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Annual Report 2016
Technology Total Solution Provider
METRONIC GLOBAL BERHAD (632068-V)No. 2 Jalan Astaka U8/83, Seksyen U8, Bukit Jelutong40150 Shah Alam, Selangor Darul Ehsan, MalaysiaTel: 603-7847 2111 Fax: 603-7847 5111Email: [email protected]
www.metronic-group.com
METRONIC GLOBAL BERHAD (632068-V) Annual Report 2016
SecurityIntegratedHVAC
CCTV
Fire Electrical
Power
Lightning IT
content
contentVision and Mission 2
Corporate Information 3
Corporate Profile 4
Corporate Structure 6
Five-Year Financial Highlights 7
Profile of Directors 8
Profile of Chief Executive Officer 10
Profile of Senior Management 11
Chairmans’ Statement 14
Management Discussion and Analysis 16
Statement on Corporate Governance 18
Audit Committee Report 32
Statement on Risk Management and Internal Control 37
Directors’ Report and Audited Financial Statements 39
List of Properties 134
Analysis of Shareholdings 135
Notice of Annual General Meeting 137
Proxy Form
Metronic Global berhad (632068-V)
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our Vision• To be an internationally recognized
leading engineering and technology total solution provider.
our Mission• To apply our unique management
style that incorporates our manpower resources, experience, expertise, innovation and creative approach.
• To continously seek new technologiesthatmeetourclients’requirements.
• To create a workplace that motivatesour employees.
• To develop strategic relationshipswithpartners who have skill that enhance and complement our own.
• Tocontinuallyimprovetheeffectivenessofthequalitymanagementsystem.
• Tomaximizevalueofourstakeholders.
Vision & Mission
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CORPORATE INFORMATION
board oF directors
patricK chin hau YuiIndependent Non-Executive Chairman
ric Koh Wai cheeExecutive Director
Khor ben JinIndependent Non-Executive Director
Kua Khai shYuanNon Independent Non-Executive Director
audit coMMittee
Khor Ben JinChairman
Patrick Chin Hau YuiMember
noMination coMMittee
Patrick Chin Hau YuiChairman
Khor Ben JinMember
reMuneration coMMittee
Patrick Chin Hau YuiChairman
Khor Ben JinMember
coMpanY secretarY
Wong Yuet Chyn (MAICSA 7047163)
share reGistrar
Shareworks Sdn BhdNo. 2-1, Jalan Sri Hartamas 8Sri Hartamas, 50480 Kuala LumpurWilayah Persekutuan (KL)Tel :0362011120Fax:0362013121
auditors
SIEWBOONYEONG&ASSOCIATES(AF0660)Chartered AccountantsWisma SBY9-C,JalanMedanTuankuMedanTuanku,50300KualaLumpurTel :03–26938837Fax:03–26938836
solicitors
Messrs Ngeh & Co.
banKers
Malayan Banking BerhadUnited Overseas Bank (Malaysia) Berhad
stocK eXchanGe listinG
Main Market of Bursa Malaysia Securities BerhadStockname:MetronicStockcode:0043
corporate Website
www.metronic-group.com
Metronic Global berhad (632068-V)
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CORPORATE PROFILE
coMpanY historY and deVelopMent
background of company
MetronicGlobalBerhad(‘’TheCompany’’or‘’MGB’’)wasincorporatedinMalaysiaundertheCompaniesAct,1965on22October2003.ThecompanywaslistedonMESDAQMarketofBursaMalaysiaSecuritiesBerhad(‘’BursaSecurities’’)on24May2004andsubsequentlytransferredtotheMainBoard(nowknownasMainMarket)ofBursaSecuritieson12 July 2007.
ThesubsidiariesoftheCompanyspecialiseinsystemintegrationofintelligentbuildingmanagementsystems(‘’IBMS’’)andintegratedsecuritymanagementsystem(‘’ISMS’’),e-projectmanagement(‘’e-PM’’)ofmechanicalandelectricalservice and provision of online administration service for the healthcare sector. Fundamental to this success is the missionoftheCompanyanditssubsidiaries(‘’theGroup’’or‘’MGBGroup’’)tocontinuallyexceedcustomers’increasingexpectations.TheMGBGroupfocusesonbuildingandintegratingworld-classtechnologytothemarketandiscommittedtocontinuouslyimproveitsquality,serviceandproductivity.
the evolution of the MGb Group
TheoriginoftheMGBGroupcanbetracedbacktoAugust1984whenMetronicEngineeringSdnBhd(“MESB”)wasincorporatedtoprovidebuildingautomationservicespecializinginthefieldofIBMSandISMS.MESBsubsequentlyexpandeditsbusinessactivitiestoincludee-PMofmechanicalandelectricalserviceandsupplyofengineeringsystems.MESBcarriesproductsbyprincipalssuchasTACControlsPteLtdandHoneywellIntegratedSecurity,USAwhichareamongst the world’s leading companies in IBMS and ISMS.
Duringtheearlyyears,MESBplayedapivotalroleinnationbuildingbyprovidingstate-of-the-arte-projectmanagementandsystemintegrationservicesforhospitals,officebuilding,shoppingcomplexes,airports,oilrefineriesandmanufacturingplants.Overtheyears,theGrouphasleverageditsexpertisetodevelopuniqueandinnovativeIBMSandISMSproducts,solutionandservices,mainlyintheareasof“intelligentbuildings”.
Astechnologyprogresses,intelligentbuildingshaveevolvedfrommerestand-aloneentitiesintointerconnectedhubswithinthecitywideinfrastructure,knownas“intelligentcities”.Withtheconvergenceoftechnology,stand-alonebuildingsareslowlyformingintosmaller,ecosystemscomprisingatightlyintegratednetworkofbuildingsthatbetterenablethemanagementandoptimizationofsystemsandresources.Thedrivingforceoftheevolutionofintelligentcitiesistheabilitytoreducecost,optimisemanpowerutilisationandenhanceservicelevelsthroughaggregation,serviceintegrationand process automation.
Overtheyears,theGrouphasstrengtheneditspositioninthevaluechaintowardsbecominganICMSprovider.Byconverging newer technologies with the JBCM™ (Java Based Control & Monitoring Software) platform, the Group is abletoprovideavalue-addedpropositionforitscustomersbyenhancingandexpandingitsproductapplications.Inline with the Group’s plan to migrate as a provider of ICMS, these technologies will significantly enhance application security,manageability,reliabilityandavailabilityofanyapplicationwhileloweringthecostofoperationsforitscustomers.
