kalendar peristiwa penting 2005/2006

Transcription

INGRESS CORPORATION BERHAD
2
NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN that the SEVENTH ANNUAL GENERAL MEETING of INGRESS
CORPORATION BERHAD (“the Company”) will be held on Monday, 10 July 2006 at the
Parameswara Ballroom, Level 2, MINES Beach Resort & Spa, Jalan Dulang, MINES Resort
City, 43300 Seri Kembangan, Selangor Darul Ehsan at 10.30 a.m. for the following
businesses:AGENDA
1. To receive, consider and adopt the Audited Financial Statements for the financial year ended 31
January 2006 together with the Report of the Directors and Auditors thereon;
Resolution 1
2. To approve the declaration of a final ordinary tax exempt dividend of 4 sen per share in respect of
the financial year ended 31 January 2006 as recommended by the Directors;
Resolution 2
3. To approve the Directors’ fees for the financial year ended 31 January 2006;
Resolution 3
4. To re-elect the following Directors retiring pursuant to Article 103 of the Company’s Articles of
Association:
i. Datuk Rameli bin Musa
Resolution 4
ii. Vaseehar Hassan bin Abdul Razack
Resolution 5
5. To consider, and if thought fit, to pass the following resolution pursuant to Section 129(6) of the
Companies Act, 1965:
“THAT Dato’ Nasir bin Yusoff, who is over the age of seventy (70) years, be hereby re-appointed
as Director of the Company and to hold office until the next Annual General Meeting of the
Company”.
Resolution 6
6. To re-appoint Messrs Ernst & Young as Auditors of the Company for the ensuing year and to
authorise the Directors to fix their remuneration.
Resolution 7
7. AS SPECIAL BUSINESS
To consider and, if thought fit, to pass the following Ordinary Resolution:PROPOSED AUTHORITY TO ALLOT SHARES PURSUANT TO SECTION 132D OF THE
COMPANIES ACT, 1965
“THAT pursuant to Section 132D of the Companies Act 1965 the Directors be and hereby
authorised to allot and issue shares in the Company at any time and upon such terms and
conditions and for such purposes as the Directors may, in their absolute discretion, deem fit
provided that the aggregate number of shares issued pursuant to this resolution does not exceed
10% of the issued share capital of the Company as at the date of this Annual General Meeting and
that the Directors be and are also empowered to obtain the approval for the listing of quotation
for the additional shares so issued on the Bursa Malaysia Securities Berhad (“Bursa Malaysia”) and
that such authority shall continue to be in force until the conclusion of the next Annual General
Meeting of the Company”.
Resolution 8
www.ingresscorp.com.my
8. To transact any other business of the Company of which due notice has been received.
NOTICE OF BOOK CLOSURE
NOTICE IS ALSO HEREBY GIVEN that the dividend, if approved, will be paid on 11 August 2006.
The Register of Members will be closed on 25 July 2006 to 26 July 2006 (both dates inclusive) to
determine shareholders’ entitlement to the said dividend.
A Depositor shall qualify for entitlement only in respect of:(a) Shares transferred into the Depositors’ Securities Account before 4.00 p.m. on 25 July 2006 in
respect of ordinary transfer; and
(b) Shares bought on Bursa Malaysia on a cum entitlement basis according to the Rules of Bursa
Malaysia.
By Order of the Board
Nolida binti Md Hashim (LS 007254)
Company Secretary
Selangor Darul Ehsan
17 June 2006
Note:
1.
A member entitled to attend and vote at the Meeting is entitled to appoint a proxy or proxies to attend and vote in his or her
stead. A proxy may, but need not be, a member of the Company.
2.
The instrument appointing a proxy shall be in writing under the hand of appointer or his or her attorney duly appointed
under a power of attorney or if such appointer is a corporation either under its common seal or under the hand of an officer
or attorney duly appointed under a power of attorney.
3.
Where a member appoints more than one proxy, the appointment is invalid unless the proportions of holdings represented
to each proxy are specified.
4.
The instrument appointing a proxy must be deposited at the registered office of the Company, Lot 1M, 1st Floor, No.2, Tasik
Ampang, Jalan Hulu Kelang, 68000 Ampang, Selangor, at least forty eight (48) hours before the time appointed for holding
the Meeting or any adjournment thereof.
5.
Registration of Members/Proxies attending the Meeting will be from 9.00 a.m. on the day of the Meeting. Members/Proxies
are required to produce their identification documents for registration.
6.
Explanatory Notes for Resolution No. 8
The proposed Resolution 8, if passed, will give the Directors of the Company, from the date of the above Annual General
Meeting, authority to issue and allot ordinary shares from the unissued capital of the Company being for such purposes as
the Directors consider would be in the interest of the Company. This authority will unless revoked or varied by the Company
in a general meeting, expire at the next Annual General Meeting.
3
4
STATEMENT ACCOMPANYING NOTICE OF
ANNUAL GENERAL MEETING
Pursuant to Paragraph 8.28 (2) of the Bursa Malaysia Listing Requirement.
1. The names of individuals who are standing for re-election are as follows:No.
1.
2.
Name
Datuk Rameli bin Musa
Vaseehar Hassan bin Abdul Razack
Appointed on
23 October 2000
23 October 2000
Further details of Directors who stand for re-election at the Seventh Annual General Meeting are
set out on pages 10 to 12.
2. The name of individual who is seeking for re-appointment pursuant to Section 129(6) of the
Companies Act, 1965:No.
1.
Name
Dato’ Nasir bin Yusoff
Appointed on
23 October 2000
Further details of Dato’ Nasir bin Yusoff are set out on page 10.
3. Details of attendance of Directors at Board of Directors’ Meetings during the financial year ended
31 January 2005 are as follows:No.
1.
2.
3.
4.
5.
6.
7.
Directors
Ungku Farid bin Ungku Abd Rahman
Ab Rahim bin Husain
Ramli bin Napiah
Shamsudin @ Samad bin Kassim
No. of Meetings Attended
7/7
7/7
5/7
7/7
7/7
7/7
5/7
4. Place, date and time of Board Meetings held.
All Board Meetings except for Board Meeting held on 26 September 2005 were held at the
registered office of the Company situated at Lot 1M, 1st Floor, No.2, Tasik Ampang, Jalan Hulu
Kelang, 68000 Ampang, Selangor Darul Ehsan. The date and time of the Board Meetings are as
follows:Date
23 March 2005
9 May 2005
23 June 2005
11 July 2005
26 September 2005
22 December 2005
26 January 2006
Time
2.30 p.m.
10.00 a.m.
2.30 p.m.
8.30 a.m.
9.10 a.m.
10.00 a.m.
9.00 a.m.
5. The Seventh Annual General Meeting of the Company will be held as follows:Date
Monday,
10 July 2006
Time according to the Notice
of Meeting
10.30 a.m.
Venue
Parameswara Ballroom, Level 2,
MINES Beach Resort & Spa,
Jalan Dulang, MINES Resort City,
43300 Seri Kembangan,
Selangor Darul Ehsan.
5
CORPORATE INFORMATION
BOARD OF DIRECTORS
OTHER INFORMATION
Chairman / Independent Non-Executive
Director
•
Registered Office
Lot 1M, 1st Floor, No.2, Tasik Ampang,
Jalan Hulu Kelang, 68000 Ampang,
Tel: 603-4252 9696
Fax: 603-4252 9393
•
Company Secretary
Nolida binti Md Hashim
(LS 007254)
•
Principal Bankers
Bank Muamalat Malaysia Berhad
Bumiputra-Commerce Bank Berhad
Malayan Banking Berhad
Bank Islam Malaysia Berhad
Citibank Berhad
HSBC Bank Malaysia Berhad
EON Bank Berhad
Bangkok Bank Berhad
Ambank Malaysia Berhad
Standard Chartered Bank Malaysia Berhad
Hong Leong Bank Berhad
United Overseas Bank Public Company Limited, Thailand
Bangkok Bank Public Company Limited, Thailand
Asia Credit Public Company Limited, Thailand
Kasikornbank Public Company Limited, Thailand
PT Bank Maybank Indocorp, Indonesia
The Hongkong and Shanghai Banking Corporation Limited, Indonesia
•
Stock Exchange Listing
Main Board of Bursa Malaysia
•
Auditors
Ernst & Young (AF 0039)
(Chartered Accountants)
Level 23A, Menara Milenium,
Jalan Damanlela,
Pusat Bandar Damansara,
50490 Kuala Lumpur.
•
Principal Solicitors
Messrs Azmi & Associates
Messrs Ainul Azam & Co
Messrs Tajul Arafat & Associates
Vickery & Worachai Ltd. (Thailand)
Madelar Winenda Hapidekso Law Firm (Indonesia)
•
Share Registrar
AAJ Registration Services Sdn Bhd (409111-V)
Suite 11.3A,11th Floor, Menara Haw Par,
Jalan Sultan Ismail, 50250 Kuala Lumpur.
Tel: 603-2072 8007
Fax: 603-2072 8006
•
Website
http://www.ingresscorp.com.my
•
E-Mail Address
investordesk@ingresscorp.com.my
Executive Vice-Chairman /
Non-Independent Executive Director
Independent Non-Executive Director
Ab Rahim bin Husain
Ramli bin Napiah
BOARD COMMITTEES
•
Audit Committee
Chairman
- Dato’ Nasir bin Yusoff
Members
- Vaseehar Hassan bin Abdul Razack
•
-
-
Nomination Committee
Chairman
- Dato’ Nasir bin Yusoff
Members
- Ab Rahim bin Husain
-
•
Remuneration Committee
Chairman
- Vaseehar Hassan bin Abdul Razack
Members
- Datuk Rameli bin Musa
Executive Vice-Chairman /
-
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FINANCIAL HIGHLIGHTS
GROUP
AUTOMOTIVE
06
05
04
30,234
35,376
15,684
33,964
42,545
PER
RM Million
06
05
04
03
18,978
20,270
22,854
30,371
32,989
02
‘06
‘05
‘04
‘03
‘02
06
05
04
03
14,487
14,440
18,443
33,618
37,222
‘06
‘05
‘04
‘03
‘02
RM Million
02
06
05
04
03
03
AUTOMOTIVE
RM Million
‘06
‘05
‘04
‘03
‘02
RM Million
241,268
173,367
139,775
137,687
132,030
02
‘06
‘05
‘04
‘03
‘02
06
05
04
03
289,710
213,160
155,459
171,651
174,575
02
06
05
04
03
02
‘06
‘05
‘04
‘03
‘02
PER
RM Million
GROUP
02
PRE-TAX PROFIT/(LOSS)
REVENUE
RM Million
‘06
‘05
‘04
‘03
‘02
12
(5,917)
(4,411)
3,247
4,233
GROUP
Financial Year Ended 31 January
Revenue
Pre-tax profit/(loss)
Profit/(loss) after tax and minority interest
Total assets
Shareholders’ equity
Return on total assets
Return on shareholders’ equity
Basic earnings per share
Dividend per share
Dividend cover
Net tangible assets per share
2006
2005
2004
2003
2002
RM’000
RM’000
RM’000
RM’000
RM’000
%
%
289,710
14,487
14,857
595,023
182,969
2.5
8.1
213,160
14,440
15,033
538,262
172,970
2.8
8.7
155,459
18,443
11,681
337,383
163,261
3.5
7.2
171,651
33,618
18,435
324,480
150,880
5.7
12.2
174,575
37,222
26,169
285,698
132,434
9.2
19.8
sen
sen
times
RM
19.35
7.00
3.9
2.37
20.26
5.00
4.1
2.25
18.25
5.00
3.7
2.55
28.80
4.32
6.7
2.35
41.50
4.32
9.5
2.06
SHARE PRICE / FINANCIAL CALENDAR
31 January 2002
31 January 2003
Financial Year Ended
31 January 2004
31 January 2005
31 January 2006
Highest
Highest
Highest
Highest
Highest
RM 2.47
RM 3.22
RM 2.90
RM 2.48
RM 1.31
RM 1.41
RM 2.06
RM 2.34
RM 1.09
RM 0.90
Lowest
Lowest
Lowest
Lowest
Lowest
GROUP
AUTOMOTIVE
06
05
04
03
AUTOMOTIVE
26,862
25,585
31,081
34,115
32,278
PER
AUTOMOTIVE
06
05
04
RM Million
480,117
451,014
260,735
240,027
208,878
03
‘06
‘05
‘04
‘03
‘02
02
06
05
04
03
595,023
538,262
337,383
324,480
285,698
‘06
‘05
‘04
‘03
‘02
RM Million
02
06
05
04
03
‘06
‘05
‘04
‘03
‘02
RM Million
156,760
146,013
132,180
116,765
100,156
RM Million
02
TOTAL ASSETS
GROUP
‘06
‘05
‘04
‘03
‘02
02
06
05
04
182,969
172,970
163,261
150,880
132,434
03
‘06
‘05
‘04
‘03
‘02
7
PER
RM Million
02
06
05
04
03
RM Million
02
SHAREHOLDERS’ EQUITY
PER
‘06
‘05
‘04
‘03
‘02
89,441
68,680
76,648
84,453
76,820
OTHERS
2006
2005
2004
2003
2002
2006
2005
2004
2003
2002
2006
2005
241,268
18,978
18,290
480,117
156,760
3.8
11.7
173,367
20,270
20,486
451,014
146,013
4.5
14.0
139,775
22,854
14,718
260,735
132,180
5.6
11.1
137,687
30,371
16,598
240,027
116,765
6.9
14.2
132,030
32,989
23,253
208,878
100,156
11.1
23.2
30,234
12
174
89,441
26,862
0.2
0.6
35,376
(5,917)
(5,497)
68,680
25,585
-
15,684
(4,411)
(3,037)
76,648
31,081
-
33,964
3,247
1,837
84,453
34,115
2.2
5.4
42,545
4,233
2,916
76,820
32,278
3.8
9.0
18,208
(4,503)
(3,607)
25,465
(653)
-
4,417
87
44
18,568
1,372
0.2
3.2
Announcement of Results:First Quarter
:
Second Quarter :
23 June 2005
27 September 2005
Third Quarter
:
22 December 2005
Fourth Quarter
:
22 March 2006
Annual Report
Despatch Date:17 June 2006
The Seventh Annual General Meeting
of the Company will be held as follows:Date
Time
Venue
10 July 2006
10.30 a.m.
Parameswara Ballroom, Level 2
MINES Beach Resort & Spa,
Jalan Dulang, MINES Resort City,
43300 Seri Kembangan,
8
GROUP STRUCTURE
INGRESS CORPORATION
BERHAD
(490799-K)
COMPONENT MANUFACTURING
- Ingress Engineering Sdn Bhd
- Ingress Precision Sdn Bhd
AUTOMOTIVE
- Ingress Technologies Sdn Bhd
- Ingress Autoventures Co., Ltd
- PT Ingress Malindo Ventures
ENGINEERING SERVICES
- Ingress Research Sdn Bhd
- Talent Synergy Sdn Bhd
POWER ENGINEERING
- Multi Discovery Sdn Bhd
- Ramusa Engineering Sdn Bhd
- Matrix Power Services Sdn Bhd
- Matrix Hydro Generation Sdn Bhd
PER
RAIL ELECTRIFICATION
OIL & GAS
- Balfour Beatty Rail Sdn Bhd
- Ingress Environmental Sdn Bhd
(Associate Company)
- Ingress Fabricators Sdn Bhd
OTHERS
- PT Ingress Amdac Environmental
Note:
* For details, please refer to page 87 on Investment in Subsidiaries.
SUPPORT
- PT Bina Selaras Tradindo
One (1) SPV and two (2) other dormant
companies*
BOARD OF DIRECTORS / LEMBAGA PENGARAH
from left to right / dari kiri ke kanan
Ramli bin Napiah
Ab Rahim bin Husain
9
10
PROFILE OF DIRECTORS / PROFIL PENGARAH-PENGARAH
Secretary before joining Majlis Amanah Rakyat (MARA) in
1967 as Head of Planning and Evaluation Unit. From 1969
until his retirement in 1997, he worked in the Federal Land
Development Authority (FELDA) serving in various posts
including Finance Director, Group Managing Director and
finally as Business Advisor.
His directorships in other public companies are Royal and
Sun Alliance (M) Berhad and BKF Berhad. He also sits on the
Board of several other private limited companies.
Dato’ Nasir serves as the Chairman of the Audit and
Nomination Committees of the Company.
Aged 72, a Malaysian, appointed as the Chairman and
Independent Non-Executive Director since 23 October 2000.
He holds a Bachelor of Arts in Economics with Honours from
University of Malaya (now National University of Singapore)
and Diploma in Economics and Social Administration
from London School of Economics and Political Science,
University of London. He attended a Senior Management
Programme conducted by Harvard University. He started
as a civil servant in the Kelantan State Government in 1958
and his last position in that service was the Assistant State
Save as disclosed on page 108, Dato’ Nasir does not hold any
securities in the subsidiaries and none of his family members
have direct or indirect relationship with any director and/or
major shareholder of the Company. He has not entered into
any transaction, whether directly or indirectly, which has
a conflict of interest with the Company and has not been
convicted of any criminal offences within the past 10 years.
He attended all of the seven Board Meetings held during the
year.
before his resignation in 1998. He currently sits on the Board
of several other private limited companies.
Datuk Rameli is a member of the Remuneration Committee
of the Company.
Aged 59, a Malaysian, appointed as the Executive ViceChairman and Non-Independent Executive Director since 23
October 2000. He holds a Bachelor of Telecommunications
Engineering and a Master in Microwave Communications
both from the University of Sheffield, United Kingdom.
He started as a lecturer in electronics and microwave
telecommunications at Universiti Teknologi Malaysia in 1972.
He left Universiti Teknologi Malaysia in 1975 to work with
Pernas NEC Telecommunications Sdn Bhd, where he worked
from 1976 to 1980 before joining Sapura Holdings Sdn
Bhd rising to the post of Executive Vice-Chairman. In 1997,
he joined Tap Resources Berhad as its Executive Chairman
Save as disclosed on page 108, Datuk Rameli does not hold
any securities in the subsidiaries. None of his family members
major shareholder of the Company save and except by virtue
of his substantial shareholdings and directorship in Ramdawi
Sdn Bhd. He has not entered into any transaction, whether
directly or indirectly, which has a conflict of interest with
the Company and has not been convicted of any criminal
offences within the past 10 years. He attended all of the
seven Board Meetings held during the year.
Berusia 72 tahun, warganegara Malaysia, dilantik sebagai
Pengerusi dan Pengarah Bebas Bukan Eksekutif sejak 23
Oktober 2000. Beliau memegang Ijazah Sarjana Muda Sastera
dalam bidang Ekonomi dengan kepujian dari University of
Malaya (kini National University of Singapore) dan Diploma
Ekonomi dan Pentadbiran Sosial dari London School of
Economics and Political Science, University of London. Beliau
mengikuti Program Pengurusan Kanan yang dikendalikan oleh
Harvard University. Beliau memulakan kerjayanya di dalam
perkhidmatan awam dengan Kerajaan Negeri Kelantan pada
tahun 1958 dan jawatan terakhir beliau di dalam perkhidmatan
itu adalah sebagai Penolong Setiausaha Kerajaan Negeri
sebelum menyertai Majlis Amanah Rakyat (MARA) pada tahun
1967 sebagai Ketua Unit Perancangan dan Penilaian. Dari
tahun 1969 sehingga bersara pada 1997, beliau berkhidmat di
Lembaga Kemajuan Tanah Persekutuan (FELDA), memegang
pelbagai jawatan termasuk Pengarah Kewangan, Pengarah
Urusan Kumpulan dan Penasihat Perniagaan.
11
Dato’ Nasir berkhidmat sebagai Pengerusi Jawatankuasa Audit
dan Perlantikan Syarikat.
Selain daripada yang telah dinyatakan pada mukasurat 108,
Dato’ Nasir tidak memegang sebarang saham dalam anak
syarikat dan tiada di kalangan ahli keluarga beliau yang
mempunyai kaitan secara langsung atau tidak langsung
dengan mana-mana Pengarah dan/atau pemegang saham
utama Syarikat. Beliau tidak pernah terlibat dengan apa-apa
urusniaga, sama ada secara langsung atau tidak langsung,
yang mempunyai percanggahan kepentingan dengan Syarikat
dan tidak pernah disabitkan apa-apa kesalahan jenayah
sepanjang 10 tahun yang lalu. Beliau telah menghadiri kesemua
tujuh Mesyuarat Lembaga Pengarah untuk tahun tersebut.
Beliau menjadi Pengarah di dalam syarikat-syarikat awam
lain seperti Royal and Sun Alliance (M) Berhad dan BKF Berhad.
Beliau juga adalah ahli Lembaga beberapa syarikat sendirian
berhad.
Naib Pengerusi Eksekutif dan Pengarah Eksekutif Bukan Bebas
sejak 23 Oktober 2000. Beliau memegang Ijazah Sarjana
Muda Kejuruteraan Telekomunikasi dan Sarjana Komunikasi
Gelombang Mikro dari University of Sheffield, United Kingdom.
Beliau memulakan kerjayanya sebagai pensyarah dalam
bidang elektronik dan telekomunikasi gelombang mikro di
Universiti Teknologi Malaysia pada tahun 1972. Beliau meletak
jawatan sebagai pensyarah di Universiti Teknologi Malaysia
pada 1975 bagi menyertai Pernas NEC Telecommunications
Sdn Bhd, di mana beliau berkhidmat dari tahun 1976 hingga
1980 sebelum meneruskan kerjaya beliau bersama Sapura
Holdings Sdn Bhd sehingga dilantik menjadi Naib Pengerusi
Eksekutif. Dalam tahun 1997, beliau menyertai Tap Resources
Berhad sebagai Pengerusi Eksekutif sebelum meletak jawatan
pada tahun 1998. Beliau juga adalah ahli Lembaga beberapa
syarikat sendirian berhad.
Datuk Rameli merupakan ahli Jawatankuasa Imbuhan
Syarikat.
Datuk Rameli tidak memegang sebarang saham dalam anak
utama Syarikat kecuali dan hanya dengan menjadi pemegang
saham utama dan jawatan pengarah yang dipegang di
Ramdawi Sdn Bhd. Beliau tidak pernah terlibat dengan apaapa urusniaga sama ada secara langsung atau tidak langsung
yang mempunyai percanggahan kepentingan dengan Syarikat
sepanjang 10 tahun yang lalu. Beliau telah menghadiri kesemua
tujuh Mesyuarat Lembaga Pengarah untuk tahun tersebut.
12
Dallah AlBaraka Group of Saudi Arabia. His directorships in
other public companies and financial institutions are Rashid
Hussain Berhad, RHB Capital Berhad, RHB Bank Berhad, RHB
Sakura Merchant Bankers Berhad, RHB Insurance Berhad,
Utama Banking Group Berhad and CMS Trust Management
Berhad. He also sits on the Board of several other private
limited companies.
He is the Chairman of the Remuneration Committee and a
member of the Audit Committee of the Company.
Aged 55, a Malaysian appointed as an Independent NonExecutive Director since 23 October 2000. He has 26 years
of experience in the financial sector. He has a Bachelor’s
Degree in Accounting, Master in Business Administration
as well as Specialised Masters in Consulting and Coaching
and is currently pursuing a Doctoral Research at the Vrije
Universiteit, Amsterdam.
Save as disclosed on page 108, Vaseehar does not hold any
have direct or indirect relationship with any director and/
or major shareholder of the Company. He has not entered
into any transaction, whether directly or indirectly, which
has a conflict of interest with the Company and has not
been convicted of any criminal offences within the past 10
years. He attended five out of the seven Board Meetings held
during the year.
He is currently the Chairman of RHB Islamic Bank Berhad and
Chief Executive and Director of the Malaysian subsidiary of
Tap Resources Berhad as Executive Director Finance before
resigning in 1998. He joined Ingress Engineering Sdn Bhd as
a Director in 1998. He currently sits on the Board of several
other private limited companies.
