within the Group during the year 2011 managed their respective activities within a relatively weak but constantly changing business environment. Northport is approaching the end of its first lease tenure and has to deal with accelerated depreciation charges. This places greater demand on its cost management approach. Kontena Nasional, the logistics operator has attained commendable success in its effort at re-modelling its business approach and had created new streams of business and this helped broaden its revenue base and improved overall margin. Port Operation Within the two-player environment within Port Klang, Northport has been successful in fulfilling the demands of its customers while operating under conditions of high utilisation of its facilities and equipment. While there had been a slight decline in container throughput handled, the overall revenue level from its container and non-container NCB HOLDINGS BHD ANNUAL REPORT 2011 I 19

22 CHAIRMAN S STATEMENT businesses recorded an increase. Under its capacity enhancement programme, Northport has commenced its construction work on Berth 8A which will eventually be operated as Container Terminal 4 (CT4). This will enable the company to better position itself in the market and cater for the growth in customers business. The total number of containers handled by Port Klang during year 2011 was 9,603,926 TEUs, an increase of 8.25% compared with 8,871,745 TEUs in year Northport s share of this throughput was 3,199,852 TEUs. This represents a decrease of 3.2% compared with 3,305,764 TEUs recorded in 2010, a situation linked to the temporary cap in handling capacity which is currently being addressed through the CT4 project. The container mix at Northport stood at approximately 50% for both import and export containers. In volume terms, the total for inbound containers decreased by 1.7% from 1,698,328 TEUs in year 2010 to 1,669,239 TEUs in year Outbound containers handled also registered a decrease of 4.8% from 1,607,436 TEUs in 2010 to 1,530,613 TEUs in Of significant importance is the fact that out of the 3,515,050 TEUs of laden container traffic related to indigenous trade passing through Port Klang, 1,805,294 TEUs or 51.4% pass through facilities operated by Northport. This makes Northport the leading gateway for the country s indigenous trade. Transhipment volume handled by the port subsidiary during the year was 1,394,559 TEUs, higher by 13,165 TEUs or 0.95% compared with the year 2010 volume of 1,381,403 TEUs. Transhipment volume made up 48.6% of the total volume handled by Northport in year 2011, representing an increase of 6.9% compared with the previous year s level of 41.7%. Port Klang handled a total transhipment volume of 6,088,876 TEUs with the volume serviced by Northport contributing 22.9% towards this total. Northport s conventional cargo business recorded an increase of 7.5% from 7.21 million FWT in year 2010 to 7.75 FWT in year I NCB HOLDINGS BHD ANNUAL REPORT 2011

23 CHAIRMAN S STATEMENT Apart from handling the loading and unloading of containerised and non-containerised cargo, Northport also operates a range of warehouses and godowns within Northport and Southpoint as well as those held under its 100% subsidiary Northport Distripark Sdn Bhd. There is also a vehicle transit centre to cater for the needs of customers in the automotive sector. The warehousing and distribution service business carried out through these facilities, both by Northport as well as its tenants, also help in the generation of containerised cargo that eventually is routed through the container terminal facilities of Northport. Logistics Operations Kontena Nasional s efforts in broadening its business focus has shown tangible results this year with the company and its subsidiaries recording an increase in revenue of 14% to RM234.2 million from RM203.9 million a year earlier. Its group profit before tax came up to RM8.2 million. The increase in revenue was made possible through the generation of new business income through new activities by the company in the areas of warehousing, trucking, and project logistics service. The improved revenue was also contributed in part by the improved performance of the retail haulage division where the company has streamlined its fleet operations in a systematic way. The freight forwarding activity also improved its revenue level with strong support being provided by businesses of clients in the oil and gas sector. STRATEGY The strategy of Northport is to be an investment holding company that draws value through successful businesses undertaken by subsidiaries in the fields of port and logistics operations. The approach for running the business undertakings is strategically aligned towards enhancing shareholder value and creating the ability to consistently provide reasonable returns on investments for shareholders ,805, ,005, ,858,341 TEUs ,305, ,199,852 Northport s Container Throughput NCB HOLDINGS BHD ANNUAL REPORT 2011 I 21

24 CHAIRMAN S STATEMENT Port Operations During year 2011, Northport received approval in principle from the Government of Malaysia for the extension of its license and lease to operate Northport for 30 years and Southpoint for 21 years, from the date of expiry of the current lease and licence in The Board of Directors wishes to record its thanks to Government for this decision. Northport will continue to pursue a business plan that will put focus on the enhancement of capacity to meet the customers demand. As an important component of this, Northport has commenced the development of Wharf 8A (CT4) and related developments and this is expected to be completed by This programme will also be complemented by various other capital expenditure programmes in support of the CT4 development including the development of the back-up storage yard, acquisition of new gantry cranes and other container handling equipment of the latest design and specifications. With these enhancements it is expected that Northport s capacity will increase to well past of 5.5 million TEUs. Northport s strategy is to provide quality services to its current and new customers in tandem with their requirements and targeted future growth. The improvement programmes will also address upgrading of service quality and reliability. Kontena Nasional and its subsidiaries have undertaken major changes in their business approach and strengthened their resources to meet customers expectation. The company is continuously seeking for opportunities to introduce new service offerings that can generate better profitability of the company. It is also placing close watch on cost management as an on-going process. CORPORATE GOVERNANCE Northport is committed to complying with and consistently upholding the standards set in the Malaysian Code on Corporate Governance in all its activities. A more detailed account of its approach is contained within the Statement on Corporate Governance appearing on pages 75 to 85 of this Annual Report. APPRECIATION On behalf of the Board, I would like to record my sincere appreciation to all the employees, the management of the company and the various subsidiaries within the Group for their support and dedication. My thanks also go to our shareholders, the customers, port users, Government authorities, business associates and other stakeholders. I would also like to record my appreciation to the media for their supportive reporting of the business activities of our Group. I also wish to place on record my thanks to my fellow directors as well as directors who sit on the boards of the subsidiaries for their valuable service during the year just ended. TUN AHMAD SARJI BIN ABDUL HAMID Chairman 21 February I NCB HOLDINGS BHD ANNUAL REPORT 2011

25 CHAIRMAN S STATEMENT NCB HOLDINGS BHD ANNUAL REPORT 2011 I 23

26

27 The pretty butterfly is graceful in motion; Even prettier when in flight two by two; Let protecting profit not be the only mission; For the environment needs to be protected too. Indahnya warna si kupu-kupu; Hinggap berlima di dahan cemara; Bukan hanya laba ditumpu; Alam juga perlu dipelihara.

28 PENYATA PENGERUSI PARA PEMEGANG SAHAM, PAGI PIHAK LEMBAGA PENGARAH, SAYA BERBESAR HATI MEMBENTANGKAN LAPORAN TAHUNAN DAN PENYATA KEWANGAN YANG DIAUDIT BAGI KUMPULAN DAN SYARIKAT UNTUK TAHUN KEWANGAN BERAKHIR 31 DISEMBER PENCAPAIAN KORPORAT Ulasan mengenai Perniagaan Dalam tahun 2011, jumlah keseluruhan kontena yang dikendalikan melalui Pelabuhan Klang menunjukkan peningkatan di mana peningkatan yang lebih ketara dialami dalam sektor transhipment. Anak syarikat pelabuhan telah berjaya mengekalkan sokongan pasaran yang kukuh baik dalam segmen import / eksport mahupun segmen transhipment, sejajar dengan skala kapasiti keseluruhan Pelabuhan Klang yang dibawah pengurusannya. Perniagaan logistik dalam Kumpulan telah menampakkan perhembangan yang kukuh berbanding dengan apa yang telah dicapai di tahun sebelumnya. Perolehan hasil yang lebih tinggi telah dicatitkan dan hal ini telah berpunca daripada aliran pendapatan baru yang dihasilkan melalui perniagaan baru dalam sektor yang di luar daripada aktiviti pengangkutan asas kontena. Pada keseluruhannya, jumlah perolehan urusniaga Kumpulan telah meningkat sebanyak 4.5%. Kedudukan Kewangan Bagi tahun kewangan berakhir 31 Disember 2011, Kumpulan NCB telah mencatitkan jumlah perolehan urusniaga berjumlah RM928.0 juta, dan ini merupakan peningkatan sebanyak 4.5% berbanding dengan jumlah RM887.9 juta yang dicatitkan dalam tahun sebelumnya. Walau bagaimanapun, untung sebelum cukai bagi Kumpulan adalah pada paras RM190.1 juta, dan ini merupakan penurunan sebanyak 5.0% berbanding dengan pencapaian tahun sebelumnya sebanyak RM200.1 juta. Operasi pelabuhan mencatitkan untung sebelum cukai sebanyak RM172.7 juta berpunca daripada jumlah perolehan perniagaan sebanyak RM693.8 juta, merosot sebanyak 8.5% berbanding dengan tahun Operasi logistik pula mencatitkan untung sebelum cukai berjumlah RM8.2 juta yang terhasil daripada perolehan perniagaan berjumlah RM234.2 juta, iaitu peningkatan melebihi 100% berbanding dengan tahun I NCB HOLDINGS BHD ANNUAL REPORT 2011

29 PENYATA PENGERUSI Dividen Lembaga Pengarah sedar akan perlunya menjuruskan usaha kearah memberikan pulangan yang stabil kepada pemegang saham atas keyakinan yang mereka tunjukkan dan kepercayaan mereka terhadap syarikat. Bagi tahun 2011, syarikat telah membayar dividen awal satu peringkat pada kadar 7.0 sen sesaham melibatkan jumlah RM32.9 juta pada 12 Oktober Lembaga juga telah menggunakan kesemua kredit cukai dibawah Seksyen 108 untuk membolehkan syarikat mengisytiharkan dividen awal khas pada 27 Jun 2011 pada kadar 59.0 sen sesaham ditolak 25% cukai melibatkan jumlah RM208 juta. Dividen tersebut telah dibayar pada 2 Ogos Di Mesyuarat Agung Tahunan kali ke 13, Lembaga akan mengusulkan pembayaran dividen akhir satu tahap pada kadar 10.0 sen sesaham, melibatkan jumlah kos RM47.0 juta. Sekiranya diluluskan, dividen berkenaan akan dibayar pada 8 Mei Ini akan menjadikan jumlah dividen yang dikeluarkan bagi tahun 2011 sebanyak RM288.0 juta. PRESTASI OPERASI Kedudukan Umum Syarikat-syarikat dalam Kumpulan dalam tahun 2011 telah menguruskan perniagaan masing-masing dalam persekitaran yang agak lembab dan sering berubah. Northport sedang berada hampir dengan tarikh tamat pajakannya masa kini dan perlu menangani situasi di mana kadar susutnilai pelaburan utamanya perlu dikaitkan dengan baki tempoh pajakan yang singkat. Keadaan ini memerlukan pendekatan dalam pengurusan kos yang baik. Kontena Nasional, yang bergiat dalam sektor logistik telah mengukir kejayaan yang baik dalam usahanya menstruktur semula pendekatan perniagaannya dan melaluinya telah berjaya mewujudkan aliran hasil perniagaan yang baru yang membantu memperluaskan sumber pendapatannya serta memperkukuhkan tahap penghasilan untung. Operasi Pelabuhan Dalam persekitaran Pelabuhan Klang di mana dua pemain dilesenkan, Northport telah agak berjaya dalam memenuhi permintaan dari pelanggannya walaupun perlu berdepan dengan situasi operasi di mana penggunaan kapasiti dan kemudahannya adalah pada paras yang tinggi. Walaupun terdapat penurunan dari segi jumlah kontena yang dikendalikan, tahap perolehan hasil keseluruhan daripada kombinasi aktiviti dalam sektor kontena dan kargo konvensional menunjukkan peningkatan. Dibawah program untuk mempertingkatkan kapasiti, Northport telah memulakan perlaksanaan projek membangunkan Dermaga 8A yang mana akan dikenali sebagai Terminal Kontena 4 NCB HOLDINGS BHD ANNUAL REPORT 2011 I 27

30 PENYATA PENGERUSI apabila dibuka untuk operasi kelak. Apabila memulakan operasi, kemudahan baru ini akan membolehkan Northport untuk memperkukuhkan kedudukan Northport dalam pasaran dan membolehkannya menyediakan perkhidmatan yang diperlukan oleh pelanggan sekarang dan di masa hadapan. Jumlah kontena yang dikendalikan oleh Pelabuhan Klang dalam tahun 2011 ialah 9,603,926 TEU, meningkat sebanyak 8.25% berbanding dengan jumlah 8,871,745 TEU yang dicatitkan dalam tahun Jumlah kontena yang dikendalikan oleh kemudahan Northport ialah 3,199,852 TEU. Angka ini merupakan kemerosotan sebanyak 3.2% berbanding dengan jumlah 3,305,764 TEU yang dicatitkan dalam tahun Kedudukan ini berhubungkait dengan kekangan sementara ketika ini dari segi kapasiti yang mana akan dapat diatasi melalui penyiapan Terminal Kontena 4. Peratusan sumbangan dari segi jenis kontena adalah pada kadar 50% bagi kedua-dua kontena impot dan ekspot. Dari segi statistik, jumlah kontena masuk telah berlaku pengurangan sebanyak 1.7% daripada jumlah 1,698,328 TEU dalam tahun 2010 kepada paras 1,669,239 TEU dalam tahun Kontena keluar yang dikendalikan juga mengalami pengurangan 4.8% daripada paras untuk tahun 2010 iaitu 1,607,436 TEUs kepada jumlah 1,530,613 TEU yang dicatitkan bagi tahun ,515,050 TEU daripada keseluruhan jumlah kontena yang melalui Pelabuhan Klang sepanjang tahun lalu, adalah mengandungi dagangan impot dan ekspot Negara dan daripada jumlah ini 1,805,294 TEU atau 51.4% telah dikendalikan melalui Northport. Dengan yang demikian Northport masih kekal sebagai laluan utama bagi dagangan impot dan ekspot Malaysia pada ketika ini. Kontena transhipment yang dikendalikan oleh anak syarikat pelabuhan tahun ini berjumlah 1,394,559 TEU, iaitu peningkatan sebanyak 13,165 TEU atau 0.95% berbanding dengan angka bagi tahun 2010 sebanyak 1,381,403 TEU. Kontena transhipment merupakan 48.6% daripada keseluruhan jumlah kontena yang dikendalikan oleh Northport dalam tahun Ini merupakan peningkatan 6.9% berbanding dengan pecahan bagi tahun lalu iaitu sebanyak 41.7%. Pelabuhan Klang mengendalikan sejumlah 6,088,876 TEU kontena transhipment tahun lalu dan angka yang dikendalikan melalui Northport menyumbang sebanyak 22.9% kepada jumlah ini. Perniagaan kargo konvensional Northport telah menunjukkan peningkatan iaitu bertambah sebanyak 7.5% daripada 7.21 juta FWT dalam tahun 2010 ke paras 7.75 FWT tahun lalu. Selain daripada bergiat dalam operasi memuat dan memunggah kargo kontena dan bukan kontena, Northport juga menguruskan beberapa gudang simpanan kargo di Northport dan juga Southpoint serta gudang milik anak syarikatnya Northport Distripark Sdn Bhd. Terdapat juga kemudahan pusat persinggahan kenderaan bagi 28 I NCB HOLDINGS BHD ANNUAL REPORT 2011

31 PENYATA PENGERUSI memenuhi keperluan pelanggan dalam sektor automotif. Aktiviti pergudangan dan pengedaran ini, baik yang dijalankan oleh Northport sendiri ataupun oleh penyewa gudang berkenaan, juga membantu menjana kargo kontena yang akhirnya disalurkan pergerakannya melalui kemudahan terminal kontena yang dikendalikan oleh Northport. Operasi Logistik Usaha Kontena Nasional untuk memperluaskan fokus perniagaannya telah membuahkan hasil yang amat memuaskan. Kontena Nasional dan anak syarikatnya telah mencapai peningkatan tahap perolehan hasil sebanyak 14% ke paras RM234.2 juta daripada jumlah RM203.9 juta dalam tahun sebelumnya. Untung sebelum cukai diperingkat Kontena Nasional dan anak syarikatnya berjumlah RM8.2 juta. Peningkatan tahap perolehan ini telah berjaya dihasilkan melalui penjanaan pendapatan baru yang diperolehi melalui aktiviti perniagaan baru dalam bidang-bidang yang menawarkan khidmat pergudangan, pengangkutan dan logistik projek. Peningkatan jumlah perolehan juga turut dibantu oleh aktiviti pengangkutan asas kontena yang pengurusannya telah distruktur semula dengan menekankan produktiviti. Aktiviti penghantaran juga telah menjana perolehan yang lebih memuaskan dengan adanya sokongan yang kukuh daripada pelanggan yang bergiat dalam sektor gas dan minyak. STRATEGI Strategi Northport ialah untuk menjadi sebuah syarikat pemegang pelaburan yang berjaya menjana nilai-nilai yang memuaskan melalui perniagaan yang dijalankan oleh anak syarikat dalam bidang-bidang operasi pelabuhan dan pembekalan khidmat logistik. Pendekatan bagi menjalankan aktiviti perniagaan ini akan dijurus secara strategik kearah menghasilkan nilai yang baik bagi pemegang saham serta menghasilkan pulangan yang memuaskan bagi pemilik. Operasi Pelabuhan Dalam tahun 2011, Northport menerima kelulusan pada prinsip daripada Kerajaan Malaysia bagi pembaharuan lesen dan pajakan untuk mengendalikan Northport untuk tempoh 30 tahun dan Southpoint selama 21 tahun, berkuatkuasa daripada tarikh tamat pajakan sekarang dalam tahun Lembaga Pengarah ingin merakamkan terima kasih kepada Kerajaan atas keputusan ini. Northport akan terus mengatur rancangan perniagaan yang akan memberikan fokus utama terhadap peningkatan kapasiti bagi memenuhi permintaan pelanggan. Sebagai satu komponen penting daripada rancangan ini, Northport telah memulakan kerja pembangunan Dermaga 8A (CT4), serta beberapa projek lain yang berkaitan dan program kerja ini dijadual akan siap dalam tahun ,805, ,005, ,858,341 TEU ,305, ,199,852 Kendalian TEU Northport NCB HOLDINGS BHD ANNUAL REPORT 2011 I 29

32 PENYATA PENGERUSI Program ini akan turut juga disokong oleh beberapa projek utama melibatkan perbelanjaan modal yang besar yang perlu untuk menjamin kejayaan dan keberkesanan CT4 dan ini akan meliputi pembinaan kemudahan menyimpan kontena, pembelian kontena kren baru dan lain-lain peralatan penting yang mempunyai rekabentuk dan spesifikasi terkini. Dengan program peningkatan kapasiti ini, keupayaan Northport untuk mengendalikan kontena akan dianjak ke paras yang jauh melebihi 5.5 juta TEU. Strategi Northport ialah untuk menyediakan khidmat berkualiti kepada pelanggan sedia ada dan yang baru sejajar dengan keperluan mereka untuk menampung tahap aktiviti masa kini dan juga keperluan yang lebih tinggi di masa hadapan. Progam penambahbaikan akan juga dijuruskan kepada peningkatan kualiti dan ketepatan perkhidmatan. Perkhidmatan Logistik Kontena Nasional dan anak syarikatnya telah melakukan banyak perubahan besar dari aspek pendekatan yang digunakan dalam merangka aktiviti perniagaan serta memperkukuhkan sumber tenaga dan asetnya dalam memberikan tindakbalas kepada petunjuk pasaran. Lembaga dan pengurusannya sentiasa mencari peluang untuk memperkenalkan perkhidmatan baru berasaskan apa yang dikenalpasti sebagai boleh menawarkan potensi meraih keuntungan dan menjana perkembangan masa depan. Dalam masa yang sama tumpuan juga diberikan terhadap usaha mengawal dan menurunkan kos sebagai satu amalan berterusan. URUSTADBIR KORPORAT Northport mempunyai komitmen untuk mematuhi sepenuhnya dan sentiasa memelihara secara berterusan piawaian dan amalan terbaik yang terkandung dalam kod amalan Malaysia bagi Urustadbir Korporat dalam semua bidang aktivitinya. Penerangan yang lebih terperinci mengenai pendekatan dalam hal ini terdapat dalam laporan di bawah tajuk Penyata Mengenai Urustadbir Korporat di mukasurat 86 hingga 96 dalam Laporan Tahunan ini. PENGHARGAAN Bagi pihak Lembaga saya ingin merakamkan penghargaan ikhlas saya terhadap semua kakitangan, pengurusan syarikat serta juga anak-anak syarikat dalam Kumpulan atas sokongan dan sifat dedikasi mereka. Saya juga berterima kasih kepada para pemegang saham, pelanggan, pengguna pelabuhan, pihak berkuasa Kerajaan, rakan perniagaan dan lain-lain pihak yang sama berkongsi kepentingan. Saya juga ingin merakamkan penghargaan saya kepada pihak media atas laporan mereka yang menggalakkan ketika membuat liputan mengenai aktiviti perniagaan Kumpulan. Saya juga ingin merakamkan ucapan terima kasih kepada barisan pengarah syarikat serta juga mereka yang menganggotai lembaga anak syarikat atas khidmat yang mereka jalankan sepanjang tahun yang baru berakhir. TUN AHMAD SARJI BIN ABDUL HAMID Pengerusi 21 Februari I NCB HOLDINGS BHD ANNUAL REPORT 2011

33 PENYATA PENGERUSI NCB HOLDINGS BHD ANNUAL REPORT 2011 I 31

34

35 The fight for customer support in a business is as intense for the front runners as much as for the trailing parties seeking to catch up. Perlumbaan untuk mendapat sokongan pelanggan dalam sesuatu perniagaan adalah sama sengitnya baik bagi yang telah dibarisan paling hadapan mahu pun bagi yang sedang cuba mengejar.

36 GROUP MANAGING DIRECTOR S STATEMENT The Year in Perspective Generally the year was approached with some degree of cautious expectation as had been the case during the preceding two years. For the port subsidiary the budgeted growth was projected to be very moderate given the expectation of slow overall growth in world trade. The focus was placed on getting the best yield out of the installed capacity in place and the audience of customers secured. With the high utilisation rate of the berthing capacity, attention was placed on ensuring high service reliability, meeting targets of customers and getting higher output from the berths. It was more a call for capacity optimisation. For the logistics subsidiary the structural changes for the retail haulage division was completed during the year. The division was run with a fleet that is more reflective of its targeted revenue contribution. With improved age profile for the fleet and more satisfactory arrangement for providing the maintenance support, the unit was able to contribute a revenue stream based on the optimal utilisation of the allocated resources. In the other areas of activities, freight forwarding continued to receive strong support both from existing clients as well as new clients, many from the oil and gas sector in the latter case. A new revenue stream was created through the creation of the logistics infrastructure division which saw Kontena Nasional offering distribution centres in far more locations than possible before. Contract logistics assumed a more prominent role and became a strong contributor in the overall group earnings. Aligning With the Operating Environment In the port sector, Northport has been enjoying the role as the main gateway for import and export trade of the nation. The subsidiary is poised to continue in this role going by the statistics for year 2011 during which it serviced more than 51% of the total import and export traffic through Port Klang. Utilisation of the container handling capacity of Northport continued to be at a high level. While capacity enhancement for the quay line is being addressed through major berth development works started later in the year, other enhancement programmes were being undertaken through projects for enhancing capacity of the storage yards and strengthening of the equipment fleet. The capacity enhancement for the quayline started in the latter half of the year with the commencement of construction work on the Wharf 8A project. This facility will upon its commissioning in 2013 be run as Container Terminal 4. Also included within the same contract is the work of upgrading Wharf 16 to enable it to service vessels of bigger sizes. This is supported by upgrading work on the cranes that are located thereat. At the same time, Northport has also gone ahead with the purchase of the supporting equipment of Rubber-Tyred 34 I NCB HOLDINGS BHD ANNUAL REPORT 2011

37 GROUP MANAGING DIRECTOR S STATEMENT Gantries and Prime Movers for servicing the container storage yards. This improved support of the back-up services is expected to translate into higher performance level of the ship-side operation. In the logistics subsidiary, Kontena Nasional has secured success in branching out into contract logistics services in a big way. The revamped KN Sime Logistics Sdn Bhd (a joint venture company which has since become a wholly-owned subsidiary and re-named KN Global Transport Sdn Bhd) is now providing high-value contract logistics services for a wide-ranging array of goods, including fertiliser, petroleum products, food stuff, chemicals and fast moving consumer goods. It is now also undertaking a big-volume distribution service for several leading Government corporations. The combined effect of the revamp of the operating model in Kontena Nasional is being felt in a positive way through the stronger revenue earned during the year. The changes and the resultant revenue streams are expected to better stabilise moving into the following year. Challenges in the Horizon Northport s quayline capacity enhancement programme started in earnest in 2011 and will continue into the following 2 years. The Wharf 8A project designed with a berth length of 350 metres and alongside depth of 17 metres, will enable Northport to service vessels of more than 10,000 TEUs. The supporting projects in the form of expansion of the container storage yard and acquisition of additional equipment will inject higher level of productivity and better position Northport to meet rising customer expectations. Towards the end of 2011 the Government gave its approval in principle for the extension of the lease for Northport, for 30 years in respect of the demised property located in North Port and for 21 years for that located in South Port. Negotiation of the terms of lease is currently in progress. The confirmation of extension of lease tenure enables Northport to be in a position to continue with its business plan of delivering better service to its current and future customers and working in partnership with them in preparing for future growth. Kontena Nasional is continuing with its business diversification efforts following upon the success of the initial business re-modelling exercise. The exercise has given Kontena Nasional better visibility and drawn positive market reaction. The subsidiary intends to leverage on the positive market signals and will develop a wider range of service offerings to specific targeted segments of the market. Kontena Nasional is also examining early indicators of opportunities for business collaboration that may emerge in neighbouring countries of Thailand, Singapore and Indonesia. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 35

38 GROUP MANAGING DIRECTOR S STATEMENT Tapping on Past Strengths Both Northport and Kontena Nasional have the distinction of being pioneers in their respective fields of activities. Northport was the first privatised licensed port operator in the country, winning the trust of the Government in its first-ever privatisation deal. The company had subsequently taken on the tasks of implementing an operational merger with another licensed operator and adjusting its role in a 2-player market environment as intended by the Government s 2-operator policy for Port Klang. As it makes its way towards its second concession, Northport has been able to tap upon its 25-year experience in managing a port and responding to change in order to chart its further record of success. Northport is justifiably confident that with strong board leadership and a work force rich in experience, it will be able to achieve further success in its role both as a concession holder the government puts its trust in and as a business enterprise its stakeholders wish to see prosper. Kontena Nasional turns 40 in 2011 and is similarly proud of its records of pioneering the container haulage and logistics industry in the country. It has to its credit several milestones of success including weathering periods of down-turn and severe competition. What the company went through and achieved in the last 3 years is a reinforcement of the fact that there is no lack of energy and resourcefulness in Kontena Nasional to stay ahead of challenges as the future years unfold. Its Board and management strongly believe that much more new opportunities await to be uncovered and leveraged upon and value mined therefrom. 36 I NCB HOLDINGS BHD ANNUAL REPORT 2011

39 GROUP MANAGING DIRECTOR S STATEMENT Conclusion The operational and financial results related to the business undertakings of the Group during 2011 have been satisfactory. It is a strong testimony of the ability of the Group companies to hold their ground well in the face of competition as well as changing market conditions. It also speak well of the Group companies ability to selfevaluate and challenge themselves when the results of their endeavour are less that optimal. The history of our existence also reflects a series of challenging change events that our group companies have been able to turn into opportunities and created success from. We like to think that we have the traits of a learning organisation that is not intimidated by new challenges and prospect of hard work and take success with responsibility and humility. I am gratified by the sense of commitment, dedication and hardwork that is the character hallmark of the employees of companies in the Group. Their penchant for challenging themselves has taken us to where we are today. I am also grateful for the support, guidance and advice that have readily been forthcoming from Directors of the Group companies in the course of our quest to make each of these companies successful. DATO ABDUL SAMAD BIN MOHD DOM Group Managing Director 21 February 2012 NCB HOLDINGS BHD ANNUAL REPORT 2011 I 37

40 There need to be conscious efforts to protect the environment so there can be balanced co-existence between beauty that nature endowed us with and what man has successfully created. Harus ada usaha untuk melindungi persekitaran supaya dapat wujud seiring antara yang cantik daripada anugerah alam dengan yang dihasilkan oleh tangan manusia.

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42 PENYATA PENGARAH URUSAN KUMPULAN Imbas Kembali Pada umumnya unjuran bagi tahun 2011 telah dibuat dengan pendekatan yang agak berhati-hati, seperti juga yang telah dirasakan bagi dua tahun sebelumnya. Bagi anak syarikat pelabuhan, unjuran pertumbuhan kargo telah dibuat pada kadar yang amat sederhana setelah diambilkira tempoh dagangan global yang diramalkan akan terus lembab. Tumpuan yang diberikan ialah terhadap soal bagaimana memaksimumkan hasil daripada saiz perniagaan yang mampu dijana oleh pelanggan sedia ada. Dalam keadaan penggunaan kapasiti pada tahap agak tinggi, perhatian diberikan kepada soal menjamin kelancaran perkhidmatan, memenuhi sasaran pelanggan dan memacu tahap prestasi yang lebih tinggi melalui dermaga yang sedia ada dengan pengurusan kos yang berkesan. Ianya lebih bersifat mengoptimisasi kapasiti yang ada. Bagi anak syarikat logistik, perubahan struktur dari segi pendekatan bagi menyediakan khidmat pengangkutan asas kontena telah disempurnakan dalam tahun ini. Bahagian ini telah diurus dengan jumlah prime mover yang dirasakan paling tepat bagi saiz pasaran dan sumbangan hasil yang disasarkan. Dengan penggunaan jentera yang profil umur lebih baik dan dengan diatur sistem menyediakan sokongan penyelenggaraan, unit perniagaan ini telah berjaya menyumbangkan aliran hasil yang boleh dikira setimpal dengan aset dan sumber lain yang digunakan. Bagi bidang aktiviti yang lain, perniagaan penghantaran terus menyumbang dengan baik hasil daripada sokongan berterusan pelanggan sedia ada dan baru di mana dalam kumpulan kedua, sokongan kuat diperolehi daripada pelanggan dalam sektor minyak dan gas. Satu aliran hasil juga diwujudkan melalui perniagaan penyediaan khidmat infrastruktur logistik, di mana diwujudkan jaringan gudang yang bertindak sebagai pusat pengedaran yang lebih besar daripada yang terdapat sebelumnya. Logistik kontrak pula telah muncul sebagai penyumbang pendapatan yang besar dalam urusniaga keseluruhan Kontena Nasional dan anak-anak syarikatnya. Menyelaraskan Dengan Situasi Operasi Dalam sektor pelabuhan, Northport berada pada kedudukan sebagai pelabuhan yang mengendalikan jumlah dagangan impot dan ekspot utama dalam negara. Northport dijangka akan meneruskan peranan ini jika dilihat dari statistik operasi tahun 2011 dimana lebih 51% daripada jumlah kontena impot dan ekspot melalui Pelabuhan Klang disalurkan melalui kemudahan Northport. Penggunaan kemudahan pengendalian kontena di Northport adalah pada tahap yang agak tinggi. Walaupun soal peningkatan kapasiti diperingkat dermaga ditangani melalui program pembesaran dermaga yang dimulakan lewat tahun lalu, program pembesaran dalam aspek lain telah mula digerakkan melalui kerja pembesaran lapangan 40 I NCB HOLDINGS BHD ANNUAL REPORT 2011

43 PENYATA PENGARAH URUSAN KUMPULAN simpanan kontena, dan penambahan peralatan. Program mempertingkatkan kapasiti bagi dermaga dimulakan dalam separuh tahun kedua 2011 dengan bermulanya perlaksanaan projek pembinaan Dermaga 8A. Kemudahan ini apabila memulakan operasi dalam tahun 2013 akan dikenali sebagai Terminal Kontena 4. Turut dimasukkan dalam kontrak ini ialah kerja penaikan taraf bagi Dermaga 16 untuk menjadikannya mampu mengendali kapal-kapal yang lebih besar. Inisiatif ini akan melibatkan juga kerja mempertingkatkan tahap kemampuan kren-kren yang terdapat didermaga tersebut. Dalam masa yang sama Northport juga telah meneruskan program membeli kren Rubber-Tyred Gantry dan Prime Mover untuk menyokong operasi di kawasan simpanan kontena. Peralatan dan kemudahan sokongan ini akan dapat membantu mempertingkatkan tahap prestasi ke paras lebih tinggi di bahagian operasi di dermaga. Bagi anak syarikat logistik, Kontena Nasional telah berjaya mencapai kejayaan dalam usaha memperluaskan skop pembekalan khidmat logistik. KN Sime Logistics Sdn Bhd (sebuah syarikat usaha sama yang kini telah menjadi anak syarikat milik penuh dan dinamakan semula KN Global Transport Sdn Bhd) kini menyediakan khidmat logistik kontrak bernilai tinggi melibatkan pelbagai jenis barangan termasuk baja, produk petroleum, bahan makanan, bahan kimia, dan barangan keperluan pengguna. Syarikat ini juga sedang menjalankan khidmat pengedaran untuk sebuah syarikat Kerajaan yang besar. Kesan daripada perubahan yang dilakukan terhadap kaedah menjalankan aktiviti perniagaan di Kontena Nasional telah dapat dirasai melalui hasil perolehan perniagaan yang telah meningkat dalam tahun ini. Proses perubahan dan penghasilan aliran pendapatan yang lebih baik dijangka akan menjadi tambah stabil dalam tahun hadapan. Cabaran-Cabaran Yang Menanti Inisiatif untuk mempertingkatkan kapasiti kemudahan dermaga di Northport telah dimulakan secara teratur dalam tahun 2011 dan akan diteruskan untuk 2 tahun berikutnya. Dermaga 8A, yang direkabentuk dengan ukuran panjang 350 meter dan dalam air 17 meter akan membolehkan Northport memberi khidmat kepada kapal-kapal kontena bersaiz lebih daripada 10,000 TEU. Projek-projek sokongan meliputi kerja-kerja pembesaran lapangan simpanan kontena dan pembelian peralatan tambahan akan melonjakkan tahap produktiviti dan dengan itu meletakkan Northport pada kedudukan lebih kukuh untuk memenuhi kehendak pelanggan. Menjelang akhir tahun 2011, Kerajaan telah memberikan kelulusan pada prinsip bagi lanjutan pajakan Northport, iaitu untuk tempoh 30 tahun bagi tapak yang berada di Pelabuhan Utara dan 21 tahun bagi tapak yang berada di Pelabuhan Selatan. Kini sedang berjalan proses merundingkan syarat dan terma bagi pajakan tersebut. Dengan pengesahan NCB HOLDINGS BHD ANNUAL REPORT 2011 I 41

44 PENYATA PENGARAH URUSAN KUMPULAN lanjutan pajakan Northport berada pada kedudukan yang baik untuk meneruskan rancangan perdagangannya untuk menawarkan khidmat yang lebih baik bagi pelanggan sedia ada dan pelanggan baru dan bekerja seiring dengan mereka dalam membuat persiapan bagi menampung perkembangan masa hadapan. Kontena Nasional sedang meneruskan usahanya untuk mempelbagaikan skop perkhidmatan sebagai lanjutan kepada apa yang telah dicapai setakat ini. Inisiatif ini telah meletakkan Kontena Nasional dalam keadaan yang lebih dikenali oleh pasaran dan telah mendapat tindak balas yang positif. Anak syarikat ini bercadang menggunakan petunjuk positif dari pasaran ini untuk memperkenalkan khidmat-khidmat baru bagi segmensegmen pasaran tertentu. Kontena Nasional juga sedang menilai petunjuk-petunjuk awal bersabit dengan peluangpeluang baru untuk menjalin kolaborasi bagi khidmat yang boleh ditawarkan diperingkat negara-negara jiran seperti Thailand, Singapura dan Indonesia. Menggembleng Kekuatan Masa Lalu Northport dan Kontena Nasional mempunyai rekod pencapaian yang baik sebagai pelopor dalam bidang masing-masing. Northport adalah pengusaha pelabuhan swasta yang dilesen yang pertama dalam Negara yang telah berjaya mendapatkan kepercayaan Kerajaan dalam program penswastaan yang pertama dalam tahun lapan puluhan. Syarikat ini seterusnya telah melaksanakan program percantuman operasi dengan sebuah syarikat pengusaha pelabuhan swasta lain, menyelaraskan peranannya sebagai salah satu daripada dua pemain di Pelabuhan Klang seperti yang disasarkan oleh dasar Kerajaan. Dalam melangkah ke arah perjanjian konsesinya yang kedua, Northport telah dapat menggunakan dengan baik pengalamannya sebagai pengusaha pelabuhan selama 25 tahun serta melakukan penyesuaian terhadap perubahan yang berlaku dan sekaligus mengekalkan rekod kejayaannya. Ada asas bagi Northport berasa yakin bahawa dengan kepimpinan 42 I NCB HOLDINGS BHD ANNUAL REPORT 2011

45 PENYATA PENGARAH URUSAN KUMPULAN NCB HOLDINGS BHD ANNUAL REPORT 2011 I 43

46 PENYATA PENGARAH URUSAN KUMPULAN Lembaga Pengarah yang baik dan dengan tenaga kerja yang kaya dengan pengalaman, syarikat ini akan dapat terus mencapai kejayaan baik sebagai pemegang konsesi mahupun sebagai sebuah perniagaan yang diharap akan berjaya oleh semua pihak yang memegang kepentingan di dalamnya. Kontena Nasional yang mencecah usia 40 tahun dalam tahun 2011 juga bangga dengan rekod kejayaannya sebagai pelopor dalam bidang pengangkutan kontena dan logistik dalam negara ini. Anak syarikat ini mempunyai rekod kejayaan yang banyak termasuk kejayaan melayari zaman kemerosotan ekonomi dan menghadapi persaingan. Apa yang telah dilalui dan dicapai dalam 3 tahun terakhir menjadi bukti bahawa syarikat ini mempunyai tenaga serta daya kreatif untuk terus mengatasi cabaran dalam menghadapi setiap tahun yang mendatang. Lembaga dan pengurusannya penuh keyakinan bahawa banyak peluang lain sedang menunggu untuk dikenalpasti dan dieksploitasi untuk menghasilkan kejayaan kepada syarikat. Kesimpulan Pencapaian operasi dan kewangan bagi aktiviti perniagaan yang dijalankan oleh Kumpulan dalam tahun 2011 adalah agak memuaskan. Ianya menjadi bukti kemampuan syarikat-syarikat dalam Kumpulan untuk mempertahankan kedudukan masing-masing ketika menghadapi persaingan dan keadaan pasaran yang melalui perubahan. Ia juga menunjukkan bukti bahawa syarikat-syarikat ini mampu melakukan penilaian 44 I NCB HOLDINGS BHD ANNUAL REPORT 2011

47 PENYATA PENGARAH URUSAN KUMPULAN dan mencabar diri apabila hasil daripada kegiataan perniagaannya kurang memuaskan. Sejarah kehadiran kita juga menunjukkan beberapa peristiwa perubahan yang mencabar yang mana telah dapat ditukar menjadi peluang dan darinya terhasil kejayaan. Kami berasa kami mempunyai ciri-ciri sebuah organisasi yang sentiasa belajar dan tidak merasa terancam oleh cabaran-cabaran baru dan keperluan bekerja keras dan menerima kejayaan dengan rasa tanggungjawab dan rendah diri. Saya amat berterima kasih atas sikap penuh komitmen, dedikasi dan kerja keras yang telah ditunjukkan oleh kakitangan syarikat-syarikat dalam Kumpulan. Kesediaan mereka untuk mencabar diri masing-masing telah membawa kita ke tahap kita berada ketika ini. Saya juga berterima kasih atas sokongan, panduan dan nasihat yang telah dapat saya perolehi daripada Pengarah-Pengarah syarikat dalam Kumpulan dalam kita menjalankan usaha untuk memastikan kejayaan setiap satu daripada syarikat-syarikat ini. DATO ABDUL SAMAD BIN MOHD DOM Pengarah Urusan Kumpulan 21 Februari 2012 NCB HOLDINGS BHD ANNUAL REPORT 2011 I 45

48 What pushes a nation forward is the power from the combination of the pride of its people, their dream and aspiration and their energy to push for change to be amongst winners. Apa yang memacu sesebuah negara ialah kekuatan daripada kombinasi rasa bangga warganya, impian dan aspirasi mereka dan tenaga yang sanggup mereka gembleng untuk melakukan perubahan dan berada dikalangan yang menang.

49

50 CORPORATE STRUCTURE STRUKTUR KORPORAT PORT OPERATIONS AND RELATED ACTIVITIES OPERASI PELABUHAN DAN PERKHIDMATAN BERKAITAN Subsidiaries / Subsidiari-Subsidiari 100% Northport (Malaysia) Bhd Klang Port Management Sdn Bhd Northport Distripark Sdn Bhd LOGISTICS OPERATIONS AND RELATED ACTIVITIES OPERASI LOGISTIK DAN PERKHIDMATAN BERKAITAN Subsidiaries / Subsidiari-Subsidiari 100% Kontena Nasional Berhad Kontena Nasional Global Logistics Sdn Bhd Konnas Prolink Sendirian Bhd KN Global Transport Sdn Bhd (Formerly known as KN Sime Logistics Sdn Bhd) Konnas Maritime Services Sdn Berhad (Dormant Tidak Aktif) Konnas Freight International (UK) Limited (Dormant Tidak Aktif) Konnas Agencies Travel Services Sdn Bhd (Dormant Tidak Aktif) Associated Company / Syarikat Bersekutu 33.3% P.T. Ritra Konnas Freight Centre (Indonesia) 40% Tibbett & Britten Kontena Nasional Sdn Berhad (Dormant Tidak Aktif) 48 I NCB HOLDINGS BHD ANNUAL REPORT 2011

51 CORPORATE STRUCTURE STRUKTUR KORPORAT PERMODALAN NASIONAL BERHAD & PNB MANAGED FUNDS 55.9% MISC BERHAD 15.7% NORTHPORT (MALAYSIA) BHD 100% Klang Port Management Sdn Bhd 100% Northport Distripark Sdn Bhd 100% LEMBAGA PELABUHAN KLANG 5.3% OTHERS 23.1% NCB HOLDINGS BHD KONTENA NASIONAL BERHAD 100% P. T. Ritra Konnas Freight Centre (Indonesia) 33.3% Kontena Nasional Global Logistics Sdn Bhd 100% KN Global Transport Sdn Bhd 100% Tibbett & Britten Kontena Nasional Sdn Berhad 40% Konnas Prolink Sendirian Bhd 100% Konnas Agencies Travel Services Sdn Bhd 100% Konnas Maritime Services Sdn Berhad 100% Konnas Freight International (UK) Limited 100% NCB HOLDINGS BHD ANNUAL REPORT 2011 I 49

52 BOARD OF DIRECTORS LEMBAGA PENGARAH Seated From Left Duduk Dari Kiri: Standing From Left Berdiri Dari Kiri: Dato Abdul Samad bin Mohd Dom Group Managing Director Pengarah Urusan Kumpulan Tun Ahmad Sarji bin Abdul Hamid Chairman Pengerusi Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Haji Wan Yaacob Independent Non-Executive Director Pengarah Bebas Bukan Eksekutif Datuk Nasarudin bin Md Idris Director Pengarah Dato Haji Rahmat bin Jamari Director Pengarah Syed Agel bin Syed Salim Director Pengarah 50 I NCB HOLDINGS BHD ANNUAL REPORT 2011

53 NCB HOLDINGS BHD Dato Seri Dr. Haji Arshad bin Haji Hashim Independent Non-Executive Director Pengarah Bebas Bukan Eksekutif Datuk Abdul Malek bin Abdul Aziz Independent Non-Executive Director Pengarah Bebas Bukan Eksekutif Dato Zuraidah binti Atan Director Pengarah Datuk Khoo Eng Choo Independent Non-Executive Director Pengarah Bebas Bukan Eksekutif John Selvaraj James Group Financial Controller / Company Secretary Pengawal Kewangan Kumpulan / Setiausaha Syarikat NCB HOLDINGS BHD ANNUAL REPORT 2011 I 51

54 BOARD OF DIRECTORS LEMBAGA PENGARAH Seated From Left Duduk Dari Kiri: Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Hj Wan Yaacob Chairman / Pengerusi Dato Basheer Hassan bin Abdul Kader Managing Director / Chief Executive Officer Pengarah Urusan / Ketua Pegawai Eksekutif Dato Abdul Samad bin Mohd Dom Dato Zuraidah binti Atan 52 I NCB HOLDINGS BHD ANNUAL REPORT 2011

55 NORTHPORT (MALAYSIA) BHD Standing From Left Berdiri Dari Kiri: Dato Haji Rahmat bin Jamari Datin Paduka Juma ah binti Moktar Datuk Wan Awang bin Wan Yaacob Dato Halipah binti Esa Dato Kumaran a/l Santhivaloo NCB HOLDINGS BHD ANNUAL REPORT 2011 I 53

56 BOARD OF DIRECTORS LEMBAGA PENGARAH Seated From Left Duduk Dari Kiri: Dato Halipah binti Esa Tun Ahmad Sarji bin Abdul Hamid Chairman / Pengerusi Dato Abdul Samad bin Mohd Dom 54 I NCB HOLDINGS BHD ANNUAL REPORT 2011

57 KONTENA NASIONAL BERHAD Standing From Left Berdiri Dari Kiri: Syed Agel bin Syed Salim Yip Jian Lee Datuk Khoo Eng Choo Hood bin Osman Chief Executive Officer Ketua Pegawai Eksekutif Dr. Samad bin Solbai Tan Sri Dato Kamaruzzaman bin Shariff NCB HOLDINGS BHD ANNUAL REPORT 2011 I 55

58 MANAGEMENT AND CORPORATE INFORMATION PENGURUSAN DAN MAKLUMAT KORPORAT NCB HOLDINGS BHD Board of Directors Lembaga Pengarah Tun Ahmad Sarji bin Abdul Hamid Chairman Pengerusi Dato Abdul Samad bin Mohd Dom Group Managing Director Pengarah Urusan Kumpulan Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Haji Wan Yaacob Independent Non-Executive Director Pengarah Bebas Bukan Eksekutif Dato Seri Dr. Haji Arshad bin Haji Hashim Independent Non-Executive Director Pengarah Bebas Bukan Eksekutif Dato Haji Rahmat bin Jamari Director Pengarah Dato Zuraidah binti Atan Director Pengarah Datuk Abdul Malek bin Abdul Aziz Independent Non-Executive Director Pengarah Bebas Bukan Eksekutif Datuk Khoo Eng Choo Independent Non-Executive Director Pengarah Bebas Bukan Eksekutif Datuk Nasarudin bin Md Idris Director Pengarah Syed Agel bin Syed Salim Director Pengarah BOARD COMMITTEES JAWATANKUASA LEMBAGA Audit Committee Jawatankuasa Audit Remuneration Committee Jawatankuasa Ganjaran Chairman Pengerusi Datuk Abdul Malek bin Abdul Aziz Members Ahli-ahli Datuk Khoo Eng Choo Datuk Nasarudin bin Md Idris Syed Agel bin Syed Salim Nomination Committee Jawatankuasa Namaan Chairman Pengerusi Tun Ahmad Sarji bin Abdul Hamid Members Ahli-ahli Datuk Abdul Malek bin Abdul Aziz Datuk Khoo Eng Choo Risk Management Committee Jawatankuasa Pengurusan Risiko Chairman Pengerusi Dato Haji Rahmat bin Jamari Members Ahli-ahli Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Haji Wan Yaacob Dato Zuraidah binti Atan Datuk Khoo Eng Choo Syed Agel bin Syed Salim Finance and Investments Committee Jawatankuasa Kewangan dan Pelaburan Chairman Pengerusi Datuk Nasarudin bin Md Idris Members Ahli-ahli Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Haji Wan Yaacob Dato Zuraidah binti Atan COMPANY SECRETARY SETIAUSAHA SYARIKAT John Selvaraj James (MIA 18279) REGISTRAR PENDAFTAR Symphony Share Registrars Sdn Bhd Level 6, Symphony House, Blok D13, Pusat Dagangan Dana 1, Jalan PJU 1A/46, Petaling Jaya, Selangor Darul Ehsan STOCK EXCHANGE LISTING PENYENARAIAN DI BURSA SAHAM Main Market Pasaran Utama Bursa Malaysia Securities Berhad PLACE OF INCORPORATION TEMPAT DIPERBADANKAN Incorporated in Malaysia Diperbadankan di Malaysia COMPANY NO. NO. SYARIKAT K NO. OF SUBSIDIARY COMPANIES BILANGAN SYARIKAT SUBSIDIARI Ten (10) Sepuluh (10) TELEPHONE NO. NO. TELEFON General line Talian am EXTERNAL AUDITORS JURUAUDIT LUAR Ernst & Young Chartered Accountants Akauntan Bertauliah PRINCIPAL BANK BANK UTAMA AFFIN Islamic Bank Bhd REGISTERED OFFICE PEJABAT BERDAFTAR Headquarter s Building Jalan Pelabuhan North Port Port Klang Selangor Darul Ehsan Chairman Pengerusi Datuk Abdul Malek bin Abdul Aziz Members Ahli-ahli Dato Seri Dr. Haji Arshad bin Haji Hashim Datuk Khoo Eng Choo Syed Agel bin Syed Salim Syariah Committee Jawatankuasa Syariah Chairman Pengerusi Dato Dr. Abdul Halim bin Ismail Members Ahli-ahli Prof. Dato Paduka Dr. Mahmood Zuhdi bin Haji Ab. Majid Prof. Dato Dr. Abdul Monir bin Yaacob Dato Haji Rahmat bin Jamari Dato Seri Dr. Haji Arshad bin Haji Hashim FAX FAKS Corporate Services WEB ADDRESS LAMAN WEB 56 I NCB HOLDINGS BHD ANNUAL REPORT 2011

59 MANAGEMENT AND CORPORATE INFORMATION PENGURUSAN DAN MAKLUMAT KORPORAT MANAGEMENT PENGURUSAN 1. Dato Abdul Samad bin Mohd Dom Group Managing Director Pengarah Urusan Kumpulan 2. John Selvaraj James Group Financial Controller / Company Secretary Pengawal Kewangan Kumpulan / Setiausaha Syarikat 3. Mizhan Azri bin Masri Head, Corporate Planning and Communications Ketua, Perancangan dan Komunikasi Korporat 4. Yazirruddin bin Md. Som Head, Group Internal Audit Ketua, Audit Dalaman Kumpulan NCB HOLDINGS BHD NCB HOLDINGS BHD ANNUAL REPORT 2011 I 57

60 MANAGEMENT AND CORPORATE INFORMATION PENGURUSAN DAN MAKLUMAT KORPORAT Dato Basheer Hassan bin Abdul Kader Managing Director / Chief Executive Officer Pengarah Urusan / Ketua Pegawai Eksekutif 2. Mohd Haris bin Ab. Aziz Deputy Chief Executive Officer Timbalan Ketua Pegawai Eksekutif 3. Rubani bin Dikon General Manager, Finance / Company Secretary Pengurus Besar, Kewangan / Setiausaha Syarikat 4. Abi Sofian bin Abdul Hamid General Manager, Container and Engineering Services Pengurus Besar, Perkhidmatan Kontena dan Kejuruteraan 5. M. Suresh Kumar a/l K. Madevan General Manager, Information Services Pengurus Besar, Perkhidmatan Maklumat 6. Rosihan Adi bin Baharuddin General Manager, Corporate Services Pengurus Besar, Perkhidmatan Korporat 7. Zubir bin Jaafar Assistant General Manager, Support Services Penolong Pengurus Besar, Perkhidmatan Sokongan 8. Capt. Zuradi bin Zainol Abidin Assistant General Manager, Marine Services Penolong Pengurus Besar, Perkhidmatan Marin NORTHPORT (MALAYSIA) BHD 58 I NCB HOLDINGS BHD ANNUAL REPORT 2011

61 Norzalinda binti Mohamed Assistant General Manager, Container Services Penolong Pengurus Besar, Perkhidmatan Kontena 10. Lim Seok Hua Assistant General Manager, Conventional Cargo Services Penolong Pengurus Besar, Perkhidmatan Kargo Konvensional 11. Sankunny a/l Narayanan Assistant General Manager, Logistics Services Penolong Pengurus Besar, Perkhidmatan Logistik 12. Ir. G. Sundaraja Perumal Assistant General Manager, Equipment Maintenance Penolong Pengurus Besar, Penyelenggaraan Jentera 13. Mohd Nizam bin Tambi Ahmad Senior Manager, Human Resources Pengurus Kanan, Sumber Manusia 14. Andrew Khoo Boo Hock Senior Manager, Head of Customer Services Pengurus Kanan, Ketua Perkhidmatan Pelanggan NORTHPORT (MALAYSIA) BHD NCB HOLDINGS BHD ANNUAL REPORT 2011 I 59

62 MANAGEMENT AND CORPORATE INFORMATION PENGURUSAN DAN MAKLUMAT KORPORAT Hood bin Osman Chief Executive Officer Ketua Pegawai Eksekutif 2. Razali bin Hassan Chief Operating Officer / Company Secretary Ketua Pegawai Operasi / Setiausaha Syarikat 3. Dato Najmuddin bin Abdullah Chief Operating Officer Ketua Pegawai Operasi Kontena Nasional Global Logistics Sdn Bhd KONTENA NASIONAL BERHAD 60 I NCB HOLDINGS BHD ANNUAL REPORT 2011

63 Azizan bin Ariffin Chief Financial Officer Ketua Pegawai Kewangan 6. Zahnita binti Mohamed Zin Chief Corporate Resources Officer Ketua Pegawai Sumber Korporat 5. Mahnorizal bin Mahat Head, Corporate Planning Ketua, Perancang Korporat 7. Cheryl Rinai Kalip Joint Company Secretary Setiausaha Syarikat Bersama KONTENA NASIONAL BERHAD NCB HOLDINGS BHD ANNUAL REPORT 2011 I 61

64 MANAGEMENT AND CORPORATE INFORMATION PENGURUSAN DAN MAKLUMAT KORPORAT NORTHPORT (MALAYSIA) BHD Profile of Subsidiaries Profil Subsidiari COMPANY SECRETARY SETIAUSAHA SYARIKAT Rubani bin Dikon (MIA 9409) EXTERNAL AUDITORS JURUAUDIT Ernst & Young Chartered Accountants Akauntan Bertauliah PRINCIPAL BANKS BANK-BANK UTAMA AFFIN Islamic Bank Bhd HSBC Bank (Malaysia) Berhad REGISTERED OFFICE PEJABAT BERDAFTAR Ibu Pejabat Jalan Pelabuhan Pelabuhan Utara Pelabuhan Klang Selangor Darul Ehsan COMPANY NO. NO. SYARIKAT A TELEPHONE NO. NO. TELEFON General Line Talian Am FAX FAKS Corporate Services Department Jabatan Perkhidmatan Korporat WEB ADDRESS LAMAN WEB 62 I NCB HOLDINGS BHD ANNUAL REPORT 2011

65 MANAGEMENT AND CORPORATE INFORMATION PENGURUSAN DAN MAKLUMAT KORPORAT KONTENA NASIONAL BERHAD Profile of Subsidiaries Profil Subsidiari COMPANY SECRETARY SETIAUSAHA SYARIKAT Razali bin Hassan (LS 05531) EXTERNAL AUDITORS JURUAUDIT Ernst & Young Chartered Accountants Akauntan Bertauliah PRINCIPAL BANK BANK UTAMA Malayan Banking Berhad REGISTERED OFFICE PEJABAT BERDAFTAR Ibu Pejabat Batu 9, Jalan Klang Lama Seri Setia Selangor Darul Ehsan COMPANY NO. NO. SYARIKAT T TELEPHONE NO. NO. TELEFON General Line Talian Am FAX FAKS Corporate Services Department Jabatan Perkhidmatan Korporat WEB ADDRESS LAMAN WEB TOLL FREE LINE TALIAN BEBAS TOL NCB HOLDINGS BHD ANNUAL REPORT 2011 I 63

66 PROFILE OF DIRECTORS PROFIL PENGARAH Tun Ahmad Sarji bin Abdul Hamid Non-Independent Non-Executive Chairman Pengerusi Bukan Bebas Bukan Eksekutif Aged 73, Tun Ahmad Sarji bin Abdul Hamid became Director and Chairman of the Company on 8 September He had a distinguished career in the Malaysian civil service spanning over more than 35 years. He had served as Director General, the Farmers Organisation Authority, Deputy Director General, Public Service Department, Deputy Director General, Economic Planning Unit, Deputy Chairman and Director General of the Council of Trust for the Indigenous People (MARA). He served for more than 5 years as the Secretary General of the Ministry of Trade and Industry as well as Chairman of MIDA before being appointed as the Chief Secretary to the Government, Secretary to the Cabinet and Head of the Civil Service, a position he held for 6 years and 7 months ( ). Tun Ahmad Sarji holds a Bachelor of Arts (Honours) degree from the University of Malaya, a Diploma in Public Administration from the Institute of Social Studies, The Hague and a Master in Public Administration from Harvard University. He had also been awarded an Honorary Doctor of Science in Management by University Utara Malaysia, an Honorary Doctor in Business Administration by Nottingham-Trent University, United Kingdom, an Honorary Doctor of Letters by Universiti Malaysia Sarawak and an Honorary Doctorate in Management from the International Islamic University. Tun Ahmad Sarji is currently the Chairman of Permodalan Nasional Berhad. He is a member of the Board of Governors and Trustees, Asian Institute of Management, Manila, Joint-Chairman of the Malaysia Commonwealth Studies Centre, Cambridge University and a Trustee of the Oxford Centre for Islamic Studies. During the financial year, he attended all eight (8) scheduled meetings of the Board. He does not have any personal interest in any business arrangements involving the Company except that he is a nominee director of Permodalan Nasional Berhad, whose managed funds are a major shareholder of the Company. Berusia 73 tahun, Tun Ahmad Sarji bin Abdul Hamid menjadi Pengarah dan Pengerusi Syarikat pada 8 September Beliau mempunyai rekod kerjaya yang cemerlang dalam perkhidmatan awam Malaysia menjangkaui lebih 35 tahun. Beliau pernah memegang jawatan-jawatan sebagai Ketua Pengarah, Lembaga Pertubuhan Peladang; Timbalan Ketua Pengarah, Jabatan Perkhidmatan Awam; Timbalan Ketua Pengarah, Unit Perancang Ekonomi dan Timbalan Pengerusi dan Ketua Pengarah, Majlis Amanah Rakyat. Beliau telah berkhidmat selama lebih daripada 5 tahun sebagai Ketua Setiausaha, Kementerian Perdagangan dan Perindustrian dan Pengerusi MIDA sebelum dilantik sebagai Ketua Setiausaha Negara, merangkap sebagai Setiausaha Jemaah Menteri dan juga Ketua bagi seluruh Perkhidmatan Awam. Beliau memegang jawatan ini selama 6 tahun 7 bulan ( ). Tun Ahmad Sarji berkelulusan Sarjana Muda Sastera (Kepujian) dari Universiti Malaya, Diploma in Public Administration daripada Institute of Social Studies, The Hague dan Master in Public Administration daripada University Harvard. Beliau juga dianugerahkan Ijazah Kehormat Kedoktoran Sains dalam Bidang Pengurusan oleh Universiti Utara Malaysia, Ijazah Kehormat Kedoktoran dalam Pengurusan Perniagaan oleh Nottingham-Trent University, United Kingdom, Ijazah Kehormat Kedoktoran Persuratan oleh Universiti Malaysia Sarawak dan Ijazah Kehormat Kedoktoran dalam Pengurusan daripada Universiti Islam Antarabangsa. Kini, Tun Ahmad Sarji adalah Pengerusi Permodalan Nasional Berhad. Beliau juga merupakan ahli Lembaga Governors dan Pemegang Amanah Asian Institute of Management, Manila dan Pengerusi Bersama Malaysia Commonwealth Studies Centre, Cambridge University, dan ahli Lembaga Pemegang Amanah Oxford Centre for Islamic Studies. Pada tahun kewangan ini, beliau menghadiri kesemua lapan (8) mesyuarat Lembaga Pengarah yang telah dijadualkan. Beliau juga tidak mempunyai sebarang kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan Syarikat, kecuali beliau merupakan pengarah namaan Permodalan Nasional Berhad, dimana dana yang dikendalikannya merupakan pemegang saham utama Syarikat. 64 I NCB HOLDINGS BHD ANNUAL REPORT 2011

67 PROFILE OF DIRECTORS PROFIL PENGARAH Dato Abdul Samad bin Mohd Dom Executive Director Pengarah Eksekutif Aged 66, Dato Abdul Samad bin Mohamed is the Group Managing Director of NCB Holdings Bhd. He brings with him some 44 years of working experience in port and port-related organisations, having served for nearly 20 years in 2 port authorities before joining Northport (Malaysia) Bhd (NMB) (then Klang Container Terminal Bhd) in 1986 as General Manager and Chief Operating Officer. He progressed to become Chief Executive 3 years later, taking over from an expatriate appointee. He joined the Board of NMB and was made Managing Director in 1993, shortly after the Company was listed on the Main Board of the Kuala Lumpur Stock Exchange. He remained in NMB until September 2000, when he was appointed Group Managing Director of NCB Holdings Bhd following the successful completion of the restructuring exercise. Dato Abdul Samad underwent formal training in ports and harbor management in Japan under a Colombo Plan Fellowship in A Fellow of the Chartered Institute of Logistics and Transport, he also sits on the Boards of Northport (Malaysia) Bhd dan Kontena Nasional Berhad. During the financial year, he attended all eight (8) scheduled meetings of the Board. He does not have any personal interest in any business arrangements involving the Company. Berusia 66 tahun, Dato Abdul Samad bin Mohamed ialah Pengarah Urusan Kumpulan di NCB Holdings Bhd. Beliau mempunyai pengalaman bekerja dalam organisasi pelabuhan dan yang bersangkutan dengan pelabuhan selama kirakira 44 tahun, bermula dengan perkhidmatan selama hampir 20 tahun dengan 2 lembaga pelabuhan sebelum menyertai Northport (Malaysia) Bhd (NMB) (ketika itu Klang Container Terminal Bhd) dalam tahun 1986 sebagai Pengurus Besar dan Ketua Pegawai Operasi. Beliau dinaikkan pangkat ke jawatan Ketua Eksekutif 3 tahun kemudian, mengambil alih daripada seorang pegawai ekspatriat. Beliau menyertai Lembaga Pengarah NMB dan dilantik sebagai Pengarah Urusan dalam tahun 1993, tidak lama selepas syarikat berkenaan disenarai di Papan Utama Bursa Saham Kuala Lumpur. Beliau berkhidmat dengan NMB sehingga September 2000, bila mana beliau dilantik sebagai Pengarah Urusan Kumpulan NCB Holdings Bhd, berikutan dengan sempurnanya program penyusunan semula ekuiti dalam Kumpulan tersebut. Dato Abdul Samad menjalani latihan dalam bidang pengurusan pelabuhan di negara Jepun dibawah tajaan Rancangan Colombo dalam tahun Seorang Fellow, Chartered Institute of Logistics and Transport, beliau juga menganggotai Lembaga Pengarah Northport (Malaysia) Bhd dan Kontena Nasional Berhad. Pada tahun kewangan ini, beliau menghadiri kesemua lapan (8) mesyuarat Lembaga Pengarah. Beliau tidak mempunyai sebarang kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan Syarikat. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 65

68 PROFILE OF DIRECTORS PROFIL PENGARAH Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Haji Wan Yaacob Independent Non-Executive Director Pengarah Bebas Bukan Eksekutif Aged 70, Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Haji Wan Yaacob was appointed to the Board of Directors of NCB Holdings Bhd on 13 September He had a distinguished career with the Malaysia Public Works Department, which he served for a total of 32 years. He retired in 1996 as Director General, a position he occupied for 6 years. A 1965 graduate of the Brighton College of Technology, United Kingdom, in civil and structural engineering, Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman was conferred the Doctor of Engineering (Honorary) by the University of Birmingham in In 1993, he attended the Advanced Management Program at the Harvard Business School. He sits on the Board of Directors of many listed and unlisted companies, in several of these cases as Chairman. During the financial year, he attended seven (7) of the eight (8) scheduled meetings of the Board. He does not have any personal interest in any business arrangements involving the Company, except that he is a Director in MMC Corporation Bhd, a company having a subsidiary engaged in the same field of activities as Northport (Malaysia) Bhd. Berusia 70 tahun, Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Haji Wan Yaacob menyertai Lembaga Pengarah NCB Holdings Bhd pada 13 September Beliau mempunyai latar belakang perkhidmatan yang cemerlang dalam Jabatan Kerja Raya Malaysia, dimana beliau telah berkhidmat selama 32 tahun. Beliau bersara dalam tahun 1996 sebagai Ketua Pengarah, iaitu jawatan yang beliau sandang selama 6 tahun. Seorang graduan lepasan tahun 1965 dari Brighton College of Technology, United Kingdom, dalam bidang kejuruteraan awam dan struktur, beliau telah dianugerahkan Ijazah Doctor of Engineering (Honorary) oleh University of Birmingham dalam tahun Dalam tahun 1993, beliau menghadiri Advanced Management Programme di Harvard Business School. Beliau merupakan ahli Lembaga Pengarah beberapa syarikat yang disenarai dan tidak disenarai dan beberapa darinya adalah sebagai Pengerusi. Pada tahun kewangan ini, beliau menghadiri tujuh (7) daripada lapan (8) mesyuarat Lembaga yang telah dijadualkan. Beliau juga tidak mempunyai sebarang kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan Syarikat, kecuali beliau merupakan Pengarah di syarikat MMC Corporation Bhd, sebuah syarikat yang mempunyai subsidiari yang bergiat dalam pengendalian perniagaan yang sama seperti yang diceburi oleh Northport (Malaysia) Bhd. 66 I NCB HOLDINGS BHD ANNUAL REPORT 2011

69 PROFILE OF DIRECTORS PROFIL PENGARAH Dato Seri Dr. Haji Arshad bin Haji Hashim Independent Non-Executive Director Pengarah Bebas Bukan Eksekutif Aged 64, Dato Seri Dr. Haji Arshad bin Haji Hashim, was appointed to the Board of Directors of NCB Holdings Bhd on 20 February He served for over 30 years in the Malaysian Civil Service starting as the Assistant Secretary of the Economic Division in the Ministry of Finance and rising to the position of State Financial Officer of Penang in Amongst other positions held, was as Director of Bumiputera Participation Division, Prime Minister s Department, Penang, Director General of Tourism Malaysia and Deputy Secretary General (Finance and Development) Ministry of Education. He retired in the year 2005 as the Secretary General, Ministry of Information, Malaysia. He holds a Doctor of Philosophy from Universiti Pertanian Malaysia, a Master in Economics from University of Vanderbilt, USA and Bachelor of Arts (Econs) (Honours) degree from University of Malaya. He currently also sits on the Board of Bintulu Port Holdings Berhad. During the financial year, he attended all eight (8) scheduled meetings of the Board. He does not have any personal interest in any business arrangements involving the Company, except that he is a director in Bintulu Port Holdings Berhad, a company having a subsidiary engaged in the same field of activities as Northport (Malaysia) Bhd. Berusia 64 tahun, Dato Seri Dr. Haji Arshad bin Haji Hashim menyertai Lembaga Pengarah NCB Holdings Bhd pada 20 Februari Beliau mempunyai latar belakang perkhidmatan lebih 30 tahun dalam Perkhidmatan Awam Malaysia, bermula sebagai seorang Penolong Setiausaha Bahagian Ekonomi, Kementerian Kewangan. Kemudian, beliau terus dinaikkan ke jawatan Pegawai Kewangan Negeri Pulau Pinang dalam tahun Antara jawatan yang pernah beliau sandang adalah sebagai Pengarah, Bahagian Penyertaan Bumiputera, Jabatan Perdana Menteri, Pulau Pinang; Ketua Pengarah Tourism Malaysia dan Timbalan Ketua Setiausaha (Kewangan dan Pembangunan) Kementerian Pelajaran. Beliau bersara dari perkhidmatan awam sebagai Ketua Setiausaha, Kementerian Penerangan Malaysia dalam tahun Seorang pemegang ijazah Doktor Falsafah dari Universiti Pertanian Malaysia, Master of Economics dari Universiti Vanderbilt, Amerika Syarikat dan Sarjana Muda Sastera (Ekonomi) (Kepujian) dari Universiti Malaya. Beliau juga menganggotai Lembaga Pengarah Bintulu Port Holdings Berhad. Pada tahun kewangan ini, beliau menghadiri kesemua lapan (8) mesyuarat Lembaga yang diadakan. Beliau juga tidak mempunyai sebarang kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan Syarikat, kecuali beliau merupakan pengarah di syarikat Bintulu Port Holdings Berhad, sebuah syarikat yang mempunyai subsidiari yang bergiat dalam pengendalian perniagaan yang sama seperti yang diceburi oleh Northport (Malaysia) Bhd. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 67

70 PROFILE OF DIRECTORS PROFIL PENGARAH Dato Haji Rahmat bin Jamari Non-Independent Non-Executive Director Pengarah Bukan Bebas Bukan Eksekutif Aged 68, Dato Haji Rahmat bin Jamari joined the Board of Directors of NCB Holdings Bhd on 8 September He obtained his LLB from the University of Singapore in Upon graduation, he joined the Malaysian Judicial and Legal service and served as a Deputy Public Prosecutor, Magistrate and President of Sessions Court. He next joined Bumiputra Merchant Bankers Berhad in 1973 and served as an Officer in the Corporate Finance Department until 1976 following which he joined the law firm of Shearn Delamore & Co, and subsequently became a partner. He retired from the law firm Shearn Delamore & Co, but has since established the legal firm of Rahmat Lim & Partners. Dato Haji Rahmat was the Chairman of Klang Container Terminal Bhd when it was privatised in 1986 and also Chairman of Klang Port Management Sdn Bhd when the rest of Port Klang was privatised in He has since resigned from Klang Port Management Sdn Bhd in year Presently, he is a director in Permodalan Negeri Selangor Berhad and Northport (Malaysia) Bhd. During the financial year, he attended seven (7) of the eight (8) scheduled meetings of the Board. He does not have any personal interest in any business arrangements involving the Company, except that he is a Nominee Director of Permodalan Nasional Berhad, whose managed funds are a major shareholder of the Company. He is also a Director of Schenker Logistics Sdn. Bhd., a company engaged in the same field of activities as Kontena Nasional Berhad. Berusia 68 tahun, Dato Haji Rahmat bin Jamari menyertai Lembaga Pengarah NCB Holdings Bhd pada 8 September Beliau memperolehi ijazah LLB dari University of Singapore dalam tahun Selepas menamatkan pengajian, beliau menyertai perkhidmatan perundangan Malaysia dan telah berkhidmat sebagai seorang Timbalan Pendakwa Raya, Majistret dan Yang DiPertua Mahkamah Sesyen. Beliau kemudiannya menyertai Bumiputra Merchant Bankers Berhad dalam tahun 1973 dan berkhidmat sebagai seorang Pegawai dalam Jabatan Kewangan Korporat sehingga tahun 1976, dimana beliau menyertai firma guaman Shearn Delamore & Co, dan seterusnya menjadi seorang rakan kongsi. Beliau telah bersara dari firma guaman Shearn Delamore & Co., tetapi telah menubuhkan firma guaman Rahmat Lim & Partners. Dato Rahmat adalah Pengerusi Klang Container Terminal Bhd semasa ianya diswastakan dalam tahun 1986 dan juga Pengerusi Klang Port Management Sdn Bhd ketika baki perkhidmatan Pelabuhan Klang diswastakan dalam tahun Beliau telah melepaskan jawatan sebagai Pengarah di Klang Port Management Sdn Bhd dalam tahun Beliau adalah Pengarah di Permodalan Negeri Selangor Berhad dan Northport (Malaysia) Bhd. Pada tahun kewangan ini, beliau menghadiri tujuh (7) daripada lapan (8) mesyuarat Lembaga yang telah dijadualkan. Beliau juga tidak mempunyai sebarang kepentingan peribadi dan urusan perniagaan yang melibatkan Syarikat, kecuali beliau merupakan Pengarah Namaan Permodalan Nasional Berhad, dimana dana yang dikendalikannya merupakan pemegang saham utama Syarikat. Beliau adalah juga seorang Pengarah dalam Schenker Logistics Sdn. Bhd., sebuah syarikat yang bergiat dalam pengendalian perniagaan yang sama seperti Kontena Nasional Berhad. 68 I NCB HOLDINGS BHD ANNUAL REPORT 2011

71 PROFILE OF DIRECTORS PROFIL PENGARAH Datuk Khoo Eng Choo Independent Non-Executive Director Pengarah Bebas Bukan Eksekutif Aged 69, Datuk Khoo Eng Choo joined the Board of Directors of NCB Holdings Bhd on 30 March He is a Chartered Accountant and a member of the Malaysian Institute of Certified Public Accountant ( MICPA ) and Malaysian Institute of Accountants ( MIA ). He was awarded a Masters in Business Administration (Hons) from University of Bath, England. For over a decade prior to 2002, Datuk Khoo has served in key leadership positions in Pricewaterhouse and PricewaterhouseCoopers in Malaysia, Asia and its World Firm. He had served in the capacity as an independent director in public listed companies and in senior capacities in the Councils of professional and management institutes in Malaysia and Asia. Currently he is a Director in Kontena Nasional Berhad and Malaysian Marine and Heavy Engineering Holdings Bhd. During the financial year, he attended seven (7) of the eight (8) scheduled meetings of the Board. He does not have any personal interest in any business arrangements involving the Company. Berusia 69, Datuk Khoo Eng Choo menyertai Lembaga Pengarah NCB Holdings Bhd pada 30 Mac Beliau adalah seorang akauntan yang bertauliah dan juga ahli Institut Akauntan Awam Bertauliah Malaysia ( MICPA ) dan Institut Akauntan Malaysia ( MIA ). Beliau telah dianugerahkan Masters in Business Administration (Hons) oleh Universiti Bath, England. Selama satu dekad sebelum 2002, Datuk Khoo telah berkhidmat dalam beberapa jawatan kepimpinan di Pricewaterhouse dan PricewaterhouseCoopers di Malaysia, Asia dan juga di Firma Antarabangsa. Beliau juga telah berkhidmat dalam peranan sebagai pengarah bebas di beberapa syarikat tersenarai dan juga dalam peranan kanan di Majlis profesional dan pengurusan di Malaysia dan Asia. Pada masa ini beliau adalah seorang Pengarah di Kontena Nasional Berhad dan Malaysian Marine and Heavy Engineering Holdings Bhd. Pada tahun kewangan ini, beliau menghadiri tujuh (7) daripada lapan (8) mesyuarat Lembaga yang telah dijadualkan. Beliau juga tidak mempunyai sebarang kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan Syarikat. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 69

72 PROFILE OF DIRECTORS PROFIL PENGARAH Dato Zuraidah binti Atan Non-Independent Non-Executive Director Pengarah Bukan Bebas Bukan Eksekutif Aged 53, Dato Zuraidah binti Atan was appointed to the Board of Directors of NCB Holdings Bhd on 22 February A member of the Malaysian Bar, she is currently in legal practice with her own legal firm, Chambers of Zuraidah Atan since year Starting her career as an officer in a bank, she has more than 25 years experience in the banking industry. She also served for a period as President/Chief Executive Officer of an investment bank. She holds a Bachelor of Laws (Honours) from the University of Buckingham, England and was called to the Malaysian Bar in A former student of Tunku Kurshiah College, Dato Zuraidah also sits on the Boards of Universiti Utara Malaysia, Kenanga Islamic Investors Berhad, Northport (Malaysia) Bhd, Syarikat Malacca Straits Inn Sdn Bhd and Kumpulan Melaka Berhad. She has also been appointed as Deputy Chairman of Melaka ICT Holdings Sdn Bhd, a wholly owned agency of Melaka State. She is an arbitrator in the KL Regional Centre for Arbitration and serves as an Honorary Advisor to National Cancer Society of Malaysia (NCSM) a non-governmental organisation engaged in cancer awareness and charity. During the financial year, she attended all eight (8) scheduled meetings of the Board. She does not have any personal interest in any business arrangements involving the Company, except that she is a Nominee Director of Permodalan Nasional Berhad, whose managed funds are a major shareholder of the Company. Berusia 53 tahun, Dato Zuraidah binti Atan menyertai Lembaga Pengarah NCB Holdings Bhd pada 22 Februari Seorang ahli Malaysian Bar, beliau sekarang adalah seorang Peguambela dan Peguamcara di dalam firma guaman beliau sendiri Chambers of Zuraidah Atan yang telah ditubuhkan dalam tahun Memulakan kerjaya beliau sebagai seorang pegawai bank dan mempunyai pengalaman dalam industri perbankan lebih 25 tahun. Beliau juga pernah berkhidmat sebagai Presiden/Ketua Pegawai Eksekutif sebuah bank pelaburan. Beliau seorang pemegang Ijazah Sarjana Muda Undang-undang (Kepujian) dari Universiti Buckingham, England dan diterima menganggotai Malaysian Bar pada Seorang bekas pelajar Kolej Tunku Kurshiah, Dato Zuraidah juga adalah seorang ahli Lembaga Pengarah, di Universiti Utara Malaysia, Kenanga Islamic Investors Berhad, Northport (Malaysia) Bhd, Syarikat Malacca Straits Inn Sdn Bhd dan Kumpulan Melaka Berhad. Beliau juga telah dilantik sebagai Naib Pengerusi bagi Melaka ICT Holdings Sdn Bhd, anak syarikat Kerajaan Negeri Melaka. Beliau merupakan seorang penimbangtara di Pusat Serantau Kuala Lumpur bagi Timbangtara dan Penasihat Kehormat kepada Persatuan Kebangsaan Kanser Malaysia (NCSM) sebuah badan amal bukan kerajaan yang terlibat dalam kerja-kerja kebajikan kanser. Pada tahun kewangan ini, beliau menghadiri kesemua lapan (8) mesyuarat Lembaga yang telah dijadualkan. Beliau tidak mempunyai sebarang kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan Syarikat, kecuali beliau merupakan Pengarah Namaan Permodalan Nasional Berhad, dimana dana yang dikendalikan merupakan pemegang saham utama Syarikat. 70 I NCB HOLDINGS BHD ANNUAL REPORT 2011

73 PROFILE OF DIRECTORS PROFIL PENGARAH Datuk Abdul Malek bin Abdul Aziz Independent Non-Executive Director Pengarah Bebas Bukan Eksekutif Aged 74, Datuk Abdul Malek bin Abdul Aziz was appointed to the Board of Directors of NCB Holdings Bhd on 8 September He previously served for 38 years in the Malaysian Public Service, starting as an Assistant Secretary and retired as the Senior Deputy Secretary-General in the Prime Minister s Department. Amongst the key positions he previously held were Secretary to the National Security Council, Director-General of Immigration, Deputy Secretary- General of the Ministry of Home Affairs, and Deputy Director-General of the Public Services Department. He was a Chairman for the Public Services Tribunal from 1991 till A law graduate from the University of Singapore, he also holds a Diploma in International Relations and attended a course at the Royal College of Defense Studies, United Kingdom. During the financial year, he attended all eight (8) scheduled meetings of the Board. He does not have any personal interest in any business arrangements involving the Company. Berusia 74 tahun, Datuk Abdul Malek bin Abdul Aziz menyertai Lembaga Pengarah NCB Holdings Bhd pada 8 September Beliau pernah berkhidmat selama 38 tahun dalam Perkhidmatan Awam Malaysia, bermula sebagai seorang Penolong Setiausaha dan akhirnya bersara sebagai Timbalan Ketua Setiausaha Kanan di Jabatan Perdana Menteri. Diantara jawatan penting yang beliau pernah sandang ialah Setiausaha kepada Majlis Keselamatan Negara; Ketua Pengarah Imigresen; Timbalan Ketua Setiausaha, Kementerian Hal Ehwal Dalam Negeri dan Timbalan Ketua Pengarah, Jabatan Perkhidmatan Awam. Beliau dilantik sebagai Pengerusi Tribunal Perkhidmatan Awam mulai tahun 1991 hingga Seorang lulusan jurusan undang-undang daripada University of Singapore, beliau juga memiliki Diploma in International Relations dan pernah menghadiri kursus di Royal College of Defense Studies, United Kingdom. Pada tahun kewangan ini, beliau menghadiri kesemua lapan (8) mesyuarat Lembaga yang telah dijadualkan. Beliau juga tidak mempunyai sebarang kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan Syarikat. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 71

74 PROFILE OF DIRECTORS PROFIL PENGARAH Syed Agel bin Syed Salim Non-Independent Non-Executive Director Pengarah Bukan Bebas Bukan Eksekutif Aged 66, Syed Agel bin Syed Salim joined the Board of Directors on 8 September An Associate Member of the Institute of Chartered Secretaries and Administrators, Syed Agel started his career with the Auditor-General s Office in In 1974, he joined Dunlop Malaysian Industries Bhd as its Internal Auditor and later on as EDP Project Manager. In 1983, he joined Permodalan Nasional Berhad where he served for 17 years initially as its Financial and Management Audit Manager and eventually retired in July 2000 as General Manager of its Unit Trust Division. Presently, he also serves on the Board of HeiTech Padu Berhad and Kontena Nasional Berhad. During the financial year, he attended all eight (8) scheduled meetings of the Board. He does not have any personal interest in any business arrangements involving the Company, except that he is a Nominee Director of Permodalan Nasional Berhad, whose managed funds are a major shareholder of the Company. Berusia 66 tahun, Syed Agel bin Syed Salim menyertai Lembaga Pengarah pada 8 September Seorang Associate Member Institute of Chartered Secretaries and Administrators, Syed Agel memulakan kerjayanya dengan Jabatan Audit Negara pada tahun Pada tahun 1974, beliau berkhidmat dengan Dunlop Malaysian Industries Bhd sebagai Juruaudit Dalaman dan seterusnya sebagai Pengurus Projek EDP. Dari tahun 1983, beliau berkhidmat dengan Permodalan Nasional Berhad selama 17 tahun, bermula dengan jawatan sebagai Pengurus Audit Kewangan dan Pengurusan dan akhirnya bersara dari perkhidmatan dalam bulan Julai 2000 sebagai Pengurus Besar Bahagian Amanah Saham. Beliau juga adalah Pengarah di HeiTech Padu Berhad dan Kontena Nasional Berhad. Pada tahun kewangan ini, beliau menghadiri kesemua lapan (8) mesyuarat Lembaga yang telah dijadualkan. Beliau juga tidak mempunyai sebarang kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan Syarikat, kecuali beliau merupakan Pengarah Namaan Permodalan Nasional Berhad, dimana dana yang dikendalikannya merupakan pemegang saham utama Syarikat. 72 I NCB HOLDINGS BHD ANNUAL REPORT 2011