Inamovetodiversifyandcomplement itsexistingcorebusiness, in2008,theGroupviaMetronic iCaresSdnBhd(“Micares”)venturedintoThirdPartyAdministrationandManagedCareOrganisationbusinessesforthehealthcaresectorvia the connectivity applications and infrastructure for the exchange of transactional information through internet.In the year2013,theGrouphasdisposedofftheICTSupportServicesDivision.ThedisposalofMicaresprovidesanopportunityfortheGrouptorealizeitsinvestmentatanattractivereturn,generatefundsforworkingcapitalandinvestmentinotherpotentialbusinessesandrepaymentofborrowings.TherationalefordisposalisalsoduetothefinancialandbusinessprospectisuncertainwiththerecentconsolidationwithintheinsuranceindustryandthevariousmergersandacquisitionofsomeofMicares’majorclientswhichmayaffectMicares’business.
Forgeographicalexpansion,MGBGrouphasembarkedonaseriesofacquisitionstrategiesoverthelastfewyearstocomplement the local market. As at today, the Group has reached China, India, Vietnam and Middle East countries.
annual report 2016
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CORPORATE PROFILE(CONT’d)
principal business actiVities, products and serVices
Presently,MGBGroup,throughitssubsidiaries,specializesinIBMSandISMSwhichencompasshardwareandsoftwarerequiredforthecontrolandmanagementofanintelligentbuildingwithcomponentsincludingheating,ventilationandairconditioning,lighting,fireandsecurityequipment.
Thekeydriversthatareguidingthebuilding/constructionindustrytoadoptthistechnologyare:
• TheonsetofthenetworkconvergenceoftheCCTV,computers,alarmsystemandaccesscontrolwiththeadvancetechnologyofbiometrics;
• PrevalentuseofinternetandIPnetworking;and• Theefficiencyofthesystemasitsavestimeandtravelcost
Theintegrationofthebuilding/industrialautomationsystemsecuritysystemhasbecomeoneofthemostpopularmethodsusedbymanycorporationsinconvergingtheirexistingsystemintoanallencompassingsystem.Two(2)ofthemaincomponentsoftheIBMSandISMSarethehardwareandthesoftwaresolution.ThehardwareportionincludessecuritydevicessuchasCCTV,thevideorecording(eitherdigitaloranalogue),accesscontrolandtheintrusiondevices.Thesoftwaresolutionisanimportantfeaturewhichensuresthatthisequipmentcommunicatedandworkscoherentlyinacommonpersonalcomputer-basedenvironment.
TheGroupispresentlyakeyplayerintheIBMSandISMSindustryinMalaysiaandwithitsexpertiseinsystemintegrationand knowledge of advanced technology.
ThebusinessdivisionsoftheMGBGrouparehighlightedasfollows:
(i) ibMs division
is an integration ofBuildingAutomationSystem,AccessControl,ClosedCircuit TV (‘’CCTV’’) SystemandAddressableFireControl&MonitoringSystemintoonesingleintelligentsystem.Therearethreesub-divisionsasfollows:• BuildingAutomationSystem(‘’BAS’’)• JavaBasedControl&MonitoringSoftware(‘’JBCM’’)• SmartHome
(ii) isMs division
ISMSprovidesahigh levelsecuritysolutionsby integratingall the individualsecuritysystem likeCCTV,CardAccess,PerimeterIntrusionDetectionSystem,DoorMonitoringSystem,GuardTourSystemandAssetTrackingSystem into one single intelligent device.
(iii) e-pM engineering services division
TheGroupisinvolvedintheprovisionofengineeringservicesspecialisinginthefieldofMechanicalandElectrical(‘’M&E’’)
TheGroupiscontinuallydevelopingtheBuildingM&EknowledgeandexpertisewithintheGroupaspartofthedivision’sobjectivestobesufficientlypreparedtobeacompetitiveDesignandConstructM&EContractor.
(iv) industrial automation division
TheGroup,throughitsstrategicalliancewithaJapanesepartnerisinvolvedintheprovisionofindustrialautomationspecializinginAutomatedStorageandRetrievalSystem(‘’ASRS’’).ThelogisticsolutionsofferedbytheGroupfocusesonefficientstorageofgoodswhilepreservingthequalityandfacilitatesmoothretrievalasandwhenneeded.Someofthesolutionsofferedhelpimproveproductqualityduringspeedyinspection,performmultipledistributioncentreswithcross-dockingfacilities,enablethetimelysupplyoflargevariety/highvolumegoodsanddemandcanbeascertainedinrealtimethroughtheinventorycontrolsystem.
Metronic Global berhad (632068-V)
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CORPORATE STRUCTUREAS AT 5 APRIL 2017
METRONICENGINEERING
SDN BHD (125404-M)
MTWOCOUNTRYDEVELOPMENT
SDN BHD (FORMERLY KNOWN AS IPANEL
MALAYSIA SDN BHD) (590326-A)
METRONICMICROSYSTEM
(BEIJING)CO.LTD(PRC)
(COMPANY NO.023500)
BONANZAPARTNERSSDN BHD (1129416-H)
IDEALULTIMATE SDN BHD
(823540-V)
100% 100%
100%
70% 58%
METRONICVIETNAMCOMPANY
LTD
METRONICSAUDI ARABIA
LLC
100%
100%
50%
M ONE COUNTRY
DEVELOPMENTSDN BHD
(733049-M)
METRONICINTEGRATED
SYSTEMSDNBHD(332032-D)
ANHUI LAI’ANMETRONICWATERSUPPLYCO.LTD.
(PRC)
METRONICENGINEERING
PVTLTD
100%
100%
100% 89%
METRONICGAHARUSDN BHD
(753991-V)
annual report 2016
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FIVE-YEAR FINANCIAL HIGHLIGHTS
2012 2013 2014 2015 2016 rM’000 rM’000 rM’000 rM’000 rM’000
Revenue 36,148 31,048 33,057 36,335 48,066Profit/(loss)beforetax (26,761) 5,098 1,856 3,503 (871)Profit/(loss)fortheyear (25,343) 5,128 1,241 4,061 (5,009)Profit/(loss)attributetoequity holders of the company (25,894) 5,160 1,241 3,973 (5,005)Shareholders’ funds 34,515 44,116 47,123 57,159 62,242Netearnings/(loss) per share (cent) (4.08) 0.79 0.18 0.54 (0.66)Net assets per share attributabletoequityholders of the company (cent) 5.44 6.82 6.81 7.83 8.21
36,148
31,048
33,057
36,335
48,066
20122013 2014
2015
2016
34,5155.44
44,1166.82
47,1236.81
62,242
57,1597.83
8.21
2012
2012
2013
2013
2014
2014
20162015
20152016
(26,761)
5,098
1,856
3,503
(871)
2012 2016
2013 2014 2015
(25,343)
5,128 1,241
4,061
(5,009)
2012 2016
2013 2014 2015
(4.08)
0.79 0.18
0.54
(0.66)
2012 2016
2013 2014 2015
reVenue (RM’000)
proFit/(loss) For the Year (RM’000)
net earninGs/(loss) per share (RM’000)
shareholders’ Funds(RM’000)
net assets per share (RM’000)
proFit/(loss) beFore taX (RM’000)
Metronic Global berhad (632068-V)
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PROFILE OF dIRECTORS
patricK chin hau YuiMalaysian, Male, Aged 48 yearsIndependent Non-Executive Chairman
PatrickChinHauYuiwasappointedasIndependentNon-ExecutiveDirectoroftheCompanyon3November2016.HeisalsoamemberofAuditCommitteeandRemunerationCommittee.HealsositsasChairmanoftheNominationCommittee.