He is a member of the Audit Committee of the Company.
Aged 52, a Malaysian appointed as the Non-Independent
Executive Director since 23 October 2000. He is a member
of the Malaysian Institute of Accountants and a Fellow
of the Chartered Institute of Management Accountants
(UK). He holds a Master in Business Administration from
Ohio University (USA), in collaboration with Universiti
Teknologi MARA (UiTM). His previous work experience was
with Pernas NEC Telecommunications Sdn Bhd in 1980.
In 1981, he joined Sapura Holdings Sdn Bhd and held
several positions before being promoted to Group General
Manager, Finance & Accounting in 1989. In 1995 he joined
Time Telecommunications Sdn Bhd and in 1997, he joined
Save as disclosed on page 108, Ungku Farid does not hold
any securities in the subsidiaries. None of his family members
major shareholder of the Company save and except by virtue
of his directorship in Ramdawi Sdn Bhd. He has not entered
into any transaction, whether directly or indirectly, which
has a conflict of interest with the Company and has not been
year.
Pengarah Bebas Bukan Eksekutif sejak 23 Oktober 2000. Beliau
mempunyai 26 tahun pengalaman di bidang kewangan. Beliau
yang memegang Ijazah Sarjana Muda dalam Perakaunan,
Ijazah Sarjana dalam Pengurusan Perniagaan serta “Specialised
Masters in Consulting, and Coaching” pada masa ini sedang
mengikuti kursus penyelidikan kedoktoran di Vrije Universiteit,
Amsterdam.
Di samping tanggungjawabnya sebagai Pengerusi RHB Islamic
Bank Berhad serta Ketua Eksekutif dan Pengarah kepada anak
syarikat di Malaysia bagi Kumpulan Dallah AlBaraka, Arab
Saudi, beliau juga adalah Pengarah di dalam syarikat-syarikat
awam lain seperti Rashid Hussain Berhad, RHB Capital Berhad,
RHB Bank Berhad, RHB Sakura Merchant Bankers Berhad, RHB
Insurance Berhad, Utama Banking Group Berhad dan CMS
Trust Management Berhad. Beliau juga adalah ahli Lembaga
beberapa syarikat sendirian berhad.
13
Vaseehar tidak memegang sebarang saham di dalam anak
mempunyai kaitan, secara langsung atau tidak langsung,
utama Syarikat. Beliau tidak pernah terlibat dengan apaapa urusniaga, secara langsung atau tidak langsung yang
mempunyai percanggahan kepentingan dengan Syarikat
dalam tempoh 10 tahun yang lepas. Beliau telah menghadiri
sebanyak lima daripada tujuh Mesyuarat Lembaga Pengarah
untuk tahun tersebut.
Beliau adalah Pengerusi Jawatankuasa Imbuhan dan ahli
Jawatankuasa Audit Syarikat.
Pengarah Eksekutif Bukan Bebas sejak 23 Oktober 2000. Beliau
adalah ahli Institut Akauntan Malaysia dan Fellow Chartered
Institute of Management Accountants (UK). Beliau mempunyai
Sarjana Pentadbiran Perniagaan dari Ohio University (Amerika
Syarikat) secara usaha sama dengan Universiti Teknologi MARA
(UiTM). Pengalaman kerjaya beliau termasuk berkhidmat di
Pernas NEC Telecommunications Sdn Bhd dalam tahun 1980.
Pada tahun 1981, beliau telah menyertai Sapura Holdings
Sdn Bhd dan menjawat beberapa jawatan sebelum dinaikkan
pangkat sebagai Pengurus Besar Kumpulan, Perakaunan
dan Kewangan pada tahun 1989. Dalam tahun 1995, beliau
menyertai Time Telecommunications Sdn Bhd dan pada
tahun 1997, beliau kemudiannya berkhidmat di Tap Resources
Berhad sebagai Pengarah Eksekutif Kewangan sehingga beliau
meletakkan jawatan pada tahun 1998. Beliau menyertai Ingress
Engineering Sdn Bhd sebagai Pengarah pada tahun 1998.
Beliau juga adalah ahli Lembaga beberapa syarikat sendirian
berhad.
Beliau merupakan ahli Jawatankuasa Audit Syarikat.
Selain daripada seperti yang telah dinyatakan pada mukasurat 108, Ungku Farid tidak memegang sebarang saham
dalam anak syarikat. Tiada di kalangan ahli keluarga beliau
yang mempunyai kaitan secara langsung atau tidak langsung
utama Syarikat kecuali dan hanya dengan jawatan pengarah
yang dipegang di Ramdawi Sdn Bhd. Beliau tidak pernah
terlibat dengan apa-apa urusniaga sama ada secara langsung
atau tidak langsung, yang mempunyai percanggahan
kepentingan dengan Syarikat dan tidak pernah disabitkan
apa-apa kesalahan jenayah sepanjang 10 tahun yang lalu.
Beliau telah menghadiri kesemua tujuh Mesyuarat Lembaga
Pengarah untuk tahun tersebut.
14
He is a member of the Nomination Committee of the
Company.
Ab Rahim bin Husain
Save as disclosed on page 108, Ab Rahim does not hold any
year.
Aged 49, a Malaysian appointed as a Non-Independent
Executive Director since 23 October 2000. He holds a
Bachelor in Business Administration in 1980 from Ohio
University (USA), in collaboration with Universiti Teknologi
MARA (UiTM). He worked in Petroliam Nasional Berhad
from 1980 to 1984 before joining Proton and held various
positions with his last being the Deputy General Manager
of Procurement and Vendor Development. He joined Ingress
Engineering Sdn Bhd as a Director in 1996. He currently sits
on the Board of several other private limited companies.
1991 as a Director. He currently sits on the Board of several
other private limited companies.
Ramli bin Napiah
Aged 53, a Malaysian appointed as a Non-Independent
Executive Director since 4 October 2001. He holds a Bachelor
of Engineering with Honours in Mechanical & Management
Sciences from University of Sheffield. He started as a Technical
Assistant in 1973 in Jabatan Kerja Raya, Melaka. In 1979,
he was a Trainee Manager in Heightsway Limited, United
Kingdom. He left Heightsway Limited in 1981 to work in
KARA Establishment, Saudi Arabia as an Assistant Operations
Manager until 1982. From 1982, he worked for several years
in Pernas NEC Kedah Sdn Bhd, serving in various managerial
positions prior to joining Ingress Engineering Sdn Bhd in
Save as disclosed on page 108, Ramli does not hold any
securities in the subsidiaries. None of his family members
year.
memegang Ijazah Sarjana Muda Pentadbiran Perniagaan dari
Ohio University (Amerika Syarikat) pada tahun 1980 secara
usaha sama dengan Universiti Teknologi MARA (UiTM). Beliau
telah berkhidmat di Petroliam Nasional Berhad dari tahun
1980 sehingga 1984 sebelum menyertai Proton memegang
pelbagai jawatan, yang terakhir sebagai Timbalan Pengurus
Besar Jabatan Perolehan dan Pembangunan Vendor. Beliau
telah menyertai Ingress Engineering Sdn Bhd sebagai Pengarah
dalam tahun 1996. Beliau juga adalah ahli Lembaga beberapa
15
tidak pernah disabitkan apa-apa kesalahan jenayah sepanjang
10 tahun yang lepas. Beliau telah menghadiri kesemua tujuh
Mesyuarat Lembaga Pengarah untuk tahun tersebut.
Beliau adalah ahli Jawatankuasa Perlantikan Syarikat.
Ab Rahim tidak memegang sebarang saham dalam anak
utama Syarikat. Beliau tidak pernah terlibat dengan apa-apa
urusniaga sama ada secara langsung atau tidak langsung yang
mempunyai percanggahan kepentingan dengan Syarikat dan
berkelulusan Ijazah Sarjana Muda Kejuruteraan Mekanikal
dan Sains Pengurusan dengan kepujian dari University of
Sheffield. Beliau memulakan kerjayanya sebagai Pembantu
Teknik Jabatan Kerja Raya, Melaka dalam tahun 1973. Pada
tahun 1979, beliau merupakan Pengurus Pelatih di Heightsway
Limited, United Kingdom. Beliau menamatkan perkhidmatan
dengan Heightsway Limited pada tahun 1981 bagi meneruskan
kerjayanya di KARA Establishment, Arab Saudi sebagai
Pembantu Pengurus Operasi sehingga tahun 1982. Mulai tahun
1982, beliau telah bertugas di Pernas NEC Kedah Sdn Bhd,
dengan memegang pelbagai jawatan pengurusan sebelum
menyertai Ingress Engineering Sdn Bhd dalam tahun 1991
sebagai Pengarah. Beliau juga adalah ahli Lembaga beberapa
Ramli tidak memegang sebarang saham dalam anak syarikat
dan tiada di kalangan ahli keluarga beliau yang mempunyai
kaitan secara langsung atau tidak langsung dengan manamana Pengarah dan/atau pemegang saham utama Syarikat.
Beliau tidak pernah terlibat dengan apa-apa urusniaga, sama
ada secara langsung atau tidak langsung yang mempunyai
percanggahan kepentingan dengan Syarikat dan tidak pernah
disabitkan apa-apa kesalahan jenayah sepanjang 10 tahun
yang lalu. Beliau telah menghadiri kesemua tujuh Mesyuarat
Lembaga Pengarah untuk tahun tersebut.
16
Aged 59, a Malaysian, appointed as an Independent and
Non-Executive Director since 2 November 2001. He holds
a Bachelor of Economics from University of Malaya and
a Master in Public and International Affairs (MPIA) from
University of Pittsburg. He started his career as Assistant
Secretary in Ministry of Works in 1970 and later as an
Economist in the Highway Planning Unit in 1973. In 1974,
he was appointed as Assistant Director of Services Division
in Public Services Department until 1979. He was a former
Program Coordinator in Institut Pentadbiran Awam Negara
(lNTAN) from 1981 until his secondment to Malaysian
Industrial Development Finance Berhad (MIDF) in 1984.
In 1985, he was appointed as Senior Assistant Secretary of
Industries Division in Ministry of International Trade and
Industry (MITI). He was Malaysia’s Trade Commissioner in
Vienna, Austria from 1989 to 1996. From 1996 to 1999, he
was the Director of Industries Division in MITI. In early 2000,
he was appointed as the Chief Executive Officer of Small and
Medium Industries Development Corporation (SMIDEC) and
served until his retirement from the public service.
His directorships in other public companies are Century
Logistics Holdings Berhad, Supermax Corporation Berhad,
Kinsteel Berhad, Boon Koon Group Berhad (Chairman),
Impressive Edge Group Berhad, Maxbiz Corporation Berhad
and Seal Polymer Industries Berhad. He also sits on the Board
of several other private limited companies.
He is a member of the Audit, Remuneration and Nomination
Committees of the Company.
Samad does not hold any securities in the Company and
its subsidiaries and none of his family members have direct
or indirect relationship with any director and/or major
shareholder of the Company. He has not entered into any
transaction, whether directly or indirectly, which has a conflict
of interest with the Company and has not been convicted of
any criminal offences within the past 10 years. He attended
five out of seven Board Meetings held during the year.
Pengarah Bebas Bukan Eksekutif sejak 2 November 2001.
Beliau memegang ljazah Sarjana Muda Ekonomi dari Universiti
Malaya dan Sarjana Hal-Ehwal Awam dan Antarabangsa
(MPIA) dari University of Pittsburgh. Beliau memulakan
kerjayanya sebagai Timbalan Setiausaha Kementerian Kerja
Raya pada tahun 1970 dan kemudian sebagai ahli ekonomi
di Unit Perancangan Lebuhraya pada tahun 1973. Mulai 1974,
beliau telah dilantik sebagai Timbalan Pengarah Bahagian
Perkhidmatan di Jabatan Perkhidmatan Awam sehingga tahun
1979. Beliau merupakan bekas Penyelaras Program di Institut
Pentadbiran Awam Negara (INTAN) pada tahun 1981 sehingga
beliau ditukarkan ke Industri Pembangunan Kewangan Berhad,
Malaysia (MIDF) pada tahun 1984. Dalam tahun 1985 pula,
beliau dilantik sebagai Timbalan Setiusaha Kanan Bahagian
Industri Kementerian Perdagangan Antarabangsa dan Industri
(MITI). Beliau merupakan Komisioner Perdagangan ke Vienna,
Austria dari tahun 1989 sehingga 1996. Dari tahun 1996
sehingga 1999, beliau menjadi Pengarah Bahagian Industri
MITI. Pada awal tahun 2000, beliau telah dilantik sebagai
Ketua Pegawai Eksekutif Perbadanan Pembangunan Industri
Kecil dan Sederhana (SMIDEC) sehinggalah persaraan beliau
dari sektor perkhidmatan awam.
Beliau menjadi Pengarah di dalam syarikat-syarikat awam
seperti Century Logistics Holdings Berhad, Supermax
Corporation Berhad, Kinsteel Berhad dan Infortech Alliance
Berhad, Boon Koon Group Berhad (Pengerusi), Impressive Edge
Group Berhad, Maxbiz Corporation Berhad dan Seal Polymer
Industries Berhad. Beliau juga adalah ahli Lembaga beberapa
Beliau adalah ahli Jawatankuasa Audit, Imbuhan dan
Perlantikan Syarikat.
Samad tidak mempunyai sebarang pegangan saham di
dalam Syarikat atau anak syarikat dan tiada di kalangan ahli
keluarga beliau yang mempunyai kaitan secara langsung atau
tidak langsung dengan mana-mana Pengarah dan/atau
pemegang saham utama Syarikat. Beliau tidak pernah terlibat
dengan apa-apa urusniaga sama ada secara langsung
atau tidak langsung, yang mempunyai percanggahan
kepentingan dengan Syarikat dan tidak pernah disabitkan
apa-apa kesalahan jenayah dalam tempoh 10 tahun yang
lalu. Beliau telah menghadiri sebanyak lima daripada tujuh
Mesyuarat Lembaga Pengarah untuk tahun tersebut.
STATEMENT OF CORPORATE
GOVERNANCE
17
18
STATEMENT OF CORPORATE GOVERNANCE
Pursuant to Chapter 15.26 of the Bursa Malaysia Listing Requirements.
The Board of Directors of Ingress Corporation Berhad remains committed in upholding the highest
standards of accountability, transparency and integrity and thus recognises that the practice of good
corporate governance is fundamental to protect and enhance shareholder value and the financial
performance of the Company. To this end, the Board fully supports the recommendations of the
Malaysian Code of Corporate Governance (the “Code”) and in this report, the Board has considered
the manner in which it has applied the Principles of the Code and the extent to which it has complied
with the Best Practices of the Code.
DIRECTORS
Board of Directors - Composition
The Board comprises seven (7) members, of whom four (4) are Directors holding executive office
and three (3) members, including the Chairman, are Independent Non-Executive Directors thereby
bringing objectivity and independence of judgement to the decision making process of the Board.
The Board is in compliance with the Bursa Malaysia Listing Requirements (“Listing Requirements”)
which require that at least two (2) directors or one third (1/3) of the total number of Directors,
whichever is higher, are Independent Directors.
Board Balance
The Company recognises the contribution of Non-Executive Directors as equal Board members to the
development of the Company’s strategy as well as their role in representing the interests of public
shareholders and providing a balanced and independent view of the Board. No individual or group
of individuals dominates the Board’s decision making and the number of directors reflects fairly the
investment of the shareholders. The profiles of the Board members are set out on pages 10 to 16 of
this Annual Report.
Board Responsibilities
The Board retains full and effective control of the Group. This includes responsibility for determining
the Group’s overall strategic direction as well as development and control of the Group. Key matters,
such as approval of annual and quarterly financial results, corporate and financial restructuring,
acquisitions and disposals, major capital expenditures, budgets and long term plans are prerogative
of the Board.
Supply of Information
Directors are provided with the agenda and compilation of board papers prior to Board meetings
to enable Directors to have sufficient time to review the issues for deliberation at Board meetings.
At every Board Meeting, members of senior management make themselves available to brief and
provide information to assist the Board. All Directors have full and unrestricted access of all information
within the Group and to the advice and services of the Company Secretary to ensure Board meeting
procedures are adhered to. The Board has the liberty to seek external independent professional advice
if so required.
Meetings
The Board met seven (7) times during the financial year under review during which it considered and
approved various issues including the quarterly financial results of the Group for announcement to
Bursa Malaysia, corporate announcements, business plan and strategy and also performance of the
Group. Details of the meeting attendance of each Director during the financial year are stated on
page 4.
The Board has an Audit Committee whose terms of reference are in line with the Listing Requirements
and the Code. The terms of reference which outline the Audit Committee’s functions and duties and
the summary of the Audit Committee’s activities are furnished in the Audit Committee Report set out
on pages 26 to 28. Nomination Committee and Remuneration Committee set up in 29 January 2002,
was in line with the best practice of the Code.
Appointments to the Board
Appointments to the Board are recommended by the Nomination Committee to the Board for their
approval. Other responsibilities of the Nomination Committee include making recommendations to
the Board on the appointment of the members of Board Committees, reviewing on annual basis of the
Board structure, size and composition and assessing the effectiveness of the Board, its Committees
and the contribution of each Director.
The Nomination Committee comprises the following members:Dato’ Nasir bin Yusoff - Chairman
Ab Rahim bin Husain
During the financial year ended 31 January 2006, one (1) meeting was held on 22 December 2005.
The Nomination Committee is of the opinion that the present composition of the Board contains the
required skill mix and experience.
Training and Development of Directors
All members of the Board have attended Bursa Malaysia Mandatory Accreditation Programme and
have subsequently attended the required training courses and seminars under the Continuing
Education Programme (CEP). For the year ended 31 January 2006, the Board is pleased to inform that
all Directors have achieved the prescribed CEP points and the programmes attended by Directors
covered the areas such as corporate governance, risk management, financial reporting standards and
investment. The Directors will continue to attend relevent training programmes to further enhance
their skills and knowledge as well as to keep abreast with new development for the furtherance of
their skills.
19
20
Training Programmes, Seminars and Briefings Attended by Directors
As at to date of this Annual Report, some of the Directors had attended the following seminars/
training:No.
Seminar / Training
1.
• Seminar on Goods and Service Tax
2.
• Risk Management Seminar, Role of Internal Audit, Risk Management & Compliance
(Board Responsibilities & BASEL II) Guidelines for Board Members, Directors & Senior
Management of PLCs in Malaysia
3.
• Enhancing Corporate Governance in Mergers & Acquisition
4.
• National Accountant Conference
• Seminar on Goods and Service Tax
5.
Ab Rahim bin Husain
• Malaysian Automotive Industry and AFTA: Are We Moving Forward
• Tenth Asia Pacific Automotive Industry
Roundtable, Different Road Same Destination
6.
Ramli bin Napiah
• Strategic Risk Management Workshop for Board of Directors & Senior Management
7.
• Off-Balance Sheet Items, Offshore Accounts & Derivatives What Can Go Wrong?
The Reality, Best Practices & How Manipulation Can Take Place
• 7th Conference on Status and Outlook of the Malaysian Steel Industry
Re-election
In accordance with the Articles of Association of the Company, one-third of the Directors shall retire
from office at every annual general meeting but shall be eligible for re-election. In line with the Listing
Requirements, the Articles also provide the requirement of all Directors to retire from office once at
least every three (3) years and are entitled to offer themselves for re-election at the Company’s Annual
General Meeting.
Risk Management Executive Committee (RMEC)
RMEC comprises four (4) members whose primary duties and responsibilities include reviewing
key risks affecting the Company and the Group which are identified, assessed and controlled. The
Committee establishes process to mitigate and manage those risks. For the reporting year, RMEC met
several times including those meetings held on ad hoc basis to evaluate risks for new investment.
RMEC endorsement is required prior to tabling any new investment proposals for approval by the
Board.
DIRECTORS’ REMUNERATION
The Remuneration Committee is responsible to review and approve the annual salaries, incentive
arrangements, service arrangements and other employment conditions for the Executive Directors.
The determination of the remuneration of the Non-Executive is a matter for the Board as a whole,
during which the interested directors will abstain from deliberating their own remuneration. Directors’
fees are approved by the shareholders at the Annual General Meeting.
The members of the Remuneration Committee are:Vaseehar Hassan bin Abdul Razack - Chairman
During the financial year ended 31 January 2006, one (1) meeting was held on 6 July 2005.
Directors’ Fees and Remuneration
Details of the remuneration of the Directors of the Company during the financial year ended 31
January 2006 are as follows:Range of Remuneration
Directors
Below RM50,000
RM500,001 - RM550,000
Ab Rahim bin Husain
Ramli bin Napiah
RM750,001 - RM800,000
21
22
Salaries and other emoluments
Fees/Allowances
Bonus
Benefit-in-kind
Total
Executive Directors
RM
Non-Executive Directors
RM
1,948,214
24,000
400,245
120,850
105,250
9,400
2,493,309
114,650
SHAREHOLDERS
Investor Relations and Communication with Shareholders
As part of the Board’s responsibility in developing and implementing an investor relations programme,
regular discussions were held between the Executive Directors and the analysts/investors throughout
the year in addition to the twice yearly Analysts’ and Fund Managers’ Briefings. The two dates were
3 October 2005 and 27 March 2006.
The Group makes prompt and timely announcements via the BURSA LINK on any material
information.
The Annual General Meeting is the principal forum for dialogue with shareholders. Notice of the
Annual General Meeting and Annual Reports are sent out to shareholders at least 21 days before the
date of the meeting as this would give sufficient time for the shareholders to read and review the
annual report to enable them to raise any questions that they may have in relation to the financial
performance and business operation of the Company during the annual general meeting.
The Company‘s website at www.ingresscorp.com.my offers shareholders and investors access to the
latest corporate information.
ACCOUNTABILITY AND AUDIT
Financial Reporting
The Board is committed to ensure that financial statements represent a fair assessment of the
Group’s financial position and prospects in the quarterly announcements made to Bursa Malaysia
and the Annual Reports issued to shareholders. The Audit Committee assists the Board in verification
of information for disclosure to ensure fairness and compliance with standards and regulatory
requirements. The Statement by Directors pursuant to Section 169 (15) of the Companies Act, 1965 is
set out on page 58 of this Annual Report.
Internal Control
The Company’s Internal Control Statement is set out on page 29 of the Annual Report.
Relationship with Auditors
Through the Audit Committee, the Company establishes transparent and appropriate relationship
with the Company’s auditors, both external and internal. The Company also seeks professional
advice to ensure compliance with Malaysia’s accounting standards.
The role of the Audit Committee in relation to the external auditors is provided on page 26 to 27 of
this Annual Report.
STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THE CODE
The Company is committed to uphold the highest standards of corporate governance and strive to
maintain integrity and ethical standards in all business dealings. In pursuant to this commitment, the
Company believes that throughout the financial year and at any time, it is in compliance with the
Code.
This Statement is made in accordance with a resolution of the Board of Directors dated 18 May 2006.
23
24
STATEMENT OF DIRECTORS’ RESPONSIBILITY FOR PREPARING
THE FINANCIAL STATEMENTS
The Directors are required to ensure that financial statements of the Company and the Group for each
financial year are prepared in accordance to the requirements of the applicable approved accounting
standards in Malaysia, the provisions of the Companies Act, 1965 and the Listing Requirements.
The Directors are also responsible in ensuring that annual financial statements of the Company and
the Group reflect a true and fair view of the state of affairs of the Company and the Group.
In the preparation of financial statements, the Directors consider that:•
the Company and the Group adopt appropriate accounting policies and they are consistently
applied;
•
reasonable and prudent judgements and estimates are made;
•
all applicable approved accounting standards in Malaysia are observed; and,
•
proper accounting records are kept so that the financial statements are prepared with reasonable
accuracy.
The Directors have general responsibilities for taking such steps that are reasonably available to them
to safeguard the assets of the Company and the Group in order to prevent and detect fraud and other
irregularities.
AUDIT COMMITTEE
seated
standing, from left to right
CHAIRMAN
MEMBERS
25
26
AUDIT COMMITTEE REPORT
CHAIRMAN
Independent and Non-Executive Director
MEMBERS
Non Independent and Executive Director
Shamsudin @ Samad Kassim
FORMATION OF THE AUDIT COMMITTEE
The Audit Committee was formed on 24 October 2000.
TERMS OF REFERENCE
Duties, Responsibilities and Authority
To review and report the following to the Board of Directors of Ingress Corporation Berhad:1. With regards to the external auditor, their audit plan, their evaluation of the system of internal
controls, their audit report including reports and management letters thereon and the extent of
assistance rendered by the Company officials to them.
2. With regards to the internal audit function, the adequacy of its scope, functions, resources, the
necessary authority to carry out its work, the internal audit programme, processes or investigation
undertaken and whether or not appropriate action is taken on the recommendation of the internal
audit function.
3. The review, appraisal or assessment of the performance of the internal audit function staff,
approval for any appointment or termination of senior staff member of the internal audit function
and keeping abreast of resignations of internal audit members.
4. The quarterly and year end financial statements with emphasis on changes in or implementation
of major accounting policy changes, significant and unusual events and adherence to accounting
standards and other legal requirements.
5. Any related party transaction and conflict of interest situation that may arise within the Company
or Group including any transaction, procedure or course of conduct that raises question of
management integrity.
6. Verification and confirmation on the allocation of share options pursuant to the INGRESS Employee
Share Option Scheme (“INGRESS ESOS”) as being in compliance with the criteria set out in the ByLaws of the INGRESS ESOS.
7. The performance of the external auditors and if in their opinion (supported by grounds) the
external auditor is not suitable for reappointment; their recommendation to nominate a person or
persons as external auditors and any letters of resignation from the external auditors.
8. Any vacancy in the Audit Committee so that the vacancy be filled within 3 months.
TERMS OF REFERENCE (CONTD.)
In performing its functions and duties, the Committee shall:1. Have the authority to investigate any matters within its terms of reference and have the resources
which it needs to do so without any restriction on access to any information pertaining to the
Company.
2. Have direct communication channels with the external auditors and obtain independent
professional or other advice and have meeting with the external auditors without the presence of
any Executive Directors at least once a year.
3. Report to Bursa Malaysia with regard to breaches of Listing Requirements should the Committee
consider that a matter reported to the Board of Directors has not been satisfactorily resolved.
4. Be reviewed by the Board of Directors in term of office and performance of the Committee and
each of its members at least once every 3 years to determine whether the duties are carried out in
accordance with the terms of reference.
MEETINGS
The Committee meets four times annually, or more whenever necessary. Meetings will normally
be attended by the Group Financial Controller, the Head of the Internal Audit Department and a
representative of the external auditor (if required). Heads of operation units or other board members
may also be called upon to attend meetings. Meeting with the external auditors which is not attended
by any Executive Directors is held once a year.
During the year, the Committee met for five times for the following purposes:a. To determine that established policies, procedures and guidelines, operating and internal
accounting controls are adequate, functioning, effective and are complied with in promoting
efficiency and proper conduct of the Company’s business.
b. To review the draft quarterly financial statements and recommending the same to be considered
and approved by the Board of Directors for the purpose of making announcements to the Bursa
Malaysia.
c.
To review the year end audited financial statements and the external auditors’ management letter
and management response thereon.
d. To discuss with external auditors the audit plan and scope for the year as well as the audit
procedures to be utilised.
e. To review the Internal Audit Department’s scope of work, adequacy of resources and coordination
with the external auditors.
f.
To review the reports from the internal audit department and following up on corrective actions
taken on issues raised.
27
28
AUDIT COMMITTEE REPORT
DETAILS OF ATTENDANCE
Member
Shamsudin @ Samad Kassim
Attendance
5/5
2/5
5/5
3/5
INTERNAL AUDIT FUNCTIONS
The Internal Audit functions of the Company and the Group are undertaken by its Internal Audit
Department, which reports directly to the Audit Committee.
The main role of the Internal Audit Department is to review and assess the effectiveness of the internal
control systems and assisting the Group in its risk management.
During the year, the Audit Committee received ten reports on the assessment of the Group’s internal
control from the Internal Audit Department.
STATEMENT OF INTERNAL CONTROL
Responsibility
The Board acknowledges that it is responsible for the Group’s system of internal controls and for
reviewing the adequacy and integrity of the said system. However, such a system is designed to
manage rather then eliminate the risk of failure to achieve business objectives. Therefore, such a
system can only provide reasonable assurance against material misstatements or losses.
Key elements of the Group’s system of internal controls include the following:•
An ongoing process for identifying, evaluating and managing significant risks faced by the Group,
which has been in place for the year under review and reviewed by the Board.
•
A clear documentation of the risk management principles and procedures which have been
disseminated to all key employees. This document, inter alia, describes the Board’s position towards
risks and processes in the attainment of the Group’s business objectives. A risk management
process is in place to ensure that all key risks within the Group are being clearly identified within
the framework of its line of business and key functional activities. The Group has in place, a Risk
Management Executive Committee which oversees the risk management process.
•
The Board regularly reviews the performance of the Group in its meetings and approves any
changes in policies that may affect the Group. Adequate and timely information, covering
financial performance and key business indicators, are being provided by the management to
the Board.
•
A comprehensive annual budget which includes business plans are prepared by all business
units and approved by the Board. Operating results are being closely monitored by management
against budget and key performance indicators. All major variances and critical operational issues
are being followed up with actions taken thereon. Forecasts are revised on a quarterly basis after
taking into account significant business factors.
•
A framework for the Group has been established to handle matters relating to investments,
acquisition or disposal of business.
•
The Group’s Internal Audit Department which reports directly to the Audit Committee carries
out regular reviews of business processes to assess the effectiveness of internal controls and
highlighting significant risks impacting the Group.
•
The Audit Committee regularly reviews and discusses with key management on the action taken
on issues brought up by the Internal Audit Department and the external Auditors. During the
year, ten of such reports were received and reviewed by the Committee.
The Board does not review the internal control system of its associated company, as the Board does
not have any direct control over the operations. This notwithstanding, the Group’s interests are served
through representation on the board of the associated company and receipt and review of periodic
management financial statements and enquiries thereon. These representations also provide the
Board with information for timely decision making on the continuity of the Group’s investments
based on the performance of the associated company.
Internal control weaknesses identified during the period had been addressed and none of these
weaknesses have resulted in any material losses, contingencies that would require disclosure in the
Group Annual Report.
This statement is made in accordance with the resolution of the Board dated 18 May 2006.
29
30
ADDITIONAL COMPLIANCE INFORMATION
In conformance with the Bursa Malaysia Listing Requirements the following information is provided:1. Non-Audit Fees
The amount of non-audit fees paid and payable to the external auditors by the Company and its
subsidiaries for the financial year ended 31 January 2006 was RM14,000.
2. Material Contracts
Save as disclosed hereunder, there are no contracts which are or may be material (not being
contracts entered into in the ordinary course of business) which have been entered into by the
Company and its subsidiary companies within two (2) years preceding this Annual Report:(i)
Shareholders Agreement dated 5 November 2004 between Science-Tech Solutions Sdn Bhd
and Ingress Engineering Sdn Bhd (IESB) in respect of the increase of issued and paid up
capital of Ingress Environmental Sdn Bhd for the purpose of undertaking a joint venture in
the business of engineering services in automatic storage tank cleaning related to oil and
gas industry.
(ii)
Shareholders Agreement dated 8 November 2004 between Dyna Segmen Sdn Bhd and IESB
in respect of incorporation of joint expertise and resources in Ingress Fabricators Sdn Bhd
related to oil and gas industry.
(iii) Shares Sale Agreement between IESB and Asia Pacific Wing Sdn Bhd (APWSB) dated 28 June
2005 in respect of acquisition by IESB of APWSB’s shares in PT Bina Selaras Tradindo.
(iv) Shares Sale Agreement between IESB and Fauzi Afrianto Rifai (FAR) dated 28 June 2005 in
respect of acquisition by IESB of APWSB’s shares in PT Bina Selaras Tradindo.
(v)
Shareholders Agreement between APWSB, FAR and IESB dated 28 June 2005 in respect of
equity structure and shareholding in PT Bina Selaras Tradindo.
(vi) Joint Venture Agreement between Ingress Environmental Sdn Bhd and PT Amdac Indonesia
dated 30 November 2005 in respect of incorporation of joint venture expertise and resources
in PT Ingress Amdac Environmental.
(vii) Memorandum of Understanding between Ingress Corporation Berhad and Maju Nusa Sdn
Bhd dated 12 January 2006 in respect of understanding in relation to provision of internet
protocol solutions provider in telecommunication industry.
3. Recurrent Related Party Transactions (RRPT) Statement
The details of the RRPT entered into by the Company and/or its subsidiaries with related parties
during the financial year under review are set out below:
Company
Related Party
Nature of
Aggregate value
RRPT
of Transactions
Transactions for the financial
year ended
31 January 2006
RM
Relationship
IAV
KK
Purchase of raw
materials
4,040,055
KK holds 20.2%
in IAV
IAV
KK
Payment of
royalty
1,754,885
KK holds 20.2%
in IAV
IAV
MC
Purchase of
materials
5,595,960
MC holds 6.1%
in IAV
IESB
IAV
Management
2,702,737
IESB holds 62.5%
in IAV
ITSB
PMSB
Sales of
materials
97,765,644 Perodua holds 30%
in ITSB
Perodua holds 49%
in PMSB
IPSB
KK
Payment of
royalty
13,861
KK holds 10%
in IPSB
MDSB
BB Rail
Provision of
engineering
services by MDSB
to BB Rail
521,856
MDSB holds 49%
in BB Rail
PT IMV
KK
Payment of
royalty
134,823
KK holds 10%
in IPSB
IPSB holds 80%
in PT IMV
Total
112,654,821
31
32
ADDITIONAL COMPLIANCE INFORMATION
Note:
BB Rail
IAV
IESB
ITSB
KK
MC
MDSB
PMSB
Perodua
PT IMV
-
Balfour Beatty Rail Sdn Bhd
Ingress Autoventures Co., Ltd.
Ingress Engineering Sdn Bhd
Ingress Technologies Sdn Bhd
Katayama Kogyo Co., Ltd.
Mitsubishi Corporation
Multi Discovery Sdn Bhd
Perodua Manufacturing Sdn Bhd
Perusahaan Otomobil Kedua Sdn Bhd
PT Ingress Malindo Ventures
4. Revaluation Policy
Revaluations are made at least once in every three years based on a valuation by an independent
valuer on an open market value basis. Any revaluation increase is credited to equity as a revaluation
surplus, except to the extent that it reverses a revaluation decrease for the same asset previously
recognised as an expense, in which case the increase is credited to the income statement to the
extent of the decrease previously charged. A revaluation decrease is first offset against an increase
on earlier valuation in respect of the same asset and is thereafter recognised as an expense. Upon
the disposal of revalued assets, the attributable revaluation surplus remaining in the revaluation
reserve is transferred to retained profits.
5. Sanctions
During the financial year, there were no sanctions nor penalties imposed on the Company and the
Group, Directors or Management by the relevant regulatory bodies.
6. Options, Warrants or Convertible Securities
a) The Company established an Employee Share Option Scheme (“ESOS”) for eligible employees
including executive directors of the Company and its subsidiary companies whereby the
establishment of the ESOS was duly approved by the Shareholders of the Company at the
Extraordinary General Meeting held on 11 February 2004. Subject to the ESOS By-laws, the
aggregate maximum number of new shares offered to eligible employees is determined at
the discretion of the ESOS Committee taking into consideration the position, performance,
seniority and length of service of the employee in the Group. Details of the ESOS is disclosed
in page 56 and 95. There is no option exercised by eligible employees so far.
b) The Company has not issued any warrants or convertible securities exercised for the financial
year ended 31 January 2006.
CHAIRMAN’S STATEMENT
/ PERUTUSAN PENGERUSI
Dato’ Nasir bin Yusoff • Chairman / Pengerusi
33
34
CHAIRMAN’S STATEMENT / PERUTUSAN PENGERUSI
Dear Shareholders:
Pemegang saham yang
On behalf of the Board of
dihargai, bagi pihak Lembaga
Directors, I am delighted
Pengarah, saya dengan
to report another year of good
sukacitanya melaporkan
financial results for Ingress
keputusan kewangan Syarikat-
Group of Companies.
Syarikat Kumpulan Ingress
yang sekali lagi menunjukkan
This year, the Group achieved
prestasi yang baik.
its highest ever revenue of
RM289.7 million compared to
Bagi tahun ini, Kumpulan
RM213.1 million in the previous
mencatatkan perolehan paling
year. Profit after tax (PAT)
tinggi iaitu sebanyak RM289.7
recorded for the year was
juta berbanding RM213.1
RM14.9 million (FY2005 -
juta pada tahun sebelumnya.
RM15.0 million).
Keuntungan selepas cukai pula
sebanyak RM14.9 juta
OPERATIONS REVIEW
Automotive Components Manufacturing
(ACM) Malaysia
Overall, the Malaysian automotive industry
registered a growth of 13.0% in the calendar
year 2005 on the back of positive consumer
sentiments, attractive financing schemes
and the introduction of new models coupled
with aggressive sales campaigns. Total
industry volume (TIV) surged to an all time
high of 551,042 units, compared to 487,605
units in 2004. While the total sales volume
for passenger cars rose from 380,568 units
in 2004 to 400,835 units in 2005, the overall
market share for the passenger car market,
however, declined by 5.0% from 78.0% of
TIV in 2004 to 73.0% in 2005.
(Tahun Kewangan 2005 RM15.0 juta).
ULASAN OPERASI
Pengilangan Komponen Automotif (ACM)
Malaysia
Secara keseluruhannya, industri automotif
Malaysia mencatatkan pertumbuhan sebanyak
13.0% pada tahun 2005 hasil dari sentimen
pengguna yang positif, skim pinjaman yang
menarik dan pengenalan model-model kereta
baru di samping kempen jualan yang agresif.
Jumlah
jualan
industri
(TIV)
meningkat
ke paras tertinggi iaitu sebanyak 551,042
unit, berbanding 487,605 unit pada tahun
2004.
Walaupun jumlah jualan bagi kereta
penumpang meningkat dari 380,568 unit pada
tahun 2004 kepada 400,835 unit pada 2005,
peratusan pasaran bagi kereta penumpang
keseluruhannya menurun sebanyak 5.0% iaitu
dari 78.0% TIV pada tahun 2004 kepada 73.0%
Growth in sales volume of passenger
cars was led by the national car segment
registering 305,763 units or 76.3% of
total passenger car sales, down 0.6% from
2004. Correspondingly, the non-national
passenger car segment increased by 0.6%
with sales in 2005 rising to 95,072 units or
23.7% of total passenger car sales.
For the financial year 2006 (FY2006),
our ACM Malaysia Division registered a
significant growth of 50% in revenue. This
favourable increase in revenue was mainly
due to new products introduced during the
year, and they are door related parts, sash
and moulding for Myvi and Savvy as well as
the commencement of supply of mouldings
for Toyota. In addition, the year also saw the
full year contribution from Kelisa door which
commenced supply in the last quarter of
previous financial year (FY2005).
In our continuing effort to expand our
product lines and customer base, we are
pleased to inform that Naza became the
latest addition to our list of customers. In
February 2006, Ingress commenced the
supply of bonnet assembly for the new
Naza Sutera model.
ACM Thailand
Thailand automotive industry registered a
total TIV of 703,000 units for 2005 to register
a growth of 12% against the previous year’s
TIV of 626,026. In terms of total production,
which combines the TIV and export market,
the growth recorded was 21% with a total of
1.1 million units in comparison to 928,000
units for previous year.
Another milestone was reached during
the year for ACM Thailand with the
completion of our third plant located in
Ayuthaya, north of Bangkok, together with
the commencement of its operations in
April 2005. This plant is dedicated to the
production needs of Honda product lines
as Ayutthaya plant is in close proximity to
the Honda manufacturing facilities.
35
Pertumbuhan jumlah jualan bagi kereta
penumpang didorong oleh segmen kereta
nasional yang mencatatkan 305,763 unit atau
76.3% dari jumlah jualan kereta penumpang,
menurun sebanyak 0.6% dari tahun 2004.
Dalam tempoh yang sama, segmen bukan
kereta nasional meningkat 0.6% dari segi
jualan pada tahun 2005 iaitu sebanyak 95,072
unit atau 23.7% dari jumlah jualan kereta
penumpang.
menyaksikan sumbangan penuh dari pintu
Kelisa, di mana bekalan bermula pada suku
akhir tahun kewangan sebelumnya (TK2005).
Untuk tahun kewangan 2006 (TK2006),
Bahagian
ACM
Malaysia
kami
mencatatkan
pertumbuhan
perolehan
yang memberangsangkan sebanyak 50%.
Peningkatan yang memberangsangkan ini
adalah kerana pengenalan produk-produk
baru dalam tahun tersebut iaitu komponenkomponen yang berkaitan dengan pintu,
bingkai dan `moulding’ bagi Myvi dan Savvy
serta bermulanya bekalan `moulding’ bagi
Toyota. Selain dari itu, tahun kewangan ini juga
ACM Thailand
Dalam usaha berterusan untuk meluaskan
jumlah produk dan pelanggan, sukacita
dimaklumkan bahawa Naza telah menjadi
pelanggan kami yang terbaru. Bermula pada
Februari 2006 Ingress telah mula membekalkan
bonet bagi model Naza Sutera yang baru.
Industri automotif Thailand telah mencatatkan
jumlah TIV sebanyak 703,000 unit pada tahun
2005 dengan pertumbuhan 12% berbanding TIV
tahun sebelumnya iaitu 626,026 unit. Dari segi
jumlah pengeluaran, yang merangkumi TIV dan
pasaran ekspot, menunjukkan pertumbuhan
sebanyak 21% dengan jumlah 1.1 juta unit
berbanding 928,000 unit sebelumnya.
Satu lagi pencapaian bagi ACM Thailand pada
tahun ini ialah dengan bermulanya operasi
kilang yang ketiga kami di Ayutthaya yang
terletak di utara Bangkok pada penghujung
April 2005. Kilang tersebut mengendalikan
pengeluaran rangkaian produk-produk Honda.
Keputusan strategik memindahkan operasi
produk-produk Honda keluar dari kilang di
Rayong adalah disebabkan oleh peningkatan
dari produk-produk model lain. Kilang kami di
Ayutthaya terletak berhampiran dengan kilang
Honda.
36
This strategic decision to move the Honda
lines out of our two (2) plants in Rayong was
to meet the growing volume of the other
models.
For the financial year under review, a total
of 839,000 car sets were produced by our
Thailand operations, in comparison to
707,000 car sets previously, representing
an increase of 19%. During the year, we
commenced the production of moulding
and sash for Mitsubishi Triton (the
replacement model for Mitsubishi Strada/
Storm pick-up truck) and sash for the new
Honda Civic model. In addition to the
new products, virtually all of our product
lines in Thailand recorded improvements,
except for the production of mouldings for
Mitsubishi Strada/Storm as market reacted
to the introduction of its replacement Triton
model.
ACM Indonesia
TIV for Indonesia in the calendar year
2005 recorded a figure of 533,851 units,
an increase of 10.5% compared to the
previous year. This figure, however, did not
surpass the 550,000 units as targeted by
the Association of Indonesian Automotive
Manufacturers (Gaikindo). The demand for
vehicles plummeted after the hikes in fuel
prices and interests in Indonesia towards
end 2005 .
The financial year was the second full year
of operations for our ACM Indonesia. Even
though the whole operation has yet to
record its maiden profit, ACM Indonesia
recorded better performance compared to
the previous year mainly due to the full year
impact of the productions of Mitsubishi
moulding and Suzuki sash. In addition,
during the year ACM Indonesia managed
to secure additional contracts, namely the
supply of mouldings and sash for Suzuki
Futura as well mouldings and run channel
for Mitsubishi Canter.
Engineering, Procurement, Construction
and Commissioning (EPCC)
In our continuous efforts to improve and
streamline our non-automotive operating
divisions, namely Power Engineering
and Railway Electrification together with
the Oil & Gas units, we have grouped
them into the Engineering, Procurement,
Construction and Commissioning (EPCC)
Division. This is being done in recognition
of the main common attributes of these
operations, which mainly involve project
management core competencies. The
group acknowledges its capabilities in this
area given our long time involvement in the
power engineering and rail electrification
industries.
During the year, our Power Engineering
and Rail Electrification
Division (PER)
substantially completed the Southern
overhead transmission line projects as well
as the substations installation in Selangor.
These two (2) projects have been previously
delayed beyond our control and no further
delays are expected given the significant
progress made to date. In addition, we
are also pleased to inform that during the
year, we secured a RM25 million contract
from Toshiba of Japan for the 275kV Gas
Insulated Switchgear for the Tuanku Jaafar
Power Station in Port Dickson.
In relation to the Rawang-Ipoh double
tracking rail electrification project, the
Government’s recent step on the civil
portion resulted in a new setting of
completion date. With this latest positive
development we expect the project to
proceed more smoothly and we do not
expect any major delays.
In our diversification effort, we ventured
into oil & gas businesses. FY2006 was its first
full year of operations. The Group managed
to complete its engineering and fabrication
projects and the tank cleaning projects
in Indonesia. As start-up businesses, their
Pada tahun kewangan ini, 839,000 set kereta
telah dikeluarkan dari operasi kami di Thailand,
berbanding 707,000 set kereta sebelumnya
iaitu peningkatan sebanyak 19%. Pada tahun
yang dilaporkan, kami telah memulakan
pengeluaran bingkai bagi Mitsubishi Triton
(model ganti untuk trak pick-up Mitsubishi
Strada/Storm) dan bingkai bagi model baru
Honda Civic. Selain dari produk-produk itu,
hampir kesemua rangkaian produk kami di
Thailand mencatatkan peningkatan, kecuali
pengeluaran `moulding’ bagi Mitsubishi
Strada/Storm akibat reaksi pasaran terhadap
pengenalan model baru Triton.
ACM Indonesia
Pada tahun 2005, Jumlah Pengeluaran
Industri (TIV) bagi Indonesia mencatatkan
angka 533,851 unit, pertambahan sebanyak
10.5% berbanding tahun sebelumnya. Walau
bagaimanapun, angka ini tidak melepasi
550,000 unit yang disasarkan oleh Persatuan
Pengeluar-pengeluar Otomotif Indonesia
(Gaikindo).
Permintaan bagi kenderaan
menjunam disebabkan oleh kenaikan harga
minyak dan kadar faedah di Indonesia pada
penghujung tahun 2005.
ACM Indonesia telah beroperasi genap dua
(2) tahun. Walaupun operasi belum mencapai
keuntungan, ACM Indonesia mencatatkan
prestasi yang lebih baik berbanding tahun
sebelumnya
disebabkan
pengeluaran
sepanjang tahun ‘moulding’ Mitsubishi dan
bingkai Suzuki. Di samping itu, ACM Indonesia
berjaya mendapatkan kontrak tambahan
untuk membekal ‘moulding’ dan bingkai
untuk Suzuki Futura serta juga ‘moulding’ dan
‘run channel’ untuk Mitsubishi Canter.
Kejuruteraan, Perolehan, Pembinaan dan
‘Commissioning’ (EPCC)
Usaha yang berterusan bagi memperbaiki dan
menyusun operasi bahagian bukan automotif
kami, iaitu Bahagian ‘Power Engineering and
Rail Electrification’ (PER) dan juga Unit ‘Oil
and Gas’ (O&G), kami telah mengabungkan
kesemuanya menjadi Bahagian EPCC
disebabkan
kedua-duanya
mempunyai
persamaan di dalam bidang pengurusan
projek.
Sepanjang tahun ini, Bahagian PER
telah hampir menyiapkan projek talian
penghantaran atas di Selatan Semenanjung
dan pemasangan pencawang di Selangor.
Kedua-dua projek ini dahulunya telah
tertangguh diluar kawalan kami dan
adalah dijangka tiada lagi penangguhan
memandangkan kemajuan pesat setakat ini.
Seterusnya, kami juga ingin memaklumkan
kami telah menerima kontrak sejumlah RM25
juta daripada Toshiba untuk pembekalan
‘Switchgear’ 275kV untuk Stesen Janakuasa
Tuanku Ja’afar di Port Dickson.
Berhubung dengan projek Landasan Elektrik
Berkembar Rawang-Ipoh, tindakan Kerajaan
terhadap kerja-kerja sivil menyebabkan
lanjutan tarikh tamat tempoh kontrak.
Dengan perkembangan yang positif ini, kami
menjangkakan projek ini akan berjalan dengan
lancar tanpa sebarang penangguhan.
Dalam usaha mempelbagaikan perniagaan,
syarikat kami telah memasuki bidang O&G.
Tahun kewangan 2006 merupakan tahun unit
O&G beroperasi sepenuhnya. Kumpulan telah
berjaya menyiapkan projek kejuruteraan dan
fabrikasi dan juga projek pembersihan tangki
minyak di Indonesia. Pada tahap permulaan,
pencapaiannya adalah seperti dijangka bagi
syarikat yang baru mula beroperasi.
Prestasi Kewangan
Dalam tahun kewangan yang dilaporkan,
Kumpulan Ingress mencatat keuntungan
selepas cukai sebanyak RM14.9 juta dengan
perolehan sebanyak RM289.7 juta. Bahagian
ACM merupakan penyumbang terbesar dari
jumlah perolehan Kumpulan iaitu sebanyak
83%.
Dari segi perolehan, sukacita kami melaporkan
bahawa ini adalah tahun kedua berturutturut Kumpulan mencatatkan perolehan
yang baik. Perolehan meningkat 36% dari
RM213.2 juta pada tahun sebelumnya.
Peningkatan perolehan dicapai oleh semua
Bahagian terutamanya dari Bahagian ACM
yang mencatatkan pertumbuhan perolehan
keseluruhan sebanyak 39%, yang disumbang
oleh ACM Malaysia 50% dan ACM Thailand
20%.
Keuntungan selepas cukai turun kepada
RM14.9 juta dari RM15.0 juta tahun
sebelumnya meskipun mencatat peningkatan
dari segi perolehan. Ia disebabkan oleh kos
permulaan bagi produk-produk baru seperti
Mitsubishi Triton dan Honda Civic di Thailand
dan Perodua Myvi di Malaysia. Juga disebabkan
oleh kos pembinaan kilang dan perpindahan ke
lokasi baru di Ayutthaya.
Dividen
Dividen bebas cukai pertama dan terakhir
sebanyak 5 sen sesaham bagi TK2005
berjumlah RM3.8 juta telah dibayar pada
10 Ogos 2005. Dividen bebas cukai interim
sebanyak 3 sen sesaham bagi TK2006
berjumlah RM2.3 juta telah diisytihar dan
dibayar pada 27 Januari 2006.
37
38
performances were as expected given the
start-up costs.
Financial Performance
The financial year under review saw the
Ingress Group achieved PAT of RM14.9
million on the back of RM289.7 million in
revenue. The ACM Division remains as the
most significant division with 83% share of
the total revenue of the Group.
In terms of revenue, we are pleased to
report that this was the second consecutive
financial years that the Group achieved
record level of revenues. Revenue increased
by 36% from RM213.2 million previously.
The increase in revenue was achieved by
all operating divisions but mainly from the
ACM Division which recorded an overall
growth of 39% in revenue, contributed by
ACM Malaysia and Thailand of 50% and 20%
respectively.
For PAT, it remained flat despite the record
level of revenue. PAT dropped marginally
to RM14.9 million from RM15.0 million
previously. This was mainly due to the startup costs associated with the new products
such as Mitsubishi Triton and Honda Civic,
in Thailand and Perodua Myvi in Malaysia.
There was also the one-time relocation
and set-up costs of the new factory in
Ayutthaya.
Dividends
The first and final tax exempt dividend of 5
sen per share in respect of FY2005 totalling
RM3.8 million was paid on 10 August 2005.
An interim tax exempt dividend of 3 sen
per share in respect of FY2006 totalling
RM2.3 million was declared and paid on 27
January 2006.
The Board of Directors is pleased to
recommend a final ordinary tax exempt
dividend of 4 sen per share in respect of
the financial year ended 31 January 2006,
subject to the approval of the shareholders
at the forthcoming Annual General
Meeting.
PROSPECTS AND OUTLOOK
ACM Malaysia
In March 2006, the Ministry of Finance
announced the National Automotive
Policy (NAP). Essentially, the NAP gave a
firm direction of transforming Malaysia
into a regional automotive hub. The NAP
has greatly streamlined the duty structure
resulting in a reduction of most car prices,
especially the passenger models.
Whilst the NAP means lower-priced cars,
higher interest rates and the increase in
fuel prices may dampen the growth of the
automotive industry. Along this line, for the
calendar year 2006, MAA forecasts a modest
3.0% growth in volume for 2006 to 565,000
units
For the coming financial year, we expect
the demand for Perodua Myvi to continue
and some excitement will be created for
the impending introduction of Proton’s
Satria replacement model which Ingress
will be involved. This will be significant to
the results of ACM Malaysia in the coming
financial year due to the full year impact of
Perodua Myvi in FY2007 as well as for the
introduction of the new Proton model.
Another milestone was also reached during
the year which will have a significant impact
for the Group in the future. In February
2006, Ingress was officially appointed as the
latest authorised distributor of BMW cars
in Malaysia. We have already earmarked a
location nearby Mutiara Damansara for the
construction of Ingress’ 4S centre. The centre
is scheduled to be operational in 2007.
Thailand
For the calendar year 2006, Thailand’s
production for domestic and export
market is estimated to reach 1.2 million,
another 10% improvement from the
previous year. For the domestic market,
TIV is expected to reach 735,000 car sets
for a 5% increase in car sets. Exports are
expected to continue to be the main
driving factor for the Thai automotive
industry with an expected 18% to 522,000
units in 2006.
Accordingly, we expect another good year
in terms of production volumes for ACM
Thailand. However, we expect most of the
earlier models of Mitsubishi and Ford/Mazda
to encounter reduction. Nevertheless, the
Group expects substantial increase in volume
from the recent models introduced in FY2006,
such as the Mitusbishi Triton and the new
Honda Civic as well from the rise in volume
for the existing Isuzu model.
Accordingly, we also expect substantial
improvement in our volumes for the
coming year especially from Honda. With
this, ACM Thailand commenced in February
2006 the construction of its fourth plant in
Ayutthaya to meet the substantial demand
from Honda. The extension to the Ayutthaya
plant is expected to be completed and fully
operational in July 2006.
Indonesia
For the calendar year 2006, industry players
expect a contraction in TIV for Indonesia of
around 18%. This is the direct result of the
fuel prices increase as well as the continuing
high interest rates.
Against these background, we expect the
existing model of Mitsubishi to experience
reduction in volume. On a positive note,
the supply of components for a new
Mitsubishi Canter which will commence
Lembaga Pengarah dengan sukacitanya
mencadangkan dividen bebas cukai terakhir
sebanyak 4 sen sesaham bagi tahun kewangan
berakhir 31 Januari 2006, tertakluk kepada
kelulusan pemegang saham di Mesyuarat
Agung Tahunan yang akan datang.
39
sebelumnya. Bagi pasaran tempatan, TIV
dijangka mencapai 735,000 set kereta yakni
peningkatan sederhana sebanyak 5%. Eksport
dijangka terus menjadi daya penggerak utama
bagi industri automotif Thailand dengan
jangkaan peningkatan sebanyak 18% kepada
522,000 unit pada 2006.
TINJAUAN DAN PROSPEK
ACM Malaysia
Pada bulan Mac 2006, Kementerian
Kewangan telah mengumumkan Dasar
Automotif Nasional (NAP). Pada dasarnya,
NAP menunjukkan hala tuju yang jelas untuk
menjadikan Malaysia sebagai pusat automotif
serantau. NAP telah menyusun semula struktur
duti yang mengakibatkan pengurangan harga
kebanyakan kereta, terutamanya model kereta
penumpang.
Seterusnya, kami menjangka kejayaan
tahun berikutnya terutama dari segi jumlah
pengeluaran bagi ACM Thailand. Walau
bagaimanapun, kami juga menjangkakan
kebanyakan model lama Mitsubishi dan Ford/
Mazda akan mengalami penurunan. Namun
Walaupun NAP menyebabkan penurunan
harga kereta, namun kadar faedah yang lebih
tinggi dan kenaikan harga minyak mungkin
memperlahankan pertumbuhan industri
automotif. Sehubungan itu, bagi tahun 2006,
MAA menjangka pertumbuhan sederhana
3.0% iaitu sebanyak 565,000 unit.
Bagi tahun kewangan yang akan datang, kami
menjangkakan permintaan terhadap Perodua
Myvi akan terus meningkat dan pasaran lebih
menarik dengan pengenalan model ganti bagi
Proton Satria di mana Ingress akan terlibat
sama. Impak Perodua Myvi pada TK2007 serta
juga pengenalan model Proton yang baru akan
membawa hasil yang bermakna bagi ACM
Malaysia untuk tahun kewangan akan datang.
Pada Februari 2006, Ingress telah dilantik secara
rasminya sebagai pengedar sah terbaru kereta
BMW di Malaysia. Kami telah mengenalpasti
lokasi berdekatan Mutiara Damansara untuk
pembinaan pusat 4S Ingress. Pusat ini dijangka
beroperasi pada tahun 2007.
Thailand
Pada tahun 2006, pengeluaran untuk pasaran
domestik dan eksport dijangka mencapai
1.2 juta, yakni peningkatan 10% dari tahun
begitu, ia akan diimbangi dengan model-model
yang akan diperkenalkan pada TK2006, seperti
Mitsubishi Triton dan Honda Civic yang baru
serta model Isuzu yang sedia ada.
Pada masa yang sama, kami juga
menjangkakan peningkatan yang banyak
pada tahun akan datang terutamanya dari
Honda. Dengan ini, ACM Thailand sedang
membina kilang ke empat (4) di Ayutthaya
untuk menampung permintaan dari Honda.
Pembinaan kilang tersebut dijangka siap dan
akan beroperasi sepenuhnya pada Julai 2006.
Indonesia
Bagi tahun 2006, industri automotif di
Indonesia
dijangka
akan
mengalami
pengurangan TIV sebanyak 18%. Ini adalah
akibat daripada kenaikan harga minyak dan
juga kenaikan kadar faedah yang tinggi.
Kami menjangka permintaan bagi model
Mitsubishi yang sedia ada akan mengalami
penurunan . Dari sudut positif pula, pembekalan
komponen bagi Mitsubishi Canter baru yang
akan mula dikeluarkan pada penghujung
TK2007 akan memberi kesan positif kepada
seluruh operasi ACM Indonesia. Selain dari itu,
produk bingkai Suzuki yang sedia ada dijangka
akan meningkat. Seterusnya, pembekalan
bingkai baru untuk Suzuki Futura yang
akan diperkenalkan pada TK2007 mampu
menyumbang secara positif kepada ACM
Indonesia.
EPCC
Aktiviti Bahagian PER akan bertumpu pada
projek pencawang dan talian penghantaran
atas. Walaubagaimanapun, kumpulan akan
terus mencari peluang projek-projek yang
berkaitan dengan kepakarannya.
40
production at the end of FY2007 will have a
positive affect to the whole ACM Indonesia
operations. In addition, the existing Suzuki
sash product is expected to increase in
volume. Furthermore , the new sash supply
for Suzuki Futura to be introduced during
FY2007, would contribute positively to ACM
Indonesia.
EPCC
PER main activities will still be focused on
substation and transmission line projects.
Having said that, however, the Group is
continuously looking at other types of
related projects in which we can utilise our
expertise.
In relation to the Rawang-Ipoh double
tracking rail electrification project with the
extension of time given, Ingress expects the
project to proceed smoothly with no further
disruption.
For the growing oil and gas units, we expect
improvements in their performance. In our
automatic tank-cleaning services, we have
one of the latest available technologies and
coupled with good prospects of the oil and
gas industry, we expect better performance
in the future.
CONCLUSION
In summary, it was a very good year for
the Group especially for ACM Malaysia
and ACM Thailand. In the coming financial
year, we look forward to another good
year for our ACM operations both domestic
and international. We expect significant
improvement from our EPCC operations.
ACKNOWLEDGEMENT
On behalf of the Board of Directors, I would
like to express my sincere appreciation and
admiration to our industry leaders and
business associates particularly in Malaysia,
Thailand and Indonesia for their confidence
and trust in us. My special thanks to the
staff and management for their continuos
commitment and contribution. To our
shareholders, we wish to put on record our
heartfelt appreciation for your faith in us
and we will continue to hold you in high
regards.
I also take this opportunity to thank the
members of the Board for their dedication
and untiring effort to build Ingress to what
it is today.
Dato’ Nasir bin Yusoff
Chairman
Berkaitan projek Landasan Elektrik Berkembar
Rawang-Ipoh, dengan pelantikan kontraktor
sivil yang baru dan tambahan masa yang
diberikan, Ingress menjangka projek tersebut
akan berjalan lebih lancar tanpa sebarang
masalah.
Bagi unit O&G, kami menjangka peningkatan
di dalam operasi. Dalam perkhidmatan
pembersihan
tangki
automatik,
kami
mempunyai salah-satu teknologi terkini
dan di samping potensi yang baik, kami
menjangkakan prestasi yang lebih baik pada
masa akan datang.
dan kepercayaan mereka terhadap kami.
Saya juga ingin mengucapkan terima kasih
kepada pengurusan dan kakitangan di atas
komitmen dan sumbangan berterusan mereka.
Kepada para pemegang saham, kami ingin
merakamkan penghargaan setulus ikhlas kami
kerana kepercayaan anda terhadap kami dan
kami akan terus menyanjung tinggi anda.
Saya juga mengambil kesempatan ini untuk
mengucapkan terima kasih kepada Lembaga
Pengarah kerana kesungguhan dan usaha
gigih mereka untuk membina Ingress sehingga
mencapai kejayaan yang dinikmatinya hari ini.
KESIMPULAN
Secara keseluruhannya, ia merupakan tahun
yang baik bagi Kumpulan terutamanya
bagi ACM Malaysia dan ACM Thailand.
Pada tahun kewangan akan datang kami
menjangkakan peningkatan yang lebih banyak
bagi operasi ACM kami di peringkat domestik
dan antarabangsa. Kami juga menjangka
peningkatan di Bahagian EPCC.
PENGHARGAAN
Bagi pihak Lembaga Pengarah, saya ingin
merakamkan setinggi-tinggi penghargaan
kepada tonggak industri dan rakanrakan perniagaan khususnya di Malaysia,
Thailand dan Indonesia kerana keyakinan
Pengerusi
41
42
CORPORATE OFFICE AND SUBSIDIARIES
INGRESS CORPORATION
BERHAD
(490799-K)
Lot 1M, 1st Floor, No. 2, Tasik Ampang, Jalan Hulu Kelang,
68000 Ampang, Selangor, Malaysia.
Tel: 03-4252 9696 Fax: 03-4252 9393 E-mail: investordesk@ingresscorp.com.my
AUTOMOTIVE
Component Manufacturing
INGRESS ENGINEERING
SDN BHD
PT 2475-2476, Kawasan Perindustrian Nilai, P.O. Box 45, 71807 Nilai,
Negeri Sembilan, Malaysia.
Tel: 06-799 5599 Fax: 06-799 5597 / 8
E-mail: investordesk@ingresscorp.com.my
INGRESS PRECISION
SDN BHD
PT 2475-2476, Kawasan Perindustrian Nilai, P.O. Box 45, 71807 Nilai,
Negeri Sembilan, Malaysia.
Tel: 06-799 5599 Fax: 06-799 5597 / 8
E-mail: investordesk@ingresscorp.com.my
INGRESS TECHNOLOGIES
SDN BHD
Lot 11, Jalan Jasmine 4, Kawasan Perindustrian Bukit Beruntung, TST 29,
48009 Rawang, Selangor, Malaysia.
Tel: 03-6028 3003 Fax: 03-6028 3001 / 4
E-mail: itsb@ingresscorp.com.my
INGRESS AUTOVENTURES
CO., LTD
Rayong Plant
Eastern Seaboard Industrial Estate (Rayong), 64/6 Moo 4
Pluakdaeng Rayong 21140, Thailand.
Tel: (6638) 954942-5 Fax: (6638) 954946
Email: iav@ingress.co.th
(216594-T)
(285861-D)
(235492-V)
Ayutthaya Plant
Hi-Tech Industrial Estate (Ayutthaya) 64/6 Moo 1, Banlane Bangpa-in Ayutthaya,
13160, Thailand.
Tel: (6635) 314404-45 Fax: (6635) 314406
Email: iav@ingress.co.th
PT INGRESS MALINDO
VENTURES
Jln. Industri Selatan 6A, Block GG-7A/B, Kawasan Industri Jababeka II
Cikarang Selatan, 17854 Bekasi, Indonesia.
Tel: (021) 8983 4330/ 31 / 32 Fax: (6221) 8983 4329
Email: ptimv@ingresscorp.cbn.net.id
Engineering Services
INGRESS RESEARCH
SDN BHD
Lot 9, Jalan P/7, Seksyen 13, Kawasan Perindustrian Bangi, P.O. Box 9,
43657 Bandar Baru Bangi, Selangor, Malaysia.
Tel: 03-8926 4806 / 07 / 08 / 09 / 10 Fax: 03-8926 2152
E-mail: irsb@ingresscorp.com.my
TALENT SYNERGY
SDN BHD
Tel: 03-8926 4806 / 07 / 08 / 09 / 10 Fax: 03-8926 2152
E-mail: tssb@ingresscorp.com.my
(387451-V)
(350866-U)
43
PER
Power Engineering
MULTI DISCOVERY
SDN BHD
No. 3, Jalan Alfa B U6/B, Pusat Perdagangan Subang Permai,
40150 Shah Alam, Selangor, Malaysia.
Tel: 03-7847 5767 Fax: 03-7847 4594 / 5161
E-mail: multidiscovery@ingresscorp.com.my
RAMUSA ENGINEERING
SDN BHD
No. 3, Jalan Alfa B U6/B, Pusat Perdagangan Subang Permai,
40150 Shah Alam, Selangor, Malaysia.
Tel: 03-7847 4524 Fax: 03-7847 4594 / 5161
E-mail: ramusa@ingresscorp.com.my
MATRIX POWER SERVICES
SDN BHD
Tel: 03-8926 4941 Fax: 03-8926 4939
E-mail: matrixinfo@ingresscorp.com.my
(286861-K)
(92530-V)
(325864-T)
Tel: 03-8926 4941 Fax: 03-8926 4939
Email: matrixinfo@ingresscorp.com.my
Rail Electrification
BALFOUR BEATTY RAIL SDN BHD
Lot 1E, 1st Floor, No. 2, Tasik Ampang, Jalan Hulu Kelang,
Tel: 03-4254 7366 Fax: 03-4252 4088
Website: www.bbrail.com
OTHERS
Oil & Gas
INGRESS ENVIRONMENTAL
SDN BHD
(422897-M)
Lot 1G, 1st Floor, No. 2, Tasik Ampang Jalan Hulu Kelang,
Tel: 03-4260 2696 Fax: 03-4260 3696
E-mail: environmental@ingresscorp.com.my
Lot 1D, 1st Floor, No. 2, Tasik Ampang, Jalan Hulu Kelang,
Tel: 03-4251 3101 Fax: 03-4252 3201
E-mail: fabricators@ingresscorp.com.my
PT INGRESS AMDAC
ENVIRONMENTAL
Graha Niaga, 25th Floor, Jl. Jend Sudirman Kav. 58, Jakarta 12190, Indonesia.
Tel: (62-21) 250 5701 Fax: (62-21) 250 5702
E-mail: environmental@ingresscorp.com.my
PT BINA SELARAS
TRADINDO
Wisma Aldiron Suite 306, Lantai 3, Jalan Jend Gatot Subroto Kav 72,
Jakarta 12780, Indonesia.
Tel: 021-790 2540 / 7919 6265 / 7919 6955 Fax: 021-798 1290
Email: ptbst@ingresscorp.com.my
Support
44
CERTIFICATION
Sirim Cert No: AR 3219
IATF Cert No: 0025184
Serial No: 0005
For IESB
Serial No: 0006
For IPSB
Serial No: 0007
For ITSB
ISO / TS 16949
Cert No: I02690001
For IPSB
Cert No: I02690001
For IESB
Cert No: I02690001
For ITSB
MS ISO 14001
Cert No: I02690001
For IESB
Cert No: I02690001
For IPSB
Cert No: I02690001
For ITSB
OHSAS 18001
Cert No: AR 2195
For MDSB
MS ISO / 9001 : 2000
Cert No: AR 2196
For RESB
Cert No: AR 2197
For MPSSB
Cert No: 01104010769
For IAV
OUR PRODUCTS
45
48
NEWSPAPER CLIPPINGS
49
50
CALENDAR OF SIGNIFICANT EVENTS 2005/2006
/ KALENDAR PERISTIWA PENTING 2005/2006
A
B
C
I
D
J
K
A. 29 January 2005
D. 30 March 2005
G. 15 June 2005
PT IMV Annual Departmental Policy
Program (ADP) was held at Jababeka
Golf Country Club, Cikarang, Indonesia.
7th Analysts & Fund Managers’ Briefing
was held at Concorde Hotel, Kuala
Lumpur.
Thailand’s Board of Investment (TBOI)
delegation visited Nilai Operation.
Program Polisi Jabatan Tahunan PT
IMV (ADP) diadakan di Jababeka Golf &
Country Club, Cikarang, Indonesia.
Taklimat Penganalisis dan Pengurus
Dana Ke-7 diadakan di Hotel Concorde,
Kuala Lumpur.
B. 25 February 2005
E. 19 April 2005
MDSB, “Kenduri
Kesyukuran” in
conjunction with successful completion
of Supply and Erect of 132 kV GIS
Switchgears, ancillary equipments
associated civil works for Huntsman
Tioxide Switching, Kemaman on 8
February 2005.
Launching
ceremony
of
Mass
Production Side Impact Beam and
Heatshield for SRM Project by Datuk
Rameli Musa at Bangi Plant.
Kenduri Kesyukuran MDSB, sempena
dengan kejayaan Membekal dan
Memasang ‘Switchgear’ 132 kV GIS,
peralatan sokongan, dan kerja-kerja
awam berkaitan bagi Huntsman Tioxide
Switching, Kemaman pada 8 Februari
2005.
Majlis Pelancaran Pengeluaran Galang
Hentakan Sisi dan ‘Heatshield’ bagi Projek
SRM oleh Datuk Rameli Musa di Kilang
Bangi.
25 May 2005
PT IMV Family Day was held at Pondok
Layung, Anyer, Indonesia.
Hari Keluarga PT IMV diadakan di Pondok
Layung, Anyer, Indonesia.
C. 2 - 5 March 2005
International Exhibition of Transmission
& Distribution and Electrical Engineering
for the Asean Region (Asean Elenex 2005,
Thailand) participated by MPSSB.
Pameran Antarabangsa bagi Transmisi
& Pengedaran dan Kejuruteraan Elektrik
bagi Rantau Asean (Asean Elenex 2005,
Thailand) disertai oleh MPSSB.
F. 28 May 2005
MPSSB Family Day was held at Awana
Genting, Genting Highland.
Hari Keluarga MPSSB diadakan di Awana
Genting, Genting Highland.
Delegasi Lembaga Pelaburan Thailand
(TBOI) mengunjungi operasi Nilai.
21 June 2005
MPSSB
received
International
Electrotechnical Commission (IEC)
Certification for Single Phase Electronic
Meter (Matrix Aces).
MPSSB perolehi Pensijilan Suruhanjaya
Elektroteknikal Antarabangsa (IEC) bagi
Meter Elektronik Fasa Tunggal (Matrix
Aces).
25 June 2005
1st Executive Vice-Chairman Briefing
was held at PT IMV, Indonesia.
Taklimat pertama Naib Pengerusi
Eksekutif diadakan di PT IMV, Indonesia.
H. 25 June 2005
1st Internal Quality Control Convention
(QCC) of PT IMV was held at PT IMV,
Indonesia.
Konvensyen Kawalan Kualiti Dalaman
(QCC) pertama PT IMV diadakan di PT IMV,
Indonesia.
F
E
G
M
L
51
H
N
I. 11 July 2005
K. 8 July 2005
15 September 2005
6th Annual General Meeting was held at
Equatorial Hotel, Bangi.
PT IMV participation in “Gaikindo
Auto Show 2005” was held at Jakarta
Convention Centre, Indonesia.
PT BST became an approved vendor
for Malaysian International Trading
Company (MITCO), a subsidiary of
Petronas.
Mesyuarat Agung Tahunan Ke-6 diadakan
di Hotel Equatorial, Bangi.
J. 12 July 2005
Executive Vice-Chairman Briefing was
held at Nilai Operation.
Taklimat Naib Pengerusi
diadakan di Operasi Nilai.
Eksekutif
Penyertaan PT IMV di dalam “Gaikindo
Auto Show 2005” diadakan di Pusat
Konvensyen Jakarta, Indonesia.
PT BST menjadi vendor bagi Malaysian
International Trading Company (MITCO),
anak syarikat Petronas.
L. 12 July 2005
N. 21 - 24 September 2005
Group Induction Program for Executives
was held at Nilai Operation.
Program Induksi Kumpulan bagi para
Eksekutif diadakan di Operasi Nilai.
M. 20 - 23 July 2005
KLCC Malaysia) participated by MPSSB.
Pameran Antarabangsa bagi Transmisi
& Pengedaran dan Kejuruteraan Elektrik
KLCC Malaysia) disertai oleh MPSSB.
Indonesia) participated by MPSSB.
Pameran Antarbangsa bagi Transmisi &
Pengedaran dan Kejuruteraan Elektrik
Indonesia) disertai oleh MPSSB.
O. 27 September 2005
9th Group Quality Control Convention
(QCC) was held at Novotel Coralia, Bogor,
Indonesia.
Konvensyen Kawalan Kualiti Kumpulan
Ke-9 diadakan di Novotel Coralia, Bogor,
Indonesia.
O
52
CALENDAR OF SIGNIFICANT EVENTS 2005/2006
/ KALENDAR PERISTIWA PENTING 2005/2006
P
Q
R
S
T
P. 3 October 2005
R. 26 November 2005
17 December 2005
8th Analysts & Fund Managers’ Briefing
was held at Park Royal Hotel, Kuala
Lumpur.
Hari Raya Aidil Fitri Gathering called
“Halal Bihalal” was held at PT IMV,
Indonesia.
A “Gotong Royong Perdana” activity
organised
by
Human
Resource
Department was held at ITSB, Bukit
Beruntung.
Taklimat Penganalisis & Pengurus Dana
Ke-8 diadakan di Hotel Park Royal, Kuala
Lumpur.
Q. 21 October 2005
Distribution of “Zakat” and “Buka Puasa
Bersama” was held at PT IMV, Indonesia.
Pemberian Zakat dan majlis berbuka
puasa bersama yang diadakan di PT IMV,
Indonesia.
Perhimpunan Hari Raya Aidil Fitri yang
dinamakan “Halal Bihalal” diadakan di PT
IMV, Indonesia.
S. 7 December 2005
“Majlis Tahlil” and “Doa Selamat” was
held at PT BST, Indonesia.
Majlis Tahlil dan Doa Selamat diadakan
di PT BST, Indonesia.
27 October 2005
12 December 2005
Distribution of “Zakat” and “Raya gifts”
2005 to the poor was held at Bukit
Beruntung and Bukit Sentosa areas.
Inter-Department Futsal was organised
by ITSB, Bukit Beruntung.
Pemberian zakat dan hadiah raya 2005
kepada fakir miskin di kawasan Bukit
Beruntung dan Bukit Sentosa.
11 November 2005
A delegation from Daihatsu Motor
Corporation visited ITSB, Bukit
Beruntung for new Daihatsu projects.
Delegasi dari Daihatsu Motor Corporation
mengunjungi ITSB, Bukit Beruntung bagi
projek baru Daihatsu.
Pertandingan Futsal antara Jabatan
dianjurkan oleh ITSB, Bukit Beruntung.
15 December 2005
Delegation from PT IMV headed by
Bapak Moechamad Latip, Director of PT
IMV visited ITSB, Bukit Beruntung.
Delegasi dari PT IMV diketuai oleh Bapak
Moechamad Latip, Pengarah PT IMV,
mengunjungi ITSB di Bukit Beruntung.
Kegiatan Gotong Royong Perdana anjuran
Jabatan Sumber Manusia diadakan di
ITSB, Bukit Beruntung.
T. 30 January 2006
MDSB Family Day was held at Paradise
Sandy Beach Resort, Penang.
Hari Keluarga MDSB diadakan di Paradise
Sandy Beach Resort, Pulau Pinang.
AUDITED FINANCIAL STATEMENTS
CONTENTS
Directors’ Report
Statement by Directors
Statutory Declaration
Report of the Auditors
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Statement of
Changes in Equity
Consolidated Cash Flow Statement
Income Statement
Balance Sheet
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements
54 - 57
58
58
59
60
61
62
63
64
65
66
67
68 - 105
1
54
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 financial year ended 31 January 2006.
PRINCIPAL ACTIVITIES
The principal activities of the Company are investment holding and the provision of management services.
The principal activities of the subsidiaries are described in Note 12 to the financial statements.
There have been no significant changes in the nature of the principal activities during the financial year.
RESULTS
Group
RM
Company
RM
Profit after taxation
Minority interests
22,170,261
(7,313,284)
6,408,898
-
Net profit for the year
14,856,977
6,408,898
There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the
statement of changes in equity.
In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were
not substantially affected by any item, transaction or event of a material and unusual nature.
DIVIDENDS
The amounts of dividends paid by the Company since 31 January 2005 were as follows:
RM
In respect of the financial year ended 31 January 2005 as reported in the directors’ report of that year:
Final ordinary tax exempt dividend of 5 sen per share on 76,800,000 ordinary
shares paid on 10 August 2005
3,840,000
In respect of the financial year ended 31 January 2006:
Interim ordinary tax exempt dividend of 3 sen per share on 76,800,000 ordinary
shares paid on 27 January 2006
2,304,000
At the forthcoming Annual General Meeting, a final ordinary tax exempt dividend in respect of the financial year ended 31
January 2006, of 4 sen per share on the share capital of 76,800,000 ordinary shares, amounting to RM3,072,000 will be proposed
for shareholders’ approval. The financial statements for the current financial year do not reflect this proposed dividend. Such
dividend, if approved by the shareholders, will be accounted for in shareholders’ equity as an appropriation of retained profits
in the financial year ending 31 January 2007.
55
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:
Rameli bin Musa
Ab Rahim bin Husain
Ramli bin Napiah
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 acquisition of shares in the Company or any
other body corporate, other than those arising from the share options granted under the Employee Share Option Scheme.
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 as shown in
Note 6 to the financial statements or the fixed salary of a full-time employee of the Company) 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.
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 February
31 January
2005
Acquired
Sold
2006
Ingress Corporation Berhad
Direct interest:
Rameli bin Musa
Ab Rahim bin Husain
Ramli bin Napiah
Indirect interest:
Rameli bin Musa
12,000
8,602,800
12,000
571,200
1,617,600
1,124,800
50,000
-
12,000
8,602,800
12,000
571,200
1,617,600
1,174,800
15,360,000
-
-
15,360,000
<-------------------- Options Over Ordinary Share of RM1 Each --------------------->
1 February
31 January
2005
Granted
Exercised
Lapsed
2006
Ab Rahim bin Husain
Ramli bin Napiah
100,000
100,000
100,000
-
-
-
100,000
100,000
100,000
56
DIRECTORS’ REPORT
DIRECTORS’ INTERESTS (CONTD.)
Rameli bin Musa, by virtue of his interest in shares of the Company, is also deemed interested in shares of all the Company’s
subsidiaries to the extent the Company has an interest.
The other director in office at the end of the financial year, did not have any interest in shares of the Company and its related
corporations.
EMPLOYEE SHARE OPTIONS SCHEME
The Company’s Employee Share Options Scheme (“ESOS”) is granted under the by-laws approved by the shareholders
at an Extraordinary General Meeting held on 11 February 2004 and implemented on 9 April 2004. The ESOS was granted
to the eligible employees on 26 July 2004 and is to be in force for a period of 5 years from the date of implementation.
The salient features and other terms of ESOS are disclosed in Note 25 to the financial statements.
OTHER STATUTORY INFORMATION
a) Before the income statements and balance sheets of the Group and of the Company were made out, the directors took
reasonable steps:
i. 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
ii. 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. 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
ii. 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.
d) 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.
e) As at the date of this report, there does not exist:
i. 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
ii. any contingent liability of the Group or of the Company which has arisen since the end of the financial year.
57
OTHER STATUTORY INFORMATION (CONTD.)
f ) In the opinion of the directors:
i. 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
ii. 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
The significant events during the financial year are disclosed in Note 32 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
Kuala Lumpur, Malaysia
18 May 2006
Rameli bin Musa
58
STATEMENT BY DIRECTORS
PURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965
We, Dato’ Nasir bin Yusoff and Rameli bin Musa, being two of the directors of Ingress Corporation Berhad, do hereby state that,
in the opinion of the directors, the accompanying financial statements set out on pages 60 to 105 are drawn up in accordance
with applicable MASB Approved Accounting Standards in Malaysia and the provisions of the Companies Act, 1965 so as to give
a true and fair view of the financial position of the Group and of the Company as at 31 January 2006 and of the results and the
cash flows of the Group and of the Company for the year then ended.
Signed on behalf of the Board in accordance with a resolution of the directors.
Rameli bin Musa
18 May 2006
STATUTORY DECLARATION
PURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965
I, Ungku Farid bin Ungku Abd Rahman, being the director primarily responsible for the financial management of Ingress
Corporation Berhad, do solemnly and sincerely declare that the accompanying financial statements set out on pages 60 to
105 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, 1960.
Subscribed and solemnly declared by
the abovenamed Ungku Farid bin Ungku
Abd Rahman at Kuala Lumpur in Wilayah
Persekutuan on 18 May 2006
Before me,
Soh Ah Kau, AMN
(No. W 315)
Commissioner for Oaths
Kuala Lumpur
59
REPORT OF THE AUDITORS TO THE MEMBERS OF
(Incorporated in Malaysia)
We have audited the financial statements set out on pages 60 to 105. These financial statements are the responsibility of the
Company’s directors.
It is our responsibility to form an independent opinion, based on our audit, on the financial statements and to report our
opinion to you, as a body, in accordance with the Section 174 of the Companies Act, 1965 and for no other purpose. We do not
assume responsibility to any other person for the content of this report.
We conducted our audit in accordance with applicable Approved Standards on Auditing in Malaysia. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by the directors,
as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion:
a) the financial statements have been properly drawn up in accordance with the provisions of the Companies Act, 1965 and
applicable MASB Approved Accounting Standards in Malaysia so as to give a true and fair view of:
i) the financial position of the Group and of the Company as at 31 January 2006 and of the results and the cash flows of
the Group and of the Company for the year then ended; and
ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements; and
b) the accounting and other records and the registers required by the Act to be kept by the Company and by 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 auditors’ report thereon of the subsidiaries of which we have not acted
as auditors, as indicated in Note 12 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, in respect of
subsidiaries incorporated in Malaysia, did not include any comment required to be made under Section 174 (3) of the Act.
Ernst & Young
AF: 0039
Chartered Accountants
18 May 2006
Nik Rahmat Kamarulzaman bin Nik Ab. Rahman
No. 1759/02/08(J)
Partner
60
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2006
Revenue
Other operating income
Changes in inventories of finished goods and
work-in-progress
Sub-contractors’ costs
Construction materials used
Raw materials and consumables
Staff costs
Depreciation
Other operating expenses
Profit from operations
Interest income
Finance charges
Financing costs, net
Share of profit from associated companies
Profit before taxation
Taxation
Profit after tax
Minority interests
Note
2006
RM
2005
RM
3
4
289,710,177
2,808,571
213,160,294
1,182,022
1,151,678
(18,342,544)
(24,784,041)
(89,070,552)
(48,692,714)
(46,756,739)
(41,270,085)
24,753,751
616,233
(10,752,165)
(29,620,125)
(59,313,793)
(36,200,968)
(32,302,882)
(27,457,008)
19,311,608
1,351,492
(15,528,305)
(14,176,813)
1,318,751
(7,513,188)
(6,194,437)
3,910,048
14,486,986
7,683,275
22,170,261
(7,313,284)
14,856,977
1,323,169
14,440,340
9,504,146
23,944,486
(8,911,508)
15,032,978
5
7
8
9
Basic earnings per share (sen)
10
19.3
20.3
Net dividends per ordinary share in respect of the year (sen)
28
7.0
5.0
The accompanying notes form an integral part of the financial statements.
61
CONSOLIDATED BALANCE SHEET
AS AT 31 JANUARY 2006
Note
2006
RM
2005
RM
Property, plant and equipment
Investment in associates
Other investments
Goodwill on consolidation
Deferred tax assets
11
13
14
15
27
343,317,109
5,586,967
100,000
573,001
21,505,631
371,082,708
327,579,445
2,783,496
100,000
430,540
12,061,192
342,954,673
CURRENT ASSETS
Inventories
Trade receivables
Other receivables
Cash and bank balances
16
17
18
20
25,633,418
117,348,219
16,918,937
64,039,822
223,940,396
14,011,275
91,585,715
15,272,676
74,437,830
195,307,496
21
23
24
83,698,531
39,610,786
57,159,890
624,904
181,094,111
59,853,892
23,016,217
54,646,851
499,709
138,016,669
42,846,285
413,928,993
57,290,827
400,245,500
25
26
76,800,000
106,169,090
182,969,090
44,316,862
227,285,952
76,800,000
96,169,636
172,969,636
40,755,704
213,725,340
21
27
186,375,557
267,484
186,643,041
413,928,993
185,066,472
1,453,688
186,520,160
400,245,500
NON-CURRENT ASSETS
CURRENT LIABILITIES
Short term borrowings
Trade payables
Other payables
Tax payable
NET CURRENT ASSETS
FINANCED BY:
Share capital
Reserves
Minority interests
Long term borrowings
Deferred tax liabilities
Non-current liabilities
62
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
<----------------- Non-Distributable ------------------> Distributable
Note
At 1 February 2004
Currency translation reserve
Dividends
Total
RM
2,428,686
3,227,110
84,095,534
163,261,144
-
(1,484,486)
-
(1,484,486)
-
15,032,978
15,032,978
Revaluation
Reserves
RM
64,000,000
9,509,814
-
-
-
12,800,000
28
Retained
Profits
RM
Share
Premium
RM
-
Bonus issue
Foreign
Exchange
Reserve
RM
Share
Capital
RM
(8,485,814 )
-
-
(4,314,186)
-
-
-
-
-
(3,840,000)
(3,840,000)
At 31 January 2005
76,800,000
1,024,000
2,428,686
1,742,624
90,974,326
172,969,636
At 1 February 2005
76,800,000
1,024,000
2,428,686
1,742,624
90,974,326
172,969,636
-
-
-
1,286,477
-
1,286,477
-
-
-
14,856,977
14,856,977
Currency translation reserve
Dividends
At 31 January 2006
28
-
-
-
-
(6,144,000)
(6,144,000)
76,800,000
1,024,000
2,428,686
3,029,101
99,687,303
182,969,090
63
CONSOLIDATED CASH FLOW STATEMENT
2006
RM
2005
RM
14,486,986
14,440,340
46,756,739
130,896
(3,910,048)
36,929
(319,868)
234,234
15,528,305
(1,351,492)
71,592,681
(11,622,143)
(27,682,122)
16,099,071
48,387,487
(15,528,305)
(1,933,700)
30,925,482
32,302,882
102,771
(1,323,169)
(473,902)
(225,367)
845,368
6,595,403
(1,318,751)
50,945,575
(2,867,855)
(12,843,044)
42,597,721
77,832,397
(6,595,403)
(989,608)
70,247,386
6,064,873
1,351,492
16,279,932
(77,886,925)
(54,190,628)
12,288,465
1,318,751
326,308
(171,466,851)
(157,533,327)
Net repayment of hire purchase and lease financing
Drawdown of Sukuk Al-Ijarah
Drawdown of term loans
Repayment of term loans
Dividends paid
Net cash generated from financing activities
(658,138)
17,441,915
(10,562,827)
(6,144,000)
76,950
(20,466,067)
160,000,000
29,074,396
(36,866,770)
(3,840,000)
127,901,559
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
EFFECTS OF FOREIGN EXCHANGE RATE CHANGES
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR (NOTE 20)
(23,188,196)
(77,713)
67,111,744
43,845,835
40,615,618
(2,504,940)
29,001,066
67,111,744
CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments for:
Depreciation
Amortisation of goodwill
Share of profit from associated companies
Net unreaalised foreign exchange losses/(gain)
Net gain on disposal of property, plant and equipment
Provision for doubtful debts
Interest expense
Interest income (including profit sharing on Mudharabah deposits)
Operating profit before working capital changes
Increase in inventories
Increase in receivables
Increase in payables
Cash generated from operations
Interest paid
Taxation paid
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Net drawdown in short term borrowings
Interest received
Proceeds from disposal of property, plant and equipment
Purchase of property, plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
64
INCOME STATEMENT
Revenue
Other operating income
Staff costs
Depreciation
Other operating expenses
Profit from operations
Interest income
Finance charges
Financing costs, net
Taxation
Note
2006
RM
2005
RM
3
4
5
10,005,013
32,937
(2,662,411)
(613,734)
(995,366)
5,766,439
9,583,617
74,728
(2,419,976)
(585,198)
(835,230)
5,817,941
513,065
(520,396)
(7,331)
672,960
(441,318)
231,642
5,759,108
649,790
6,408,898
6,049,583
233,910
6,283,493
7
8
9
65
BALANCE SHEET
AS AT 31 JANUARY 2006
Note
2006
RM
2005
RM
Investments in subsidiaries
Deferred tax assets
11
12
27
1,471,737
94,316,018
1,151,500
96,939,255
1,839,396
89,316,016
501,710
91,657,122
CURRENT ASSETS
Other receivables
18
20
20,920,124
7,962,519
28,882,643
20,642,041
6,518,967
27,161,008
CURRENT LIABILITIES
Short term borrowings
Other payables
21
24
2,747,816
39,135,703
41,883,519
246,946
34,729,948
34,976,894
(13,000,876)
83,938,379
(7,815,886)
83,841,236
76,800,000
6,839,694
83,639,694
298,685
83,938,379
76,800,000
6,574,796
83,374,796
466,440
83,841,236
NON-CURRENT ASSETS
NET CURRENT LIABILITIES
FINANCED BY:
Share capital
Reserves
Long term borrowings
25
26
21
66
STATEMENT OF CHANGES IN EQUITY
Note
At 1 February 2004
Bonus issue
Dividends
At 31 January 2005
At 1 February 2005
Dividends
At 31 January 2006
28
28
NonDistributable
Distributable
Share
Capital
RM
Share
Premium
RM
Retained
Profits
RM
64,000,000
12,800,000
76,800,000
8,485,814
(8,485,814)
-
8,445,489
6,283,493
(4,314,186)
(3,840,000)
6,574,796
80,931,303
6,283,493
(3,840,000 )
83,374,796
76,800,000
76,800,000
-
6,574,796
6,408,898
(6,144,000)
6,839,694
83,374,796
6,408,898
(6,144,000 )
83,639,694
Total
RM
67
CASH FLOW STATEMENT
2006
RM
2005
RM
5,759,108
6,049,583
613,734
(7,963,840)
24,410
520,396
(513,065)
(1,559,257)
(5,263,435)
4,381,345
(2,441,347)
(520,396)
(14,648)
(2,976,391)
585,198
(7,963,840)
1,873
441,318
(672,960)
(1,558,828)
(2,011,607)
4,507,402
936,967
(441,318)
(21,975)
473,674
7,963,840
513,065
(2)
(246,075)
8,230,828
7,963,840
672,960
(2)
(118,399)
8,518,399
Net drawdown in short term borrowings
Net drawdown of hire purchase and Al-Ijarah lease payables
Dividend paid
Net cash used in financing activities
2,000,000
(168,591)
(6,144,000)
(4,312,591)
(226,946)
(3,840,000)
(4,066,946)
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR (NOTE 20)
941,846
6,518,967
7,460,813
4,925,127
1,593,840
6,518,967
CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments for:
Depreciation
Dividend income
Net unrealised foreign exchange loss
Loss on disposal of property, plant and equipment
Interest expense
Interest income
Operating loss before working capital changes
Increase in receivables
Increase in payables
Cash (used in)/generated from operations
Interest paid
Taxation paid
Net cash (used in)/generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Dividend received
Interest received
Purchase of shares in a subsidiary
Purchase of property, plant and equipment
Net cash generated from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
68
NOTES TO THE FINANCIAL STATEMENTS
- 31 JANUARY 2006
1. CORPORATE INFORMATION
The principal activities of the Company are investment holding and the provision of management services. The
principal activities of the subsidiaries are described in Note 12. There have been no significant changes in the nature
of the principal activities during the financial year.
The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main
Board of the Bursa Malaysia Securities Berhad. The registered office of the Company is located at Lot 1M, 1st Floor,
No. 2 Tasik Ampang, Jalan Hulu Kelang, 68000 Ampang, Selangor Darul Ehsan.
The number of employees in the Group and in the Company at the end of the financial year were 1,491 (2005: 1,203)
and 25 (2005: 26) respectively.
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the
directors on 18 May 2006.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The financial statements of the Group and of the Company have been prepared under the historical cost convention
and comply with the provision of the Companies Act, 1965 and applicable MASB Approved Accounting Standards
in Malaysia.
(b) Revenue Recognition
Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to
the enterprise and the amount of the revenue can be measured reliably.
i) Sale of goods
Revenue relating to sale of goods is recognised net of sales taxes and discounts upon the transfer of risks and
rewards.
ii) Construction contracts
Revenue from construction contracts is accounted for by the stage of completion method as described in
Note 2 (h).
iii) Dividend income
Dividend income is recognised when the right to receive payment is established.
iv) Management fees from subsidiaries
Income from management fees receivable from subsidiaries are recognised on an accrual basis in accordance
with the terms of agreements.
v) Services
Revenue from services rendered is recognised as and when the services are performed.
69
2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
(c) Basis of Consolidation
i) Subsidiaries
The consolidated financial statements include the financial statements of the Company and all its subsidiaries.
Subsidiaries are those companies in which the Group has power to exercise control over the financial and
operating policies so as to obtain benefits from their activities.
Subsidiaries are consolidated using the acquisition method of accounting. Under the acquisition method of
accounting, the results of subsidiaries acquired or disposed of during the financial year are included in the
consolidated income statement from the effective date of acquisition or up to the effective date of disposal,
as appropriate. The assets and liabilities of the subsidiaries are measured at their fair values at the date of
acquisition. The difference between the cost of an acquisition and the fair value of the Group’s share of the
net assets of the acquired subsidiary at the date of acquisition is included in the consolidated balance sheet
as goodwill or negative goodwill arising on consolidation.
Intragroup transactions, balances and resulting unrealised gains are eliminated on consolidation and the
consolidated financial statements reflect external transactions only. Unrealised losses are eliminated on
consolidation unless costs cannot be recovered.
Minority interest in consolidated balance sheet consist of the minorities’ share of the fair value of the
identifiable assets and liabilities of the acquiree as at acquisition date and the minorities’ share of movements
in the acquiree’s equity since then.
ii) Associates
Associates are those companies in which the Group exercises significant influence but not control, through
participation in the financial and operation policy decision of the companies.
Investments in associates are accounted for in the consolidated financial statements by the equity method
of accounting based on the audited or management financial statements of the associates. Under the equity
method of accounting, the Group’s share of profits less losses of associates during the financial year is included
in the consolidated income statement. The Group’s interest in associates is carried in the consolidated balance
sheet at cost plus the Group’s share of post-acquisition retained profits or accumulated losses and other
reserves.
Unrealised gains on transactions between the Group and the associates are eliminated to the extent of the
Group’s interest in the associates. Unrealised losses are eliminated unless cost cannot be recovered.
(d) Goodwill
Goodwill represents the excess of the cost of acquisition over the Group’s interest in the fair value of the identifiable
assets and liabilities of a subsidiary and associate at the date of acquisition.
Goodwill is stated at cost less accumulated amortisation and impairment losses. The policy for the recognition
and measurement of impairment losses is in accordance with Note 2(l). Goodwill arising on the acquisition of
subsidiaries is presented separately in the balance sheet while goodwill arising on the acquisition of associates is
included within the respective carrying amount of investments in these investments.
Goodwill is amortised on a straight-line basis over its estimated useful life of 10 years.
70
- 31 JANUARY 2006
(e) Investments in Subsidiaries and Associates
The Company’s investments in subsidiaries and associates are stated at cost less impairment losses. The policy for
the recognition and measurement of impairment losses is in accordance with Note 2(l).
On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is
recognised in the income statement.
(f) Foreign Currencies
i) Foreign Currency Transactions
Transactions in foreign currencies are initially recorded into Ringgit Malaysia at rates of exchange ruling
at the date of the transaction. At each balance sheet date, foreign currency monetary items are translated
into Ringgit Malaysia at exchange rates ruling at that date, unless hedged by forward foreign exchange
contracts, in which case the rates specified in such forward contracts are used. Non-monetary items initially
denominated in foreign currencies, which are carried at historical cost are translated using the historical rate
as of the date of acquisition and non monetary items which are carried at fair value are translated using the
exchange rate that existed when the values were determined.
All exchange differences are taken to the income statement with the exception of differences on foreign
currency borrowings that provide a hedge against a net investment in a foreign entity. These exchange
differences are taken directly to equity until the disposal of the net investment, at which time they are
recognised in the income statement.
The principal exchange rates used for each respective unit of foreign currency ruling at balance sheet date are
as follows:
Thai Baht (100 units)
Japanese Yen (100 units)
Indonesian Rupiah (10,000 units)
US Dollar
2006
RM
2005
RM
10.18
3.26
4.21
3.78
10.07
3.50
4.40
3.80
ii) Foreign Entities
Financial statements of foreign consolidated subsidiaries are translated at year-end exchange rates with
respect to the assets and liabilities, and at exchange rates at the dates of the transactions with respect to the
income statement. All resulting translation differences are recognised in equity.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and
liabilities of the Company and translated at the exchange rate ruling at the date of the transaction.
71
(g) Property, Plant and Equipment and Depreciation
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. The
policy for the recognition and measurement of impairment losses is in accordance with Note 2(l).
Revaluations are made at least once in every three years based on a valuation by an independent valuer on
an open market value basis. Any revaluation increase is credited to equity as a revaluation surplus, except to
the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense, in
which case the increase is credited to the income statement to the extent of the decrease previously charged.
A revaluation decrease is first offset against an increase on earlier valuation in respect of the same asset and is
thereafter recognised as an expense. Upon the disposal of revalued assets, the attributable revaluation surplus
remaining in the revaluation reserve is transferred to retained profits.
Freehold land, plant and machinery-in-progress are not depreciated. Leasehold land is depreciated over the
period of the respective leases which range from 87 years to 92 years. Depreciation of other property, plant and
equipment is provided for on a straight line basis to write off the cost of each asset to its residual value over the
estimated useful life at the following annual rates:
Buildings
Plant and machinery
Motor vehicles, office equipment, furniture and fittings, renovations and fixtures
2% - 20%
10%
10% - 20%
Upon the disposal of an item of property, plant or equipment, the difference between the net disposal proceeds
and the carrying amount is charged or credited to the income statement and the attributable portion of the
revaluation surplus is taken directly to retained profits.
(h) Construction Contracts
Where the outcome of a construction contract can be reliably estimated, contract revenue and contract costs are
recognised as revenue and expenses respectively by using the stage of completion method. The stage of completion
is measured by reference to the proportion of contract costs incurred for work performed to date to the estimated
total contract costs.
Where the outcome of a construction contract cannot be reliably estimated, contract revenue is recognised to
the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as
expenses in the period in which they are incurred.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an
expense immediately.
When the total of costs incurred on construction contracts plus recognised profits (less recognised losses)
exceeds progress billings, the balance is classified as amount due from customers on contracts. When progress
billings exceed costs incurred plus recognised profits (less recognised losses), the balance is classified as amount
due to customers on contracts.
72
- 31 JANUARY 2006
(i) Inventories
Inventories are stated at the lower of cost (determined on the first-in, first-out basis) and net realisable value.
The cost of finished goods and work-in-progress includes direct materials, direct labour, other direct costs
and appropriate proportion of production overheads. Net realisable value represents the estimated selling
price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
(j) Income Tax
Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected
amount of income taxes payable in respect of the taxable profit for the year and is measured using the tax
rates that have been enacted at the balance sheet date.
Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet
date between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax
assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to
the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, unused tax losses and unused tax credits can be utilised. Deferred tax is not recognised if the
temporary difference arises from goodwill or negative goodwill or from the initial recognition of an asset
or liability in a transaction which is not a business combination and at the time of the transaction, affects
neither accounting profit nor taxable profit.
Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised
or the liability is settled, based on tax rates that have been enacted or substantively enacted at the balance
sheet date. Deferred tax is recognised in the income statement, except when it arises from a transaction
which is recognised directly in equity, in which case the deferred tax is also charged or credited directly in
equity, or when it arises from a business combination that is an acquisition, in which case the deferred tax
is included in the resulting goodwill or negative goodwill.
(k) Finance Lease and Hire Purchase
A lease is recognised as a finance lease if it transfers substantially to the Group all the risks and rewards
incident to ownership.
Assets acquired by way of hire purchase or finance leases are stated at an amount equal to the lower of
their fair values and the present value of the minimum lease payments at the inception of the leases, less
accumulated depreciation and impairment losses. The corresponding liability is included in the balance
sheet as borrowings. In calculating the present value of the minimum lease payments, the discount factor
used is the interest rate implicit in the lease, when it is practicable to determine; otherwise, the Company’s
incremental borrowing rate is used.
Lease payments are apportioned between the finance costs and the reduction of the outstanding liability.
Finance costs, which represent the difference between the total leasing commitments and the fair value
of the assets acquired, are charged to the income statement over the term of the relevant lease so as to
produce a constant periodic rate of charge on the remaining balance of the obligations for each accounting
period.
The depreciation policy for leased assets is consistent with that for depreciable property, plant and
equipment as described in Note 2(g).
73
(l) Impairment of Assets
At each balance sheet date, the Group reviews the carrying amounts of its assets to determine whether
there is any indication of impairment. If any such indication exists, impairment is measured by comparing
the carrying values of the assets with their recoverable amounts. Recoverable amount is the higher of net
selling price and value in use, which is measured by reference to discounted future cash flows.
An impairment loss is recognised as an expense in the income statement immediately, unless the asset is
carried at revalued amount. Any impairment loss of a revalued asset is treated as a revaluation decrease to
the extent of any unutilised previously recognised revaluation surplus for the same asset.
(m) Employee Benefits
i) Short Term Benefits
Wages, salaries, bonuses and social security contribution are recognised as an expense in the year in which
the associated services are rendered by employees of 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. Short term non-accumulating compensated absences
such as sick leave are recognised when the absences occur.
ii) Defined Contribution Plans
As required by law, companies in Malaysia make contributions to the State pension scheme the Employees
Provident Fund (“EPF”). Some of the Group’s foreign subsidiaries make contributions to the respective
countries’ statutory pension schemes. Such contributions are recognised as an expense in the income
statement as incurred.
(n) Cash and Cash Equivalents
For the purposes of the cash flow statements, cash and cash equivalents include cash on hand and at bank
and deposits at call and short term highly liquid investment which have an insignificant risk of change in
value, excluding cash held under lien, net of outstanding bank overdrafts.
(o) Financial Instruments
Financial instruments are recognised in the balance sheet when the Group has become a party to the
contractual provisions of the instrument.
Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual
arrangement. The particular recognition method adopted for the financial instruments recognised in the
balance sheet is disclosed in the individual accounting policies associated with each item.
In assessing the value of the financial instruments, the Group refers to traded market values or applies the
discounted cash flow method to discount future cash flows to determine their fair value. The fair values of
financial liabilities are estimated by discounting future cash flows at current market interest rate available
to the Group.
The fair values for financial assets and liabilities with a maturity of less than one year are assumed to
approximate their net carrying amounts.
74
- 31 JANUARY 2006
(o) Financial Instruments (Contd.)
i)
Other Non-Current Investments
Non-current investments other than investments in subsidiaries and associates are stated at cost less
provision for any permanent diminution in value. Such provision is made when there is a decline other than
temporary in the value of investments and is recognised as an expense in the period in which the decline
occurred. On disposal of an investment, the difference between net disposal proceeds and its carrying
amount is recognised in the income statement.
ii) Trade and Other Receivables
Trade and other receivables are carried at anticipated realisable values. Bad debts are written off when
identified. An estimate is made for doubtful debts based on a review of all outstanding amounts as at the
balance sheet date.
iii) Trade and Other Payables
Trade and other payables are stated at cost which is the fair value of the consideration to be paid in the
future for goods and services received.
iv) Interest-Bearing Borrowings
Interest-bearing bank loans and overdrafts are recorded at the amount of proceeds received, net of
transaction costs. All borrowing costs are recognised as an expense in the income statement in the period in
which they are incurred.
v) Equity Instruments
Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the
period in which they are declared and approved by shareholders.
The transaction cost of an equity transaction, are accounted for as a deduction from equity, net of tax.
Equity transaction costs comprise only those incremental external costs directly attributable to the
equity transaction which would otherwise have been avoided.
vi) Derivative Financial Instruments
The Group uses forward foreign exchange contracts, to hedge its exposure to foreign exchange arising
from operational, financing and investment activities.
The underlying foreign currency assets or liabilities of forward foreign exchange contracts are translated
at their respective hedged exchange rate and all exchange gains or losses are recognised as income or
expense in the income statement in the same period as the exchange differences on the underlying
hedged items. Exchange gains and losses arising on contracts entered into as hedges of anticipated
future transactions are deferred until the date of such transaction, at which time they are included in the
measurement of such transactions.
(p) Provision for Liabilities
Provisions for liabilities are recognised when the Group has a present obligation as a result of a past event
and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, and a reliable estimate of the amount can be made. Provisions are reviewed at each balance
sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of money
is material, the amount of a provision is the present value of the expenditure expected to be required to
settle the obligation.
75
3. REVENUE
Revenue of the Group and the Company consists of the following:
Group
Sales of goods
Construction contracts
Services
Dividend income from subsidiaries
Management fees from subsidiaries
Company
2006
RM
2005
RM
2006
RM
2005
RM
241,268,499
47,767,878
673,800
289,710,177
173,190,840
39,609,554
359,900
213,160,294
7,963,840
2,041,173
10,005,013
7,963,840
1,619,777
9,583,617
4. OTHER OPERATING INCOME
Included in other operating income are the following:
Group
Foreign exchange gains
- unrealised
- realised
Gain on disposal of property plant and equipment
Company
2006
RM
2005
RM
2006
RM
2005
RM
1,041,791
1,006,107
319,868
505,969
98,307
252,134
-
54,598
-
2006
RM
2005
RM
2006
RM
2005
RM
26,430,803
2,941,773
2,854,014
16,466,124
48,692,714
20,933,293
2,397,928
2,144,097
10,725,650
36,200,968
1,706,700
327,370
250,684
377,657
2,662,411
1,641,437
166,289
217,522
394,728
2,419,976
5. STAFF COSTS
Group
Wages and salaries
Bonus
Pension costs - defined contribution plans
Other staff related costs
Company
Included in staff costs of the Group and of the Company are executive directors’ remuneration amounting to
RM3,775,900 (2005: RM3,007,622) and RM804,448 (2005: RM773,712) respectively, as further disclosed in Note 6.
76
- 31 JANUARY 2006
6. DIRECTORS’ REMUNERATION
Group
Company
2006
RM
2005
RM
2006
RM
2005
RM
1,948,214
24,000
400,245
120,850
2,493,309
1,841,016
20,000
201,000
112,450
2,174,466
656,150
148,298
49,850
854,298
707,712
66,000
49,850
823,562
100,000
5,250
9,400
114,650
85,000
7,400
9,400
101,800
100,000
5,250
9,400
114,650
85,000
7,400
9,400
101,800
1,203,941
102,000
97,500
59,250
1,462,691
837,666
46,000
61,940
38,250
983,856
-
-
Total
4,070,650
3,260,122
968,948
925,362
Analysis excluding benefits-in-kind:
Total executive directors’ remuneration (Note 5)
Total non-executive directors’ remuneration
Total directors’ remuneration
3,775,900
105,250
3,881,150
3,007,622
92,400
3,100,022
804,448
105,250
909,698
773,712
92,400
866,112
Directors of the Company
Executive:
Fees
Bonus
Benefits-in-kind
Non-Executive:
Fees
Allowances
Benefits-in-kind
Other Directors
Executive:
Fees
Bonus
Benefits-in-kind
77
6. DIRECTORS’ REMUNERATION (CONTD.)
The number of directors of the Company whose total remuneration during the year fell within the following bands
is analysed below:
Number of Directors
2006
2005
Executive directors:
RM450,001 - RM500,000
RM500,001 - RM550,000
RM600,001 - RM650,000
RM750,001 - RM800,000
3
1
3
1
-
Non-Executive directors:
Below RM50,000
3
3
7. OTHER OPERATING EXPENSES
Included in other operating expenses are the following:
Group
Auditors’ remuneration
- statutory
- others
Foreign exchange losses
- unrealised
- realised
Amortisation of goodwill
Provision for doubtful debts
Rental expense
Loss on disposal of property, plant and equipment
Company
2006
RM
2005
RM
2006
RM
2005
RM
226,496
14,000
203,832
13,500
18,000
14,000
18,000
13,500
1,078,720
104,403
130,896
234,234
789,321
-
32,067
117,326
102,771
845,368
294,701
26,767
24,410
203,012
-
197,912
1,873
78
- 31 JANUARY 2006
8. FINANCING COSTS, NET
Included in finance costs, net, are:
Group
Finance charges on:
- Al-Ijarah lease and Murabahah
- Sukuk Al-Ijarah
- Others
Interest/profit income on:
- Fixed deposits
- Mudharabah deposits
- Others
Company
2006
RM
2005
RM
2006
RM
2005
RM
(1,055,819)
(8,613,701)
(5,858,785)
(548,229)
(4,982,297)
(1,982,662)
(520,396)
(441,318)
200,576
1,150,916
(14,176,813)
470,486
848,265
(6,194,437)
171,727
341,338
(7,331)
71,670
601,290
231,642
9. TAXATION
Group
Income tax:
Malaysian income tax
(Under)/over provided in prior years
Deferred tax (Note 27):
Relating to origination and reversal of
temporary differences
(Under)/over provided in prior years
Share of taxation of associated company
Company
2006
RM
2005
RM
2006
RM
2005
RM
1,720,230
120,561
1,840,791
1,353,928
168,722
1,522,650
-
-
(9,376,169)
(1,254,474)
(10,630,643)
(11,503,126)
(11,503,126)
(497,386)
(152,404)
(649,790)
(233,910)
(233,910)
1,106,577
(7,683,275)
476,330
(9,504,146)
(649,790)
(233,910)
79
9. TAXATION (CONTD.)
A reconciliation of income tax expense applicable to profit before taxation at the statutory income tax rate to income tax
expense at the effective income tax rate of the Group and of the Company is as follows:
Group
Taxation at Malaysian statutory tax rate of 28%
(2005: 28%)
Effect of differential tax rate 20%
Income not subject to tax
Expenses not deductible for tax purposes
Tax incentive provided during the year
Underprovided in prior years
Deferred tax assets recognised on utilisation of
reinvestment allowance
Utilisation of current year tax losses
Tax expense for the year
Tax savings recognised during the year arising from:
Utilisation of tax losses brought forward
Utilisation of unabsorbed capital allowances
brought forward
Utilisation of investment tax allowances
brought forward
Company
2006
RM
2005
RM
2006
RM
2005
RM
14,486,986
14,440,340
5,759,108
6,049,583
4,056,356
(84,477)
(7,185,495)
5,072,450
(1,193,247)
(1,133,913)
4,041,865
(54,434)
(6,617,086)
4,310,674
(254,239)
168,722
1,612,550
(2,229,875)
119,939
(152,404)
1,693,883
(2,231,070)
303,277
-
(6,445,322)
(769,627)
(7,683,275)
(11,099,648)
(9,504,146)
(649,790)
(233,910)
-
8,558,853
-
-
5,974,450
22,120,054
-
-
2,719,605
-
-
-
The unutilised tax losses, unabsorbed capital allowances and unutilised investment tax allowances and reinvestment
allowances carried forward are subject to agreement from the Inland Revenue Board.
10. BASIC EARNINGS PER SHARE
Basic earnings per share of the Group is calculated by dividing the net profit for the year by the weighted average number
of ordinary shares in issue during the financial year.
Group
Net profit for the year (RM)
Weighted average number of ordinary shares in issue
Basic earnings per share (sen)
2006
2005
14,856,977
76,800,000
19.3
15,032,978
74,212,022
20.3
The diluted earnings per share in the current financial year is not disclosed as the effect of ESOS is anti dilutive.
80
- 31 JANUARY 2006
11. PROPERTY, PLANT AND EQUIPMENT
Land and
Buildings*
RM
Plant and
Machinery
RM
Property,
Plant and
Equipment
in-progress
RM
83,317,426
994,000
(930,112)
7,672,049
43,660
91,097,023
313,987,977
6,198,390
(2,076,800)
42,300,238
44,467,628
878,354
405,755,787
47,934,818
49,253,560
(14,087,882)
(13,674,786)
(52,259,877)
437,239
17,603,072
55,369,907
21,440,975
(593,641 )
(27,695,340 )
120,200
(296,809 )
48,345,292
500,610,128
77,886,925
(16,758,323)
1,062,444
562,801,174
37,717,023
53,380,000
91,097,023
405,755,787
405,755,787
17,603,072
17,603,072
48,345,292
48,345,292
509,421,174
53,380,000
562,801,174
2,688,116
1,650,703
22,520
4,361,339
155,705,267
40,203,485
(782,357)
734,928
195,861,323
-
14,637,300
4,902,551
(15,902 )
(262,546 )
19,261,403
173,030,683
46,756,739
(798,259)
494,902
219,484,065
Net Book Value
Cost
Valuation
At 31 January 2006
37,184,805
49,550,879
86,735,684
209,894,464
209,894,464
17,603,072
17,603,072
29,083,889
29,083,889
293,766,230
49,550,879
343,317,109
Cost
Valuation
At 31 January 2005
29,937,426
50,691,884
80,629,310
158,282,710
158,282,710
47,934,818
47,934,818
40,732,607
40,732,607
276,887,561
50,691,884
327,579,445
Group
Other
Assets**
RM
Total
RM
Cost/Valuation
At 1 February 2005
Additions
Disposals
Reclassifications
Transfer in/(out)
Exchange differences
At 31 January 2006
Representing:
Cost
Valuation
Accumulated Depreciation
At 1 February 2005
Charge for the year
Disposals
At 31 January 2006
81
11. PROPERTY, PLANT AND EQUIPMENT (CONTD.)
Group (Contd.)
Details at 1 February 2004
Cost
Valuation
Accumulated depreciation
Depreciation charge for year 2005
Land and
Buildings*
RM
Plant and
Machinery
RM
Property,
Plant and
Equipment
in-progress
RM
53,380,000
53,380,000
1,460,640
233,709,761
233,709,761
127,301,045
19,293,518
19,293,518
-
21,905,065
21,905,065
10,775,187
274,908,344
53,380,000
328,288,344
139,536,872
1,141,005
26,555,607
-
4,606,270
32,302,882
Other
Assets**
RM
Total
RM
** Other assets comprise motor vehicles, office equipment, furniture and fittings, renovations and fixtures.
* Land and buildings
Building
RM
Long Term
Leasehold
Land
RM
Long Term
Leasehold
Buildings
RM
Freehold
Land
RM
Freehold
Buildings
RM
Total
RM
At 1 February 2005
Additions
Reclassification
Transfer in
At 31 January 2006
560,000
560,000
7,500,000
350,000
37,174
7,887,174
14,500,000
14,500,000
15,854,510
15,854,510
44,902,916
644,000
(930,112)
7,672,049
6,486
52,295,339
83,317,426
994,000
(930,112)
7,672,049
43,660
91,097,023
Representing:
Cost
Valuation
At 31 January 2006
560,000
560,000
387,174
7,500,000
7,887,174
14,500,000
14,500,000
3,378,903
12,475,607
15,854,510
33,950,946
18,344,393
52,295,339
37,717,023
53,380,000
91,097,023
15,022
7,510
22,532
122,914
78,161
19,164
220,239
173,494
173,494
-
2,376,686
1,565,032
3,356
3,945,074
2,688,116
1,650,703
22,520
4,361,339
537,468
537,468
7,666,935
7,666,935
14,326,506
14,326,506
3,378,903
12,475,607
15,854,510
33,805,902
14,544,363
48,350,265
37,184,805
49,550,879
86,735,684
Group
Cost/Valuation
At 1 February 2005
Charge for the year
At 31 January 2006
Net Book Value
Cost
Valuation
At 31 January 2006
82
- 31 JANUARY 2006
* Land and buildings
Building
RM
Long Term
Leasehold
Land
RM
Long Term
Leasehold
Buildings
RM
Freehold
Land
RM
Freehold
Buildings
RM
Total
RM
544,978
544,978
7,377,08
7,377,086
14,326,506
14,326,506
3,378,903
12,475,607
15,854,510
26,558,523
15,967,707
42,526,230
29,937,426
50,691,884
80,629,310
560,000
560,000
7,512
7,500,000
7,500,000
30,244
14,500,000
14,500,000
173,494
12,475,607
12,475,607
-
18,344,393
18,344,393
1,249,390
53,380,000
53,380,000
1,460,640
7,510
92,670
-
-
1,040,825
1,141,005
Group (Contd.)
Net Book Value
Cost
Valuation
At 31 January 2005
Cost
Valuation
Company
Renovations
RM
Motor
Vehicles
RM
Furniture
and Fittings
RM
Office
Equipment
and
Computers
RM
388,277
34,013
422,290
1,600,025
94,598
1,694,623
93,610
629
94,239
875,811
116,835
992,646
Total
RM
2,957,723
246,075
3,203,798
Cost
At 1 February 2005
Additions
Disposals
At 31 January 2006
83
Motor
Vehicles
RM
Furniture
and Fittings
RM
Office
Equipment
and
Computers
RM
260,731
583,056
331,041
914,097
47,178
25,451
72,629
301,464
183,140
484,604
1,118,327
613,734
1,732,061
Net Book Value
At 31 January 2006
At 31 January 2005
161,559
201,648
780,526
1,016,969
21,610
46,432
508,042
574,347
1,471,737
1,839,396
Cost
360,39
111,343
1,600,025
259,637
88,900
29,944
792,344
132,672
2,841,664
533,596
75,286
323,419
17,701
168,792
585,198
Company (Contd.)
Renovations
RM
Total
RM
At 1 February 2005
Charge for the year
Disposals
At 31 January 2006
186,629
74,102
-
(a) Details of independent professional valuation of the Group’s properties are as follows:
Year of
Valuation
Description of Property
Valuation
Amount
RM
Basis of
Valuation
2003
Land and factory at Bangi
4,000,000
Open market value
2003
Land and factory at Nilai
18,000,000
Open market value
2003
Land and factory at Bukit Beruntung
16,000,000
Open market value
2003
Land and factory at Rayong, Thailand
14,820,000
Open market value
2003
Staff accommodation at Nilai
560,000
Open market value
Had the revalued land and buildings been carried at historical costs, the net book value of the land and buildings that would have been
included in the financial statements of the Group as at 31 January 2006 would have been RM28,110,421 (2005: RM31,379,715).
84
- 31 JANUARY 2006
(b) Net book values of property, plant and equipment held under hire purchase arrangements are as follows:
Group
Motor vehicles
Company
2006
RM
2005
RM
2006
RM
2005
RM
200,001
725,775
285,716
2,872,225
200,001
390,068
285,716
484,429
(c) Net book values of property, plant and equipment held under Al-Ijarah lease arrangements are as follows:
Group
Building
Plant and machinery
Other assets
2006
RM
2005
RM
-
22,377,744
64,557,669
266,331
(d) During the year, the Group acquired property, plant and equipment, of which RM400,568 (2005: RM365,262)
were acquired by means of hire purchase, finance lease and Al-Ijarah lease arrangements.
Included in property, plant and equipment of the Group are fully depreciated assets which are still in use, costing
RM78,759,011 (2005: RM27,235,971).
(e) The net book values of property, plant and equipment pledged to financial institutions for bank borrowings as
referred to in Note 21 are as follows:
Group
Long term leasehold land
Buildings
Plant and machinery
2006
RM
2005
RM
8,472,760
8,220,992
37,627,411
54,321,163
17,522,659
5,035,247
52,706,209
75,264,115
85
12. INVESTMENTS IN SUBSIDIARIES
Company
Unquoted shares at cost
2006
RM
2005
RM
94,316,018
89,316,016
Details of the subsidiaries are as follows:
Name of subsidiaries
Country of
Incorporation
Effective Equity
Interest Held
2006
2005
%
%
Principal Activities
Ingress Technologies
Sdn. Bhd.
Malaysia
70
70
Manufactures and supplies
complete automotive door
assemblies (door-in-white)
and manufactures and
assembles medium to high
tonnage press parts.
Ingress Autoventures
Co., Ltd.*
Thailand
73
73
Manufactures automotive
components.
PT Ingress Malindo
Ventures **
Indonesia
80
80
Manufactures automotive
components.
Ingress Engineering
Sdn. Bhd.
Malaysia
100
100
Manufactures and supplies rollformed plastic mouldings and
weather-strips and provision of
management services.
Ingress Precision
Sdn. Bhd.
Malaysia
90
90
Manufactures and supplies rollformed metal automative door
sash (door frame) and related
components.
Multi Discovery
Sdn. Bhd.
Malaysia
100
100
Provides engineering services
for the power and utility
industry.
Ramusa Engineering
Sdn. Bhd.
Malaysia
51
51
Provides electrical engineering
services for power and utility
industry, particularly in building,
infrastructure and distribution
network.
86
- 31 JANUARY 2006
12. INVESTMENTS IN SUBSIDIARIES (CONTD.)
Country of
Incorporation
Effective Equity
Interest Held
2006
2005
%
%
Matrix Power Services
Sdn. Bhd.
Malaysia
80
80
Manufactures and supplies
panel-based electrical
equipment and provides
electrical engineering services
for power and utility industry.
Ingress Research
Sdn. Bhd.
Malaysia
100
100
in the field of computer aided
design, manufactures tools,
jigs and dies and undertakes
comprehensive product
development work.
Talent Synergy
Sdn. Bhd.
Malaysia
100
100
Provides engineering solutions
in industrial automation
through design, fabrication,
manufactures and supplies
sub-system or system for the
applications in production and
testing.
Ingress Environmental
Sdn. Bhd.
Malaysia
91
70
Provides project management
and equipment rental for
automatic tank cleaning
services for oil and gas storage
tanks.
PT Ingress Amdec
Environmental **
Indonesia
46
-
Provides automatic tank
cleaning services for oil and gas
storage tanks.
Ingress Fabricators
Sdn. Bhd.
Malaysia
70
70
and supply of instrumentation
equipment for oil and gas
industry.
87
12. INVESTMENTS IN SUBSIDIARIES (CONTD.)
Country of
Incorporation
Effective Equity
Interest Held
2006
2005
%
%
Matrix Hydro
Generation Sdn. Bhd.**
Malaysia
70
70
Hydro project consultant and to
develop, operate and maintain
mini hydro power plants.
Ingress Sukuk
Berhad **
Malaysia
100
100
Special purpose vehicle for the
issuance of Sukuk Al-Ijarah.
Magmapeak
Sdn. Bhd.**
Malaysia
100
100
Dormant.
Ingress Auto Sdn. Bhd.
(Formerly known as Foresight
Heritage Sdn. Bhd.)
Malaysia
100
-
Dormant.
Indonesia
60
-
Trading.
PT Bina Selaras
Tradindo **
* Audited by member firm of Ernst & Young, Global
** Audited by firms of auditors other than Ernst & Young
(a) On 28 June 2005, the Group via Ingress Engineering Sdn. Bhd., entered into a Share Sale Agreement with Asia Pacific
Wing Sdn. Bhd. (“APWSB”) to acquire 942.5 ordinary shares of Indonesian Rupiah (Rp.) 1,000,000 each of PT Bina
Selaras Tradindo (“PT BST”) representing 58% equity interest in PT BST held by APWSB, for a total consideration of
Rp.1,462,500,000.
(b) On 30 June 2005, the Group via its 70% owned subsidiary, Ingress Environmental Sdn. Bhd., executed a Joint Venture
Agreement with PT Amdac, Indonesia for the purpose of regulating their relationship as shareholders in the joint
venture company known as PT Ingress Amdac Environmental. The subscription of 51% of the issued and paid-up
capital PT Ingress Amdac Environmental was completed before year end.
(c) On 19 October 2005, the Company acquired 100% equity interest in Foresight Heritage Sdn. Bhd. (“FHSB”) for a total
cash consideration of RM2.00. FHSB is currently dormant. On 1 December 2005, FHSB changed its name to Ingress
Auto Sdn. Bhd.
(d) On 27 January 2006, Ingress Environmental Sdn. Bhd. (“IEnSB”) issued 1,400,000 new ordinary shares of RM1.00 each.
The Group via its subsidiary, Ingress Engineering Sdn. Bhd. subscribed to all the new shares issued for a consideration
of RM1,400,000 accordingly. The Group’s interest in IEnSB increased from 70% to 91%.
88
- 31 JANUARY 2006
13. INVESTMENTS IN ASSOCIATES
Group
Unquoted investments at cost
Share of post-acquisition reserves
Less: Accumulated impairment losses
Represented by:
Share of net assets
2006
RM
2005
RM
2,783,496
2,853,471
5,636,967
(50,000)
5,586,967
1,936,657
896,839
2,833,496
(50,000)
2,783,496
5,586,967
2,783,496
Details of the associates are as follows:
Country of
Incorporation
Effective Equity
Interest Held
2006
2005
%
%
Balfour Beatty Rail
Sdn. Bhd.*
Malaysia
49
49
Rail electrification works and
maintenance activities
Sapura Ingress Ventures
Sdn. Bhd.*
Malaysia
50
50
Dormant
* Audited by firm of auditors other than Ernst & Young.
14. OTHER INVESTMENTS
Group
Unquoted investments at cost
2006
RM
2005
RM
100,000
100,000
89
15. GOODWILL ON CONSOLIDATION
Group
At 1 February
Acquisition of subsidiary
Less: Amortisation during the year
At 31 January
2006
RM
2005
RM
430,540
273,357
(130,896)
573,001
308,311
225,000
(102,771)
430,540
16. INVENTORIES
Group
At cost:
Raw materials and consumables
Work-in-progress
Finished goods
2006
RM
2005
RM
14,147,161
9,426,053
2,060,204
25,633,418
9,482,528
3,305,502
1,223,245
14,011,275
17. TRADE RECEIVABLES
Group
Trade receivables
Due from customers on contracts (Note 19)
Retention sums on contracts (Note 19)
Less: Provision for doubtful debts
2006
RM
2005
RM
73,497,061
32,988,179
11,929,420
118,414,660
(1,066,441)
117,348,219
51,985,821
29,071,393
11,507,095
92,564,309
(978,594)
91,585,715
Included in trade receivables is an amount of RM184,069 (2005: RM309,048) due from Katayama Kogyo Co., Ltd., a
foreign corporate shareholder of subsidiaries.
The Group’s normal trade credit term ranges from 30 days to 90 days. Other credit terms are assessed and approved
on a case-by-case basis.
The Group has no significant concentration of credit risk that may arise from exposure to a single debtor or to groups
of debtors.
90
- 31 JANUARY 2006
18. OTHER RECEIVABLES
Group
Due from subsidiaries
Due from associates
Deposits
Prepayments
Sundry receivables
Less: Provision for doubtful debts
Company
2006
RM
2005
RM
2006
RM
2005
RM
318,542
891,288
828,509
15,827,538
17,865,877
(946,940)
16,918,937
48,050
1,090,452
838,118
14,096,609
16,073,229
(800,553)
15,272,676
20,011,225
308,909
11,376
588,614
20,920,124
20,920,124
20,195,913
108,909
6,335
330,884
20,642,041
20,642,041
The amount due from associates is unsecured, has no fixed terms of repayment and interest-free.
The amount due from subsidiaries is unsecured, has no fixed terms of repayment and bears interest rate of 4% (2005: 4%)
per annum.
19. DUE FROM CUSTOMERS ON CONTRACTS
Group
Construction contract costs incurred to date
Attributable profit
Less: Progress billings
Included in trade receivables (Note 17)
Retention sums on contracts, included within trade receivables (Note 17)
Contract costs recognised as an expense
2006
RM
2005
RM
249,742,348
21,214,430
270,956,778
(237,968,599)
32,988,179
212,606,548
17,163,794
229,770,342
(200,698,949)
29,071,393
11,929,420
46,010,210
11,507,095
40,372,290
The costs incurred to date on construction contracts include the following charges made during the financial year:
Group
Interest expense
Rental of premises
2006
RM
2005
RM
140,933
121,503
10,363
3,900
91
20. CASH AND BANK BALANCES
Group
Cash on hand and at banks
Deposits with licensed banks
Less : Bank overdrafts (Note 21)
Cash and cash equivalents
Company
2006
RM
2005
RM
2006
RM
2005
RM
14,235,797
49,804,025
64,039,822
(20,193,987)
43,845,835
16,825,763
57,612,067
74,437,830
(7,326,086)
67,111,744
1,832,519
6,130,000
7,962,519
(501,706)
7,460,813
388,967
6,130,000
6,518,967
6,518,967
Included in cash at banks of the Group is a placement in General Investment Account which is under lien to a licensed
bank for a revolving credit facility granted to a subsidiary amounting to RM1,037,282 (2005: RM786,624) as referred
to in Note 21.
Deposits with licensed banks of the Group amounting to RM7,616,500 (2005: RM4,331,810) are pledged to banks for
credit facilities granted to certain subsidiaries as referred to in Note 21.
The weighted average interest rates and the average maturities of deposits of the Group and of the Company are
2.6% (2005: 2.9%) per annum and 30 days (2005: 30) days respectively.
21. BORROWINGS
Group
Company
2006
RM
2005
RM
2006
RM
2005
RM
20,193,987
20,112,404
3,564,155
15,711,448
1,011,063
60,593,057
6,450,655
9,596,735
4,853,142
10,445,817
1,364,829
32,711,178
501,706
2,000,000
246,110
2,747,816
246,946
246,946
Short Term Borrowings
Secured:
Bank overdrafts
Revolving credits
Bills payable and trust receipts
Term loans
Hire purchase and Al-Ijarah lease payables (Note 22)
92
- 31 JANUARY 2006
21. BORROWINGS (CONTD.)
Group
Unsecured:
Bank overdrafts
Revolving credits
Company
2006
RM
2005
RM
2006
RM
2005
RM
11,700,000
11,405,474
23,105,474
83,698,531
875,431
12,000,000
14,267,283
27,142,714
59,853,892
2,747,816
246,946
25,009,143
1,366,414
26,375,557
23,395,686
1,670,786
25,066,472
298,685
298,685
466,440
466,440
160,000,000
160,000,000
186,375,557
160,000,000
160,000,000
185,066,472
298,685
466,440
20,193,987
31,812,404
14,969,629
40,720,591
2,377,477
160,000,000
270,074,088
7,326,086
21,596,735
19,120,425
33,841,503
3,035,615
160,000,000
244,920,364
501,706
2,000,000
544,795
3,046,501
713,386
713,386
81,309,170
14,450,234
11,937,207
107,696,611
59,143,207
20,733,573
2,007,969
81,884,749
-
-
Long Term Borrowings
Secured:
Term loans
Unsecured:
Sukuk Al-Ijarah
Total Borrowings
Bank overdrafts (Note 20)
Revolving credits
Term loans
Sukuk Al-Ijarah
Maturity of borrowings (excluding hire purchase,
Al-Ijarah lease payables and Sukuk Al-Ijarah):
Within one year
More than 1 year and less than 2 years
More than 2 years and less than 5 years
93
21. BORROWINGS (CONTD.)
Group
Maturity of Sukuk Al-Ijarah:
More than 2 years and less than 5 years
More than 5 years
Company
2006
RM
2005
RM
2006
RM
2005
RM
90,000,000
70,000,000
160,000,000
60,000,000
100,000,000
160,000,000
-
-
The Group’s weighted average effective interest rates and finance cost per annum during the financial year for
borrowings, excluding hire purchase and Al-Ijarah lease payables, were as follows:
2006
%
2005
%
7.6
7.2
7.2
6.3
7.0
6.9
7.0
7.0
6.3
7.0
Bank overdrafts
Revolving credits
Term loans
Sukuk Al-Ijarah
The secured bank overdrafts, revolving credits and bills payable and trust receipt of the Group are secured by fixed
and floating charges over the deposits of certain subsidiaries as disclosed in Note 20.
The term loans are secured by first legal charge over certain leasehold and freehold land, buildings and plant and
machinery of certain subsidiaries as disclosed in Note 11.
The Group via Ingress Sukuk Berhad (“ISB”) issued RM160 million of Sukuk Al-Ijarah for the purpose of financing its
expenditure, refinance Group’s existing debts and additional working capital. The terms of the Sukuk Al-Ijarah are
as follows:
(a) All outstanding Sukuk Al-Ijarah will be redeemed in full by ISB in three (3) tranches on 8 July 2009, 8 July 2010
and 8 July 2011.
(b) The Sukuk Al-Ijarah bear the Ijarah Rental expenses in the range of 6.45% to 7.60% annually.
94
- 31 JANUARY 2006
22. HIRE PURCHASE AND AL-IJARAH LEASE PAYABLES
Group
Minimum lease payments:
Not later than 1 year
Later than 1 year and not later than 2 years
Later than 2 years and not later than 5 years
More than 5 years
Less: Future finance charges
Present value of finance lease liabilities
Present value of finance lease liabilities:
Not later than 1 year
Later than 1 year and not later than 2 years
Later than 2 years and not later than 5 years
More than 5 years
Analysed as:
Due within 12 months (Note 21)
Due after 12 months (Note 21)
Company
2006
RM
2005
RM
2006
RM
2005
RM
1,135,541
812,122
618,467
112,190
2,678,320
(300,843)
2,377,477
1,531,621
893,761
923,817
3,349,199
(313,584)
3,035,615
277,034
218,800
98,599
594,433
(49,638)
544,795
290,724
255,433
245,445
791,602
(78,216)
713,386
1,011,063
726,785
553,213
86,416
2,377,477
1,364,829
795,456
875,330
3,035,615
246,110
205,275
93,410
544,795
246,946
230,665
235,775
713,386
1,011,063
1,366,414
2,377,477
1,364,829
1,670,786
3,035,615
246,110
298,685
544,79
246,946
466,400
713,386
The hire purchase and Al-Ijarah lease payable bear interest and financing cost during the year of between 6.00% to 10.00%
(2005: 6.00% to 10.00%) per annum.
23. TRADE PAYABLES
Group
Trade payables
Retention sum
2006
RM
2005
RM
33,128,695
6,482,091
39,610,786
19,547,134
3,469,083
23,016,217
1,079,271
474,458
Included in trade payables are the following:
Due to Katayama Kogyo Co., Ltd., a foreign corporate shareholder of subsidiaries
The normal trade credit term granted to the Group ranges from 30 days to 90 days.
95
24. OTHER PAYABLES
Group
Due to subsidiaries
Due to Mitsubishi Corporation, a foreign corporate
shareholder of a subsidiary
Deposits
Accruals
Sundry payables
Company
2006
RM
2005
RM
2006
RM
2005
RM
-
-
38,984,729
34,613,448
33,565,653
138,959
1,916,321
21,538,957
57,159,890
30,249,058
140,165
1,236,211
23,021,417
54,646,851
150,974
39,135,703
116,500
34,729,948
The amounts due to subsidiaries and foreign corporate shareholder of certain subsidiaries are unsecured, interest-free and
have no fixed terms of repayment.
25. SHARE CAPITAL
Number of Ordinary
Share of RM1 Each
2006
2005
(a) Authorised:
At 1 February / 31 January
(b) Issued and fully paid:
At 1 February
Bonus issue
At 31 January
Amount
2006
RM
2005
RM
100,000,000
100,000,000
100,000,000
100,000,000
76,800,000
76,800,000
64,000,000
12,800,000
76,800,000
76,800,000
76,800,000
64,000,000
12,800,000
76,800,000
(c) Employee Share Options Scheme (“ESOS”)
The Ingress Corporation Berhad Employee Share Options Scheme (“ESOS”) is governed by the by-laws approved
by the shareholders at an Extraordinary General Meeting held on 11 February 2004 and implemented on 9 April
2004. The ESOS was granted to the eligible employees on 26 July 2004 and is to be in force for a period of 5 years
from the date of implementation.
The salient features of the ESOS are as follows:
i) The ESOS Committee appointed by the Board of Directors to administer the ESOS, may from time to time, grant
options to eligible employees of the Group to subscribe for new ordinary shares of RM1 each in the Company.
ii) Subject to the discretion of the ESOS Committee, any employee whose employment has been confirmed
and any executive directors holding office in full-time executive capacity of the Group, shall be eligible to
participate in the ESOS.
iii) The total number of shares to be issued under the ESOS shall not exceed in aggregate 10% of the issued share
capital of the Company at any point of time during the tenure of ESOS and out of which not more than 50% of the
shares shall be allocated, in aggregate, to directors and senior management. In addition, not more than 10% of
the shares available under the ESOS shall be allocated to any individual director or employee who, either singly or
collectively through his/her associates, holds 20% or more in the issued and paid-up capital of the Company.
96
- 31 JANUARY 2006
25. SHARE CAPITAL (CONTD.)
(c) Employee Share Options Scheme (“ESOS”) (Contd.)
iv) The ESOS price for each share was determined to be RM1.27.
v) All new ordinary shares issued upon the exercise of the options granted under the ESOS will rank pari passu in all
respects with the existing ordinary shares of the Company other than as may be specified in a resolution approving
the distribution of dividends prior to their exercise dates.
The ESOS outstanding as at the end of the financial year are as follows:
<------------------------------ Number of Share Options ----------------------------->
Grant
date
Expiry
date
Exercise
Price
26.7.2004
8.4.2009
1.27
1.2.2005
‘000
Granted
‘000
Exercised
‘000
Lapsed
‘000
31.1.2006
‘000
7,680
-
-
-
7,680
26. RESERVES
Group
Share premium
- non distributable
Revaluation reserves
- non distributable
Foreign exchange reserves
- non distributable
Retained profits
- distributable
Company
2006
RM
2005
RM
2006
RM
2005
RM
1,024,000
1,024,000
-
-
2,428,686
2,428,686
-
-
3,029,101
1,742,624
-
-
99,687,303
106,169,090
90,974,326
96,169,636
6,839,694
6,839,694
6,574,796
6,574,796
The detailed movement of the above are highlighted in the statement of changes in equity.
(a) Share Premium
Share premium arose from the issuance of ordinary shares at a price higher than the nominal value.
(b) Revaluation Reserve
This reserve includes the cumulative net change in fair value of land and building above their cash
consideration.
(c) Foreign Exchange Reserve
The foreign exchange reserve comprise all foreign exchange differences arising from the translation of the
financial statements of foreign subsidiaries.
97
26. RESERVES (CONTD.)
(d) Retained Profits
As at 31 January 2006, the Company has sufficient tax credit under Section 108 of the Income Tax Act, 1967
and the balance in the tax exempt account to frank the payment of dividend out of its entire retained profits.
As at 31 January 2006, the Company has tax exempt income of RM12,954,200 (2005: RM11,134,360) which can be
used to declare tax exempt dividends, subject to agreement from the Inland Revenue Board.
27. DEFERRED TAXATION
Group
Company
2006
RM
2005
RM
2006
RM
2005
RM
(10,607,504)
(10,630,643)
(21,238,147)
895,622
(11,503,126)
(10,607,504)
(501,710)
(649,790)
(1,151,500)
(267,800)
(233,910)
(501,710)
(21,505,631)
267,484
(21,238,147)
(12,061,192)
1,453,688
(10,607,504)
(1,215,882)
64,382
(1,151,500)
(684,392)
182,682
(501,710)
Accelerated
Capital
Allowances
RM
Revaluation
Surplus
RM
Total
RM
At 1 February 2005
Recognised in the income statement
At 31 January 2006
16,361,999
155,674
16,517,673
651,035
651,035
17,013,034
155,674
17,168,708
At 1 February 2004
At 31 January 2005
4,454,217
11,907,782
16,361,999
651,035
651,035
5,105,252
11,907,782
17,013,034
At 1 February
Recognised in the income statement (Note 9)
At 31 January
Presented after appropriate offsetting as follows:
Deferred tax assets
Deferred tax liabilities
Deferred Tax Liabilities of the Group:
98
- 31 JANUARY 2006
27. DEFERRED TAXATION (CONTD’)
Deferred Tax Assets of the Group:
Tax Losses
and
Unabsorbed
Capital
Allowances
RM
Others
RM
Total
RM
At 1 February 2005
At 31 January 2006
(26,581,250)
(10,786,317)
(37,367,567)
(1,039,288)
(1,039,288)
(27,620,538)
(10,786,317)
(38,406,855)
At 1 February 2004
At 31 January 2005
(3,599,344)
(22,981,906)
(26,581,250)
(610,286)
(429,002)
(1,039,288)
(4,209,630)
(23,410,908)
(27,620,538)
Deferred Tax Liabilities of the Company:
Accelerated
Capital
Allowances
RM
At 1 February 2005
At 31 January 2006
182,682
(118,300)
64,382
At 1 February 2004
At 31 January 2005
204,002
(21,320)
182,682
Deferred Tax Assets of the Company:
Tax Losses
and
Unabsorbed
Capital
Allowances
RM
Others
RM
Total
RM
At 1 February 2005
At 31 January 2006
(679,887)
(535,995)
(1,215,882)
(4,505)
4,505
-
(684,392)
(531,490)
(1,215,882)
At 1 February 2004
At 31 January 2005
(297,908)
(381,979)
(679,887)
(173,894)
169,389
(4,505)
(471,802)
(212,590)
(684,392)
99
28. DIVIDENDS
Amount
Dividend per share
2006
RM
2005
RM
2006
Sen
2005
Sen
Final
5% tax exempt dividends on 76,800,000 ordinary
shares, paid on 26 August 2004
-
3,840,000
-
5.0
shares, paid on 10 August 2005
3,840,000
-
5.0
-
2,304,000
6,144,000
3,840,000
3.0
-
Interim
shares, paid on 27 January 2006
At the forthcoming Annual General Meeting, a final ordinary tax exempt dividend in respect of the financial year ended 31
January 2006, of 4 sen per share on the share capital of 76,800,000 ordinary shares, amounting to a total dividend payment
of RM3,072,000 will be proposed for shareholders’ approval. The financial statements for the current financial year do not
reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in shareholders’
equity as an appropriation of retained profits in the financial year ending 31 January 2007.
29. COMMITMENTS
Group
Capital expenditure:
Approved and contracted for
Authorised but not contracted for
2006
RM
2005
RM
27,281,404
35,722,969
63,004,373
18,766,211
67,072,534
85,838,745
30. CONTINGENT LIABILITIES
Group
Guarantee given to financial institutions for facilities granted to subsidiaries
Secured guarantee given to financial institutions for facilities granted to subsidiaries
2006
RM
2005
RM
237,114,495
154,199,495
213,364,495
141,749,495
100
- 31 JANUARY 2006
31. SIGNIFICANT RELATED PARTY TRANSACTIONS
Group
2006
RM
2005
RM
(a) Purchases of materials by subsidiaries from:
Katayama Kogyo Co., Ltd.*
Mitsubishi Corporation**
4,040,055
5,595,960
5,723,779
4,824,820
(b) Purchases of machinery and tooling by subsidiaries from:
Mitsubishi Corporation**
1,870,650
242,338
628,577
25,655,468
(c) Advisory fees payable by subsidiaries to:
1,346,153
565,297
*
Katayama Kogyo Co., Ltd. is a foreign corporate shareholder of subsidiaries - Ingress Autoventures Co., Ltd. and
Ingress Precision Sdn. Bhd.
** Mitsubishi Corporation is a foreign corporate shareholder of a subsidiary - Ingress Autoventures Co., Ltd.
The directors are of the opinion that all the transactions above 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.
32. SIGNIFICANT EVENTS
(a) On 28 June 2005, the Group via Ingress Engineering Sdn. Bhd., entered into a Share Sale Agreement with Asia
Pacific Wing Sdn. Bhd. (“APWSB”) to acquire 942.5 ordinary shares of Indonesian Rupiah (Rp.) 1,000,000 each
of PT Bina Selaras Tradindo (“PT BST”) representing 58% equity interest in PT BST held by APWSB, for a total
consideration of Rp.1,462,500,000.
(b) On 30 June 2005, the Group via its 70% owned subsidiary, Ingress Environmental Sdn. Bhd., executed a Joint
Venture Agreement with PT Amdac, Indonesia for the purpose of regulating their relationship as shareholders in
the joint venture company known as PT Ingress Amdac Environmental. The subscription of 51% of the issued and
paid-up capital PT Ingress Amdac Environmental was completed before year end.
(c) On 19 October 2005, the Company acquired 100% equity interest in Foresight Heritage Sdn. Bhd. (“FHSB”) for a
total cash consideration of RM2.00. FHSB is currently dormant. On 1 December 2005, FHSB changed its name to
Ingress Auto Sdn. Bhd.
(d) On 27 January 2006, Ingress Environmental Sdn. Bhd. (“IEnSB”) issued 1,400,000 new ordinary shares of RM1.00
each. The Group via its subsidiary, Ingress Engineering Sdn. Bhd. subscribed to all the new shares issued for a
consideration of RM1,400,000 accordingly. The Group’s interest in IEnSB increased from 70% to 91%.
101
33. SUBSEQUENT EVENTS
(a) On 2 March 2006, the Group via its subsidiary, Ingress Engineering Sdn. Bhd. (“IESB”) entered into a Shares Sale
Agreement (“the Agreement”) with Science-Tech Solutions Sdn. Bhd. (“STS”) to acquire shares held by STS in
Ingress Environmental Sdn. Bhd. (“IEnSB”).
Pursuant to the Agreement, IESB acquired all 180,000 ordinary shares of RM1.00 each at par representing 9% of
the issued and paid up capital of IEnSB held by STS for a total consideration of RM180,000. As a result, Group’s
interest in IEnSB increased from 91% to 100%.
(b) On 8 May 2006, the Company executed a Share Sale Agreement to acquire 100% interest in Fine Components
(Thailand) Co., Ltd., a company incorporated in Thailand, for a total cash consideration of Thai Baht (“THB”)
85,000,000.
34. FINANCIAL INSTRUMENTS
(a) Financial Risk Management Objectives and Policies
The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for the
development of the Group’s businesses whilst managing its interest rate, foreign exchange, liquidity and credit risks.
The Group does not engage in speculative transactions.
(b) Interest Rate Risk
The Group’s primary interest rate risk relates to interest-bearing debt, as the Group had no substantial longterm interest-bearing assets as at 31 January 2006. The investment in financial assets are mainly short term in
nature and they are not held for speculative purposes but have been mostly placed in fixed deposits which yield
better returns than cash at bank.
The information on maturity dates and effective interest rates of financial assets and liabilities are disclosed in
their respective notes.
(c) Foreign Exchange Risk
The Group is exposed to three currencies, namely Thai Baht, Japanese Yen and Indonesian Rupiah. Foreign currency
denominated assets and liabilities together with expected cash flows from highly probable purchases and sales give
rise to foreign exchange exposures.
The net unhedged financial liability of the Group as at 31 January 2006 is approximately Yen 126.5 million (2005: Yen
1.045 billion).
As at 31 January 2006, the Group has entered into forward foreign exchange contracts amounting to RM28,066,496
(2005: RM3,558,743). Maturities of the forward foreign exchange contracts are within one year.
102
- 31 JANUARY 2006
34. FINANCIAL INSTRUMENTS (CONTD.)
(d) Liquidity Risk
The Group manages its operating cash flows and the availability of funding so as to ensure that all refinancing,
repayment and funding needs are met. As part of its overall prudent liquidity management, the Group maintains
sufficient levels of cash or cash convertible investments to meet its working capital requirements. In addition, the
Group strives to maintain available banking facilities of a reasonable level to its overall debt position.
(e) Credit Risk
At balance sheet date, there were no significant concentrations of credit risk. The maximum exposure to credit
risk is represented by the carrying amount of each financial asset in the balance sheets of the Group and of the
Company.
(f) Fair Values
The aggregate net fair values of financial assets and financial liabilities which are not carried at fair value on the
balance sheets of the Group and of the Company are represented as follows:
Group
Note
Company
Carrying
Amount
RM
Fair
Value
RM
Carrying
Amount
RM
Fair
Value
RM
Financial Liabilities
At 31 January 2006:
Term loans
Sukuk Al-Ijarah
Hire purchase and lease payables
21
21
22
40,720,591
160,000,000
2,377,477
203,098,068
40,431,281
160,230,726
1,557,000
211,311,976
544,795
544,795
529,456
529,456
At 31 January 2005:
Term loans
Sukuk Al-Ijarah
Hire purchase and lease payables
21
21
22
33,841,503
160,000,000
3,035,615
196,877,118
30,746,172
160,263,722
1,990,031
192,999,925
713,386
713,386
694,860
694,860
It is not practical to estimate the fair value of the Group’s non-current unquoted shares because of the lack of quoted
market prices and the inability to estimate fair value without incurring excessive costs. However, the Group believes
that the carrying amount represents the recoverable values.
It is also not practical to estimate the fair values of amounts due to/from subsidiaries and associates due
principally to a lack of fixed repayment term entered by the parties involved and without incurring excessive
costs.
103
34. FINANCIAL INSTRUMENTS (CONTD.)
(f) Fair Values (Contd.)
The nominal/notional amount and net fair value of the financial instruments not recognised in the balance sheet
of the Group as at the end of the financial year are:
Group
Note
At 31 January 2006:
Contingent liabilities
Forward foreign exchange contracts
30
Nominal/
National
Amount
RM
Net Fair
Value
RM
237,114,495
28,066,496
265,180,991
24,417,852
24,417,852
Group
Note
At 31 January 2005:
Contingent liabilities
Forward foreign exchange contracts
30
Nominal/
National
Amount
RM
Net Fair
Value
RM
213,364,495
3,558,743
216,923,238
3,024,931
3,024,931
It is not practicable to estimate the fair value of contingent liabilities reliably due to the uncertainties of timing,
costs and eventual outcome.
The following methods and assumptions are used to estimate the fair values of the following classes of financial
instruments:
i) Borrowings
The fair value of borrowings is estimated using discounted cash flow analysis, based on current incremental lending rates for similar types of lending and borrowing arrangements.
ii) Forward Foreign Exchange Contracts
The fair value of the forward foreign currency contracts is the estimated amount which the Group would expect
to pay or receive on the termination of the outstanding position arising from such contracts. At the end of the
financial year, the fair value of such contracts is determined by reference to the current forward exchange rate for
contracts of similar maturity profiles.
104
- 31 JANUARY 2006
35. SEGMENT INFORMATION
(a) Business Segments:
The Group is organised into two major business segments:
i) Automotive components manufacturing; and
ii) Power engineering and railway electrification.
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.
Automotive
Components
Manufacturing
2006
2005
RM
RM
REVENUE AND EXPENSES
Revenue
External sales
Inter-segment sales
Total revenue
Result
Segment results/
Profit before taxaion
Taxation
Minority interests
ASSETS AND LIABILITIES
Segment assets
Investment in equity
method of associates
Consolidated total assets
Segment liabilities
Consolidated total liabilities
OTHER INFORMATION
Capital expenditure
Depreciation
Power Engineering
and Railway
Electrification
2006
2005
RM
RM
241,268,498
25,758,423
267,026,921
173,362,043
18,851,322
192,213,365
30,234,000
2,314,788
32,548,788
32,194,304
30,068,768
12,098
843,907,223
803,500,065
-
2006
RM
Others
2005
RM
35,380,971
171,204
35,552,175
18,207,679
18,207,679
4,417,280
4,417,280
(5,916,619 )
(4,503,400)
86,608
97,816,337
79,113,000
25,464,888
-
5,586,967
2,783,496
-
531,149,772
507,392,325
71,321,000
55,134,966
25,733,530
77,213,824
44,965,816
157,410,109
31,818,546
585,412
281,894
246,662
384,178
87,689
1,592,391
Elimination
2006
2005
RM
RM
Consolidated
2006
2005
RM
RM
- 289,710,177 213,160,294
(28,073,211) (19,022,526)
(28,073,211) (19,022,526) 289,710,177 213,160,294
(13,216,016)
(9,798,417)
14,486,986
7,683,275
(7,313,284)
14,856,977
14,440,340
9,504,146
(8,911,508)
15,032,978
18,567,911 (377,752,311) (365,702,303) 589,436,137 535,478,673
-
-
-
5,586,967
2,783,496
595,023,104 538,262,169
17,195,785 (260,467,150) (255,186,247) 367,737,152 324,536,829
367,737,152 324,536,829
13,810,080
247,248
(83,362)
(147,090)
77,886,925 171,466,851
46,756,739 32,302,882
105
35. SEGMENT INFORMATION (CONTD.)
(b) Geographical Segments:
The Group operates in three major geographical areas as follows:
Malaysia
2006
2005
RM
RM
Thailand
2006
2005
RM
RM
Indonesia
2006
2005
RM
RM
Consolidated
2006
2005
RM
RM
Total revenue from external
customers
191,955,536 135,152,762
75,166,566
7,490,157
2,840,966 289,710,177 213,160,294
Segment assets
414,936,449 384,735,974 159,395,337 132,210,764
20,691,318
21,315,431 595,023,104 538,262,169
Capital
expenditure
29,627,114 121,728,730
90,264,484
46,421,214
43,407,955
1,838,597
6,330,166
77,886,925 171,466,851
106
ANALYSIS OF SHAREHOLDING
CONTENTS
Analysis of Equity Structure
108
Directors’ Interest in Shares
108
Name of Top 30 Shareholders
108 - 109
Substantial Shareholders
109
107
108
ANALYSIS OF EQUITY STRUCTURE
as at 8 May 2006
Authorised Share Capital
RM100,000,000
Issued and Fully Paid Up Capital
RM76,800,000
Class of Shares
Ordinary shares of RM1.00 each
Voting Rights
One Vote for every share
No. of Holders
Size of Shareholdings
17
Less than 100 shares
315
%
832
0.00
261,540
0.34
1001 – 10,000 shares
7,923,988
10.32
413
10,001 to 100,000 shares
10,202,240
13.28
42
100,001 to less than 5% of issued shares
28,183,040
36.70
3
5% and above of issued shares
30,228,360
39.36
Total
76,800,000
100
2,608
100 – 1,000 shares
3,399
DIRECTORS’ INTEREST IN SHARE
Name
1.
2.
3.
4.
5.
6.
7.
Total Holdings
Ab Rahim bin Husain
Ramli bin Napiah
Total
as at 8 May 2006
Direct Holdings
No.
%
Indirect Holdings
No.
%
Related
Corporation
8,602,800
1,617,600
1,044,800
571,200
12,000
12,000
-
11.20
2.11
1.36
0.74
0.02
0.02
-
15,360,000*
-
20.00
-
-
11,860,400
15.44
15,360,000
20.00
-
* Deemed interested by virtue of his shareholdings in Ramdawi Sdn Bhd
NAME OF TOP 30 SHAREHOLDERS
Name of Shareholders
1.
2.
3.
4.
Ramdawi Sdn Bhd
Employees Provident Fund Board
Lembaga Tabung Haji
as at 8 May 2006
Total Shareholdings
Percentage (%) of
Shareholdings
15,360,000
8,602,800
6,265,560
3,839,920
20.00
11.20
8.16
4.99
NAME OF TOP 30 SHAREHOLDERS
Name of Shareholders
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
Total
as at 8 May 2006
Total Shareholdings
M&A Securities Sdn Bhd
Kumpulan Wang Amanah Pencen
Ahmad Fadzil bin Mohamad
Ab Rahim bin Husain
Azura binti Abdul Halim
Bank Pembangunan Malaysia Berhad
Ramli bin Napiah
Sakinah Sharon Needle
M&A Nominee (Asing) Sdn Bhd
Kenanga Nominees (Tempatan) Sdn Bhd
Pledged securities Account for Abdul Malek bin Othman
Taman Bakti Sdn Bhd
ECM Libra Securities Nominees (Tempatan) Sdn Bhd
Bank Muamalat Malaysia Berhad for Ab Wahab bin Ismail
Amanah Raya Nominees (Tempatan) Sdn Bhd
Dana Johor
M&A Nominee (Tempatan) Sdn Bhd
Titan Express Sdn Bhd
Mayban Nominees (Tempatan) Sdn Bhd
(Mayban Trustee Berhad for Asbi Dana Al-Mubin)
Affin Nominees (Tempatan) Sdn Bhd
Pledged Securities Account for Ahmad Fadzil bin Mohamad
(AHM0113C)
Abdul Malek bin Othman
Amin Husain bin Harun
Gan Tee Jin
Mohd Yusof bin Ibrahim
Ab Wahab bin Ismail
Amanah Raya Nominees (Tempatan) Sdn Bhd
Amanah Saham Johor
Cheang Swee Kam
Lim Kew Seng
Mohd Nor bin Manap
Percentage (%) of
Shareholdings
2,962,300
2,510,100
2,185,200
1,617,600
1,547,800
1,337,000
1,044,800
794,800
607,000
3.86
3.27
2.85
2.11
2.02
1.74
1.36
1.03
0.79
576,899
572,400
571,200
0.75
0.75
0.74
550,000
0.72
536,600
0.70
480,000
0.63
468,000
0.61
449,600
417,901
414,320
410,000
380,000
350,000
0.59
0.54
0.54
0.53
0.49
0.46
328,100
318,300
276,000
252,000
0.43
0.41
0.36
0.33
56,026,200
72.96
SUBSTANTIAL SHAREHOLDERS
as at 8 May 2006
Number of Share Held
Direct Total
Indirect Total
Shareholdings
%
Shareholdings
1. Ramdawi Sdn Bhd
2. Datuk Rameli bin Musa
3. Employees Provident Fund Board
109
15,360,000
8,602,800
6,265,560
*Deemed interested by virtue of his shareholdings in Ramdawi Sdn Bhd
20.00
11.20
8.16
15,360,000*
-
%
20.00
-
110
LIST OF PROPERTIES
Location / Description
Intended /
Existing use
Approximate
age of
building
(years)
Land area /
Built-up area
(square feet)
Tenure
303,074
Leasehold for
99 years (expiry
September 2092)
Revaluation Net book Value
date
as at
31 January
2006 (RM’000)
Ingress Engineering Sdn Bhd
Nilai Industrial Estates
PT nos 2475 & 2476
HS (D) 75367 & HS (D) 75368
Mukim of Setul
District of Seremban
Negeri Sembilan Darul Khusus
Industrial land
Industrial
building
11
August
2003
5,831
August
2003
11,284
August
2003
1,454
August
2003
2,344
Strata Title for
99 years
(expiry June 2094)
August
2003
527
Freehold
April 2000
7,300
97,821
PT No 11467
HS (D) 96338
Mukim of Kajang
District of Hulu Langat
Industrial land
43,560
Industrial
building
14
24,327
Unit 17-1-1 to 17-1-14
HS (D) 75362, PT No 2193
Mukim of Setul
District of Seremban
Negeri Sembilan Darul Khusus
Staff
accomodation
12
9,562
Leasehold for
99 years (expiry
September 2086)
Ingress Technologies Sdn Bhd
Bukit Beruntung
Industrial Estates HS (D)
8183, 8184, 8186 & 8187 Lot No PT 7105,
7106, 7108 & 7109
Mukim Serendah, District of Hulu Selangor
EG-05 to EG-08, E1-05 to E1-08, E2-05 to E2-08,
E3-05 to E3-08, E4-05 to E4-08
Rose Court Block E, Bandar Bukit Sentosa
48300 Rawang, Selangor Darul Ehsan
Industrial land
365,197
Industrial
building
8
2
57,313
103,120
April 2000
October 2004*
8,492
12,128
Canteen & Prayer
room
2
9,462
January 2005*
2,614
Staff
accomodation
2
15,640
Freehold
July 2004*
220,183
Freehold
August 2003
5,092
986
Ingress Autoventures Co., Ltd
Plot No S26, (phase 11A)
Eastern Seaboard
Industrial Estates (Rayong)
off Highway 331 Pluakdaeng
District Amphur Pluakdaeng
Rayong Province, Thailand
Industrial land
Hi-Tech Industrial Estate
64/6 Moo 1
Tambol Ban Lane
Amphur Bang Pa-in
Ayutthaya 13160, Thailand
Industrial land
Industrial
building
IIndustrial
ndustrial
building
9
39,957
August 2003
3,689
2
41,269
August 2003
5,688
July 2004*
3,381
October 2004*
6,360
April 2003*
1,263
April 2003*
2,203
190,295
2
Freehold
7,529
PT Ingress Malindo Ventures
Blok GG-7A, 7B & GG-8
Jl. Industri Selatan 6A
Kawasan Industri
Jababeka Tahap II
Cikarang Selatan
17854 Bekasi, Indonesia
Note : * Acqusition date
Industrial land
Industrial
building
143,031
3
20,645
Leasehold for 30
years (expiry
March 2033)
PROXY FORM
(Before completing this from please refer to the Notes below)
111
Number of Shares held _______________________
Annual Report 2005/2006
I/We ................................................................................................................................... IC No./Passport No./Co. No. ...................................................................
(full name in capital letters)
of (Address) ................................................................................................................................................................................................................................................
being a member of INGRESS CORPORATION BERHAD, do hereby appoint ........................................................................................................................
.........................................................................................................................................................................................................................................................................
(full name in capital letters)
of (Address)..................................................................................................................................................................................................................................................
or failing him, the Chairman of the Meeting, as my/our proxy, to vote for me/us and on my/our behalf, at the Seventh Annual General
Meeting of the Company to be held at the Parameswara Ballroom, Level 2, MINES Beach Resort & Spa, Jalan Dulang, MINES Resort City,
43300 Seri Kembangan, Selangor Darul Ehsan on Monday, 10 July 2006 at 10.30 a.m. or any adjournment thereof.
My/our proxy is to vote as indicated below:For
Against
Resolution 1 AS ORDINARY BUSINESS
Receive the Directors’ Report and Audited Financial Statements for the
year ended 31 January 2006
Resolution 2 Declaration of Dividend
Resolution 3 Payment of Directors’ fees for the year ended 31 January 2006
Resolution 4 Re-election of Datuk Rameli bin Musa
Resolution 5 Re-election of Vaseehar Hassan bin Abdul Razack
Resolution 6 Re-election of Dato’ Nasir bin Yusoff under Section 129(6) Companies Act, 1965
Resolution 7 Re-appointment of Messrs Ernst & Young as the Company’s Auditor
Resolution 8 AS SPECIAL BUSINESS
Authority to issue shares pursuant to Section 132D, Companies Act, 1965
(Please indicate with “X” on the spaces provided how you wish your votes to be cast. In the absence of specific directions, your proxy
will vote or abstain from voting at his discretion.)
Dated this ______________ day of ________________2006
_________________________________________
Signature of Member(s)/Common Seal
Notes:
1. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy or proxies to attend and vote in his or her stead. A proxy may, but need not be, a member
of the Company.
2. The instrument appointing a proxy shall be in writing under the hand of appointer or his or her attorney duly appointed under a power of attorney or if such appointer is a
corporation either under its common seal or under the hand of an officer or attorney duly appointed under a power of attorney.
3. The instrument appointing a proxy must be deposited at the registered office of the Company, Lot 1M, 1st Floor, No.2, Tasik Ampang, Jalan Hulu Kelang, 68000 Ampang,
Selangor Darul Ehsan, at least forty eight (48) hours before the time appointed for holding the Meeting or any adjournment thereof.
4. Where a member appoints more than one proxy, the appointment is invalid unless the proportions of holdings represented to each proxy is specified.
5. Where the instrument appointing a proxy indicates whether a proxy is to vote for or against a resolution, the proxy shall vote in accordance with such instructions and in
default, the vote of the proxy shall not be treated as valid.
6. If the Form of Proxy is returned without any indication as to how the proxy shall vote, the proxy will vote or abstain as he or she thinks fit. If no name is inserted in the space
provided for the name of your proxy, the Chairman of the Meeting will act as your proxy.
7. Registration of Members/Proxies attending the Meeting will be from 9.00 a.m. on the day of the Meeting. Members/Proxies are required to produce their identification
documents for registration.
112
affix
postage
here
Lot 1M, 1st Floor,
No. 2, Tasik Ampang, Jalan Hulu Kelang,
68000 Ampang, Selangor Darul Ehsan,
Malaysia.
THROUGH THE www.ingresscorp.com.my
YEARS
113
‘05 / ‘06
‘04 / ‘05
‘01 / ‘02
‘00 / ‘01
‘02 / ‘03
‘03 / ‘04

kalendar peristiwa penting 2005/2006

Transcription

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