SATANG JAYA HOLDINGS BERHAD ( K) annual report 2005 laporan tahunan

Transcription

1 SATANG JAYA HOLDINGS BERHAD ( K) No. 29 & 31, Jalan Tiara 5, Bandar Baru Klang, Klang, Selangor Darul Ehsan, Malaysia. Tel : Fax : hq@satangjaya.com Website : SATANG JAYA HOLDINGS BERHAD ( K) annual report 2005 laporan tahunan

2 SATANG JAYA HOLDINGS BERHAD ( K) annual report 2005 laporan tahunan

3 VISION & MISSION 1 CORPORATE PROFILE 2 NOTICE OF ANNUAL GENERAL MEETING 4 STATEMENT ACCOMPANYING NOTICE OF ANNUAL GENERAL MEETING 6 WHOLLY-OWNED SUBSIDIARIES 10 CORPORATE STRUCTURE 11 CORPORATE INFORMATION/ BOARD OF DIRECTORS 12 BOARD OF DIRECTOR S PROFILE 14 SENIOR MANAGEMENT 22 SENIOR MANAGEMENT S PROFILE 24 CHAIRMAN S STATEMENT 31 REVIEW OF OPERATIONS 36 STATEMENT OF CORPORATE GOVERNANCE 42 AUDIT COMMITTEE REPORT 46 STATEMENT OF INTERNAL CONTROL 53 ADDITIONAL COMPLIANCE INFORMATION 55 AWARD & RECOGNITION 56 CALENDAR OF SIGNIFICANT EVENTS 58 FINANCIAL STATEMENTS 61 LIST OF PROPERTIES 125 ANALYSIS OF SHAREHOLDINGS 126 PROXY FORM contents kandungan VISI & MISI 1 PROFIL KORPORAT 3 NOTIS MESYUARAT AGUNG TAHUNAN 7 PENYATA MENGIRINGI NOTIS MESYUARAT AGUNG TAHUNAN 9 SYARIKAT-SYARIKAT SUBSIDIARI MILIK PENUH 10 STRUKTUR KORPORAT 11 MAKLUMAT KORPORAT/ LEMBAGA PENGARAH 12 PROFIL LEMBAGA PENGARAH 14 PENGURUSAN KANAN 22 PROFIL PENGURUSAN KANAN 24 PENYATA PENGERUSI 31 ULASAN OPERASI 36 PENYATA TADBIR URUS KORPORAT 44 LAPORAN JAWATANKUASA AUDIT 49 PENYATA KAWALAN DALAMAN 54 MAKLUMAT KEPATUHAN TAMBAHAN 55 ANUGERAH & PENGIKTIRAFAN 56 KALENDAR PERISTIWA-PERISTIWA PENTING 58 PENYATA KEWANGAN 93 SENARAI HARTANAH 125 ANALISA PEGANGAN SAHAM 126 BORANG PROKSI COVER RATIONALE: Satang Jaya Holdings Berhad has, over a period of 14 years, established a strong presence in the aviation and marine industry as a preferred partner to the Ministry of Defence, Malaysia and various government bodies and renowned companies in the private sector in the delivery, maintenance, repair and overhaul of safety and survival equipment. Central to our success is our ability to build long-term relationships with all our customers in the various market sectors that we serve through the delivery of quality products and superior customer satisfaction. Looking ahead, we will continue to build on our strengths in taking the Group to the next level of growth. RASIONAL KULIT: Sepanjang tempoh 14 tahun selepas penubuhannya, Satang Jaya Holdings Berhad terus mengukuhkan kedudukannya dalam industri udara dan marin sebagai rakan pilihan Kementerian Pertahanan, Malaysia serta pelbagai badan kerajaan dan syarikat-syarikat terkemuka dalam sektor penghantaran, penyenggaraan, membaikpulih dan membaikpulih utama peralatan keselamatan dan menyelamat nyawa. Keupayaan kami untuk membina perhubungan jangka panjang dengan semua pelanggan dalam pelbagai sektor pasaran melalui penyampaian produk berkualiti dan kepuasan pelanggan yang terbaik menjadi teras utama kejayaan kami. Melangkah menuju ke hadapan, kami akan terus memperkukuhkan kelebihan daya saing kami untuk menerajui Kumpulan mencapai pertumbuhan selanjutnya.

4 vision & mission/visi & misi vision to be the preferred provider of total logistics support and system integration mission To meet customer expectation by: Delivering quality products and services at competitive pricing Maintaining a high level of professionalism within its workforce visi misi untuk menjadi penyedia pilihan bagi sokongan logistik dan integrasi sistem menyeluruh Untuk memenuhi keperluan pelanggan dengan: Menyediakan produk dan perkhidmatan berkualiti pada harga yang berdaya saing Mengekalkan tahap professionalisme yang tinggi dalam tenaga kerja ANNUAL REPORT

5 corporate profile profil korporat Satang Jaya Group s history dates back to 1991 when its anchor subsidiary namely Satang Jaya Sdn Bhd was then incorporated to commence operation as a supplier of aviation toolings and spare parts and concurrently serve as an appointed representative for several Original Equipment Manufacturers (OEMs) and stockists for the aviation and aerospace industry. Apart from being the sole Maintenance, Repair and Overhaul (MRO) service provider of safety and survival equipment for the defense and aviation industry in Malaysia, Satang Jaya is also a leading supplier of equipment, accessories and spares for the defense, aviation and maritime industry. And, we have been in this industry for over a decade. In late 1995, Satang Jaya opened its first safety workshop in Shah Alam which was certified by the Department of Civil Aviation (DCA) Malaysia a year later. The turning point came when the Ministry of Defense and the Royal Malaysian Air Force (RMAF) introduced the contractorisation programme in This helped turn Satang Jaya into a maintenance, repair and overhaul service provider of safety and survival equipment for the defense, aviation and aerospace industry. Satang Jaya provides a comprehensive range of maintenance, repair and overhaul services for safety and survival equipment such as aircrew/passenger life jackets, life rafts, survival packs, emergency breathing systems, emergency parachutes, safety harnesses, aircraft arresting systems, aircraft crash and salvage equipment, ejection seats and search and rescue beacons, to name a few. Since the early 1990 s, the Group has evolved into a well-structured and well-managed company comprising one anchor subsidiary and eight subsidiaries with a network of workshops located at eleven strategic locations throughout the country. Currently, our staff strength stands at 229 personnel, of which 76 per cent are ex-servicemen with the related training, knowledge and experience. As part of the overall expansion plans, Satang Jaya is looking forward to enlarge our customer base by exploring new markets in the region by the end of this year. We intend to start with Indonesia, Philippines and Brunei as our platform to expand our presence regionally. Through a pro-active strategy, we plan to tap available business opportunities, and target our services to the Armed Forces, national airlines and low cost carriers of countries within the region. For example, just like Air Asia, there are other low budget carriers (LCCs) like Lion Air and Silk Air, who could be potential clients of ours. We have the expertise, the manpower, and the certifications that support and endorse Satang Jaya s performance levels and delivery standards. All we need to do now is to leverage on these capabilities to develop new markets overseas and to capitalize on our local presence. We are proud recipients of a series of certification from leading authorities such as the United Kingdom Accreditation System (UKAS), US Department of Transport (DOT), The Surveyor General of Ships Malaysia, the Department of Civil Aviation (DCA) Malaysia, the Royal Malaysian Air Force (RMAF) and MS ISO 9001: 2000 Certification, to name a few. Satang Jaya is also a registered member of the Malaysian Defense Industry Council (MDIC), a member of the Malaysian Aerospace Industries Association (MAIA) and the Malaysian Society for Occupational Safety and Health (MSOSH). Satang Jaya s main client is the Ministry of Defense and its related agencies. Other notable clients include The Ministry Of Transport s Department of Civil Aviation and as well as The Home Ministry s Royal Malaysian Police and the Fire and Rescue Department of The Ministry of Housing and Local Government. In the private sector, our portfolio of clients include Airod Sdn. Bhd, Air Asia Berhad, Berjaya Air Sdn. Bhd, Transmile Sdn. Bhd, Systematic Aviation Services Sdn. Bhd. Satang Jaya plans to widen the range of our products and our MRO services for safety and survival equipment to all these agencies - in an effort to broaden and increase Satang Jaya s revenue streams. In addition, Satang Jaya provides contract management and consultancy to OEMs. We also offer integrated surveillance and security systems, environmental impact assessment studies and waste management systems and disposal technology. 2 SATANG JAYA HOLDINGS BERHAD

6 Sejarah Kumpulan Satang Jaya bermula pada tahun 1991 apabila syarikat subsidiari utamanya, iaitu Satang Jaya Sdn Bhd telah diperbadankan pada masa itu untuk memulakan operasi sebagai syarikat peralatan dan alat ganti penerbangan. Pada masa yang sama ia berperanan sebagai wakil yang dilantik bagi beberapa Pengeluar Peralatan Asli (OEM) dan stokis bagi industri penerbangan dan angkasa. Di samping beroperasi sebagai satu-satunya penyedia perkhidmatan penyenggaraan, baikpulih dan baikpulih utama (MRO) bagi peralatan keselamatan dan penyelamat nyawa untuk industri pertahanan dan penerbangan di Malaysia, Satang Jaya merupakan pembekal utama peralatan, aksesori dan alat ganti industri pertahanan, penerbangan dan maritim. Kami juga telah berkecimpung dalam industri ini selama lebih satu dekad. Pada akhir tahun 1995, Satang Jaya telah membuka bengkel keselamatan pertamanya di Shah Alam yang diiktiraf oleh Jabatan Penerbangan Awam (DCA) Malaysia setahun kemudian. Titik tolak operasi Satang Jaya adalah apabila Kementerian Pertahanan dan Tentera Udara DiRaja Malaysia (TUDM) memperkenalkan program mengkontrak pada tahun Tindakan ini telah membantu mengubah Satang Jaya menjadi sebuah penyedia perkhidmatan menyenggara, membaikpulih dan membaikpulih utama bagi peralatan keselamatan dan penyelamat nyawa untuk industri pertahanan, penerbangan dan angkasa. Satang Jaya menyediakan rangkaian perkhidmatan menyenggara, membaikpulih dan membaikpulih utama yang lengkap untuk peralatan keselamatan dan menyelamat nyawa seperti, antara lain, jaket keselamatan krew / penumpang penerbangan, bot keselamatan, pek penyelamat nyawa, sistem pernafasan kecemasan, payung terjun kecemasan, talipinggang keselamatan, sistem pemberhentian pesawat, peralatan kemalangan dan menyelamat pesawat, tempat duduk pantulan kecemasan dan lampu isyarat mencari dan menyelamat. Sejak awal tahun 1990an, Kumpulan telah membangun menjadi sebuah syarikat yang tersusun dan terurus dengan baik, meliputi sebuah syarikat subsidiari utama dan lapan syarikat subsidiari dengan rangkaian bengkel yang terletak di sebelas lokasi strategik di seluruh negara. Pada masa ini, jumlah kakitangan kami adalah seramai 229 orang, di mana 76 peratus daripada mereka adalah bekas anggota keselamatan yang mempunyai latihan, pengetahuan dan pengalaman berkaitan. Sebagai sebahagian daripada rancangan pengluasan keseluruhan, Satang Jaya bersedia untuk meluaskan asas pelanggan kami dengan menerokai pasaran-pasaran baru di rantau ini menjelang akhir tahun. Kami bercadang untuk bermula dengan Indonesia, Filipina dan Brunei sebagai platform untuk mengembangkan kehadiran kami di rantau ini. Melalui strategi proaktif, kami merancang untuk memanfaatkan peluang perniagaan dan mensasarkan perkhidmatan kami kepada pasukan Angkatan Tentera, syarikat penerbangan nasional dan syarikat penerbangan kos rendah bagi negara-negara di rantau ini. Contohnya, seperti Air Asia, terdapat juga syarikat-syarikat penerbangan kos rendah (LCC) lain seperti Lion Air dan Silk Air yang boleh menjadi pelanggan potensi kami. Kami mempunyai kepakaran, tenaga manusia dan pengiktirafan yang menyokong dan mengesahkan tahap prestasi dan piawaian penyediaan perkhidmatan Satang Jaya. Apa yang kami perlu lakukan kini adalah menggunakan kemampuan tersebut sebaik mungkin untuk mewujudkan pasaran baru di luar negara dan memanfaatkan kehadiran kami di Malaysia. Kami juga berbangga menerima beberapa pengiktirafan daripada pihak-pihak berkuasa utama, antaranya seperti United Kingdom Accreditation System (UKAS), US Department of Transport (DOT), Ketua Penyelidikan Kapal-kapal Malaysia, Jabatan Penerbangan Awam (DCA) Malaysia, Tentera Udara Malaysia (TUDM) dan Pensijilan MS ISO 9001:2000. Satang Jaya juga merupakan ahli berdaftar Majlis Industri Pertahanan Malaysia (MDIC), ahli Persatuan Industri Angkasa Malaysia (MAIA) dan Persatuan Keselamatan dan Kesihatan Pekerjaan Malaysia (MSOSH). Pelanggan terbesar Satang Jaya adalah Kementerian Pertahanan dan agensi-agensi berkaitannya. Pelanggan-pelanggan utama lain termasuk Jabatan Penerbangan Awam, Kementerian Pengangkutan, Polis DiRaja Malaysia, Kementerian Dalam Negeri dan Jabatan Bomba dan Penyelamat, Kementerian Perumahan dan Kerajaan Tempatan. Portfolio pelanggan dalam sektor swasta kami termasuk Airod Sdn. Bhd., Air Asia Berhad, Berjaya Air Sdn. Bhd., Transmile Sdn. Bhd., Systematic Aviation Services Sdn. Bhd. Dalam usaha untuk meluas dan meningkatkan aliran hasil Satang Jaya, kami merancang untuk meluaskan rangkaian produk dan perkidmatan MRO kami bagi peralatan keselamatan dan penyelamat nyawa kepada semua agensi. Di samping itu, Satang Jaya juga menyediakan kontrak pengurusan dan perundingan kepada OEM dan menawarkan sistem kawalan dan keselamatan bersepadu, penyelidikan penilaian kesan alam sekitar serta sistem pengurusan bahan buangan dan teknologi pembuangan. ANNUAL REPORT

7 notice of annual general meeting NOTICE is hereby given that the Second Annual General Meeting of the Company will be held at the Banquet Hall, Kuala Lumpur Golf & Country Club (KLGCC), No. 10, Jalan Bukit Kiara, Kuala Lumpur on Tuesday, 27 December 2005 at 9.30 a.m. for the purpose of transacting the following business: AGENDA AS ORDINARY BUSINESS 1. To receive and adopt the Financial Statement of the Company for the financial year ended 30 June 2005 and the Directors and Auditors Reports thereon. (Resolution 1) 2. To declare a First and Final Dividend of 6% (less 28% income tax) in respect of the financial year ended 30 June (Resolution 2) 3. To approve payment of Directors Fees amounting to RM72, for the financial year ended 30 June (Resolution 3) 4. To re-elect the following Directors who shall retire pursuant to Article 93 of the Company s Articles of Association: (i) Col. (Hon) Jamaluddin bin Hassan RMAF (Resolution 4) (ii) En. Abdul Aziz bin Jamal (Resolution 5) (iii) En. Gan Chin Sam (Resolution 6) (iv) En. Hakim bin Sukirman (Resolution 7) (v) En. Khir Anuar bin Mohamad (Resolution 8) (vi) Lt. Col. (R) Mohd Johari bin Mohd Rais (Resolution 9) (vii) En. Ahmad Shakir Bin Ismail (Resolution 10) (viii) Prof. Dr. Mohd Isa bin Mohd Samat (Resolution 11) 5. To re-appoint Messrs. Leou & Associates as Auditors of the Company for the ensuing year and to authorise the Directors to fix their remuneration. (Resolution 12) AS SPECIAL BUSINESS 6. To consider and, if thought fit, pass the following resolutions: ORDINARY RESOLUTION (a) Authority for Allotment of Shares THAT, subject always to the Companies Act, 1965 and the approvals of the relevant governmental and/or regulatory authorities, the Directors be and are hereby empowered, pursuant to Section 132D of the Companies Act, 1965, to issue shares in the Company from time to time at such price, upon such terms and conditions, for such purposes and to such person and persons whomsoever as the Directors may deem fit provided that the aggregate number of shares issued in any one financial year of the Company pursuant to this resolution does not exceed 10% of the issued share capital of the Company for the time being and that the Directors be also empowered to obtain the approval for the listing and the quotation of the additional shares so issued on Bursa Malaysia Securities Berhad and that such authority shall continue in force until the conclusion of the next Annual General Meeting of the Company. (Resolution 13) 4 SATANG JAYA HOLDINGS BERHAD

8 7. To transact any other business of which due notice shall be given in accordance with the Articles of Association of the Company and the Companies Act, NOTICE OF DIVIDEND ENTITLEMENT NOTICE IS HEREBY GIVEN that subject to the approval of the shareholders at the Second Annual General Meeting, the First and Final Dividend of 6 % (less 28% income tax) in respect of the financial year ended 30 June 2005 will be payable on 23 January 2006 to depositors registered in the Record of Depositors on 3 January A depositor shall qualify for the entitlement only in respect of : (a) (b) Shares transferred to the depositors securities account before 4.00 p.m. on 3 January 2006 in respect of ordinary shares; and Shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of the Bursa Malaysia Securities Berhad. By Order of the Board, CHIN KIM FUNG (LS:00234) Secretary Kuala Lumpur Date : 5 December 2005 Notes: 1. A member of the Company entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend and vote in his/her stead. A proxy may but need not be a member of the Company and the provisions of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company. 2. Where a member appoints more than one (1) proxy, the appointment shall be invalid unless he/she specifies the proportions of his/her shareholdings to be represented by each proxy. 3. The instrument appointing a proxy shall be in writing under the hand of the appointor or of his/her attorney duly authorised in writing, or if the appointor is a corporation, either under the corporation s common seal or under the hand of an officer or attorney duly authorised. 4. The instrument appointing a proxy and the power of attorney or other authority, if any, under which it is signed or a notarially certified copy of that power or authority, must be deposited at the Registered Office of the Company at 149A, Jalan Aminuddin Baki, Taman Tun Dr. Ismail, Kuala Lumpur not less than forty-eight (48) hours before the time appointed for holding the Meeting or any adjourned meeting, as the case may be. 5. Explanatory note on Special Business : (a) The Ordinary Resolution 13 proposed under item No. 5 (a), if passed, will authorise the Directors of the Company to issue shares up to a maximum ten per cent (10%) of the issued share capital of the Company for the time being for such purposes as the Directors consider would be in the interest of the Company. This authority unless revoked or varied by the Company at a general meeting will expire at the next Annual General Meeting. ANNUAL REPORT

9 statement accompanying notice of annual general meeting DATE : 27 December 2005, Tuesday TIME : 9.30 a.m. VENUE : Banquet Hall, Kuala Lumpur Golf & Country Club (KLGCC), No.10, Jalan 1/70D, Off Jalan Bukit Kiara, Kuala Lumpur A) Directors standing for re-election pursuant to Article 93 of the Company s Articles of Association are:- 1. Col. (Hon) Jamaluddin bin Hassan RMAF 2. En. Abdul Aziz bin Jamal 3. Mr. Gan Chin Sam 4. En. Hakim bin Sukirman 5. En. Khir Anuar bin Mohamad 6. Lt. Col. (R) Mohd Johari bin Mohd Rais 7. En. Ahmad Shakir bin Ismail 8. Prof. Dr. Mohd Isa bin Mohd Samat B) Attendance of Directors at Board Meetings held during the financial year ended 30 June 2005 and other additional information on the Board of Directors are set out in the Statement of Corporate Governance on pages 42 and 43 and on Profile of Directors from pages 14 to 21 of this Annual Report. C) Details of Directors standing for re-election:- The details of the Directors standing for re-election under the Company s Articles of Association are disclosed under the Board of Directors profiles from pages 14 to 21 of this Annual Report. The shareholdings of these Directors are disclosed under the Analysis of Shareholdings on pages 126 and 127 of this Annual Report. 6 SATANG JAYA HOLDINGS BERHAD

10 notis mesyuarat agung tahunan NOTIS dengan ini diberikan bahawa Mesyuarat Agung Tahunan Kedua Syarikat akan diadakan di Banquet Hall, Kuala Lumpur Golf & Country Club (KLGCC), No. 10, Jalan Bukit Kiara, Kuala Lumpur pada hari Selasa, 27 Disember 2005 jam 9.30 pagi bagi tujuan menjalankan urusan berikut: AGENDA SEBAGAI URUSAN BIASA 1. Untuk menerima dan meluluskan Penyata Kewangan Syarikat bagi tahun kewangan berakhir 30 Jun 2005 bersama dengan Laporan Pengarah dan Laporan Juruaudit mengenainya. (Resolusi 1) 2. Untuk mengisytiharkan Dividen Pertama dan Akhir sebanyak 6% (ditolak 28% cukai pendapatan) bagi tahun kewangan berakhir 30 Jun (Resolusi 2) 5. Untuk melantik semula Tetuan Leou & Associates sebagai Juruaudit Syarikat bagi tahun berikutnya dan memberi kuasa kepada para Pengarah untuk menetapkan bayaran mereka. (Resolusi 12) SEBAGAI URUSAN KHAS 6. Untuk mempertimbangkan dan jika difikirkan sesuai, meluluskan resolusi-resolusi berikut: RESOLUSI BIASA 3. Untuk meluluskan Yuran Para Pengarah berjumlah RM72, bagi tahun kewangan berakhir 30 Jun (Resolusi 3) 4. Untuk memilih semula para Pengarah berikut yang akan bersara menurut Artikel 93 Tataurusan Pertubuhan Syarikat: (i) Kol. (Kehormat) Jamaluddin bin Hassan TUDM (Resolusi 4) (ii) En. Abdul Aziz bin Jamal (Resolusi 5) (iii) En. Gan Chin Sam (Resolusi 6) (iv) En. Hakim bin Sukirman (Resolusi 7) (v) En. Khir Anuar bin Mohamad (Resolusi 8) (vi) Lt. Kol. (B) Mohd Johari bin Mohd Rais (Resolusi 9) (vii) En. Ahmad Shakir bin Ismail (Resolusi 10) (viii) Prof. Dr. Mohd Isa bin Mohd Samat (Resolusi 11) (a) Kuasa untuk memperuntuk Saham "BAHAWA, lazimnya menurut Akta Syarikat, 1965 dan kelulusan pihak berkuasa kerajaan dan/atau pihak berkuasa peraturan, para Pengarah adalah dan dengan ini diberi kuasa menurut Seksyen 132D Akta Syarikat, 1965, untuk menerbit saham dalam Syarikat dari masa ke masa pada harga tertentu, berasaskan terma dan syarat tertentu, bagi tujuan tertentu dan kepada pihak tertentu dan pihak yang mana para Pengarah fikirkan sesuai dengan syarat bilangan agregat saham yang diterbitkan pada bilabila masa dalam satu tahun kewangan Syarikat menurut resolusi ini tidak melebihi 10% daripada modal saham terbitan Syarikat pada masa ini dan para Pengarah turut diberi kuasa untuk mendapatkan kelulusan bagi penyenaraian dan sebut harga saham tambahan yang akan diterbitkan itu di Bursa Malaysia Securities Berhad dan kuasa tersebut tetap berterusan sehingga tamat Mesyuarat Agung Tahunan akan datang." (Resolusi 13) ANNUAL REPORT

11 notis mesyuarat agung tahunan 7. Untuk melaksanakan sebarang urusan lain yang notis sewajarnya diberikan selaras dengan Tataurusan Pertubuhan Syarikat dan Akta Syarikat, NOTIS KELAYAKAN DIVIDEN Seseorang pendeposit hanya layak untuk menerima dividen bagi : (a) Saham-saham yang dipindahkan ke dalam akaun sekuriti pendeposit sebelum jam 4.00 petang pada 3 Januari 2006 bagi saham-saham biasa; dan NOTIS DENGAN INI DIBERI bahawa tertakluk kepada kelulusan pemegang saham di Mesyuarat Agung Tahunan Kedua, Dividen Pertama dan Akhir sebanyak 6 % (ditolak 28% cukai pendapatan) bagi tahun kewangan berakhir 30 Jun 2005 akan dibayar pada 23 Januari 2006 kepada pendeposit yang berdaftar di dalam Rekod Pendeposit pada 3 Januari (b) Saham-saham yang dibeli di Bursa Malaysia Securities Berhad berserta hak kelayakan menurut Peraturan Bursa Malaysia Securities Berhad. Dengan Perintah Lembaga Pengarah, CHIN KIM FUNG (LS:00234) Setiausaha Kuala Lumpur Tarikh : 5 Disember 2005 Nota-nota: 1. Seseorang ahli Syarikat yang berhak menghadiri dan mengundi di mesyuarat ini berhak untuk melantik seorang atau lebih proksi-proksi untuk menghadiri dan mengundi bagi pihaknya. Seorang proksi boleh tetapi tidak semestinya ahli Syarikat dan peruntukan Seksyen 149(1)(b) Akta Syarikat, 1965 tidak boleh digunakan kepada Syarikat 2. Apabila seseorang ahli melantik lebih daripada seorang (1) proksi, pelantikan tersebut tidak sah melainkan beliau menyatakan bahagian pegangan saham beliau yang hendak diwakili oleh setiap proksi. 3. Suratcara pelantikan seseorang proksi hendaklah dibuat secara bertulis dan ditandatangani oleh pelantik atau peguam beliau yang diberi kuasa secara bertulis, atau jika pelantik itu sebuah perbadanan, sama ada di bawah meterai rasmi perbadanan atau ditandatangani seorang pegawai atau peguam yang diberi kuasa secara bertulis. 4. Suratcara pelantikan seorang proksi dan kuasa wakil atau pihak berkuasa lain, jika ada, yang ditandatangani atau merupakan salinan yang disahkan bagi kuasa atau kebenaran tersebut, perlu dihantar ke Pejabat Berdaftar Syarikat di 149A, Jalan Aminuddin Baki, Taman Tun Dr. Ismail, Kuala Lumpur tidak kurang dari empat puluh lapan (48) jam sebelum waktu yang dijadualkan untuk mengadakan Mesyuarat atau pada sebarang penangguhan mesyuarat, jika ada. 5. Nota-nota Penjelasan mengenai Urusan Khas : (a) Resolusi Biasa 13 yang dicadangkan di bawah perkara No. 5 (a), jika diluluskan, akan memberi kuasa kepada para Pengarah Syarikat untuk menerbitkan saham sehingga ke tahap maksimum sepuluh peratus (10%) daripada saham modal terbitan Syarikat pada masa ini bagi tujuan yang menurut pertimbangan Pengarah adalah untuk kepentingan Syarikat. Kecuali ditarik balik atau diubah, kuasa ini akan tamat pada Mesyuarat Agung Tahunan akan datang. 8 SATANG JAYA HOLDINGS BERHAD