HeobtainedaMasterofBusinessAdministrationfromUniversityofStrathclyde,Glasgow,ScotlandaswellasBachelorofBusinessAdministrationfromUniversityofSouthernQueensland,Australia.Hehasmorethan20yearsofWholesaleBanking (Corporate, Commercial, SME) and Investment Banking experience in client coverage, account management and businessdevelopmentinthebankingandfinanceindustry.HeheadedtheDebtCapitalMarketandStructuredLendingbusinessofanInvestmentBankwhereheled,directedandmanagedtheOriginationUnit inmarketing,structuring,loan syndication, implemented annual operating plan and medium term Strategic Plan towards growing the advisory servicesoncross-bordermergerandacquisitiondeals.Hewasresponsibletoidentifybusinessopportunitiesfromhighnet-worth and institutional clients and develop new markets. He had spent several years as the General Manager and HeadofCommercialBankingofalocalbank,spearheadedthemiddlemarketsegmentinareasofbusinessdevelopmentandaccountrelationshipmanagementcoveringbothconventional&Islamicbanking.HehasheldthepositionasaVice-President inCorporateBankingbasedinSingaporehandlingLargeCorporateclientscoveringbothSingaporeand Malaysia.
Hedoesnotholdanydirectorshipinotherpubliclistedcompanies.Hehasnofamilyrelationshipwithanyofthedirectorsand/ormajorshareholdersoftheCompanyanditssubsidiaries.Hedoesnothaveanyconflictof interestwiththeCompanyandhasnotbeenconvictedforanyoffencesinthepast5years.HedoesnotholdanysharesintheCompany.
ric Koh Wai cheeMalaysian, Male, Aged 39 yearsExecutive Director
Ric Koh Wai Chee was appointed as Executive Director of the Company on 31 March 2017. He holds a Bachelor of Business(BankingandFinance)fromMonashUniversity–Melbourne,AustraliaandisaCertifiedCreditProfessional(BusinessCredit)gradedbyTheInstituteofBankersMalaysia.HealsoholdsaBachelorofBusinessminorinLawandAccountingandisamemberofGoldenKeyNationalHonourSociety(Australia).HewasgiventheFacultyofBusinessDeanawardforhisDiplomaofBusinessStudiesbytheAlexanderCollege,Australia.
Heisagoal-drivenprofessionalwith17yearsofsignificant,progressiveinvestmentbankingexperienceandexpertise.Hehasoutstandingcomprehensionoffinancialelementsincludingassets,liabilities,cashflow,riskanalysis,budgeting,investmentstrategies,debtandcapitalmarkets.
HewastheAssociateDirectorofAmInvestmentBankBhd,aninvestmentbankfrom1999to2010andthereafterjoinedOSKInvestmentBank(L)LtdasmemberoftheBoardandasitsChiefOperatingOfficer.HewasaDirectorofSpecialtyFinance with RHB Investment Bank Bhd from 2013 to 2016. Prior to his appointment in 2017, he was a Director in Group Corporate Banking with RHB Bank Bhd.
Hedoesnotholdanydirectorshipinotherpubliclistedcompanies.Hehasnofamilyrelationshipwithanyofthedirectorsand/ormajorshareholdersoftheCompanyanditssubsidiaries.Hedoesnothaveanyconflictof interestwiththeCompanyandhasnotbeenconvictedforanyoffencesinthepast5years.HedoesnotholdanysharesintheCompany.
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PROFILE OF dIRECTORS(CONT’d)
Khor ben JinMalaysian, Male, Aged 41 years
Independent Non-Executive Director
KhorBenJinwasappointedasIndependentNon-ExecutiveDirectoroftheCompanyon3November2016.HeistheChairmanofAuditCommitteeandamemberofbothNominationCommitteeandRemunerationCommittee.
HeisaFellowmemberoftheAssociationoftheCharteredCertifiedAccountants,UnitedKingdom(FCCA),aCharteredAccountantregisteredwithMalaysianInstituteofAccountants(CA),aCertifiedInternalAuditorrecognizedbyUnitedStatesofAmerica(CIA)andaCharteredMemberoftheInstituteofInternalAuditorsMalaysia(CMIIA).HeisaCertifiedInternalAuditor and has extensive experience in internal audit consulting services, risk management exercises and corporate governance reviewwithpublic listedcompanies involved inboth industrialandconsumerproductsmanufacturing,integrated livestock farming activities, property development, construction and trading services.
Hedoesnotholdanydirectorshipinotherpubliclistedcompanies.Hehasnofamilyrelationshipwithanyofthedirectorsand/ormajorshareholdersoftheCompanyanditssubsidiaries.Hedoesnothaveanyconflictof interestwiththeCompanyandhasnotbeenconvictedforanyoffencesinthepast5years.HedoesnotholdanysharesintheCompany.
Kua Khai shYuanMalaysian, Male, Aged 32 years
Non-Independent Non-Executive Director
Kua Khai Shyuan was appointed as Non-Independent Non-Executive Director of the Company on 30 March 2017. He holdsaBachelorDegreeinCommerceManagementandMarketingfromCurtinUniversityofTechnology.
Hebeganhis career in year 2007 acting asRegionalManager forMalaysiaRegion in amulti-national healthcareproductscompanyandwasresponsiblefortheoverallmobilesalesteamaswellasthesupplychainmanagementofthecompany’sproductrange.Inyear2009,hejoinedalocalcompanyspecializinginthefabricationofplasticsmouldsandplasticinjectionmouldingastheHeadofMarketingDivision.
Currently he serves as the Executive Director of DGB Berhad, where his role includes assisting the Group Managing Director in charting the overall strategy and direction of the Group as well as customer relationship management and supply chain management.HealsoservesasExecutiveDirectorofTrivePropertyGroupBerhad,wherehisroleincludesshaping,leadingandexecutingoftheGroup’sstrategyandintegratedbusinessmanagement.HeisalsotheNon-IndependentNon-Executive Director of M N C Wireless Berhad, a company listed on ACE Market of Bursa Malaysia Securities.
Hehasnofamilyrelationshipwithanyofthedirectorsand/ormajorshareholdersoftheCompanyanditssubsidiaries.HedoesnothaveanyconflictofinterestwiththeCompanyandhasnotbeenconvictedforanyoffencesinthepast5years. He does not hold any shares in the Company.
Metronic Global berhad (632068-V)
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PROFILE OF CHIEF EXECUTIVE OFFICER
Vincent set hin FooKMalaysian, Male, Aged 51 yearsChief Executive Officer
Vincent Set Hin Fook was appointed as Chief Executive Officer of the Company on 5 January 2015. He was formerly director ofanumberofpublic-listedcompaniesappointedduringturn-around and restructuring exercise. He was formerly the CEO of LinxisSdnBhd,acustomizedsoftwaredevelopmentandR&DcenteraswellasconceptualizeandmarketingofE-commercebusinessmodels.Overhiscorporatecareer,hehasservedin senior management team and start-up consultant with a numberoflocalandinternationalcompaniesandhasgainedextensive practical experience in strategic management and businessperformanceimprovementarea.
He holds a Bachelor of Science in Physics from the University of Malaya and Master of Science in Electrical Engineering from University of Mississippi, Oxford, United States.
Hehasnofamilyrelationshipwithanyofthedirectorsand/ormajorshareholdersoftheCompanyanditssubsidiaries.HedoesnothaveanyconflictofinterestwiththeCompanyandhasnotbeenconvictedforanyoffenseinthepast5years.Heholds 30,000 shares in the Company.
annual report 2016
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PROFILE OF SENIOR MANAGEMENT
seated from left to right:Chan Eng Seng, Ric Koh Wai Chee, Vincent Set Hin Fook, Ng Kim Nam Vincent.
standing from left to right:LeeRuiChuan,LawrenceChiaSweeLoong,LowChinTat,EricBoonChuanKit,AlexWongLehKui.
ric Koh Wai cheeMalaysian, Male, aged 39 yearsExecutive Director
Please refer Profile of Directors.
Vincent set hin FooKMalaysian, Male, aged 51 yearsChief Executive Officer
Please refer Profile of Chief Executive Officer.
Metronic Global berhad (632068-V)
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PROFILE OF SENIOR MANAGEMENT(CONT’d)
chan enG senGMalaysian, Male, Aged 46 yearsGeneral Manager – Service
ChanEngSengwasappointedasGeneralManager–ServicefortheEngineeringDivisionin2012.HeholdsaDiplomainElectrical&ElectronicsEngineeringfromKolejTunkuAbdulRahman.HejoinedMetronicin1994asServiceEngineerand possesses 22 years of experience in the engineering field specialising in service and maintenance.
HiscurrentlyheadstheServiceandMaintenanceDepartmentwhichprovidesaftersalesserviceforprojectscompleted,andrelatedtestingandcommissioningworks.NotableprojectshandledunderhissupervisionincludeKLCCTower3,KLCCConventionCenterandTelekomBuilding.
Hehasnofamilyrelationshipwithanyofthedirectorsand/ormajorshareholdersoftheCompanyanditssubsidiaries.HedoesnothaveanyconflictofinterestwiththeCompanyandhasnotbeenconvictedforanyoffenseinthepast5years.
nG KiM naM VincentMalaysian, Male, Aged 33 yearsProject Director
NgKimNamVincentwasappointedasProjectDirectorfortheEngineeringDivisiontohandletheMRTProjectin2015.HeholdsaDegreeinMechanicalEngineeringwithDesignfromUniversityofSunderland.HejoinedMetronicin2007asTesting&CommissioningEngineerandhasover9yearsofexperienceintheengineeringfield.
HecurrentlytakeschargeoftheongoingMRTProjectonmanagingthefullspectrumofpurchasing,specifications,manpowerrequirementwhileoverseeingthedesign,planning,installation,testingandcommissioningofthisproject.
Hehasnofamilyrelationshipwithanyofthedirectorsand/ormajorshareholdersoftheCompanyanditssubsidiaries.HedoesnothaveanyconflictofinterestwiththeCompanyandhasnotbeenconvictedforanyoffenseinthepast5years.
laWrence chia sWee loonGMalaysian, Male, Aged 44 yearsHead of Department – Design and Oversea Projects
LawrenceChiaSweeLoongwasappointedasHeadofDepartment–DesignandOverseaProjectsfortheEngineeringDivisionin2012.HeholdsaDiplomainTechnology(MechanicalandManufacturingEngineering)fromKolejTunkuAbdulRahmanandcompletedEngineeringCouncilPart2,UK.HejoinedMetronicin1995asProjectEngineerandhas21years of experience in the engineering field specialising in system design. During this period, he also held the post of CountryManagerfrom2005to2012forMetronicEngineeringS/BRepresentativeOffice(Vietnam)andsubsequentlyMetronic Vietnam Co. Ltd.
He currently handles system design with particular emphasis on BMS and ELV design and provides relevant support andsolutionforcommercialandMRTprojectsintheseareas.
Hehasnofamilyrelationshipwithanyofthedirectorsand/ormajorshareholdersoftheCompanyanditssubsidiaries.HedoesnothaveanyconflictofinterestwiththeCompanyandhasnotbeenconvictedforanyoffenseinthepast5years.
annual report 2016
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PROFILE OF SENIOR MANAGEMENT(CONT’d)
aleX WonG leh KuiMalaysian, Male, Aged 35 yearsHead of Department – Projects
AlexWongLehKuiwasappointedasHeadofDepartment–ProjectsfortheEngineeringDivisionin2013.HeholdsaDegreeinElectrical&ElectronicsEngineeringfromUniversityTenagaNasionalMalaysia.HejoinedMetronicin2006asProjectEngineerandhas10yearsofexperienceintheengineeringfield.
HecurrentlytakeschargeoftheentireProjectteamtohandleallcommercialprojectsinrespectofmaterialsourcing,specifications,manpowerrequirementandprojectexecution.Healsooverseesthedesign,planning,installation,testingandcommissioningpriortoprojectcompletionandhandover.
Hehasnofamilyrelationshipwithanyofthedirectorsand/ormajorshareholdersoftheCompanyanditssubsidiaries.HedoesnothaveanyconflictofinterestwiththeCompanyandhasnotbeenconvictedforanyoffenseinthepast5years.
eric boon chuan KitMalaysian, Male, Aged 43 years
Group Financial Controller
EricBoonChuanKitwasappointedasGroupFinancialControlleron15October2015.HegraduatedwithaDegreeinAccountingfromRoyalMelbourneInstituteofTechnology(RMIT)andhascompletedhisprofessionalqualificationCPAAustralia.HeiscurrentlyamemberoftheMalaysianInstituteofAccountants.
Hehasover15yearsworkingexperiencecommencingfromamediumsizedauditfirmfollowedbykeypostsintheFinance Department with various companies within the trading, manufacturing and education sectors covering financial reportingrequirementsoflistedissuer,operationalcontrols,fundingrequirementsforsustainabilityandorganizationalbudget.PriortojoiningMetronic,hewasFinancialControllerofGroupFinancewithamajorPublishingGroupthathasa significant presence in the local market and fast expanding operations in the ASEAN Region.
HecurrentlyoverseesallfinancialrelatedmattersoftheGroup,fundingrequirements,audit,tax,budgeting,internalcontrolsandriskmanagement,whileensuringcompliancewithBursalistingrequirementsinrespectofannouncements,financial reporting and corporate exercise in general.
Hehasnofamilyrelationshipwithanyofthedirectorsand/ormajorshareholdersoftheCompanyanditssubsidiaries.HedoesnothaveanyconflictofinterestwiththeCompanyandhasnotbeenconvictedforanyoffenseinthepast5years.
loW chin tatMalaysian, Male, Aged 33 years
Senior Project Manager
LowChinTatwasappointedasSeniorProjectManagerfortheEngineeringDivisioninthecurrentyear.HeholdsaBachelorofElectrical&ElectronicsEngineering(Hons)fromUniversityTenagaNasionalMalaysia.HejoinedMetronicin2006asProjectEngineerandhas10yearsofexperienceintheengineeringfield.Priorto2013,hewastheAssistantProjectManagerprovidingsupervisiontoallcommercialprojects.Amongthenotableprojectswhichhewasinvolvedin were Lot 171 KLCC, Calvary Church and Cheras Hospital.
In2013,hewaspromotedtoProjectManagerandassignedtohandletheMRTprojectwhichistargetedtocompletein2017.Hecurrentlyplaysakeyroleinthedesign,planning,installation,testingandcommissioningoftheproject.
Hehasnofamilyrelationshipwithanyofthedirectorsand/ormajorshareholdersoftheCompanyanditssubsidiaries.HedoesnothaveanyconflictofinterestwiththeCompanyandhasnotbeenconvictedforanyoffenseinthepast5years.
Metronic Global berhad (632068-V)
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CHAIRMAN’S stateMent
Dear Shareholders,On behalf of the Board of Directors of Metronic Global Berhad (“MGB” or “the Company”), it is my pleasure to present the Annual Report and Audited Financial Statements for the financial year ended 31 December 2016.
operatinG enVironMent oVerVieW
Despite a slower Malaysia GDP growth of 4.2% in 2016 compared to growth rate of 5.0% during 2015, the Group recorded higher revenue and profit margins as detailed in our Review of Financial Results And Financial Condition under thesectionofManagementDiscussionAndAnalysis.Throughproperplanningandexecutionofourprojectsunderthe Engineering Division during the year, the Group had achieved satisfactory results consistently over the preceding 4 quarters,provingonceagainourcommitmenttodeliverpositiveresults.However,duetoothernon-coreoperationalfactors resulted from historical ventures and investments which the Group has now swiftly dealt with, have caused us higherimpairmentsandlossessufferedinthe4thquarteroftheyear.Thecleanupexerciseisnowcompleteandweare cautiously optimistic on steadily regaining our market leadership in the engineering and technology market in the financial years ending 2017 and ahead.
As for our property development sector, we are nearing the completion of our first phase of 16 units of the entire 42 unitsof3-storeyshoplots.Theperformanceofthissectorshouldbereflectedinthefinancialyearending2017astheGrouphadadoptedtheMFRSstandardswhichrecognizesrevenueuponcompletion.Theslowdowninthepropertymarket had also adversely affected the progress and performance of this sector.
corporate deVelopMents
Thecorporatedevelopmentsthattookplaceduringthefinancialyearanduptothedateofthisreportareasfollow:
(i) ThecurrentongoingMRTLine1projectknownas“ProjectMassRapidTransitSungaiBuloh–KajangLine”withacontractsumofRM42.9millionhasachieveditstargetedmilestonesin2016andisexpectedtobecompletedin2017.Asatthedateofthisreport,theGrouphasbeenabletomeetallthescheduledtimelinesprovidedbasedonitsvastexperience,technicalresources,financialstrengthandexpertiseinhandlingtheproject.
TheGrouphasalsobeenpreparingtotenderfortheMRTLine2projectstretchingfromSungaiBuloh–Serdang–Putrajayawhichisscheduledtoopeninthe2ndquarterof2017,leveragingonourcompetitiveedgeandcorestrengthstosecureanothermaideninfrastructureproject.
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CHAIRMAN’S STATEMENT(CONT’d)
(ii) Onsolarpowerdevelopment,theGrouphasreceivedconditionalletterofapprovalthroughitssubsidiary,BonanzaPartnersSdnBhd(“BPSB”)fromUnitPerancangEkonomiNegeriKelantantoallocatethelandareameasuring231acreslocatedatBandarBaruTokBali,Kelantanforthesolarphotovoltaicplantprojectconstructioninthecapacityof50MWwhichisextendableto250MW.Withthat,theGroupenteredintoaMemorandumofUnderstanding(“MOU”)withalocalpartnertoidentifyasuitabletechnicalpartnerandturnkeycontractorandtoconductfeasibilitystudiesontheviabilityoftheproject.
appreciation and acKnoWledGeMent
IwouldliketoextendmysincereappreciationtoallmyfellowDirectorsfortheirvaluablecontribution.
OnbehalfoftheBoard,Iwouldalsoliketothankourshareholders,customers,suppliers,businessassociates,bankersandotherstakeholdersfortheircontinuedsupport.Theappreciationalsogoestoouremployeesfortheircontinueddedicationandcommitment.Welookforwardtobetterperformancein2017andahead.
on behalf of the board
patrick chin hau YuiChairman
Metronic Global berhad (632068-V)
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MANAGEMENT DISCUSSION ANd ANALYSIS
oVerVieW oF the Group’s business and operations
MetronicGlobalBerhad (“MGBor theGroup”) through itswhollyownedsubsidiary,MetronicEngineeringSdnBhd(“MESB”), isatotalsolutionprovidercompanyhavingbeenintheindustrysince1984andconsideredtobeoneofthelocalpioneersintheengineeringbusiness.Wespecializeindesign,supply,install,testingandcommissioning,andservice and maintenance of Intelligent Building Management System (IBMS), Building Management System (BMS), EnergyManagementSystem(EMS),SecuritySystem(CardAccess,CCTVSystem,GuardTourandCarParkingSystem),InformationandCommunicationTechnologySystem(ICT),ExtraLowVoltageSystem,SmartHomeSystem,HomeAlarmandIntercomSystem.OurbusinessoperationsareprimarilylocatedinMalaysiawithofficesinShahAlam,northand south of Peninsular Malaysia and East Malaysia.
Ourtop3customersareMassRapidTransitCorporationSdnBhd,SamsungC&T(KL)SdnBhdandWCTConstructionSdnBhd,whereweundertakeprojectsinBuildingManagementSystem,ExtraLowVoltageSystem,BuildingAutomationSystem and Building Control System.
Our top 3 suppliers are Schneider Electric Industries (M) Sdn Bhd, Electplus Industry Sdn Bhd and United U-Li (M) Sdn Bhd.
MESBusedtobethemarketleaderinBuildingManagementSystembefore2012,andcaptureabout80%ofthemarketsharethen.During2012to2013,therewasmajorchangesinBoardcompositionwhichresultedindiversificationofbusinessventures.Thiswasfollowedbyshiftofbusinessdirectionsintopropertydevelopment,fertilizeranddistributionofhealthcareequipment.Asaresultoftheshiftofdirection,majorityoftheseniormanagementstaffresigned.
Withtherecruitmentofnewmanagementandfinancialprofessionalsin2015,webeganourrecoveryprocessinprojectdeliveryforallcommercialprojectandMRT.BacklogforMRTofRM13millionwhichwas9monthsbehindschedulewasexecutedandrecoveredwithin6months.Thereceivablesin2014ofRM65.8millionwerereducedsubstantiallyto RM27.4 million in 2015 and to RM18.2 million in 2016 which shows management’s increased effort in recovering outstandingdebts.Thenewmanagementisalsofocusedonprojectdeliveryandcleaningupofunprofitableinvestmentactivities and operations.
TheGroupalsofaceddifficultytoperformduetosubstantialfinancialsupportprovidedtoourpropertydevelopmentsundertakenbysubsidiarycompanyMOneCountryDevelopmentSdnBhdinrelationtotheKualaKraidevelopmentprojectandCheraslandsacquisitionwhichareentirelycashfundedinternally.
Asaresultoftheabovefactors,cameanotherchallenge,whichistoretainskilledmanagementpersonnelandengineers,as we are skilled intensive industry. Continuous effort and measures are undertaken to maintain our talent pool in anticipationofsecuringmajorprojectsahead.
OtherchallengessuchasGSTimplementationrequiresprudentcashflowmanagementwhilecurrencydepreciationincreased the overall cost of material and operations.
reVieW oF Financial results and Financial condition
TheGrouprevenueincreasedfromRM36.3millionin2015toRM48.1millionin2016,beinganincreaseof32.5%.Theincreaseismainlycontributedbyover60projectssuccessfullyclosedandcompletedduringthecurrentfinancialyearwithrevenuerecognitionofRM10.3million.Increaseinstaffproductivityandorganizationalefficiencyplusgoodsupplychainmanagementwerealsocontributingfactorstowardstheincreaseinoverallgrossprofitmarginfrom38%inthepreviousyearto44%inthecurrentyear.Inthesamemanner,substantialcleanuptothebookswasdoneforaleanerandmoreefficientmanagementofprojects.
ItwasatthebeginningofthecurrentfinancialyearthattheGrouplaunchedanincentivedrivenperformanceschemetoachieveitsdesiredbudgetedresultstyinginperformancewithrewardswhichsawtheaboveactualresultsmaterializefor the year.
annual report 2016
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MANAGEMENT dISCUSSION ANd ANALYSIS(CONT’d)
TheGroupsufferedalossbeforetaxofRM0.9millioninthecurrentfinancialyearcomparedtoaprofitbeforetaxofRM3.5millioninthepreviousyear.InfacttheGroupwasalreadyenjoyingacumulativeprofitbeforetaxof9monthsending30September2016ofRM6.3millionwhenitsfourthquarterresultdippedbyRM7.2millionduemainlytonon-operationalfactors,whichotherwisewouldhavereflectedarelativelysteadygrowthinrevenueandprofitsduringthecurrentyear.
reVieW oF operatinG actiVities
Technologyproductsandsolutionsarethedrivingfactorsbehindtheperformanceofourcorebusiness.Thereforetheneed to upgrade our technical skill and maintain a competent team to stay competitive and provide innovative solutions remainscrucialtoourbusiness.
TheGroupalsoneed to invest inhumancapitaldevelopmentwhile retaining technicalkeystaff.The researchanddevelopment team is also important to provide development of new products and solutions to interface with more devicesandinternetofthings(IOT).
Thesuccessofthisbusinessdependsontheabovefactors.
anticipated or KnoWn risKs
TheGroupiscurrentlyexposedtothefollowingrisks:
1) Currencyriskfluctuation.2) Reducingconstructionandinfrastructureprojectsduetoeconomicenvironment.3) Exodusofkeypersonneltobecomecompetitor.4) Lowersuccessrateinsecuringtenderduetoobsoletetechnologyandincreaseintendercostpluscompetitive
pricing among competitors as well as delivery and performance.
Planstomitigaterisks:
1) SettingupaResearchandDevelopmentcentertocreatebetterBMSsolutionandreduceproductcost.Thecenter will also play a pivotal role in creating more functions and interfacing with more devices and internet of things(IOT).
2) Provide training, certification and incentive for more competent and skilled team as well as charting a career path for employees.
3) Attracttalentedstaffbychangingworkingenvironmenttoamoreconduciveandcorporateimage,andadoptinglatest technology to improve efficiency and productivity of staff.
ForWard-looKinG stateMent
ThemarketsizeinBMSbusinessisincreasingduetohighimpactopentenderrailinfrastructureprojectssuchasMRTLine2andLRT3,andalsohighprofileconstructionprojectsuchasLotKwhichwearetargetingforBMSandELVproject.OutofthetotalavailabletendersinthemarketworthapproximatelyRM700million,wehavealreadysubmittedtendersforRM210millionwhiletheremainingbalanceisawaitingforthetenderprocess.
Basedonour new initiative tomitigate the risks,withour combinedexperience, financial resourcesand technicalstrength, we are optimistic once again to secure more contracts and regain our market share and leadership position in this engineering and technology solutions provider industry.
We are continuously exploring and assessing opportunities and growth prospects to increase shareholder value.
Metronic Global berhad (632068-V)
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STATEMENT ON CORPORATE GOVERNANCE
TheBoardofDirectors(“Board”)ofMetronicGlobalBerhad(“MGB”or“thecompany”)iscommittedtoensurethatthehigheststandardsofcorporategovernanceareobservedandpracticedconsistentlythroughouttheGroup.TheBoardviewsthisasafundamentalpartofdischargingitsresponsibilitytoprotectandenhanceshareholders’valueandthefinancial performance of the Group.
TheBoardisaccountabletoMGB’smembersforthecorporategovernanceandperformanceofMGB’sGroupandcommittedtoachievethehigheststandardsofbusinessintegrity,ethicsandprofessionalismacrosstheGroup’sactivities.TheBoardisadoptingtheprinciplesandbestpracticesoftheMalaysiaCodeonCorporateGovernance2012(“MCCG2012”)andListingRequirementsofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”).
principle 1 –establishMent oF clear roles & responsibilities
1.1 clear Functions of the board and Management TheGroupisledbyanexperiencedBoardandmaintainsfullandeffectivecontrolovertheGroup’sactivities.It
guidestheshortandlongtermgoals,settingobjectivesanddirections,reviewingandadoptingstrategicplans,overseeingtheconductofthebusinessandmanagingtheGroup.
AllBoardmembersparticipatefullyindecisionsonkeyissuesinvolvingtheGroupwhichincludeinteralia,approvalofmajorinvestments,divestments,capitalexpenditures,financialmatters,relatedpartytransactions,financialandoperatingresultsandperformanceoftheGroupandinestablishingkeypoliciesandprocedures.
1.2 board duties and responsibilities
TheBoardisresponsibleandaccountabletoretainfullandeffectivecontrolovertheperformanceandaffairsoftheGroup.AllmembersoftheBoardareexpectedtoshowgoodstewardshipandactinprofessionalmanner.
TheprincipalresponsibilitiesoftheBoardincludethefollowing;
• Reviewandadopting thegroupcorporate strategy, plan anddirections for theCompany including itssubsidiaries
• Reviewingtherelevance,appropriatenessandintegrityoftheinternalcontrolsystemoftheGroup
• Promotingeffectivecommunicationbetweenshareholders,theCompanyandrelevantstakeholders.
• ContinuousreviewingthesoundnessandadequacyofGroup’sfinancialsystem,managementinformationsystem and internal control system
• MonitoringtheconductofGroup’sbusinessandensurestrictlycompliancetobestpracticesandprinciplesof corporate governance.
• FormulatingGroup’sannualbusinessplansandthemedium-termandlong-termstrategyplans.
• Constructivelychallengingandcontributingtothedevelopmentofthebusinessstrategiesanddirectionofthe Company
• Ensuringthatthecultureofaccountability,transparency,integrity,professionalismandresponsibleconductisconsistentlyadheredtobytheCompany
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STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
principle 1 –establishMent oF clear roles & responsibilities (cont’d)
1.3 Formalized ethical standards through code of ethics
TheGrouphasformalizedethicalstandardsthroughaCodeofConductasaframeworkwhichisapplicabletoallemployeesandDirectorsoftheGroup.Theframeworkprovidesworkenvironmentwherehonesty,integrity,mutualrespect,fairnessandaccountabilityprevail.
1.4 strategies promoting sustainability
TheBoardensuresthattheGroup’sstrategiespromotesustainability.TheGrouppracticesasystemofrewardsbasedinthephilosophyofpayforperformance.EmployeesarerewardedbasedonproductivityandcontributiontowardsachievementoftheGroup’simmediateandlongtermobjectives.
1.5 access to information and advice
AllDirectorshaveunrestrictedaccesstotheadviceandservicesoftheCompanySecretarytoenablethemtodischargetheirdutieseffectively.TheCompanySecretary,whoisqualified,experiencedandcompetent,advisestheBoardonanyupdatesrelatingtonewstatutoryandregulatoryrequirementspertainingto thedutiesandresponsibilitiesofDirectorsandtheirimpactandimplicationtotheCompanyandDirectorsincarryingouttheirfiduciarydutiesandresponsibilities.
1.6 company secretary
TheCompanySecretaryorganizeandattendsallBoardCommitteesmeetingsandensuresmeetingsareproperlyconvenedandaccurate.TheCompanySecretaryplaysanadvisoryroletotheBoardinrelationtotheCompany’sconstitution,Board’spoliciesandproceduresandcompliancewiththeregulatoryrequirements,codesorguidance.
1.7 board charter
TheBoardhadapprovedandformalizedon21stApril2014aBoardChartersettingouttheduties,responsibilitiesand functions of the Board in accordance with the principles of good corporate governance set out in MCCG 2012.TheBoardCharterisavailableontheCompanycorporatewebsiteatwww.metronic-group.com.
principle 2 –strenGthen coMposition oF the board
TheBoardcurrentlycomprises4members,ofwhomtwo(2)membersoftheBoardareIndependentNon-ExecutiveDirectors.ThisisincompliancewithParagraph15.02oftheListingRequirementsofBursaSecuritieswhichrequiresatleasttwo(2)directorsor1/3oftheBoardofDirectors,whicheverishigher,tobeindependent.
TheBoard comprises professionals and entrepreneurs drawn from varied backgrounds bringing in considerableknowledgeable,skillsandexpertisetotheGroup.TheBoardisassuredofabalancedandindependentviewatallBoarddeliberationsduetothepresenceofitsIndependentNon-ExecutiveDirectorswhoareindependentofthemanagementandsubstantialshareholdersoftheCompanyandarefreefromanydealingsorrelationshipswhichcouldinterferewiththeexerciseoftheirindependentjudgment.
Metronic Global berhad (632068-V)
20
principle 2 –strenGthen coMposition oF the board (cont’d)
2.1 nomination committee (cont’d)
TheNominationCommitteewasestablishedon11June2004withtheprimaryresponsibilityofensuringthattheBoardhasappropriatebalanceandsizeandtherequiredmixofskills,experienceandothercompetenciesandfor recommending the appointment of new directors to the Board.
TheCommitteecomprisedofIndependentNon-ExecutiveDirectors.Themembersareasfollow;
committee Members designation
patrick chin hau Yui Chairman(Appointed on 4 November 2016 ) Independent Non-Executive Chairman
Khor ben Jin Member(Appointed on 4 November 2016) Independent Non-Executive Director
ng Wee peng Chairman(Ceased on 1 November 2016) Independent Non-Executive Chairman
datuk tan choon hwa, Jp, JMK Member(Ceased on 3 November 2016) Independent Non-Executive Director
chin Yoon siong Member(Ceased on 31 March 2017) Independent Non-Executive Director
ThefollowingarethetermsofreferenceoftheNominationCommittee;
• TooverseeandevaluatetheoverallcompositionoftheBoardintermsofappropriatesize,requiredmixofskills,experienceandcorecompetenciesandadequacyofbalancebetweenExecutiveDirectors,NonExecutiveDirectorsandindependentDirectorsbyperformingannualreview.
• ToensurethatallDirectorsreceiveenoughandappropriatetrainingprogramsinordertokeepabreastwithchangesinnewstatutoryandregulatoryrequirements.
• Toevaluate,accessandrecommendtotheBoard,thetermsofreferenceofBoardCommitteesandreviewtheadequacyofthecommitteestructureoftheBoard’sCommittee.
• Tooverseethesuccessionplanning,appointment/reappointmentandperformanceevaluationofthekeymanagement staff.
• Toevaluateaperson’sabilitytodischargehis/herresponsibilities/functionsasexpected
• ToensuretheBoardhasbeenabletodischargeitsdutiesprofessionallyandeffectivelyinconsiderationofthescaleandbreadthoftheCompany’soperations
• ToensurealltheDirectorscontinuetoupholdthehighestgovernancestandardsintheirconduct.
TheNominationCommitteedevelops,maintainandreviewthecriteriatobeusedintherecruitmentprocessandannualassessmentofdirector.Inassessingthesuitabilityofthecandidates,considerationisgiventocompetencies,commitment,contributionandperformance.
STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
annual report 2016
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principle 2 –strenGthen coMposition oF the board (cont’d)
2.2 recruitment process and annual assessment
TheBoarddelegatedtotheNCtheresponsibilityofrecommendingtheappointmentofanynewDirectors.TheNCalsoannuallyreviewstheeffectivenessoftheBoard,itsCommitteesandthecontributionofeachindividualDirector,includingtherequiredmixofskillsandcorecompetenciesnecessaryfortheBoardtodischargeitsdutieseffectively.
TheresponsibilitiesoftheNCinclude:-
• Formulatingthenomination,selectionandsuccessionpoliciesformembersoftheBoard
• MakingrecommendationstotheBoardonnewcandidatesforappointmentandthere-appointment/re-election of Directors to the Board
• Reviewingtherequiredmixofskills,experienceandotherqualitiesoftheBoardannually
• ReviewingandrecommendingtotheBoardtheappointmentofmembersofBoardCommitteesestablishedbytheBoardannually
• EstablishingasetofperformancecriteriatoevaluatetheperformanceofeachmemberoftheBoard,andreviewingtheperformanceofthemembersoftheBoard
• EnsuringthatrelevanteducationprogrammesareprovidedfornewmembersoftheBoard,andreviewingthe Directors’ continuing education programmes
2.3 remuneration policies
TheRemunerationCommitteewas established on 11June 2004with the responsibility of reviewing andrecommendingtotheBoardtheremunerationpackageofExecutiveDirectorsoftheGroup.Themainobjectiveis to ensure the level of remuneration is attractive enough to attract and retain the Executive Directors to run the Groupsuccessfully,subjecttocorporateandindividualperformance.FeesforIndependentDirectorswouldbedeterminedbythefullBoardwiththeapprovalfromshareholdersattheAnnualGeneralMeeting.
PresentlythecommitteecomprisesofthefollowingIndependentNon-ExecutiveDirectors:
committee Members designation
patrick chin hau Yui Member(Appointed on 4 November 2016) Independent Non-Executive Chairman
Khor ben Jin Member(Appointed on 4 November 2016) Independent Non-Executive Director
datuk tan choon hwa, Jp, JMK Chairman(Ceased on 3 November 2016) Independent Non-Executive Director
ng Wee peng Member(Ceased on 1 November 2016 ) Independent Non-Executive Chairman
chin Yoon siong Member(Ceased on 31 March 2017) Independent Non-Executive Director
STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
Metronic Global berhad (632068-V)
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principle 2 –strenGthen coMposition oF the board (cont’d)
2.3 remuneration policies (cont’d)
ThesizeandcompositionoftheboardareadequateandsuitablefortheCompanytoprovideappropriatebalanceofexecutive, independentandnon-independentDirectors.TheDirectorscomefromdiversebackgroundwithexpertise and skills in Engineering, accounting, information technology, industry, audit, tax and legal.
TheGroupHumanResourceandAdministrationprovidescomparativeremunerationmarketsurveyinformationtothecommitteeandthecommitteemakesrecommendationtotheBoard.TheBoardasawholedeterminestheirremuneration.Nodirectorisallowedtobepresentinthediscussionandvoteonhisorherownremuneration.
TheaggregateremunerationoftheDirectorsforthefinancialyearunderreview,distinguishingbetweenExecutiveandNon-ExecutiveDirectorsissetoutbelow; executive non-executiveringgit Malaysia director director total
Fees* – 107,000 107,000Salariesandotheremoluments 146,429 – 146,429
Total 146,429 107,000 253,429
* Directorsfeesforthefinancialyearissubjecttoshareholders’approvalattheforthcomingAnnualGeneralMeeting.
ThenumberofDirectorsoftheCompany,whoseremunerationbandsfallwithinthefollowingsuccessivebandsofRM50,000,isasfollow:
executive non-executive directors directors
BelowRM50,000 – 6RM50,000-RM100,000 – –RM100,001-RM150,000 1 –RM150,001-RM200,000 - –RM200,001-RM250,000 – –RM250,001-RM300,000 – –RM300,001-350,000 – –
STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
annual report 2016
23
STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
principle 3 –reinForce independence
3.1 assessment of independence annually TheBoardundertakesanassessmentofitsIndependentDirectorsannually.TheBoardisincompliancewithMCCG
2012 that the tenure of Independent Directors do not exceed accumulative term of nine years. Upon completion ofnineyears,anindependentmaycontinuetoserveontheBoardsubjecttothedirector’sre-designationsasNon-IndependentDirector.Theboardmustjustifyandseekshareholders’approvalintheeventitretainsasanIndependent Director, a person who has served in that capacity for more than nine years.
InaccordancewiththeCompany’sArticlesofAssociation(“Articles”),allDirectorsaresubjecttore-electionbyshareholdersatthenextAnnualGeneralMeetingfollowingtheirappointmentbytheBoard.
TheArticlesalsoprovidethatallDirectorsshallretirebyrotationsothateachshallretirefromofficeatleastoncein every three (3) years.
Directorswhoareoforovertheageofseventyyearsarerequiredtosubmitthemselvesforre-appointmentannuallyin accordance to Section 129 (6) of the Companies Act 1965
3.2 tenure of independent directors
TheBoardhasadoptedtherecommendationofMCCG2012thatthetenureofanindependentdirectorshouldnot exceed a cumulative term of nine (9) years. Upon the completion of the nine (9) years, an independent director maycontinuetoserveontheBoardsubjecttothedirector’sre-designationasnon-independentdirectorortoobtainshareholders’approvalintheeventitretainsasanindependent.
3.3 shareholders’ approval for the re-appointment of independent director
Fortheyearunderreview,noneofthecurrentindependentboardmembershadservedtheCompanyformorethan nine (9) years cumulatively.
3.4 separate positions of the chairman and Management
ThereiscleardivisionofresponsibilitybetweentheNon-ExecutiveChairmanandtheExecutiveDirectortoensurethereisabalanceofpowerandauthority.TheBoardiscurrentlyledbyaNon-ExecutiveChairmanwhoisprimarilyresponsiblefortheorderlyconductandworkingoftheBoard.TheExecutiveDirectorandChiefExecutiveOfficerareprimarily responsible for implementingthepoliciesanddecisionsof theBoard,overseeingandmanagingthedaytodayoperationsandmanagingthedevelopmentandimplementationoftheCompany’sbusinessandcorporatestrategies.There isnocombinationoroverlappingof rolesbetweenthecurrentChairmanandtheExecutiveDirectoroftheCompanysincethesetwopositionsareheldbyseparateindividuals.
TheBoardcomprisesofamajorityof independentdirectorstoensurebalanceofpowerandauthoritytotheBoard.
TheBoardhasnotestablishedanygenderdiversitypolicy.However,theBoarddorecognizetheimportanceofgender diversity in the Board and will continue to review this to enhance corporate governance practices.
Metronic Global berhad (632068-V)
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principle 3 –reinForce independence (cont’d)
3.5 composition of the board
TheBoardasatthedateofthisstatementcomprisesfive(5)members:-
a) One (1) Independent Non-Executive Chairmanb) One(1)ExecutiveDirectorc) Three(3)IndependentNon-ExecutiveDirectors
TheNon-ExecutiveDirectorsareIndependentasdefinedintheBursaSecuritiesMMLR.TheIndependentDirectorsare:-
a) Patrick Chin Hau Yui (Appointed on 3 November 2016)b) KhorBenJin(Appointed on 3 November 2016)c) