2004 - Hiap Teck Venture Berhad

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The aggregate remuneration paid/payable to all Directors of the Company are further categorised into the following components: SALARIES & OTHER BENEFITS- FEES EMOLUMENTS IN-KIND TOTAL (RM) (RM) (RM) (RM) Executive Directors - 4,200,105 51,300 4,251,405 Non-Executive Directors 189,000 - - 189,000 Shareholders The Board provides timely and accurate disclosure of all material information of the Group to the shareholders and investors. Information is disseminated through various disclosures and announcements made to the Bursa Malaysia Securities Berhad which includes the quarterly reports, annual report and press releases. Where applicable, the Board is prepared to enter into a dialogue with institutional shareholders. The Annual General Meeting is used as a principal forum for dialogue with all shareholders. Extraordinary General Meetings are held as and when required. At the General Meetings, the Board provides opportunities for shareholders to raise questions on the business activities of the Group, agenda of the meetings and its proposed resolutions. The Chairman of the meeting will facilitate the discussion with the shareholders and provide further information in response to shareholders’ queries. Accountability and Audit The Board through the review of the Audit Committee and in consultation with the external Auditors, presents a balanced and understandable assessment of the Group’s financial position and prospect to the public in accordance with the provisions of the Companies Act, 1965 and applicable approved accounting standards in Malaysia. The Audit Committee of the Company consists of 2 Independent Non-Executive Directors (one of whom is the Chairman) and the Managing Director. The current composition of the Audit Committee is in compliance with the requirement of paragraph 15.10 (b) of the Listing Requirements that is a majority of the members should be Independent Directors. The Audit Committee Report is set out in pages 14 to 16 of this report. An internal audit function was established on 1 November 2003 to assist the Audit Committee in reviewing the state of internal control of the Group and to highlight areas for management improvement. The state of internal control of the Group is explained in greater details in the enclosed Statement on Internal Control. The Board maintains formal and transparent relationships with its external Auditors through the review of their audit plans, scope of audit and audit report as well as their professional fees and appointment by the Audit Committee. The external Auditors are expected to report their findings to the Audit Committee and to discuss with the Board of Directors on matters that necessitate the Board’s attention. Relationship of the Board to the Management The Board recognises the importance for the Company to maintain a dynamic nature of relationship between the Board and the management. The Board as a whole is dedicated to practice clear demarcation of duties, responsibilities and authority within the Company. HIAP TECK VENTURE BERHAD 11
STATEMENT ON INTERNAL CONTROL The Board of Directors of Hiap Teck Venture Berhad acknowledges the importance of the systems of internal control and affirms that it is their responsibility to maintain a sound system of internal control including review of its adequacy and integrity in order to safeguard the shareholders’ investment and the Group’s assets. In this respect, the Board assumes its responsibility for identifying principal risks, ensuring the implementation of appropriate systems to manage these risks and reviewing the adequacy and integrity of the Group’s internal control system. However, it should be noted that such system of internal control is designed to manage rather than eliminate the risk of failure to achieve business objectives. Therefore these systems can only provide reasonable but not absolute assurance against material misstatements or losses. The following summarises the processes used by the Board on its reviews of system of internal controls. These processes were carried out on an on-going basis and were accorded with the Guidance on Statement on Internal Control. The process of identifying, evaluating and managing significant risks faced by the Group was dealt with as part of the operation management. Meetings are held regularly at the management level to monitor changes in the business environment and their impact on the operations. Significant corporate matters are brought to the attention of the Board for further deliberation to ensure that risks are appropriately considered and reasonably addressed. At this level, business strategies are considered by the Board to ensure that strategies are in-line with the corporate objective and direction. In order to assist the Board in reviewing the internal control system of the Group, the Audit Committee is tasked with the review of compliance, control and audit issues with the assistance of statutory and internal Auditors. Issues and findings are then reported by the Audit Committee to the Board. Annual budget is also used as a yardstick of measurement of the Group performance and risks are insured when appropriate to mitigate financial exposures to the Group. To further strengthen the current risk management practices in the Group, Internal Auditor was tasked to facilitate the management in risk documentation exercise. This risk documentation exercise aims to supplement management risk awareness and to provide inputs for the risks discussion at the management level. In addition, to ensure the quality control of services and production, the management has successfully initiated an ISO program during the financial year for one of its major production plants in the Group. Other key control practices in the Group include definition of management reporting structure, segregation of duties and generation of financial information for Audit Committee’s review and Board approval. 12 HIAP TECK VENTURE BERHAD
Page 1 and 2: 2004 annual report C R E A T I N G
Page 3 and 4: CORPORATE STRUCTURE 100% 100% 100%
Page 5 and 6: PROFILE OF THE BOARD OF DIRECTORS T
Page 7 and 8: CHAIRMAN’S STATEMENT On behalf of
Page 9 and 10: FINANCIAL HIGHLIGHTS Revenue (RM’
Page 11: The Company’s Articles of Associa
Page 15 and 16: AUDIT COMMITTEE REPORT The Audit Co
Page 17 and 18: 6. Audit Committee Report The Commi
Page 19 and 20: Directors’ Report The directors h
Page 21 and 22: ISSUE OF SHARES AND INITIAL PUBLIC
Page 23 and 24: Statement by Directors Pursuant to
Page 25 and 26: Balance Sheets as at 31 July 2004 N
Page 27 and 28: Consolidated Statement of Changes i
Page 29 and 30: Cash Flow Statements for the year e
Page 31 and 32: Notes to the Financial Statements 3
Page 33 and 34: 2. SIGNIFICANT ACCOUNTING POLICIES
Page 35 and 36: 2. SIGNIFICANT ACCOUNTING POLICIES
Page 37 and 38: 3. PROPERTY, PLANT AND EQUIPMENT (C
Page 39 and 40: 5. OTHER INVESTMENTS GROUP COMPANY
Page 41 and 42: 11. CASH AND CASH EQUIVALENTS GROUP
Page 43 and 44: 14. TRADE PAYABLES The normal trade
Page 45 and 46: 18. DEFERRED TAX (CONT’D) Deferre
Page 47 and 48: 23. DIRECTORS' REMUNERATION Directo
Page 49 and 50: 25. TAXATION (CONT’D) Company 200
Page 51 and 52: 30. SIGNIFICANT RELATED PARTY TRANS
Page 53 and 54: 33. SIGNIFICANT EVENTS In conjuncti
Page 55 and 56: 34. SEGMENTAL INFORMATION (CONT’D
Page 57 and 58: Analysis of Shareholdings as at 15
Page 59 and 60: DIRECTORS’ SHAREHOLDING as at 15
Page 61 and 62: financial year, amongst others, on
Page 63 and 64:
Statement Accompanying Notice of An
Page 65 and 66:
Company Secretaries HIAP TECK VENTU
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2004 - Hiap Teck Venture Berhad

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