12 penyata mengiringi notis mesyuarat agung tahunan TARIKH : 27 Disember 2005, Selasa MASA : 9.30 pagi. TEMPAT : Banquet Hall, Kuala Lumpur Golf & Country Club (KLGCC), No.10, Jalan 1/70D, Off Jalan Bukit Kiara, Kuala Lumpur A) Para Pengarah yang bersedia untuk pemilihan semula menurut Artikel 93 Tataurusan Pertubuhan Syarikat adalah:- 1. Kol. (Hon) Jamaluddin bin Hassan TUDM 2. En. Abdul Aziz bin Jamal 3. En. Gan Chin Sam 4. En. Hakim bin Sukirman 5. En. Khir Anuar bin Mohamad 6. Lt. Kol. (B) Mohd Johari bin Mohd Rais 7. En. Ahmad Shakir bin Ismail 8. Prof. Dr. Mohd Isa bin Mohd Samat B) Kehadiran para Pengarah di Mesyuarat Lembaga Pengarah yang diadakan ketika tahun kewangan berakhir 30 Jun 2005 dan maklumat tambahan lain mengenai Lembaga Pengarah dinyatakan dalam Penyata Tadbir Urus Korporat di muka surat 44 dan 45 dan Profil Para Pengarah dari muka surat 14 hingga 21 Laporan Tahunan ini. C) Maklumat para Pengarah yang bersedia untuk pemilihan semula:- Maklumat para Pengarah yang bersedia untuk pemilihan semula di bawah Tataurusan Pertubuhan Syarikat dinyatakan di bawah profil Lembaga Pengarah dari muka surat 14 hingga 21 Laporan Tahunan ini. Pegangan saham para Pengarah ini dinyatakan di bawah Analisis Pegangan Saham di muka surat 126 dan 127 Laporan Tahunan ini. ANNUAL REPORT

13 Wholly-owned Subsidiaries, Subsidiary & Associate Syarikat-syarikat Subsidiari milik penuh, Subsidiari & Bersekutu WHOLLY-OWNED SUBSIDIARIES SYARIKAT-SYARIKAT SUBSIDIARI MILIK PENUH Satang Jaya Sdn Bhd ( V) Distribution and supply of defence, commercial aviation and marine equipment and accessories, contract management and consultant to Original Equipment Manufacturers (OEM) and investment holding. Pengedaran dan pembekalan kelengkapan dan aksesori pertahanan, penerbangan komersial dan marin serta aksesori, pengurusan kontrak dan juru perunding kepada Pengeluar Peralatan Asli (OEM) dan pemegang pelaburan. SAR Services (M) Sdn Bhd ( D) Maintenance, repairs and overhaul of safety and survival equipments. Penyelenggaraan, pembaikan dan membaikpulih kelengkapan keselamatan dan survival. Satang Services Sdn Bhd ( K) Maintenance, repairs and overhaul of aviation ground support safety equipments and related accessories. Penyelenggaraan, pembaikan dan membaikpulih kelengkapan keselamatan sokongan lapangan penerbangan dan aksesori berkaitan. MSJ Technical Support Sdn Bhd ( W) Maintenance, repairs and overhaul of aviation electronics safety equipments and electro-mechanical related accessories. Penyelenggaraan, pembaikan dan membaikpulih kelengkapan keselamatan elektronik penerbangan dan aksesori berkaitan elektro-mekanikal. Satang Cylinder Services Sdn Bhd ( H) Maintenance, repairs and overhaul of aviation related cylinders that include servicing, inspection, recycling and refilling of gas and other related services. Penyelenggaraan, pembaikan dan membaikpulih silinder berkaitan penerbangan iaitu meliputi perkhidmatan menservis, pemeriksaan, kitaran semula dan isian semula gas dan lain-lain perkhidmatan berkaitan. Satang Environmental Sdn Bhd ( V) Supplying and distribution of environmental product, providing consultancy, training and seminar in respect of Environment Management System and other related services. Membekal dan mengedar produk environmen, perkhidmatan perundingan, latihan dan seminar berkenaan Sistem Pengurusan Environmen dan lain-lain perkhidmatan berkaitan. Satang Hi-Tech Security Sdn Bhd ( M) Providing consultancy and solution services and implementing of high-tech and integrated surveillance security system and its related services. Perkhidmatan perundingan dan penyelesaian serta melaksanakan sistem keselamatan pengawasan bersepadu yang melibatkan teknologi tinggi serta lain-lain perkhidmatan berkaitan. Triopoint (M) Sdn Bhd ( M) Supplying of defence and aviation equipment and accessories. Pembekalan kelengkapan pertahanan dan penerbangan serta aksesori-aksesori. SUBSIDIARY/SUBSIDIARI Port Marine Safety Services Sdn Bhd ( W) Supplying and maintenance of marine safety and survival equipment and accessories. Pembekalan dan penyelenggaraan kelengkapan keselamatan dan survival marin serta aksesoriaksesori. ASSOCIATE/BERSEKUTU The Industrial and Scientific Co Sdn Bhd (29115-X) Importing and distributing of all industrial, scientific and marine products and LPG and also maintenance of safety and survival aviation and marine equipments. Mengimport dan mengedar semua produk perindustrian, saintifik dan marin serta LPG dan juga penyelenggaraan kelengkapan keselamatan dan survival penerbangan dan marin. 10 SATANG JAYA HOLDINGS BERHAD

14 corporate structure struktur korporat SATANG JAYA HOLDINGS BHD 100% SAR SERVICES (M) SDN BHD 100% SATANG JAYA SDN BHD 100% SATANG SERVICES SDN BHD 100% MSJ TECHNICAL SUPPORT SDN BHD 50% 50% PORT MARINE SAFETY SERVICES SDN BHD 100% SATANG CYLINDER SERVICES SDN BHD 38% THE INDUSTRIAL & SCIENTIFIC CO SDN BHD 100% SATANG ENVIRONMENTAL SDN BHD 99.9% SATANG HI-TECH SECURITY SDN BHD 100% TRIOPOINT (M) SDN BHD ANNUAL REPORT

15 corporate information maklumat korporat BOARD OF DIRECTORS LEMBAGA PENGARAH Colonel (Honorary) Jamaluddin bin Hassan RMAF Executive Chairman/Managing Director Pengerusi Eksekutif/Pengarah Urusan Abdul Aziz bin Jamal Executive Director/Pengarah Eksekutif Gan Chin Sam Executive Director/Pengarah Eksekutif Major (R) Hakim bin Sukirman RMAF Executive Director/Pengarah Eksekutif Khir Anuar bin Mohamad Executive Director/Pengarah Eksekutif Ahmad Shakir bin Ismail Independent Non-Executive Director/ Pengarah Bukan Eksekutif Bebas Lt. Colonel (R) Mohd Johari bin Mohd Rais Independent Non-Executive Director/ Pengarah Bukan Eksekutif Bebas Prof. Dr. Mohd Isa bin Mohd Samat Independent Non-Executive Director/ Pengarah Bukan Eksekutif Bebas COMPANY SECRETARY SETIAUSAHA SYARIKAT board of directors lembaga pengarah Chin Kim Fung (LS:00234) 12

16 REGISTERED OFFICE PEJABAT BERDAFTAR 149A, Jalan Aminuddin Baki Taman Tun Dr. Ismail Kuala Lumpur Tel : Fax : edzone@po.jaring.my CORPORATE OFFICE PEJABAT KORPORAT 29 & 31, Jalan Tiara 5 Bandar Baru Klang Klang Selangor Darul Ehsan Tel : Fax : hq@satangjaya.com Website : REGISTRAR PENDAFTAR Insurban Corporate Services Sdn Bhd (76260-W) 149, Jalan Aminuddin Baki Taman Tun Dr. Ismail Kuala Lumpur Tel : Fax : AUDITORS JURUAUDIT Leou & Associates AF No: Chartered Accountants 107B, Jalan Aminuddin Baki Taman Tun Dr. Ismail Kuala Lumpur Tel : Fax : BANKER BANK Malayan Banking Berhad (3813-K) LISTING PENYENARAIAN Second Board of Bursa Malaysia Securities Berhad Papan Kedua Bursa Malaysia Securities Berhad From left to right/dari kiri ke kanan: Gan Chin Sam Lt. Colonel (R) Mohd Johari Bin Rais Colonel (Honorary) Jamaluddin Bin Hassan RMAF Abdul Aziz Bin Jamal Prof. Dr. Mohd Isa Bin Mohd Samat Khir Anuar Biri Mohamad Ahmad Shakir Bin Ismail Major (R) Hakim Bin Sukirman 13

17 board of director s profile profil lembaga pengarah Colonel (Honorary) Jamaluddin Bin Hassan RMAF Executive Chairman/ Pengerusi Ekesekutif COLONEL (HONORARY) JAMALUDDIN BIN HASSAN RMAF, a Malaysian aged 45, was appointed to the Board of SJHB as Executive Chairman and Managing Director on 3 January He is the founder member and Managing Director of SJSB since He graduated from Universiti Teknologi Mara ( UiTM ) in Business Studies. He served in the Royal Military Air Force (RMAF) for thirteen (13) years, specialising in Explosives, Ammunitions & Weapon Systems. He started his career in the RMAF as a Cadet Officer and was appointed as Office-in-Charge of Debkat in Airod. After attending a Supply Officer Explosives Course in United Kingdom, he was appointed as Officer-in-charge of Ammo Sub Depot in Kuantan and also held the post of Commanding Officer of Base Ammo Terminal in Labuan. His last appointment held was as Staff Officer in the Ministry of Defence (MOD) for the Planning & Procurement of Explosives, Ammunitions and Weapon Systems, aviation fuel and lubricants. En. Colonel (Honorary) Jamaluddin Bin Hassan RMAF is responsible to manage and administrate control of the overall operations of SJHB Group, including the basic resources of financial and capital facilities, equipment and manpower. In addition, he is also responsible to set and direct the SJHB Group s operations and development along with its goals, objectives, policies, standards and quality systems. He is also actively involved in several committees of several non-profit making organisations and sports club especially rugby. KOLONEL (KEHORMAT) JAMALUDDIN BIN HASSAN TUDM, warga Malaysia berusia 45 tahun, dilantik ke Lembaga SJHB sebagai Pengerusi Eksekutif dan Pengarah Urusan pada 3 Januari Beliau merupakan ahli pengasas dan Pengarah Urusan SJSB sejak tahun Beliau adalah graduan lepasan dari Universiti Teknologi Mara ( UiTM ) dalam Kajian Pengurusan Perniagaan. Beliau berkhidmat dengan TUDM selama tigabelas (13) tahun, dengan mengkhusus dalam Sistem Letupan, Ubat Bedil & Senjata. Beliau berkhidmat dengan TUDM sebagai Pegawai Kadet dan dilantik sebagai Ketua Pegawai Bertugas Debkat di Airod. Selepas menghadiri Kursus Pegawai Bekalan Letupan di United Kingdom, beliau dilantik sebagai Ketua Pegawai Bertugas Ammo Sub Depot di Kuantan dan juga memegang jawatan Pegawai Perintah Base Ammo Terminal di Labuan. Jawatan akhir yang disandangnya adalah Pegawai Kakitangan di Kementerian Pertahanan (KEMENTAH) untuk Perancangan dan Perolehan Sistem Letupan, Ubat Bedil, Senjata dan Pelincir, dan Minyak Penerbangan. Kolonel (Kehormat) Jamaluddin bin Hassan TUDM bertanggungjawab untuk menguruskan dan mentadbir kawalan ke atas keseluruhan kendalian Kumpulan SJHB, termasuk sumber-sumber asas kemudahan kewangan dan modal, kelengkapan dan tenaga buruh. Selain itu, beliau juga bertanggungjawab untuk menyusun dan mengarah kendalian dan pembangunan Kumpulan SJHB bersama dengan matlamat, objektif, polisi, piawaian dan sistem kualitinya. Beliau juga bergiat dengan aktif dalam beberapa jawatankuasa organisasi tidak beruntung dan kelab sukan terutamanya permainan ragbi. 14 SATANG JAYA HOLDINGS BERHAD

18 Abdul Aziz Bin Jamal Executive Director/ Pengarah Eksekutif ABDUL AZIZ BIN JAMAL, a Malaysian aged 46, was appointed to the Board of SJHB as Executive Director on 3 January He is the founder member and the Executive Director of SJSB since He graduated from Universiti Teknologi Mara (UiTM) with a Diploma in Accountancy. He served in the Royal Military Air Force (RMAF) for thirteen (13) years, specialising in Aerospace Support Systems. He started his career as a Cadet Officer and was appointed as Received and Despatch Officer in the RMAF Sungai Besi base prior to his sabbatical to pursue his Diploma studies. He was posted to the Ministry of Defence (MOD) after his graduation where he was overseeing the MOD s administration of the Foreign Military Sales (FMS) Program, supporting the F-5 and C-130 aircrafts total logistic support. The program was between Malaysian Government and United States of America Government specifically, the US Air Force and the US Navy. He left the service in 1991 and joined En. Jamaluddin and Mr. Gan Chin Sam in setting up the SJHB Group. He is responsible to develop and prepare budgets, plans, and program for the development and maintenance of finance departments and develop corporate goals, objectives and policies for SJSB. ABDUL AZIZ BIN JAMAL, warga Malaysia berusia 46 tahun, dilantik ke Lembaga SJHB sebagai Pengarah Eksekutif pada 3 Januari Beliau adalah ahli pengasas dan Pengarah Eksekutif SJSB sejak tahun Beliau menerima ijazah dari Universiti Teknologi Mara (UiTM) dengan Diploma Perakaunan. Beliau berkhidmat dengan Tentera Udara DiRaja Malaysia (TUDM) untuk tiga belas (13) tahun, mengkhusus dalam Sistem Sokongan Ruang Angkasa Lepas. Beliau memulakan kerjayanya sebagai Pegawai Kadet dan dilantik sebagai Pegawai Penerima dan Penghantar di bes TUDM Sungai Besi sebelum beliau meneruskan pengajian diploma. Beliau dihantar ke Kementerian Pertahanan (KEMENTAH) selepas pengijazahannya di mana beliau memantau pentadbiran KEMENTAH Program Jualan Ketenteraan Asing (FMS), menyokong jumlah logistik pesawat udara F-5 dan C-130. Program tersebut adalah di antara Kerajaan Malaysia dan Kerajaan Amerika Syarikat, khususnya, Tentera Udara Amerika dan Angkatan Laut Amerika. Beliau meninggalkan perkhidmatan ini pada tahun 1991 dan menyertai Kolonel (Kehormat) Jamaluddin bin Hassan TUDM dan En. Gan Chin Sam dalam membentuk Kumpulan SJHB. Beliau bertanggungjawab untuk membangun dan menyediakan belanjawan, rancangan dan program untuk pembangunan dan penyelenggaraan-penyelenggaraan jabatan kewangan dan membangunkan matlamat, objektif dan dasar korporat SJHB. ANNUAL REPORT

19 board of director s profile profil lembaga pengarah Gan Chin Sam Executive Director/ Pengarah Eksekutif GAN CHIN SAM, a Malaysian aged 47, was appointed to the Board of SJHB as Executive Director on 3 January He is the founder member of SJSB. He started his career as a Marketing Executive and having gained the relevant experience, he began to focus his marketing potential in the Hardware Engineering Industry. Having obtained the valuable experience in finance and marketing, he teamed up with the other founder members of SJHB Group to venture into the sales, supplies, repairs, services and maintenance of defence & commercial aviation and ground support equipments and accessories. His valuable experience and foresight has enabled him to steer the corporate service department as the driving force behind the Group growth and future expansion. He also sits on the board of several private limited companies. GAN CHIN SAM, warga Malaysia berusia 47 tahun, dilantik ke Lembaga SJHB sebagai Pengarah Eksekutif pada 3 Januari Beliau adalah ahli pengasas SJSB. Beliau memulakan kerjayanya sebagai Eksekutif Pemasaran dan setelah memperolehi pengalaman yang secukupnya, beliau mula memberi tumpuan kepada potensi pemasaran beliau dalam Industri Kejuruteraan Perkakasan. Setelah memperolehi pengalaman dalam kewangan dan pemasaran, beliau bersepasukan dengan ahli pengasas Kumpulan SJHB yang lain, untuk mengusaha niaga dalam jualan, bekalan, pembaikan, perkhidmatan dan penyelenggaraan kelengkapan penerbangan dan sokongan lapangan pertahanan dan komersial dan aksesori. Pengalaman dan kebolehan meramal beliau membolehkannya mengurus bahagian perkhidmatan korporat Kumpulan menjadi kuasa pandu pertumbuhan dan pengembangan masa depan Kumpulan. Beliau juga menduduki jawatan di lembaga beberapa syarikat sendirian berhad. 16 SATANG JAYA HOLDINGS BERHAD

20 Major (R) Hakim Bin Sukirman Executive Director/ Pengarah Eksekutif HAKIM BIN SUKIRMAN, a Malaysian aged 46, was appointed to the Board of SJHB as Executive Director on 3 January He is also the Engineering Director of SJSB since He graduated from Universiti Teknologi Malaysia ( UTM ) in Mechanical Engineering discipline. He has seventeen (17) years of service experience with the Royal Military Air Force (RMAF) in the Engineering Department and has served in various engineering appointments such as the RMAF s Plant Representative at the Airod facility as Engineering Officer-in-Charge of aircraft repairs, servicing and engine overhauls, served at the RMAF Subang Base Engineering Officer in Maritime Squadron overseeing the PC-130 aircrafts, member of the RMAF Radar Project Team based in Marconi Radar (UK) in Chelmsford ( Marconi ) for five years, the RMAF HQ 3rd Air Division as Staff Officer (SO) 1 and System Group E as system manager for aerospace group support equipment/vehicle and safety and survival equipment. He left the RMAF service in 1995 and joined Aerospace Technology Systems Corp (ATSC), a Government owned company responsible for the Second Line Maintenance of MiG-29 aircrafts. He attended formal courses such as Aircraft Fabrication and Repair Course at Air Asian Taiwan, Quality Control and Production Control Course and Computer Programming at Institute Technology Mara while he was still serving the Air Force. He oversees the development and the setting up of the company facilities with regard to its technical aspect. His vast experience working with established companies such as Airod, Marconi and ATSC will strengthen the Engineering team of SJSB. HAKIM BIN SUKIRMAN, warga Malaysia berusia 46 tahun, dilantik ke Lembaga SJHB sebagai Pengarah Eksekutif pada 3 Januari Beliau juga adalah Pengarah Kejuruteraan SJSB sejak tahun Beliau adalah lepasan dari Universiti Teknologi Malaysia ( UTM ) dalam bidang Kejuruteraan Mekanikal. Beliau mempunyai pengalaman perkhidmatan selama tujuhbelas (17) tahun dengan Tentera Udara DiRaja Malaysia (TUDM) dalam Jabatan Kejuruteraan dan berkhidmat dalam pelbagai jawatan kejuruteraan seperti Wakil Loji TUDM di kemudahan Airod sebagai Pegawai Kejuruteraan bagi pembaikan, servis pesawat udara dan baik pulih enjin, berkhidmat di bes TUDM Subang sebagai Pegawai Kejuruteraan dalam Kumpulan Kelautan memantau pesawat udara PC-130, ahli Pasukan Projek Radar TUDM berpangkalan di Marconi Radar (UK) di Chelmsford ( Marconi ) untuk lima tahun, Bahagian Udara Ke 3 TUDM sebagai Pegawai Kakitangan (SO) 1 dan Kumpulan E Sistem sebagai pengurus sistem untuk kelengkapan/kenderaan sokongan dan kelengkapan keselamatan dan survival. Beliau meninggalkan perkhidmatan TUDM pada tahun 1995 dan menyertai Aerospace Technology Systems Corp (ATSC), sebuah syarikat milik Kerajaan bertanggungjawab untuk Penyelenggaraan Bahagian Kedua pesawat udara MiG-29. Beliau mengikuti kursus formal seperti Kursus Fabrikasi dan Pembaikan Pesawat Udara di Air Asian Taiwan, Kursus Kawalan Kualiti dan Kawalan Pengeluaran dan Pemprograman Komputer di Institut Teknologi Mara sementara beliau masih berkhidmat dengan Tentera Udara. Beliau memantau perkembangan dan pengaturan kemudahan syarikat dalam aspek teknikal. Beliau mempunyai pengalaman luas bekerja dengan syarikat maju seperti Airod, Marconi dan ATSC akan mengukuhkan pasukan Kejuruteraan SJSB. ANNUAL REPORT

21 board of director s profile profil lembaga pengarah Khir Anuar Bin Mohamad Executive Director/ Pengarah Eksekutif KHIR ANUAR BIN MOHAMAD, a Malaysian aged 46, was appointed to the Board of SJHB as Executive Director on 3 January He is also the General Manager of Corporate Services of SJSB since He graduated with an Advanced Diploma in Accountancy from Universiti Teknologi Mara (UiTM) in 1987 and is a Registered Member of the Malaysia Institute of Accountants since He started his career with MARA Institute of Technology as an Assistant Bursar in In 1990, he joined The National Sports Council of Malaysia ( NSC ) as an Accountant to head the Finance Department. He received the Excellent Service Award in 1993 for his outstanding achievement in NSC. During his attachment with NSC, he gained experience in handling various international and sporting assignments. In 1995, he joined the Automobile Association of Malaysia ( AAM ) as the Group General Manager. He again showed his admirable performance and leadership skills where he was successful in the restructuring of AAM to streamline its organisation and improve its membership registration. He joined SJSB in 2000 and is responsible for the overall running of the Accounts and Finance Department. KHIR ANUAR BIN MOHAMAD, warga Malaysia berusia 46 tahun, dilantik ke Lembaga SJHB sebagai Pengarah Eksekutif pada 3 Januari Beliau juga adalah Pengurus Besar Perkhidmatan Korporat SJSB sejak tahun Beliau menerima ijazah Diploma Lanjutan Perakaunan dari Universiti Teknologi Mara (UiTM) pada tahun Beliau adalah Akauntan Bertauliah dan ahli Institut Akauntan Malaysia sejak tahun Beliau memulakan kerjayanya dengan MARA Institute of Technology sebagai Penolong Bursar pada tahun Pada tahun 1990, beliau menyertai Majlis Sukan Negara Malaysia ( NSC ) sebagai Akauntan untuk mengetuai Jabatan Kewangan. Beliau menerima Anugerah Perkhidmatan Cemerlang pada tahun 1993 untuk pencapaian beliau yang cemerlang dalam NSC. Sementara berkhidmat dengan NSC, beliau memperolehi pengalaman dalam kendalian pelbagai tugasan antarabangsa dan sukan. Pada tahun 1995, beliau menyertai Persatuan Automobil Malaysia ( AAM ) selaku Pengurus Besar Kumpulan. Beliau menunjukkan prestasi dan kemahiran kepimpinan yang menakjubkan di mana beliau berjaya dalam penyusunan semula AAM bagi merapikan organisasinya dan menambahbaik pendaftaran keahliannya. Beliau menyertai SJSB pada tahun 2000 dan bertanggungjawab bagi tugasan keseluruhan Bahagian Akaun dan Kewangan. 18 SATANG JAYA HOLDINGS BERHAD