75 PROFILE OF DIRECTORS PROFIL PENGARAH Datuk Nasarudin bin Md Idris Non-Independent Non-Executive Director Pengarah Bukan Bebas Bukan Eksekutif Datuk Nasarudin bin Md Idris, aged 56, was appointed to the Board of Directors of NCB Holdings Bhd on 6 July He is the President and Chief Executive Officer of MISC Berhad, a subsidiary of PETRONAS. He is also the Chairman of Malaysia Marine & Heavy Engineering Holdings Berhad and serves on several boards, including Bintulu Port Holdings Berhad and AET Tanker Holdings Sdn. Bhd. Datuk Nasarudin graduated from University of Malaya with a Bachelor of Arts (Honours) Degree, and holds a Masters Degree in Business Administration from Henley - The Management College (Brunel University), United Kingdom. He had also attended the Stanford Executive Programme at Stanford University, United States of America. Datuk Nasarudin joined Petroliam Nasional Berhad ( PETRONAS ) in 1978 and has held various positions within the PETRONAS Group including as Vice President, Corporate Planning and Development; Group Chief Executive Officer, KLCC Holdings Berhad; Senior General Manager, Corporate Planning and Development Division; Executive Assistant to the President; General Manager, Marketing of PETRONAS Dagangan Berhad; General Manager, Corporate Development and General Manager, Group Strategic Planning. He was also a Board member of PETRONAS, and is currently a member of the Management Committee of PETRONAS. He also sits on the Board of MISC Berhad. During the financial year, he attended five (5) of the eight (8) scheduled meetings of the Board. He does not have any personal interest in any business arrangements involving the Company, except that he is a Nominee Director of MISC Berhad, one of the major shareholders of the Company. He is also a Director in MISC Integrated Logistics Sdn Bhd, a company engaged in the same field of activities as Kontena Nasional Berhad. Datuk Nasarudin bin Md Idris, berusia 56 tahun, telah dilantik menjadi Pengarah di NCB Holdings Bhd pada 6 Julai Beliau adalah Presiden dan Ketua Pegawai Eksekutif MISC Berhad, sebuah anak syarikat PETRONAS. Beliau juga merupakan Pengerusi Malaysia Marine & Heavy Engineering Holdings Berhad dan berkhidmat di beberapa Lembaga Pengarah, termasuk Bintulu Port Holdings Berhad dan AET Tanker Holdings Sdn. Bhd. Datuk Nasarudin berkelulusan Ijazah Sarjana Muda Sastera daripada Universiti Malaya dan memegang Ijazah Sarjana dalam Pentadbiran Perniagaan daripada Henley The Management College (Universiti Brunel), United Kingdom. Beliau juga telah menjalani Program Eksekutif Stanford di Universiti Stanford, di Amerika Syarikat. Datuk Nasarudin menyertai Petroliam Nasional Berhad ( PETRONAS ) pada tahun 1978 dan telah memegang pelbagai jawatan dalam Kumpulan PETRONAS termasuk sebagai Naib Presiden, Perancangan Korporat dan Pembangunan; Ketua Pegawai Eksekutif Kumpulan KLCC Holdings Berhad; Pengurus Besar Kanan, Bahagian Perancangan Korporat dan Pembangunan; Pembantu Eksekutif kepada Presiden; Pengurus Besar, Pemasaran di PETRONAS Dagangan Berhad; Pengurus Besar, Pembangunan Korporat dan Pengurus Besar, Perancangan Strategik. Beliau juga pernah berkhidmat sebagai ahli Lembaga Pengarah PETRONAS dan kini merupakan ahli Jawatankuasa Pengurusan di PETRONAS. Beliau adalah juga ahli Lembaga Pengarah di MISC Berhad. Pada tahun kewangan ini, beliau menghadiri lima (5) daripada lapan (8) mesyuarat Lembaga seperti yang telah dijadualkan. Beliau tidak mempunyai sebarang kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan Syarikat, kecuali beliau merupakan Pengarah Namaan di MISC Berhad, salah satu pemegang saham terbesar di Syarikat. Beliau juga merupakan Pengarah di MISC Integrated Logistics Sdn Bhd, sebuah syarikat yang berkecimpung dalam aktiviti yang serupa dengan Kontena Nasional Berhad. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 73

76 ADDITIONAL INFORMATION ON THE BOARD OF DIRECTORS MAKLUMAT TAMBAHAN MENGENAI LEMBAGA PENGARAH 1. Family relationships with any director and major shareholders. None of the directors have family relationship with any other directors or major shareholders of the Company. 2. Convictions of offences (within the past 10 years, other than traffic offences). None of the directors have any convictions for offences other than traffic offences, if any. 3. Any conflict of interest with the Company or its subsidiaries. None of the directors have any conflict of interest with the Company or its subsidiaries, except for four (4) directors who are also directors in companies which are operating in the same industry as our port operations and logistics operations. This information is also highlighted in their respective profile of directors on page 64 to Nationality All directors of the Company including those standing for re-election are Malaysians. 1. Pertalian kekeluargaan dengan mana-mana pengarah dan pemegang saham utama. Tidak ada pengarah yang mempunyai pertalian kekeluargaan dengan mana-mana pengarah lain ataupun manamana pemegang saham utama Syarikat. 2. Sabitan atas kesalahan-kesalahan (dalam tempoh 10 tahun yang lalu, kecuali kesalahan-kesalahan lalulintas jalan raya). Tidak ada pengarah yang disabit kesalahan yang lain daripada kesalahan lalu-lintas jalan raya, jika ada. 3. Kepentingan bertentangan dengan Syarikat atau subsidiarinya. Tidak ada pengarah yang mempunyai kepentingan yang bertentangan dengan Syarikat atau subsidiarinya, kecuali bagi empat (4) orang pengarah dimana mereka juga merupakan pengarah didalam syarikat yang lain yang juga beroperasi didalam industri yang sama seperti operasi pelabuhan dan operasi logistik. Maklumat ini juga dinyatakan dilampiran profil pengarah di mukasurat 64 sehingga Kewarganegaraan Semua pengarah syarikat termasuk pengarah-pengarah yang menawarkan diri untuk dilantik semula adalah warganegara Malaysia. 74 I NCB HOLDINGS BHD ANNUAL REPORT 2011

77 STATEMENT ON CORPORATE GOVERNANCE Pursuant to Paragraph of The Main Market Listing Requirements of Bursa Malaysia Securities Berhad The Board of Directors ( the Board ) of NCB Holdings Bhd ( NCB ) wishes to confirm that the Board had continuously ensured to maintain the highest standards of Corporate Governance throughout the financial year 31 December In ensuring the application of the principles of Corporate Governance in its business activities, the Board regularly reviews and maintains all identifiable means to ensure that the company s Corporate Governance Standard are on par with the code and to that effect has put in place self regulating processes that are embedded in the operating procedures of the company. The Board is pleased to present the Statement on Corporate Governance for the year ending 31 December 2011 outlining the application of the principle as set out in the Malaysian Code on Corporate Governance and the best practices of the Code. experience, requisite range of skills and competence to enable them to discharge their duties and responsibilities effectively. All directors on the Board have gained extensive experience with their many years of experience on company Boards and also as professionals in their respective fields of expertise. The Board is also satisfied that it has achieved the optimal size of Board that reflects the need of the kind of businesses the Company is involved in. NCB Board has four independent directors, which complies with the Main Market Listing Requirements, which stipulates that no less than one third of the Board must be comprised of Independent Directors. A brief profile of each director is set out on page 64 to 73 of this Annual Report. 1. BOARD OF DIRECTORS The ultimate decision making Board in the Group is the Board of the Holding company, NCB. It has the responsibility of overall governance of the Group. Together with the subsidiary Boards, it takes full responsibility in ensuring businesses are carried out in compliance with governance practices and in a transparent and objective manner. Its overall objective is to enhance the value of its shareholders by achieving the strategic objectives of the Group within the confines of the Code of Corporate Governance. 1.1 Composition Of The Board As at the date of this Annual Report, the Board is represented by ten directors, five of whom are non-independent nominees directors representing two of our single largest shareholders, whilst four are independent directors. The Group Managing Director is an executive director, in addition one of the member of the Board is a women. The composition of the members reflected in ratio for the year under review are as follows :- Ratio % Executive Director (also the Group Managing Director) 1/ Non-Independent Non-Executive Directors (including the Chairman) 5/ Independent Non-Executive Directors 4/ With the current composition, the Board feels that its members have the necessary knowledge, 1.2 Board Balance The wide mix of different skill sets and professional diversity of the members provides an atmosphere where deliberations draw a wide range of view points and are at times challenged before a decision is arrived at. The Board of NCB acknowledges that a well balanced board will benefit the organization in quickly appraising matters at hand and to competently arrive at decisions which will enhance the performance of the companies. The Chairman of the Board is a non-independent non-executive director with clear and distinction separation in his duties and responsibilities from that of the Group Managing Director. 1.3 Role of Chairman and Group Managing Director The Board has always made the distinction that the position of the Chairman and Group Managing Director does not reside with the same person. In this regards our Chairman, Tun Ahmad Sarji bin Abdul Hamid is a non-independent non-executive member of the Board. There is a clear and separate division of responsibility in the roles and duties of the Chairman and Group Managing Director. The Group Managing Director is the person involved in the day- to-day of running of the affairs of the Company. 1.4 Board of Responsibilities and Duties The Board of NCB has the ultimate responsibility in providing overall stewardship over the management of the companies in the Group. The primary NCB HOLDINGS BHD ANNUAL REPORT 2011 I 75

78 STATEMENT ON CORPORATE GOVERNANCE Pursuant to Paragraph of The Main Market Listing Requirements of Bursa Malaysia Securities Berhad responsibility includes maintaining high Corporate Governance, formulating and sustaining long term strategic direction and overseeing the performance and proper conduct of business to enhance value creation for shareholders. At its meetings the Board regularly reviews the business financial results, adopting and reviewing risk management initiatives, oversees the implementation and effectiveness of Internal Control Systems, enforcing the compliance of legal and statutory requirements within the Group. The independent non-executive directors are active in their roles providing judgment and contributing actively in the deliberations on policies, providing unbiased and independent views when required. They also act in a manner to protect the interest of the minority shareholders in respect of policies and decisions deliberated by the Board. The functions of the Board can be summarised as follows :- Reviewing and guiding the Company s and Group s corporate strategy and adopting a strategic plan for the Company through the development of risk policy, annual budgets and long term business plans, reviewing major capital expenditures, acquisitions and divestures; Monitoring corporate performance and the conduct of the Group s business and ensuring compliance to best practices and principles of corporate governance; Identifying and implementing appropriate systems to manage principle risks. The Board undertakes this responsibility through the Risk Management Committee and the Audit Committee; Ensuring the existence of and reviewing the adequacy and soundness of the Group s financial systems, internal control systems and that management systems are in compliance with applicable standards, laws and regulations; Ensuring a transparent Board nomination and remuneration process including succession planning for top management and ensuring the skills and experiences of the directors in the Board are adequate for the discharge of their responsibilities and the caliber of the non-executive directors effectively bringing in independence in the decision making process; Developing and implementing an investor relation programme or shareholders communication policy for the Company. 1.5 Board Evaluation The Board believes in the process of full participation. Although the Board has not put in a structured evaluation mechanism, the Chairman encourages members to discuss any matters for deliberation with open feedback, constructive criticism and exchanging of information. However, all members of the Board sub-committees are evaluated on a 3-yearly basis by the Nomination Committee before they are either re-appointed or rotated. 2. BOARD MEETINGS 2.1 Board Structure and Procedures The Board meets on a scheduled basis at least a minimum of six (6) times a year, special Board meetings are held when the need arises to consider special matters. The NCB Board governs the subsidiary companies through the subsidiary Boards which are made up of non-executive directors nominated by NCB. These scheduled Board meetings also have structured agenda that are drawn up for the Board s deliberation and decision making. All Board meetings are set before the beginning of the year with firm dates, venue and time to enable directors to plan their time to ensure full attendance. The Board meeting also have a pre-determined set of matters for their review. Among these are the financial performance of the Group, the operating performances and achievement of objectives and goals of the Group. All Board papers for consideration and discussion will be circulated to members with the requisite lead time to ensure directors have sufficient time to study them and be prepared for meaningful discussions. The company secretary issues a notice of meeting prior to each Board meeting together with relevant Board papers and any corporate announcement for release to Bursa Malaysia. Management and professional advisor may be invited by the Board if there is a need for information or advice on matters that require expertise knowledge. 2.2 Number of Board Meetings and Directors Attendance For the year under review, the Board held six (6) regular meetings excluding the Annual General Meeting and two (2) special Board meeting. The matter for review during these meetings included the review of the financial performances of the Group, 76 I NCB HOLDINGS BHD ANNUAL REPORT 2011

79 STATEMENT ON CORPORATE GOVERNANCE Pursuant to Paragraph of The Main Market Listing Requirements of Bursa Malaysia Securities Berhad the quarterly performance and reporting, performance review of the subsidiaries, risk management matters, internal controls and reports of the sub-committees of the Board. All proceeding of the Board meetings are duly recorded and minuted clearly stating the issues discussed and decisions arrived at. The following are details of the number of the Board meetings held during the year 2011 and the record of director s attendance during those meetings :- Dates of Scheduled Board Meetings 65th Meeting - 22 February th Meeting - 27 April th Meeting - 27 June th Meeting - 22 August th Meeting - 24 October th Meeting - 20 December 2011 Dates of Special Board Meetings Special Board - 15 March 2011 Special Board - 10 May 2011 Members Attendance Number of Board Meetings Attended / Held Percentage of Attendance Tun Ahmad Sarji bin Abdul Hamid 8/8 100% Dato Abdul Samad bin Mohd Dom 8/8 100% Tan Sri Dato (Dr.) Ir. Wan Abdul bin Haji Wan Yaacob 7/8 87% Dato Seri Dr. Haji Arshad bin Haji Hashim 8/8 100% Dato Haji Rahmat bin Jamari 7/8 87% Dato Zuraidah binti Atan 8/8 100% Datuk Abdul Malek bin Abdul Aziz 8/8 100% Datuk Khoo Eng Choo 7/8 87% Datuk Nasarudin bin Md Idris 5/8 63% Syed Agel bin Syed Salim 8/8 100% 2.3 Directors Training and Education All directors of the Company have full opportunity to attend training through seminars, workshops and conferences. Directors are mindful and are further reminded at every Board meetings as the need to enhance competency by improving on their skills and knowledge to stay abreast with the ever-charging business environment, regulatory requirements and corporate governance developments. NCB Board of Directors have attended the mandatory Accreditation Program required by Bursa Malaysia Securities Berhad. For unavoidable reasons, Tun Ahmad Sarji bin Abdul Hamid was not able to attend any public seminars or formal training during the year, but he has participated in briefing sessions and presented talks and had thereby kept himself abreast of developments in the industry via his professional networks. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 77

80 STATEMENT ON CORPORATE GOVERNANCE Pursuant to Paragraph of The Main Market Listing Requirements of Bursa Malaysia Securities Berhad Details of training attended by Directors during the financial year 2011 are as shown below :- Name Course/Seminar No. of Days Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Hj. Wan Yaacob Corporate Governance Programme on Assessing The Risk and Control Environment Launch of the Corporate Integrity Pledge by PEMANDU 1/2 day 1 day Conference-MICG Investor Relation and Effective Corporate Communication Seminar on Whistleblower Protection Act 2010-Personal Data Protection Act 2011 and Price Control and Anti-Profiteering Act 2011 Board IT Governance and Risk Management Governance Programme The Board s Responsibilities for Corporate Culture-Selected Governance Concerns and Tools for Addressing Corporate Culture and Board Performance Institute of Internal Auditors Conference 1 day 1/2 day 2 days 1 day 2 days Dato Abdul Samad bin Mohd Dom Talk by Dr. Stephen Young - It s People Who Create Value, Not Money Corporate Governance Guide : Towards Boardroom Excellence 1 day 1 day Dato Haji Rahmat bin Jamari Dato Seri Dr. Haji Arshad bin Haji Hashim Corporate Governance Programme on Assessing The Risk and Control Environment Corporate Govenance Programme on Assessing The Risk and Control Environment International Auditors Conference Talk by Dr. Stephen Young - It s People Who Create Value, Not Money Corporate Governance Guide : Towards Boardroom Excellence 1 day 1 day 3 days 1 day 1 day Corporate Governance Programme on Assessing The Risk and Control Environment Multimodal /2 day 3 days 78 I NCB HOLDINGS BHD ANNUAL REPORT 2011

81 STATEMENT ON CORPORATE GOVERNANCE Pursuant to Paragraph of The Main Market Listing Requirements of Bursa Malaysia Securities Berhad Name Course/Seminar No. of Days Dato Zuraidah binti Atan Corporate Governance Guide : Towards Boardroom Excellence 1 day Strategic Due Diligence 1 day Port Finance and Investment day Directors - Voting Them In and Voting Out 1 day Datuk Abdul Malek bin Abdul Aziz Corporate Governance Programme on Assessing The Risk and Control Environment International Internal Auditors Conference 1/2 day 3 days Innovation and People : Making It Happen, Bandung, Indonesia 3 days Datuk Nasarudin bin Md Idris PETRONAS Directors Workshop 2011: Corporate Governance and Boardroom Issues in Challenging Times De-Mystifying Directors Duties and Their Implications Under The Listing Requirements Risk Management in Today s Economy 2 days 1 day 1 day Datuk Khoo Eng Choo PETRONAS Directors Workshop 2011: Corporate Governance and Boardroom Issues in Challenging Times De-Mystifying Directors Duties and Their Implications Under The Listing Requirements Risk Management in Today s Economy 2 days 1 day 1 day Syed Agel bin Syed Salim Talk by Dr. Stephen Young - It s People Who Create Value, Not Money Corporate Governance Programme on Assessing The Risk and Control Environment 9th Intermodal Africa 2011 Conference, Casablanca, Morocco 1 day 1/2 day 3 days NCB HOLDINGS BHD ANNUAL REPORT 2011 I 79

82 STATEMENT ON CORPORATE GOVERNANCE Pursuant to Paragraph of The Main Market Listing Requirements of Bursa Malaysia Securities Berhad 2.4 Supply of Information The supply of information to the Board is in an orderly and timely manner. The Board has put in place a reporting framework whereby the information on the operating subsidiaries is reported to the main Board through the Group Managing Director and the Chairman of the subsidiary Boards. For matter that requires more detailed attention, the Board has empowered the sub-committees to obtain all information that is required and to deliberate and to advise the main Board on the right course of action. It is through these channels that the Board cascades its policies and strategies to the respective managements. The nominee directors on the subsidiary Boards have the responsibility of ensuring that policies and directions of the NCB Board are kept in focus and strategies are implemented accordingly. All directors on the Board and committees of the Board have full and unrestricted access to senior management and the company secretary on all matters requiring information for deliberation and any regulatory and administrative matters. Information provided to the Board are compiled into reports via the Board papers which are circulated to directors in timely manner to enable them to discharge their duties and responsibilities effectively. All directors have the consent of the Board, whether acting as full Board or on individual capacity to take independent professional advice, where necessary in furtherance of their duties. 3. APPOINTMENT AND RE-ELECTION TO THE BOARD 3.1 Appointment to the Board The Board has mandated the Nomination Committee with the responsibility of identifying, accessing and recommending suitable candidates for appointment to the Board and Board Committees. The NCB Nomination Committee is comprised mainly of independent directors. The Chairman of the Nomination Committee is also the Chairman of the Board. The Nomination Committee carries out the assessment, evaluation of the potential candidates in respect of appropriate skills, knowledge, expertise, experience and professionalism and integrity. The Nomination Committee only recommends a candidate but the authority of appointment lies with the full Board. There were no new appointment of directors during the year Re-election of Directors The Company s Articles of Association provides that at least one third of the Directors including the Group Managing Director retire from the office at the Annual General Meeting. Any directors appointed during the year to fill a casual vacancy will retire at the next Annual General Meeting and may offer themselves for re-election. The Board has empowered the Nomination Committee to undertake the review cases of director who are seeking re-election. The committee also reviews cases of directors who retire in accordance with Section 129 of the Companies Act, 1965 for appointment. Details of directors who are seeking re-election and re-appointment at the coming Annual General Meeting are shown in the notice of the Annual General Meeting on page 4 to DIRECTORS REMUNERATION 4.1 Directors Remuneration Policy and Procedures The Board believes in a remuneration policy that fairly supports the directors undertaking responsibility and fiduciary duties in steering and growing this organization in achieving its long term strategies and to enhance the value of its shareholders. The remuneration committee is responsible for evaluating, deliberating and recommending to the Board the compensation and benefits that are fairly guided by market norms and industry practices for the business the company is in. The remuneration committee is also responsible for evaluating the executive directors salary. The responsibility of the remuneration committee also includes assisting the Board in putting in place a framework and benchmark value for other compensation and benefits to directors. The remuneration committee recommends the director fee payable to member of the Board and are deliberated and decided at the Board before it is presented at the Annual General Meeting for shareholders approval. The Board and Remuneration Committee strive to ensure a fair structure of compensation for an organization of this size and market sector and business complexity. It is also aimed at attracting and retaining directors who have the right caliber, skills and experience to contribute meaningfully towards the success of the business. Apart from their annual remuneration the directors are also paid an attendance allowance to defray their travel expenses and related cost for attending the Board Meetings. 80 I NCB HOLDINGS BHD ANNUAL REPORT 2011

83 STATEMENT ON CORPORATE GOVERNANCE Pursuant to Paragraph of The Main Market Listing Requirements of Bursa Malaysia Securities Berhad 4.2 Basic Salaries and Fees All non-executive directors receive an annual director fee upon approval of shareholders at the Annual General Meeting. The executive director however, receive a remuneration package which includes a basic salary, discretionary bonus and other benefitsin-kind. The Remuneration Committee and the Board implements a formal and transparent procedure for the approval of remuneration for executive directors and senior management of the Group. This remuneration package is reviewed annually by the Remuneration Committee in relation to the market demand and supply, scale of responsibility, performance of the business and individual performance evaluation. Although the salary of the executive director is subject to annual review, all other benefits-in-kind are specified in the contract of service. The benefitsin-kind include company car and driver, personal telecommunications facilities, club memberships, medical and dental coverage. Range of Remuneration 5. BOARD COMMITTEES Executive Director Details of directors remuneration for the financial year ended 31 December 2011 are as follows:- Non- Executive Directors RM50,000-RM100,000-5 RM100,001-RM150,000-4 RM1,200,001-RM1,250, As part of its reporting structure the NCB Board has put in place several committees to undertake specific duties of deliberating, evaluating on a continuous basis the mechanism, systems and framework of business processes that should be in place to ensure the achievement of business strategies and targets. Apart from monitoring the defined activities under their purview, these committee would also undertake the Boards delegated role of detailed review of matters that require Boards deliberation and approval. All such committees have been empowered by the Board to act as a mechanism to control, monitor and to carry out whatever necessary detailed study and review of their respective areas of expertise and to provide feedback to the Board for its decision making. The empowerment to these committees is done by delegating its authority and defining its scope of work in the Terms of Reference which are normally distinct and different between the committees. The Terms of Reference generally empowers them to deliberate, examine issues, provide assurance and accountability to the Board through their feedback and recommendations. During the year under review the following committees of the Board were in place :- Audit Committee Nomination Committee Remuneration Committee Risk Management Committee Finance and Investments Committee Syariah Committee Audit Committee The members of the Audit Committee and their record of attendance at meetings held during the year are as follows :- Number of Meetings Attended/Held Datuk Abdul Malek bin Abdul Aziz 7/7 Dato Seri Dr. Haji Arshad bin 7/7 Haji Hashim Datuk Khoo Eng Choo 7/7 Syed Agel bin Syed Salim 7/7 The Audit Committee comprises of four nonexecutive directors of whom three are independent directors. In accordance with the code on Corporate Governance all members of the Audit Committee has the experience and knowledge to read, interpret and analyse financial information. One of the member Datuk Khoo Eng Choo fulfills the requirement of being a member of an accounting association or body. The chairman is a non-executive independent director. The Terms and Reference defined by the Board clearly state the scope of the role and the responsibility the committee has to efficiently discharge its duties and to ensure quality and integrity of internal controls. Its Terms of Reference also requires that the committee provides assurance on the company s practices and processes, soundness of its internal control system and compliance to Corporate Governance and other listing requirements. Fuller details of the Audit Committee s Terms of Reference and its report for the year under review are presented on pages 103 to 105 of this Annual Report. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 81

84 STATEMENT ON CORPORATE GOVERNANCE Pursuant to Paragraph of The Main Market Listing Requirements of Bursa Malaysia Securities Berhad Nomination Committee The Nomination Committee consists of three Board members where two of them are non-executive non-independent directors. The Chairman is also the chairman of the Board of NCB Holdings Bhd. The Committee s duties and other responsibilities include :- Making appropriate recommendations to the Board on matters of renewal and extension of tenure, retirement and appointment and re-appointment of directors. Assessing and recommending any candidate for directorship and ensuring an appropriate plan for Board succession for the Group. Reviewing annually the mix of skills and experiences and the effectiveness of the Board as a whole, the Committees of the Board and contributions of each individual director to the effective decision making process of the Board. In the case of position of independent nonexecutive directors, the Nomination Committee will also evaluate the candidates ability to discharge such responsibility as expected of an independent non-executive director. During the year under review the Nomination Committee met a total of two times to carry out its responsibilities. Remuneration Committee Number of Meetings Attended/Held Tun Ahmad Sarji bin Abdul Hamid 2/2 Datuk Abdul Malek bin Abdul Aziz 2/2 Datuk Khoo Eng Choo 2/2 Number of Meetings Attended/Held Datuk Abdul Malek bin Abdul Aziz 2/2 Datuk Khoo Eng Choo 2/2 Datuk Nasarudin bin Md Idris 2/2 Syed Agel bin Syed Salim 2/2 The Remuneration Committee comprises of four Board members of whom two are independent nonexecutive directors and two non-independent nonexecutive directors. The chairman is an independent director. Its Terms of Reference, as set by the Board defines its responsibilities and duties. Generally, the remuneration committee assists the Board in reviewing, assessing, formulating and recommending remuneration and reward packages for directors and senior management of the companies in the Group. Its responsibilities and duties include :- To review and recommend to the Board remuneration policies and packages for senior management including the benefits-in-kind and contract terms and conditions; To review and recommend to the Board Remuneration for director of the companies in the Group including executive and non-executive directors, their benefits-in-kind and other emoluments; The committee will also deal with any other matters relating to remuneration, rewards and compensation as referred to it by the Board. During the year under review the Remuneration Committee met a total of two times. Risk Management Committee Number of Meetings Attended/Held Dato Haji Rahmat bin Jamari 3/3 Tan Sri Dato (Dr.) Ir. Wan Abdul 3/3 Rahman bin Haji Wan Yaacob Dato Zuraidah binti Atan 3/3 Datuk Khoo Eng Choo 2/3 Syed Agel bin Syed Salim 3/3 The Risk Management Committee comprises of five Board members of whom three are independent nonexecutive directors whilst three are non-independent non-executive directors. The Risk Management Committee has its Terms of Reference as set by the Board clearly stating its scope of responsibilities and duties. Primarily the responsibilities are as follows :- Responsible to design and implement appropriate system and framework to manage risks in the Group of companies; To oversee the management s policies, procedures and practices in identifying, analyzing, assessing and controlling or mitigating risk in the Group; Responsible to develop and implement in conjunction with the Audit Comittee procedures for monitoring and assessing risks that are determined to be auditable through the annual audit programmes; 82 I NCB HOLDINGS BHD ANNUAL REPORT 2011

85 STATEMENT ON CORPORATE GOVERNANCE Pursuant to Paragraph of The Main Market Listing Requirements of Bursa Malaysia Securities Berhad To ensure that there is a system of mitigating and managing risks with sound internal controls and with a view of long term viability of the business objectives. The Group has a risk management unit that is headed by a Risk Manager who carries out periodic reviews, monitoring of control measures identified by management for mitigating risks. The unit also assist in coordinating the risk activities within the Group with the assistance of several risk secretariats at the subsidiary company managing this risks. The Risk Manager reports directly to the Risk Management Committee via reports on the compliance and adequacy of managing and controlling risks identified. The Risk Management Committee also receives report on the overall Group risk scorecard and risk ratings at its scheduled meeting twice a year. During the year under review the Risk Management Committee met a total of three times. Finance and Investments Committee Number of Meetings Attended/Held Datuk Nasarudin bin Md Idris 4/4 Tan Sri Dato (Dr.) Ir. Wan Abdul 4/4 Rahman bin Haji Wan Yaacob Dato Zuraidah binti Atan 4/4 The Finance and Investments Committee comprises of three Board members of whom two are nonindependent non-executive directors. The Finance and Investments Committee has its Terms of Reference as set by the Board which defined its scope and responsibility and duties as follows :- Formulate and review dividend policy and practices and to make recommendations for change where deemed appropriate and necessary; Review the Group s development and investment funding policy and also the review of the Group s investment plans and practice and to make recommendations for change where deemed appropriate and necessary; Review the existing policy and practice on management of surplus fund and to make recommendations for change where deemed appropriate and necessary; Review the Budget and Business Plan and to make recommendations for change where deemed appropriate and necessary; Examine and evaluate issues that have a bearing on the Group s business on an ad-hoc basis as requested by the Board. During the year under review the Finance and Investments Committee met a total of four (4) times to carry out its responsibilities. Syariah Committee Number of Meetings Attended/Held Dato Dr. Abdul Halim bin Ismail 1/1 Prof. Dato Dr. Abdul Monir bin Yaacob 1/1 Prof. Dato Dr. Paduka Dr. Mahmood 1/1 Zuhdi bin Haji. Ab. Majid Dato Haji Rahmat bin Jamari 1/1 Dato Seri Dr. Haji Arshad bin Haji Hashim 1/1 The Syariah Committee comprises of five members. Three of the members are experts in the field of Syariah principles and applications and the other two are serving non-executive member of the NCB Board. The committee s duties and responsibilities include the following :- To identify, determine and advise the Board on the extend of compliance of the operation of the company in respect of; The establishment of the company relating to lease concession, agreements and deals structure. Operational activities of the companies in the Group in relation to Syariah compliant activities and non-compliant activities. Financial activities relating to placement of funds, financing structures and non Syariah elements in financial contracts. To advise the Board on any Syariah related issues pertaining to the industry the companies are operating in; To undertake and advise the Board on any Syariah matters as instructed by the Board; Review and evaluate capital structure policy and practice and to make recommendations for change where deemed appropriate and necessary; NCB HOLDINGS BHD ANNUAL REPORT 2011 I 83

86 STATEMENT ON CORPORATE GOVERNANCE Pursuant to Paragraph of The Main Market Listing Requirements of Bursa Malaysia Securities Berhad 6. ACCOUNTABILITY AND AUDIT 6.1 Financial Reporting The Board is committed to provide a balanced, fair and comprehensive assessment of the company s state of affair in its financial statements. To ensure this, the Board has put in place adequate financial processes that are aimed at keeping the companies accounting records and transactions in accordance with the accepted accounting standards. This ensures the preparation of the annual financial statements that present a true and fair view of the state of affairs of the Group and Company at the reporting dates. The Board of NCB is also committed to ensure that it presents a balanced and comprehensive assessment of the operation and financial results of the Group on a quarterly basis via its interim financial reports. It releases the quarterly financial report immediately after each quarter of the year for public announcement together with the required disclosure of the Main Market Listing Requirements. These quarterly reports are published in a condensed format with full financial statements prepared and published in the Annual Report after the financial year end. The audit committee assists the Board under its terms of reference in ensuring that the Financial Statements are prepared in accordance with approved applicable International Financial Reporting Standards and are in accordance with the provision of the Companies Act, The Statement of Directors Responsibility in relation to the Audited Financial Statements is presented on page 117 of this Annual Report. 6.2 Internal Control The Board maintains a sound system of Internal Controls to manage the day-to-day running of the business activities of the companies. The internal control system is a mechanism of checks and balances in the operating and financial processes wherein the transactions and processes carried out and are subjected to this self checking mechanism. The management of the companies have embedded such control mechanism within their Standard Operating Procedures to ensure its continuous and effective operations. The Board has mandated the Audit Committee with the overall responsibility of ensuring adequacy, completeness and effectiveness of this Internal Control Systems. The Audit Committee undertakes periodic reviews and monitors the compliance to this systems via the Internal Audit Department who carries out audit checks on such Internal Controls and provide feedback on its effectiveness and compliance at the operating level. Any weakness or variance reported by the Internal Audit to the Audit Committee will be turned into management actions to rectify any weaknesses in those internal controls. The Internal Audit Department acts as a unit independent of management to carry out the audit of the processes and business transactions of the operating units by way of pre-approved audit programme and reports its findings back to the Audit Committee. This independent mechanism of ensures the accountability, adequacy and effectiveness of the system of Internal Controls in place, giving the assurance that the Board needs to fullfil its responsibility. The Audit Committee monitors the feedback and reports of the Internal Audit Department for matters of non-compliance, weakness in internal control systems or the lack of it and monitors the curing of any such inadequacies by the management. Fuller details the Statement of Internal Control is presented on pages 97 to 99 of this Annual Report. 6.3 Relationship with Internal Auditors The Board maintains a good working relationship with the external auditors of the Group, Messrs Ernst & Young through the Audit Committee. The Audit Committee acts as the platform used by both the external and internal auditors for communication and avenue to access the Board. The Audit Committee invites the external auditors to attend its meeting as and when required but at least a minimum of twice a year when they intend to begin the final year audit and once when they have completed their audit. The internal auditors meet the committee at least six times a year. During such meeting the auditors highlights and discusses the nature, scope of the audit, audit programme, internal controls and problems that may require the attention of the Board. In compliance to Listing Requirements and Corporate Governance principles the Audit Committee within its duties reviews the scope of work, independence, objectivity and the feedback and results of the audits conducted by both the external and internal auditors. The Audit Committee also makes arrangements to meet to discuss with the external and internal auditors separately without the presence of management on any matters relating to the Group and its audit activities. Two such meetings were held during the current year. 84 I NCB HOLDINGS BHD ANNUAL REPORT 2011

87 STATEMENT ON CORPORATE GOVERNANCE Pursuant to Paragraph of The Main Market Listing Requirements of Bursa Malaysia Securities Berhad 7. SHAREHOLDERS AND INVESTORS The Board is committed under its Corporate Governance obligation to have an effective channel of communication with shareholders and the investing public. It affirms that the primary channel to engage and communicate with its shareholders is during the Annual General Meeting. During this meetings, the Board provides an account of the affairs of the business that was undertaken and the future direction for this Group. The Annual Report is tabled at this meeting and the shareholders can engage the Board in productive dialogue. In respect of the investing public, the Board has put in place as an investor relations initiative where a page is dedicated to investor relations on the Company s official website wherein official announcements made to Bursa are made available. The website also provides details of stock movements, its price and other related charts. Furthermore, the Group Managing Director and the Group Financial Controller arrange regular faceto-face briefing and discussions with analys and investors to provide information on developments and to take questions on matters relating to their interest. The Company s Annual General Meeting (AGM) is a crucial forum where the Company s shareholders meet to have discussions with the Board of Directors on the affairs of the business. Notice for the AGM is sent out to shareholders at least 21 days ahead of the meeting date together with the Financial Statement and agenda for the meeting. The Board encourages all shareholders to attend the Annual General Meeting and to participate in its proceedings. Every opportunity is given to shareholders to seek clarification on the performance of the Company and the Group. The full agenda of the 13th Annual General Meeting of NCB is presented on pages 4 to 6 of this Annual Report. 8. STATEMENT OF COMPLIANCE WITH BEST PRACTICES OF THE CODE The Board confirms that the Group has made strong efforts of maintaining a high standard of Corporate Governance throughout the year to seek to achieve to the highest level of integrity and ethical standards in all its business dealings. The Board also confirms that it has adopted the revised Code on Corporate Governance into its practices. This statement is made in accordance with the resolution of the Board of Directors dated 21 February TUN AHMAD SARJI BIN ABDUL HAMID Chairman DATO ABDUL SAMAD BIN MOHD DOM Group Managing Director NCB HOLDINGS BHD ANNUAL REPORT 2011 I 85

88 PENYATA MENGENAI URUSTADBIR KORPORAT Menurut Perenggan dalam Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad Lembaga Pengarah ( Lembaga ) NCB Holdings Bhd ( NCB ) memaklumkan bahawa ia telah memastikan secara berterusan pemakaian piawaian yang tertinggi mengenai Urustadbir Korporat sepanjang tahun kewangan 31 Disember Bagi memastikan pemakaian prinsip Urustadbir Korporat dalam aktiviti perniagaan, Lembaga Pengarah telah sentiasa meneliti dan mengekalkan kesemua dasar yang boleh menjamin piawaian Urustadbir Korporat adalah setaraf dengan kod amalan terbaik dan secara langsung mewujudkan mekanisma kawal selia dalaman terhadap proses yang diterapkan didalam prosedur operasi syarikat. Lembaga Pengarah dengan sukacitanya membentangkan Penyata Mengenai Urustadbir Korporat bagi tahun berakhir 31 Disember 2011 dengan menggariskan pemakaian prinsip seperti yang termaktub dalam kod amalan Urustadbir Korporat Malaysia dan amalan terbaik kod berkenaan. 1. AHLI LEMBAGA PENGARAH Peringkat akhir bagi membuat keputusan dalam Kumpulan adalah Lembaga Pengarah Syarikat Induk NCB. Ia mempunyai tanggungjawab sepenuhnya bagi menentukan hala tuju Kumpulan. Bersama dengan Lembaga Pengarah subsidiari, ia mengambil tanggungjawab sepenuhnya untuk memastikan perniagaan dijalankan berpandukan dengan amalan urustadbir yang telus dan bersifat objektif. Objektif keseluruhannya adalah memelihara kepentingan pemegang saham dengan pencapaian objektif strategik kumpulan menurut amalan Kod Urustadbir Korporat. 1.1 Komposisi Lembaga Pengarah Pada tarikh Laporan Tahunan ini, Lembaga Pengarah syarikat terdiri daripada sepuluh (10) anggota, lima (5) daripada mereka adalah pengarah namaan bukan bebas yang mewakili dua daripada pemegang saham utama syarikat, sementara empat lagi adalah pengarah bebas. Pengarah Urusan Kumpulan merupakan Pengarah Eksekutif dan salah seorang ahli Lembaga Pengarah adalah seorang wanita. Barisan anggota ahli mengikut nisbah bagi tahun yang dilaporkan adalah seperti berikut :- Pengarah Eksekutif (juga sebagai Pengarah Urusan Kumpulan) Nisbah % 1/ Pengarah Bukan Bebas Bukan Eksekutif (termasuk Pengerusi) 5/ Pengarah Bebas Bukan Eksekutif 4/ Dengan komposisi yang sedia ada, Lembaga Pengarah merasakan ahli-ahli Lembaga mempunyai pengalaman yang luas dari aspek pengetahuan, pengalaman, kemahiran dan kepakaran bagi membolehkan mereka menjalankan tugas dan tanggungjawab dengan berkesan. Kesemua ahli Lembaga Pengarah mempunyai rekod pengalaman yang luas melalui penglibatan bertahun sebagai ahli Lembaga Pengarah Syarikat dan sebagai ahli profesional dalam bidang masing-masing. Lembaga Pengarah juga berpuas hati dengan saiz yang optimum bagi Lembaga Pengarah masa kini yang mana sejajar dengan yang menggambarkan jenis keperluan perniagaan syarikat yang diceburi. Lembaga NCB mempunyai empat pengarah bebas, yang memenuhi syarat yang digariskan dalam Syarat Penyenaraian Pasaran Utama Bursa Malaysia Berhad, di mana tidak kurang daripada satu pertiga daripada ahli Lembaga Pengarah wajib terdiri daripada pengarah bebas. Profil ringkas setiap orang pengarah ada digariskan dalam mukasurat 64 hingga 73 dalam Laporan Tahunan ini. 1.2 Keseimbangan Lembaga Pengarah Gabungan meluas merangkumi kepelbagaian kecekapan dan campuran profesional menggalakkan perbincangan dan percambahan pendapat sebelum mencapai keputusan. Lembaga NCB mengakui bahawa lembaga pengarah yang sempurna profilnya akan dapat menangani tindakan dengan pantas dan cekap dalam membuat keputusan bagi memelihara prestasi syarikat. Pengerusi Lembaga Pengarah terdiri daripada pengarah bukan bebas bukan eksekutif yang mempunyai garisan yang jelas dan berbeza berkenaan tugas dan tanggungjawab berbanding dengan Pengarah Urusan Kumpulan. 1.3 Peranan Pengerusi dan Pengarah Urusan Kumpulan Lembaga Pengarah sentiasa membuat pengasingan tanggungjawab antara jawatan Pengerusi dan Pengarah Urusan Kumpulan yang mana tidak disandang oleh orang yang sama. Pengerusi, Tun Ahmad Sarji bin Abdul Hamid adalah seorang pengarah bukan bebas bukan eksekutif. Terdapat pengasingan tanggungjawab yang jelas antara Pengerusi dan Pengarah Urusan Kumpulan. Pengarah Urusan Kumpulan adalah anggota yang terlibat di dalam perjalanan dan aktiviti seharian syarikat. 86 I NCB HOLDINGS BHD ANNUAL REPORT 2011

89 PENYATA MENGENAI URUSTADBIR KORPORAT Menurut Perenggan dalam Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad 1.4 Tanggungjawab dan Tugas Lembaga Pengarah Lembaga NCB mempunyai tanggungjawab sepenuhnya dalam memberikan kepimpinan secara menyeluruh dalam pengurusan Syarikat syarikat dalam Kumpulan. Tanggungjawab utama ialah mengekalkan Urustadbir Korporat yang tinggi, membentuk dan mempertahankan hala tuju strategik jangka panjang dan mengawasi prestasi serta tatacara perjalanan bagi memelihara dan meningkatkan nilai pemegang saham. Di mesyuarat ini, Lembaga Pengarah meneliti dengan kerap keputusan kewangan perniagaan, menerima pakai dan meneliti tindakan pengurusan risiko, mengawasi perlaksanaan sistem kawalan dalaman dan keberkesanannya, serta menguatkuasakan pematuhan terhadap kehendak undang-undang di dalam Kumpulan. Pengarah bebas bukan eksekutif mempunyai peranan di dalam membuat kesimpulan dan menyumbang secara aktif dalam perbincangan atas dasar, memberikan pandangan yang seimbang dan bebas apabila diperlukan. Mereka juga bertindak dalam memelihara kepentingan pemegang saham minoriti berkaitan dengan polisi dan keputusan yang diambil oleh Lembaga Pengarah. Fungsi Lembaga Pengarah boleh dirumuskan seperti berikut :- Meneliti dan memandu strategi korporat bagi Syarikat dan Kumpulan dan menerima pakai pelan strategik Syarikat melalui penggubalan ke atas polisi risiko, belanjawan tahunan dan perancangan perniagaan jangka panjang, meneliti perbelanjaan modal utama, pengambilalihan dan penjualan; Mengawasi prestasi korporat dan tatacara perjalanan perniagaan Kumpulan dan memastikan pematuhan terhadap amalan terbaik dan prinsip urustadbir korporat; Mengenalpasti dan melaksanakan sistem yang sesuai bagi mengurus risiko utama. Lembaga Pengarah menjalankan tanggungjawab ini melalui Jawatankuasa Pengurusan Risiko dan Jawatankuasa Audit; Memastikan kewujudan dan menilai kecukupan dan kesempurnaan sistem kewangan Kumpulan, sistem kawalan dalaman dan sistem pengurusan adalah selaras dengan pematuhan dan piawaian yang digunapakai, undang-undang dan peraturan; Memastikan adanya proses penamaan dan ganjaran Lembaga Pengarah yang telus termasuk perancangan penggantian peringkat kanan pengurusan dan memastikan kemahiran serta pengalaman Lembaga Pengarah adalah mencukupi untuk melaksanakan tanggungjawab mereka dan kemampuan pengarah bukan eksekutif berkesan untuk pertimbangan bebas dalam proses membuat keputusan; dan Membentuk dan melaksanakan program perhubungan dengan pelabur atau dasar komunikasi dengan pemegang saham dalam syarikat. 1.5 Penilaian Lembaga Pengarah Lembaga Pengarah mempercayai akan proses penyertaan penuh dalam perbincangan. Walaupun Lembaga Pengarah tiada struktur yang tetap bagi mekanisma penilaian, Pengerusi menggalakkan penglibatan ahli dalam perbincangan dan maklumbalas yang terbuka, kritikan yang bernas dan pertukaran maklumat. Walau bagaimanapun, kesemua ahli-ahli Jawatankuasa Lembaga Pengarah dinilai setiap 3 tahun oleh Jawatankuasa Namaan sebelum dilantik semula atau ditukar giliran. 2 MESYUARAT LEMBAGA PENGARAH 2.1 Struktur dan Prosedur Lembaga Pengarah Lembaga NCB bermesyuarat berasaskan kepada jadual yang tetap sekurang-kurangnya enam (6) kali dalam setahun. Mesyuarat khas diadakan jika perlu untuk mempertimbangkan perkara perkara yang mustahak. Lembaga NCB menguruskan syarikat subsidiari melalui Lembaga Pengarah subsidiari yang terdiri daripada pengarah bukan eksekutif yang dilantik oleh NCB. Mesyuarat berjadual Lembaga Pengarah ini juga mempunyai struktur agenda yang disediakan khas untuk pertimbangan dan membuat keputusan. Kesemua mesyuarat Lembaga Pengarah dirancang lebih awal pada permulaan tahun dengan maklumat seperti tarikh yang tetap, tempat dan waktu bagi membolehkan pengarah merancang jadual mereka untuk memastikan kehadiran yang penuh. Mesyuarat Lembaga Pengarah juga mempunyai perkara yang telah ditentukan bagi penelitian, disamping prestasi kewangan bagi Kumpulan, prestasi operasi dan pencapaian objektif dan matlamat Kumpulan. Kertas mesyuarat Lembaga untuk pertimbangan dan perbincangan diedarkan kepada pengarah lebih awal bagi memastikan pengarah mendapat masa yang cukup untuk mengkaji dan membuat persiapan bagi perbincangan yang bermakna. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 87

90 PENYATA MENGENAI URUSTADBIR KORPORAT Menurut Perenggan dalam Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad Setiausaha Syarikat mengeluarkan notis mesyuarat sebelum tarikh mesyuarat berserta dengan kertas mesyuarat dan pengumuman korporat untuk diedarkan kepada Bursa Malaysia Securities Berhad. Pengurusan dan penasihat profesional akan diundang oleh Lembaga Pengarah jika perlu bagi maklumat atau nasihat yang memerlukan pengetahuan kepakaran. 2.2 Jumlah Mesyuarat Lembaga Pengarah dan Kehadiran Pengarah Pada tahun yang dilaporkan, Lembaga Pengarah mengadakan enam (6) mesyuarat biasa tidak termasuk Mesyuarat Agung Tahunan dan dua (2) mesyuarat khas. Perkara yang diteliti semasa mesyuarat ini termasuk penilaian prestasi kewangan bagi Kumpulan, prestasi suku tahun dan laporan, penilaian prestasi subsidiari, hal pengurusan risiko, kawalan dalaman dan laporan jawatankuasa Lembaga Pengarah subsidiari. Kesemua perbincangan mesyuarat Lembaga Pengarah dicatatkan dan diminitkan termasuk isu yang dibincangkan dan keputusan yang dicapai. Berikut adalah jumlah mesyuarat yang diadakan sepanjang tahun 2011 dan rekod kehadiran pengarah bagi mesyuarat tersebut :- Tarikh Mesyuarat Berjadual Lembaga Pengarah Tarikh Mesyuarat Khas Lembaga Pengarah Mesyuarat Lembaga ke Februari 2011 Mesyuarat Khas Lembaga - 15 Mac 2011 Mesyuarat Lembaga ke April 2011 Mesyuarat Khas Lembaga - 10 Mei 2011 Mesyuarat Lembaga ke Jun 2011 Mesyuarat Lembaga ke Ogos 2011 Mesyuarat Lembaga ke Oktober 2011 Mesyuarat Lembaga ke Disember 2011 Kehadiran Ahli-ahli Jumlah Mesyuarat Lembaga Peratusan Kehadiran Tun Ahmad Sarji bin Abdul Hamid 8/8 100% Dato Abdul Samad bin Mohd Dom 8/8 100% Tan Sri Dato (Dr) Ir.Wan Abdul Rahman bin Haji Wan Yaacob 7/8 87% Dato Seri Dr. Haji Arshad bin Haji Hashim 8/8 100% Dato Haji Rahmat bin Jamari 7/8 87% Dato Zuraidah binti Atan 8/8 100% Datuk Abdul Malek bin Abdul Aziz 8/8 100% Datuk Khoo Eng Choo 7/8 87% Datuk Nasarudin bin Md Idris 5/8 63% Syed Agel bin Syed Salim 8/8 100% 2.3 Latihan dan Program Perluasan Ilmu Bagi Pengarah Kesemua pengarah syarikat diberi peluang untuk menghadiri latihan melalui seminar, bengkel dan persidangan. Pengarah akur dan sentiasa diberi peringatan disetiap mesyuarat Lembaga Pengarah untuk memelihara kecekapan dengan memperbaiki kepakaran dan pengetahuan bagi melengkapkan diri dalam hal-ehwal perniagaan, keperluan undang-undang dan perkembangan urustadbir korporat. 88 I NCB HOLDINGS BHD ANNUAL REPORT 2011

91 PENYATA MENGENAI URUSTADBIR KORPORAT Menurut Perenggan dalam Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad Semua anggota Lembaga Pengarah NCB telah menghadiri latihan kelayakan yang disyaratkan selaras dengan keperluan Bursa Malaysia Securities Berhad. Atas sebab yang tidak dapat dielakkan, Tun Ahmad Sarji bin Abdul Hamid tidak dapat menghadirkan diri untuk seminar awam atau latihan rasmi sepanjang tahun, akan tetapi beliau telah mengambil bahagian dalam sesi perbincangan dan memberi taklimat dan oleh itu telah memperlengkapkan diri dalam perkembangan industri melalui jaringan profesional beliau. Jenis-jenis latihan yang telah dihadiri oleh pengarah sepanjang tahun 2011 adalah seperti berikut :- Nama Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Haji Wan Yaacob Kursus/Seminar Corporate Governance Programme on Assessing The Risk and Control Environment Launch of the Corporate Integrity Pledge by PEMANDU Conference-MICG Investor Relation and Effective Corporate Communication Bilangan Hari 1/2 hari 1 hari 1 hari Seminar on Whistleblower Protection Act 2010-Personal Data Protection Act 2011 and Price Control and Anti-Profiteering Act /2 hari Board IT Governance and Risk Management 2 hari Governance Programme The Board s Responsibilities for Corporate Culture-Selected Governance Concerns and Tools for Addressing Corporate Culture and Board Performance 1 hari Dato Abdul Samad bin Mohd Dom Dato Haji Rahmat bin Jamari Institute of Internal Auditors Conference Talk by Dr. Stephen Young - It s People Who Create Value, Not Money Corporate Governance Guide : Towards Boardroom Excellence Corporate Governance Programme on Assessing The Risk and Control Environment Corporate Governance Programme on Assessing The Risk and Control Environment International Internal Auditors Conference 2 hari 1 hari 1 hari 1 hari 1/2 hari 3 hari NCB HOLDINGS BHD ANNUAL REPORT 2011 I 89

92 PENYATA MENGENAI URUSTADBIR KORPORAT Menurut Perenggan dalam Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad Nama Dato Seri Dr. Haji Arshad bin Haji Hashim Kursus/Seminar Talk by Dr. Stephen Young - It s People Who Create Value, Not Money Corporate Governance Guide : Towards Boardroom Excellence Corporate Governance Programme on Assessing The Risk and Control Environment Multimodal 2011 Bilangan Hari 1 hari 1 hari 1/2 hari 3 hari Dato Zuraidah binti Atan Corporate Governance Guide : Towards Boardroom Excellence 1 hari Datuk Abdul Malek bin Abdul Aziz Datuk Nasarudin bin Md Idris Datuk Khoo Eng Choo Syed Agel bin Syed Salim Strategic Due Diligence Port Finance and Investment 2011 Directors - Voting Them In and Voting Out Corporate Governance Programme on Assessing The Risk and Control Environment International Internal Auditors Conference Innovation and People : Making It Happen, Bandung, Indonesia PETRONAS Directors Workshop 2011: Corporate Governance and Boardroom Issues in Challenging Times De-Mystifying Directors Duties and Their Implications Under The Listing Requirements Risk Management in Today s Economy PETRONAS Directors Workshop 2011: Corporate Governance and Boardroom Issues in Challenging Times De-Mystifying Directors Duties and Their Implications Under The Listing Requirements Risk Management in Today s Economy Talk by Dr. Stephen Young - It s People Who Create Value, Not Money Corporate Governance Programme on Assessing The Risk and Control Environment 9th Intermodal Africa 2011 Conference, Casablanca, Morocco 1 hari 1 hari 1 hari 1/2 hari 3 hari 3 hari 2 hari 1 hari 1 hari 2 hari 1 hari 1 hari 1 hari 1/2 hari 3 hari 90 I NCB HOLDINGS BHD ANNUAL REPORT 2011

93 PENYATA MENGENAI URUSTADBIR KORPORAT Menurut Perenggan dalam Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad 2.4 Pembekalan Maklumat Pembekalan maklumat kepada Lembaga Pengarah adalah teratur dan dalam jangka waktu yang tepat. Lembaga Pengarah telah menerima pakai kerangka laporan dimana maklumat mengenai operasi subsidiari dilaporkan kepada Lembaga Pengarah melalui Pengarah Urusan Kumpulan dan Pengerusi Lembaga Pengarah subsidiari. Bagi perkara yang memerlukan perhatian yang terperinci, Lembaga Pengarah telah memberi kuasa penuh kepada jawatankuasa tertentu bagi mendapatkan maklumat yang diperlukan untuk perbincangan serta memberi nasihat kepada Lembaga Pengarah untuk mengambil tindakan yang tepat. Melalui saluran ini, Lembaga Pengarah menurunkan dasar dan strategi kepada pengurusan masing-masing. Pengarah namaan dalam Lembaga Pengarah subsidiari mempunyai tanggungjawab bagi memastikan dasar dan hala tuju Lembaga NCB diberi tekanan dan strategi dilaksanakan dengan sewajarnya. Kesemua Lembaga Pengarah dan jawatankuasa Lembaga Pengarah mempunyai peluang untuk berbincang dengan Pengurusan Kanan Syarikat dan Setiausaha Syarikat bagi mendapatkan maklumat dan penjelasan serta kawalselia dan khidmat pentadbiran. Maklumat yang dibekalkan kepada Lembaga Pengarah dirangka sebagai kertas mesyuarat Lembaga dan diedarkan kepada pengarah tepat pada waktunya bagi membolehkan mereka melaksanakan tugas dan tanggungjawab secara berkesan. Kesemua pengarah diberikan kelulusan oleh Lembaga Pengarah, sama ada sebagai individu atau secara berkumpulan untuk mendapatkan nasihat professional bebas dimana perlu untuk menyokong peranan mereka selaku pengarah. 3. LANTIKAN DAN PEMILIHAN SEMULA KE LEMBAGA PENGARAH 3.1 Lantikan Pengarah Lembaga Pengarah telah memberi kuasa kepada Jawatankuasa Namaan untuk mengenalpasti, meneliti dan mengesyorkan pemilihan calon yang sesuai bagi lantikan ke Lembaga Pengarah dan Jawatankuasa Lembaga Pengarah. Majoriti ahli Jawatankuasa Namaan NCB terdiri daripada pengarah bebas. Pengerusi Jawatankuasa Namaan adalah juga Pengerusi Lembaga Pengarah. Jawatankuasa Namaan menjalankan penilaian dan mengesyorkan calon yang berkelayakan dari segi kemahiran, pengetahuan, kepakaran, pengalaman serta profesionalisma dan integriti. Jawatankuasa Namaan hanya mengesyorkan calon tetapi keputusan akhir perlantikan terletak sepenuhnya ditangan Lembaga Pengarah sepenuhnya. Tiada perlantikan pengarah baru sepanjang tahun Lantikan Semula Pengarah Bersesuaian dengan Tataurusan Syarikat yang satu pertiga daripada anggota Lembaga Pengarah termasuk Pengarah Urusan Kumpulan bersara pada Mesyuarat Agung Tahunan. Pengarah yang dilantik dalam mana-mana tahun bagi mengisi kekosongan akan juga bersara pada Mesyuarat Agung Tahunan yang berikutnya dan boleh menawarkan diri untuk dilantik semula. Lembaga Pengarah telah memberi kuasa kepada Jawatankuasa Namaan untuk membuat penilaian terhadap pengarah yang menawarkan diri untuk dipilih semula. Jawatankuasa juga menilai pengarah yang akan bersara menurut Seksyen 129 Akta Syarikat 1965 untuk kesesuaian dipilih semula. Senarai pengarah yang menawarkan diri untuk pemilihan semula pada Mesyuarat Agung Tahunan ada dipaparkan di dalam Notis Mesyuarat Agung Tahunan di muka surat 7 hingga GANJARAN PARA PENGARAH 4.1 Polisi dan Tatacara Ganjaran Para Pengarah Lembaga Pengarah percaya bahawa polisi ganjaran adalah untuk menyokong pengarah dalam membuat tanggungjawab menerajui dan mengembangkan organisasi ini bagi mencapai strategi jangka panjang dan meningkatkan nilai pemegang saham. Jawatankuasa Ganjaran bertanggungjawab untuk menilai, mempertimbangkan dan mengesyorkan kepada Lembaga Pengarah ganjaran dan faedah mengikut nilai pasaran dan amalan industri bagi perniagaan yang diceburi oleh syarikat. Jawatankuasa Ganjaran juga bertanggungjawab di atas gaji pengarah eksekutif. Tanggungjawab Jawatankuasa Ganjaran juga termasuk membantu Lembaga Pengarah menetapkan rangka kerja dan nilai penanda bagi ganjaran dan faedah kepada pengarah. Cadangan Jawatankuasa Ganjaran dibincangkan dan diluluskan oleh Lembaga Pengarah sebelum dibentangkan di Mesyuarat Agung Tahunan untuk kelulusan pemegang saham. Lembaga Pengarah dan Jawatankuasa Ganjaran berusaha untuk memastikan struktur pampasan NCB HOLDINGS BHD ANNUAL REPORT 2011 I 91

94 PENYATA MENGENAI URUSTADBIR KORPORAT Menurut Perenggan dalam Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad yang adil dikenal pasti bagi organisasi yang sama saiz serta sektor pasaran dan perniagaan yang sama rumit. Ia juga bertujuan untuk menarik dan mengekalkan pengarah yang berkaliber, berkemahiran dan juga berpengalaman bagi menyumbang dengan berkesan kearah kejayaan perniagaan. Selain daripada ganjaran tahunan, pengarah juga dibayar elaun kehadiran sebagai pembiayaan kos perjalanan dan kos yang berkaitan untuk menghadiri Mesyuarat Lembaga Pengarah. 4.2 Gaji Asas dan Yuran Kesemua pengarah bukan eksekutif menerima yuran tahunan pengarah selepas kelulusan pemegang saham pada Mesyuarat Agung Tahunan. Walau bagaimanapun, Pengarah Eksekutif menerima pakej yang mengandungi gaji pokok, bonus bukan kontrak dan lain-lain faedah. Jawatankuasa Ganjaran bersama-sama dengan Lembaga Pengarah telah melaksanakan prosedur yang formal dan telus untuk kelulusan dalam menyediakan ganjaran bagi pengarah eksekutif dan pihak pengurusan atasan Kumpulan. Pakej ganjaran ini dinilai setiap tahun oleh Jawatankuasa Ganjaran berpandukan kepada permintaan pasaran dan tawaran, skala tanggungjawab, prestasi perniagaan dan penilaian prestasi individu. Walaupun gaji pengarah eksekutif tertakluk kepada kenaikan tahunan, lain-lain bentuk faedah adalah seperti yang ditetapkan dalam perjanjian perkhidmatan. Lain-lain bentuk faedah meliputi kereta syarikat dan pemandu, kemudahan komunikasi peribadi, keahlian namaan kelab golf, faedah kesihatan dan pergigian. Butiran mengenai ganjaran Pengarah bagi tahun kewangan berakhir 31 Disember 2011 adalah seperti berikut :- Nilai Ganjaran Pengarah Eksekutif Pengarah Bukan Eksekutif RM50,000-RM100,000-5 RM100,001-RM150,000-4 RM1,200,001-RM1,250, JAWATANKUASA LEMBAGA PENGARAH Lembaga NCB sebagai sebahagian daripada struktur melapor telah membentuk beberapa jawatankuasa untuk menjalankan tugas-tugas tertentu dalam proses perbincangan, mekanisma penilaian yang berterusan, sistem dan rangkakerja proses perniagaan yang sedia ada bagi memastikan pencapaian strategi dan sasaran perniagaan. Selain daripada pengawasan ke atas aktiviti yang diselia, Jawatankuasa-jawatankuasa ini juga menjalankan tinjauan terperinci bagi hal-hal yang memerlukan pertimbangan dan kelulusan. Jawatankuasa-jawatankuasa ini telah diberi kuasa oleh Lembaga Pengarah untuk bertindak sebagai mekanisma kawalan, memantau dan melakukan kajian terperinci yang perlu serta menilai bidang kemahiran masing-masing untuk memberikan maklumbalas kepada Lembaga Pengarah bagi membuat keputusan. Lembaga Pengarah mengagihkan kuasa kepada Jawatankuasa-jawatankuasa ini dengan mendefinasikan skop tanggungjawab dalam Terma Rujukan dimana kebiasaannya adalah jelas dan berbeza-beza antara jawatankuasa. Terma Rujukan umumnya memberi kuasa untuk mempertimbangkan, meneliti masalah, memberikan kepastian dan akauntabiliti kepada Lembaga Pengarah menerusi maklumbalas dan cadangan mereka. Sepanjang tahun yang dilaporkan, jawatankuasa Lembaga Pengarah yang diwujudkan adalah seperti berikut :- Jawatankuasa Audit Jawatankuasa Namaan Jawatankuasa Ganjaran Jawatankuasa Pengurusan Risiko Jawatankuasa Kewangan dan Pelaburan Jawatankuasa Syariah Jawatankuasa Audit Ahli-ahli Jawatankuasa Audit dan kehadiran mesyuarat bagi tahun ini adalah seperti berikut :- Kehadiran Mesyuarat Datuk Abdul Malek bin Abdul Aziz 7/7 Dato Seri Dr. Haji Arshad bin Haji Hashim 7/7 Datuk Khoo Eng Choo 7/7 Syed Agel bin Syed Salim 7/7 Jawatankuasa Audit terdiri daripada empat pengarah bukan eksekutif dimana tiga merupakan pengarah bebas. Sesuai dengan kod amalan Urustadbir 92 I NCB HOLDINGS BHD ANNUAL REPORT 2011

95 PENYATA MENGENAI URUSTADBIR KORPORAT Menurut Perenggan dalam Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad Korporat, seluruh anggota Jawatankuasa Audit mempunyai pengalaman dan pengetahuan untuk mentafsir, mengintepretasi dan menganalisa maklumat kewangan. Salah seorang ahlinya, Datuk Khoo Eng Choo memenuhi syarat-syarat menjadi ahli persatuan perakaunan atau pertubuhan. Pengerusi adalah pengarah bebas bukan eksekutif. Terma Rujukan yang ditentukan oleh Lembaga Pengarah jelas menerangkan skop tugas dan tanggungjawab jawatankuasa yang perlu cekap melaksanakan tugas dan untuk memastikan kualiti dan integriti kawalan dalaman. Terma Rujukan juga mensyaratkan bahawa jawatankuasa menyediakan jaminan ke atas amalan syarikat dan proses, kebaikan sistem kawalan dalaman dan pematuhan terhadap Tatacara Urustadbir Korporat dan keperluan penyenaraian yang lain. Laporan penuh Terma Rujukan Jawatankuasa Audit dibentangkan dimuka surat 106 hingga 108 dalam Laporan Tahunan ini. Jawatankuasa Namaan Kehadiran Mesyuarat Tun Ahmad Sarji bin Abdul Hamid 2/2 Datuk Abdul Malek bin Abdul Aziz 2/2 Datuk Khoo Eng Choo 2/2 Jawatankuasa Namaan terdiri daripada tiga (3) orang ahli Lembaga Pengarah dimana dua (2) daripada mereka adalah pengarah bebas bukan eksekutif. Pengerusinya adalah juga Pengerusi Lembaga NCB Holdings Bhd. Ringkasan tugas-tugas Jawatankuasa ini dan lain-lain tanggungjawab adalah seperti berikut :- Mengemukakan perakuan yang bersesuaian kepada Lembaga Pengarah mengenai perlantikan semula, lanjutan, persaraan dan perlantikan serta perlantikan semula pengarah-pengarah; Menilai dan memperakukan mana-mana calon untuk dijadikan pengarah dan memastikan adanya rancangan yang sesuai bagi penggantian pengarah yang akan bersara; Meneliti setiap tahun soal keseimbangan kemahiran dan pengalaman anggota Lembaga Pengarah serta keberkesanan mereka secara keseluruhan, Jawatankuasa Lembaga Pengarah dan sumbangan daripada setiap pengarah individu ke arah proses membuat keputusan dalam Lembaga Pengarah; dan Bagi kedudukan pengarah bebas bukan eksekutif, Jawatankuasa Namaan juga akan menilai kebolehan calon-calon dalam menjalankan tanggungjawab seperti yang diharapkan daripada seorang pengarah bebas bukan eksekutif. Sepanjang tahun dilaporkan, Jawatankuasa Namaan bermesyuarat sebanyak dua (2) kali untuk menjalankan tugas yang diserahkan kepadanya. Jawatankuasa Ganjaran Kehadiran Mesyuarat Datuk Abdul Malek bin Abdul Aziz 2/2 Datuk Khoo Eng Choo 2/2 Datuk Nasarudin bin Md Idris 2/2 Syed Agel bin Syed Salim 2/2 Jawatankuasa Ganjaran terdiri daripada empat (4) orang Lembaga Pengarah dimana dua (2) adalah pengarah bukan bebas bukan eksekutif sementara dua lagi adalah pengarah bebas bukan eksekutif. Pengerusinya ialah seorang pengarah bebas bukan eksekutif. Mengikut Terma Rujukan, seperti yang ditetapkan oleh Lembaga Pengarah mendefinisikan tanggungjawab dan tugasnya. Umumnya, Jawatankuasa Ganjaran membantu Lembaga Pengarah dalam meninjau, menilai, merumuskan dan mengesyorkan pakej imbuhan dan faedah bagi pengarah dan pengurusan atasan syarikat dalam Kumpulan. Tanggungjawab dan tugasnya termasuk :- Menilai dan mencadangkan kepada Lembaga Pengarah dasar dan pakej mengenai ganjaran bagi pengurusan kanan, termasuk lain-lain bentuk faedah serta terma kontrak dan syarat yang berkaitan; Menilai dan mencadangkan kepada Lembaga Pengarah, ganjaran bagi pengarah syarikat Kumpulan termasuk pengarah eksekutif dan bukan eksekutif, bentuk faedah dan lain-lain yuran; dan Jawatankuasa juga akan bertindak terhadap halhal lain yang berkaitan dengan ganjaran, hadiah dan ganti rugi yang dirujukkan kepadanya oleh Lembaga Pengarah. Sepanjang tahun dilaporkan, Jawatankuasa Ganjaran bermesyuarat sebanyak dua (2) kali. Jawatankuasa Pengurusan Risiko Kehadiran Mesyuarat Dato Haji Rahmat bin Jamari 3/3 Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Haji Wan Yaacob 3/3 Dato Zuraidah binti Atan 3/3 Datuk Khoo Eng Choo 2/3 Syed Agel bin Syed Salim 3/3 NCB HOLDINGS BHD ANNUAL REPORT 2011 I 93

96 PENYATA MENGENAI URUSTADBIR KORPORAT Menurut Perenggan dalam Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad Jawatankuasa Pengurusan Risiko dianggotai oleh lima (5) orang ahli, dua (2) daripada mereka adalah pengarah bebas bukan eksekutif, sementara tiga (3) yang lain adalah pengarah bukan bebas bukan eksekutif. Jawatankuasa Pengurusan Risiko mempunyai Terma Rujukan yang ditetapkan oleh Lembaga Pengarah dengan jelas berkenaan skop tanggungjawab dan tugas. Tanggungjawab utama adalah seperti berikut :- Bertanggungjawab untuk merekabentuk dan melaksanakan rangka kerja serta sistem yang bersesuaian bagi pengurusan risiko dalam syarikat-syarikat Kumpulan; Mengawasi dasar-dasar pengurusan, prosedur dan amalan bagi tujuan mengenalpasti, menganalisa dan menilai serta mengawal atau mengurangkan kesan daripada risiko yang dihadapi oleh Kumpulan; Memastikan adanya keseimbangan antara risiko yang dihadapi dengan potensi pulangan yang bakal diraih oleh pemegang saham; dan Memastikan adanya sistem bagi mengurangkan dan mengurus risiko melalui kawalan dalaman yang sempurna dengan tujuan memungkinkan wujudnya daya maju bagi mencapai objektif perniagaan. Kumpulan mempunyai unit pengurusan risiko yang diketuai oleh seorang Pengurus Risiko yang menjalankan tinjauan berkala, pemantauan langkah kawalan yang dikenalpasti oleh pihak pengurusan untuk mengurangkan risiko. Unit ini juga membantu dalam menyelaras kegiatan risiko dalam Kumpulan dengan bantuan beberapa urusetia risiko di syarikat subsidiari dalam menguruskan risiko ini. Pengurus Risiko melapor terus kepada Jawatankuasa Pengurusan Risiko melalui laporan mengenai pematuhan dan kecukupan mengurus dan mengendalikan risiko yang telah dikenalpasti. Jawatankuasa Pengurusan Risiko juga menerima laporan tentang scorecard Kumpulan risiko secara keseluruhan dan kedudukan risiko yang terlibat dalam mesyuarat yang dijadualkan dua kali setahun. Sepanjang tahun yang dilaporkan, Jawatankuasa Pengurusan Risiko bermesyuarat sebanyak tiga (3) kali. Jawatankuasa Kewangan dan Pelaburan Kehadiran Mesyuarat Datuk Nasarudin bin Md Idris 4/4 Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Haji Wan Yaacob 4/4 Dato Zuraidah binti Atan 4/4 Jawatankuasa Kewangan dan Pelaburan terdiri daripada tiga ahli-ahli Lembaga Pengarah bebas dan bukan bebas bukan eksekutif. Jawatankuasa Kewangan dan Pelaburan mempunyai Terma Rujukan yang ditetapkan oleh Lembaga Pengarah yang menggariskan tanggungjawab dan tugasnya seperti berikut : - Merumuskan dan mengkaji dasar dividen serta amalan dan untuk membuat cadangan bagi perubahan yang dianggap sesuai dan perlu; Mengkaji perkembangan Kumpulan dan dasardasar pembiayaan pelaburan serta juga menilai rancangan pelaburan Kumpulan dan amalan untuk membuat cadangan bagi perubahan yang dianggap sesuai dan perlu; Mengkaji dasar yang sedia ada serta amalan pengurusan dana lebihan dan untuk membuat cadangan bagi perubahan yang dianggap sesuai dan perlu; Mengkaji dan menilai dasar struktur modal serta amalan dan untuk membuat cadangan bagi perubahan yang dianggap sesuai dan perlu; Mengkaji Belanjawan dan Rancangan Perniagaan dan untuk membuat cadangan bagi perubahan yang dianggap sesuai dan perlu; Menyemak dan menilai isu-isu yang mempunyai kaitan pada perniagaan Kumpulan seperti yang diminta oleh Lembaga Pengarah. Sepanjang tahun dilaporkan, Jawatankuasa Kewangan dan Pelaburan bermesyuarat sebanyak empat (4) kali untuk menjalankan tanggungjawabnya. Jawatankuasa Syariah Kehadiran Mesyuarat Dato Dr. Abdul Halim bin Ismail 1/1 Prof. Dato Dr. Abdul Monir bin Yaacob 1/1 Prof. Dato Dr. Paduka Dr. Mahmood Zuhdi bin Haji Ab. Majid 1/1 Dato Haji Rahmat bin Jamari 1/1 Dato Seri Dr. Haji Arshad bin Haji Hashim 1/1 Jawatankuasa Syariah terdiri daripada lima (5) ahli. Tiga (3) daripada ahli mempunyai kepakaran dalam hal-hal prinsip Syariah dan pemakaiannya dan dua lagi adalah pengarah dari kalangan ahli Lembaga NCB. 94 I NCB HOLDINGS BHD ANNUAL REPORT 2011

97 PENYATA MENGENAI URUSTADBIR KORPORAT Menurut Perenggan dalam Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad Tugas dan tanggungjawab Jawatankuasa Syariah adalah seperti berikut :- Untuk mengenal pasti, menentukan dan menasihati Lembaga Pengarah berkenaan pematuhan organisasi operasi syarikat pada prinsip syariah; Penubuhan syarikat dan hal-hal berkaitan dengan struktur konsesi pajakan, perjanjian dan lain-lain; Aktiviti operasi syarikat dalam Kumpulan berhubung dengan aktiviti pematuhan Syariah dan aktiviti bukan pematuhan. Aktiviti kewangan berkaitan dengan pelaburan dana, struktur kewangan dan unsur bukan patuh Syariah dalam kontrak kewangan. Untuk menasihati Lembaga Pengarah atas isuisu berkaitan dengan Syariah yang berhubung kait dengan industri dimana syarikat beroperasi. Untuk mengurus dan menasihati Lembaga Pengarah berkenaan hal-hal Syariah yang menurut yang diminta oleh Lembaga Pengarah. 6. AKAUNTABILITI DAN AUDIT 6.1 Laporan Kewangan Lembaga Pengarah beriltizam untuk memberikan gambaran penilaian yang seimbang, benar dan menyeluruh berkenaan kedudukan syarikat dalam penyata kewangan. Untuk memastikan ini, Lembaga Pengarah telah melaksanakan proses dan prosedur kewangan yang mencukupi bertujuan bagi mengekalkan rekod kewangan syarikat dan urusniaga selaras dengan piawaian perakaunan yang diterimapakai. Penyediaan laporan kewangan tahunan memberikan gambaran yang benar dan jelas berkenaan kedudukan Kumpulan dan syarikat pada tarikh laporan. Lembaga Pengarah juga beriltizam memastikan penyediaan yang seimbang dan menyeluruh berkenaan dengan operasi dan laporan kewangan Kumpulan suku tahun melalui laporan kewangan berkala. Penerbitan laporan suku tahun dilakukan sejurus selepas berakhirnya setiap suku tahun untuk pengumuman awam berserta dengan butiran yang diwajibkan dari Syarat Penyenaraian Pasaran Utama. Laporan suku tahun ini diterbitkan berserta dengan laporan kewangan lengkap yang disediakan dan diumumkan dalam Laporan Tahunan selepas berakhirnya tahun kewangan. Jawatankuasa Audit membantu Lembaga Pengarah didalam rangka Terma Rujukan bagi memastikan Laporan Kewangan disediakan selaras dengan Piawaian Laporan Kewangan Antarabangsa yang diterimapakai serta dengan peruntukan Akta Syarikat, Penyata Mengenai Tanggungjawab Pengarah- Pengarah berhubung dengan Penyata Kewangan yang diaudit dibentangkan dimuka surat 117 dalam Laporan Tahunan ini. 6.2 Kawalan Dalaman Lembaga Pengarah mengekalkan sistem kawalan dalaman yang telus bagi mengurus perjalanan harian aktiviti perniagaan syarikat. Sistem kawalan dalaman ini merupakan mekanisma bagi penyemakan dan pengimbangan dalam proses operasi dan kewangan dimana urusniaga dan proses dilakukan berpandukan kepada mekanisma penyemakan ini. Pengurusan Syarikat telah menerapkan mekanisma kawalan tersebut didalam Prosedur Tetap Operasi bagi memastikan operasi yang berterusan dan berkesan. Lembaga Pengarah telah mewajibkan Jawatankuasa Audit dengan tanggungjawab sepenuhnya bagi memastikan kecukupan, kesempurnaan dan keberkesanan sistem kawalan dalaman ini. Jawatankuasa Audit menjalankan penilaian berkala dan mengawasi pematuhan sistem ini melalui Jabatan Audit Dalaman yang menjalankan semakan audit atas kawalan dalaman dan memberikan maklumbalas terhadap keberkesanan dan pematuhan diperingkat operasi. Sebarang kelemahan atau perbezaan yang dilaporkan oleh Jabatan Audit Dalaman kepada Jawatankuasa Audit akan dijadikan asas tindakan pengurusan bagi memulihkan sebarang kelemahan didalam kawalan dalaman. Jabatan Audit Dalaman bertindak sebagai unit bebas dari pengurusan untuk menjalankan audit terhadap proses dan urusniaga perniagaan bagi unit-unit operasi melalui tatacara audit yang telah diluluskan dan melaporkan hasil penemuannya kepada Jawatankuasa Audit. Mekanisma bebas ini untuk memastikan akauntabiliti, kecukupan, dan keberkesanan sistem kawalan dalaman telah dilaksanakan, dengan memberi jaminan bahawa Lembaga Pengarah yang dikehendaki menunaikan tanggungjawab ini. Jawatankuasa Audit memantau maklumbalas dan laporan Jabatan Audit Dalaman bagi hal-hal ketidakpatuhan, kelemahan dalam sistem kawalan dalaman atau kekurangannya dan mengawasi pembetulan terhadap setiap kekurangan tersebut oleh pengurusan. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 95

98 PENYATA MENGENAI URUSTADBIR KORPORAT Menurut Perenggan dalam Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad Perincian penuh Penyata Mengenai Kawalan Dalaman dibentangkan dimuka surat 100 hingga 102 Laporan Tahunan ini. 6.3 Hubungan dengan Juruaudit Luar Lembaga Pengarah mengekalkan hubungan kerja yang baik dengan Juruaudit Luar Kumpulan, Tetuan Ernst & Young melalui Jawatankuasa Audit. Jawatankuasa Audit bertindak sebagai saluran bagi kegunaan kedua-dua Juruaudit Luar dan Dalaman untuk berkomunikasi dan berinteraksi dengan Lembaga Pengarah. Jawatankuasa Audit menjemput Juruaudit Luar untuk menghadiri mesyuarat bila perlu, tetapi sekurang-kurangnya dua kali dalam setahun, apabila menjalankan permulaan audit untuk akhir tahun dan setelah menyempurnakan audit. Juruaudit Dalaman menemui Jawatankuasa Audit sekurang-kurangnya empat kali dalam setahun. Semasa pertemuan tersebut, Juruaudit Dalaman akan membahas dan membincangkan jenis, skop audit, tatacara audit, kawalan dalaman dan masalah yang mungkin memerlukan perhatian Lembaga Pengarah. Bagi mematuhi Syarat Penyenaraian dan Prinsip Urustadbir Korporat, Jawatankuasa Audit melaksanakan tugasnya, dengan menilai skop kerja, bebas, secara objektif terhadap maklumbalas dan keputusan audit yang dijalankan oleh Juruaudit Luar dan Dalaman. Jawatankuasa Audit juga membuat perancangan untuk bertemu dan berbincang dengan Juruaudit Luar dan Dalaman secara berasingan tanpa kehadiran pengurusan atas hal-hal berkaitan dengan Kumpulan dan aktiviti audit. Dua pertemuan telah diadakan pada tahun ini. 7. PEMEGANG SAHAM DAN PELABUR Lembaga Pengarah beriltizam dibawah kewajipan Urustadbir Korporat bagi mengadakan saluran komunikasi yang berkesan dengan pemegang saham dan pelabur awam. Saluran utama untuk mengambil bahagian dan berkomunikasi dengan pemegang saham adalah ketika Mesyuarat Agung Tahunan. Semasa mesyuarat ini, Lembaga Pengarah menyediakan butiran mengenai perniagaan yang telah dijalankan dan hala tuju masa depan bagi Kumpulan. Laporan Tahunan dibentangkan dalam mesyuarat ini dan pemegang saham boleh mengambil kesempatan untuk berdialog dengan Lembaga Pengarah. Berkaitan dengan pelabur awam, Lembaga Pengarah telah melaksanakan daya usaha perhubungan pelabur dimana satu halaman sesawang telah disediakan untuk perhubungan pelabur didalam laman web rasmi syarikat dimana pengumuman rasmi yang dibuat kepada Bursa Malaysia Securities Berhad boleh didapati. Laman web ini juga membekalkan butiran peralihan saham, harga dan lain-lain carta. Selain daripada itu, Pengarah Urusan Kumpulan dan Pengawal Kewangan Kumpulan mengatur perjumpaan biasa serta perbincangan dengan penganalisa dan pelabur untuk berkongsi maklumat yang dibolehkan berkenaan perkembangan dan menjawab soalan untuk hal-hal berkaitan dengan kepentingan mereka. Mesyuarat Agung Tahunan Syarikat adalah forum terpenting di mana pemegang saham Syarikat bertemu untuk perbincangan dengan Lembaga Pengarah berkaitan dengan tataurusan perniagaan. Notis Mesyuarat Agung Tahunan dihantar kepada pemegang saham sekurang-kurangnya 21 hari sebelum tarikh mesyuarat bersama-sama dengan Laporan Kewangan dan agenda mesyuarat. Lembaga Pengarah menggalakkan semua pemegang saham untuk menghadiri Mesyuarat Agung Tahunan dan menyertai perjalanan mesyuarat. Setiap kesempatan diberikan kepada pemegang saham bagi mendapatkan penjelasan keatas prestasi Syarikat dan Kumpulan. Agenda penuh Mesyuarat Agung Tahunan NCB ke 13 yang akan datang dibentangkan di muka surat 7 hingga 9 Laporan Tahunan ini. 8. KENYATAAN MENGENAI PEMATUHAN MENURUT KOD AMALAN TERBAIK Lembaga Pengarah mengesahkan bahawa ia telah mengekalkan piawaian yang tinggi dalam amalan Urustadbir Korporat sepanjang tahun. Lembaga Pengarah juga mengesahkan bahawa ia telah menerima pakai kod semakan semula mengenai Urustadbir Korporat didalam amalan mereka. Kenyataan ini dibuat selaras dengan resolusi Lembaga Pengarah bertarikh 21 Februari TUN AHMAD SARJI BIN ABDUL HAMID Pengerusi DATO ABDUL SAMAD BIN MOHD DOM Pengarah Urusan Kumpulan 96 I NCB HOLDINGS BHD ANNUAL REPORT 2011

99 STATEMENT ON INTERNAL CONTROL INTRODUCTION The Main Market Listing Requirements of Bursa Malaysia Securities Berhad under paragraph (b), require the Board of Directors of a public listed company, to include in its Annual Report a statement about the state of its Internal Control for its group of companies. BOARD S RESPONSIBILITY The Board of NCB Holdings Bhd ( NCB ) acknowledges that it has the overall responsibility to maintain a sound system of internal control to manage and control principal risks faced by the company. This sound system of internal controls provides an assurance for the safeguarding of shareholders investment and assets of the company and its subsidiaries. Even though it is impossible to provide complete assurance through any control system, the Board is confident it has adequately designed and put in place systems and processes to properly manage the risks, evaluate reporting frameworks and to regularly review the adequacy and integrity of such systems. In order to achieve these objectives, the Board has put in place processes and has delegated adequate authority to subsidiary Boards who manage the operations of the subsidiary company, the Internal Audit department who report independently to the Audit Committee and the identification and managing of risk by the risk department who report directly to the Risk Management Committee. These independent reviews and feedbacks provide assurance to the Board on the efficiency and effectiveness of established business processes, reliability of financial information, compliance procedures with laws and regulations. This also provides an assurance on the identification, management and control of significant risk in the business. Although all such systems of internal controls and reviews are designed as a concerted and continuous process to manage rather than eliminate risks of failure in achieving corporate objectives, the Board of NCB confirms that all such processes, independent reviews and internal controls were in place and were adequate to fulfill the requirements of the Group in continuing its business undertakings. However, the Board wishes to state that all these controls can only provide reasonable but not absolute assurance against material misstatement, operational failures, fraud and losses. KEY COMPONENTS OF INTERNAL CONTROL ENVIRONMENT AND FRAMEWORK Organisational Structure In discharging its responsibilities, the NCB Board has established an organisational structure between the companies in the Group with clear lines of reporting between the Board s managing the subsidiaries, the main Board and management. Relevant limits of authority are also set within the structure for executive directors, CEO and management. Risk Management The risk management framework in NCB is an integral part of its business processes and its internal control system. Each subsidiary have their own risk secretariats who undertake the day-to-day monitoring and running of the risk control measures in their respective operating units. The Group risk framework includes the functions of the Group Risk Management department in NCB which is headed by a Risk Manager who oversees the activities and deliverables under the risk reporting structure. The Board being ultimately responsible for the risk management of the Group has delegated the duties of monitoring and reviewing the adequacy of risk controls to the Board Risk Management Committee ( RMC ) which comprise of five (5) non-executive directors from the Board. The RMC undertakes its tasks of identifying, analyzing, appraising and monitoring of the risks facing the company s operation via the Group risk management. The Risk Manager reports directly to the RMC. The RMC receives the risks management reports twice a year at its scheduled meetings but they do have additional meetings when the need arises. The terms of reference of the RMC has been drawn up in accordance with the provisions in the Malaysian Code on Corporate Governance as follows :- To identify risks and their intendant impact that the Company is already and may further be exposed to in the course of undertaking its own business or through similar undertakings of its subsidiaries; To assess and evaluate whether the approach and system for handling, mitigating and avoiding risks in place in the Company and in the subsidiaries are adequate and effective; To provide reports and recommendations to the Board from time to time on specific courses of action to be taken in matters related to risk management; To specifically recommend the adoption of the Company s risk management framework and the establishment of a risk management mechanism and supporting resource for this purpose within the management structure of the Company; NCB HOLDINGS BHD ANNUAL REPORT 2011 I 97

100 STATEMENT ON INTERNAL CONTROL To develop and implement in conjunction with the Audit independent assessment and assurance to the AC and Committee, procedures for monitoring and assessing Board on the effectiveness and soundness of the internal risks that are determined to be auditable through the controls in place. Company s annual audit programmes; In the course of performing the assignment, the GIA carries To keep the Board informed of statutory provisions and best industry practices and changes thereto pertaining to risk management; and To monitor and evaluate through reports provided at specified intervals, the work of the risk management unit and the unit dealing with health, safety and environmental practices and identify risk-linked matters connected thereto that require specific actions or reference to the Board. The RMC in discharging its responsibilities has implemented, through the Risk department, a framework which enables the committee to monitor the effectiveness and efficiency of the risk controls and procedures. A summary of the risk framework includes :- i. A logical and systematic method of identifying all business risks. ii. iii. iv. Allocating all risks to the respective risk owners. Monitoring the Group s risks through risk measurement reports and risk scorecards. Reviewing and defining mitigation and remedial measures based on the risk reports. The RMC also monitors, evaluates and reviews risk relating to large investments in projects or significant capital expenditures to ensure the Group is not exposed to unmanageable or material business risks. Internal Audit Function Based on Best practices provisions in the Malaysian Code on Corporate Governance the Board has established an internal audit function for the Group. The Group Internal Audit Department ( GIA ) are independent of the activities they audit and they perform their duties with impartiality, proficiency and due professional care. The Board has delegated the authority of managing the GIA and its functions to the Board Audit Committee ( AC ) which comprises of four (4) members of the Board. The AC has full and direct access to GIA and the internal auditors and it reviews the reports on all audits performed and monitors their performances. The AC in its terms of reference also reviews the adequacy of the internal audit department s scope of work and resources. All corrective actions recommended in the audit reports are highlighted to the respective management for implementation and compliance. The AC at the beginning of each year approves the Internal Audit programme for GIA. These assignments which are based on the risk exposure of the company, provide an out planned as well as ad-hoc visits to key business operating units to carry out their field work. Audit finding, recommendations and management s response on the findings are presented to the Audit Committee for its review and further action. Such reports are presented to the AC at its scheduled meetings six (6) times a year. During two (2) of such meetings the AC will meet with the Head, GIA without the presence of the management to obtain any independent or unbiased view on issues that may impede the performance of the GIA and the company as a whole. MANAGEMENT CONTROL PROCESSES Management Management has been entrusted to implement sound internal control systems to safeguard the interest of the shareholders. In respect to this management has set in place a well-established Standard Operating Procedures covering all significant areas of the business process. The operation of the Group s business is assigned to management of the respective subsidiaries who manage their day to day affairs. Internal controls are embedded within the mechanism for all such day-to-day activities to ensure smooth and continuous check and balance. Board The Board meets a minimum of six (6) times a year to undertake its duties, one of which is to ensure that its business strategies are run and managed on a sound system of internal controls and with efficient business processes that have been put in place. The following activities are included in the Boards process of assurance :- i) The Group Managing Director leads all presentations and reports to the Boards. A fixed agenda in all Board meetings is a report by the Group Managing Director to inform the Board on any significant changes in the business of the Group and the environment it is operating in. ii) His report covers the following :- Reviewing and Adoption of Strategic Plans The conduct of the Company s Business Identification and Managing of Principle Risks Succession Planning Investor Relation and Communications Policy Internal Control Systems The Board has put in place an organizational structure with formally defined lines of responsibility. The subsidiaries in the Group have their respective Board of directors who oversee the operation of the company s 98 I NCB HOLDINGS BHD ANNUAL REPORT 2011

101 STATEMENT ON INTERNAL CONTROL iii) iv) business and report to the Group Board via the Group CONCLUSION Managing Director. Relevant delegation of authority for subsidiary Boards and management is also in place. A In the financial year under review, the Board is of the process of hierarchical reporting has been established view that the system of internal control within the Group which provides for a documented and auditable trail of is generally adequate and effective in mitigating risks accountability. to achieve its business objectives. The Board, however, remains committed to continuous improvement in its system The Board also reviews the short and medium-term of internal control to support the type of business and size business plan annually taking into account significant of operations of the Group. The Board will put in necessary changes to the business environment and risks in the and appropriate process enhancement to safeguard industry. shareholders interest and to comply with relevant laws and regulations. The Board conducts an annual review of the strategic business planning, budgeting and forecasting of revenue and expenses to be in line with the policies and guidelines defined by the Board of NCB. Each subsidiary produces and submits an annual budget for the approval at their respective Boards and ultimately to the NCB Board for its approval. v) The Board monitors the performance of the subsidiaries and their business units by reviewing the result of the subsidiaries in comparison with their budget as reported once every two months at NCB Board Meetings. Any material variances are analysed and appropriate measures are taken in a timely manner. The external auditors have reviewed this Statement on Internal Control for the inclusion in the Annual Report of the Group for the year ended 31 December 2011 and reported to the Board that nothing has come to their attention that causes them to believe that the Statement is inconsistent with their understanding of the process the Board has adopted in the review of the adequacy and integrity of internal control of the Group. This statement is made in accordance with the resolution of the Board of Directors dated 21 February vi) It is the Board s view that the review of the internal control systems of its associated companies are not within its control as the operations are managed by separate Boards. The interests of the Group in such associate companies are represented in the respective Boards and controls are affected through the review of the management accounts and enquiries thereon. This representation also provides the Board with timely information for decision-making on the continuity of the Group s investment based on the performance of the associated companies. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 99

102 PENYATA MENGENAI KAWALAN DALAMAN PENGENALAN Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad, perenggan (b) mensyaratkan Lembaga Pengarah syarikat awam tersenarai untuk membentangkan didalam Laporan Tahunan penyata tentang kawalan tentang kawalan dalaman bagi syarikat dalam kumpulan. TANGGUNGJAWAB LEMBAGA Lembaga Pengarah NCB Holdings Bhd ( NCB ) mengakui tanggungjawab keseluruhannya keatas sistem kawalan dalaman Kumpulan adalah bagi mengurus dan mengawal risiko utama yang dihadapi oleh Syarikat. Sistem kawalan yang sempurna ini adalah bagi memelihara pelaburan pemegang saham dan harta Kumpulan berserta subsidiari. Walaupun adalah mustahil untuk membekalkan jaminan yang sempurna melalui sistem kawalan yang telah sedia ada, Lembaga Pengarah berkeyakinan telah merekabentuk dan menyediakan dengan sempurna proses bagi mengurus risiko, menilai rangkakerja maklumat serta semakan berterusan keatas kecukupan dan ketulusan sistem berkenaan. Bagi mencapai objektif ini, Lembaga Pengarah telah melaksanakan proses yang sedia ada dan telah memberi hak yang cukup kepada Lembaga Pengarah subsidiari bagi mengurus operasi syarikat subsidiari, Jabatan Audit Dalaman yang bebas melapor kepada Jawatankuasa Audit serta Jabatan Risiko yang melapor terus kepada Jawatankuasa Pengurusan Risiko bagi mengenalpasti dan mengurus risiko. Penilaian bebas dan maklumbalas ini memberikan jaminan kepada Lembaga Pengarah diatas kecekapan dan keberkesanan proses perniagaan yang kukuh, kesahihan maklumat kewangan serta pematuhan undang-undang dan peraturan. Ini juga akan memberikan jaminan bagi pengenalan, pengurusan dan kawalan bagi risiko utama dalam perniagaan. Walaupun sistem kawalan dalaman ini telah disusun atur secara bersama dan berterusan bagi mengawal dan bukan menghapuskan risiko kegagalan untuk mencapai objektif korporat, Lembaga NCB mengesahkan bahawa proses sedemikian, kajian bebas dan kawalan dalaman adalah sempurna dan mencukupi bagi memenuhi kehendak Kumpulan untuk menjalankan tanggungjawab perniagaan secara berterusan. Oleh yang demikian, Lembaga Pengarah ingin menjelaskan bahawa kawalan yang sedia ada hanya mampu memberi jaminan yang munasabah dan tidak mutlak terhadap ketidaktepatan atau kerugian operasi, penipuan atau kecurian. KOMPONEN UTAMA PERSEKITARAN KAWALAN DALAMAN DAN RANGKAKERJA Struktur Organisasi Dalam melaksanakan tanggungjawabnya, Lembaga NCB telah menubuhkan satu struktur organisasi diantara syarikat dalam Kumpulan dengan aliran tanggungjawab yang telus diantara Lembaga-lembaga Pengarah yang menguruskan subsidiari, Lembaga utama dan pengurusan. Had kuasa yang berkenaan juga ditetapkan didalam lingkungan struktur bagi pengarah eksekutif, Ketua Pegawai Eksekutif dan pengurusan. Pengurusan Risiko Rangkakerja pengurusan risiko di NCB merupakan sebahagian daripada proses perniagaan dan sistem kawalan dalaman. Setiap subsidiari mempunyai urusetia risiko sendiri yang bertanggungjawab didalam mengawal dan menjalankan langkah-langkah kawalan risiko bagi unit operasi masing-masing. Rangkakerja risiko Kumpulan mengandungi fungsi Jabatan Pengurusan Risiko Kumpulan di NCB yang diketuai oleh Pengurus Risiko yang bertanggungjawab bagi aktiviti dan penyampaian dibawah struktur laporan risiko. Lembaga-lembaga Pengarah yang akhirnya bertanggungjawab bagi pengurusan risiko dalam Kumpulan telah menyerahkan tugas mengawal dan meneliti kecukupan kawalan risiko kepada Jawatankuasa Pengurusan Risiko yang terdiri daripada lima (5) orang pengarah bukan eksekutif. Jawatankuasa Pengurusan Risiko bertanggungjawab mengenal pasti, menganalisa, menilai dan mengawal risiko yang dihadapi oleh operasi syarikat melalui pengurusan risiko Kumpulan. Pengurus Risiko melapor terus kepada Jawatankuasa Pengurusan Risiko. Jawatankuasa Pengurusan Risiko dijadualkan untuk menerima laporan pengurusan risiko sebanyak dua kali dalam setahun di mesyuarat yang telah dijadualkan, akan tetapi mesyuarat tambahan juga diadakan jika perlu. Terma rujukan Jawatankuasa Pengurusan Risiko telah digariskan selaras dengan peruntukan bagi Urustadbir Korporat Malaysia seperti berikut :- Untuk mengenal pasti risiko dan kesan sampingan dimana Syarikat telah dan mungkin terdedah seterusnya semasa menguruskan perniagaan sendiri atau melalui urusan yang serupa oleh subsidiari; Untuk menilai dan menaksir samada sistem pendekatan untuk menangani, meringankan dan mengelakkan risiko Syarikat dan subsidiari yang sedia ada adalah cukup dan berkesan; Untuk menyediakan laporan dan cadangan kepada Lembaga Pengarah dari semasa ke semasa untuk tindakan yang tepat yang perlu diambil berkaitan dengan pengurusan risiko; 100 I NCB HOLDINGS BHD ANNUAL REPORT 2011

103 PENYATA MENGENAI KAWALAN DALAMAN Untuk memberi cadangan yang tepat diatas perlaksanaan rangkakerja pengurusan risiko Syarikat dan mengukuhkan mekanisma serta bantuan sokongan didalam lingkungan struktur pengurusan Syarikat; Untuk memajukan dan melaksanakan bersama dengan Pengurusan Audit, prosedur untuk pengawasan dan menilai risiko yang boleh diaudit melalui tatakerja audit tahunan Syarikat; Untuk memaklumkan kepada Lembaga Pengarah peruntukan undang-undang dan amalan terbaik industri serta perubahan berkaitan dengan pengurusan risiko; Untuk mengawasi dan menilai laporan yang dilengkapkan dalam jarak yang tertentu, kerja-kerja pengurusan risiko dan unit yang berurusan dengan kesihatan, keselamatan dan amalan persekitaran serta risiko yang boleh dikenalpasti yang memerlukan tindakan yang tepat atau rujukan kepada Lembaga Pengarah. Dalam melaksanakan tanggungjawabnya, Jawatankuasa Pengurusan Risiko melalui Jabatan Risiko telah melaksanakan rangkakerja bagi memantau kecekapan dan keberkesanan kawalan-kawalan bagi risiko dan prosedurprosedur. Ringkasan rangkakerja risiko termasuk :- i. Kaedah logik dan sistematik untuk mengenalpasti semua risiko perniagaan. ii. Pengagihan semua risiko kepada pemilik risiko. iii. Pemantauan risiko Kumpulan melalui laporan dan pengurusan risiko. iv. Meneliti dan mendefinasikan tindakan pembetulan berdasarkan laporan risiko. Jawatankuasa Pengurusan Risiko juga memantau, menilai dan menyemak risiko terhadap pelaburan besar dalam projek atau perbelanjaan modal bagi memastikan Kumpulan tidak terdedah kepada risiko-risiko besar yang tidak dapat ditangani atau risiko perniagaan yang keterlaluan. Fungsi Audit Dalaman Berpandukan kepada amalan terbaik peruntukan Urustadbir Korporat Malaysia, Lembaga Pengarah telah menubuhkan fungsi audit dalaman bagi Kumpulan. Jabatan Audit Dalaman Kumpulan mempunyai kebebasan bagi aktiviti yang diaudit dan melaksanakan tanggungjawab dengan adil, mahir dan penjagaan secara professional yang sewajarnya. Lembaga Pengarah telah menyerahkan hak menguruskan fungsi Audit Dalaman Kumpulan kepada Jawatankuasa Audit Lembaga terdiri daripada empat (4) ahli Lembaga Pengarah. Jawatankuasa Audit mempunyai kelulusan penuh untuk berurusan secara terus dan sepenuhnya terhadap Audit Dalaman Kumpulan dan juruaudit dalaman, menyemak laporan audit yang telah dijalankan dan memantau prestasinya. Jawatankuasa Audit melalui terma rujukannya juga menyemak kecukupan skop kerja Jabatan Audit Dalaman dan juga keperluan tenaga kerjanya. Kesemua tindakan pembetulan yang diusulkan didalam laporan audit dikemukakan kepada pengurusan masing-masing bagi perlaksanaan dan pematuhan. Pada awal setiap tahun, Jawatankuasa Audit akan meluluskan perancangan audit bagi Audit Dalaman Kumpulan. Tugasan audit ini yang berdasarkan pendedahan risiko syarikat, memberi penilaian bebas dan pengesahan pada Jawatankuasa Audit dan Lembaga Pengarah mengenai keberkesanan dan kebaikan kawalan dalaman yang telah wujud. Didalam melaksanakan tugasan audit, Audit Dalaman Kumpulan juga mengadakan lawatan ke unit-unit perniagaan dalam Kumpulan secara terancang untuk menjalankan audit. Penemuan audit, cadangan serta maklumbalas pengurusan terhadap penemuan audit dibentangkan kepada Jawatankuasa Audit untuk diteliti dan membuat keputusan. Jawatankuasa Audit telah bermesyuarat sebanyak enam (6) kali sepanjang tahun. Didalam dua (2) mesyuarat tersebut, Jawatankuasa Audit telah mengadakan pertemuan dengan Ketua Audit Dalaman tanpa kehadiran pengurusan untuk mendapatkan penilaian bebas atau tidak berat sebelah bagi isu-isu yang boleh menghalang prestasi kerja Audit Dalaman Kumpulan dan syarikat keseluruhannya. PROSES KAWALAN PENGURUSAN Pengurusan Pengurusan telah diberi kepercayaan bagi melaksanakan sistem kawalan dalaman yang telus bagi menjaga kepentingan pemegang saham. Oleh yang demikian, pengurusan telah mewujudkan satu Prosedur Tetap Operasi yang kukuh meliputi semua bahagian-bahagian utama bagi proses perniagaan. Operasi perniagaan dalam Kumpulan telah diserapkan didalam pengawasan subsidiari berkenaan bagi perjalanan dan pengurusan seharian. Mekanisma Kawalan Dalaman telah diserapkan didalam prosedur operasi berkenaan bagi memastikan perjalanan yang lancar dan penyemakan berterusan dan telus. Lembaga Lembaga Pengarah telah bermesyuarat sekurangkurangnya sebanyak enam (6) kali sepanjang tahun bagi melaksanakan salah satu tanggungjawab iaitu untuk memastikan strategi perniagaan adalah berjalan dan diuruskan atas sistem kawalan yang telus. Proses kepastian kepada Lembaga Pengarah adalah seperti aktiviti-aktiviti berikut :- i) Pengarah Urusan Kumpulan mengetuai kesemua pembentangan dan laporan kepada Lembaga Pengarah. Bagi setiap mesyuarat Lembaga Pengarah, agenda tetap yang dibentangkan oleh Pengarah Urusan Kumpulan kepada Lembaga Pengarah memaparkan jika terdapat perubahan ketara pada perniagaan dan persekitaran luaran di mana syarikat beroperasi. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 101

104 PENYATA MENGENAI KAWALAN DALAMAN ii) iii) Laporan beliau merangkumi perkara berikut :- Meneliti dan menerima perancangan strategik Bertanggungjawab diatas perjalanan perniagaan Syarikat Pengenalan dan pengawasan risiko utama Perancangan penggantian sumber manusia yang berterusan Perhubungan dengan pelabur dan polisi komunikasi Sistem Kawalan Dalaman Lembaga Pengarah telah mewujudkan struktur organisasi rasmi yang menjelaskan tanggungjawab rasmi yang telus. Lembaga Pengarah bagi subsidiari masing-masing didalam Kumpulan bertanggungjawab diatas operasi perniagaan syarikat dan melapor kepada Lembaga Kumpulan melalui Pengarah Urusan Kumpulan. Penyerahan kuasa yang berkaitan bagi Lembaga Pengarah subsidiari dan pengurusan juga telah diwujudkan. Satu tatacara laporan telah digunapakai untuk membolehkan dokumentasi yang boleh diaudit mengenai tanggungjawab diwujudkan. Lembaga Pengarah juga mengkaji pelan perniagaan jangka pendek dan pertengahan disemak kembali setiap tahun dengan mengambil kira perubahan ketara pada suasana perniagaan dan risiko industri. KESIMPULAN Bagi tahun kewangan yang dilaporkan, Lembaga Pengarah berpendapat bahawa sistem kawalan dalaman bagi Kumpulan adalah secara keseluruhannya cukup dan berkesan bagi menangani risiko untuk pencapaian objektif perniagaan. Walau bagaimanapun, Lembaga Pengarah beriltizam keatas pembaikan yang berterusan didalam sistem kawalan dalaman bagi menyokong jenis perniagaan dan saiz operasi didalam Kumpulan. Lembaga Pengarah akan mewujudkan proses penambahbaikan yang perlu dan sesuai bagi menjaga kepentingan pemegang saham serta mematuhi undang-undang dan peraturan yang berkaitan. Juruaudit luar telah menyemak Penyata Mengenai Kawalan Dalaman ini bagi tujuan untuk dibentangkan didalam Laporan Tahunan Kumpulan bagi tahun berakhir 31 Disember 2011 dan melaporkan kepada Lembaga Pengarah bahawa tidak ada sebarang penemuan yang menyebabkan mereka mempercayai bahawa Penyata ini tidak konsisten dengan pemahaman mereka terhadap proses yang digunapakai oleh Lembaga Pengarah bagi meneliti kecukupan dan ketulusan sistem kawalan dalaman Kumpulan. Penyata ini dibuat selaras dengan resolusi Lembaga Pengarah bertarikh 21 Februari iv) Lembaga Pengarah menjalankan kajian tahunan dalam hal perancangan strategik perniagaan, penyediaan belanjawan dan pengunjuran keatas pendapatan dan perbelanjaan yang mana mendapat tunjuk hala daripada dasar dan garis panduan yang ditetapkan oleh Lembaga Pengarah NCB. Setiap subsidiari menyediakan rancangan perniagaan tahunan untuk kelulusan oleh Lembaga Pengarah masing-masing dan seterusnya kepada Lembaga NCB untuk keputusan muktamad. v) Lembaga Pengarah memantau prestasi subsidiarisubsidiari dan unit perniagaan dengan mengkaji pencapaian setiap subsidiari dibandingkan dengan belanjawan dan dilaporkan setiap dua bulan sekali kepada Mesyuarat Lembaga Pengarah NCB. Sebarang perbezaan pencapaian yang ketara dianalisa dan tindakan pembetulan diambil secara segera. vi) Walau bagaimanapun, Lembaga Pengarah tidak meneliti secara berjadual sistem kawalan dalaman dalam syarikat-syarikat bersekutu kerana Lembaga Pengarah tidak mempunyai kawalan secara langsung dalam operasi syarikat sedemikian yang mana diuruskan oleh Lembaga Pengarah yang berlainan. Kepentingan Kumpulan didalam syarikat bersekutu diwakili oleh Pengarah Namaan dan pemantauan dilaksanakan melalui semakan akaun pengurusan dan pertanyaan. Melalui perwakilan ini, Lembaga Pengarah menerima maklumat untuk membuat keputusan mengenai pelaburan Kumpulan keatas pencapaian syarikat-syarikat bersekutu 102 I NCB HOLDINGS BHD ANNUAL REPORT 2011

105 AUDIT COMMITTEE REPORT MEMBERS OF THE AUDIT COMMITTEE Chairman Datuk Abdul Malek bin Abdul Aziz (Independent Non-Executive Director) Members Dato Seri Dr. Haji Arshad bin Haji Hashim (Independent Non-Executive Director) Datuk Khoo Eng Choo (Independent Non-Executive Director) Syed Agel bin Syed Salim (Non Independent Non-Executive Director) The Audit Committee of NCB Holdings Bhd ( NCB ) is pleased to present the Audit Committee Report for the year ended 31 December Attendance at Meetings The record of attendance of the members of the Audit Committee for meetings held during the year is as follows :- Name No. of Meetings Held Attended Datuk Abdul Malek bin Abdul Aziz 7 7 Dato Seri Dr. Haji Arshad bin Haji Hashim 7 7 Datuk Khoo Eng Choo 7 7 Syed Agel bin Syed Salim 7 7 TERMS OF REFERENCE COMPOSITION OF THE AUDIT COMMITTEE Composition The NCB Audit Committee is comprised of four members who are directors of the Holding company s Board. In compliance with the Main Market Listing Requirements and the Malaysian Code on Corporate Governance, the Audit Committee is comprised of not less than three members, all of whom are non-executive directors and the majority being independent directors. Datuk Khoo Eng Choo meets the requirement of paragraph (c) (i) in that he is a Chartered Accountant and a member of the Malaysian Institute of Accountants. Further, all other members have been long-standing members of the Board and have working familiarity with finance and accounting practices. The committee s membership composition and terms of office are reviewed at 3 yearly intervals by the NCB Board. MEETINGS AND MINUTES Meetings The committee is scheduled to meet at least four times a year, immediately after each quarter to enable it to review in particular the Quarterly Report relating to the financial results of each quarter. The meetings are pre-scheduled at the beginning of the year and are timed just before the NCB Board meetings. The Agenda carries matters that need to be deliberated, reviewed or decided on and further to be reported to the main Board. Notices and Audit Committee papers are circulated to all members well before each meeting with sufficient time for them to prepare themselves for deliberating on the matters being raised. If the need arises, the Chairman has the discretion to call for additional meetings and to also call for the attendance of management or auditors during such meetings. During the financial year, the committee convened 7 meetings and the record of attendance is shown above. Minutes The Company Secretary is also the secretary to the Audit Committee. All minutes of meeting will be circulated to members of the committee. The chairman of the Audit Committee also reports on matters requiring attention to the NCB Board during the latter s sitting. OBJECTIVES AND AUTHORITY Objectives The Board in fulfilling its responsibility in ensuring effectiveness in quality, integrity and reliability of the internal controls, practices and processes of the Group, has set up the Audit Committee to assist and support the Board of Directors in fulfilling this objective. For the financial year the Audit Committee s objectives were as follows :- To review and assess the soundness and compliance of the Group s internal control processes; To ensure the Group s compliance with laws regulations and Listing Requirements; To ensure the quality, integrity and reliability of the process for producing the financial reports, control systems and the internal and external audit processes; To reinforce the independence of the Company s external and internal auditors; NCB HOLDINGS BHD ANNUAL REPORT 2011 I 103

106 AUDIT COMMITTEE REPORT To discuss with external auditors before the commencement of the audit on the nature, scope and the audit plan, as well as, the audit procedures to be followed; To review the condensed financial statements before the quarterly announcement to Bursa Malaysia Securities Berhad; To review the internal audit programme, monitoring major findings and the management s response and action. Carry out discussions with the internal auditors on the scope of their work, adequacy of resources and to ensure co-ordination with external auditors; To review the reports prepared by the internal auditors on the state of internal control within the Group; To review the management letter and other audit issues with the external auditors upon the completion of the year-end audit; To meet the external auditors and the internal auditors at least twice during the financial year without the presence of management; and To recommend to the Board on the appointment of the External Auditor and the audit fee payable. Authority The Audit Committee s conduct is governed by the following terms of reference decided by the Board :- It has full power and authority to investigate any matter that it deems necessary under its terms of reference. Also to seek relevant information and explanation from management and employees as it considers necessary for it to carry out its functions; It also has full and unrestricted access to any information and documents pertaining to the Group as well as to initiate direct communication with external and internal auditors and senior management of the Group; The Committee is also authorised by the Board to obtain outside legal or other independent professional advice, as it deems necessary; and The Committee is also authorised to invite any member of the management to attend the Audit Committee Meeting to clarify or provide information on any matters under its terms of reference. Duties and Responsibilities The duties and responsibilities of the Audit Committee include the follows : - 1. To recommend the appointment of the external auditors, the audit fee payable and on any issues of their resignation or dismissal; 2. To discuss and review with the external auditors before an audit commences, the nature, approach and the scope of the audit and to ensure coordination where there are more than one audit firms; 3. To review the quarterly interim results, half year and annual financial statement of the Group before submission to the Board of Directors and announcement to Bursa Malaysia Securities Berhad, focusing particularly on :- a) Any changes in or implementation of major accounting policies and procedure; b) Any significant adjustment arising from the audit; c) The going concern assumption; d) Major judgemental areas; e) Compliance with accounting standards; and f) Compliance with the Bursa Malaysia Securities Berhad, legal and regulatory requirements. 4. To discuss problems and reservations arising from the interim and final audits, and any matters the auditors may wish to discuss (in the absence of management where necessary); 5. To review best practices on disclosures in financial results and annual reports of the Company in line with the principles set out in the Malaysian Code of Practice on Corporate Governance and other applicable laws, rules, directives and guidelines; 6. To review the external auditor s management letter and management s response; 7. To review related party transactions and consider conflict of interest situation that may arise within the Group including any transaction procedure or course of conduct that raises questions of management integrity; and 8. To do the following in respect of the internal audit function : - i) Review the adequacy of the scope, functions and resources of the internal audit functions and the necessary authority that it be vested with to carry out the work; 104 I NCB HOLDINGS BHD ANNUAL REPORT 2011

107 AUDIT COMMITTEE REPORT ii) Review the internal audit programme and results of the internal audit process and where necessary ensure that appropriate action is taken on the recommendation of the internal audit function; iii) Review any appraisal or assessment of the performance of members of the internal audit function; iv) Approve any appointment or termination of senior staff members associated with the internal audit function and to provide the opportunity for the resigning staff member to submit his or her reasons for resigning; v) To consider any related party transactions that may arise within the Group; vi) To investigate or cause to be investigated any activity within its terms of reference; vii) To consider the major findings of internal investigations and the management s responses; viii) To have explicit authority over the resources such as professional advice and full access to information to investigate certain matters; and ix) To promptly report to the Bursa Malaysia Securities Berhad matters reported by it to the Board that have not been satisfactorily resolved resulting in a breach of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad. INTERNAL AUDIT The Internal Audit Department, set up under the Holding Company is an in-house function headed by the Head, Group Internal Audit and his team of internal auditors, carrying out the functions of auditing based on audit programme approved by the Audit Committee. The programme is intended to support the Audit Committee to obtain assurances on the adequacy and effectiveness of control systems in the operations of the companies in the Group. Conducted follow-up reviews to determine the adequacy, effectiveness and timeliness of action taken by management on audit recommendations; Prepare the annual audit plan for consideration and approval by the Audit Committee; Review the process of identifying and presenting the Recurrent Related Party Transactions; Review the adequacy and accuracy of the quarterly condensed financial statement before announcement to Bursa Malaysia; and Undertook several ad-hoc assignments requested by the Audit Committee. The cost incurred in running the in-house Internal Audit Department for the financial year 2011 was approximately RM716,000. During the year under review the Audit Committee apart from its normal meeting held two private sessions with the internal auditors without the presence of management to listen to issues that may require the Audit Committee s direct attention. EXTERNAL AUDIT The Audit Committee also met the external auditors in two private sessions without the presence of management to discuss audit related matters that the auditors wish to raise directly with the committee. The external auditors are also invited to attend two of the normal audit meetings of the Audit Committee in a year. One such meeting is when the auditors are about to commence the year end audit, wherein the committee will review the auditors audit plan, scope of audit work, time-line for completion and the fees to be charged. The second meeting will be upon completion of the year-end audit, where the audit committee reviews their findings, management letter points and the significant accounting matters affecting the financial statement. This report is made in accordance with a resolution of the Board of Directors dated 21 February The principal activity of the Internal Audit Department is to conduct regular and systematic review of key controls, internal control mechanisms and business processes within the Group. A summary of the Internal Audit Department s activities undertaken during the financial year are as follows :- Conducted its primary audit duty based on its audit plan to audit and evaluate the operating units of the Group based on their risk exposure; NCB HOLDINGS BHD ANNUAL REPORT 2011 I 105

108 LAPORAN JAWATANKUASA AUDIT LAPORAN JAWATANKUASA AUDIT KEAHLIAN JAWATANKUASA AUDIT Pengerusi Datuk Abdul Malek bin Abdul Aziz (Pengarah Bebas Bukan Eksekutif) Ahli-ahli Dato Seri Dr. Haji Arshad bin Haji Hashim (Pengarah Bebas Bukan Eksekutif) Datuk Khoo Eng Choo (Pengarah Bebas Bukan Eksekutif) Syed Agel bin Syed Salim (Pengarah Bukan Bebas Bukan Eksekutif) Jawatankuasa Audit NCB Holdings Bhd ( NCB ) dengan sukacitanya membentangkan Laporan Jawatankuasa Audit bagi tahun berakhir 31 Disember Kehadiran Mesyuarat Rekod kehadiran ahli-ahli Jawatankuasa Audit di mesyuarat pada sepanjang tahun adalah seperti berikut :- Nama Jumlah Mesyuarat Diadakan Kehadiran Datuk Abdul Malek bin Abdul Aziz 7 7 Dato Seri Dr. Haji Arshad 7 7 bin Haji Hashim Datuk Khoo Eng Choo 7 7 Syed Agel bin Syed Salim 7 7 TERMA RUJUKAN KOMPOSISI JAWATANKUASA AUDIT Komposisi Jawatankuasa Audit NCB terdiri oleh empat pengarah bebas yang merupakan anggota Lembaga Pengarah syarikat induk. Selaras dengan Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad dan Amalan Terbaik bagi Urustadbir Korporat Malaysia, Jawatankuasa Audit NCB terdiri tidak kurang daripada tiga ahli, kesemua adalah pengarah bukan eksekutif dan majoriti adalah pengarah bebas. Datuk Khoo Eng Choo memenuhi syarat pada perenggan (c) (i) dimana beliau adalah pemegang kelulusan perakaunan dan beliau juga seorang ahli Institut Perakaunan Malaysia. Selain itu, kesemua ahli jawatankuasa yang lain mempunyai pengetahuan dan pemahaman yang memuaskan mengenai amalan-amalan asas kewangan dan perakaunan. Lembaga NCB mengamalkan prosedur untuk menilai prestasi ahli-ahli Jawatankuasa Audit dan tempoh mereka memegang jawatan setiap 3 tahun. MESYUARAT DAN MINIT Mesyuarat Mesyuarat Jawatankuasa Audit dijadualkan untuk diadakan sekurang-kurangnya empat kali setiap tahun, untuk membolehkannya meneliti Laporan Kewangan Suku Tahun berkenaan setiap suku tahun. Mesyuarat Jawatankuasa Audit dijadualkan pada awal tahun dan diadakan sebelum mesyuarat Lembaga Pengarah. Notis mesyuarat Jawatankuasa Audit akan diedarkan kepada ahli-ahli sebelum tarikh mesyuarat. Jawatankuasa juga menerima agenda dan setiap laporan untuk perbincangan dengan masa secukupnya untuk pemahaman dan persediaan untuk bermesyuarat. Selain daripada itu, Pengerusi mempunyai budi bicara untuk memanggil mesyuarat tambahan serta meminta kehadiran pengurusan atau juruaudit dalaman dalam mana-mana mesyuarat. Pada tahun yang dilaporkan, Jawatankuasa telah bermesyuarat sebanyak 7 kali dan rekod kehadiran mesyuarat adalah seperti tertera diatas. Minit Setiausaha Syarikat yang juga merupakan Setiausaha Jawatankuasa Audit akan mengedarkan minit mesyuarat kepada setiap ahli jawatankuasa. Pengerusi Jawatankuasa Audit akan melaporkan perkara-perkara berbangkit yang memerlukan perhatian Lembaga NCB semasa bermesyuarat. OBJEKTIF DAN BIDANG KUASA Objektif Bagi menyempurnakan tanggungjawabnya dalam memastikan keberkesanan kualiti, ketelusan dan kebolehpercayaan kawalan dalaman, amalan dan proses bagi Kumpulan, Lembaga Pengarah telah menubuhkan Jawatankuasa Audit bagi membantu dan menyokong Lembaga Pengarah dalam memenuhi objektif-objektif didalam bidang tugasnya. Pada tahun yang dilaporkan, objektif-objektif Jawatankuasa Audit adalah seperti berikut :- Untuk meneliti dan menilai keberkesanan dan pematuhan terhadap proses kawalan dalaman Kumpulan; 106 I NCB HOLDINGS BHD ANNUAL REPORT 2011

109 LAPORAN JAWATANKUASA AUDIT Untuk memastikan pematuhan Kumpulan terhadap undang-undang, peraturan dan Syarat Penyenaraian; Untuk memastikan kualiti, ketelusan dan kesahihan proses pengeluaran laporan kewangan, sistem kawalan dan proses audit dalaman serta luaran; Untuk menguatkan kebebasan juruaudit luar dan juruaudit dalaman Syarikat; Untuk berbincang dengan juruaudit luar sebelum permulaan proses audit, skop dan rancangan audit dan juga tatacara audit yang akan digunakan; Untuk meneliti penyata kewangan yang disatukan sebelum Laporan Kewangan Suku Tahun diumumkan kepada Bursa Malaysia Securities Berhad; Untuk meneliti program audit dalaman, memantau pemerhatian utama dan maklumbalas serta tindakan pengurusan. Mengadakan perbincangan dengan juruaudit dalaman mengenai skop kerja mereka, kecukupan sumber tenaga dan penyelarasan dengan juruaudit luar; Untuk meneliti laporan yang disediakan oleh juruaudit dalaman mengenai keadaan kawalan dalaman Kumpulan; Untuk meneliti laporan dan isu-isu lain yang dibentangkan oleh juruaudit luar selepas tamatnya proses pengauditan akhir tahun; Untuk bertemu dengan juruaudit luar dan dalam sekurang-kurangnya dua kali sepanjang tahun kewangan tanpa kehadiran pihak pengurusan; dan Untuk mengesyorkan kepada Lembaga Pengarah mengenai perlantikan Juruaudit Luar dan yuran audit yang akan dibayar. Bidang Kuasa Perlaksanaan tugas Jawatankuasa Audit tertakluk kepada terma rujukan yang ditentukan oleh Lembaga Pengarah seperti berikut :- Jawatankuasa mempunyai kuasa penuh untuk menyiasat sebarang hal yang berada di dalam terma rujukannya. Jawatankuasa juga dibenarkan mencari maklumat yang diperlukan daripada pengurusan dan para pekerjanya untuk menjalankan tugasnya; Jawatankuasa mempunyai kuasa penuh dan tidak terhad untuk mendapatkan sebarang maklumat dan dokumen yang berkaitan dengan Kumpulan dan untuk berkomunikasi secara langsung dengan juruaudit luaran dan dalaman dan pihak pengurusan kanan Kumpulan; Jawatankuasa juga dibenarkan oleh Lembaga Pengarah untuk mendapatkan khidmat nasihat guaman luar atau lain-lain penasihat professional bebas dimana perlu; dan Jawatankuasa juga dibenarkan untuk menjemput mana-mana ahli pengurusan untuk menghadiri Mesyuarat Jawatankuasa Audit bagi memberi penjelasan atau membekalkan maklumat berkenaan hal-hal di dalam terma rujukannya. Tugas dan Tanggungjawab Tugas dan tanggungjawab Jawatankuasa Audit meliputi perkara-perkara berikut :- 1. Untuk menimbangkan perlantikan juruaudit luar, bayaran audit dan hal-hal bersabit dengan perletakan jawatan atau penamatan pelantikan; 2. Untuk berbincang dan meneliti dengan juruaudit luar sebelum permulaan audit, bentuk, pendekatan dan skop audit dan memastikan penyelarasan di mana terdapat lebih daripada satu firma juruaudit; 3. Untuk meneliti keputusan penyata kewangan suku tahun, setengah tahun dan tahunan Kumpulan, sebelum dikemukakan kepada Lembaga Pengarah dan diumumkan kepada Bursa Malaysia Securities Berhad, dengan memberikan tumpuan kepada isu seperti berikut : - a) Mana-mana perubahan atau perlaksanaan dasar dan tatacara perakaunan utama; b) Mana-mana pelarasan ketara yang timbul daripada kerja audit; c) Asas-asas bagi keberterusan perniagaan; d) Hal-hal bersabit dengan keputusan utama; e) Pematuhan terhadap piawaian perakaunan; dan f) Pematuhan terhadap syarat-syarat Bursa Malaysia Securities Berhad, perundangan dan peraturan kawalselia. 4. Untuk membincangkan masalah dan pemerhatian yang timbul daripada audit awal dan audit akhir, dan lain-lain perkara yang ingin dibincangkan oleh juruaudit (tanpa kehadiran wakil pengurusan dimana perlu); 5. Untuk mengkaji amalan terbaik mengenai keadaan melaporkan keputusan kewangan dan laporan tahunan bagi Syarikat sejajar dengan prinsip yang digariskan dalam Kod Amalan Mengenai Urustadbir Korporat Malaysia dan lain-lain perundangan, peraturan dan arahan serta garis panduan yang berkenaan; 6. Untuk meneliti laporan juruaudit luar untuk audit yang dijalankan dan maklumbalas yang diberi oleh pengurusan; NCB HOLDINGS BHD ANNUAL REPORT 2011 I 107

110 LAPORAN JAWATANKUASA AUDIT 7. Untuk meneliti urusniaga pihak berkait dan keadaan percanggahan kepentingan yang mungkin timbul dalam Kumpulan, termasuk mana-mana urusniaga, prosedur atau tindakan yang boleh menimbulkan persoalan terhadap ketelusan pengurusan; dan 8. Untuk melaksanakan perkara berikut bersabit dengan fungsi audit dalaman : - i) Menilai kecukupan skop, fungsi, tenaga kerja dan kuasa unit audit dalaman untuk menjalankan tugas mereka; ii) Meneliti program audit dalaman dan keputusan daripada proses audit dalaman dan di mana perlu; iii) Menilai penilaian dan pengukuran yang dibuat mengenai prestasi ahli-ahli bahagian audit dalaman; iv) Meluluskan mana-mana perlantikan dan penamatan perlantikan kakitangan peringkat kanan yang berkaitan dengan bahagian audit dalaman dan memberikan kesempatan kepada kakitangan yang meletak jawatan menjelaskan sebab perletakan jawatan; v) Untuk mempertimbangkan mana-mana urusniaga melibatkan pihak berkait yang mungkin timbul dalam Kumpulan; vi) Untuk menyiasat atau mengarahkan penyiasatan mana-mana aktiviti yang termasuk dalam bidang rujukannya; vii) Untuk mempertimbangkan penemuan utama dari penyiasatan dalaman dan maklumbalas daripada pengurusan; viii) Untuk menggunakan kuasanya keatas sumbersumber seperti nasihat professional dan kebebasan memperolehi maklumat untuk tujuan menyiasat perkara-perkara tertentu; dan ix) Untuk melaporkan dengan segera kepada Bursa Malaysia Securities Berhad mengenai perkara-perkara yang dilaporkan olehnya kepada Lembaga Pengarah yang mana tidak diselesaikan dengan memuaskan dan mengakibatkan keadaan yang menyalahi Syarat Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad. AUDIT DALAMAN Jabatan Audit Dalaman yang ditubuhkan dalam Kumpulan, diketuai oleh Ketua Audit Dalaman Kumpulan dan pasukannya, menjalankan fungsi berpandukan perancangan audit yang telah diluluskan oleh Jawatankuasa Audit. Perancangan ini bagi membantu Jawatankuasa Audit mendapatkan kepastian diatas kecukupan dan keberkesanan sistem kawalan operasi syarikat dalam Kumpulan. Aktiviti utama Jabatan Audit Dalaman adalah menjalankan penelitian yang kerap dan sistematik untuk kawalan utama, sistem kawalan dalaman dan proses perniagaan dalam Kumpulan. Ringkasan aktiviti Jabatan Audit Dalaman pada tahun kewangan yang dilapor adalah seperti berikut : - Mengendalikan tugas utama audit berdasarkan pelan auditnya dan menilai semua unit operasi Kumpulan berdasarkan pendedahan risiko masing-masing; Mengendalikan penelitian susulan untuk menentukan kecukupan, keberkesanan dan ketepatan tindakan yang diambil oleh pihak pengurusan ke atas cadangan-cadangan audit; Menyediakan pelan audit tahunan untuk pertimbangan dan kelulusan daripada Jawatankuasa Audit; Meneliti proses mengenalpasti dan pembentangan Urusniaga Pihak Berkait Berulang; Meneliti kecukupan dan ketepatan penyata kewangan suku tahun yang disatukan sebelum diumumkan kepada Bursa Malaysia Securities Berhad; dan Melaksanakan beberapa tugas khusus yang telah diminta oleh Jawatankuasa Audit. Jumlah kos bagi menjalankan fungsi Jabatan Audit Dalaman untuk tahun kewangan 2011 berjumlah RM716,000. Sepanjang tahun yang dilaporkan, selain daripada mesyuarat biasa, Jawatankuasa Audit telah mengadakan dua (2) pertemuan dengan juruaudit dalaman untuk perbincangan isu-isu yang memerlukan perhatian Jawatankuasa Audit tanpa kehadiran pengurusan. AUDIT LUARAN Jawatankuasa Audit juga bertemu dengan Juruaudit Luar sebanyak dua kali tanpa kehadiran pengurusan bagi membincangkan perkara-perkara berkaitan audit yang memerlukan perhatian Jawatankuasa Audit. Juruaudit Luar juga dijemput untuk menghadiri dua mesyuarat biasa Jawatankuasa Audit dalam setahun. Salah satu mesyuarat ialah pada permulaan audit dimana Jawatankuasa Audit akan meneliti perancangan audit luaran, skop tugasan audit, tarikh tamat perancangan dan yuran yang dikenakan. Mesyuarat kedua akan diadakan sejurus selepas tamatnya proses pengauditan akhir tahun, dimana Jawatankuasa Audit akan meneliti laporan audit mengenai penemuan, cadangan serta maklumbalas pengurusan serta perkara berkaitan kewangan yang melibatkan penyata kewangan. Laporan ini dibuat berdasarkan resolusi Lembaga Pengarah bertarikh 21 Februari I NCB HOLDINGS BHD ANNUAL REPORT 2011

111 OTHER INFORMATION REQUIRED BY THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD 1. SHARE BUYBACKS The Company did not enter into any share buyback transactions for the financial year OPTIONS OR WARRANTS For the financial year ended 2011, the Company did not issue any options, warrant or any other forms of security. 3. IMPOSITION OF SANCTIONS AND PENALTIES There were no sanctions or penalties imposed on the Company or its subsidiaries, directors or management by the relevant regulatory bodies during the financial year NON-AUDIT FEE The following payments were made to Messrs. Ernst & Young as non-audit fee for the year : Non-Audit Fee 99,000 35,000 RM RM 5. CONFLICT OF INTEREST Except to the extent highlighted in the directors profile in pages 64 to 73, the directors are not aware of any other conflict of interest with the listed issuer that existed at the end of the financial year 31 December RECURRENT RELATED PARTY TRANSACTION The aggregate value of the Recurrent Related Party Transactions of a revenue or trading nature conducted pursuant to the shareholders mandate during the financial year under review between the Company and/or its subsidiary companies with related parties are set out below : - Related Party Involved with the Company and / or Subsidiary Relationship Type of Transaction Aggregate Value of Transaction (RM) Million PETRONAS PETRONAS has an indirect interest in NCB by virtue of its shareholdings as stated in Note 1 and Note 3. Interested Director : - Datuk Nasarudin bin Md Idris Provision of container haulage, warehouse, depot, freight forwarding services by Kontena Nasional Group of Companies to PETRONAS Group of Companies. 2.5 PETRONAS PETRONAS is a major shareholder in PETRONAS Dagangan Berhad, the equity interest is stated in Note 3. It is related to NCB by virtue of its shareholding as stated in Note 1. Provision of diesel and lubricants by PETRONAS Dagangan Bhd and its subsidiary to Northport (Malaysia) Bhd and Kontena Nasional Berhad Interested Director : - Datuk Nasarudin bin Md Idris NCB HOLDINGS BHD ANNUAL REPORT 2011 I 109

112 OTHER INFORMATION REQUIRED BY THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD Related Party Involved with the Company and / or Subsidiary Relationship Type of Transaction Aggregate Value of Transaction (RM) Million PETRONAS PETRONAS has an indirect interest in NCB by virtue of its shareholdings as stated in Note 1 and Note 3. Provision of port services by Northport (Malaysia) Bhd to PETRONAS Dagangan Berhad. 1.1 Interested Director : - Datuk Nasarudin bin Md Idris PETRONAS PETRONAS has an indirect interest in NCB by virtue of its shareholdings as stated in Note 1 and Note 2. Provision of port services by Northport (Malaysia) Bhd to MISC Agencies Sdn Bhd 48.9 Interested Director : - Datuk Nasarudin bin Md Idris PNB PNB has an interest in NCB by virtue of its shareholdings as stated in Note 4. Interested Directors : Tun Ahmad Sarji bin Abdul Hamid Dato Haji Rahmat bin Jamari Syed Agel bin Syed Salim Dato Zuraidah binti Atan Provision of container haulage, warehousing, depot and freight forwarding services by Kontena Nasional Berhad to Sime Darby Berhad, Telekom Malaysia Berhad, UMW Holdings Berhad and Tenaga Nasional Berhad PNB PNB has an interest in NCB by virtue of its shareholdings as stated in Note 4. Interested Directors :- Tun Ahmad Sarji bin Abdul Hamid Dato Haji Rahmat bin Jamari Syed Agel bin Syed Salim Dato Zuraidah binti Atan Provision of spare parts, repairs and maintenance, supply of equipment to Northport (Malaysia) Bhd by UMW Holdings Berhad I NCB HOLDINGS BHD ANNUAL REPORT 2011

113 OTHER INFORMATION REQUIRED BY THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD Note 1 i) PETRONAS has an indirect interest in NCB by virtue of its 62.67% direct shareholding in MISC Berhad, which in turn has a 15.73% direct shareholding in NCB. ii) PNB has a direct shareholding of 5.0% in NCB and an indirect shareholding of 50.95% in NCB by virtue of the shareholdings of unit trust funds managed by PNB in NCB held under AmanahRaya Trustees Berhad. Note 2 MISC Agencies Sdn Bhd is a wholly-owned subsidiary of MISC Berhad. PETRONAS has a 62.67% equity interest in MISC Berhad. Note 3 Name of PETRONAS related company PETRONAS Chemicals Ammonia Sdn Bhd (formerly known as PETRONAS Ammonia Sdn. Bhd.) Equity Interest held by PETRONAS (%) PETRONAS Gas Berhad PETRONAS Penapisan (Melaka) Sdn Bhd PETRONAS Dagangan Berhad BASF PETRONAS Chemical Sdn Bhd 40.0 PETRONAS Carigali Sdn Bhd PETRONAS Chemicals MTBE Sdn Bhd (formerly known as MTBE Malaysia Sdn Bhd) PETRONAS Base Oil (M) Sdn Bhd Polypropylene (M) Sdn Bhd Carigali Hess Operating Company Sdn Bhd 50.0 Carigali PTTEPI Operating Company Sdn Bhd 50.0 Note 4 Name of PNB related company Equity Interest held by PNB and its managed funds (%) UMW Holdings Berhad 56.58** Sime Darby Berhad 53.50* Tenaga Nasional Berhad 16.27* Telekom Malaysia Berhad 16.47** * Figures based on 2011 Annual Reports. ** Figures based on 2010 Annual Reports. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 111

114 OTHER INFORMATION REQUIRED BY THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD 7. MATERIAL CONTRACTS RELATED TO LOAN There were no material contracts related to loans entered into by the Company and/or its subsidiary companies involving directors and substantial shareholders during the financial year PROFIT ESTIMATION, FORECAST OR PROJECTION There were no profit estimation, forecast or projection made or released by the Company during the financial year PROFIT GUARANTEES There were no profit guarantees given by the Company during the financial year under review. 10. VARIATIONS IN RESULTS There were no variations in results from any profit estimation, forecast, projection or unaudited results announced. 11. EMPLOYEE SHARE SCHEME There were no Employee Share Scheme currently in existence nor issued during the financial year I NCB HOLDINGS BHD ANNUAL REPORT 2011

115 LAIN-LAIN MAKLUMAT YANG DIKEHENDAKI OLEH SYARAT PENYENARAIAN PASARAN UTAMA BURSA MALAYSIA SECURITIES BERHAD 1. PEMBELIAN BALIK SAHAM Syarikat tidak menjalankan sebarang urusniaga pembelian balik saham bagi tahun kewangan OPSYEN ATAU WARAN Bagi tahun kewangan 2011, Syarikat tidak mengeluarkan opsyen, waran atau sekuriti yang lain. 3. PENGENALAN CELAAN ATAU HUKUMAN Tidak ada sebarang celaan atau hukuman yang dikenakan ke atas Syarikat atau subsidiari-subsidiarinya, pengarah atau pengurusan oleh pihak berkuasa kawalselia sepanjang tahun kewangan BAYARAN BUKAN-AUDIT Berikut adalah yuran bukan-audit yang dibayar kepada Tetuan Ernst & Young bagi tahun ini : RM RM Yuran Bukan Audit 99,000 35, PERCANGGAHAN KEPENTINGAN Selain daripada butiran dan konteks yang dinyatakan dalam profil pengarah pada mukasurat 64 hingga 73, pengarahpengarah tidak mengetahui adanya percanggahan kepentingan yang lain dengan syarikat yang wujud pada hujung tahun kewangan berakhir 31 Disember URUSNIAGA PIHAK BERKAIT BERULANG Jumlah urusniaga pihak berkait berulang yang bersifat hasil atau perniagaan dijalankan menurut mandat pemegang saham yang telah diluluskan sepanjang tahun kewangan yang dilaporkan diantara Syarikat dan/atau subsidiari-subsidiari dengan pihak berkait dibentangkan seperti berikut :- Pihak Berkait Terlibat dengan Syarikat dan / atau Subsidiari Hubungan Jenis Urusniaga Jumlah Nilai Urusniaga (RM) Juta PETRONAS PETRONAS mempunyai kepentingan tidak langsung dalam NCB melalui pegangannya seperti yang dinyatakan di Nota 1 dan Nota 3. Pengarah Berkepentingan :- Datuk Nasarudin bin Md Idris Pembekalan perkhidmatan pengangkutan kontena, pergudangan, depot dan perkhidmatan pengangkutan oleh Kumpulan Kontena Nasional kepada Kumpulan PETRONAS. 2.5 PETRONAS PETRONAS merupakan pemegang saham utama PETRONAS Dagangan Berhad, kepentingan sahamnya dinyatakan di Nota 3. Ia berkait dengan NCB melalui pegangan sahamnya seperti dinyatakan di Nota 1. Pembekalan diesel dan minyak pelincir oleh PETRONAS Dagangan Bhd dan subsidiarinya kepada Northport (Malaysia) Bhd dan Kontena Nasional Berhad 74.4 Pengarah Berkepentingan :- Datuk Nasarudin bin Md Idris NCB HOLDINGS BHD ANNUAL REPORT 2011 I 113

116 LAIN-LAIN MAKLUMAT YANG DIKEHENDAKI OLEH SYARAT PENYENARAIAN PASARAN UTAMA BURSA MALAYSIA SECURITIES BERHAD Pihak Berkait Terlibat dengan Syarikat dan / atau Subsidiari Hubungan Jenis Urusniaga Jumlah Nilai Urusniaga (RM) Juta PETRONAS PETRONAS mempunyai pegangan tidak langsung melalui pegangan sahamnya seperti dinyatakan di Nota 1 dan Nota 3. Pembekalan perkhidmatan pelabuhan oleh Northport (Malaysia) Bhd kepada PETRONAS Dagangan Berhad 1.1 Pengarah Berkepentingan :- Datuk Nasarudin bin Md Idris PETRONAS PETRONAS mempunyai pegangan tidak langsung melalui pegangan sahamnya seperti dinyatakan di Nota 1 dan Nota 2. Pembekalan perkhidmatan pelabuhan oleh Northport (Malaysia) Bhd kepada MISC Agencies Sdn Bhd 48.9 Pengarah Berkepentingan :- Datuk Nasarudin bin Md Idris PNB PNB mempunyai kepentingan melalui pegangan saham seperti dinyatakan di Nota 4. Pengarah Berkepentingan :- Tun Ahmad Sarji bin Abdul Hamid Dato Haji Rahmat bin Jamari Syed Agel bin Syed Salim Dato Zuraidah binti Atan Pembekalan perkhidmatan pengangkutan kontena, pergudangan, depot dan perkhidmatan pengangkutan oleh Kontena Nasional Berhad kepada Sime Darby Berhad, Telekom Malaysia Berhad, UMW Holdings Berhad dan Tenaga Nasional Berhad PNB PNB mempunyai kepentingan melalui pegangan saham seperti dinyatakan di Nota 4. Pengarah Berkepentingan : - Tun Ahmad Sarji bin Abdul Hamid Dato Haji Rahmat bin Jamari Syed Agel bin Syed Salim Dato Zuraidah binti Atan Pembekalan alat ganti, baikpulih dan penyelenggaraan peralatan kepada Northport (Malaysia) Bhd oleh UMW Holdings Berhad I NCB HOLDINGS BHD ANNUAL REPORT 2011

117 LAIN-LAIN MAKLUMAT YANG DIKEHENDAKI OLEH SYARAT PENYENARAIAN PASARAN UTAMA BURSA MALAYSIA SECURITIES BERHAD Nota 1 i) PETRONAS mempunyai kepentingan tidak langsung di dalam NCB melalui pegangan saham terus sebanyak 62.67% di dalam MISC Berhad, di mana ia mempunyai pegangan saham langsung sebanyak 15.73% dalam NCB. ii) PNB mempunyai pegangan langsung sebanyak 5.0% di dalam NCB dan pegangan tidak langsung sebanyak 50.95% di dalam NCB melalui pegangan saham menerusi dana amanah yang diuruskan oleh PNB yang dipegang melalui Amanah Raya Trustees Berhad. Nota 2 MISC Agencies Sdn Bhd adalah subsidiari milik penuh MISC Berhad. PETRONAS mempunyai 62.67% pegangan saham di dalam MISC Berhad. Nota 3 Nama syarikat berkait PETRONAS PETRONAS Chemicals Ammonia Sdn Bhd (dahulunya dikenali sebagai PETRONAS Ammonia Sdn. Bhd.) Kepentingan saham dipegang oleh PETRONAS (%) PETRONAS Gas Berhad PETRONAS Penapisan (Melaka) Sdn Bhd PETRONAS Dagangan Berhad BASF PETRONAS Chemical Sdn Bhd 40.0 PETRONAS Carigali Sdn Bhd PETRONAS Chemicals MTBE Sdn Bhd (dahulunya dikenali sebagai MTBE Malaysia Sdn Bhd) PETRONAS Base Oil (M) Sdn Bhd Polypropylene (M) Sdn Bhd Carigali Hess Operating Company Sdn Bhd 50.0 Carigali PTTEPI Operating Company Sdn Bhd 50.0 Nota 4 Nama syarikat berkait PNB Kepentingan saham dipegang oleh PNB dan dana yang dikendalikannya (%) UMW Holdings Berhad 56.58** Sime Darby Berhad 53.50* Tenaga Nasional Berhad 16.27* Telekom Malaysia Berhad 16.47** * Angka berdasarkan Laporan Tahunan **Angka berdasarkan Laporan Tahunan NCB HOLDINGS BHD ANNUAL REPORT 2011 I 115

118 LAIN-LAIN MAKLUMAT YANG DIKEHENDAKI OLEH SYARAT PENYENARAIAN PASARAN UTAMA BURSA MALAYSIA SECURITIES BERHAD 7. KONTRAK KETARA BERKAIT DENGAN PINJAMAN Tidak ada sebarang kontrak ketara yang berkait dengan pinjaman dijanjikan oleh Syarikat dan/atau subsidiarisubsidiarinya yang melibatkan pengarah dan pemegang saham utama dalam tahun kewangan ANGGARAN KEUNTUNGAN, RAMALAN ATAU JANGKAAN Tidak ada anggaran keuntungan, ramalan atau jangkaan yang dibuat atau diumumkan oleh Syarikat dalam tahun kewangan JAMINAN KEUNTUNGAN Tidak ada jaminan keuntungan diberi oleh Syarikat dalam tahun kewangan ini. 10. PERBEZAAN PENCAPAIAN Tidak terdapat sebarang perbezaan diantara anggaran keuntungan, jangkaan atau laporan belum teraudit daripada yang telah diumumkan. 11. SKIM SAHAM PEKERJA Tidak terdapat Skim Saham Pekerja yang wujud setakat ini atau dikeluarkan dalam tahun kewangan I NCB HOLDINGS BHD ANNUAL REPORT 2011

119 STATEMENT OF DIRECTORS RESPONSIBILITY IN RELATION TO THE AUDITED FINANCIAL STATEMENTS PENYATA MENGENAI TANGGUNGJAWAB PENGARAH-PENGARAH BERHUBUNG DENGAN PENYATA KEWANGAN YANG DIAUDIT Directors are required to state whether the Group s financial statements are drawn up in accordance with approved accounting standards so as to give a true and fair view of the Group s state of affairs, their results and their cashflows for the financial year then ended. In preparing the financial statement, the Directors have ensured that :- The Group and the Company have used appropriate accounting policies and have applied them consistently; Reasonable and prudent judgments and estimates were made; and All applicable approved accounting standards in Malaysia have been followed. The directors are responsible for ensuring that the Company maintains accounting records that disclose with reasonable accuracy the financial position of the Group and the Company, and which enables them to ensure that the financial statements comply with the Companies Act, The directors also have the general responsibilities for taking such steps that are reasonably available to them to safeguard the assets of the Group, and to prevent and detect fraud and other irregularities. This statement is made in accordance with a resolution of the Board of Directors dated 21 February Pengarah-pengarah adalah dikehendaki menyatakan sama ada penyata kewangan disediakan berdasarkan piawaian perakaunan yang diluluskan untuk memberikan gambaran yang benar dan tepat mengenai hal ehwal Kumpulan dan keputusan perniagaan serta aliran tunai bagi tahun kewangan yang berakhir. Dalam menyediakan penyata kewangan ini, Pengarah-pengarah mengesahkan bahawa :- Kumpulan dan Syarikat telah menggunakan dasar perakaunan yang bersesuaian dan secara berterusan; Telah membuat pertimbangan dan anggaran yang berpatutan dan wajar; dan Telah mematuhi piawaian perakaunan yang diluluskan di Malaysia dan berkenaan. Pengarah-pengarah adalah bertanggungjawab memastikan bahawa Syarikat menyimpan rekod perakaunan yang menunjukkan dengan tahap ketepatan yang munasabah kedudukan kewangan Kumpulan dan Syarikat dan membolehkan mereka memastikan bahawa penyata kewangan ini mematuhi sepenuhnya peruntukan Akta Syarikat, Pengarah-pengarah mempunyai tanggungjawab umum untuk mengambil tindakan yang sesuai untuk melindungi harta-benda Kumpulan, dan mengelakkan daripada berlakunya serta mengesan penyelewengan dan lain-lain bentuk salahperlakuan. Kenyataan ini dibuat menurut ketetapan Lembaga Pengarah bertarikh 21 Februari NCB HOLDINGS BHD ANNUAL REPORT 2011 I 117

120 CORPORATE SOCIAL RESPONSIBILITY Chairman of NCB Holdings Bhd, Tun Ahmad Sarji giving away donation in conjunction with Majlis Ihya Ramadhan at Northport. Get-together with 250 Prime Mover drivers and staff at Northport branch Hi-tea with 40 children from Pusat Aktiviti Kanak-kanak Jalan Chow Kit KN collaborated with DPMs office to help repair houses for the poor community in Ampang 118 Corporate Social Responsibility ( CSR ) in the Malaysian Corporate understanding has progressed beyond philanthropy or public relations or donations. CSR is expected to cover transformation in corporate culture with ingrained business practices and ethical values to deliver sustainable value to the organization and society at large. NCB Board of Directors believes in the principles of CSR and promotes activities that extend the organizations social policy on environmental protection and preservation, a conducive workplace for employees, supporting the community in the vicinity and market place. Our CSR activities are mainly carried out through the operating subsidiaries as they are the ones continuously in contact with the market place and community in their respective operating roles. The companies have undertaken the following activities during the year under review :- The Work Place For the comfort of employees the companies have provided in-house canteens to reduce the time and effort in travelling during meal times. These canteens also provide quality meals at a slightly subsidized cost. For recreational activities sports centres and rest areas are provided for staffs to unwind and to mingle during meal and other break times. In one of the subsidiaries its inhouse sports club organizes sporting events and activities such as fishing competition, futsal, badminton and other indoor games. Its sports centre also houses a gym for their workout session. I NCB HOLDINGS BHD ANNUAL REPORT 2011 During the year, Kontena Nasional also organized a gettogether for their 250 Prime Mover drivers treating them to food and activities during the gathering. Northport as an annual affair organizes a Majlis Berkhatan dan Berkhatam Al-Quran for the children of its employees. The Community The companies carry out various community activities in support of the local residents and villages in the vicinity of our companies operations. Northport is of the belief that to have a winning organisation it must also add value to society and engage local community to better their lives. In this regard, it carries out donation activities for local community centres, residents associations, religious establishments and schools. During the year, it undertook visits to orphanage in Sekindi, Sabak Bernam where the staffs contributed learning materials and monetary support. They also visited the Pertubuhan Masyarakat Prihatin Malaysia, distributed rice bags and other food items. During the month of Ramadhan, Northport organized the breaking of fast with 200 orphans and widows from the surrounding areas of Klang and Port Klang. In emphasizing that education is a necessary part of community development, the staff of Northport undertook to sponsor the supply of copies of the New Straits Times to five schools in Port Klang. The aim is to equip students with better oral communication, vocabulary and improved reading skills. Kontena Nasional in support of the less fortunate children organized a Chinese New Year treat for the children of Rumah KIDS. In conjunction with the Deputy Prime

121 CORPORATE SOCIAL RESPONSIBILITY Hi Tea event with 60 children from various charity homes in Ipoh Hari Raya Open House for 60 children of Yayasan Chow Kit at Chairman s Residence Majlis Berkhatan and Berkhatam Al-Quran 2011 at Northport Chinese New Year treat for Children of Rumah KIDS in Subang Jaya Minister s Office it also helped in the repair of houses for the poor in Ampang. They also hosted 60 children from various charity homes around its branch vicinity in Ipoh for a Hi-Tea event. In a separate event, the Chairman Tun Ahmad Sarji and his wife, Toh Puan Sagiyah Salikin generously opened the doors to their home and entertained about 60 children from Yayasan Chow Kit, in conjunction with the Hari Raya Celebration. The Environment As a continuous effort to preserve the environment where the companies operate, activities were undertaken to contribute towards safer and cleaner environment. Northport realizes that their operation can have an impact on the environment and are committed in minimizing such impact. They participate in curative and preventive efforts in cleaning up the surrounding. They also monitor waste matters being released into the drains and sea apart from operating a waste management plant that treats sludge and oil before being released into the environment. During the year they participated in cleaning the river and the Pulau Ketam Jetty during the Cleaner Marina Day event, working alongside the local council and the activity also included Mangrove Planting and Mangrove Clearing. Relationship with Market Place The Group also engages with shareholders, suppliers and customers in relationship-building initiatives. The companies have regular get-together and social events to meet their suppliers and customers to discuss and clear business issues. In addition to the foregoing, the Holding company has at its level consistently been extending financial support towards worthwhile initiatives for the betterment of members of society. Amongst the assistance extended were those in support of young talent development in the fields of sports, covering cricket, lawn-bowl and golf. Assistance has also been extended to a local surau for financing the purchase of a kereta jenazah. Financial assistance was also extended to an NGO to support its programme for home repairs for poor families in Malacca. As part of its long term initiative towards employee sustainability, the Holding company has been running a scholarship and loan assistance programme for the children of the employees in the Group. The aim is to provide full scholarship for further studies in selected renowned universities overseas for students with excellent results. The company also provides loan assistance for students to pursue their higher education locally. Up to this point, the scheme has sponsored five full scholarship students and assisted 28 students with financial support for study in local universities. CONCLUSION The Group will continue to improve in its part to contribute and to make the CSR activities an integral part of the corporate obligations to promote the Group as a good corporate citizen. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 119

122 TANGGUNGJAWAB SOSIAL KORPORAT Penyerahan suratkhabar New Straits Times kepada kanakkanak sekolah NCB menyumbang kepada Surau Asassudin bagi Program Kem Cuti Sekolah mereka Kejohanan Futsal bersama pelanggan Northport Gotong-royong pembersihan pantai Tanggungjawab Sosial Korporat ( TSK ) didalam pemahaman Korporat Malaysia telah berkembang lebih jauh daripada hanya kedermawanan, perhubungan awam atau sumbangan. TSK dijangkakan dapat membuat perubahan ke atas budaya korporat dengan menanam nilai-nilai etika serta menyampaikan kelangsungan nilainilai utama kepada organisasi dan masyarakat secara am nya. Lembaga Pengarah NCB percaya bahawa prinsip-prinsip TSK boleh memajukan aktiviti-aktiviti yang menyumbang ke arah dasar sosial organisasi atas perlindungan persekitaran dan pemeliharaan, lokasi kerja yang sesuai bagi kakitangan, membantu masyarakat di kawasan persekitaran serta pasaran sekitar. Aktiviti TSK kami kebanyakannya dijalankan melalui subsidiari memandangkan mereka yang sentiasa berhubungan dengan pasaran sekitar dan masyarakat melalui peranan operasi masing-masing. Syarikat- syarikat telah menjalankan aktiviti-aktiviti berikut sepanjang tahun yang dilaporkan :- Lokasi Kerja Untuk keselesaan kakitangan, syarikat telah menyediakan kantin bagi mengurangkan masa dan usaha dalam perjalanan ke tempat rehat. Kantin-kantin ini juga menyajikan makanan yang berkualiti pada harga subsidi yang berpatutan. Bagi aktiviti rekreasi, pusat sukan dan kawasan rehat disediakan untuk kakitangan beriadah dan bergaul semasa waktu makan dan waktu rehat. Satu syarikat mempunyai kelab sukan yang menganjurkan acara dan aktiviti sukan seperti pertandingan memancing, futsal, badminton dan lain-lain permainan dalaman. Pusat sukan ini juga mempunyai gimnasium untuk sesi latihan mereka. Dalam tahun ini, Kontena Nasional telah menganjurkan majlis makan bersama-sama dengan 250 pemandu Prime Mover dengan menjamu makanan dan aktiviti semasa keraian itu. Sebagai acara tahunan, Northport telah menganjurkan Majlis Berkhatan dan Berkhatam Al-Quran untuk anak-anak pekerja Northport. Komuniti Syarikat juga menjalankan pelbagai aktiviti sokongan masyarakat bagi membantu penduduk setempat dikawasan dimana syarikat beroperasi. Northport berkepercayaan bahawa untuk menjadi organisasi yang berjaya, ia harus menambahbaik nilai kepada masyarakat dan mengambil bahagian untuk mempertingkatkan diri. Dari segi ini, ia telah menjalankan aktiviti sumbangan kepada warga masyarakat setempat, persatuan penduduk, pusat-pusat beribadat dan sekolah. Dalam tahun ini, ia telah membuat lawatan ke rumah anak-anak yatim di Sekendi, Sabak Bernam dimana kakitangan menyumbang bahan-bahan bacaan, kewangan dan meluangkan masa bersama mereka. Mereka juga telah membuat lawatan ke Pertubuhan Masyarakat Prihatin Malaysia dengan menyumbang bungkusan beras dan makanan keperluan yang lain. Tidak lupa juga semasa di bulan ramadhan, Northport telah menganjurkan majilis berbuka puasa bersama 200 anak-anak yatim dan balu dari kawasan persekitaran Klang dan Pelabuhan Klang. Dalam menitikberatkan bahawa pelajaran adalah perlu sebagai sebahagian daripada pembangunan masyarakat, kakitangan Northport telah menaja surat khabar New Straits Times bagi lima buah sekolah di Pelabuhan Klang. Ini bertujuan untuk melengkapkan pelajar-pelajar dengan kemahiran komunikasi lisan dan perbendaharaan kata yang baik serta memperbaiki kemahiran pembacaan. 120 I NCB HOLDINGS BHD ANNUAL REPORT 2011

123 TANGGUNGJAWAB SOSIAL KORPORAT Penyampaian beras kepada Pertubuhan Masyarakat Perihatin Malaysia Bowling bersama Pelanggan Northport NCB menganjurkan Pertandingan Badminton untuk Kejohanan Kumpulan PNB Lawatan ke rumah anak yatim Sekendi Sabak Bernam Kontena Nasional dalam membantu kanak-kanak yang kurang bernasib baik, telah menganjurkan majlis keraian bersempena dengan sambutan Tahun Baru Cina untuk kanak-kanak dari Rumah KIDS. Selain dari itu, Kontena Nasional dengan anjuran bersama pejabat Timbalan Perdana Menteri telah membantu dan memperbaiki rumah-rumah masyarakat miskin di Ampang. Sebagai acara kebajikan, mereka telah menghiburkan 60 kanakkanak dari beberapa buah rumah kebajikan disekitar cawangan mereka di Ipoh dalam majlis minum petang. Di majlis yang berasingan, Pengerusi Tun Ahmad Sarji dan isteri, Toh Puan Sagiyah Salikin dengan murah hati telah mengadakan rumah terbuka untuk 60 kanak-kanak dari Yayasan Chow Kit bersempena dengan sambutan Hari Raya Aidil Fitri. Persekitaran Sebagai usaha yang berterusan untuk memelihara alam sekitar dimana Syarikat beroperasi, aktiviti pembersihan telah dijalankan sebagai sumbangan ke arah mewujudkan persekitaran yang selamat dan bersih. Northport sedar akan hasil operasi mereka yang boleh mempunyai kesan ke atas alam sekitar dan beriltizam untuk mengurangkan kesan tersebut. Mereka telah mengambil bahagian dalam usaha bagi memelihara dan mengawal kebersihan kawasan persekitaran. Mereka juga memantau bahan sisa yang dilepaskan ke saluran air dan laut serta mempunyai loji rawatan sisa yang merawat keladak dan minyak sebelum disalurkan ke persekitaran. Pada tahun ini, mereka telah mengambil bahagian dalam usaha pembersihan sungai dan jeti Pulau Ketam semasa upacara Cleaner Marina Day, dan bekerjasama dengan majlis perbandaran tempatan dalam program menanam pokok bakau dan pembersihan kawasan bakau. Hubungan dengan Pasaran Sekitar Kumpulan juga terlibat bersama dengan pemegang saham, pembekal dan pelanggan dalam amalan perniagaan etika yang memenuhi harapan pemegang saham. Syarikat mengadakan perjumpaan kerap dan majlis sosial dengan pembekal dan pelanggan bagi membincangkan dan menjelaskan isu-isu perniagaan. Selain dari aktiviti diatas, Syarikat Induk telah juga bergiat menghulurkan bantuan kewangan terhadap program yang membawa faedah kepada anggota masyarakat umum. Antaranya ialah bantuan yang dihulurkan kearah pembangunan bakat muda dalam sukan kriket, boling padang dan golf. Bantuan kewangan juga telah dipanjangkan kepada sebuah surau tempatan untuk membiayai pembelian sebuah kereta jenazah. Sebuah badan bukan kerajaan juga telah dibantu untuk menjalankan program memperbaiki rumah usang bagi warga miskin di Melaka. Sebagai sokongan memelihara kakitangan dalam jangka panjang, Syarikat Induk telah mengadakan program bantuan biasiswa dan pendidikan bagi anak-anak pekerja dalam Kumpulan. Tujuan ini ialah memberikan biasiswa penuh untuk melanjutkan pelajaran di pusat pengajian yang terkemuka diluar negara bagi pelajar yang mendapat keputusan cemerlang. Ia juga menyediakan bantuan kewangan dalam bentuk pinjaman bagi pelajar yang berhasrat melanjutkan pelajaran di pusat pengajian tinggi dalam negeri. Setakat ini, skim ini telah membantu lima pelajar dengan biasiswa penuh dan 28 pelajar dengan bantuan pinjaman untuk pengajian di universiti tempatan. KESIMPULAN Kumpulan NCB akan terus mempertingkatkan prestasi diri dalam menyumbang dan menjadikan aktiviti TSK sebagai sebahagian daripada tanggungjawab korporat untuk memajukan Kumpulan sebagai warga korporat yang baik. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 121

124 YEAR ROUND-UP 2011 LIPUTAN TAHUN 2011 JanuaryJanuari 12 January / Januari MOU of Kontena Nasional Berhad with Gerimis Baiduri Sdn Bhd on strategic collaboration on Halal-JAKIM. Memorandum persefahaman diantara Kontena Nasional Berhad dan Gerimis Baiduri Sdn Bhd bagi menandakan kerjasama strategik untuk Halal-JAKIM. 18 January / Januari Collective Agreement between Kontena Nasional Berhad and Transport Workers Union. Perjanjian Bersama diantara Kontena Nasional Berhad dan Kesatuan Pekerja- Pekerja Pengangkutan. 28 January / Januari Maiden call by M.V. KMTC Qingdao to Northport. Persinggahan sulung M.V. Qingdao ke Northport. FebruaryFebruari 6 February / Februari M.V. Empress Heaven on its maiden call to Northport. M.V. Empress Heaven melakukan persinggahan sulung ke Northport. 21 February / Februari Northport hosted Cement Industries (Sabah) Sdn Bhd on information exchange on OHSAS Northport dan Cement Industries (Sabah) Sdn Bhd bertukar maklumat mengenai OHSAS MarchMac March / Mac Karnival Usahawan Tani 2011, co-hosted by Kontena Nasional Berhad and Ministry of Agriculture and Agro-Based Industry. Karnival Usahawan Tani 2011 yang dihoskan secara bersama oleh Kontena Nasional Berhad dan Kementerian Pertanian dan Industri Asas Tani. 28 March / Mac The Twelfth Annual General Meeting of NCB Holdings Bhd at Hilton Petaling Jaya. Mesyuarat Agung Tahunan NCB Holdings Bhd kali ke-dua belas diadakan di Hilton Petaling Jaya. 122 I NCB HOLDINGS BHD ANNUAL REPORT 2011

125 YEAR ROUND-UP 2011 LIPUTAN TAHUN 2011 AprilApril 13 April / April Kontena Nasional Berhad was conferred the Halal Logistics Service Provider of the Year 2011 by Frost & Sullivan. Kontena Nasional Berhad telah dianugerahkan dengan Penyedia Perkhidmatan Logistik Halal bagi tahun 2011 oleh Frost & Sullivan April / April Group Managing Director of NCB Holdings Bhd, Dato Abdul Samad bin Mohamed receiving an appreciation plaque from Dato Ramly bin Zahari, Chairman of Infrastructure, Public Amenities, Energy and Water Committee of Perak State in conjunction with Minggu Saham Amanah Malaysia in Ipoh, Perak. Pengarah Urusan Kumpulan NCB Holdings Bhd, Dato Abdul Samad bin Mohamed menerima plak penghargaan daripada Dato Ramly bin Zahari, Pengerusi Jawatankuasa Infrastruktur, Kemudahan Awam, Tenaga dan Air sempena Minggu Saham Amanah Malaysia di Ipoh, Perak. 28 April / April Indonesian Forwarders Association visit to Northport. Lawatan Gabungan Forwarder dan Ekspedisi Indonesia ke Northport. MayMei 9 May / Mei Maiden call by M.V. Sinar Kapuas to Northport. Pelayaran sulung M.V. Sinar Kapuas ke Northport. 10 May / Mei Working visit by Public Private Partnership Unit (UKAS) of the Prime Minister s Department to Northport. Lawatan kerja Unit Kerjasama Awam Swasta (UKAS), Jabatan Perdana Menteri ke Northport. JuneJun 7 June / Jun Launch of Kontena Nasional Berhad Sales Package for the SMEs by Deputy Prime Minister Tan Sri Muhyiddin Yassin at SMIDEX Exhibition with En Hood bin Osman, its Chief Executive Officer. Pelancaran Pakej Jualan Khas Kontena Nasional Berhad oleh Timbalan Perdana Menteri, Tan Sri Muhyiddin Yassin di Pameran SMIDEX, disaksikan oleh En Hood bin Osman Ketua Pegawai Eksekutifnya. 21 June / Jun Northport hosted a Get Together for its Container Customer. Northport manganjurkan majlis Get Together untuk Pelanggan Kontenanya. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 123

126 YEAR ROUND-UP 2011 LIPUTAN TAHUN 2011 JulyJulai 13 July / Julai Northport hosted Get Together for its Conventional and Logistics Customers. Northport menganjurkan majlis Get Together untuk Pelanggan Konvensional dan Logistiknya. 25 July / Julai Northport received M.V. Dorian Schulte, on its maiden call to Port Klang. Northport menerima M.V. Dorian Schulte, persinggahan sulung ke Pelabuhan Klang. AugustOgos 23 August / Ogos In its appreaciation on media contribution and their continuous support, Northport hosted buka puasa for editors and journalist. Sebagai penghargaan ke atas sumbangan dan sokongan media, Northport menganjurkan majlis berbuka puasa untuk editor dan wartawan. 26 August / Ogos Kontena Nasional Berhad celebrated its 40th Anniversary with Majlis Berbuka Puasa with staff. Kontena Nasional Berhad menyambut ulangtahun ke-40 dengan Majlis Berbuka Puasa bersama kakitangan. SeptemberSeptember 28 September / September Managing Director/Chief Executive Officer of Northport, Dato Basheer Hassan presents a momento to representative of Indonesia Port Corporation IV on its visit to Northport. Pengarah Urusan/Ketua Pegawai Eksekutif Northport, Dato Basheer Hassan menyampaikan cenderahati kepada wakil Perbadanan Pelabuhan IV Indonesia sempena lawatan ke Northport. 30 September / September Kontena Nasional Berhad 40th Anniversay Gala Dinner at Sime Darby Convention Centre with customers and business associates. Majlis Makan Malam Gala 40 tahun Kontena Nasional Berhad untuk para pelanggan dan rakan sekutu perniagaan di Sime Darby Convention Centre. 124 I NCB HOLDINGS BHD ANNUAL REPORT 2011

127 YEAR ROUND-UP 2011 LIPUTAN TAHUN 2011 OctoberOktober 11 October / Oktober Dato Basheer Hassan, Managing Director/Chief Executive Officer of Northport welcoming Toyofuji Shipping representative to Northport. Dato Basheer Hassan, Pengarah Urusan/Ketua Pegawai Eksekutif Northport mengalukan kunjungan wakil Toyofuji Shipping ke Northport. 27 October / Oktober Dato Sri Ismail Sabri bin Yaakob, Minister of Domestic Trade, Co-operation and Consumerism officiate COOP 1 Malaysia product and Kontena Nasional Distribution Centre 16. Dato Sri Ismail Sabri bin Yaakob, Menteri Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan merasmikan produk COOP 1 Malaysia dan Pusat Pengedaran Ke-16 Kontena Nasional. NovemberNovember 30 November / November Student of Malaysia Maritime Academy study visit to Northport. Pelajar Akademi Laut Malaysia (ALAM) membuat lawatan sambil belajar ke Northport. DecemberDisember 8 December / Disember Northport welcoming study visits from students of Universiti Teknologi MARA cawangan Puncak Perdana, Selangor. Northport menerima kunjungan pelajar Universiti Teknologi MARA cawangan Puncak Perdana, Selangor. NCB HOLDINGS BHD ANNUAL REPORT 2011 I 125

128

129 Financial Statements Directors Report Statement By Directors 132 Statutory Declaration 132 Independent Auditors Report Consolidated Statement Of Comprehensive Income 135 Consolidated Statement Of Financial Position 136 Consolidated Statement Of Changes In Equity 137 Consolidated Statement Of Cash Flows 138 Statement Of Comprehensive Income 139 Statement Of Financial Position 140 Statement Of Changes In Equity 141 Statement Of Cash Flows 142 Notes To The Financial Statements

130 DIRECTORS REPORT The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Company for the year ended 31 December Principal activities The principal activities of the Company are investment holding and the provision of management services to its subsidiaries. The principal activities of the subsidiaries are described in Note 16 to the financial statements. There have been no significant changes in the nature of these activities during the financial year. Results Group RM 000 Company RM 000 Profit, net of tax 158,989 6,777 Profit attributable to: Equity holders of the Company 158,927 6,777 Non-controlling interests ,989 6,777 There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the financial statements. In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were not affected by any item, transaction or event of a material and unusual nature other than the effects arising from the changes in accounting policies due to the adoption of IC Interpretation 12: Service Concession Arrangements as disclosed in Note 2.2 to the financial statements. Dividends The amounts of dividends paid by the Company since 31 December 2010 were as follows: In respect of the financial year ended 31 December 2010, as reported in the directors report of that year: RM 000 Special dividend of 20% less 25% taxation, on 470,252,708 ordinary shares declared on 28 March 2011 and paid on 6 May ,538 Final dividend of 10% less 25% taxation, on 470,252,708 ordinary shares declared on 28 March 2011 and paid on 6 May ,269 In respect of the financial year ended 31 December 2011: Interim dividend of 59% less 25% taxation, on 470,252,708 ordinary shares declared on 27 June 2011 and paid on 2 August ,087 Interim dividend of 7% single tier dividend, on 470,252,708 ordinary shares declared on 22 August 2011 and paid on 12 October , , NCB HOLDINGS BHD ANNUAL REPORT I

131 DIRECTORS REPORT Dividends (continued) At the forthcoming Annual General Meeting, the following dividend will be proposed for shareholders approval in respect of the financial year ended 31 December 2011: RM 000 Final dividend of 10% single tier dividend, on 470,252,708 ordinary shares 47,025 The financial statements for the current financial year do not reflect these proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in equity as an appropriation of retained earnings in the next financial year ending 31 December Directors The names of the directors of the Company in office since the date of the last report and at the date of this report are: Y.A. Bhg. Tun Ahmad Sarji bin Abdul Hamid Dato Abdul Samad bin Mohd Dom Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Hj. Wan Yaacob Dato Seri Dr. Haji Arshad bin Haji Hashim Dato Haji Rahmat bin Jamari Dato Zuraidah binti Atan Datuk Abdul Malek bin Abdul Aziz Datuk Khoo Eng Choo Syed Agel bin Syed Salim Datuk Nasarudin bin Md Idris In accordance with Article 84 of the Company s Articles of Association, Dato Zuraidah binti Atan and Syed Agel bin Syed Salim retire at the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election. Pursuant to Section 129(2) of the Companies Act, 1965, Y.A. Bhg. Tun Ahmad Sarji bin Abdul Hamid, Tan Sri Dato (Dr.) Ir. Wan Abdul Rahman bin Hj. Wan Yaacob and Datuk Abdul Malek bin Abdul Aziz retire at the forthcoming Annual General Meeting and are seeking re-appointment as directors under the provisions of Section 129(6) of the Companies Act, 1965 to hold office until the next Annual General Meeting of the Company. Directors benefits Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Company was a party, whereby the directors might acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate. Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefits included in the aggregate amount of emoluments received or due and receivable by the directors or the fixed salary of a full-time employee of the Company as shown in Note 7 and Note 8 to the financial statements) by reason of a contract made by the Company or a related corporation with any director or with a firm of which he is a member, or with a company in which he has a substantial financial interest. NCB HOLDINGS BHD ANNUAL REPORT I

132 DIRECTORS REPORT Directors interests According to the register of directors shareholdings, the interests of directors in office at the end of the financial year in shares in the Company and its related corporations during the financial year were as follows: Number of ordinary shares of RM1 each 1 January 31 December 2011 Acquired Sold 2011 The Company Direct interest: Dato Haji Rahmat bin Jamari 19, ,359 Syed Agel bin Syed Salim 18, ,359 Deemed interest: Dato Abdul Samad bin Mohd Dom 3, ,000 Datuk Abdul Malek bin Abdul Aziz 1, ,000 None of the other directors in office at the end of the financial year had any interest in shares in the Company or its related corporations during the financial year. Other statutory information (a) Before the statement of comprehensive income and statement of financial position of the Group and of the Company were made out, the directors took reasonable steps: (i) (ii) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate provision had been made for doubtful debts; and to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected so to realise. (b) At the date of this report, the directors are not aware of any circumstances which would render: (i) (ii) the amount written off for bad debts or the amount of the provision for doubtful debts in the financial statements of the Group and of the Company inadequate to any substantial extent; and the values attributed to the current assets in the financial statements of the Group and of the Company misleading. (c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate. 130 NCB HOLDINGS BHD ANNUAL REPORT I

133 DIRECTORS REPORT Other statutory information (continued) (d) (e) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financial statements of the Group and of the Company which would render any amount stated in the financial statements misleading. As at the date of this report, there does not exist: (i) (ii) any charge on the assets of the Group or of the Company which has arisen since the end of the financial year which secures the liabilities of any other person; or any contingent liability of the Group or of the Company which has arisen since the end of the financial year. (f) In the opinion of the directors: (i) (ii) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Group or of the Company to meet their obligations when they fall due; and no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of the operations of the Group or of the Company for the financial year in which this report is made. Significant events Significant events during the year are disclosed in Note 38 to the financial statements. Auditors The auditors, Ernst & Young, have expressed their willingness to continue in office. Signed on behalf of the Board in accordance with a resolution of the directors dated 21 February Y.A. Bhg. Tun Ahmad Sarji bin Abdul Hamid Datuk Nasarudin bin Md Idris NCB HOLDINGS BHD ANNUAL REPORT I

134 STATEMENT BY DIRECTORS Pursuant to Section 169(15) of the Companies Act, 1965 We, Y.A. Bhg. Tun Ahmad Sarji bin Abdul Hamid and Datuk Nasarudin bin Md Idris, being two of the directors of NCB Holdings Bhd., do hereby state that, in the opinion of the directors, the accompanying financial statements set out on pages 135 to 191 are drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2011 and of their financial performance and cash flows for the year then ended. The information set out in Note 39 to the financial statements have been prepared in accordance with the Guidance on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants. Signed on behalf of the Board in accordance with a resolution of the directors dated 21 February Y.A. Bhg. Tun Ahmad Sarji bin Abdul Hamid Datuk Nasarudin bin Md Idris STATUTORY DECLARATION Pursuant to Section 169(16) of the Companies Act, 1965 I, John Selvaraj James, being the officer primarily responsible for the financial management of NCB Holdings Bhd., do solemnly and sincerely declare that the accompanying financial statements set out on pages 135 to 191 are in my opinion correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, Subscribed and solemnly declared by the abovenamed John Selvaraj James at Port Klang, Selangor Darul Ehsan on 21 February John Selvaraj James Before me, 132 NCB HOLDINGS BHD ANNUAL REPORT I

135 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF NCB HOLDINGS BHD. (Incorporated in Malaysia) Report on the financial statements We have audited the financial statements of NCB Holdings Bhd., which comprise the statements of financial position as at 31 December 2011 of the Group and of the Company, and the statements of comprehensive income, statements of changes in equity and statements of cash flows of the Group and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 135 to 190. Directors responsibility for the financial statements The directors of the Company are responsible for the preparation of financial statements that give a true and fair view in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia, and for such internal controls as the directors determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Group s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2011 and of their financial performance and cash flows for the year then ended. Report on other legal and regulatory requirements In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following: (a) (b) (c) (d) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act. We have considered the financial statements and the auditors reports of all the subsidiaries of which we have not acted as auditors, which are indicated in Note 16 to the financial statements, being financial statements that have been included in the consolidated financial statements. We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of the Company are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations required by us for those purposes. The auditors reports on the financial statements of the subsidiaries were not subject to any qualification and did not include any comment required to be made under Section 174(3) of the Act. NCB HOLDINGS BHD ANNUAL REPORT I

136 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF NCB HOLDINGS BHD. (CONTINUED) (Incorporated in Malaysia) Other matters The supplementary information set out in Note 39 on page 191 is disclosed to meet the requirement of Bursa Malaysia Securities Berhad. The directors are responsible for the preparation of the supplementary information in accordance with Guidance on Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants ( MIA Guidance ) and the directive of Bursa Malaysia Securities Berhad. In our opinion, the supplementary information is prepared, in all material respects, in accordance with the MIA Guidance and the directive of Bursa Malaysia Securities Berhad. This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report. Ernst & Young AF: 0039 Chartered Accountants Ismed Darwis bin Bahatiar No. 2921/04/12(J) Chartered Accountant Kuala Lumpur, Malaysia 21 February NCB HOLDINGS BHD ANNUAL REPORT I

137 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 2011 Note Restated RM 000 RM 000 Revenue 4 928, ,893 Other income 5 33,833 33, , ,806 Staff costs 6 (206,465) (198,364) Operating expenditure 7 (565,701) (523,902) Operating profit 189, ,540 Share of profit of an associate Profit before tax 190, ,149 Income tax expense 9 (31,164) (45,132) Profit net of tax, representing total comprehensive income for the year 158, ,017 Attributable to: Equity holders of the Company 158, ,935 Non-controlling interest , ,017 Earnings per share attributable to equity holders of the Company (sen): Basic, for profit net of tax Diluted, for profit net of tax The accompanying accounting policies and explanatory notes form an integral part of the financial statements. NCB HOLDINGS BHD ANNUAL REPORT I

138 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2011 As at Note Restated Restated RM 000 RM 000 RM 000 ASSETS Non-current assets Property, plant and equipment , , ,778 Prepaid land lease payments 13 5,992 6,292 6,592 Investment properties 14 2,166 2,230 2,294 Intangible assets , , ,172 Investments in associates 17 7,355 6,885 6,276 Other investments 18 1,534 1,534 1,534 Long term receivables Deferred tax assets 28 13,412 13,729 13,380 1,026,507 1,045,828 1,113,503 Current assets Inventories 20 9,094 7,384 5,742 Trade and other receivables , , ,609 Tax recoverable 11,972 15,652 3,458 Cash and bank balances , , , ,346 1,110, ,711 TOTAL ASSETS 1,936,853 2,156,380 2,096,214 LIABILITIES AND EQUITY Current liabilities Provisions 23 4,228 6,986 6,986 Trade and other payables , , ,684 Borrowings 29 1, Provision for concession liability 30 38,384 38,384 37,512 Current tax payable , , ,918 Net current assets 674, , ,793 Non-current liabilities Deferred tax liabilities 28 36,490 46,540 46,660 Borrowings 29 5, Provision for concession liability 30 26,957 54,435 79,115 69, , ,775 Total liabilities 305, , ,693 Net assets 605, , ,018 Equity attributable to equity holders of the Company Share capital , , ,253 Share premium Other reserves , , ,415 Retained earnings ,740 1,144,883 1,088,701 1,631,713 1,816,856 1,760,674 Non-controlling interest - 2,929 2,847 Total equity 1,631,713 1,819,785 1,763,521 TOTAL LIABILITIES AND EQUITY 1,936,853 2,156,380 2,096,214 The accompanying accounting policies and explanatory notes form an integral part of the financial statements. 136 NCB HOLDINGS BHD ANNUAL REPORT I

139 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2011 < -----Attributable to equity holders of the Company -----> <Non-distributable> Other Distributable Non - Share Share reserves retained controlling Total Note capital premium (Note 26) earnings Total interest equity RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 At 1 January , ,415 1,218,863 1,890,836 2,929 1,893,765 Effects of adopting IC Interpretation (73,980) (73,980) - (73,980) At 1 January 2011, restated 470, ,415 1,144,883 1,816,856 2,929 1,819,785 Profit net of tax, representing total comprehensive income , , ,989 Transaction with owners Acquisition of non - controlling interest ,741 2,741 (2,991) (250) Dividends (346,811) (346,811) - (346,811) At 31 December , , ,740 1,631,713-1,631,713 At 1 January , ,415 1,180,210 1,852,183 2,847 1,855,030 Effects of adopting IC Interpretation (91,509) (91,509) - (91,509) At 1 January 2010, restated 470, ,415 1,088,701 1,760,674 2,847 1,763,521 Profit net of tax, representing total comprehensive income , , ,017 Transaction with owners Dividends (98,753) (98,753) - (98,753) At 31 December , ,415 1,144,883 1,816,856 2,929 1,819,785 The accompanying accounting policies and explanatory notes form an integral part of the financial statements. NCB HOLDINGS BHD ANNUAL REPORT I

140 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2011 Note Restated RM 000 RM 000 Cash flows from operating activities Profit before tax 190, ,149 Adjustments for: Share of profit of an associate (470) (609) Depreciation of property, plant and equipment 12 89,222 75,821 Amortisation of investment properties Amortisation of intangible assets 15 77,620 70,429 Amortisation of prepaid land lease payments Unwinding of discount from provision for concession liability 30 10,906 13,704 Allowance for impairment losses on receivables 21 7,413 9 Reversal of allowance for impairment losses on other receivables 21 (192) (1,702) Property, plant and equipment written off Reversal of unused provision for claims 23 (1,523) - Interest income 5 (22,694) (20,107) Gain on disposal of property, plant and equipment 5 (3,918) (6,867) Operating profit before working capital changes 346, ,310 Increase in trade and other receivables (27,960) (41,310) Decrease in trade and other payables (37,517) (9,375) Increase in inventories (1,710) (1,641) Cash generated from operations 279, ,984 Taxes paid (37,551) (58,004) Net cash generated from operating activities 242, ,980 Cash flows from investing activities Purchase of property, plant and equipment 12 (105,262) (45,209) Purchase of intangible assets 15 (43,751) (33,000) Proceeds from sale of property, plant and equipment 5,197 7,028 Interest received 20,926 20,813 Acquisition from non-controlling interest in a subsidiary 16 (250) - Net cash used in investing activities (123,140) (50,368) Cash flows from financing activities Proceed from borrowings 29 7,063 - Dividends paid (346,811) (98,753) Net cash used in financing activities (339,748) (98,753) Net (decrease)/increase in cash and cash equivalents (220,745) 71,859 Cash and cash equivalents at beginning of year 874, ,902 Cash and cash equivalents at end of year , ,761 The accompanying accounting policies and explanatory notes form an integral part of the financial statements. 138 NCB HOLDINGS BHD ANNUAL REPORT I

141 STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 2011 Note RM 000 RM 000 Revenue 4 5, ,544 Other income 5 9,586 11,014 15, ,558 Staff costs 6 (3,893) (3,084) Operating expenditure 7 (2,096) (1,856) (5,989) (4,940) Profit before tax 9, ,618 Income tax expense 9 (2,440) (34,494) Profit net of tax, representing total comprehensive income for the year 6, ,124 The accompanying accounting policies and explanatory notes form an integral part of the financial statements. NCB HOLDINGS BHD ANNUAL REPORT I

142 STATEMENT OF FINANCIAL POSITION As at 31 December 2011 Note RM 000 RM 000 ASSETS Non-current assets Property, plant and equipment Investments in subsidiaries , ,051 Other investments , ,904 Current assets Trade and other receivables 21 9,134 16,618 Cash and bank balances , , , ,169 TOTAL ASSETS 599, ,073 LIABILITIES AND EQUITY Current liabilities Trade and other payables 24 2,097 1,818 Current tax payable ,285 2,042 Net current assets 126, ,127 Non-current liabilities Deferred tax liabilities Total liabilities 2,349 2,104 Net assets 126, ,065 Equity attributable to equity holders of the Company Share capital , ,253 Share premium Retained earnings , ,411 Total equity 596, ,969 TOTAL LIABILITIES AND EQUITY 599, ,073 The accompanying accounting policies and explanatory notes form an integral part of the financial statements. 140 NCB HOLDINGS BHD ANNUAL REPORT I

143 STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2011 Non - distributable Distributable Share share retained Total Note capital premium earnings equity RM 000 RM 000 RM 000 RM 000 At 1 January , , ,969 Profit for the year, representing total comprehensive income - - 6,777 6,777 Transaction with owners Dividends (346,811) (346,811) At 31 December , , ,935 At 1 January , , ,598 Profit for the year, representing total comprehensive income , ,124 Transaction with owners Dividends (98,753) (98,753) At 31 December , , ,969 The accompanying accounting policies and explanatory notes form an integral part of the financial statements. NCB HOLDINGS BHD ANNUAL REPORT I

144 STATEMENT OF CASH FLOWS For the year ended 31 December 2011 Note RM 000 RM 000 Cash flows from operating activities Profit before tax 9, ,618 Adjustments for: Depreciation of property, plant and equipment Dividend income - (128,503) Interest income 5 (9,586) (11,014) Operating loss before working capital changes (254) (759) Decrease/(increase) in trade and other receivables 7,964 (9,248) Increase/(decrease) in other payables 279 (403) Cash generated from/(used in) operations 7,989 (10,410) Taxes paid (2,474) (2,083) Net cash generated from/(used in) operating activities 5,515 (12,493) Cash flows from investing activities Purchase of property, plant and equipment 12 (18) (39) Dividend received - 96,377 Interest received 9,106 11,609 Net cash generated from investing activities 9, ,947 Cash flows from financing activity Dividends paid, representing net cash used in financing activity (346,811) (98,753) Net decrease in cash and cash equivalents (332,208) (3,299) Cash and cash equivalents at beginning of year 451, ,850 Cash and cash equivalents at end of year , ,551 The accompanying accounting policies and explanatory notes form an integral part of the financial statements. 142 NCB HOLDINGS BHD ANNUAL REPORT I

145 NOTES TO THE FINANCIAL STATEMENTS 31 December Corporate information The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Board of Bursa Malaysia Securities Berhad. The registered office of the Company is located at Jalan Pelabuhan, North Port, Port Klang, Selangor Darul Ehsan. The principal activities of the Company are investment holding and the provision of management services to its subsidiaries. The principal activities of the subsidiaries are described in Note 16. There have been no significant changes in the nature of these activities during the financial year. The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 21 February Summary of significant accounting policies 2.1 Basis of preparation The financial statements of the Group and of the Company have been prepared in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia. At the beginning of the current financial year, the Group and the Company adopted new and revised FRS which are mandatory for financial periods beginning on or after 1 January 2011 as described fully in Note 2.2. The financial statements of the Group and the Company have been prepared on the historical cost basis, unless otherwise disclosed in significant accounting policies. The financial statements are presented in Ringgit Malaysia (RM) and all values are rounded to the nearest thousand (RM 000) except when otherwise indicated. 2.2 Changes in accounting policies The accounting policies adopted are consistent with those of the previous financial year except as follows: On 1 January 2011, the Group and the Company adopted the following new and amended FRS and IC Interpretations mandatory for annual financial periods beginning on or after 1 January FRS 1 First-time Adoption of Financial Reporting Standards Amendments to FRS 2 Share-based Payment FRS 3 Business Combinations (Revised) Amendments to FRS 5 Non-current Assets Held for Sale and Discontinued Operations Amendments to FRS 127 Consolidated and Separate Financial Statements Amendments to FRS 138 Intangible Assets Amendments to IC Interpretation 9 Reassessment of Embedded Derivatives IC Interpretation 12 Service Concession Arrangements IC Interpretation 16 Hedges of a Net Investment in a Foreign Operation IC Interpretation 17 Distributions of Non-cash Assets to Owners Amendments to FRS 132 Classification of Rights Issues IC Interpretation 18 Transfers of Assets from Customers Amendments to FRS 7 Improving Disclosures about Financial Instruments Amendments to FRS 1 Limited Exemption from Comparative FRS 7 Disclosures for First-time Adopters Amendments to FRS 1 Additional Exemptions for First-time Adopters IC Interpretation 4 Determining Whether an Arrangement contains a Lease Improvements to FRS issued in 2010 NCB HOLDINGS BHD ANNUAL REPORT I

146 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.2 Changes in accounting policies (continued) Adoption of the above standards and interpretations did not have any effect on the financial performance or position of the Group and the Company except as follows: IC Interpretation 12: Service Concession Arrangements This IC Interpretation 12 applies to service concession operators and explains the treatment for the rights received in service concession arrangements. The Interpretation applies to the service concessions held by the Group and the Company, as the government controls and regulates the services provided and the prices charged. The government also controls the residual interest in the infrastructure at the end of the concession arrangements. Under such service concession arrangements, the Interpretation requires the operators to identify the considerations received or receivable to be classified as intangible assets. Previously, the Group and the Company has recognised the construction cost and cost of procurement of assets in relation to the concession arrangements as property, plant and equipment. These property, plant and equipment were depreciated over the useful life or the period of the concessions, whichever is earlier. Previously, the Group and the Company has recognised the lease rental payable for the port area in profit or loss. Subsequent to the adoption of the interpretation, the Group and the Company has to recognise the considerations arising from a service concession arrangement as intangible assets. As such, the construction cost and cost of procurement of assets relating to the concession arrangements have been reclassified as intangible assets upon the adoption of the Interpretation. The lease rental payable for the port area under the concession agreement has been recognised as intangible asset at fair value on the first day of the concession agreement. These intangible assets are amortised in the profit or loss on a straight-line basis over the period of the concession rights. The IC Interpretation 12 was adopted retrospectively by the Group and the Company. The following are effects to the statement of financial position as at 1 January 2011 arising from the changes in the accounting policy: Consolidated statement of financial position As previously As stated Adjustments restated RM 000 RM 000 RM December 2010 Property, plant and equipment 943,365 (175,478) 767,887 Intangible assets 52, , ,743 Provision for concession liability - Current - (38,384) (38,384) - Non-current - (54,435) (54,435) Retained earnings (1,218,863) 73,980 (1,144,883) 144 NCB HOLDINGS BHD ANNUAL REPORT I

147 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.2 Changes in accounting policies (continued) IC Interpretation 12: Service Concession Arrangements (continued) The following are effects to the statement of financial position as at 1 January 2011 arising from the changes in the accounting policy: Consolidated statement of financial position As previously As stated Adjustments restated RM 000 RM 000 RM December 2009 Property, plant and equipment 987,872 (189,094) 798,778 Intangible assets 69, , ,172 Provision for concession liability - Current - (37,512) (37,512) - Non-current - (79,115) (79,115) Retained earnings (1,180,210) 91,509 (1,088,701) Consolidated statement of comprehensive income As previously As stated Adjustments restated RM 000 RM 000 RM December 2010 Depreciation (122,437) 46,616 (75,821) Amortisation (17,534) (52,895) (70,429) Lease rental of port area (37,512) 37,512 - Unwinding of discount from provision for concession liability - (13,704) (13,704) Total comprehensive income for the year 137,488 17, ,017 sen sen sen Basic earnings per share, for profit net of tax Diluted earnings per share, for profit net of tax December 2009 Depreciation (122,129) 46,608 (75,521) Amortisation (17,534) (52,888) (70,422) Lease rental of port area (34,895) 34,895 - Unwinding of discount from provision for concession liability - (15,932) (15,932) Total comprehensive income for the year 141,070 12, ,753 sen sen sen Basic earnings per share, for profit net of tax Diluted earnings per share, for profit net of tax NCB HOLDINGS BHD ANNUAL REPORT I

148 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.3 Standards issued but not yet effective The Group has not adopted the following standards and interpretations that have been issued but not yet effective: Effective for annual periods beginning on or after IC Interpretation 19 Extinguishing Financial Liabilities with 1 July 2011 Equity Instruments Amendments to IC Prepayments of a Minimum Funding 1 July 2011 Interpretation 14 Requirement Amendments to FRS 1 Severe Hyperinflation and Removal of Fixed 1 January 2012 Dates for First-time Adopters Amendments to FRS 7 Transfers of Financial Assets 1 January 2012 Amendments to FRS 112 Deferred tax: Recovery of Underlying Assets 1 January 2012 FRS 124 Related Party Disclosures 1 January 2012 Amendments to FRS 101 Presentation of Items of Other Comprehensive 1 July 2012 Income FRS 9 Financial Instruments 1 January 2013 FRS 10 Consolidated Financial Statements 1 January 2013 FRS 11 Joint Arrangements 1 January 2013 FRS 12 Disclosures of Interests in Other Entities 1 January 2013 FRS 13 Fair Value Measurement 1 January 2013 FRS 119 Employee Benefits 1 January 2013 FRS 127 Separate Financial Statements 1 January 2013 FRS 128 Investment in Associate and Joint Ventures 1 January 2013 IC Interpretation 20 Stripping Costs in the Production Phase of a 1 January 2013 Surface Mine Malaysian Financial Reporting Standards On 19 November 2011, the Malaysian Accounting Standards Board (MASB) issued a new MASB approved accounting framework, the Malaysian Financial Reporting Standards (MFRS Framework). The MFRS Framework is to be applied by all Entities Other Than Private Entities for annual periods beginning on or after 1 January 2012, with the exception of entities that are within the scope of MFRS 141 Agriculture (MFRS 141) and IC Interpretation 15 Agreements for Construction of Real Estate (IC 15), including its parent, significant investor and venturer. The Company will be required to prepare financial statements using the MFRS Framework in its first MFRS financial statements for the year ending 31 December In presenting its first MFRS financial statements, the Company will be required to restate the comparative financial statements to amounts reflecting the application of MFRS Framework. The majority of the adjustments required on transition will be made, retrospectively, against opening retained profits. The Company has not completed its assessment of the financial effects of the differences between Financial Reporting Standards and accounting standards under the MFRS Framework. Accordingly, the consolidated financial performance and financial position as disclosed in these financial statements for the year ended 31 December 2011 could be different if prepared under the MFRS Framework. The Company considers that it is achieving its scheduled milestones and expects to be in a position to fully comply with the requirements of the MFRS Framework for the financial year ending 31 December NCB HOLDINGS BHD ANNUAL REPORT I

149 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.4 Basis of consolidation The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same reporting date as the Company. Consistent accounting policies are applied to like transactions and events in similar circumstances. All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated in full. Acquisitions of subsidiaries are accounted for by applying the purchase method except for the acquisition of subsidiaries which meet the criteria for merger, in which case such acquisition are accounted for using merger accounting principles. Under the purchase method, identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Adjustments to those fair values relating to previously held interests are treated as a revaluation and recognised in other comprehensive income. The cost of a business combination is measured as the aggregate of the fair values, at the date of exchange, of the assets given, liabilities incurred or assumed, and equity instruments issued, plus any costs directly attributable to the business combination. Any excess of the cost of business combination over the Group s share in the net fair value of the acquired subsidiary s identifiable assets, liabilities and contingent liabilities is recorded as goodwill on the statement of financial position. The accounting policy for goodwill is set out in Note 2.7(i). Any excess of the Group s share in the net fair value of the acquired subsidiary s identifiable assets, liabilities and contingent liabilities over the cost of business combination is recognised as income in profit or loss on the date of acquisition. When the Group acquires a business, embedded derivatives separated from the host contract by the acquiree are reassessed on acquisition unless the business combination results in a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required under the contract. Under the merger method of accounting, the difference between the carrying value of the investment and the fair value of shares acquired is treated as merger reserve or deficit. The results of the companies being merged are included as if the merger had been effected throughout the current and previous financial year. Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. 2.5 Subsidiaries Subsidiaries are entities over which the Group has the ability to control the financial operating policies so as to obtain benefits from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group has such power. In the Company s separate financial statements, the Company s investment in subsidiaries are stated at cost less impairment losses. 2.6 Associate An associate is an entity, not being a subsidiary or a joint venture, in which the Company has significant influence. An associate is equity accounted for from the date the Group obtains significant influence until the date the Group ceases to have significant influence over the associate. The Group s investments in associates are accounted for using the equity method. Under the equity method, the investment in associates is measured in the statement of financial position at cost plus postacquisition changes in the Group s share of net assets of the associates. Goodwill relating to associates is included in the carrying amount of the investment. Any excess of the Group s share of the net fair value of the associate s identifiable assets, liabilities and contingent liabilities over the cost of the investment is excluded from the carrying amount of the investment and is instead included as income in the determination of the Group s share of the associate s profit or loss for the period in which the investment is acquired. When the Group s share of losses in an associate equals or exceeds its interest in the associate, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. NCB HOLDINGS BHD ANNUAL REPORT I

150 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.6 Associate (continued) After application of the equity method, the Group determines whether it is necessary to recognise an additional impairment loss on the Group s investment in its associates. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount in profit or loss. The financial statements of the associates are prepared as of the same reporting date as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group. In the Company s separate financial statements, investments in associates are stated at cost less impairment losses. On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is included in profit or loss. 2.7 Intangible assets (i) Goodwill Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill acquired is allocated, from the acquisition date, to each of the Group s cash-generating units that are expected to benefit from the synergies of the combination. The cash-generating unit to which goodwill has been allocated is tested for impairment annually and whenever there is an indication that the cash-generating unit may be impaired, by comparing the carrying amount of the cash-generating unit, including the allocated goodwill, with the recoverable amount of the cash-generating unit. Where the recoverable amount of the cash-generating unit is less than the carrying amount, an impairment loss is recognised in the profit or loss. Impairment losses recognised for goodwill are not reversed in subsequent periods. Where goodwill forms part of a cash-generating unit and part of the operation within that cashgenerating unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative fair values of the operations disposed of and the portion of the cash-generating unit retained. Goodwill and fair value adjustments arising on the acquisition of foreign operation on or after 1 January 2006 are treated as assets and liabilities of the foreign operations and are recorded in the functional currency of the foreign operations and translated in accordance with the accounting policy set out in Note 2.22 (i). Goodwill and fair value adjustments which arose on acquisitions of foreign operation before 1 January 2006 are deemed to be assets and liabilities of the Company and are recorded in RM at the rates prevailing at the date of acquisition. (ii) Prepaid port rights Prepaid port rights represent purchase consideration for the lease of port facilities from Port Klang Authority ( PKA ) and is amortised over the lease period of 21 years commencing in year NCB HOLDINGS BHD ANNUAL REPORT I

151 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.7 Intangible assets (continued) (iii) Deferred asset Deferred asset represents the surplus of the purchase consideration over the fair values of the underlying assets of the Group acquired from PKA. Deferred asset is stated at cost less accumulated amortisation and any accumulated impairment losses. The measurement of impairment losses is in accordance with Note Deferred asset is amortised on a straight-line basis over its estimated useful life of not more than 21 years. The deferred asset has been fully amortised during the previous financial year ended 31 December (iv) Building and port related infrastruture The Company recognises the building and port related infrastructure as an intangible asset. All items of intangible assets are initially recorded as cost. Subsequent costs and expenditures related to infrastructure and equipment arising from the Company s commitments to the lease concession or that increase future revenue are recognised as additions to the intangible assets and are stated at cost. Capital expenditures necessary to support the Company s operation as a whole are recognised as property, plant and equipment, and accounted for in accordance with the policy stated under property, plant and equipment in Note 2.8 to the financial statements. Intangible assets are amortised over the period of the port lease which expires in (v) Port lease rental The lease rental payable for the port area under the concession agreement has been recognised as intangible assets at fair value on the first day of concession agreement. The intangible assets are amortised over the period of port lease which expires in Property, plant and equipment and depreciation All items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Subsequent to recognition, plant and equipment and furniture and fixtures are measured at cost less accumulated depreciation and accumulated impairment losses. When significant parts of property, plant and equipment are required to be replaced in intervals, the Group recognises such parts as individual assets with specific useful lives and depreciation, respectively. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred. Capital work-in-progress relates to assets under construction which are not depreciated as these assets are not available for use. Certain buildings are stated at valuation less impairment losses. These properties of the Group have not been revalued since they were first revalued in The directors have not adopted a policy of regular revaluations of such assets. As permitted under the transitional provisions of MASB Approved Accounting Standard IAS 16: Property, Plant and Equipment, these assets continue to be stated at their 1998 valuation less impairment losses. NCB HOLDINGS BHD ANNUAL REPORT I

152 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.8 Property, plant and equipment and depreciation (continued) Freehold land has an unlimited useful life and therefore is not depreciated. Depreciation of the assets is computed on a straight line basis over the estimated useful lives as follows: Years Freehold buildings 50 Marine craft 15 Plant and machinery 3-20 Motor vehicles 5 Office equipment 5-7 Furniture and fittings 5-7 The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. The residual value, useful life and depreciation method are reviewed at each financial year-end, and adjusted prospectively, if appropriate. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of the asset is included in the profit or loss in the year the asset is derecognised. 2.9 Investment properties Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. The Group treats its investment properties in accordance with MASB Approved Accounting Standard IAS 16: Property, Plant and Equipment which allows the Group to continue to state its investment properties at valuation less accumulated depreciation and impairment, although the properties have not been revalued since they have first revalued in Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property is recognised in profit or loss in the year of retirement or disposal. The investment properties are depreciated over a period of 50 years Impairment of non-financial assets The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when an annual impairment assessment for an asset is required, the Group makes an estimate of the asset s recoverable amount. An asset s recoverable amount is the higher of an asset s fair value less costs to sell and its value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units ( CGU )). 150 NCB HOLDINGS BHD ANNUAL REPORT I

153 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.10 Impairment of non-financial assets (continued) In assessing value in use, the estimated future cash flows expected to be generated by the asset are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where the carrying amount of an asset exceeds its recoverable amount, the asset is written down to its recoverable amount. Impairment losses recognised in respect of a CGU or groups of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to those units or groups of units and then, to reduce the carrying amount of the other assets in the unit or groups of units on a pro-rata basis. Impairment losses are recognised in profit or loss except for assets that are previously revalued where the revaluation was taken to other comprehensive income. In this case, the impairment is also recognised in other comprehensive income up to the amount of any previous revaluation. An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset s recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised previously. Such reversal is recognised in profit or loss unless the asset is measured at revalued amount, in which case the reversal is treated as a revaluation increase. Impairment loss on goodwill is not reversed in a subsequent period Financial assets Financial assets are recognised in the statement of financial position when, and only when, the Group and the Company become a party to the contractual provisions of the financial instrument. When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs. The Group and the Company determine the classification of their financial assets at initial recognition, and the categories include financial assets at fair value through profit or loss, loans and receivables, held-tomaturity investments and available-for-sale financial assets. (i) Financial assets at fair value through profit or loss Financial assets are classified as financial assets at fair value through profit or loss if they are held for trading or are designated as such upon initial recognition. Financial assets held for trading are derivatives (including separated embedded derivatives) or financial assets acquired principally for the purpose of selling in the near term. Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at fair value. Any gains or losses arising from changes in fair value are recognised in profit or loss. Net gains or net losses on financial assets at fair value through profit or loss do not include exchange differences, interest and dividend income. Exchange differences, interest and dividend income on financial assets at fair value through profit or loss are recognised separately in profit or loss as part of other losses or other income. Financial assets at fair value through profit or loss could be presented as current or non-current. Financial assets that is held primarily for trading purposes are presented as current whereas financial assets that is not held primarily for trading purposes are presented as current or non-current based on the settlement date. The Group and the Company did not have any financial assets at fair value through profit and loss during the year ended 31 December NCB HOLDINGS BHD ANNUAL REPORT I

154 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.11 Financial assets (continued) (ii) Loans and receivables Financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, and through the amortisation process. Loans and receivables are classified as current assets, except for those having maturity dates later than 12 months after the reporting date which are classified as non-current. (iii) Held-to-maturity investments Financial assets with fixed or determinable payments and fixed maturity are classified as held-tomaturity when the Group has the positive intention and ability to hold the investment to maturity. Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the held-tomaturity investments are derecognised or impaired, and through the amortisation process. Held-to-maturity investments are classified as non-current assets, except for those having maturity within 12 months after the reporting date which are classified as current. The Group and the Company did not have any held-to-maturity investments during the year ended 31 December (iv) Available-for-sale financial assets Available-for-sale financial assets are financial assets that are designated as available for sale or are not classified in any of the three preceding categories. After initial recognition, available-for-sale financial assets are measured at fair value. Any gains or losses from changes in fair value of the financial asset are recognised in other comprehensive income, except that impairment losses, foreign exchange gains and losses on monetary instruments and interest calculated using the effective interest method are recognised in profit or loss. The cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment when the financial asset is derecognised. Interest income calculated using the effective interest method is recognised in profit or loss. Dividends on an availablefor-sale equity instrument are recognised in profit or loss when the Group s right to receive payment is established. Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less impairment loss. Available-for-sale financial assets are classified as non-current assets unless they are expected to be realised within 12 months after the reporting date. The Group and the Company did not have any available-for-sale financial assets during the year ended 31 December A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is recognised in profit or loss. 152 NCB HOLDINGS BHD ANNUAL REPORT I

155 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.11 Financial assets (continued) Regular way of purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace concerned. All regular way purchases and sales of financial assets are recognised or derecognised on the trade date i.e., the date that the Group commits to purchase or sell the asset Impairment of financial assets The Group and the Company assesses at each reporting date whether there is any objective evidence that a financial asset is impaired. Trade and other receivables and other financial assets carried at amortised cost To determine whether there is objective evidence that an impairment loss on financial assets has been incurred, the Group and the Company considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments. For certain categories of financial assets, such as trade receivables, assets that are assessed not to be impaired individually are subsequently assessed for impairment on a collective basis based on similar risk characteristics. Objective evidence of impairment for a portfolio of receivables could include the Group s and the Company s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period and observable changes in national or local economic conditions that correlate with default on receivables. If any such evidence exists, the amount of impairment loss is measured as the difference between the asset s carrying amount and the present value of estimated future cash flows discounted at the financial asset s original effective interest rate. The impairment loss is recognised in profit or loss. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable becomes uncollectible, it is written off against the allowance account. If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in profit or loss Inventories Inventories comprise of spare parts, consumables and accessories and are stated at lower of cost and net realisable value. Cost is determined using the weighted average method. The cost of inventories comprises of costs of materials and incidentals in bringing the inventories in store. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. NCB HOLDINGS BHD ANNUAL REPORT I

156 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.14 Leases (a) As lessee Finance leases, which transfer to the Group substantially all the risks and rewards incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Any initial direct costs are also added to the amount capitalised. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to profit or loss. Contingent rents, if any, are charged as expenses in the periods in which they are incurred. Leased assets are depreciated over the estimated useful life of the asset. However, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life and the lease term. Operating lease payments are recognised as an expense in profit or loss on a straight-line basis over the lease term. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense over the lease term on a straight-line basis. (b) As lessor Leases where the Group retains substantially all the risks and rewards of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same bases as rental income. The accounting policy for rental income is set out in Note 2.23 (iv) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand, demand deposits, and short-term, highly liquid investments that are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value Financial liabilities Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. Financial liabilities, within the scope of FRS 139, are recognised in the statement of financial position when, and only when, the Group and the Company become a party to the contractual provisions of the financial instrument. Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities. (i) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities held for trading include derivatives entered into by the Group and the Company that do not meet the hedge accounting criteria. Derivative liabilities are initially measured at fair value and subsequently stated at fair value, with any resultant gains or losses recognised in profit or loss. Net gains or losses on derivatives include exchange differences. The Group and the Company did not have any financial liabilities at fair value through profit or loss during the year ended 31 December NCB HOLDINGS BHD ANNUAL REPORT I

157 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.16 Financial liabilities (continued) (ii) Other financial liabilities The Group s and the Company s other financial liabilities include trade payables and other payables. Trade and other payables are recognised initially at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method. Loans and borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. For other financial liabilities, gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process. A financial liability is derecognised when the obligation under the liability is extinguished. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amount is recognised in profit or loss Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be estimated reliably. Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost Share capital An equity instrument is any contract that evidences a residual interest in the assets of the Group and the Company after deducting all of its liabilities. Ordinary shares are equity instruments. Ordinary shares are recorded at the proceeds received, net of directly attributable incremental transaction costs. Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in which they are declared Income taxes (a) Current tax Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that enacted or substantially enacted by the reporting date. Current taxes are recognised in profit or loss, except to the extent that the tax relates to items recognised outside profit or loss, either in other comprehensive income or directly in equity. NCB HOLDINGS BHD ANNUAL REPORT I

158 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.19 Income taxes (continued) (b) Deferred tax 2.20 Contingencies Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognised for all temporary differences, except: - where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and - in respect of taxable temporary differences associated with investments in subsidiaries and associates, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised except: - where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and - in respect of deductible temporary differences associated with investments in subsidiaries and associates, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity and deferred tax arising from a business combination is adjusted against goodwill on acquisition. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future event(s) not wholly within the control of the Group. Contingent liabilities and assets are not recognised in the statements of financial position of the Group. 156 NCB HOLDINGS BHD ANNUAL REPORT I

159 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.21 Employee benefits (i) Short term benefits Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees of the Group and the Company. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensated absences, and short term non-accumulating compensated absences such as sick leave are recognised when the absences occur. (ii) Defined contribution plans Defined contribution plans are post-employment benefit plans under which the Group and the Company pay fixed contributions into separate entities or funds and will have no legal or constructive obligation to pay further contributions if any of the funds do not hold sufficient assets to pay all employee benefits relating to employee services in the current and preceding financial years. Such contributions are recognised as an expense in the profit or loss as incurred. As required by law, the Group and the Company make contributions to the Employees Provident Fund ( EPF ) Foreign currency (i) Functional and presentation currency The individual financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates ( the functional currency ). The consolidated financial statements are presented in Ringgit Malaysia (RM), which is also the Company s functional currency. (ii) Foreign currency transactions Transactions in foreign currencies are measured in the respective functional currencies of the Company and its subsidiaries and are recorded on initial recognition in the functional currencies at exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary items denominated in foreign currencies that are measured at historical cost are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items denominated in foreign currencies measured at fair value are translated using the exchange rates at the date when the fair value was determined. Exchange differences arising on the settlement of monetary items or on translating monetary items at the reporting date are recognised in profit or loss except for exchange differences arising on monetary items that form part of the Group s net investment in foreign operations, which are recognised initially in other comprehensive income and accumulated under foreign currency translation reserve in equity. The foreign currency translation reserve is reclassified from equity to profit or loss of the Group on disposal of the foreign operation. Exchange differences arising on the translation of non-monetary items carried at fair value are included in profit or loss for the period except for the differences arising on the translation of non-monetary items in respect of which gains and losses are recognised directly in equity. Exchange differences arising from such non-monetary items are also recognised directly in equity Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured at the fair value of consideration received or receivable. NCB HOLDINGS BHD ANNUAL REPORT I

160 NOTES TO THE FINANCIAL STATEMENTS 31 December Summary of significant accounting policies (continued) 2.23 Revenue recognition (continued) (i) Revenue from services Revenue from services rendered is recognised net of service taxes and discounts as and when the services are performed. (ii) Interest income Interest income is recognised on an accrual basis using the effective interest method. (iii) Dividend income Dividend income is recognised when the right to receive payment is established. (iv) Rental income Rental income is accounted for on a straight-line basis over the lease terms. The aggregate costs of incentives provided to lessees are recognised as a reduction of rental income over the lease term on a straight-line basis. 3. Significant accounting judgements and estimates The preparation of the Group s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future. 3.1 Key sources of estimation uncertainty The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (i) Depreciation of marine craft and plant and machinery The cost of marine craft and plant and machinery is depreciated on a straight-line basis over the assets useful lives. Management estimates the useful lives of these marine craft and plant and machinery to be within 5 to 20 years. These are common life expectancies applied in the industry. Changes in the expected level of usage could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised. The carrying amount of the Group s marine craft and plant and machinery at the reporting date is disclosed in Note 12. (ii) Associate not equity accounted for in the Group s financial statements As disclosed in Note 17, the financial statements of an associate is not available. The said investment has been fully written down in prior years. In view of this, the effect of not equity accounting for investment in the associate is not material to the Group. (iii) Impairment of goodwill Goodwill is tested for impairment annually and at other times when such indicators exist. This requires an estimation of the value in use of the cash-generating units to which goodwill is allocated. When value in use calculations are undertaken, management must estimate the expected future cash flows from the asset or cash-generating unit and choose a suitable discount rate in order to calculate the present value of those cash flows. Further details of the carrying value, the key assumptions applied in the impairment assessment of goodwill are given in Note NCB HOLDINGS BHD ANNUAL REPORT I

161 NOTES TO THE FINANCIAL STATEMENTS 31 December Revenue Group Company RM 000 RM 000 RM 000 RM 000 Port operations 693, , Logistics operations 234, , Dividend income from subsidiaries ,503 Management fees from subsidiaries - - 5,620 4, , ,893 5, , Other income Group Company RM 000 RM 000 RM 000 RM 000 Interest income 22,694 20,107 9,586 11,014 Gain on disposal of property, plant and equipment 3,918 6, Gain on foreign exchange - realised Rental income 1,747 1, Legal claims received 1, Others 4,248 3, ,833 33,913 9,586 11, Staff costs Group Company RM 000 RM 000 RM 000 RM 000 Wages and salaries 138, ,585 1,913 1,709 Defined contribution plans 21,433 20, Social security contributions 1,704 1, Other benefits 44,699 43,774 1, , ,364 3,893 3,084 Included in staff costs of the Group and of the Company are executive directors remuneration amounting to RM1,595,000 (2010: RM1,393,000) and RM1,247,000 (2010: RM1,134,000) respectively as further disclosed in Note 8. NCB HOLDINGS BHD ANNUAL REPORT I

162 NOTES TO THE FINANCIAL STATEMENTS 31 December Operating expenditure Group Company RM 000 RM 000 RM 000 RM 000 Non-executive directors remuneration (Note 8) 1,877 1,746 1, Depreciation of property, plant and equipment 89,222 75, Amortisation of investment properties Amortisation of prepaid land lease payments Amortisation of intangible assets 77,620 70, Repairs and maintenance 88,533 80, Fuel, electricity and utilities 78,304 70, Hire of plant and equipment 34,833 41, Outsource service provider 94,532 90, Auditors remuneration: Statutory audit - Auditors of the Company Other auditors Other services - Auditors of the Company Rental of premises 1, Allowance for impairment losses 7, Reversal of allowance for impairment losses on receivables (192) (1,702) - - Unwinding of discount from provision for concession liability 10,906 13, Other operating expenses 80,052 78, , ,902 2,096 1, Directors remuneration The details of remuneration receivable by directors of the Group and the Company during the year are as follows: Group Company RM 000 RM 000 RM 000 RM 000 Executive: Director of the Company Salaries and other emoluments Bonus Defined contribution plan ,270 1,155 1,247 1, NCB HOLDINGS BHD ANNUAL REPORT I

163 NOTES TO THE FINANCIAL STATEMENTS 31 December Directors remuneration (continued) Group Company RM 000 RM 000 RM 000 RM 000 Not director of the Company Salaries and other emoluments Defined contribution plan Total executive directors remuneration (Note 6) and (Note 33(b)) 1,595 1,393 1,247 1,134 Estimated money value of benefits-in-kind ,648 1,445 1,298 1,183 Non-executive: Director of the Company Fees 1,140 1, Other emoluments ,331 1,291 1, Not director of the Company Fees Other emoluments Total non-executive directors remuneration (Note 7) and (Note 33(b)) 1,877 1,746 1, Estimated money value benefits-in-kind ,928 1,751 1,055 1,002 The number of directors of the Company whose total remuneration during the year fell within the following bands is analysed below: Number of directors Executive director: RM1,100,001 - RM1,150,000-1 RM1,200,001 - RM1,250, Non-executive directors: RM nil - RM50,000-2 RM50,001 - RM100, RM100,001 - RM150, NCB HOLDINGS BHD ANNUAL REPORT I

164 NOTES TO THE FINANCIAL STATEMENTS 31 December Income tax expense Group Company RM 000 RM 000 RM 000 RM 000 Current income tax: Current year s provision 42,434 47,141 2,417 34,606 (Over)/under provision in prior years (1,537) (1,540) 21 (15) 40,897 45,601 2,438 34,591 Deferred taxation (Note 28) Relating to origination and reversal of temporary differences (5,120) 2,276 (2) (2) (Over)/under provision in prior years (4,613) (2,745) 4 (95) (9,733) (469) 2 (97) Total income tax expense 31,164 45,132 2,440 34,494 Domestic income tax is calculated at the Malaysian statutory rate of 25% (2010: 25%) of the estimated assessable profit for the year. A reconciliation of income tax expense applicable to profit before tax at the statutory income tax rate to income tax expense at the effective income tax rate of the Group and Company is as follows: RM 000 RM 000 Group Profit before tax 190, ,149 Taxation at Malaysian statutory tax rate of 25% 47,538 50,037 Expenses not deductible for tax purposes 2,702 5,029 Income not subject to tax (5,299) (4,382) Deferred tax assets recognised on unutilised investment allowance arising from current year (7,812) (1,382) Deferred tax assets not recognised on unused tax losses Over provision of deferred tax in prior years (4,613) (2,745) Over provision of tax expense in prior years (1,537) (1,540) Income tax expense for the year 31,164 45, NCB HOLDINGS BHD ANNUAL REPORT I

165 NOTES TO THE FINANCIAL STATEMENTS 31 December Income tax expense (continued) RM 000 RM 000 Company Profit before tax 9, ,618 Taxation at Malaysian statutory rate of 25% 2,304 34,655 Expenses not deductible for tax purposes 111 (51) Under/(over) provision of deferred tax in prior years 4 (95) Under/(over) provision of tax expense in prior years 21 (15) Income tax expense for the year 2,440 34, Earnings per share (a) Basic The basic earnings per share is calculated by dividing the profit for the year attributable to the equity holders of the Company by the weighted average number of ordinary shares in issue during the financial year, as follows: Profit attributable to ordinary equity holders of the Company (RM 000) 158, ,935 Weighted average number of ordinary shares in issue ( 000) 470, ,253 Basic earnings per share (sen) (b) Diluted There is no dilution in earnings per share. NCB HOLDINGS BHD ANNUAL REPORT I

166 NOTES TO THE FINANCIAL STATEMENTS 31 December Dividends Dividends in respect of year Dividends recognised in year RM 000 RM 000 RM 000 RM 000 RM 000 Interim dividend for 2009: 7% less 25% taxation, on 470,252,708 shares (5.25 sen per ordinary share) , Final dividend for 2009: 10% less 25% taxation, on 470,252,708 shares (7.50 sen per ordinary share) ,269-35,269 Special dividend for 2009: 11% less 25% taxation, on 470,252,708 shares (8.25 sen per ordinary share) ,796-38,796 Interim dividend for 2010: 7.0% less 25% taxation, on 470,252,708 shares (5.25 sen per ordinary share) - 24, ,688 Special dividend for 2010: 20% less 25% taxation, on 470,252,708 shares (15.00 sen per ordinary share) - 70,538-70,538 - Final dividend for 2010: 10% less 25% taxation, on 470,252,708 shares (7.50 sen per ordinary share) - 35,269-35,269 - Special interim dividend for 2011: 59% less 25% taxation, on 470,252,708 shares (44.25 sen per ordinary share) 208, ,087 - Interim dividend for 2011: 7% single tier dividend on 470,252,708 shares (7.00 sen per ordinary share) 32, , , ,495 98, ,811 98,753 At the forthcoming Annual General Meeting, the following dividend will be proposed for shareholders approval in respect of the financial year ended 31 December 2011: RM 000 Final dividend of 10% single tier dividend, on 470,252,708 ordinary shares 47,025 The financial statements for the current financial year do not reflect these proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in shareholders equity as an appropriation of retained earnings in the next financial year ending 31 December NCB HOLDINGS BHD ANNUAL REPORT I

167 NOTES TO THE FINANCIAL STATEMENTS 31 December Property, plant and equipment Group Office equipment, motor Marine vehicles craft, and Capital Land and plant and furniture work-in buildings* machinery and fittings progress Total RM 000 RM 000 RM 000 RM 000 RM 000 At 31 December 2011 Cost/valuation At 1 January As previously stated 953,163 1,210, ,323 66,139 2,341,992 Effect of adopting the IC Interpretation 12 (581,322) - - (39,468) (620,790) As restated 371,841 1,210, ,323 26,671 1,721,202 Additions 3,601 25,954 7,625 68, ,262 Disposals - (76,250) (3,132) - (79,382) Reclassification - 52, (52,291) - At 31 December 375,442 1,212, ,041 42,462 1,747,082 Representing: At cost 285,864 1,212, ,041 42,462 1,657,504 At valuation 89, , ,442 1,212, ,041 42,462 1,747,082 Accumulated depreciation At 1 January As previously stated 544, , ,979-1,398,627 Effect of adopting the IC Interpretation 12 (445,312) (445,312) As restated 99, , , ,315 Charge for the year 11,918 70,204 7,100-89,222 Disposals - (75,214) (2,889) - (78,103) At 31 December 111, , , ,434 Net carrying amount At cost 193, ,042 8,851 42, ,085 At valuation 70, , , ,042 8,851 42, ,648 NCB HOLDINGS BHD ANNUAL REPORT I

168 NOTES TO THE FINANCIAL STATEMENTS 31 December Property, plant and equipment (continued) Group Office equipment, motor Marine vehicles craft, and Capital Land and plant and furniture work-in buildings* machinery and fittings progress Total RM 000 RM 000 RM 000 RM 000 RM 000 At 31 December 2010 Cost/valuation At 1 January As previously stated 952,599 1,277, ,669 7,093 2,357,413 Effect of adopting the - IC Interpretation 12 (581,298) - - (6,492) (587,790) As restated 371,301 1,277, , ,769,623 Additions 540 9,339 3,900 31,430 45,209 Disposals - (80,974) (440) - (81,414) Reclassification - 5,360 - (5,360) - Write-off - (410) (11,806) - (12,216) At 31 December 371,841 1,210, ,323 26,671 1,721,202 Representing: At cost 282,263 1,210, ,323 26,671 1,631,624 At valuation 89, , ,841 1,210, ,323 26,671 1,721,202 Accumulated depreciation At 1 January As previously stated 489, , ,814-1,369,541 Effect of adopting the IC Interpretation 12 (398,696) (398,696) As restated 90, , , ,845 Charge for the year 8,567 62,989 4,265-75,821 Disposals - (80,841) (412) - (81,253) Write-off - (410) (11,688) - (12,098) At 31 December 99, , , ,315 Net carrying amount At cost 202, ,262 8,344 26, ,324 At valuation 70, , , ,262 8,344 26, , NCB HOLDINGS BHD ANNUAL REPORT I

169 NOTES TO THE FINANCIAL STATEMENTS 31 December Property, plant and equipment (continued) * Land and buildings of the Group: Long term Buildings leasehold Freehold Buildings in port area land land Total RM 000 RM 000 RM 000 RM 000 RM 000 At 31 December 2011 Cost/valuation At 1 January As previously stated 288, , ,364 18, ,163 Effect of adopting the IC Interpretation 12 (107,972) (473,350) - - (581,322) As restated 180, ,364 18, ,841 Additions 3, ,601 At 31 December 183, ,364 18, ,442 Representing: At cost 94, ,364 18, ,864 At valuation 89, ,578 At 31 December 183, ,364 18, ,442 Accumulated depreciation At 1 January As previously stated 155, ,215 32, ,543 Effect of adopting the IC Interpretation 12 (88,097) (357,215) - - (445,312) As restated 67,015-32,216-99,231 Charge for the year 9,391-2,527-11,918 At 31 December 76,406-34, ,149 Net carrying amount At cost 37, ,621 18, ,730 At valuation 70, , , ,621 18, ,293 NCB HOLDINGS BHD ANNUAL REPORT I

170 NOTES TO THE FINANCIAL STATEMENTS 31 December Property, plant and equipment (continued) * Land and buildings of the Group (continued): Long term Buildings leasehold Freehold Buildings in port area land land Total RM 000 RM 000 RM 000 RM 000 RM 000 At 31 December 2010 Cost/valuation At 1 January As previously stated 287, , ,364 18, ,599 Effect of adopting the IC Interpretation 12 (107,948) (473,350) - - (581,298) As restated 179, ,364 18, ,301 Additions At 31 December 180, ,364 18, ,841 Representing: At cost 90, ,364 18, ,263 At valuation 89, ,578 At 31 December 180, ,364 18, ,841 Accumulated depreciation At 1 January As previously stated 142, ,300 29, ,360 Effect of adopting the IC Interpretation 12 (81,396) (317,300) - - (398,696) As restated 61,067-29,597-90,664 Charge for the year 5,948-2,619-8,567 At 31 December 67,015-32,216-99,231 Net carrying amount At cost 42, ,148 18, ,047 At valuation 70, , , ,148 18, , NCB HOLDINGS BHD ANNUAL REPORT I

171 NOTES TO THE FINANCIAL STATEMENTS 31 December Property, plant and equipment (continued) Company Office equipment, motor vehicles and furniture Building and fittings Total RM 000 RM 000 RM 000 At 31 December 2011 Cost At 1 January 433 1,499 1,932 Additions Disposals - (2) (2) At 31 December 433 1,515 1,948 Accumulated depreciation At 1 January ,136 Charge for the year Disposal - (2) (2) At 31 December ,249 Net carrying amount At 31 December 2010 Cost At 1 January 433 1,460 1,893 Additions At 31 December 433 1,499 1,932 Accumulated depreciation At 1 January Charge for the year At 31 December ,136 Net carrying amount (a) On 30 November 1998, certain land and buildings of a subsidiary were revalued based on the Open Market Value in its existing use using the Comparison Method and Depreciated Replacement Cost Method by an independent professional valuer. The revaluation surplus arising from the valuation is taken up in the revaluation reserve account except where previous deficits have been charged to the income statement. In such cases, the surplus, to the extent of the deficit previously recognised as an expense, is credited to the income statement. The net book value of the revalued land and buildings at historical cost is not disclosed due to the absence of historical records. (b) Included in land and building is warehouse building of a subsidiary constructed on a parcel of land leased from a company related to a third party for a period of 30 years commencing from 1 July 1992 which is noncancellable. The net carrying value of the warehouse building is RM2,825,520 (2010: RM3,094,305). NCB HOLDINGS BHD ANNUAL REPORT I

172 NOTES TO THE FINANCIAL STATEMENTS 31 December Prepaid land lease payments Group RM 000 RM 000 Cost At 1 January / 31 December 11,940 11,940 Accumulated amortisation At 1 January 5,648 5,347 Charge for the year At 31 December 5,948 5,648 Net carrying amount At 31 December 5,992 6,292 The leasehold land is leased from Port Klang Authority ( PKA ) and the leasehold land together with all the buildings and structures on the leasehold land will be reverted to PKA upon the expiry of the lease period. The expiry of the lease period of the leasehold land has been extended to 30 years with effect from 14 November 2001 (Note 31 (b)). 14. Investment properties At valuation Group RM 000 RM 000 At 1 January / 31 December 3,000 3,000 Accumulated depreciation At 1 January Charge for the year At 31 December Net carrying amount At 31 December 2,166 2,230 Investment properties comprise commercial properties leased to third parties. The fair value of the investment properties as at 31 December 2011 is RM3,000,000. This fair value has been determined by an independent professional valuer in January 2011 based on open market value in its existing use. 170 NCB HOLDINGS BHD ANNUAL REPORT I

173 NOTES TO THE FINANCIAL STATEMENTS 31 December Intangible assets Group At 31 December 2011 Buildings and port Capital Prepaid Deferred Port lease related work-in Goodwill port rights asset rental infrastructure -progress Total RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 Cost At 1 January As previously stated 1, ,219 98, ,482 Effect of adopting the IC Interpretation , ,322 39, ,620 As restated 1, ,219 98, , ,322 39,468 1,265,102 Additions ,963 41,788 43,751 Reclassification ,113 (23,113) - At 31 December 1, ,219 98, , ,398 58,143 1,308,853 Accumulated amortisation At 1 January As previously stated - 317,079 98, ,056 Effect of adopting the IC Interpretation , , ,303 As restated - 317,079 98, , ,312-1,018,359 Amortisation for the year - 17,534-6,280 53,806-77,620 At 31 December - 334,613 98, , ,118-1,095,979 Net carrying amount as at 31 December 1,286 33,606-12, ,280 58, ,874 At 31 December 2010 Cost At 1 January As previously stated 1, ,219 98, ,482 Effect of adopting the IC Interpretation , ,298 6, ,620 As restated 1, ,219 98, , ,298 6,492 1,232,102 Additions ,976 33,000 At 31 December 1, ,219 98, , ,322 39,468 1,265,102 Accumulated amortisation At 1 January As previously stated - 299,545 98, ,522 Effect of adopting the IC Interpretation , , ,408 As restated - 299,545 98, , , ,930 Amortisation for the year - 17,534-6,279 46,616-70,429 At 31 December - 317,079 98, , ,312-1,018,359 Net carrying amount as at 31 December 1,286 51,140-18, ,010 39, ,743 NCB HOLDINGS BHD ANNUAL REPORT I

174 NOTES TO THE FINANCIAL STATEMENTS 31 December Intangible assets (continued) The prepaid port rights represent purchase consideration for the lease of port facilities from Port Klang Authority. Deferred asset represents the surplus of the purchase consideration over the fair values of the underlying assets of the Company acquired from Port Klang Authority. Allocation of goodwill Goodwill has been allocated to the Group s CGUs identified to the haulage, freight forwarding and ancillary services business segment. Key assumptions used in value-in-use calculations The recoverable amount of a CGU is determined based on value-in-use calculations using cash flow projections based on financial budgets approved by management covering a three year period. Cash flows beyond the threeyear period are extrapolated using the industry s growth rates. The following describes each key assumption on which management has based its cash flow projections to undertake impairment testing of goodwill: (i) Budgeted gross margin The basis used to determine the value assigned to the budgeted gross margins is the average gross margins achieved in the period immediately before the budgeted year increased for expected efficiency improvements. (ii) Growth rate The weighted average growth rates used are consistent with the long-term average growth rate for the industry. (iii) Discount rate The discount rates used are pre-tax and reflect specific risks relating to the relevant segments. The Group believes that any reasonably possible changes in the above key assumptions applied are not likely to materially cause recoverable amount to be lower than its carrying amount. 16. Investments in subsidiaries Company RM 000 RM 000 Unquoted shares, at cost 470, ,051 Details of the subsidiaries are as follows: Effective interest Incorporated in Malaysia % % Principal activities Northport (Malaysia) Bhd Port operations Klang Port Management Sdn. Bhd Port operations 172 NCB HOLDINGS BHD ANNUAL REPORT I

175 NOTES TO THE FINANCIAL STATEMENTS 31 December Investments in subsidiaries (continued) Effective interest Incorporated in Malaysia % % Principal activities Northport Distripark Sdn. Bhd.* Management of a distribution centre Kontena Nasional Berhad Logistics Kontena Nasional Global Logistics Sdn. Bhd Freight forwarding services Konnas Maritime Services Sdn. Bhd Shipping agency (dormant) Konnas Prolink Sdn. Bhd Transportation and distribution services Konnas Agencies Travel Services Sdn. Bhd Travel, conference and tourism services (dormant) KN Global Transport Sdn. Bhd.* and Warehousing (Formerly known as KN Sime Logistics Sdn. Bhd.) 1 share distribution and freight forwarding services Incorporated in United Kingdom Konnas Freight International (UK) Limited* International freight forwarding services (dormant) * Audited by firms other than Ernst & Young. Acquisition of non-controlling interests On 24 October 2011, Kontena Nasional Berhad ( KNB ), a subsidiary of the Company, acquired an additional 2,999,999 shares in KN Global Transport Sdn. Bhd. ( KNGT ) from Sime Darby Allied Products Bhd for a cash consideration of RM250,000. As a result of this acquisition, KNGT became a wholly-owned subsidiary of KNB. On the date of acquisition, the carrying value of the additional interest acquired was approximately RM2,991,000. The difference between the consideration and the carrying value of the interest acquired of approximately RM2,741,000 is reflected in retained earnings on acquisition of non-controlling interests. NCB HOLDINGS BHD ANNUAL REPORT I

176 NOTES TO THE FINANCIAL STATEMENTS 31 December Investments in associates Group RM 000 RM 000 Unquoted shares, at cost - in Malaysia outside Malaysia 5,019 17,443 5,219 17,643 Less: Accumulated impairment losses (2,719) (15,143) 2,500 2,500 Share of post acquisition reserves 4,855 4,385 7,355 6,885 The associates, all of which with 31 December financial year end, are as follows: Effective interest % % Principal activities Incorporated in Malaysia Tibbett & Britten Kontena Nasional Sdn. Berhad Dormant Incorporated in Indonesia P.T. Ritra Konnas Freight Centre** Container depot operations Incorporated in Cambodia MSE KPM Co. Ltd.*** - 40 Inland port activity ** accounted for based on management accounts *** the financial statements of the associate is not available and investment has been fully written down in prior years. In view of this, the effect of not equity accounting for investment in the associate was not material to the Group. 174 NCB HOLDINGS BHD ANNUAL REPORT I

177 NOTES TO THE FINANCIAL STATEMENTS 31 December Investments in associates (continued) The summarised financial information of the associates are as follows: RM 000 RM 000 Assets and liabilities Current assets 6,633 5,573 Non-current assets 12,699 13,242 Total assets 19,332 18,815 Current liabilities (1,257) (2,022) Non-current liabilities (8,558) (8,484) Total liabilities (9,815) (10,506) Results Revenue 4,185 4,774 Profit for the year 1,411 1, Other investments Group Company RM 000 RM 000 RM 000 RM 000 Golf club membership, at cost 1,534 1, Long term receivables These relate to staff loans which comprise: Group RM 000 RM 000 Motor vehicle loans 1,510 1,004 Amount due within twelve months (included in other receivables in Note 21) (984) (476) Amount due after twelve months Motor vehicle loans are unsecured and repayable over a maximum period of 5 years (2010: 5 years). The motor vehicle loans bear an interest rate of 4% (2010: 4%) per annum. The staff loans are recognised initially at fair value. Staff loans receivable within twelve months amounting to RM984,000 (2010: RM476,000) is included in other receivables. 20. Inventories Group RM 000 RM 000 Consumables spares and supplies, at cost 9,094 7,384 NCB HOLDINGS BHD ANNUAL REPORT I

178 NOTES TO THE FINANCIAL STATEMENTS 31 December Trade and other receivables Group Company RM 000 RM 000 RM 000 RM 000 Trade receivables Third parties 209, , Less: Allowance for impairment losses (17,365) (11,111) - - Trade receivables, net 192, , Other receivables Due from subsidiaries - - 7,937 14,519 Due from associates 5,946 6, Less: Allowance for impairment losses (3,514) (3,514) - - 2,432 2,499 7,937 14,519 Deposits 4,406 2, Prepayments 19,448 10, Interest receivables 1,768 2, ,769 Sundry receivables 14,863 9, Less: Allowance for impairment losses (266) (458) ,651 27,067 9,134 16, , ,755 9,134 16,618 (a) Trade receivables Trade receivables are non-interest bearing and are generally on 30 days (2010: 30 days) terms. They are recognised at their original invoice amounts less discounts which represent their fair values on initial recognition. Ageing analysis of trade receivables 2011 RM 000 Neither past due nor impaired 93,396 1 to 30 days past due not impaired 32, to 60 days past due not impaired 12, to 90 days past due not impaired 15,489 More than 90 days past due but not impaired 4, ,371 Impaired 51, ,978 Trade receivables that are neither past due nor impaired Trade receivables that were neither past due nor impaired relate to customers for whom there were no default. None of the Group s trade receivables that are neither past due nor impaired have been renegotiated during the financial year. 176 NCB HOLDINGS BHD ANNUAL REPORT I

179 NOTES TO THE FINANCIAL STATEMENTS 31 December Trade and other receivables (continued) (a) Trade receivables (continued) Trade receivables that are past due but not impaired As at 31 December 2011, the Group has trade receivables amounting to approximately RM64,975,000 that are past due at the reporting date but not impaired. These trade receivables are mainly secured by bank guarantee and corporate guarantee. Trade receivables that were past due but not impaired relate to customers that have a good track record with the Group. Based on past experience and no adverse information to date, the directors of the Group are of the opinion that no provision for impairment is necessary in respect of these balances as there has not been a significant change in the credit quality and the balances are still considered fully recoverable. Trade receivables that are impaired The Group s trade receivables that are impaired as at 31 December 2011 and the movement of the allowance accounts used to record the impairment are as follows: Collectively Individually impaired impaired Total RM 000 RM 000 RM 000 Trade receivables - nominal amounts 36,159 15,448 51,607 Less: Allowance for impairment losses (5,925) (11,440) (17,365) 30,234 4,008 34,242 Movement in allowance for impairment losses: RM 000 RM 000 At 1 January 11,111 12,804 Additions of impairment losses 7,413 9 Written off (1,159) - Reversal of impairment losses - (1,702) At 31 December 17,365 11,111 (b) Other receivables Sundry receivables are non-interest bearing. They are recognised at the amounts which represent their fair values on initial recognition. At 31 December 2011, the Group has provided an allowance of RM266,000 (2010: RM458,000) for impairment of its sundry receivables that are not considered recoverable. (c) Related party balances Amount due from subsidiaries and associates are unsecured, interest free and are repayable on demand. NCB HOLDINGS BHD ANNUAL REPORT I

180 NOTES TO THE FINANCIAL STATEMENTS 31 December Cash and bank balances Group Company RM 000 RM 000 RM 000 RM 000 Cash in hand and at banks 14,607 54, Deposits with licensed banks 639, , , , , , , ,551 The weighted average effective interest rates of deposits at the reporting date were as follows: Group Company % % % % Licensed banks The average maturities of deposits of the Group and the Company as at the end of the financial year were 112 days (2010: 97 days) and 82 days (2010: 87 days). 23. Provisions Group RM 000 RM 000 At 1 January 6,986 6,986 Unused amount reversed (1,523) - Settlement (1,235) - At 31 December 4,228 6,986 Provisions represent expected costs to be incurred in relation to claims against the Group. 24. Trade and other payables Group Company RM 000 RM 000 RM 000 RM 000 Trade payables Third parties 55,940 60, Other payables Due to subsidiaries Accruals 115,928 96,928 1,975 1,511 Sundry payables 20,065 32, , ,695 2,097 1, , ,831 2,097 1, NCB HOLDINGS BHD ANNUAL REPORT I

181 NOTES TO THE FINANCIAL STATEMENTS 31 December Trade and other payables (continued) (a) Trade payables These amounts are non-interest bearing. Trade payables are normally settled on 30 days (2010: 30 days) terms. (b) Other payables Other payables are non-interest bearing. Other payables are normally settled on an average term of 30 days (2010: 30 days). (c) Related party balances The amount due to subsidiaries is unsecured, interest free and are repayable on demand. 25. Share capital Number of ordinary shares of RM1 each Amount RM 000 RM 000 Authorised: At 1 January / 31 December 1,000,000 1,000,000 1,000,000 1,000,000 Issued and fully paid: At 1 January / 31 December 470, , , , Other reserves (non-distributable) Revaluation Translation Capital Merger reserve reserve reserve reserve Total RM 000 RM 000 RM 000 RM 000 RM 000 At 1 January 2011 / 31 December , ,259 66, ,415 At 1 January 2010 / 31 December , ,259 66, ,415 Revaluation reserve Revaluation reserve represents increases in the fair value of certain buildings as a result of valuation performed in 1998 (Note 12 (a)). Capital reserve and merger reserve Capital reserve and merger reserve arose from the business combination exercise in year 2000 which were accounted for under the merger method of accounting. NCB HOLDINGS BHD ANNUAL REPORT I

182 NOTES TO THE FINANCIAL STATEMENTS 31 December Retained earnings Prior to the year of assessment 2008, Malaysian companies adopted the full imputation system. In accordance with the Finance Act 2007 which was gazetted on 28 December 2007, companies shall not be entitled to deduct tax on dividend paid, credited or distributed to its shareholders, and such dividends will be exempted from tax in the hands of the shareholders ( single tier system ). However, there is a transitional period of six years, expiring on 31 December 2013, to allow companies to pay franked dividends to their shareholders under limited circumstances. Companies also have an irrevocable option to disregard the Section 108 balance and opt to pay dividends under the single tier system. The change in the tax legislation also provides for the Section 108 balance to be locked-in as at 31 December 2007 in accordance with Section 39 of the Finance Act The Company has elected for the irrevocable option to disregard the 108 balance as at 31 December Hence, the Company will be able distribute dividends out of its entire retained earnings as at 31 December 2011 under the single tier system. The Company did not elect for the irrevocable option to disregard the 108 balance as at 31 December Accordingly, the Company may utilise the credit in the 108 balance as at 31 December 2010 to distribute cash dividend payments to ordinary shareholdings as defined under the Finance Act As at 31 December 2010, the Company has sufficient credit in the 108 balance to pay franked dividends amounting to approximately RM314,000,000 out of its retained earnings. If the balance of the retained earnings of approximately RM830,883,000 were to be distributed as dividends, the Company may distribute such dividends under the single tier system. 28. Deferred taxation Group Company RM 000 RM 000 RM 000 RM 000 At 1 January 32,811 33, Recognised in profit or loss (Note 9) (9,733) (469) 2 (97) At 31 December 23,078 32, Presented after appropriate offsetting: Deferred tax assets (13,412) (13,729) - - Deferred tax liabilities 36,490 46, ,078 32, The component and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as follows: Deferred tax liabilities of the Group Property, Revaluation plant and of land equipment Total RM 000 RM 000 RM 000 At 1 January ,394 24,146 46,540 Recognised in profit or loss (7,987) (2,063) (10,050) At 31 December ,407 22,083 36,490 At 1 January ,473 23,187 46,660 Recognised in profit or loss (1,079) 959 (120) At 31 December ,394 24,146 46, NCB HOLDINGS BHD ANNUAL REPORT I

183 NOTES TO THE FINANCIAL STATEMENTS 31 December Deferred taxation (continued) Deferred tax assets of the Group Tax losses and Provisions unabsorbed for capital liabilities Buildings allowances Others Total RM 000 RM 000 RM 000 RM 000 RM 000 At 1 January 2011 (3,962) (9,161) (227) (379) (13,729) Recognised in profit or loss 867 (606) 183 (127) 317 At 31 December 2011 (3,095) (9,767) (44) (506) (13,412) At 1 January 2010 (4,213) (8,497) (255) (415) (13,380) Recognised in profit or loss 251 (664) (349) At 31 December 2010 (3,962) (9,161) (227) (379) (13,729) Deferred tax liabilities/(assets) of the Company Property, plant and equipment RM 000 At 1 January Recognised in profit or loss 2 At 31 December At 1 January Recognised in profit or loss (97) At 31 December Deferred tax assets have not been recognised for the following items: Group RM 000 RM 000 Unused tax losses 3,870 3,685 Unabsorbed capital allowances Other temporary difference ,883 4,698 The unused tax losses and unabsorbed capital allowances of the Group are available indefinitely for offsetting against future taxable profits of the respective entities within the Group, subject to no substantial change in shareholdings of those entities under the Income Tax Act, 1967 and guidelines issued by the tax authority. NCB HOLDINGS BHD ANNUAL REPORT I

184 NOTES TO THE FINANCIAL STATEMENTS 31 December Borrowings Group RM 000 RM 000 Short term borrowings Secured: Hire purchase liabilities 1,289 - Long term borrowings Secured: Hire purchase liabilities 5,774 - Minimum lease payments: Not later than one year 1,569 - Later than one year and not later than two years 1,569 - Later than two years and not later than five years 4,708-7,846 - Less: Future finance charges (783) - 7,063 - Present value of finance Lease liabilities: Not later than one year 1,289 - Later than one year and not later than two years 1,351 - Later than two years and not later than five years 4,423-7,063 - Analysed as: Due within twelve months 1,289 - Due after twelve months 5,774-7,063 - The hire purchase liabilities bear interest of 2.5% per annum. 30. Provision for concession liability Group RM 000 RM 000 At 1 January 92, ,627 Unwinding of discount 10,906 13,704 Payment of lease rental of port area (38,384) (37,512) At 31 December 65,341 92, NCB HOLDINGS BHD ANNUAL REPORT I

185 NOTES TO THE FINANCIAL STATEMENTS 31 December Provision for concession liability (continued) Group RM 000 RM 000 Minimum lease payments: Not later than one year 38,384 38,384 Later than one year and not later than two years 38,704 38,384 Later than two years and not later than five years - 38,704 77, ,472 Less: Future finance charges (11,747) (22,653) 65,341 92,819 Analysed as: Due within twelve months 38,384 38,384 Due after twelve months 26,957 54,435 65,341 92,819 The provision for concession liability related to lease rental payable for the port area leased from Port Klang Authority for a period of 28 years from 17 March Commitments Group RM 000 RM 000 (a) Capital expenditure Approved and contracted for 71, ,371 Approved but not contracted for 933, ,970 1,004, ,341 (b) Lease of undeveloped land, non-cancellable Lease commitments on undeveloped land 16,392 17,217 The lease commitments relate to lease rental payable for the undeveloped portion of the land leased from Port Klang Authority ( PKA ). A subsidiary leases acres of land under operating lease for a period of 30 years from 14 November 2001 at a lease rental of RM825,000 per annum. Total minimum lease payments under the non-cancellable operating lease are as follows: Group RM 000 RM 000 Less than one year Between one to five years 3,300 3,300 More than five years 12,267 13,092 16,392 17,217 NCB HOLDINGS BHD ANNUAL REPORT I

186 NOTES TO THE FINANCIAL STATEMENTS 31 December Commitments (continued) (c) Non-cancellable operating lease commitments Group RM 000 RM 000 Lease commitments on land 7,479 8,427 The lease commitments relate to non-cancellable operating lease of land on which a building was erected for a period of 30 years commencing from 1 July Total minimum lease payments under the non-cancellable operating lease are as follows: Group RM 000 RM 000 Less than one year Between one to five years 3,549 3,566 More than five years 3,200 3,912 7,479 8,427 (d) Operating lease commitments - as lessee During the financial year, the Group has entered into commercial leases on certain vehicles and equipment. The leases have an average tenure of between three to five years with the option to renew the contract at the end of the lease term. Future minimum rentals payable under operating leases at the reporting date are as follows: Group RM 000 RM 000 Not later than one year 13,744 3,300 Later than one year but not later than five years 41,006 13,202 54,750 16, Contingent liabilities Group RM 000 RM 000 Unsecured: Guarantee to third parties in respect of performance bond of a subsidiary 8,289 7,696 Claims for damages to goods and other claims against subsidiaries - 1,100 8,289 8, NCB HOLDINGS BHD ANNUAL REPORT I

187 NOTES TO THE FINANCIAL STATEMENTS 31 December Related party disclosures (a) In addition to the transactions detailed elsewhere in the financial statements, the following significant transactions between the Group and related parties took place at terms agreed between parties during the financial year: Group RM 000 RM 000 Provision of container haulage, warehouse, depot and freight forwarding services to related companies of Permodalan Nasional Berhad (20,847) (41,465) Repairs and purchases of spare parts and supplies from related companies of Permodalan Nasional Berhad 1, Revenue received/receivable from related companies of MISC Berhad (57,136) (51,237) Purchases of fuel from Petronas Dagangan Bhd, a related company of a shareholder, MISC Berhad 74,404 58,289 (b) Compensation of key management personnel Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director of that entity. The remuneration of directors and other members of key management during the year was as follows: Group Company RM 000 RM 000 RM 000 RM 000 Remuneration and benefits 7,041 6,447 2,565 2,385 Post-employment benefits: Defined contribution plan ,812 7,174 2,780 2,579 Included in the total key management personnel are: Group Company RM 000 RM 000 RM 000 RM 000 Directors remuneration (Note 8) 3,472 3,139 2,271 2,132 NCB HOLDINGS BHD ANNUAL REPORT I

188 NOTES TO THE FINANCIAL STATEMENTS 31 December Financial instruments Financial risk management objectives and policies The Group is exposed to financial risks arising from its operations and the use of financial instruments. The key financial risks include credit risk, liquidity risk, interest rate risk and foreign currency risk. The following sections provide details regarding the Group s exposures to the abovementioned financial risks and the objectives, policies and processes for the management of these risks. (i) Credit risk Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations. The Group s exposure to credit risk arises primarily from trade and other receivables. For cash and bank balances, the Group minimises credit risk by dealing exclusively with high credit rating financial institutions. The Group s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure. The Group trades only with recognised and creditworthy third parties. It is the Group s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivables balances are monitored on an ongoing basis with the result that the Group s exposure to bad debts is not significant. Exposure to credit risk At the reporting date, the Group s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position. Credit risk concentration profile At 31 December 2011, the Group had approximately 195 customers that owed the Group more than RM100,000 each and accounted for approximately 79% of all receivables owing. There were 30 customers with balances greater than RM1 million accounting for just over 56% of total amounts receivable. Financial assets that are neither past due nor impaired Information regarding trade receivables that are neither past due nor impaired is disclosed in Note 21. Deposits with banks and other financial institutions that are neither past due nor impaired are placed with or entered into with reputable financial institutions with high credit ratings and no history of default. Financial assets that are either past due or impaired Information regarding financial assets that are either past due or impaired is disclosed in Note 21. (ii) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulties in meeting financial obligations due to shortage of funds. The Group s exposures to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group s objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities. The Group s financial liabilities comprise of trade payables and other payables which are due within one year or payable on demand. 186 NCB HOLDINGS BHD ANNUAL REPORT I

189 NOTES TO THE FINANCIAL STATEMENTS 31 December Financial instruments (continued) (iii) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of the Group s financial instruments will fluctuate because of changes in market interest rates. The Group has no borrowings as at 31 December The Group s investment in financial assets are mainly short term in nature and mostly placed in financial deposits. Changes in interest rates are not expected to have a significant impact on the Group s profit or loss. (iv) Foreign currency risk Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign currency exchange rates. The Group has exposures to foreign currency fluctuation arising from revenue or expense that are denominated in currency other than the functional currency of the Group. However, as at 31 December 2011, the Group s exposure to foreign currency risk is not significant. The Group has not entered into any forward foreign exchange contracts as at 31 December Fair value of financial instruments The fair value of financial instruments is the amount at which the instrument could be exchanged for or settled between knowledgeable parties at an arm s length transaction, other than a forced or liquidation sale. The Group s financial instruments consist of cash and cash equivalents, trade and other receivables and trade and other payables. The Group s financial instruments are carried at amortised cost, which are not materially different from their fair values. 36. Capital management The primary objective of the Group s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. The Group manages its capital structure and makes adjustments to it, in light of changes in economic condition. To maintain or adjust capital structure, the Group may adjust the dividend payment to shareholder. The Group s approach in managing capital is based on defined guidelines that are approved by the Board. The were no changes in the Group s approach to capital management during the year. 37. Segment information The Group reporting is organised and managed in two major business segments. The segments are organised and managed to the nature of services provided, which requires different business and marketing strategies. The reportable segments are summarised as follows: (i) Port operations - the management of port activities which comprises the provision of container handling services, storage, stevedoring and other ancillary services. (ii) Logistics operations - the haulage of containers, warehousing and provision of freight forwarding services. The Group chief operating decision maker does not consider investment holding activities as a reportable operating segment and have included the information under others and elimination. No other operating segments has been aggregated to and from the above reportable operating segments. NCB HOLDINGS BHD ANNUAL REPORT I

190 NOTES TO THE FINANCIAL STATEMENTS 31 December Segment information (continued) The respective subsidiaries chief operating decision maker monitors the operating results of its business segments separately. Segment performance is evaluated based on operating profit or loss which, in certain respects, is measured differently from operating profit or loss in the consolidated financial statements. No segmental information is provided on a geographical basis as the Group s activities are carried out predominantly in Malaysia. The directors are of the opinion that all inter-segment transactions have been entered into in the normal course of business and have been established on terms and conditions that are not materially different from those obtainable in transactions with unrelated parties. 31 December 2011 Port Logistics Others and operations operations Elimination Consolidated RM 000 RM 000 RM 000 RM 000 Revenue External 693, , ,016 Inter-segment 6,034 16,510 (22,544) * - Total revenue 699, ,754 (22,544) 928,016 Result Segment results 160,500 6,857 (368) 166,989 Interest income 12, ,586 22,694 Share of profit of an associate Profit before tax 172,748 8,187 9, ,153 Income tax expense (26,186) (2,537) (2,441) (31,164) Non-controlling interest - (62) - (62) Profit, net of tax 146,562 5,588 6, ,927 Assets and liabilities Segment assets 2,002, ,178 (563,388) 1,929,498 Investment in associates - 7,355-7,355 Consolidated total assets 2,002, ,533 (563,388) 1,936,853 Segment liabilities 676, ,375 (475,555) 305,140 Other information Additions to property, plant and equipment 71,499 33, ,262 Additions to intangible assets 43, ,751 Depreciation of property, plant and equipment 75,257 13, ,222 Amortisation of intangible assets 77, ,620 Amortisation of prepaid land lease payments Amortisation of investment properties * Inter-segment revenues are eliminated on consolidation 188 NCB HOLDINGS BHD ANNUAL REPORT I

191 NOTES TO THE FINANCIAL STATEMENTS 31 December Segment information (continued) 31 December 2010 Port Logistics Others and operations operations Elimination Consolidated RM 000 RM 000 RM 000 RM 000 Revenue External 684, , ,893 Inter-segment 4,602 15,413 (20,015) * - Total revenue 688, ,306 (20,015) 887,893 Result Segment results 180,949 (382) (1,134) 179,433 Interest income 7,867 1,180 11,060 20,107 Share of profit of an associate Profit before tax 188,816 1,407 9, ,149 Income tax expense (42,185) (385) (2,562) (45,132) Non-controlling interest - (82) - (82) Profit, net of tax 146, , ,935 Assets and liabilities Segment assets 1,944, ,668 (265,361) 2,149,495 Investment in associates - 6,885-6,885 Consolidated total assets 1,944, ,553 (265,361) 2,156,380 Segment liabilities 764,361 89,579 (517,345) 336,595 Other information Additions to property, plant and equipment 38,136 7, ,209 Additions to intangible assets 33, ,000 Depreciation of property, plant and equipment 61,313 14, ,821 Amortisation of intangible assets 70, ,429 Amortisation of prepaid land lease payments Amortisation of investment properties * Inter-segment revenues are eliminated on consolidation NCB HOLDINGS BHD ANNUAL REPORT I

192 NOTES TO THE FINANCIAL STATEMENTS 31 December Significant events (a) Port leases The Government of Malaysia ( Government ) in its letter dated 16 December 2011 has approved in principle to the application for an extension of its concession period for the license and lease of the privatised Northport services for a period of 30 years for Northport and 21 years for Southpoint, subject to further negotiation on the terms and conditions of the concession. (b) Acquisition of non-controlling interests On 24 October 2011, Kontena Nasional Berhad ( KNB ), a subsidiary of the Company, acquired an additional 2,999,999 shares in KN Global Transport Sdn. Bhd. ( KNGT ) from Sime Darby Allied Products Bhd for a cash consideration of RM250,000. As a result of this acquisition, KNGT became a wholly-owned subsidiary of KNB. On the date of acquisition, the carrying value of the additional interest acquired was approximately RM2,991,000. The difference between the consideration and the carrying value of the interest acquired of approximately RM2,741,000 is reflected in retained earnings on acquisition of non-controlling interests. 190 NCB HOLDINGS BHD ANNUAL REPORT I

193 NOTES TO THE FINANCIAL STATEMENTS 31 December Supplementary information The breakdown of the retained earnings of the Group and of the Company as at 31 December 2011 into realised and unrealised profits is presented in accordance with the directive issued by Bursa Malaysia Securities Berhad dated 25 March 2010 and prepared in accordance with Guidance on Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants. Group RM 000 Company RM 000 Total retained earnings of the Company and its subsidiaries - Realised 935, ,441 - Unrealised (27,306) (64) 907, ,377 Total share of retained earnings from associate - Realised 4, , ,377 Add: Consolidation adjustments 46,916 - Retained earnings as per financial statements 959, ,377 NCB HOLDINGS BHD ANNUAL REPORT I

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195 Penyata Kewangan Laporan Para Pengarah Penyata Para Pengarah 196 Akuan Berkanun 196 Laporan Juruaudit Penyata Pendapatan Komprehensif Disatukan 199 Penyata Posisi Kewangan Disatukan 200 Penyata Perubahan Dalam Ekuiti Disatukan 201 Penyata Aliran Tunai Disatukan 202 Penyata Pendapatan Komprehensif 203 Penyata Posisi Kewangan 204 Penyata Perubahan Dalam Ekuiti 205 Penyata Aliran Tunai 206 Nota-Nota Kepada Penyata Kewangan