22 Lt. Colonel (R) Mohd Johari Bin Rais Independent Non-Executive Directors/ Pengarah Bukan Eksekutif Bebas LT. COL. (R) MOHD JOHARI BIN MOHD RAIS, a Malaysian aged 53, was appointed as Independent Non-Executive Director on 3 January He joined the Royal Military College in 1972 and was commissioned on 20 April He served in the Army Ordinance for 8 years prior to joining the Royal Military Air Force (RMAF) in He has served as Supply And Finance Officer in various posts, in the Royal Malaysian Army and the RMAF. In 1994 he was posted as Commanding Officer of Matra 1, TUDM Kuala Lumpur and was promoted as Director of Material, Air HQ, Ministry of Defence (MOD) in He retired in 1997 after 26 years of service. Currently, he is the Managing Director and a major shareholder of Armright Resources Sdn Bhd, a joint venture company with Perbadanan Usahawan Nasional Berhad. He is the key person in setting up Armright Resources Sdn Bhd s operations in Malaysia. LT. COL. (B) MOHD JOHARI BIN MOHD RAIS, warga Malaysia berusia 53 tahun, dilantik sebagai Pengarah Bukan Eksekutif Bebas pada 3 Januari Beliau menyertai Kolej Ketenteraan Di Raja pada tahun 1972 dan ditauliahkan pada 20 April Beliau berkhidmat dengan Army Ordnance untuk 8 tahun sebelum menyertai Tentera Udara DiRaja Malaysia (TUDM) pada tahun Beliau berkhidmat sebagai pegawai Bekalan dan Kewangan dalam pelbagai jawatan, di Tentera DiRaja Malaysia dan TUDM. Pada tahun 1994 beliau dihantar sebagai Pegawai Perintah Matra 1, TUDM Kuala Lumpur dan dinaik pangkat sebagai Pengarah Material, Udara HQ, MOD pada tahun Beliau bersara pada tahun 1997 selepas berkhidmat selama 26 tahun. Kini, beliau adalah Pengarah Urusan dan pemegang saham utama Armright Resources Sdn Bhd, sebuah syarikat usaha sama dengan Perbadanan Usahawan Nasional Berhad. Beliau merupakan orang penting dalam menubuhkan kendalian Armright Resources Sdn Bhd di Malaysia. ANNUAL REPORT

23 board of director s profile profil lembaga pengarah Ahmad Shakir Bin Ismail Independent Non-Executive Director/ Pengarah Bukan Eksekutif Bebas AHMAD SHAKIR BIN ISMAIL, a Malaysian aged 49, was appointed to the Board of SJHB as Independent Non- Executive Director on 3 January He started his career with the Royal Military Air Force (RMAF) in 1975 and served as Logistics Officer for 10 years. He left for Airod in 1985 as a pioneer member responsible in setting up Airod s purchasing department. In 1994, he joined the management team of Railtech Industries Sdn Bhd, a new joint venture company between UMW Corporation and Keretapi Tanah Melayu Berhad as Senior Manager Logistics and was responsible in restructuring the procurement and logistics system. Prior to that, he joined Harpers Trading Sdn Bhd in 1992 and was responsible in managing the nationwide warehousing and distribution of Fast Moving Consumer Goods ( FMCG ) network. He was also Deputy General Manager of Diethelm Logistics Services Sdn Bhd and responsible in organising and setting up a warehousing and distribution system with the capability to handle 48,000 pallets and distributing daily orders. With his extensive experience in technical business, management accounting, business planning and work flow control, he was invited to join Konsortium Logistik Berhad as Vice President. He left Konsortium Logistik Berhad in December 2004 to join Ahes Modular Sdn Bhd as Managing Director. AHMAD SHAKIR BIN ISMAIL, warga Malaysia berusia 49 tahun, dilantik ke Lembaga SJHB sebagai Pengarah Bukan Eksekutif Bebas pada 3 Januari Beliau memulakan kerjayanya dengan Tentera Udara DiRaja Malaysia (TUDM) pada tahun 1975 dan berkhidmat sebagai pegawai logistik untuk 10 tahun. Beliau menyertai Airod pada tahun 1985 sebagai ahli perintis bertanggungjawab dalam menyusun atur bahagian pembelian Airod. Pada tahun 1994, beliau menyertai pasukan pengurusan Railtech Industries Sdn Bhd, sebuah syarikat usaha sama baru di antara UMW Corporation Sdn Bhd dan Keretapi Tanah Melayu Berhad sebagai Pengurus Kanan Logistik dan bertanggungjawab dalam menyusun atur sistem perolehan dan logistik. Sebelum itu, beliau menyertai Harpers Trading Sdn Bhd pada tahun 1992 dan bertanggungjawab dalam mengurus gudang dan agihan seluruh Negara untuk rangkaian Fast Moving Consumer Goods ( FMCG ). Beliau juga adalah Penolong Pengurus Besar Diethelm Logistics Services Sdn Bhd. Beliau bertanggungjawab dalam mengelola dan menyusun atur sistem gudang dan agihan yang mempunyai kemampuan untuk mengendali 48,000 palet dan mengagih pesanan harian. Dengan pengalaman yang luas dalam kemahiran perniagaan teknikal, perakaunan, pengurusan, perancangan perniagaan dan kawalan aliran kerja, beliau dipelawa menyertai Konsortium Logistik Berhad sebagai Naib Presiden Bahagian Bengkel dan Pengagihan pada tahun Beliau meninggalkan Konsortium Logistik Berhad pada Disember 2004 untuk menyertai Ahes Modular Sdn Bhd sebagai Pengarah Urusan. 20 SATANG JAYA HOLDINGS BERHAD

24 Prof. Dr. Mohd Isa Bin Samat Independent Non-Executive Directors/ Pengarah Bukan Eksekutif Bebas PROF. DR. MOHD ISA BIN MOHD SAMAT, a Malaysian aged 53, was appointed as Independent Non-Executive Director of SJHB on 3 January He graduated with a PhD in Strategic Information Systems Planning from University of Wales, Lampeter, UK, MSc in Information Science from Loughborough University of Technology, UK, Diploma in Information Studies from John Moore University, Liverpool, UK and Bsc in Geochemistry from Universiti Kebangsaan Malaysia. He started his career as a Malaysian Representative to IAEA, Vienna as a Liaison Officer to International Nuclear Information System (INIS). He was also the building designer for PUSPATI Complex in Bangi. He acted as the IT Consultant to Islamic Research Centre (JAKIM) and was responsible for tender evaluation, training supporting staff on Islamic Information Systems (SISMI) and setting-up SISMI s organisational chart. He was IT Consultant for Komputamasa Sdn Bhd, Kejora, Johor, Unit Perancang Ekonomi Negeri Perlis (UPEN) and IT Consultant for Nikah, Cerai and Rujuk (NCR) Information Systems for Majlis Agama Sabah (MUIS). Prof. Dr Mohd Isa oversees the Software development on Library Information Systems (SISPUKOM) for UiTM. His vast experience in Information Systems enabled him to be appointed as a Committee Member for DAGS, MIMOS. He has been in the education profession lecturing MBA and EMBA courses in UiTM since PROF. DR. MOHD ISA BIN MOHD SAMAT, warga Malaysia berusia 53 tahun, dilantik sebagai Pengarah Bukan Eksekutif Bebas SJHB pada 3 Januari Beliau menerima ijazah PhD dalam Perancangan Sistem Maklumat Strategik dari University of Wales, Lampeter, UK, MSc dalam Sains Maklumat dari Universiti Teknologi Loughborough, UK, Diploma dalam Pengajian Maklumat dari John Moore University, Liverpool, UK dan BSc dalam Geokimia dari Universiti Kebangsaan Malaysia. Beliau memulakan kerjayanya sebagai Wakil Malaysia kepada IAEA, Vienna sebagai Pegawai Perhubungan International Nuclear Information System (INIS). Beliau juga adalah perekabentuk bangunan PUSPATI Complex di Bangi. Beliau bertindak sebagai Juru Perunding IT untuk Pusat Penyelidikan Islam (JAKIM) dan bertanggungjawab bagi penilaian tender, melatih kakitangan sokongan dalam Sistem Maklumat Islam (SISMI) dan membentuk carta organisasi SISMI. Beliau adalah Juru Perunding IT untuk Komputamasa Sdn Bhd, Kejora, Johor, Unit Perancang Ekonomi Negeri Perlis (UPEN) dan Juru Perunding IT untuk Nikah, Cerai dan Rujuk (NCR) Sistem Maklumat untuk Majlis Agama Sabah (MUIS). Prof. Dr. Mohd Isa memantau perkembangan Perisian Sistem Maklumat Perpustakaan (SISPUKOM) untuk UiTM. Pengalaman luas beliau dalam Sistem Maklumat membolehkan beliau dilantik sebagai Ahli Jawatankuasa DAGS, MIMOS. Beliau pernah menjadi pensyarah pendidikan dalam MBA dan EMBA sejak tahun 1983 di UiTM. ANNUAL REPORT

25 senior management pengurusan kanan From left to right/dari kiri ke kanan: Gan Chin Sam Md Ghani bin Talib Abdul Aziz bin Jamal Colonel (Honorary)Jamaluddin Bin Hassan RMAF Khir Anuar Bin Mohamad Major (R) Hakim Bin Sukirman 22 SATANG JAYA HOLDINGS BERHAD

26 From left to right/dari kiri ke kanan: Lt Col (R) Mohd Shariff bin Badrishah Ahmad Husaini Zakwan bin Hassan Basri Kamarrudin bin Mohamad From left to right/dari kiri ke kanan: Liwauddin bin Abu Bakar Othman bin Ahmad Shahrin bin Hj Md Noor ANNUAL REPORT

27 senior management s profile profil pengurusan kanan Lt Col (R) Mohd Shariff bin Badrishah Senior General Manager Product Support/ Pengurus Besar Kanan Sokongan Produk LT. COL. (R) MOHD SHARIFF BIN BADRISHAH, a Malaysian aged 52, is Senior General Manager of SJSB since He has served in the Royal Military Air Force (RMAF) for almost 27 years. He started his career as a Supply Officer in the RMAF Supply Depot in During his service career, he held various appointments within the RMAF. He was appointed Staff Officer in-charge of Budget and Expenditure in the RMAF Development and Finance Directorate. Subsequently, he was posted as Supply and Finance Officer of A4 Skyhawk programme at Ministry of Defence (MOD). In 1983, he was assigned to be the Senior Supply and Finance Officer of the RMAF A4 Skyhawk Project Team USA located in Florida, USA. Upon his return to Malaysia in 1987, he was appointed as the Officer Commanding Logistic Squadron RMAF Base Butterworth. He was then appointed as Senior Logistic Officer for the procurement of RMAF new aircraft F/A 18 and MiG-29 in respect of budget and costing which include total support services. In 1993, he was assigned as to Staff Officer Grade 1 Contract. Here, he was exposed to negotiation of contract procedures, costing and matters pertaining to contract requirements in support of the RMAF systems and equipment in the inventory. In 1996, he was posted to the RMAF 3rd Air Division as Staff Officer Grade 1 Purchasing where he managed all aspects of purchasing and repair support for the total RMAF asset including the RMAF aircrafts, weapon systems, air defence systems and other services. Upon completion of his position in 3rd Air Division, he was assigned as Senior Contract and Movement Officer with UNOSOM II in Somalia under the United Nation s Mission. Upon returning to Malaysia, he was posted as Staff Officer Grade 1 Information Technology before retiring in April With his vast experience in the defence industry coupled with the strong networking as well as established rapport he had built-up during his career in the RMAF and dealings with OEMs, this will further strengthen and expedite the market development for defence equipment, safety and survival equipment for SJHB Group. LT. COL. (R) MOHD SHARIFF BIN BADRISHAH, warga Malaysia berusia 52 tahun, adalah Pengurus Besar Kanan SJSB sejak tahun Beliau berkhidmat dengan Tentera Udara DiRaja Malaysia (TUDM) untuk 27 tahun. Kerjaya beliau bermula sebagai Pegawai Bekalan di Depot Bekalan TUDM pada tahun Sepanjang kerjaya perkhidmatannya beliau ditukar ke pelbagai bahagian dalam TUDM. Beliau dilantik sebagai Ketua Pegawai Kakitangan Perbelanjaan dan Bajet di Bahagian Pembangunan dan Kewangan TUDM. Selepas itu, beliau ditukar sebagai Pegawai Bekalan dan Kewangan program A4 Skyhawk di MOD. Pada tahun 1983, beliau ditugaskan sebagai Pegawai Kanan Bekalan dan Kewangan TUDM A4 Skyhawk Project Team USA di Florida, Amerika. Selepas pulang ke Malaysia pada tahun 1987, beliau dilantik sebagai Pegawai Pemerintah Bahagian Logistik Bes TUDM Butterworth. Kemudian beliau dilantik sebagai Pegawai Kanan Logistik bagi perolehan pesawat udara baru TUDM F/A 18 dan MiG-29 berkaitan dengan bajet dan kos termasuk perkhidmatan sokongan penuh. Pada tahun 1993, beliau ditugaskan sebagai Pegawai Kakitangan Kontrak Gred 1. Di sini beliau terdedah kepada perundingan tatacara kontrak, kos dan hal-hal berkaitan keperluan kontrak dalam menyokong sistem dan kelengkapan TUDM dalam inventori. Pada tahun 1996, beliau ditugaskan ke Bahagian Udara Ke 3 TUDM sebagai Pegawai Kakitangan Pembelian Gred 1 di mana beliau menguruskan semua aspek pembelian dan sokongan pembaikan untuk jumlah aset TUDM yang meliputi pesawat udara, sistem senjata, sistem pertahanan udara dan perkhidmatan lain. Setelah selesai tugasan beliau dalam Bahagian Udara Ke 3, beliau ditugaskan sebagai Pegawai Kanan Kontrak dan Pergerakan dengan UNOSOM II di Somalia di bawah Misi Bangsa-bangsa Bersatu. Setelah pulang ke Malaysia, beliau ditukarkan ke Pegawai Kakitangan Gred 1 Maklumat Teknologi sebelum bersara pada April Dengan pengalamannya yang luas dalam industri pertahanan dan rangkaian kukuh serta serasian mantap yang dibina sepanjang kerjayanya di TUDM dan urusniaga dengan OEM, ini akan mengukuhkan lagi dan mempercepatkan pembangunan pasaran kelengkapan keselamatan dan survival pertahanan Kumpulan SJHB. 24 SATANG JAYA HOLDINGS BERHAD

28 Kamarrudin bin Mohamad General Manager QualityAssurance/ Pengurus Besar Jaminan Kualiti KAMARRUDIN BIN MOHAMAD A.M.N, P.P.A, P.P.S, a Malaysian aged 51, is General Manager of Quality Assurance since May He has served in the Royal Malaysia Air Force (RMAF) for 28 years. He started his career as an Apprentice in He was assigned to Armament Squadron, Servicing Control and Ammo Dump section before he was commissioned in While in the RMAF Kuantan base, he was the Officer-in-Charge of the Armament Squadron before taking charge of the General Engineering section in the RMAF Kuching base. He was Squadron Engineering Officer in the RMAF Alor Setar base and Staff Officer before leaving the RMAF. During his tenure as an Air Force Officer, he attended Armament Engineering, Aircraft Maintenance and Safety courses in the US, UK and Australia. His technical knowledge coupled with his vast experience will be invaluable to the SJHB Group in the area of managing the operations of workshops, ensure compliance of all applicable engineering policies and instruction and preparation, validation and approval of all quotations, work orders and man-hours for services. KAMARRUDIN BIN MOHAMAD A.M.N, P.P.A, P.P.S, warga Malaysia berusia 51 tahun, adalah Pengurus Besar Jaminan Kualiti SJSB sejak Mei Beliau berkhidmat dalam Tentera Udara DiRaja Malaysia (TUDM) untuk 28 tahun. Beliau memulakan kerjayanya sebagai Aprentis pada tahun Beliau ditugaskan ke Skuadron Armament, bahagian Kawalan Servis dan Ammo Dump sebelum beliau ditauliahkan pada tahun Sepanjang perkhidmatan beliau di TUDM berpangkalan di Kuantan beliau menyandang jawatan Ketua Pegawai Skuadron Armament sebelum mengetuai bahagian Kejuruteraan Am di pangkalan Kuching. Beliau adalah Pegawai Kejuruteraan Skuadron di pangkalan TUDM Alor Setar dan Pegawai Kakitangan sebelum meninggalkan TUDM. Sepanjang perkhidmatan beliau sebagai Pegawai Tentera Udara, beliau menghadiri kursus Kejuruteraan Armament, Penyelenggaraan dan Keselamatan Pesawat Udara di Amerika, UK dan Australia. Pengetahuan teknikal beliau dan pengalamannya yang luas dalam bidang pengurusan kendalian bengkel, menjamin pematuhan semua polisi kejuruteraan dan arahan dan penyediaan, penilaian serta kelulusan semua sebut harga, susunan kerja dan man-hours. ANNUAL REPORT

29 senior management s profile profil pengurusan kanan Lt Col (R) Ahmad Husaini Zakwan bin Hassan Basri General Manager Fire Services/ Pengurus Besar Perkhidmatan Bomba LT. COL. (R) AHMAD HUSAINI ZAKWAN BIN HASSAN BASRI, KAT, PPA, a Malaysian aged 48, is General Manager of Business Development since January He has served in the Royal Military Air Force (RMAF) for 27 years as a qualified helicopter pilot. He started his career as a Squadron Pilot, Instructor Pilot and later held various important appointments such as Squadron Flight Commander Adjutant and Commanding Officer. Other than the RMAF posts, he was also attached to the United Nation Transitional Authority of Cambodia (UNTAC) as Second in Command of Helicopter Detachment in Kampong Chnang, Cambodia. In addition, he has also served with the Army Special Forced (Commando) as Liaison Officer in Kem Sungai Udang Melaka. In the Ministry of Defence (MOD), he has served various departments as Staff Officer of RMAF Training Department, Human Resources Department, Intelligent and Sports Council. His last two appointments were as Commanding Officer of No. 5 Helicopter and Electronic Warfare Support Centre. During his tenure as a Military Officer, he attended Helicopter Management, Canadian Command and Staff College courses in Malaysia and Canada. He was a recipient of Wira Maal Hijrah Malaysia Armed Forces in 1997 for his excellent roll as a leader and his contribution to the Armed Forces community. He also held important positions in various Associations that attest to his leadership quality such as, he was the Chairman of the RMAF Rugby Association, Secretary of Armed Forces Association, President of the RMAF Black Hawk Rugby Club and President of Sekolah Menengah Sains Selangor Alumni. His knowledge coupled with his vast experience will be invaluable to SJSB in the area of managing the business development for the group. He is responsible in developing new markets, seek future business potentials and liaising with Operations and Technical Departments to promote current capabilities. LT. COL. (B) AHMAD HUSAINI ZAKWAN BIN HASSAN BASRI, KAT, PPA, warga Malaysia berusia 48 tahun, adalah Pengurus Besar Pembangunan Perniagaan SJSB sejak Januari Beliau berkhidmat dengan Tentera Udara DiRaja Malaysia (TUDM) selama 27 tahun sebagai juruterbang helikopter berkelayakan. Beliau memulakan kerjayanya sebagai Juruterbang Skuadron, Juruterbang Arahan dan kemudian memegang pelbagai jawatan penting seperti Ajudan Komander Penerbangan Skuadron dari Pegawai Arahan. Selain daripada jawatan di TUDM, beliau juga berkhidmat untuk Pihak Berkuasa Peralihan Bangsa-bangsa Bersatu Cambodia (UNTAC) selaku Pengarah Kedua Bahagian Helikopter di Kampong Chnang, Cambodia. Beliau juga pernah berkhidmat dengan Angkatan Khas Tentera (Komando) sebagai Pegawai Hubungan di Kem Sungai Udang Melaka. Di Kementerian Pertahanan (KEMENTAH), beliau berkhidmat di pelbagai jabatan sebagai Pegawai Kakitangan Bahagian Latihan TUDM, Bahagian Sumber Manusia, Majlis Pintar dan Sukan. Dua jawatan akhir beliau adalah Pegawai Penguasa No. 5 Helikopter dan Pusat Sokongan Perang Elektronik. Sepanjang kuasanya sebagai Pegawai Tentera, beliau menghadiri kursus Pengurusan Helikopter, Canadian Command and Staff College di Malaysia dan Kanada. Beliau menerima anugerah Wira Maal Hijrah Angkatan Bersenjata Malaysia pada tahun 1997 untuk prestasi cemerlangnya sebagai pemimpin dan sumbangan beliau kepada komuniti Angkatan Bersenjata. Beliau juga memegang jawatan penting dalam pelbagai Persatuan yang menambah kepada kualiti kepimpinannya, seperti, beliau adalah Pengerusi Persatuan Ragbi TUDM, Setiausaha Persatuan Angkatan Bersenjata, Presiden Kelab Ragbi Black Hawk Ragbi Sekolah Menengah Sains Selangor Alumni. Pengetahuan dan pengalaman beliau tidak ternilai kepada SJHB dalam bidang pengurusan pembangunan perniagaan untuk kumpulan. Beliau bertanggungjawab dalam pembangunan pasaran baru, memperolehi potensi perniagaan masa depan dan berhubung dengan Jabatan Kendalian dan Teknikal untuk menggalak kemampuan semasa. 26 SATANG JAYA HOLDINGS BERHAD

30 Shahrin bin Hj. Md Nor General Manager Workshop Operations/ Pengurus Besar Operasi Bengkel SHAHRIN BIN HJ MD NOOR, a Malaysian aged 44, is Senior Manager of Operations since May As Senior Manager of Operations, his responsibilities include proper management of the workshops at all branches, review of reports submitted by branches on their operations to ensure that all maintenance works are carried out in accordance with OEM s maintenance/repair manual, ensuring adequate test equipment and tools are available and calibrated properly, ensuring all technicians are properly and adequately trained and ensuring that all workshops are ready to be audited by accreditation bodies such as the International Organization for Standardization (ISO), SIRIM Berhad the DCA and the Royal Military Air Force (RMAF) at all times. He graduated from California Coast University, USA, with a Bachelor of Science Degree in Business Administration. He has served in the RMAF for 23 years. He started his career as an Electrical Engineering Officer in the RMAF and was responsible for the maintenance facility for PC-130, CL-41G Tebuan and NURI Helicopter. In 1985, he served as Officer Commanding of Armament Squadron, RMAF Butterworth and was responsible for the maintenance of the missile and weapon system for the F5E aircraft. In 1986, he was posted to the Ministry of Defence (MOD) as Staff Officer 3 for Armament and Ground Support Equipment (GSE) and was responsible to write the specification for Armament and GSE to be procured for the RMAF. He also served as a Commandant in the RMAF Armament and Explosive Engineering Institute, RMAF Butterworth for four years, and was subsequently selected for the RMAF F/A-18 Fighter Aircraft program at MOD and was a project team member for the procurement of F/A-18 aircraft for RMAF. After his retirement from the RMAF, he joined Megamas Sdn Bhd as Head of Engineering. He was Head of Business Development Department at ARG Tech Sdn Bhd for two and half years, and having gained the commercial exposure and experience, he joined SJSB as Senior Manager Operation in May SHAHRIN BIN HJ MD NOR, warga Malaysia berusia 44 tahun, adalah Pengurus Kanan Kendalian SJSB sejak Mei Selaku Pengurus Kanan Kendalian, tanggungjawab beliau meliputi pengurusan teratur bengkel di semua cawangan, mengkaji laporan dari cawangan untuk memastikan supaya semua kerja penyelenggaraan dijalankan mengikut manual penyelenggaraan/pembaikan OEM, memastikan supaya kelengkapan dan alat-alat ujian yang mencukupi tersedia dan ditentukan dengan teratur dan dilatih dengan mencukupi dan memastikan bahawa semua bengkel siap untuk diaudit oleh badan akreditasi seperti Organisasi Pempiawaian Antarabangsa (ISO), SIRIM Berhad DCA dan TUDM pada setiap masa. Beliau menerima ijazah dari California Coast University, USA dengan Sains Sarjana Muda dalam Pentadbiran Perniagaan. Beliau berkhidmat dengan TUDM untuk 23 tahun. Beliau memulakan kerjayanya sebagai Pegawai Kejuruteraan Elektrikal di TUDM dan bertanggungjawab untuk kemudahan penyelenggaraan PC-130, CL-41G Tebuan dan Helikopter NURI. Pada tahun 1985, beliau berkhidmat sebagai Pegawai Penguasa Skuadron Armament, TUDM Butterworth dan bertanggungjawab untuk penyelenggaraan sistem misil dan senjata pesawat udara F5E. Pada tahun 1986, beliau ditukar ke MOD sebagai Pegawai Kakitangan 3 Kelengkapan Sokongan Lapangan dan Armament (GSE) dan bertanggungjawab menulis spesifikasi untuk Armament dan GSE yang akan diperolehi oleh TUDM. Beliau juga berkhidmat sebagai Komanden di Institut Kejuruteraan Senjata dan Armament TUDM, TUDM Burtterworth untuk empat tahun, dan kemudian beliau dipilih menyertai program Pesawat Udara Tempur F/A-18 di MOD dan menjadi ahli pasukan projek bagi perolehan pesawat udara F/A-18 untuk TUDM. Selepas pesaraannya dari TUDM, beliau menyertai Megamas Sdn Bhd sebagai Ketua Kejuruteraan. Beliau mengetuai Jabatan Pembangunan Perniagaaan di ARG Tech Sdn Bhd untuk dua setengah tahun, dan setelah memperolehi pendedahan komersial dan pengalaman, beliau menyertai SJSB sebagai Pengurus Operasi Kanan pada Mei ANNUAL REPORT

31 senior management s profile profil pengurusan kanan Othman bin Ahmad General Manager Engineering/ Pengurus Besar Bahagian Kejuruteraan OTHMAN BIN AHMAD, a Malaysian aged 44, is General Manager of Engineering since May He joined a University Permanent Term Credential Cadet Scheme in 1977 and graduated with a Diploma in Mechanical Engineering (Aeronautical) from Universiti Teknologi Malaysia. In June 1980, he joined the Royal Military Air Force (RMAF) Engineering Department. In June 1983, he received his Masters in Mechanical Engineering from the same university. He started his career as a Jutra in June 1986 at the Subang Air Base. He has attended the Aircraft Maintenance Officer Course (AMOC) at the United States Air Force Bases (US AFB) in Chanute and Little Rock in September In March 1988, he worked as a RMAF Representative Engineering Officer in Airod Sdn Bhd. In June 1990, he attended an Advanced Diploma course in System Analysis at Institut Teknologi MARA for a year. In June 1991 to February 1996, he worked as a RMAF Representative and was Head Representative at Airod Sdn Bhd. He attended an Engine Vibration course in Swanton Morley, United Kingdom for a period of 3 months. In March 1996, he attended the Staf/Turus Studies at Sekolah Staf dan Komando (SESKO) in TNI-AU Bandung for 1 year and 4 months. In June 1997, he worked as a Staff Officer 1 System Group B at Base No 3 Air Division (Logistic Base). During this period, he graduated with a Masters in Information Management from Universiti Teknologi MARA (UiTM). In January 1999, he pursued a course in Logistic Studies at the University of New South Wales, Australia. Upon his return in January 2000, he was appointed as Staff Officer 1 Air System Engineering at the Air Force Headquarters (HQ) and was promoted in 2002 to Director of Technical Airworthiness. Prior to joining SJSB in May 2005, he was Staff Officer 1 at JTMK Air Force HQ for a period of two years. OTHMAN BIN AHMAD, warga Malaysia berumur 44 tahun, adalah Pengurus Besar Bahagian Kejuruteraan SJSB sejak Mei Pada tahun 1977 beliau telah menyertai Skim Kadet Tauliah Jangka Tetap Universiti dan mengikuti pengajian Diploma dalam bidang Kejuruteraan Mekanikal (Kajiterbang) di Universiti Teknologi Malaysia. Pada Jun 1980, beliau telah menyertai Jabatan Kejuruteraan Tentera Udara DiRaja Malaysia (TUDM). Pada Jun 1983, beliau telah mengikuti pengajian Sarjana Kejuruteraan Makanikal (Kajiterbang) di universiti yang sama. Beliau memulakan kerjaya sebagai Jutra pada Jun 1986 di Pangkalan Udara Subang. Beliau kemudiannya mengikuti Kursus Pegawai Penyelenggaraan Kapal Terbang (AMOC) Markas Tentera Udara Amerika Syarikat (US AFB) di Chanute dan Little Rock US AFB pada September Pada Mac 1988, beliau bertugas sebagai wakil Pegawai Kejuruteraan TUDM di Airod Sdn Bhd. Beliau mengikuti pengajian Diploma Lanjutan Sistem Analisis di Institut Teknologi MARA selama 1 tahun bermula pada Jun Selepas itu, pada Jun 1991 hingga Februari 1996, beliau ditugaskan sebagai Wakil TUDM dan Ketua Wakil TUDM di Airod Sdn Bhd sambil mengikuti kursus Getaran Injin di Swanton Morley, United Kingdom selama 3 bulan. Pada Mac 1996, beliau mengikuti pengajian Staf/Turus di Sekolah Staf dan Komando (SESKO) di TNI-AU Bandung selama 1 tahun 4 bulan. Pulang ke Malaysia pada Jun 1997, beliau bertugas sebagai Pegawai Staf 1 Sistem Grup B di Markas No 3 Divisyen Udara (Markas Logistik) dan mengikuti pengajian Sarjana Pengurusan Maklumat di Universiti Teknologi MARA (UiTM). Kemudian, beliau mengikuti pengajian logistik di University New South Wales, Australia, pada Januari Pulang dari Australia pada Januari 2000, beliau dilantik sebagai Pegawai Staf 1 Kejuruteraan Sistem Udara di Markas Tentera Udara (MTU). Pada tahun 2002, beliau dilantik sebagai Pengarah Kelayakan Udara Teknikal di MTU. Sebelum menyertai SJSB pada Mei 2005, beliau adalah Pegawai Staf 1 di JTMK MTU selama 2 tahun. 28 SATANG JAYA HOLDINGS BERHAD

32 Md Ghani bin Talib General Manager Strategic Planning and Contract Management/ Pengurus Besar Perancangan Strategik & Pengurusan Kontrak MD GHANI BIN TALIB, a Malaysian aged 52, is General Manager of Strategic Planning & Contract Management Unit of SJSB since July He has been in the Government services for 28 years. He started his career with the Public Services Department in 1976 and later joined the Ministry of Defence in He then worked for the Ministry of Finance in 1994 before he joined SJSB in 1 September 2004 as General Manager of Product Support. He graduated with a Bachelor of Arts (Honors) from Universiti Malaya in 1976 and a Diploma in Purchasing and Supply from the Polytechnic of North London in MD GHANI BIN TALIB, warga Malaysia berusia 52 tahun, adalah Pengurus Besar Unit Perancangan Strategik & Pengurusan Kontrak SJSB sejak Julai Beliau telah berkhidmat di dalam perkhidmatan kerajaan selama 28 tahun. Kerjaya beliau bermula di Jabatan Perkhidmatan Awam pada tahun 1976 dan kemudian bekerja di Kementerian Pertahanan pada tahun Beliau kemudian berkhidmat di Kementerian Kewangan pada tahun Pada 1 September 2004 beliau telah menyertai SJSB sebagai Pengurus Besar Bahagian Bantuan Produk. Beliau menerima Ijazah Sarjana Muda Sastera (Kepujian) daripada Universiti Malaya pada tahun 1976 dan Diploma in Purchasing and Supply daripada Polytechnic of North London pada tahun Liwauddin bin Abu Bakar Head of Company Secretarial Services, Legal and Business Registration/ Ketua Unit Perkhidmatan Kesetiausahaan, Perundangan dan Pendaftaran Perniagaan LIWAUDDIN BIN ABU BAKAR, a Malaysian aged 45, is the Head of Company Secretarial Services, Legal and Business Registration Unit of SJSB since January He graduated in 1988 with a Diploma in Marketing from the Chartered Institute of Marketing, United Kingdom (CIM), an external course conducted at Universiti Teknologi MARA. He started his career in 1988 as a Marketing Officer with a wholly owned government agency. He furthered his studies on a part-time basis and graduated in 1992 with an Advanced Diploma in Business Management (ADBM) through an external programme by University of Swansea United Kingdom in collaboration with The West Glomorgan Institute of Higher Education (WGIHE). His last appointment prior to joining SJSB was as an Administrator at Malaysia Airports Training Centre in Bayan Lepas, Pulau Pinang. LIWAUDDIN BIN ABU BAKAR, warga Malaysia berumur 45 tahun, adalah Ketua Unit Perkhidmatan Kesetiausahaan, Perundangan dan Pendaftaran Perniagaan SJSB sejak Januari Beliau telah menerima Diploma Pemasaran pada tahun 1988 daripada Chartered Institute of Marketing, United Kingdom (CIM), satu kursus luaran yang dijalankan di Universiti Teknologi MARA. Beliau memulakan kerjayanya pada tahun 1988 sebagai Pegawai Pemasaran dengan sebuah agensi yang dimiliki sepenuhnya oleh kerajaan. Seterusnya, beliau telah menyambung pengajian secara sambilan dan menerima Diploma Lanjutan Pengurusan Perniagaan (ADBM) melalui satu program oleh University of Swansea, United Kingdom yang dianjurkan secara kerjasama dengan West Glomorgan Institute of Higher Education (WGIHE). Jawatan terakhir beliau sebelum menyertai SJSB adalah sebagai Pentadbir di Pusat Latihan Malaysia Airports di Bayan Lepas, Pulau Pinang. ANNUAL REPORT

33 30 SATANG JAYA HOLDINGS BERHAD

34 chairman s statement penyata pengerusi Colonel (Honorary) Jamaluddin Bin Hassan RMAF Executive Chairman/Pengerusi Eksekutif ANNUAL REPORT

35 chairman s statement penyata pengerusi On behalf of the Board of Directors of Satang Jaya Holdings Berhad, it is my pleasure to present the inaugural Annual Report for the financial year ended 30 June This is the first Annual Report after the Official Listing of Satang Jaya Holdings Berhad on the Second Board of the Bursa Malaysia Securities Berhad on 16 March The year 2005 marks one of the most important milestones, thus far, in the history of Satang Jaya Group s operations over the last 13 years. Achieving the listing status is truly a moment of pride and a great sense of achievement for everyone in the Satang Jaya Group. This momentous achievement will certainly inspire us to take the Group to greater heights and enable the group to meet future challenges with confidence. Financial Performance Review For the financial year ended 30 June 2005 under review, the Group achieved a revenue of RM67.95 million and profit after taxation and after minority interest of RM9.01 million. There is no comparative figure as the Group only came into existence on 31 December 2004 and the results for the financial year ended 30 June 2005 include only six (6) months results of the Company s subsidiaries. There is a pre-acquisition profit of RM4.52 million. The net profit after the deducting the pre-acquisition profit is RM4.48 million. The Group profit after taxation and minority interest of RM9.01 million is an improvement against the forecast profit. Corporate Development Achieving the listing status is truly a moment of pride and a great sense of achievement for everyone in the Satang Jaya Group. This momentous achievement will certainly inspire us to take the Group to greater heights and enable the Group to meet future challenges with confidence. Satang Jaya Holdings Berhad was incorporated on 4th November 2003 as an investment holding company in conjunction with the then proposed listing of the Satang Jaya Group. Bagi pihak Lembaga Pengarah Satang Jaya Holdings Berhad, saya dengan sukacitanya membentangkan Laporan Tahunan bagi tahun kewangan berakhir 30 Jun Ini merupakan Laporan Tahunan pertama selepas Penyenaraian Rasmi Satang Jaya Holdings Berhad di Papan Kedua Bursa Malaysia Securities Berhad pada 16 Mac Tahun 2005 menjadi mercutanda yang paling penting dalam sejarah korporat Kumpulan Satang Jaya sepanjang 13 tahun operasinya. Kejayaan mencapai status syarikat tersenarai adalah suatu saat membanggakan dan memberangsangkan bagi setiap individu dalam Kumpulan Satang Jaya. Pencapaian bermakna ini pasti akan menjadi pendorong untuk kami memacu Kumpulan ke tahap yang lebih cemerlang dan membolehkan Kumpulan mengharungi cabaran masa hadapan dengan berkeyakinan. Tinjauan Prestasi Kewangan Bagi tahun kewangan berakhir 30 Jun 2005 yang ditinjau, Kumpulan telah mencapai hasil sebanyak RM67.95 juta dan keuntungan selepas cukai dan selepas kepentingan minoriti berjumlah RM9.01 juta. Tidak ada sebarang angka perbandingan kerana Kumpulan hanya diwujudkan pada 31 Disember 2004 termasuk enam (6) bulan keputusan subsidiari-subsidiari Syarikat. Daripada keputusan ini, sebayak RM4.52 juta merupakan keuntungan sebelum pengambilalihan. Keuntungan bersih selepas pengurangan keuntungan sebelum pengambilalihan adalah sebanyak RM4.48 juta. Keuntungan selepas cukai dan kepentingan minoriti Kumpulan sebanyak RM9.01 juta adalah lebih baik berbanding keuntungan ramalan. Perkembangan Korporat Kejayaan mencapai status syarikat tersenarai adalah suatu saat membanggakan dan memberangsangkan bagi setiap individu dalam Kumpulan Satang Jaya. Pencapaian bermakna ini pasti akan menjadi pendorong untuk kami memacu Kumpulan ke tahap yang lebih cemerlang dan membolihkan Kumpulan mengharungi cabaran masa hadapan dengan berkeyakinan. Satang Jaya Holdings Berhad telah diperbadankan pada 4hb November 2003 sebagai sebuah syarikat pegangan pelaburan sempena penyenaraian Kumpulan Satang Jaya. 32 SATANG JAYA HOLDINGS BERHAD

36 Following the approval from the Securities Commission, Satang Jaya Holdings Berhad acquired the entire equity interest in Satang Jaya Sdn Bhd and its subsidiaries and associates on 31 December On 23 February 2005, the Company issued a Prospectus for the initial public offering (IPO) of its shares at an issue price of RM1.00 per ordinary shares of RM0.50 in conjunction with its listing on the Second Board of the Bursa Malaysia Securities Berhad The Company was successfully listed on 16 March History Satang Jaya Group was formed in 1991 to supply spare parts of the defence, aviation and aerospace industry. Subsequently in 1999, Satang Jaya Group extended its business to provide support services such as maintenance, repairs and overhaul of safety and survival equipment for the aviation and aerospace industry as a result of contractorisation programme introduced by the Ministry of Defence. Under the contractorisation programme, the Royal Malaysian Air Force (RMAF) will outsource solely to Satang Jaya Group all the maintenance, repair and overhaul of safety and survival equipment and its related accessories. With this programme, the Malaysian Government hopes to develop the local defence and aviation sector by providing a platform for the local provider for aircraft service and maintenance to gain a foothold in the commercial sector and eventually making Malaysia the aviation hub in the region. Satang Jaya Group is a member of the Malaysian Defence Industry Council (MDIC). Berikutan kelulusan daripada Suruhanjaya Sekuriti, Satang Jaya Holdings Berhad telah mengambilalih seluruh kepentingan ekuiti dalam Satang Jaya Sdn Bhd dan syarikat-syarikat subsidiari dan bersekutunya pada 31 Disember Pada 23 Februari 2005, Syarikat telah menerbitkan Prospektus untuk penawaran awam permulaan (IPO) sahamnya pada harga terbitan RM1.00 sesaham biasa berharga RM0.50 selaras dengan penyenaraiannya di Papan Kedua Bursa Malaysia Securities Berhad. Syarikat telah disenaraikan pada 16 Mac Sejarah Kumpulan Satang Jaya telah ditubuhkan pada tahun 1991 untuk membekalkan alat ganti dalam industri pertahanan, udara dan aero angkasa. Berikutnya, pada tahun 1999, Kumpulan Satang Jaya memperluaskan aktiviti perniagaannya untuk menyediakan perkhidmatan sokongan seperti penyenggaraan, baikpulih dan baikpulih utama peralatan keselamatan dan menyelamat nyawa bagi industri udara dan aero angkasa hasil program pelantikan kontraktor yang diperkenalkan oleh Kementerian Pertahanan. Di bawah program pelantikan kontraktor, Tentera Udara DiRaja Malaysia (TUDM) akan menghantar semua tugas penyenggaraan, baikpulih dan baikpulih utama bagi peralatan pertahanan dan menyelamat utama hanya kepada Kumpulan Satang Jaya. Dengan program ini, Kerajaan Malaysia berharap untuk memajukan sektor pertahanan dan udara tempatan dengan menyediakan platform untuk mengukuhkan sektor komersial dan seterusnya menjadikan Malaysia sebagai hab udara di rantau ini. Satang Jaya adalah ahli Majlis Industri Pertahanan Malaysia (MIPM). ANNUAL REPORT

37 chairman s statement penyata pengerusi Prospects Following our listing on 16 March 2005, our Company has received due recognition and status from our customers and suppliers and it has resulted in the Company obtaining from the Ministry of Defence in July 2005 an increase in the ceiling value of one of our contracts under the contractorisation programme to RM190 million for the duration up to 30 September 2008 by an increase of RM102 million. The increase in the contract value would contribute positively to the future earnings of the Group and enhance shareholder value. Recently, the Group applied to the Ministry of Defence to increase the period of the contractorisation programme with RMAF for a further five (5) years with an extension of five (5) years. We are positive that our request would be considered favourably. In view of our proven track record in the contractorisation programme, the Company is confident of securing from the Government similar contracts from the Malaysian Army, Royal Malaysian Navy, Police and Bomba. The Company has increase its specialization in the niche market by the establishment of our fire services division using environmental friendly fire protection system. We have secured works worth RM16.3 million from the RMAF for new and upgrading of piping and fire fighting gas at two air force bases. On completion of the above contract we hope to secure similar contracts for the other bases. With the Malaysian Government as our major customer, we are continuously exploring opportunities in other countries such as South East Asia and Middle East. We have also participated in the Paris Air Show 2005, the largest Air Show in the world. In view of our specialization, we are constantly investing in training and manpower development to ensure that our technical personnel would be capable of meeting the expectations of its exclusive clientele in the aviation safety and survival equipment industry. Prospek Berikutan penyenaraian kami pada 16 Mac 2005, Syarikat kami telah menerima pengiktirafan dan status daripada para pelanggan dan pembekal kami dan ini membolehkan Syarikat mencapai peningkatan nilai siling di bawah program pelantikan kontraktor sehingga RM190 juta daripada Kementerian Pertahanan pada bulan Julai 2005 untuk tempoh sehingga 30 September 2008 yang bertambah sebanyak RM102 juta. Peningkatan dalam kontrak tersebut dijangka akan memberi sumbangan positif kepada pendapatan masa hadapan Kumpulan dan meninggikan nilai pemegang saham. Baru-baru ini, Kumpulan telah memohon kepada Kementerian Pertahanan untuk menambah tempoh program pelantikan kontraktor dengan TUDM selama lima (5) tahun lagi dengan pelanjutan lima (5) tahun. Kami positif bahawa permintaan kami akan dipertimbangkan dengan sewajarnya. Memandangkan rekod pencapaian masa lalu yang terbukti dalam program pelantikan kontrak ini, Syarikat yakin akan memperolehi kontrak Kerajaan yang serupa daripada Angkatan Tentera Malaysia, Tentera Laut DiRaja Malaysia, Polis dan Bomba. Syarikat telah mempertingkatkan kepakarannya dalam pasaran khusus dengan mewujudkan bahagian perkhidmatan pencegahan kebakaran menggunakan sistem perlindungan kebakaran mesra alam. Kami telah memperolehi kerja bernilai RM16.3 juta daripada RMAF untuk memasang sistem paip baru dan mempertingkatkan sistem sedia ada dan gas memadam api di dua buah pangkalan udara. Kami berharap akan mendapat kontrak yang serupa bagi pangkalan lain selepas berjaya menyiapkan kontrak di atas. Dengan kelebihan Kerajaan Malaysia sebagai pelanggan utama, kami akan terus menerokai pelbagai peluang di negara-negara Asia Tenggara yang lain dan di Timur Tengah. Kami telah mengambil bahagian dalam Paris Air Show 2005 yang merupakan pertunjukan udara terbesar di dunia. 34 SATANG JAYA HOLDINGS BERHAD

38 With the increase in one of the contract value to RM190 million from the Government and the potential of securing similar contracts from the Malaysian Army, Royal Malaysian Navy and Police and Bomba, we are confident that the Company would perform better for the financial year ended 30 June Dividends In recognition of Satang Jaya Holdings Berhad s shareholders support and confidence in the Group, the Board of Directors is pleased to propose a first and final dividend of 6% per share less 28% income tax amounting to RM1,728,000 for the year ended 30 June The dividend payment will be made in the year 2006 subject to shareholders approval at the forthcoming Annual General Meeting. Appreciation On behalf of the Board of Directors, I would like to extend my appreciation to the Management and Staff of the Group for their contribution, commitment and dedication throughout the year. To our shareholders, I am sincerely grateful for your confidence in the Company. I also wish to express my gratitude and sincere thanks to our valued customers, business associates, suppliers and regulatory bodies for their invaluable support, assistance and confidence. I also wish to thank my fellow Board members for their assistance, advice and guidance. I would like to put on record our gratitude to the Malaysian Government especially the Ministry of Defence, Ministry of Finance and other relevant regulatory authorities for their invaluable assistance and support. Memandangkan kepakaran khusus yang kami miliki, kami sentiasa menyalurkan pelaburan dalam latihan dan pembangunan sumber manusia bagi memastikan bahawa kakitangan teknikal kami akan berkemampuan untuk memenuhi jangkaan pelanggannya yang eksklusif dalam industri peralatan keselamatan udara dan menyelamat nyawa. Berdasarkan peningkatan dalam salah satu nilai kontrak kepada RM190 juta daripada Kerajaan dan kemungkinan mendapat kontrak yang serupa daripada Angkatan Tentera Malaysia, Tentera Laut DiRaja Malaysia dan Polis serta Bomba, kami yakin bahawa Syarikat akan menampilkan prestasi yang lebih baik bagi tahun kewangan 30 Jun Dividen Sebagai mengiktiraf sokongan dan keyakinan pemegang saham Satang Jaya Holdings Berhad terhadap Kumpulan, Lembaga Pengarah dengan sukacitanya mengesyorkan dividen pertama dan akhir sebanyak 6% sesaham tolak 28% cukai pendapatan berjumlah RM1,728,000 bagi tahun berakhir 30 Jun Pembayaran dividen akan dibuat pada tahun 2006 tertakluk kepada kelulusan para pemegang saham di Mesyuarat Agung Tahunan akan datang. Penghargaan Bagi pihak Lembaga Pengarah, saya ingin menyampaikan penghargaan kepada Kakitangan dan Pekerja Kumpulan atas sumbangan, komitmen dan dedikasi sepanjang tahun ini. Kepada para pemegang saham, saya ingin menyampaikan ucapan setinggi-tinggi terima kasih kepada para pelanggan yang dihargai, rakan perniagaan, pembekal dan badan-badan peraturan atas sokongan, nasihat dan bimbingan yang tidak ternilai. Saya juga ingin merakamkan penghargaan kami kepada Kerajaan Malaysia khususnya Kementerian Pertahanan, Kementerian Kewangan dan penguatkuasa peraturan berkaitan yang lain atas bantuan dan sokongan tidak ternilai mereka selama ini. Colonel (Honorary) Jamaluddin bin Hassan RMAF Executive Chairman/Pengerusi Eksekutif ANNUAL REPORT

39 review of operations ulasan opearasi AVIATION AND MARINE SAFETY AND SURVIVAL EQUIPMENT Satang Jaya Holdings Berhad ( SJHB ) is principally an investment holding company engaged in the distribution and supply of defence, commercial aviation, marine equipment and accessories, contract management and a consultant to OEMs and investment holding. Its subsidiaries and associated companies comprise of Satang Jaya Sdn Bhd, SAR Services (M) Sdn Bhd, Satang Services Sdn Bhd, MSJ Technical Support Sdn Bhd, Satang Cylinder Services Sdn Bhd, Satang Environmental Sdn Bhd, Satang Hi-Tech Security Sdn Bhd, Triopoint (M) Sdn Bhd, The Industrial and Scientific Co. Sdn Bhd and Port Marine Safety Services Sdn Bhd. SJHB s Satang Cylinder Services Sdn Bhd was set up due to rapid expansion and as part of our commitment in supporting safety and survival equipment. The company is involved in the servicing, maintenance and overhaul of cylinders. All personnel are experienced and trained by an established American company, which also provides technical and spare parts support. The core activities of Satang Cylinder Services Sdn Bhd are: i) Overhaul and re-filling of cylinders of special gases; Halon, Carbon Dioxide, Nitrogen, Oxygen and compressed air. ii) iii) Replacement of cylinders, spare parts and technical support beyond other SJSB branches and external customers. Overhaul of oxygen regulators and masks. SAR Services (M) Sdn Bhd functions as the maintenance and servicing centre for Commercial Aviation and Marine, Military Safety and Survival Equipment. The centre has extensive facilities with experienced personnel in the respective fields of Aviation and Marine. It also operates Satang Jaya Holdings Berhad ( SJHB ) pada dasarnya merupakan sebuah syarikat pegangan pelaburan yang terlibat dalam aktiviti pengedaran dan pembekalan peralatan dan aksesori pertahanan, penerbangan komersial, peralatan, pengurusan dan rundingan kontrak untuk Pengeluar Peralatan Asal (OEM) dan pemegangan pelaburan. Syarikat-syarikat subsidiari dan bersekutunya terdiri daripada Satang Jaya Sdn Bhd, SAR Services (M) Sdn Bhd, Satang Services Sdn Bhd, MSJ Technical Support Sdn Bhd, Satang Cylinder Services Sdn Bhd, Satang Environmental Sdn Bhd, Satang Hi-Tech Security Sdn Bhd, Triopoint (M) Sdn Bhd, The Industrial and Scientific Co. Sdn Bhd dan Port Marine Safety Services Sdn Bhd. Satang Cylinder Services Sdn Bhd diperbadankan berikutan pertumbuhan pesat dan sebagai sebahagian daripada komitmen kami untuk menyokong operasi peralatan keselamatan dan menyelamat. Syarikat ini terlibat dalam aktiviti servis, penyenggaraan dan baikpulih utama silinder. Semua kakitangan memiliki pengalaman luas dan dilatih oleh sebuah syarikat terkemuka dari Amerika Syarikat, yang turut menyumbangkan sokongan teknikal dan alat ganti. Aktiviti teras bagi Satang Cylinder Services Sdn Bhd meliputi: i) Menyediakan perkhidmatan baikpulih besar-besaran dan pengisian semula silinder gas khusus iaitu Halon, Karbon Dioksida, Nitrogen, Oksigen dan udara termampat. ii) iii) Penggantian silinder, alat ganti dan sokongan teknikal kepada cawangan SJSB yang lain dan para pelanggan luar. Baikpulih besar-besaran pengatur dan topeng oksigen. SAR Services (M) Sdn Bhd berfungsi sebagai pusat penyenggaraan dan servis bagi Peralatan Penerbangan Komersial dan Marin, Ketenteraan serta Menyelamat. 36 SATANG JAYA HOLDINGS BERHAD

40 AIRCREW EMERGENCY ESCAPE SYSTEM ELECTRO-MECHANICAL SAFETY EQUIPMENT from Royal Malaysian Air Force bases being of service solely to the RMAF in the maintenance and repair of air crew apparel and equipment. These workshops have well-trained and experienced staff and sophisticated technologies that are key factors to sustaining our philosophy of ensuring consistent quality. SAR Services various activities are: Aviation Activities Passenger and crew lifejackets Life rafts Survival packs Emergency Breathing Systems (EBS) Flying suits/apparel Parachutes Drag chutes Safety harness Air crew helmets/headset Ejection seat Aircraft floats Inflatable rubber boats Oxygen mask Nuclear, Biological and Chemical (NBC) Equipment Marine Activities Inflatable life rafts Lifejackets Rigid Inflatable Boat (RIB) Diving equipment Diving lifejackets Breathing apparatus equipment Marine Survival Kit (SOLAS) Pusat ini mempunyai kemudahan serba lengkap dengan para personel yang berpengalaman dalam bidang-bidang berkaitan Penerbangan dan Marin. Ia turut beroperasi dari pangkalan Tentera Udara Malaysia yang menyediakan khusus kepada TUDM dalam menyenggara dan membaikpulih perkakasan dan peralatan krew udara. Bengkel-bengkel tersebut mempunyai kakitangan yang sangat terlatih dan berpengalaman serta disokong oleh teknologi canggih yang merupakan faktor utama untuk mengekalkan falsafah kami bagi memastikan kualiti yang konsisten dapat dicapai. Aktiviti-aktiviti SAR Services meliputi: Aktiviti Penerbangan Jaket keselamatan penumpang dan krew Rakit Kecemasan Pek Survival Sistem Pernafasan Kecemasan (EBS) Sut/perkakasan penerbangan Payung terjun Drag chutes Abah-abah keselamatan Topi keledar/alat menutup kepala krew udara Tempat duduk pantul Rakit terapung Bot getah boleh dipam Topeng oksigen Peralatan Nuklear, Biologi dan Kimia (NBC) Aktiviti Marin Rakit Kecemasan Boleh Pam Jaket keselamatan Bot Yang Boleh Dipam (RIB) Peralatan Menyelam Jaket keselamatan menyelam Peralatan bantuan pernafasan Kit Menyelamat Marin (SOLAS) ANNUAL REPORT

41 review of operations ulasan operasi AVIATION SAFETY ELECTRONICS EQUIPMENT Satang Services Sdn Bhd was established due to the increasing need to maintain aircraft crash and salvage equipment, aircraft arresting (cable/barrier) system, firefighting, air search and rescue equipment and other related support equipment. The vast diversification of products and its high quality are ensured by constant technological upgrades and the capability to offer maintenance of these equipment, from schedule maintenance right up to major overhaul activities. The activities are: i) Provide repair and overhaul of Aircraft and Crash Salvage, Fire Fighting, Aircraft Arresting, Emergency & Rescue and Environmental Control Equipment or System. ii) iii) Preventive and Corrective Maintenance of those equipment that should include replacement of parts, modifications, scheduled and unscheduled servicing. Re-engineering and refurbishing out of production equipment or system to its functional state. MSJ Technical Support Sdn Bhd was established to ensure the smooth running of SJSB's activities conforming to contractual obligations. The company's activities are: i) Rescue Beacon : Servicing, overhaul and testing of rescue beacon such as screen room, heat chamber, leak detection and completed functional check. Satang Services Sdn Bhd diperbadankan untuk memenuhi keperluan yang semakin meningkat bagi penyenggaraan peralatan menghadapi kecemasan dan menyelamatkan pesawat, sistem penghenti pesawat (kabel/penghadang), alat pemadam kebakaran, peralatan mencari dan menyelamat udara dan pelbagai peralatan sokongan lain. Kepelbagaian produk yang tinggi dan kualitinya yang tinggi dipastikan melalui usaha peningkatan teknologi dan kemampuan untuk menawarkan penyenggaraan peralatan-peralatan tersebut, daripada penyenggaraan berjadual hinggalah kepada penyenggaraan tidak berjadual. Aktiviti-aktiviti tersebut meliputi: i) Menyediakan perkhidmatan baikpulih dan baikpulih utama Pesawat dan Sisa Terhempas, Memadam Kebakaran, Kecemasan & Menyelamat dan Peralatan atau Sistem Kawalan Alam Sekitar. ii) Penyenggaraan Pencegahan dan Pembetulan peralatan-peralatan berkenaan termasuk penggantian alat ganti, pengubahsuaian, servis berjadual dan tidak berjadual. iii) Penjuruteraan dan pemulihan semula peralatan atau sistem pengeluaran supaya fungsinya menjadi lebih berkesan. MSJ Technical Support Sdn Bhd telah diperbadankan untuk memastikan perjalanan aktiviti SJSB berjalan dengan lebih lancar untuk memenuhi obligasi berkontraknya. Aktiviti-aktiviti syarikat ini adalah: i) Isyarat Menyelamat : Servis, baikpulih utama dan ujian peralatan keselamatan seperti bilik pengimbas, ruang panas, pengesanan kebocoran dan pemeriksaan fungsi lengkap. 38 SATANG JAYA HOLDINGS BERHAD

42 INTEGRATED SURVEILLANCE AND SECURITY SYSTEM CONSULTANCY TO ORIGINAL EQUIPMENT MANUFACTURER ii) Radio : Overhaul and repair Communications aircrew helmet and headset and its accessories. iii) Radar Systems : Performing scheduled and unscheduled maintenance and repairs of the Marconi S605H Radar System components with special tools and test equipment. iv) Environmental : Overhaul various Control Systems Environmental Control Equipment (ECE) including LW51, Howden, Power Supply Unit (PSU), Control Monitor Unit (CMU) and other equipments to the system. Satang Environmental Sdn Bhd serves as a consultant to the environmental service industry. The company's activities are: i) Environmental Management Consultancy Environmental Monitoring (Air, Noise and Water Quality). ii) Komunikasi Radio : Baikpulih utama dan baik pulih topi keledar krew udara dan alat perhubungan dan aksesori-aksesorinya. iii) Sistem Radar : Menjalankan penyenggaraan dan baikpulih berjadual dan tidak berjadual komponen Sistem Radar Marconi S605H dengan perkakasan dan peralatan ujian khas. iv) Sistem Kawalan : Baikpulih utama pelbagai Peralatan Kawalan Alam Sekitar (ECE) termasuk LW51, Howden, Power Supply Unit (PSU), Control Monitor Unit (CMU) dan peralatan untuk sistem-sistem lain. Satang Environmental Sdn Bhd berfungsi sebagai perundingcara kepada industri perkhidmatan alam sekitar. Antara aktiviti yang dijalankan oleh syarikat ini termasuk: i) Rundingan Pengurusan Alam Sekitar Pemantauan Alam Sekitar (Kualiti Udara, Kebisingan dan Air). ii) Rundingan Pengurusan Sisa Pepejal. ii) Solid Waste Management Consultancy. iii) Rundingan teknologi Pelupusan. iii) Disposal Technology Consultancy. Satang Hi-Tech Security Sdn Bhd provides services in security consultancy, installation, training and commissioning of personnel. Satang Hi-Tech Security is capable of providing the related electronic security Satang Hi-Tech Security Sdn Bhd pula menyediakan perkhidmatan dalam bidang perkhidmatan rundingan keselamatan, pemasangan, latihan dan juga pentauliahan kakitangan. Satang Hi-Tech Security berkemampuan untuk menyediakan perkhidmatan yang berkaitan dengan keselamatan elektronik secara profesional dengan ANNUAL REPORT

43 review of operations ulasan operasi AVIATION GROUND SUPPORT SAFETY EQUIPMENT service professionally with support from local and overseas principals namely, SYACS (Italy), Sensor Electronic Ltd (UK), Philips Security System (USA) and CASTLE (Biometric, Proximity and Card Access System Malaysia). The company's activities are: i) Design High Technology Security sokongan rakan prinsipal dari dalam dan luar negeri iaitu SYACS (Itali), Sensor Electronic Ltd (UK), Philips Security System (Amerika Syarikat) dan CASTLE (Biometric, Proximity and Card Access System Malaysia). Aktivitiaktiviti syarikat ini antara lain meliputi: i) Merekabentuk Sekuriti Teknologi Tinggi ii) Supply all related equipment ii) Pembekalan semua peralatan berkaitan iii) Install iii) Pemasangan iv) Commission iv) Pentauliahan v) Training Triopoint (M) Sdn Bhd is involved in general trading activities associated with defence products and other related defence equipment. Port Marine Safety Services Sdn Bhd (PMSS) has a Safety and Survival Craft Workshop approved by the Marine Department Malaysia, outfitted to International Maritime Organisation (IMO) Standard, and the approval of the following manufacturers of life-saving equipment: VIKING, Denmark BEAUFORT, United Kingdom DSB, Germany Apart from servicing and maintaining life-saving equipment, PMSS also sells all types of life-saving and survival equipment such as inflatable life rafts, lifebuoys and pyrotechnics (distress signals). PMSS is an authorised agent/distributor for Compact AS. Bergen, Norway, the maker of Seven Oceans Emergency Rations and Drinking Water. v) Latihan Triopoint (M) Sdn Bhd terlibat dalam aktiviti perdagangan am berkaitan dengan produk-produk pertahanan dan peralatan pertahanan lain yang berkaitan. Port Marine Safety Services Sdn Bhd (PMSS) mempunyai sebuah Bengkel Keselamatan dan Survival yang diluluskan oleh Jabatan Marin Malaysia yang menepati Piawaian Pertubuhan Maritim Antarabangsa (IMO), dan mendapat kelulusan daripada pengilang-pengilang peralatan menyelamat berikut: VIKING, Denmark BEAUFORT, United Kingdom DSB, Jerman Selain daripada menyediakan khidmat servis dan penyenggaraan peralatan menyelamat, PMSS juga menjual semua jenis peralatan menyelamat dan survival seperti rakit keselamatan boleh dipam, isyarat kecemasan dan pyrotechnics (isyarat perlukan bantuan). PMSS merupakan ejen/pengedar sah bagi Compact AS. Bergen, Norway, pembuat Bekalan Makanan Kecemasan dan Air Minuman Seven Oceans. 40 SATANG JAYA HOLDINGS BERHAD

44 ENVIRONMENTAL CONSULTANCY AND WASTE MANAGEMENT COMPRESSED AVIATION GAS CYLINDER SJHB s Fire Services Division which has come out with environmental friendly protection system, is the main supplier of Hartindo, a made-in-malaysia product and also the most efficient range of fire fighting products to-date. Hartindo products can be catogerised into three (3) catergories: i) Hartindo AF11E : Contains negligible Ozone Depleting Potential (ODP), Global Warming Potential, free from Halon and Bromine, effectively controls all classes of flames, low toxicity, less complication and ideal to use everywhere. ii) Hartindo AF21 : Non-toxic colourless water based liquid, environmental friendly, provides reduction in fire ignition and combustion and elimination and preventing afterglow. iii) Hartindo AF31 : Water based fire fighting media for all classes of fire propelled by nitrogen with fast knock-down, non toxic extinguishing agent even if ingested, environmental friendly, biodegradable and non corrosive. Simultaneously extinguishes and impregnates all objects to prevent combustion and flame spread. Bahagian Perkhidmatan Kebakaran SJHB yang memperkenalkan sistem perlindungan kebakaran, adalah pembekal utama Hartindo, produk buatan Malaysia dan juga merupakan jenis produk memadam kebakaran paling cekap sehingga kini. Produk Hartindo boleh dikategorikan kepada tiga (3) bahagian: i) Hartindo AF11E : Mengandungi Potensi Penipisan Ozon (ODP) yang amat rendah, Potensi Pemanasan Global, bebas daripada gas Halon dan Bromine, mengawal dengan berkesan semua jenis bakaran, kandungan toksik rendah dan ideal digunakan di mana jua. ii) Hartindo AF21 : Air tanpa toksik dan tidak berwarna, mesra alam, mengurangkan cetusan bakaran api dan semburan api dan menghapuskan serta menghalang bara selepas bakaran. iii) Hartindo AF31 : Alat memadam api berasaskan air untuk semua jenis kebakaran yang dicetuskan oleh gas nitrogen dengan pemadaman sepenuhnya yang pantas, ejen pemadaman tanpa toksik walaupun jika telah diserap, mesra alam, biodegradasi dan tidak mengakibatkan karat. Memadam dan meresapkan ejen pemadam ke dalam semua objek untuk mencegah bakaran dan api merebak. ANNUAL REPORT

45 statement of corporate governance The Board acknowledges that the need for good corporate governance and transparency has been more critical, or more challenged. Nevertheless, the Board remains committed to attaining high standards of corporate governance within the Group through its support and application of the Principles of good governance set out in Part 1 and Best Practices good governance set out in Part 2 of the Malaysian Code on Corporate Governance (the Code). It also notes the Guide on Best Practices in Corporate Disclosure issued by the Task Force on Corporate Disclosure Best Practices established by Bursa Malaysia Securities Berhad (BMSB). A summary of the Group s system and manner of applying the principles and best practices for the financial year ended 30 June 2005 is set out in this statement to shareholders. BOARD OF DIRECTORS Board Composition, Balance and Effectiveness The Board currently comprises four Executive Directors and three Independent Non-Executive Directors with a clear division of responsibility from the Executive Chairman/Managing Director, who together, with their financial, commercial, technical and operational expertise, bring with them a wide range of experience to the Group. A brief profile of each Board member is provided on pages 14 to 21. Board Structures and Procedures An agenda of Board items and the Board papers were provided to all Board members ahead of the scheduled meetings, thus allowing sufficient time for detailed review and consideration of the documents beforehand. The Board has the right to make further enquiries where necessary. The Board also has access to the advice and services of the Company Secretaries and may seek independent advice, in furtherance of their duties if so required. The Board held one meeting during the financial year ended 30 June The details of Directors attendances are set out below: Name of Directors No. of meetings attended Col. (Honorary) Jamaluddin bin Hassan RMAF 1/1 Abdul Aziz bin Jamal 1/1 Gan Chin Sam 1/1 Hakim bin Sukirman 1/1 Khir Anuar bin Mohamad 1/1 Ahmad Shakir bin Ismail 1/1 Lt. Col. (R) Mohd Johari bin Mohd Rais 1/1 Prof. Dr. Mohd Isa bin Mohd Samat 1/1 BOARD COMMITTEES Audit Committee Members Lt. Col. (R) Mohd Johari bin Mohd Rais Chairman Independent Non-Executive Director Ahmad Shakir bin Ismail Independent Non-Executive Director Prof. Dr. Mohd Isa bin Mohd Samat Independent Non-Executive Director Khir Anuar bin Mohamad Executive Director Chin Kim Fung Secretary The main functions of the Audit Committee fall within the ambit of the Listing Requirements, which include the review of audit plans and audit reports with the Group s auditors, review of the auditors evaluation of internal accounting controls and management information systems, review of the scope of internal audit procedures, review of the balance sheet and profit and loss accounts, and nomination of the auditors. 42 SATANG JAYA HOLDINGS BERHAD

46 Nomination Committee Members Prof. Dr. Mohd Isa bin Mohd Samat Chairman Independent Non-Executive Director Lt. Col. (R) Mohd Johari Mohd Rais Independent Non-Executive Director Ahmad Shakir bin Ismail Independent Non-Executive Director Remuneration Committee Members Ahmad Shakir bin Ismail Chairman Independent Non-Executive Director Lt. Col. (R) Mohd Johari Mohd Rais Independent Non-Executive Director Col. (Honorary) Jamaluddin bin Hassan RMAF Executive Chairman/Managing Director Prof. Dr. Mohd Isa bin Mohd Samat Independent Non-Executive Director SHAREHOLDERS Investors Relation and Annual General Meeting The Group values dialogue and recognizes the need to communicate with its investors, thus encouraging constructive two-way communication. The Group uses several channels to appropriately inform its investors of major developments and of the operations of the Company through disclosures and announcements made to Bursa Malaysia Securities Berhad (BMSB), press releases, the Annual Report, and the Board also has the option to arrange meetings with analysts or investors, if necessary. Notice of the Annual General Meeting (AGM) and the annual report are sent to investors at least 21 days before the date of the meeting. During the AGM, the investors are encouraged to participate in question and answer session, which provides an opportunity for investors to clarify any issues and to have a better understanding of the business. The Board will be available for questions during the meeting. The Company will announce the status of all resolutions proposed at the AGM to BMSB at the end of the meeting day. ACCOUNTABILITY AND AUDIT The Board aims to present a balanced and understandable assessment of the Group s operations and prospects, in presenting the annual financial statements and quarterly announcement to shareholders. The Board is assisted by the Audit Committee in scrutinising these reports. Directors Responsibilities for the Financial Statements The Directors are required to, under Companies Act, 1965 prepare financial statements for each financial year which give a true and fair view of the Group s state of affairs. In preparing the financial statements, the Directors have ensured suitable accounting policies are being adopted and applied consistently, judgments and estimates are prudent and reasonable and that applicable accounting standards are being followed. The Directors have responsibility for keeping proper accounting records which disclose with reasonable accuracy the financial position of the Group and to ensure that the financial statements comply with the requirements of the Companies Act, The Directors have overall responsibilities for taking such steps as are reasonably open to them to safeguard the assets of the Group to prevent and detect fraud and other irregularities. Internal Control The Board acknowledges its responsibility for the Group s system of internal controls and for reviewing the effectiveness of these systems. Such systems can only provide reasonable but not absolute assurance against material misstatement or loss. It includes formal policies and operating procedures in relation to the safeguarding of assets, maintenance of proper accounting records, reliability of financial information, compliance with applicable legislation, regulation and best practices. The Board is continuously looking into the adequacy and integrity of its system of internal controls. The Group has operated under an established internal control framework which is described, and supported by the external auditors, in the Statement on Internal Control on page 53. Internal Audit The internal auditors monitor and report on the system of internal controls. They work on a plan agreed with the Audit Committee and support the Audit Committee in discharging its duties and responsibilities, giving assurance that adequate, efficient and effective internal control systems are in place. ANNUAL REPORT

47 penyata tadbir urus korporat Lembaga Pengarah mengakui bahawa keperluan bagi tadbir urus korporat yang baik dan tahap ketelusan yang tinggi telah menjadi semakin penting ataupun semakin mencabar. Namun begitu, Lembaga Pengarah tetap komited untuk mencapai piawaian tadbir urus korporat yang tinggi dalam Kumpulan dengan menyokong dan mengamalkan Prinsip-prinsip tadbir urus yang baik yang diterangkan dalam Bahagian 1, dan Amalan Terbaik untuk tadbir urus yang baik yang diterangkan dalam Bahagian, Kod Tadbir Urus Korporat Malaysia (Kod). Lembaga Pengarah juga mengambil kira Panduan Amalan Terbaik Dalam Pendedahan Korporat yang diterbitkan oleh Pasukan Petugas Amalan Terbaik Pendedahan Korporat yang ditubuhkan oleh Bursa Malaysia Securities Berhad (BMSB). Ringkasan tentang system dan cara Kumpulan mengguna pakai prinsip dan amalan terbaik bagi tahun kewangan berakhir 30 Jun 2005 dibentangkan dalam penyata ini kepada pemegang saham. LEMBAGA PENGARAH Gabungan Pengarah, Keseimbangan dan Keberkesanan Pada masa ini, Lembaga Pengarah terdiri daripada empat Pengarah Eksekutif dan tiga Pengarah Bebas Bukan Eksekutif dengan pembahagian tanggungjawab yang jelas daripada Pengerusi Eksekutif/Pengarah Urusan, setiap seorang dengan kepakaran berbeza dalam bidang kewangan, komersil, teknikal dan operasi, lantas membawa pengalaman yang luas kepada Syarikat. Profil ringkas setiap ahli Lembaga Pengarah dikemukakan di mukasurat 14 hingga 21. Struktur dan Tatacara Lembaga Pengarah Agenda perkara-perkara Lembaga Pengarah dan kertaskertas Lembaga Pengarah dibekalkan kepada semua ahli Lembaga Pengarah sebelum tarikh yang dijadualkan bagi setiap mesyuarat, lantas memberikan masa yang secukupnya untuk mengkaji dan mempertimbangkan secara terperinci dokumen-dokumen sebelum mesyuarat. Lembaga Pengarah mempunyai hak untuk membuat pertanyaan lanjut, sekiranya perlu. Lembaga Pengarah juga mempunyai hak untuk mendapatkan nasihat dan khidmat Setiausaha-setiausaha Syarikat dan mendapatkan nasihat bebas, lanjutan dari menjalankan tugas mereka. Lembaga Pengarah mengadakan satu mesyuarat di dalam tahun kewangan berakhir 30 Jun Butir-butir kedatangan Pengarah-pengarah dibentangkan di bawah: Nama Pengarah Jumlah mesyuarat dihadiri Kol. (Kehormat) Jamaluddin bin Hassan TUDM 1/1 Abdul Aziz bin Jamal 1/1 Gan Chin Sam 1/1 Hakim bin Sukirman 1/1 Khir Anuar bin Mohamad 1/1 Ahmad Shakir bin Ismail 1/1 Lt. Col. (R) Mohd Johari bin Mohd Rais 1/1 Prof. Dr. Mohd Isa bin Mohd Samat 1/1 JAWATANKUASA LEMBAGA PENGARAH Jawatankuasa Audit Ahli-ahli Lt. Col. (R) Mohd Johari bin Mohd Rais Pengerusi Pengarah Bebas Bukan Eksekutif Ahmad Shakir bin Ismail Pengarah Bebas Bukan Eksekutif Prof. Dr. Mohd Isa bin Mohd Samat Pengarah Bebas Bukan Eksekutif Khir Anuar bin Mohamad Pengarah Eksekutif Chin Kim Fung Setiausaha Fungsi-fungsi utama Jawatankuasa Audit termasuk dalam lingkungan Keperluan Penyenaraian, iaitu meliputi rancangan audit dan laporan audit dengan juruaudit Kumpulan, kajian semula penilaian juruaudit akan sistem kawalan perakaunan dalaman dan maklumat pengurusan, kajian semula skop tatacara audit dalaman, kajian kunci kira-kira dan akaun untung rugi, dan pencalonan juruaudit, 44 SATANG JAYA HOLDINGS BERHAD

48 Jawatankuasa Pencalonan Ahli-ahli Prof. Dr. Mohd Isa bin Mohd Samat Pengerusi Pengarah Bebas Bukan Eksekutif Lt. Col. (R) Mohd Johari Mohd Rais Pengarah Bebas Bukan Eksekutif Ahmad Shakir bin Ismail Pengarah Bebas Bukan Eksekutif Jawatankuasa Imbuhan Ahli-ahli Ahmad Shakir bin Ismail Pengerusi Pengarah Bebas Bukan Eksekutif Lt. Col. (R) Mohd Johari Mohd Rais Pengarah Bebas Bukan Eksekutif Kol. (Kehormat) Jamaluddin bin Hassan TUDM Pengerusi Eksekutif/Pengarah Urusan Prof. Dr. Mohd Isa bin Mohd Samat Pengarah Bebas Bukan Eksekutif PEMEGANG SAHAM Hubungan Pelabur dan Mesyuarat Agung Tahunan Pihak Kumpulan menghargai dialog dan sedar tentang keperluan komunikasi dengan pelabur, lantas menggalakkan komunikasi dua hala yang membina. Pihak Kumpulan menggunakan beberapa saluran yang sewajarnya untuk memberitahu para pelabur tentang perkembangan utama dan operasi Syarikat melalui pendedahan dan pengumuman yang dibuat di Bursa Malaysia Securities Berhad (BMSB), sidang akhbar, Laporan Tahunan dan Lembaga Pengarah juga mempunyai pilihan untuk mengatur mesyuarat bersama penganalisa atau pelabur, jika perlu. Notis Mesyuarat Agung Tahunan dan laporan tahunan dihantar kepada pelabur sekurang-kurangnya 21 hari sebelum tarikh mesyuarat. Di Mesyuarat Agung Tahunan, para pelabur adalah digalakkan untuk mengambil bahagian di dalam sesi soal jawab, yang memberi peluang kepada pelabur untuk penjelasan tentang sebarang isu dan pemahaman yang lebih baik mengenai perniagaan. Sebarang pertanyaan boleh diajukan kepada Lembaga Pengarah ketika mesyuarat. Syarikat akan mengumumkan keputusan resolusi yang dicadangkan di mesyuarat kepada BMSB pada hari tersebut. AUDIT DAN KEBERTANGGUNGJAWABAN Lembaga Pengarah beriltizam untuk menyampaikan penilaian yang seimbang dan boleh difahami tentang operasi dan prospek Kumpulan, dalam membentangkan penyata kewangan tahunan dan pengumuman suku tahunan kepada pelabur. Lembaga Pengarah dibantu oleh Jawatankuasa Audit dalam mengkaji laporan tersebut. Tanggungjawab Pengarah terhadap Penyata Kewangan Menurut Akta Syarikat, 1965, Para pengarah dikehendaki supaya menyediakan penyata kewangan bagi setiap tahun kewangan, yang benar dan saksama tentang hal ehwal Kumpulan. Dalam menyediakan penyata kewangan, Para pengarah telah memastikan polisi perakaunan yang sesuai digunakan dan diaplikasikan dengan konsisten, keputusan dan anggaran dibuat dengan teliti dan munasabah, dan piawaian perakaunan yang berkenaan telah dipatuhi. Para pengarah bertanggungjawab untuk menyimpan rekod-rekod perakaunan dengan baik yang mendedahkan dengan setepat yang munasabah tentang kedudukan kewangan Kumpulan dan memastikan bahawa penyata kewangan mematuhi keperluan Akta Syarikat, Para pengarah juga bertanggungjawab sepenuhnya untuk mengambil langkah-langkah yang terbuka kepada mereka seberapa munasabah bagi melindungi aset Kumpulan bagi mengelakkan dan mengesan penyelewengan dan lain-lain salah laku. Kawalan Dalaman Lembaga Pengarah bertanggungjawab terhadap sistem kawalan dalaman dan juga mengkaji keberkesanan sistem-sistem ini. Sistem tersebut hanya boleh memberikan jaminan munasabah tetapi bukan jaminan mutlak terhadap sebarang salah nyata atau kerugian ketara. Ia merangkumi polisi formal dan prosidur operasi berhubung dengan perlindungan aset, penyelenggaraan rekod-rekod perakaunan yang baik, kebolehpercayaan kepada maklumat kewangan, mematuhi undang-undang dan peraturan yang berkenaan, dan amalan yang baik. Lembaga Pengarah memerhati secara berterusan di dalam kelengkapan dan integriti sistem kawalan dalaman. Pihak Kumpulan telah dikendalikan di bawah rangka kawalan dalaman yang kukuh yang dihuraikan dan disokong oleh juruaudit luaran, di dalam Penyata Kewangan Dalaman di mukasurat 54. Audit Dalaman Juruaudit dalaman memantau dan melaporkan sistem kawalan dalaman. Mereka menghasilkan rancangan yang telah dipersetujui dengan Jawatankuasa Audit dalam menjalankan tugas dan tanggungjawab dan memberi jaminan bahawa sistem kawalan dalaman adalah mencukupi, cekap dan berkesan. ANNUAL REPORT

49 audit committee report The Board of Directors of Satang Jaya Holdings Berhad is pleased to present the report of the Audit Committee for the financial year ended 30 June AUDIT COMMITTEE MEMBERS AND MEETING ATTENDANCES The Audit Committee comprises the following members:- Lt. Col. (R) Mohd Johari bin Mohd Rais Chairman Appointed on 3 January 2005 Independent Non-Executive Director Ahmad Shakir bin Ismail Member Appointed on 3 January 2005 Independent Non-Executive Director Prof. Dr. Mohd Isa bin Mohd Samat Member Appointed on 3 January 2005 Independent Non-Executive Director All members of the Audit Committee, including the Chairman, will hold office only so long as they serve as Directors of the Company. Should any member of the Audit Committee cease to be a Director of the Company, his membership in the Audit Committee would cease forthwith. If the members of the Audit Committee for any reason be reduced to below three (3), the Board of Directors shall within three (3) months of the event, appoint such number of new members as may be required to make up the minimum number of three (3) members. 2. OBJECTIVES The primary objectives of the Audit Committee are: (a) to provide assistance to the Board in fulfilling its fiduciary responsibilities particularly relating to business ethics, policies and practices and financial management and control. Khir Anuar bin Mohamad Member Appointed on 3 January 2005 Executive Director Chin Kim Fung Secretary TERMS OF REFERENCE OF THE AUDIT COMMITTEE 1. COMPOSITION (b) (c) to provide greater emphasis on the audit functions by increasing the objectivity and independence of external and internal auditors and providing a forum for discussion that is independent of the management. to maintain through regularly scheduled meetings a direct line of communication between the Board and the external auditors, internal auditors and financial management. The Board of Directors shall elect an Audit Committee from amongst themselves (pursuant to a resolution of the Board of Directors) comprising of not less than three (3) members where the majority of them shall be composed of independent non-executive members of the Board. The members of the Audit Committee shall elect a Chairman from amongst themselves. 3. DUTIES AND RESPONSIBILITIES The duties and responsibilities of the Audit Committee shall be:- (a) (b) to consider the appointment of the external auditors, the audit fee, and any questions of resignation or dismissal. to discuss with the external auditors before the audit commence the nature and scope of the audit, and ensure co-ordination where more than one audit firm is involved. 46 SATANG JAYA HOLDINGS BERHAD

50 (c) (d) (e) (f) (g) to review the quarterly and annual financial statements before submission to the Board, focusing particularly on:- (i) (ii) any changes in accounting policies and practices major judgement areas (iii) significant adjustments resulting from the audit (iv) the going concern assumption. (v) compliance with accounting standards (vi) compliance with stock exchange and legal requirements to discuss problems and reservations arising from the interim and final audits, and any matters the auditors may wish to discuss (in the absence of management where necessary). to review the internal audit programme, consider the major findings of internal audit investigations and management's response, and ensure co-ordination between the internal and external auditors. to keep under review the effectiveness of internal control systems, and in particular review the external auditors' management letter and management's response. to carry out such other functions as may be agreed to by the Audit Committee and the Board of Directors. The Committee is empowered by the Board to retain persons having special competence as necessary to assist the Committee in fulfilling its responsibilities. 5. MEETING AND MINUTES The Audit Committee shall hold not less than four (4) meetings a year, the quorum for each meeting shall be two (2) members. In addition to the Committee members, the head of internal audit shall normally attend the meetings. Representatives of the external auditors shall attend meetings where matters relating to the audit of the statutory accounts and/or the external auditors are to be discussed. Minutes of each meeting shall be kept and distributed to each member of the Committee and also to the other members of the Board. The Committee Chairman shall report on each meeting to the Board. The Secretary to the Audit Committee shall be the Company Secretary. The Audit Committee held one (1) meeting during the financial year ended 30 June The details of attendance of the Audit Committee members are as follows:- Name Attendance Lt. Col. (R) Mohd Johari bin Mohd Rais 1/1* Ahmad Shakir bin Ismail 1/1* Prof. Dr. Mohd Isa bin Mohd Samat 1/1* Khir Anuar bin Mohamad 1/1* 4. AUTHORITY The Committee is authorised by the Board to investigate any activity within its terms of reference. It is authorised to seek any information it requires from any employee and all employees are directed to co-operate with any request made by the Committee. * Reflects the attendance and the number of meetings held during the period the Director held office. The Head of Internal Audit, the Accountant and the Company Secretary were also invited to attend the audit committee meeting. ANNUAL REPORT

51 audit committee report SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE The activities undertaken by the Audit Committee during the financial year ended 30 June 2005 included the following:- 1. Reviewed the quarterly and year-to-date unaudited financial results before submission to the Board for consideration and approval; 2. Reviewed and discussed the external auditors audit report and management s response thereof; 3. Reviewed the external auditors scope of work and audit plan for the year; 4. Reviewed the internal audit reports presented and considered the major findings of internal audit in the Group s operating subsidiaries through the review of the internal audit reports tabled and management responses thereof and ensuring significant findings are adequately addressed by Management; 5. Reported to the Board on its activities and significant findings and results; 6. Reviewed the shareholders circular in relation to the recurrent related party transactions. SUMMARY OF ACTIVITIES OF THE INTERNAL AUDIT FUNCTION The services of the Internal Audit Department of Satang Jaya Holdings Berhad was engaged to undertake the internal audit function that would enable the Audit Committee to discharge its function. The activities undertaken by the Internal Audit Department of Satang Jaya Holdings Berhad during the financial year ended 30 June 2005 included the following:- 1. Reviewed the existing systems, controls and procedures of various operating units within the Group; 2. Provided recommendations to assist the various operating units and the Group in accomplishing its internal control requirements by suggesting improvements to the effectiveness of such control processes; 3. Carried out audit assignments on its Branch Operations; 4. Issued internal audit reports incorporating audit recommendations and management s responses in relation to any audit findings on the weaknesses in the systems and controls to the Audit Committee and the respective operations management; 5. Followed up with management on the implementation of the agreed audit recommendations; and 6. Internal audit plan for the year was reviewed and evaluated by the Audit Committee. 48 SATANG JAYA HOLDINGS BERHAD

52 laporan jawatankuasa audit Lembaga Pengarah Satang Jaya Holdings Berhad dengan sukacitanya membentangkan laporan Jawatankuasa Audit bagi tahun kewangan berakhir 30 Jun AHLI JAWATANKUASA AUDIT DAN KEHADIRAN MESYUARAT Jawatankuasa Audit terdiri daripada ahli-ahli berikut:- Lt. Kol. (B) Mohd Johari bin Mohd Rais Pengerusi Dilantik pada 3 Januari 2005 Pengarah Bebas Bukan Eksekutif Ahmad Shakir bin Ismail Ahli Dilantik pada 3 Januari 2005 Pengarah Bebas Bukan Eksekutif Prof. Dr. Mohd Isa bin Mohd Samat Ahli Dilantik pada 3 Januari 2005 Pengarah Bebas Bukan Eksekutif Ahli-Ahli Jawatankuasa Audit akan memilih dan melantik seorang Pengerusi dari kalangan mereka. Semua ahli Jawatankuasa Audit, termasuk Pengerusinya, akan mengekalkan keanggotaannya selagi mereka berkhidmat sebagai ahli Lembaga Pengarah Syarikat. Sekiranya mana-mana ahli Jawatankuasa Audit berhenti dari menjadi Ahli Lembaga Pengarah, maka keahlian/ keanggotaannya sebagai ahli Jawatankuasa Audit akan turut termansuh. Sekiranya keanggotaan Jawatankuasa Audit, walau dengan apa jua sebabnya, bilangannya kurang dari tiga (3), Lembaga Pengarah, dalam masa tiga (3) bulan dari waktu tersebut, akan melantik ahli baru mengikut bilangan yang diperlukan bagi memenuhi keperluan minima keanggotaan iaitu tiga (3) ahli. 2. OBJEKTIF (TUJUAN) Objektif utama Jawatankuasa Audit adalah: Khir Anuar bin Mohamad Ahli Dilantik pada 3 Januari 2005 Pengarah Eksekutif Chin Kim Fung Setiausaha TERMA RUJUKAN JAWATANKUASA AUDIT. 1. KEAHLIAN Jawatankuasa Audit hendaklah dilantik oleh Lembaga Pengarah dari kalangan para Pengarah (berdasarkan kepada satu resolusi Lembaga Pengarah) yang terdiri tidak kurang dari tiga (3) ahli dimana majoriti dikalangan mereka adalah Pengarah Bebas Bukan Eksekutif Lembaga Pengarah Syarikat ini. (a) (b) (c) untuk membantu Lembaga Pengarah dalam memenuhi tanggungjawab fiduciary nya terutama berhubung etika perniagaan, polisipolisi dan amalan-amalan serta pengurusan dan kawalan kewangan. untuk memberikan penekanan yang lebih ke atas fungsi audit dengan mempertingkat tujuan dan kebebasan juruaudit luar dan dalam dan menyediakan forum bagi perbincangan yang bebas dan tidak tertakluk kepada Pengurusan. Untuk mengekalkan hubungan terus di antara Lembaga Pegarah dengan Juruaudit Luar, Juruaudit Dalam serta Pengurusan Kewangan dengan mengadakan mesyuarat-mesyuarat berjadual. ANNUAL REPORT

53 laporan jawatankuasa audit 3. TUGAS-TUGAS DAN TANGGUNGJAWAB Tugas-tugas dan tanggungjawab Jawatankuasa Audit adalah sepertimana berikut: (a) untuk mengkaji dan mengesyorkan perlantikan Juruaudit-Juruaudit Luar, Yuran Juruaudit serta menangani sebarang permasalahan tentang perletakkan jawatan atau pemecatan Juruaudit. (b) (c) Untuk mengadakan perbincangan dengan Juruaudit Luar mengenai bentuk dan skop sesuatu audit sebelum sesuatu kerja audit dilaksanakan dan seterusnya memastikan keselarasan audit apabila lebih dari satu Firma Juruaudit terlibat. untuk mengkaji laporan suku tahunan dan penyata kewangan tahunan sebelum dimajukan untuk pertimbangan dan kelulusan Lembaga Pengarah dengan memfokuskan kepada :- (i) sebarang perubahan dalam polisi/dasar dan amalan perakaunan. (ii) Perkara yang melibatkan keputusan penting. (iii) Pindaan-pindaan utama hasilan dari perlaksanaan kerja audit (iv) Isu-isu penting yang timbul daripada perlaksanaan kerja audit (v) Pematuhan terhadap piawaian perakaunan (vi) Pematuhan terhadap tata keperluan Bursa Saham dan badan perundangan. (d) (e) (f) (g) 4. BIDANG KUASA untuk membincangkan permasalahan serta keraguan yang timbul daripada audit interim dan akhir, dan sebarang perkara yang ingin dibincangkan oleh Juruaudit Luar (tanpa kehadiran pengurusan, bilamana perlu). Untuk mengkaji program audit dalaman, mempertimbangkan hasil utama keputusan pemeriksaan audit serta maklumbalas pengurusan dan seterusnya memastikan koordinasi di antara Juruaudit Luar dan Juruaudit Dalam. untuk sentiasa mengkaji keberkesanan sistem kawalan dalaman, terutamanaya mengkaji surat juruaudit luar kepada pengurusan dan tindakbalas pengurusan. Untuk melaksanakan sebarang fungsi lain yang telah dipersetujui oleh Jawatankuasa Audit dan Lembaga Pengarah. Jawatankuasa Audit adalah diberi kuasa oleh Lembaga Pengarah untuk menyiasat sebarang aktiviti dalam bidang rujukannya dan diberi kuasa untuk mendapatkan sebarang maklumat yang diperlukannya dari mana-mana kakitangan syarikat. Semua kakitangan adalah diarahkan untuk bekerjasama dengan sebarang permohonan yang dibuat oleh Jawatankuasa Audit. Jawatankuasa Audit ini juga adalah diberi untuk mengekalkan sebarang orang yag mempunyai kecekapan tertentu yang diperlukan bagi membantu Jawatankuasa tersebut melaksanakan tanggungjawab mereka. 50 SATANG JAYA HOLDINGS BERHAD

54 5. MESYUARAT DAN MINIT MESYUARAT. Jawatankuasa Audit akan mengadakan tidak kurang dari empat (4) mesyuarat dalam setahun, dengan korumnya seramai dua (2) ahli bagi setiap mesyuarat. Selain dari ahli Jawatankuasa, Ketua Juruaudit Dalaman akan turut serta menghadiri mesyuarat ini. Wakil Juruaudit Luar akan turut hadir bilamana sesuatu perkara berhubung pengauditan Akaun-Akaun Statutori dan/atau melibatkan perihal Juruaudit Luar hendak dibincangkan. Minit mesyuarat bagi setiap mesyuarat akan disimpan dan diedarkan kepada setiap ahli Jawatankuasa serta ahli Lenbaga Pengarah yang lain. Pengerusi Jawatankuasa Audit akan mengemukakan lapuran di dalam setiap Mesyuarat Lembaga Pengarah. Setiausaha Syarikat adalah juga Setiausaha Jawatankuasa Audit. Jawatankuasa Audit mengadakan satu (1) mesyuarat pada tahun kewangan berakhir 30 Jun Maklumat kehadiran ahli Jawatankuasa Audit adalah seperti berikut:- Nama Kehadiran Lt. Kol. (B) Mohd Johari bin Mohd Rais 1/1* Ahmad Shakir bin Ismail 1/1* Prof. Dr. Mohd Isa bin Mohd Samat 1/1* Khir Anuar bin Mohamad 1/1* Ketua Audit Dalaman, Akauntan dan Setiausaha Syarikat turut diundang untuk menghadiri mesyuarat jawatankuasa audit. RINGKASAN AKTIVITI JAWATANKUASA AUDIT Aktiviti yang dijalankan oleh Jawatankuasa Audit pada tahun kewangan berakhir 30 Jun 2005 meliputi yang berikut:- 1. Menyemak keputusan kewangan suku tahunan dan tahunan mutakhir yang belum diaudit sebelum dibentangkan kepada Lembaga Pengarah untuk pertimbangan dan kelulusan; 2. Menyemak dan berbincang dengan juruaudit luar tentang laporan audit juruaudit luar dan tindakbalas pengurusan terhadapnya; 3. Menyemak skop kerja juruaudit luar dan rancangan audit bagi tahun tersebut; 4. Menyemak laporan juruaudit dalaman yang dibentangkan dan mempertimbangkan penemuan penting audit dalaman dalam syarikat-syarikat subsidiari Kumpulan yang beroperasi melalui kajian laporan audit dalaman yang dibentangkan dan tindakbalas pengurusan mengenainya serta memastikan penemuan penting tersebut ditangani sewajarnya oleh pihak Pengurusan; 5. Melaporkan kepada Lembaga mengenai aktivitinya dan penemuan dan keputusan penting; 6. Menyemak pekeliling pemegang saham berhubung urusniaga pihak berkaitan berulangan. * Menunjukkan kehadiran dan bilangan mesyuarat yang diadakan dalam tempoh Pengarah tersebut memegang jawatan. ANNUAL REPORT

55 laporan jawatankuasa audit RINGKASAN AKTIVITI FUNGSI AUDIT DALAMAN Jabatan Audit Dalaman Satang Jaya Holdings Berhad ditugaskan untuk melaksanakan fungsi audit dalaman yang membolehkan Jawatankuasa Audit menjalankan fungsinya. Aktiviti yang dilaksanakan oleh Jabatan Audit Dalaman Satang Jaya Holdings Berhad pada tahun kewangan berakhir 30 Jun 2005 meliputi yang berikut:- 1. Mengkaji sistem, kawalan dan prosedur yang sedia ada bagi pelbagai unit operasi dalam Kumpulan; 2. Menyediakan syor untuk membantu pelbagai unit operasi dan Kumpulan dalam memenuhi keperluan kawalan dalamannya dengan mencadangkan peningkatan kepada keberkesanan proses kawalan tersebut; 3. Melaksanakan tugas audit di Operasi Cawangannya; 4. Mengeluarkan laporan audit dalaman yang menggabungkan syor audit dan tindakbalas pengurusan berhubung sebarang penemuan audit mengenai kelemahan sistem dan kawalan kepada Jawatankuasa Audit dan pengurusan operasi berkenaan; 5. Mengadakan tindakan susulan dengan pihak pengurusan berhubung pelaksanaan syor audit yang dipersetujui; dan 6. Rancangan audit dalaman bagi tahun tersebut dikaji dan dinilai oleh Jawatankuasa Audit. 52 SATANG JAYA HOLDINGS BERHAD

56 statement of internal control Paragraph of the Bursa Malaysia Securities Berhad s Listing Requirements specified that the Board of Directors is to provide a Statement on Internal Control for the Group. The Malaysian Code of Corporate Governance stipulates that the Board of Directors of listed companies should maintain a sound system of internal control to safeguard shareholders investment and the Group s assets. Board Responsibility The Board is responsible to maintain a sound system of internal controls and for reviewing its adequacy and integrity. It includes not only financial controls but operational and compliance controls and risk management. Due to the limitations inherent in an internal control system, management has affected an internal control system designed to manage rather than eliminate the risk that may impede the achievement of the Group s business objectives. Risk Management Risk assessment and evaluation is an integral part of the annual business planning and budgeting process. The Group has in place a risk management unit comprising heads of department who develop the risk management framework, undertake preliminary assessment of the key business risks within the Group s core business divisions and implement mitigating strategies to assist the Board in the discharge of its risk management responsibilities. Under this process, the risk map and risk assessment report summarize the identified risks, the risk impact, the controls and processes for managing them. Other Key Elements of Internal Control The other key elements of the Group s internal control systems are as follows: Clearly defined terms of reference, authorities and responsibilities of the various committees, which include Audit Committee, Nomination Committee and Remuneration Committee; Systematically documented internal policies and procedures set out in a series of Standard Practice Manuals. Manuals are subject to regular review and improvement; Regular and comprehensive information provided to management and the Board, covering financial performance and key business indicators; A detailed budgeting process where operating units prepare budgets for the coming year which are approved both at the operating unit level and by the Board; Quarterly monitoring of results by the management and appropriate action taken, when necessary; Regular visits to operating units by the management team and, where deemed appropriate, the Board; and An ISO 9001 Quality Management System, which is subject to regular review and improvement, continuously manages and controls the quality requirement of the Company s products and services. ANNUAL REPORT

57 penyata kawalan dalaman Perenggan Keperluan Penyenaraian Bursa Malaysia Securities Berhad menyatakan bahawa Lembaga Pengarah perlu mengeluarkan Penyata Kawalan Dalaman untuk Kumpulan. Kod Urus Tadbir Korporat Malaysia mensyaratkan bahawa Lembaga Pengarah syarikatsyarikat tersenarai harus mengekalkan sistem kawalan yang betul untuk melindungi pelaburan pemegang saham dan aset Kumpulan. Tanggungjawab Lembaga Pengarah Lembaga Pengarah bertanggungjawab untuk mengekalkan sistem kawalan dalaman yang betul dan mengkaji kelengkapan dan integritinya. Sistem kawalan kewangan bukan sahaja merangkumi kawalan kewangan tetapi juga kawalan operasi, pematuhan dan pengurusan risiko. Oleh kerana pembatasan yang terkandung di dalam sistem kawalan dalaman, pihak pengurusan telah mengesan sistem kawalan dalaman yang direka untuk mengurus, daripada menghapuskan risiko yang mungkin menghalang pencapaian objektif perniagaan Kumpulan. Pengurusan Risiko Kajian dan penilaian risiko adalah sebahagian daripada proses perancangan perniagaan dan belanjawan tahunan. Kumpulan telah menyediakan unit pengurusan risiko yang terdiri daripada ketua-ketua bahagian, yang membina rangka pengurusan risiko, menanggung penilaian awal risiko perniagaan utama di dalam bahagian-bahagian teras perniagaan Kumpulan dan melaksanakan strategi pengurangan risiko untuk membantu Lembaga Pengarah dalam menjalankan tanggungjawab pengurusan risiko. Di bawah proses ini, peta risiko dan laporan penilaian risiko merumuskan risiko yang dikenal pasti, kesan risiko tersebut, kawalan dan proses untuk menguruskannya. Unsur-unsur Kawalan Dalaman Utama yang Lain Unsur-unsur kawalan dalaman utama Kumpulan yang lain adalah seperti berikut: Bidang rujukan, agihan kuasa dan tanggungjawab yang ditakrifkan dengan jelas bagi pelbagai jawatankuasa, termasuk Jawatankuasa Audit, Jawatankuasa Pencalonan dan Jawatankuasa Imbuhan; Polisi dalaman dan prosidur yang didokumen secara sistematik dibentangkan di dalam Manual Amalan Piawai. Manual perlu dikaji dan ditingkatkan dari masa ke semasa; Maklumat lazim dan teratur diberi kepada pengurusan dan Lembaga Pengarah, meliputi prestasi kewangan dan petunjuk perniagaan utama; Proses belanjawan terperinci yang memerlukan unitunit operasi menyiapkan belanjawan untuk tahun berikutnya yang diluluskan di peringkat operasi dan Lembaga Pengarah; Pemantauan keputusan berkala oleh pengurusan dan membuat tindakan yang sesuai, bila perlu; Lawatan lazim ke unit-unit operasi oleh kumpulan pengurusan dan Lembaga Pengarah, jika perlu; dan Sistem Pengurusan Kualiti ISO 9001, yang perlu dikaji dan dipertingkatkan dari masa ke semasa, untuk menguruskan dan mengawal keperluan kualiti produk dan perkhidmatan Syarikat secara berterusan. 54 SATANG JAYA HOLDINGS BERHAD

58 additional compliance information maklumat kepatuhan tambahan NON-AUDIT FEES There were no non-audit fees paid to the external auditors by the Group and the Company during the financial year Share Buy-Back, Options, Warrants or Convertible Securities No Share Buy-Back, Options, Warrants or Convertible Securities were implemented and/or exercised during the financial year Material Contracts There were no material contracts entered into by the Company and/or its subsidiaries involving directors and major shareholders interests. Revaluation Policy on Landed Properties There was no revaluation policy on landed properties in place during the financial year Recurrent Related Party Transaction There was no recurrent related party transaction during the financial year. YURAN BUKAN AUDIT Tiada bayaran yuran bukan audit kepada juruaudit luaran oleh Kumpulan dan Syarikat pada tahun kewangan Pembelian Balik Saham, Opsyen, Waran atau Sekuriti Boleh Tukar Tiada Pembelian Balik Saham, Opsyen, Waran atau Sekuriti Boleh Tukar dilakukan dan/atau dilaksanakan pada tahun kewangan Kontrak Penting Tiada kontrak penting dimetrai oleh Syarikat dan/atau anak-anak syarikatnya yang melibatkan kepentingan pengarah dan pemegang saham utama. Dasar Penilaian Semula Harta Bertanah Tiada dasar penilaian semula harta bertanah direkod pada tahun kewangan Urusniaga Pihak Berkaitan Yang Berulangan Tiada urusniaga pihak berkaitan yang berulangan pada tahun kewangan ANNUAL REPORT

59 awards & recognition anugerah & pengiktirafan RMAF Maintenance Authorised Contractor (MAC) for Satang Jaya Sdn. Bhd. (Klang Branch) 2. Department of Civil Aviation (DCA) 3. Airod Sdn Bhd (Approved Vendor) 4. Beauford (Certificate of Approval) 5. Kementerian Kewangan Malaysia (Akuan Pendaftaran Kontraktor Bumiputera) 56 SATANG JAYA HOLDINGS BERHAD

60 Quality System Registration Certification (MS ISO 9001:2000 Quality Management System) Satang Jaya Sdn. Bhd., Bandar Baru Klang 2. Satang Jaya Sdn. Bhd., site 2 Cawangan Subang 3. Satang Jaya Sdn. Bhd., site 4 Cawangan Alor Star 4. Satang Jaya Sdn. Bhd., site 5 Cawangan Butterworth 5. Satang Jaya Sdn. Bhd., site 6 Cawangan Kuching 6. Satang Jaya Sdn. Bhd., site 7 Cawangan Kuantan 7. Satang Jaya Sdn. Bhd., site 8 Cawangan Labuan 8. Satang Jaya Sdn. Bhd., site 9 Cawangan Lumut ANNUAL REPORT

61 calendar of significant events kalendar peristiwa-peristiwa penting 8 JULY/JULAI 2004 YBhg General Dato' Seri Mohd Azumi bin Mohamed and his entourage of 9 officers visited Satang Jaya facilities. In honor of his inaugural visit, Satang Jaya organized a golf tournament at Glenmarie Golf and Country Club in Shah Alam. Lawatan oleh YBhg Jeneral Dato Seri Mohd Azumi bin Mohamed dan rombongan seramai 9 orang pegawai ke kemudahan Satang Jaya. Bagi meraikan lawatan pertama beliau, Satang Jaya telah mengadakan pertandingan golf di Glenmarie Golf and Country Club di Shah Alam. 5 6 OCTOBER/OKTOBER 2004 The Inaugural IFE International Branch Meet 2004 Conference and Exhibition, Putra World Trade Centre. Persidangan dan Pameran IFE International Branch Meet 2004 yang pertama di Pusat Dagangan Dunia Putra. 7 OCTOBER/OKTOBER 2004 YBhg ACP Haji Abd Halim bin Siraj, Deputy Director of Logistic, Royal Malaysian Police (Armament) and his entourage visited Satang Jaya facilities. Lawatan oleh YBhg ACP Haji Abd Halim bin Siraj, Timbalan Pengarah Logistik, Polis DiRaja Malaysia (Pasukan Bersenjata) dan rombongannya ke kemudahan Satang Jaya. 12 OCTOBER/OKTOBER 2004 YBhg Tuan Haji Rosli bin Abd Shukor, Under Secretary Procurement Division, Ministry of Defence and his entourage of 13 members visited Satang Jaya facilities and also WannaStation.com (M) Sdn Bhd in Kelana Jaya. Lawatan oleh YBhg Tuan Haji Rosli bin Abd Shukor, di bawah Bahagian Pemerolehan Setiausaha, Kementerian Pertahanan dan rombongan 13 orang ahli ke kemudahan dan WannaStation.com (M) Sdn Bhd di Kelana Jaya. 22 NOVEMBER/NOVEMBER 2004 Participated in Indo Defence 2004 Expo and Forum at Jakarta Fairgrounds Kemayoran Centre, Jakarta. Mengambil bahagian dalam ekspo dan forum Indo Defence 2004 di Jakarta Fairgrounds Kemayoran Centre, Jakarta. 17 DECEMBER/DISEMBER 2004 Satang Jaya welcomed YBhg Lt Gen Dato' Haji Shahron bin Haji Ibrahim RMAF, Chief of Air Operations, Royal Malaysian Air Force as an effort to introduce and promote Satang Jaya products and capabilities. Satang Jaya mengalu-alukan kedatangan YBhg Leftenen Jeneral Dato Hj Shahrom bin Haji Ibrahim TUDM, Ketua Operasi Udara, Tentera Udara DiRaja Malaysia sebagai usaha memperkenal dan mempromosi produk-produk dan kebolehan Satang Jaya. 58 SATANG JAYA HOLDINGS BERHAD

62 28 JANUARY/JANUARI 2005 Underwriting Agreement Signing Ceremony at AmMerchant Bank office. Majlis Menandatangani Perjanjian Menaja Jamin di pejabat AmMerchant Bank. 23 FEBRUARY/FEBRUARI 2005 Official launch of Prospectus. Pelancaran rasmi Prospektus. 8 MARCH/MAC 2005 Balloting. Undian. 16 MARCH/MAC 2005 Satang Jaya Holdings Berhad officially listed on the Second Board of Bursa Malaysia. Satang Jaya Holdings Berhad disenaraikan secara rasmi di Papan Kedua Bursa Malaysia. 31 MARCH/MAC 2005 YBhg Laksamana Tan Sri Dato' Seri Mohd Anwar bin Mohd Nor, Chief of Navy and his entourage of 8 officers visited Satang Jaya facilities. A golf tournament was organized at Kelab Golf Sultan Abdul Aziz Shah in Shah Alam, in honor of his first visit to Satang Jaya. Lawatan oleh YBhg Laksamana Tan Sri Dato Seri Mohd Anwar bin Mohd Nor, Ketua Turus Tentera Laut DiRaja Malaysia dan rombongan ke kemudahan Satang Jaya. Satu pertandingan golf telah diadakan di Kelab Golf Sultan Abdul Aziz Shah, Shah Alam untuk meraikan lawatan pertama beliau ke Satang Jaya. ANNUAL REPORT

63 calender events kalendar peristiwa-peristiwa penting 5 APRIL/APRIL 2005 YBhg Dato' Haji Ahmad Latffi bin Hashim, the Deputy Secretary General (Development), Ministry of Defence and his entourage visited Satang Jaya. A demonstration of the Hartindo product an Environmental Friendly Fire Protection System was carried out specially for the VIP visitors. Lawatan oleh YBhg Dato Haji Ahmad Latffi bin Hashim, Timbalan Ketua Setiausaha (Pembangunan), Kementerian Pertahanan dan rombongannya ke Satang Jaya. Satu demonstrasi produk Hartindo Sistem Perlindungan Kebakaran Mesra Alam telah dilaksanakan untuk lawatan khas ini APRIL/APRIL 2005 PArticipated in Malaysia Armed Forces Career Expo organised by Ministry of Defence at Padang Merdeka, Kuching, Sarawak. Mengambil bahagian dalam Exspo Kerjaya Angkatan Tentera Malaysia yang dianjurkan oleh Kementerian di Padang Merkaka, Kuching, Sarawak. 2 JUNE/JUN 2005 First Board Meeting. Mesyuarat Lembaga Pengarah yang pertama JUNE/JUN 2005 Participated in Oil & Gas Asia 2005 (OGA 2005) Exhibition at Kuala Lumpur Convention Center. Mengambil bahagian dalam pameran Oil & Gas Asia 2005 (OGA 2005) di Pusat Konvensyen Kuala Lumpur JUNE/JUN 2005 Participated in Paris-Le Bourget 2005 at Le Bourget, Paris. Mengambil bahagian dalam Paris-Le Bourget 2005 di Le Bourget, Paris. 60 SATANG JAYA HOLDINGS BERHAD

64 financial statements DIRECTORS REPORT STATEMENT BY DIRECTORS 66 STATUTORY DECLARATION 66 AUDITORS REPORT 67 BALANCE SHEETS 68 INCOME STATEMENTS 69 STATEMENTS OF CHANGES IN EQUITY 70 CONSOLIDATED CASH FLOW STATEMENT 71 CASH FLOW STATEMENT 72 NOTES TO THE FINANCIAL STATEMENTS 73 92

65 directors report DIRECTORS' REPORT The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the financial year ended 30 June PRINCIPAL ACTIVITIES The Company is principally engaged as an investment holding company. The principal activities of its subsidiary companies are disclosed in Note 4 to the financial statements. There have been no significant changes in the nature of these activities during the financial year. FINANCIAL RESULTS Group Company RM RM Profit before taxation 12,706,414 3,714,469 Taxation (3,681,626) (1,040,000) 9,024,788 2,674,469 Minority interest (12,205) Pre-acquisition profit (4,522,879) Net profit for the year 4,489,704 2,674,469 DIVIDENDS No dividend were paid or declared by the Company since the end of the previous financial year. The Directors now recommend a first and final dividend of 6.0% less 28% tax amounting to RM1,728,000 in respect of the current financial year and will be proposed for shareholders approval at the forthcoming Annual General Meeting. ISSUE OF SHARES AND DEBENTURES During the financial year, the Company has issued 79,996,000 new ordinary shares of RM0.50 each under the corporate exercise scheme as disclosed in Notes 18 and 25 to the financial statements. The newly issued shares rank pari passu in all respect with the Company s existing issued ordinary shares. No debentures were issued during the financial year. RESERVE AND PROVISIONS There were no material transfers to or from reserves or provisions during the financial year other those disclosed in the financial statements. 62 SATANG JAYA HOLDINGS BERHAD

66 SHARE OPTIONS No options have been granted by the Company to any parties during the financial year to take up unissued shares of the Company. No shares have been issued during the financial year by virtue of the exercise of any option to take up unissued shares in the Company. As at the end of the financial year, there were no unissued shares of the Company under options. INFORMATION ON THE FINANCIAL STATEMENTS Before the income statements and balance sheets of the Group and of the Company were made out, the Directors took reasonable steps: a. 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 have satisfied themselves that all known bad debts have been written off and that adequate provision had been made for doubtful debts; and b. to ensure that any current assets which were unlikely to be realised in the ordinary course of business including their values as shows in the accounting records of the Group and of the Company have been written down to an amount which they might be expected so to realise. At the date of this report, the Directors are not aware of any circumstances: a. which would render 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; or b. which would render the values attributed to current assets in the financial statements of the Group and of the Company misleading; or c. which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate. 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, in the opinion of the Directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations as and when they fall due. At the date of this report, there does not exist: a. any charge on the assets of the Group and of the Company which has arisen since the end of the financial year which secures the liability of any other person: or b. any contingent liability of the Group and of the Company which has arisen since the end of the financial year. OTHER STATUTORY INFORMATION At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements which would render any amount stated in the financial statements of the Group and of the Company misleading. ANNUAL REPORT

67 OTHER STATUTORY INFORMATION (CONT D) In the opinion of the Directors: a. the results of the operations of the Group and of the Company for the financial year were not substantially affected by any item, transaction or event of a material and unusual nature. b. there has no arisen in the interval between the end of the financial year and the date of this report any such item, transaction or even of a material and unusual nature likely to affect substantially the results of the operations of the Group and of the Company for the succeeding financial year. DIRECTORS OF THE COMPANY Directors who served on the Board of the Company since the date of last report are as follows: COLONEL (HONORARY) JAMALUDDIN BIN HASSAN, RMAF (APPOINTED ON ) ABDUL AZIZ BIN JAMAL (APPOINTED ON ) GAN CHIN SAM (APPOINTED ON ) HAKIM BIN SUKIRMAN (APPOINTED ON ) KHIR ANUAR BIN MOHAMAD (APPOINTED ON ) LT. COL. (R) MOHD JOHARI BIN MOHD RAIS (APPOINTED ON ) AHMAD SHAKIR BIN ISMAIL (APPOINTED ON ) PROF. DR. MOHD ISA BIN MOHD SAMAT (APPOINTED ON ) CHEOW MENG (RESIGNED ON ) MOHD ZAIHAN BIN ABDULLAH (RESIGNED ON ) In accordance with Article 93 of the Company s Articles of Association, all the Directors retire at the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election. DIRECTORS' INTERESTS The shareholdings in the Company of those who were Directors at the end of the financial year, as recorded in the Register of Directors Shareholdings kept by the Company under Section 134 of the Companies Act, 1965, are as follows: Ordinary shares of RM0.50 each Balance at Bought/ Balance at Allotted Sold DIRECT INTEREST COLONEL (HONORARY) JAMALUDDIN BIN HASSAN, RMAF 16,145,400 16,145,400 ABDUL AZIZ BIN JAMAL 16,145,400 16,145,400 GAN CHIN SAM 16,145,400 16,145,400 HAKIM BIN SUKIRMAN 2,279,800 2,279,800 KHIR ANUAR BIN MOHAMAD 130, ,000 LT. COL. (R) MOHD JOHARI BIN MOHD RAIS 50,000 50,000 AHMAD SHAKIR BIN ISMAIL 50,000 (45,000) 5,000 PROF. DR. MOHD ISA BIN MOHD SAMAT 50,000 50, SATANG JAYA HOLDINGS BERHAD

68 DIRECTORS' BENEFITS Since the end of the previous financial year, none of the Directors of the Company has received or become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown in the financial statements) by reason of a contract made by the Company or a related corporation with the Directors or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest except as recorded and disclosed in the notes to the financial statements. During and at the end the financial year, no arrangement subsisted to which the Company or its related Company was a party, whereby Directors might acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR The significant events during the financial year are disclosed in Note 25 to the financial statements. AUDITORS Messrs. Leou & Associates have indicated their willingness to continue in office. Signed on behalf of the Board in accordance with a resolution of the Directors, COLONEL (HONORARY) JAMALUDDIN BIN HASSAN, RMAF Executive Chairman ABDUL AZIZ BIN JAMAL Executive Director KUALA LUMPUR DATE: 20 OCTOBER 2005 ANNUAL REPORT

69 statement by directors pursuant to Section 169(15) of the Companies Act, 1965 We, COLONEL (HONORARY) JAMALUDDIN BIN HASSAN RMAF and ABDUL AZIZ BIN JAMAL, two of the Directors of SATANG JAYA HOLDINGS BERHAD, state that, in the opinion of the Directors, the accompanying Balance Sheets, Statements of Income, Changes in Equity and the Cash Flows of the Group and the Company, together with the notes thereto, are drawn up in accordance with the provisions of the Companies Act, 1965 and the applicable approved accounting standards in Malaysia so as to give a true and fair view of the state of affairs of the Group and of the Company as at 30 June 2005 and of the results and the cash flows of the Group and of the Company for the year ended on that date. Signed on behalf of the Board in accordance with a resolution of the Directors, COLONEL (HONORARY) JAMALUDDIN BIN HASSAN, RMAF Executive Chairman ABDUL AZIZ BIN JAMAL Executive Director KUALA LUMPUR DATE: 20 OCTOBER 2005 statutory declaration Pursuant to Section 169(16) of the Companies Act, 1965 I, KHIR ANUAR BIN MOHAMAD, the Director primarily responsible for the financial management of SATANG JAYA HOLDINGS BERHAD, do solemnly and sincerely declare that, to the best of my knowledge and belief, the accompanying Balance Sheets, Statements of Income, Changes in Equity and the Cash Flows of the Group and the Company, together with the notes thereto, are, in my opinion, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, Subscribed and solemnly declared by the abovenamed KHIR ANUAR BIN MOHAMAD at Kuala Lumpur in the Federal Territory this day of 20 OCTOBER 2005 Before me: KHIR ANUAR BIN MOHAMAD Executive Director SHAFIE BIN DAUD (No. W 350) 38A, Jalan Tun Mohd Fuad 1 Taman Tun Dr. Ismail Kuala Lumpur Commissioner for Oaths 66 SATANG JAYA HOLDINGS BERHAD

70 auditors report to the member of Satang Jaya Holdings Berhad We have audited the accompanying financial statements of SATANG JAYA HOLDINGS BERHAD. 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 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 approved standards on auditing in Malaysia. These standards require that we plan and perform the audit to obtain all the information and explanations which we consider necessary to provide us with evidence to give reasonable assurance that 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 financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion: (a) the above financial statements are properly drawn up in accordance with the provisions of the Companies Act, 1965 and the applicable approved accounting standards in Malaysia so as to give a true and fair view of: (i) (ii) the state of affairs of the Group and of the Company as at 30 June 2005 and of the results and cash flows of the Group and of the Company for the year ended on the date; and the matters required by Section 169 of the Act to be dealt with in the financial statements; and (b) the accounting and other records and registers required by the Act to be kept by the Company and its subsidiaries have been properly kept in accordance with the provisions of the Act. We are satisfied that the financial statements of the subsidiary companies that have been consolidated with the financial statements of the Company are in form and content appropriate and proper for the purpose of the preparation of the consolidated financial statements, and we have received satisfactory information and explanations as required by us for those purposes. The auditor' reports on the financial statements of the subsidiary companies were not subject to any qualification and did not include any comment required to be made under Section 174 (3) of the Act. LEOU & ASSOCIATES CHARTERED ACCOUNTANTS FIRM NO: AF 0659 LEOU THIAM LAI APPROVED COMPANY AUDITOR TREASURY APPROVAL NO.1269/6/06 (J) KUALA LUMPUR DATE: 20 OCTOBER 2005 ANNUAL REPORT

71 balance sheets as at 30 June 2005 Group Company Note RM RM RM PROPERTY, PLANT AND EQUIPMENT 3 3,810,960 INVESTMENT IN SUBSIDIARY COMPANIES 4 20,575,000 INVESTMENT IN ASSOCIATED COMPANY 5 159,600 OTHER INVESTMENT 6 23,000 AMOUNT DUE FROM SUBSIDIARY COMPANIES 7 11,775,742 AMOUNT DUE FROM ASSOCIATED COMPANY 8 11,002 GOODWILL ON CONSOLIDATION 9 249,231 PRE-LISTING EXPENDITURE 77,100 PRE-CONTRACT EXPENDITURE ,401 CURRENT ASSETS Inventories ,686 Trade receivables 12 42,476,878 Other receivables and deposits 3,016,065 Deposits with licensed banks 13 10,672,486 10,666,880 Tax recoverable 159,221 24,000 Cash and bank balances 4,350,915 2,788, ,024,251 13,479,063 2 CURRENT LIABILITIES Trade payables 1,864,017 Other payables and accruals 3,137,681 17,235 1,840 Hire purchase payables 14 19,323 Bills payable 15 5,277,671 Amount due to Directors 16 75,102 Amount due to related parties 17 6,000 Provision for taxation 4,502,081 14,806,773 17,235 76,942 NET CURRENT ASSETS/(LIABILITIES) 46,217,478 13,461,828 (76,940) Financed by: 50,654,672 45,812, SHAREHOLDERS EQUITY Share capital 18 40,000,000 40,000,000 2,000 Reserves 19 10,576,129 5,812,570 (1,840) TOTAL SHAREHOLDERS EQUITY 50,576,129 45,812, Minority interest 51,317 Hire purchase payables 14 8,226 Deferred tax liabilities 20 19,000 50,654,672 45,812, The accompanying Notes form an integral part of the Financial Statements. 68 SATANG JAYA HOLDINGS BERHAD

72 income statements for the year ended 30 June 2005 Group Company Note RM RM RM REVENUE 21 67,950,443 3,800,000 COST OF SALES (37,254,814) GROSS PROFIT 30,695,629 3,800,000 OTHER OPERATING INCOME 191,743 ADMINISTRATIVE EXPENSES (17,486,055) (99,633) (1,840) PROFIT/(LOSS) FROM OPERATIONS 13,401,317 3,700,367 (1,840) INCOME FROM OTHER INVESTMENTS 34,707 14,102 FINANCE COSTS (729,610) PROFIT/(LOSS) BEFORE TAXATION 22 12,706,414 3,714,469 (1,840) TAXATION 23 (3,681,626) (1,040,000) PROFIT/(LOSS) AFTER TAXATION 9,024,788 2,674,469 (1,840) MINORITY INTEREST (12,205) PRE-ACQUISITION PROFIT (4,522,879) NET PROFIT/(LOSS) FOR THE YEAR/PERIOD 4,489,704 2,674,469 (1,840) EARNINGS PER SHARE (sen) Basic DIVIDEND PER SHARE (%) Proposed The accompanying Notes form an integral part of the Financial Statements. ANNUAL REPORT

73 statements of changes in equity for the year ended 30 June 2005 Non distributable Distributable (Accumulated loss)/ Share Share Reserve on Unappropriated Capital Premium Consolidation Profit Total RM RM RM RM RM GROUP Balance at 1 July ,000 (1,840) 160 Acquisition of subsidiary 20,575,000 20,575,000 Shares issued 14,423,000 14,423,000 Public issue 5,000,000 3,139,941 8,139,941 Reserve arising on acquisition of subsidiary company 2,948,324 2,948,324 Net profit for the year 4,489,704 4,489,704 Balance at 30 June ,000,000 3,139,941 2,948,324 4,487,864 50,576,129 COMPANY At date of incorporation 2,000 2,000 Net loss for the period (1,840) (1,840) Balance at 30 June ,000 (1,840) 160 Acquisition of subsidiary 20,575,000 20,575,000 Shares issued 14,423,000 14,423,000 Public issue 5,000,000 3,139,941 8,139,941 Net profit for the year 2,674,469 2,674,469 Balance at 30 June ,000,000 3,139,941 2,672,629 45,812,570 The accompanying Notes form an integral part of the Financial Statements. 70 SATANG JAYA HOLDINGS BERHAD

74 consolidated cash flow statement for the year ended 30 June 2005 Note 2005 RM CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation 12,706,414 Adjustments for: Pre-acquisition profit (6,369,794) Amortisation of goodwill on consolidation 15,577 Depreciation of property, plant and equipment 510,458 Gain on disposal of property, plant and equipment (77,855) Interest expense 214,318 Interest income (24,488) Operating profit before working capital changes 6,974,630 Increase in inventories (12,868) Increase in receivables (17,629,206) Decrease in payables 225,264 Decrease in Directors (75,102) Increase in amount due to related parties 6,000 Cash used in operations (10,511,282) Tax paid (1,312,609) Interest paid (214,318) Pre-listing expenditure 874,015 Pre-contract expenditure 75,233 Net cash used in operating activities (11,088,961) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 24,488 Proceeds from disposal of property, plant and equipment 101,326 Purchase of property, plant and equipment (414,801) Acquisition of subsidiary (net) 4 4,282,653 Net cash from investing activities 3,993,666 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of share capital net of listing expenses 22,562,941 Repayment of bank borrowings (205,964) Repayment of hire purchase payables (238,283) Net cash from financing activities 22,118,694 NET INCREASE IN CASH AND CASH EQUIVALENTS 15,023,399 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2 CASH AND CASH EQUIVALENTS AT END OF YEAR 26 15,023,401 The accompanying Notes form an integral part of the Financial Statements. ANNUAL REPORT

75 cash flow statement for the year ended 30 June Note RM RM CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) before taxation 3,714,469 (1,840) Adjustments for: Dividend income (3,800,000) Interest income (14,102) Operating loss before working capital changes (99,633) (1,840) Increase in payables 15,395 1,840 (Decrease)/Increase in amount due to Directors (75,102) 75,102 Decrease in amount due from subsidiary companies (11,775,742) Cash (used in)/generated from operations (11,935,082) 75,102 Pre-listing expenditure 77,100 (77,100) Net cash used in from operating activities (11,857,982) (1,998) CASH FLOWS FROM INVESTING ACTIVITIES Dividend received 2,736,000 Interest received 14,102 Net cash from investing activities 2,750,102 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of share capital net of listing expenses 22,562,941 2,000 Net cash from financing activities 22,562,941 2,000 NET INCREASE IN CASH AND CASH EQUIVALENTS 13,455,061 2 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR/PERIOD 2 CASH AND CASH EQUIVALENTS AT END OF YEAR/PERIOD 26 13,455,063 2 The accompanying Notes form an integral part of the Financial Statements. 72 SATANG JAYA HOLDINGS BERHAD

76 notes to the financial statements 30 June PRINCIPAL ACTIVITIES AND GENERAL INFORMATION The Company is principally engaged as an investment holding. The principal activities of its subsidiary companies are disclosed in Note 4 to the financial statements. There have been no significant changes in the nature of the activities of the Company and its subsidiary companies during the financial year. The registered office is located at 149-A, Jalan Aminuddin Baki, Taman Tun Dr. Ismail, Kuala Lumpur. The principal place of business is located at 29 & 31, Jalan Tiara, Bandar Baru Klang, Klang, Selangor Darul Ehsan. The Company is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Second Board of the Bursa Malaysia Securities Berhad. The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the Directors on 20 October SIGNIFICANT ACCOUNTING POLICIES (a) Basis of accounting The financial statements of the Group and of the Company are prepared under the historical cost convention and comply with the provisions of the Companies Act, 1965 and the applicable approved accounting standards in Malaysia. (b) Basis of consolidation (i) Subsidiaries The consolidated financial statements include the financial statements of the Company and all its subsidiary companies made up to the end of the financial year. The financial statements of subsidiaries companies acquired and disposed off during the financial year are included in the consolidated financial statements based on the acquisition method from the effective date of acquisition or up to the effective date of disposal respectively. 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. The excess between the cost of an acquisition over the fair value of the Group s share of the net assets of the acquired subsidiary company at the date of acquisition is included in the consolidated balance sheet as goodwill on consolidation and is amortised using the straight-line method over its estimated useful life or 10 years, whichever is shorter. Goodwill on consolidation is reviewed at each balance sheet date and will be written down for impairment where it is considered necessary. Reserve on consolidation is not amortised. The deficit between the cost of an acquisition over the fair value of the Group s share of net assets of the acquired subsidiary company at the date of acquisition is included in the consolidated balance sheet as reverse arising on consolidation. The gain or loss on disposal of a subsidiary company is the difference between net disposal proceeds and the Group s share of its net assets together with any unamortised balance of goodwill and exchange differences which were not previously recognised in the consolidated income statement. ANNUAL REPORT

77 2. SIGNIFICANT ACCOUNTING POLICIES (CONT D) (b) Basis of consolidation (cont d) (ii) Associated companies Associated companies are those companies in which the Group has a long term equity interest and where it exercises significant influence over the financial and operating policies. Investments in associated companies are accounted for in the consolidated financial statements by the equity method of accounting based on the audited or management financial statements of the associated companies. Under the equity method of accounting, the Group s share of post acquisition profits less losses of the associated companies during the period is included in the consolidated income statement. The Group s interest in associated companies 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 as well as goodwill on acquisition. Unrealised gains on transactions between the Group and the associated companies are eliminated to the extent of the Group s interest in the associated companies. Unrealised losses are eliminated unless cost cannot be recovered. However, no consolidated financial statements have been prepared for the investment in associated company as the Directors are of the opinion that this has no material effect on the results of the Group. (c) Property, plant and equipment and depreciation Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. The policy for recognition and measurement of impairment losses is in accordance with Note 1(e). Gains or losses arising from the disposal of an asset is determined as the difference between the estimated net disposal proceeds and the carrying amount of the asset, and is recognised in the income statements. Leasehold industrial land and leasehold factory is amortised over the remaining lease period. Other property, plant and equipment are depreciated on the straight-line method at rates based on their estimated useful lives. The principal annual rates used are as follows:- Furniture and fittings % Office equipment % Tools and equipment % Motor vehicles 20 % Renovation 20 % Computers % (d) Hire purchase Property, plant and equipment acquired under hire purchase agreements are capitalised at their purchase cost and depreciation provided on the same basis as owned assets. The total amount payable under hire purchase agreements is shown under hire purchase payables. The interest is charged to the income statement over the hire purchase period. 74 SATANG JAYA HOLDINGS BERHAD

78 2. SIGNIFICANT ACCOUNTING POLICIES (CONT D) (e) Impairment of assets At each balance sheet date, the Group reviews the carrying amounts of its assets, other than inventories, deferred tax assets and financial assets, to determine whether there is any indication of impairment. If any such indication exists, impairment is measured by comparing the carrying values of 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. Recoverable amounts are estimated for individual assets or, if it is not possible, for the cash-generating unit to which the assets belong. An impairment loss is charged to 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 available previously recognised revaluation surplus for the same asset. (f) Subsidiary companies A subsidiary company is a company in which the Group owns, directly or indirectly, more than 50% of the equity share capital and has control over its financial and operating policies so as to obtain benefits from its activities. Investments in subsidiary companies are stated at historical cost less any provision for diminution in value. Provision is only made where, in the opinion of the Directors, there is a permanent diminution in value. It is recognised as an expense in the period in which it is made. (g) Associated companies Associated companies refer to those companies in which the Group has a long term effective interest between 20% to 50% of the equity capital and the Group is in a position to exercise significant influence on the management. Investments in associated companies are stated at historical cost less any provision for diminution in value. Provision is only made where, in the opinion of the Directors, there is a permanent diminution in value. It is recognised as an expense in the period in which it is made. (h) Inventories Inventories are valued at the lower of cost and net realisable value. Cost is determined on a first-in, firstout (FIFO) basis. (i) Related parties Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party, to the extent that it prevents the other party from fully pursuing its own separate interest, in making financial and operating decisions. (j) Foreign currency transactions Foreign currency transactions are converted into Ringgit Malaysia at the rates of exchange prevailing at transaction dates and, where settlements have not taken place at balance sheet date, at the approximate rate prevailing at that date. All gains and losses on exchange conversion are included in the income statement. ANNUAL REPORT

79 2. SIGNIFICANT ACCOUNTING POLICIES (CONT D) (j) Foreign currency transactions (cont d) The principal closing rates used in translation of foreign currency amounts are as follows:- Foreign currency US Dollar RM Singapore Dollar RM Sterling Pound RM (k) 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. (l) Income tax Taxation in the income statement represents the aggregate amount of current and deferred tax. Current tax is the expected amount payable in respect of taxable income for the year and any adjustments recognised in the year for current tax of prior years. Deferred tax is recognised, using the liability method, on all temporary differences except where the temporary differences 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 in which the assets are realised or the liabilities are settled. Deferred tax is recognised in equity when it relates to items recognised directly in equity. When deferred tax arises from business combination that is an acquisition, the deferred tax is included in the resulting goodwill or negative goodwill. Deferred tax assets are recognised only to the extent that there are sufficient taxable temporary differences relating to the same taxation authority to offset or when it is probable that future taxable income will be available against which the assets can be utilised. (m) Revenue recognition Sales are recognised upon delivery of products and customer acceptance, net of discounts, and after eliminating sales within the Group. Dividend income when the right to receive payment has been established. Other revenues earned by the Group are recognised on the following bases: Interest income as it accrues unless recoverability is in doubt. 76 SATANG JAYA HOLDINGS BERHAD

80 2. SIGNIFICANT ACCOUNTING POLICIES (CONT D) (n) Pre-contract expenditure Where the outcome of a construction contract can be reliably, 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 expenses immediately. When the total of costs incurred on construction contract plus, recognised profit (less recognised losses) exceeds progress billings, the balance is show as amount due from customers on contract. When progress billings exceed costs incurred plus, recognised profits (less recognised losses), the balance is shown as amount due to customers on contracts. (o) Cash and cash equivalents The Group and the Company adopt the indirect method in the preparation of the cash flow statements. Cash and cash equivalents are short term, highly liquid investments with maturities of three months or less from the date of acquisition and are readily convertible to cash with insignificant risk of change in value. (p) Employee benefits (i) Short term benefits Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which employees of the Group rendered the associated services. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensated absences, and short term nonaccumulating 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). Such contributions are recognised as an expense in the income statement as incurred. (q) 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 agreement. Interest, dividends, gains and losses relating to a financial instrument classified as a liability, are reported as expense or income. Distributions to holders of financial instruments classified as equity are charged directly to equity. Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously. ANNUAL REPORT

81 2. SIGNIFICANT ACCOUNTING POLICIES (CONT D) (q) Financial instruments (cont d) (i) Other non-current investments Non-current investments other than investments in subsidiaries, associated companies and joint ventures are stated at cost less impairment losses. On disposal of an investment, the difference between net disposal proceeds and its carrying amount is recognised in the income statement. (ii) Receivables 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 at the balance sheet date. (iii) Payables 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 is recorded at the face value of the loan amount. Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are capitalised as part of the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other 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. 78 SATANG JAYA HOLDINGS BERHAD

82 3. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: Arising from GROUP acquisition of Balance at subsidiary Balance at COST companies Additions Disposals RM RM RM RM RM Leasehold industrial land 1,191,132 1,191,132 Leasehold factory 598, ,426 Furniture and fittings 375,305 19,594 (1,130) 393,769 Office equipment 695,406 38,477 (1,580) 732,303 Tools and equipment 1,002,064 71,891 1,073,955 Motor vehicles 2,368,844 63,541 (243,193) 2,189,192 Renovation 838,205 90, ,848 Computer 785, , ,940 7,854, ,801 (245,903) 8,023,565 Arising from acquisition of ACCUMULATED Balance at subsidiary Charges for Balance at DEPRECIATION companies the year Disposals RM RM RM RM RM Leasehold industrial land 18,133 6,543 24,676 Leasehold factory 11,052 3,399 14,451 Furniture and fittings 214,152 51,426 (940) 264,638 Office equipment 469,092 79,069 (1,470) 546,691 Tools and equipment 702,965 55, ,099 Motor vehicles 1,741, ,557 (220,022) 1,656,476 Renovation 368,149 74, ,640 Computer 399, , ,934 3,924, ,458 (222,432) 4,212,605 NET BOOK VALUE 2005 RM Leasehold industrial land 1,166,456 Leasehold factory 583,975 Furniture and fittings 129,131 Office equipment 185,612 Tools and equipment 315,856 Motor vehicles 532,716 Renovation 486,208 Computer 411,006 3,810,960 ANNUAL REPORT

83 3. PROPERTY, PLANT AND EQUIPMENT (CONT D) The leasehold industrial land and factory are charged to banks for credit facilities granted to the subsidiary company. The leasehold industrial land has a remaining lease term of 92 years which expires on 11 December 2096 while the leasehold land of the leasehold factory has a remaining lease term of 89 years which expires on 8 May The Company has no property, plant and equipment as at 30 June Included in property, plant and equipment of the Group are the costs of the following fully depreciated assets which are still in use: Group 2005 RM Furniture and fittings 57,261 Office equipment 333,272 Tools and equipment 355,578 Renovation 123,772 Computer 222,414 1,092,297 Included in the above property, plant and equipment are assets acquired under hire purchase arrangements as follows: Group 2005 RM COST Motor vehicles 98,072 NET BOOK VALUE Motor vehicles 21, INVESTMENT IN SUBSIDIARY COMPANIES Company RM RM Unquoted shares at cost 20,575, SATANG JAYA HOLDINGS BERHAD

84 4. INVESTMENT IN SUBSIDIARY COMPANIES (CONT D) Details of the subsidiary companies which are all incorporated in Malaysia, are as follows: % EQUITY HELD NAME OF COMPANY PRINCIPAL ACTIVITIES Direct Satang Jaya Sdn. Bhd. 100 Investment holding and distribution and supply of defence and commercial aviation and marine equipment and accessories, contract management and Consultant to Original Equipment Manufacturers (OEMs) Indirect through Satang Jaya Sdn. Bhd. Triopoint (M) Sdn. Bhd. 100 Supplying of defence and aviation equipment and accessories MSJ Technical Support Sdn. Bhd. 100 Maintenance, repairs and overhaul of aviation electronics safety equipment and electromechanical related accessories Satang Services Sdn. Bhd. 100 Maintenance, repairs and overhaul of aviation ground support safety equipments and related accessories Satang Environmental Sdn. Bhd. 100 Supplying and distribution of environmental product, providing training and seminar in respect of Environmental Management System and other related services Satang Cylinder Services Sdn. Bhd. 100 Maintenance, repairs and overhaul of aviation related cylinders that include servicing, inspection, recycling and refilling of gas and other related service Sar Services (M) Sdn. Bhd. 100 Maintenance, repairs and overhaul of safety and survival equipments Satang Hi-Tech Security Sdn. Bhd Providing consultancy and solution services and implementing of high technology and surveillance security system and its related services Port Marine Safety Services Sdn. Bhd. 69 Supplying and maintenance of marine safety and survival equipment and accessories ANNUAL REPORT

85 4. INVESTMENT IN SUBSIDIARY COMPANIES (CONT D) The effects of the acquisition on the financial results of the Group during the financial year are as follows: Group 2005 RM Revenue 67,950,443 Cost of sales (37,254,814) Gross profit 30,695,629 Other operating income 191,743 Administrative expenses (17,386,422) Profit from operations 13,500,950 Income from other investments 20,605 Finance expenses (729,610) Profit before taxation 12,791,945 Taxation (3,681,626) Profit after taxation 9,110,319 Minority interest (12,205) Less: Pre-acquisition profit (4,522,879) Net profit for the year 4,575,235 Summary of effects of the acquisition on the financial position of the Group as at 30 June 2005: Group 2005 RM Property, plant and equipment 3,810,960 Goodwill on consolidation 249,231 Investment in associated company 159,600 Other investments 23,000 Pre-contract expenditure 183,401 Inventories 348,686 Trade receivables 42,476,878 Other receivables, prepayments and deposits 3,016,065 Amount due from associated company 11,002 Fixed deposit with a licensed bank 5,606 Tax recoverable 159,221 Cash and bank balances 1,562,732 Trade payables (1,864,017) Other payables, accruals and deposits (3,120,446) Amount due to holding company (11,775,742) Bills payable (5,277,671) Amount due to related parties (6,000) Hire purchase payables (27,549) Provision for taxation (4,502,081) Deferred taxation (19,000) Minority interests (51,317) 25,362, SATANG JAYA HOLDINGS BERHAD

86 4. INVESTMENT IN SUBSIDIARY COMPANIES (CONT D) The fair value of the assets acquired and liabilities assumed from the acquisition of the subsidiary company are as follows: Group 2005 RM Property, plant and equipment 3,930,088 Goodwill on consolidation 264,808 Investment in associated company 159,600 Other investments 23,000 Pre-listing expenditure 796,915 Pre-contract expenditure 258,634 Inventories 335,818 Trade receivables 20,392,091 Other receivables, prepayments and deposits 7,471,647 Amount due from associated company 11,002 Fixed deposit with a licensed bank 6,961,857 Tax recoverable 172,442 Cash and bank balances 442,635 Trade payables (621,851) Other payables, accruals and deposits (3,988,325) Bills payable (5,442,089) Hire purchase payables (265,832) Term loan (205,964) Bank overdraft (3,121,839) Provision for taxation (4,009,376) Deferred taxation (19,000) Minority interests (22,937) Net assets acquired 23,523,324 Reserve on consolidation (2,948,324) Cost of acquisition 20,575,000 Less: Issue of ordinary share capital (20,575,000) Cash and cash equivalents acquired 4,282,653 4,282, INVESTMENT IN ASSOCIATED COMPANY Group Company RM RM RM Unquoted shares at cost 159,600 ANNUAL REPORT

87 5. INVESTMENT IN ASSOCIATED COMPANY (CONT D) Details of the associated company are as follows: Name : The Industrial and Scientific Co. Sdn. Bhd. % equity held : 38% (2004 Nil) Country of incorporation : Malaysia Principal activities : Importing and distributing of all industrial, scientific and marine products and LPG gas and also maintenance of safety and survival aviation equipments No consolidated financial statements have been prepared for the investment in associated company as the Directors are of the opinion that this has no material effect on the results of the Group. 6. OTHER INVESTMENT This represents investment in local golf club and resort which entitles the Company s management and staff to utilise the facilities. 7. AMOUNT DUE FROM SUBSIDIARY COMPANIES These amounts are interest-free, unsecured and have no fixed term of repayment. 8. AMOUNT DUE FROM ASSOCIATED COMPANY This amount is interest-free, unsecured and has no fixed term of repayment. 9. GOODWILL ON CONSOLIDATION Group 2005 RM Goodwill on consolidation At beginning of year Additions during the year 264,808 At end of year 264,808 Cumulative amortisation At beginning of year Amortisation for the year At end of year (15,577) (15,577) Net at end of year 249, SATANG JAYA HOLDINGS BERHAD

88 10. PRE-CONTRACT EXPENDITURE Group 2005 RM Acquired during the year 258,634 Less: Utilised during the year (75,233) Balance at the end of year 183, INVENTORIES Group Company RM RM RM At cost:-spare parts and comsumables 438,848 Less: Provision for slow moving inventories (90,162) 348, TRADE RECEIVABLES Group Company RM RM RM Trade receivables 42,500,607 Less: Provision for doubtful debts (23,729) 42,476, DEPOSITS WITH LICENSED BANKS The effective interest rate for deposits with licensed banks at the end of the financial year is 2.6% 3% (2004 3%). 14. HIRE PURCHASE PAYABLES Group Company RM RM RM Future minimum hire purchase payments are as follows: Payable within 1 year 21,228 Payable between 1 year and 5 years 8,560 29,788 Less: Unexpired interest (2,239) 27,549 Due within 12 months 19,323 Due after 12 months 8,226 27,549 ANNUAL REPORT

89 15. BILLS PAYABLE The bills payable bears interest at prevailing commercial rate. These banking facilities are secured by the following: a. A legal charge over the Group s properties; b. First debenture covering fixed and floating charges over all present and future assets of the Company; c. Corporate guarantee of the Company; and d. Joint and several guarantee by the directors of the Company. 16. AMOUNT DUE TO DIRECTORS These amounts are interest-free, unsecured and have no fixed term of repayment. 17. AMOUNT DUE TO RELATED PARTIES These amounts are interest-free, unsecured and have no fixed term of repayment. 18. SHARE CAPITAL Group & Company RM RM Authorised: 200,000,000 ordinary share at RM0.50 each 100,000, ,000,000 Issued and fully paid: Ordinary shares at RM0.50 each At beginning of year 2,000 2,000 Allotment on ,575,000 Allotment on ,423,000 Allotment on ,000,000 40,000,000 2,000 In connection with the listing exercise of the Company on the Second Board of the Bursa Securities, the issued and paid up share capital of the Company was increased from RM2,000 to RM40,000,000 by way of: a. 41,150,000 new ordinary shares of RM0.50 each issued to acquire the entire issued and fully paid share capital of a subsidiary company, Satang Jaya Sdn Bhd. b. 28,846,000 new ordinary shares of RM0.50 each for restricted issue. c. 10,000,000 new ordinary shares of RM0.50 each to the Malaysian public and eligible employees, customers, suppliers of the Company and its subsidiary companies. The newly issued shares rank pari passu in all respect with the Company s existing issued ordinary shares. 86 SATANG JAYA HOLDINGS BERHAD

90 19. RESERVES Group Company RM RM RM Non-distributable Share premium account (Note A) 3,139,941 3,139,941 Reserve on consolidation 2,948,324 Distributable Unappropriated profit/(accumulated loss) 4,487,864 2,672,629 (1,840) Total reserves 10,576,129 5,812,570 (1,840) Note A - Share premium account Group & Company RM RM Public issue 5,000,000 Finance listing expenses written off (1,860,059) At end of year 3,139, DEFERRED TAX LIABILITIES Group 2005 RM At beginning of year Acquisition of subsidiary 82,000 Recognised in the income statement (Note 23) (63,000) At end of year 19,000 The deferred taxation is in respect of timing differences arising from capital allowances claimed in advance of depreciation. 21. REVENUE GROUP COMPANY RM RM RM Sales of goods and performance of services 67,950,443 Gross dividends from subsidiary companies 3,800,000 67,950,443 3,800,000 Revenue represents gross invoiced values less trade discounts and returns and commission received and receivable. ANNUAL REPORT

91 22. PROFIT/(LOSS) BEFORE TAXATION This has been determined after charging the following items: Group Company RM RM RM Amortisation of goodwill on consolidation 31,154 Audit fee current year 75,000 11,000 1,000 overprovision in prior year (15,170) Banker acceptance interest and charges 157,724 Depreciation 985,498 Directors' remuneration 2,548,300 72,000 Hire purchase interest 125, ,978 Loss on foreign exchange 17,538 Management fee current year 265,250 overprovision in prior year (80,000) Overdraft interest 200,064 Provision for doubtful debts 23,729 Provision for slow moving inventories 10,087 Rental of motor vehicles 28,614 Rental of equipment 30,258 Rental of premises 383,156 Term loan interest 70,848 and crediting:- Gain on disposal of property, plant and equipment 72,416 Gain on foreign exchange 1,160 Interest received 34,875 14, TAXATION The provision for taxation for the financial year is computed at the prevailing tax rates. Group Company RM RM RM Provision for current year 3,831,000 1,040,000 Overprovision in prior years (86,374) Deferred taxation (Note 20) (63,000) 3,681,626 1,040,000 Income tax is calculated at the Malaysian statutory tax rate of 28% ( %) of the estimated assessable profit for the year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. 88 SATANG JAYA HOLDINGS BERHAD

92 23. TAXATION (CONT D) A reconciliation of income tax expenses applicable to profit before taxation at the statutory income tax rate to income tax expenses at the effective income tax rate of the Group and of the Company is as follows: GROUP 2005 RM Profit before taxation 12,706,414 Taxation at Malaysian statutory tax rate of 28% 3,557,796 Effect of different tax rates on small to medium scale industries (53,637) Expenses not deductible for tax purposes 164,026 Income not subjected to tax (25,899) Utilisation of previously unrecognised tax losses and unabsorbed capital allowance (21,255) Deferred tax assets not recognised for the period 146,969 Overprovision of income tax in prior year (86,374) Tax expenses for the year 3,681,626 COMPANY RM RM Profit/(Loss) before taxation 3,714,469 (1,840) Taxation at Malaysian statutory tax rate of 28% 1,040,051 (515) Expenses not deductible for tax purposes 515 Others (51) Tax expenses for the year 1,040,000 The Company has a tax credit of approximately RM1,064,000 ( Nil) under Section 108 of Income Tax Act, 1967 to frank payment of future dividends. This amount is subject to agreement by the Inland Revenue Board. 24. EARNINGS PER SHARE Group 2005 Basic Earnings Per Share Profit for the year (RM) 4,489,704 Weighted average number of ordinary shares in issue for basic earnings per share 35,394,011 Basic earnings per share (sen) ANNUAL REPORT

93 25. SIGNIFICANT EVENTS (i) (ii) Acquisition of subsidiary companies The Company acquired the entire issued and fully paid-up share capital of Satang Jaya Sdn Bhd comprising 7,000,000 ordinary shares of RM0.50 each, for a total consideration of RM20,575,000 fully satisfied by the issuance of 41,150,000 new ordinary shares in the Company at an issue price of RM0.50 per ordinary share. The acquisition was completed on 31 December Restricted issue Upon completion of the acquisition of Satang Jaya Sdn Bhd, the Company undertook a restricted issue of 28,846,000 new ordinary shares at an issue price of RM0.50 per ordinary share to selected shareholders of the Company. The restricted issue was undertaken on the basis of approximately new ordinary shares for every one existing ordinary share held by selected shareholders of the Company. The restricted issue was completed on 2 February (iii) Offer for sale Offer for sale of 20,000,000 ordinary shares or 25% of the enlarged issued and paid-up share capital of the Company (after the Public Issue) at the IPO price of RM1.00 per offer share by major shareholders, had been allotted to investors which had been identified by the Company. (iv) Public issue The Company issued a Prospectus for the Public Issue of 10,000,000 new ordinary shares or 12.50% of its enlarged issued and paid-up share capital of the Company (after the share issue) at the initial public offering ( IPO ) price of RM1.00 per ordinary share. The Public Issue Shares were completed on 10 March (v) Listing and quotation On 16 March 2005, the Company completed its listing of and quotation for the entire enlarged issued and paid-up share capital of the Company comprising of 80,000,000 ordinary shares of RM0.50 each on the Second Board of Bursa Malaysia Securities Berhad. 26. CASH AND CASH EQUIVALENTS Cash and cash equivalents included in the cash flow statements comprise the following balance sheet amounts: Group Company RM RM RM Deposits with licensed bank 10,672,486 10,666,880 Cash and bank balances 4,350,915 2,788, ,023,401 13,455, SATANG JAYA HOLDINGS BERHAD

94 27. EMPLOYEE INFORMATION Group Company RM RM RM Staff costs 11,162,990 72,000 Average number of employees Staff costs include salaries, allowances, bonus, overtime, Directors remuneration, contributions to employees provident fund, Socso and all other staff related expenses. 28. RELATED PARTY TRANSACTIONS The Group entered into transactions with related parties in the normal course of business on agreed terms and prices. The significant transactions between the Group and these related parties are as follows: Group Company RM RM RM Sales to related parties 12,487 Purchases from related parties 22,596 Management fee charged by related parties 23,250 Purchase of air travel tickets from related parties 191, SEGMENTAL REPORTING The Group is primarily engaged in the maintenance, repair and overhaul of aviation and safety equipment and operations and principally in Malaysia. The other segments are not significant and accordingly, the financial information by geographical and industry segments of the Group s operations are not presented. 30. FINANCIAL INSTRUMENTS Financial Risk Management Policies The Group is exposed to a variety of risk in the normal course of business. The Group s risk management seeks to minimise the potential adverse effects from these exposures. The management reviews and agrees policies for managing each of these risks are as follows:- (a) Foreign currency risk The Group undertakes trade transactions with trade receivables and trade payables where the amounts outstanding are exposed to currency translation risks. In order to minimise foreign exchange risks, the management closely monitor its foreign currency liabilities to ensure that they are closely matched against foreign currency assets. ANNUAL REPORT

95 30. FINANCIAL INSTRUMENTS (CONT D) (b) Interest rate risk The Group is exposed to interest risk through the impact of rate changes on interest bearing assets and liabilities. The Group monitors the interest rate on borrowings closely to ensure that the borrowings are maintained at favourable rates. (c) Credit risk The Group is exposed to credit risk mainly from trade and other receivables. The Group extends credit to its customers based upon careful evaluation of the customers' financial condition and credit history. The Group's exposure to credit risk in relation to its trade and other receivables, should all its customers fail to perform their obligations as at year end is the carrying amount of these receivables as disclosed in the balance sheet. The Group places its fixed deposits with credit worthy institutions. The carrying amount of financial assets in the financial statements, net of any provision of losses, represents the Group's maximum exposure to credit risk without taking account of the value of any collateral or other security obtained. (d) Cash flow risk The Group reviews its cash flow position regularly to manage its exposure to fluctuations in future cash flow associated with its monetary financial instruments. Fair Values The carrying amounts of the financial assets and financial liabilities as reflected in the balance sheet approximate their respective net fair values. (i) Financial assets The Group's principal financial assets are investment in subsidiary companies, intangible assets, trade and other receivables, cash and bank balances and amounts owing by subsidiary companies. The accounting policies applicable to the major financial assets are disclosed in Note 2. (ii) Financial liabilities Debts are classified as liabilities in accordance with the substance of the contractual agreement. Significant financial liabilities include trade and other payables and accrued expenses. 31. COMPARATIVE FIGURES No comparative figures are presented for the Group as this is its first set of consolidated financial statements. 32. DIVIDENDS The Directors of the Company now recommend a first and final dividend of 6.0% less 28% tax amounting to RM1,728,000 in respect of the current financial year and will be proposed for shareholders approval at the forthcoming Annual General Meeting. These financial statements do not reflect this final dividend which will be accounted for in the financial year ending 30 June 2006 when approved by shareholders. 92 SATANG JAYA HOLDINGS BERHAD

96 penyata kewangan LAPORAN PENGARAH PENYATA PENGARAH 98 AKUAN BERKANUN 98 LAPORAN JURUAUDIT 99 KUNCI KIRA-KIRA 100 PENYATA PENDAPATAN 101 PENYATA PERUBAHAN EKUITI 102 PENYATA ALIRAN TUNAI DISATUKAN 103 PENYATA ALIRAN TUNAI 104 NOTA PENYATA KEWANGAN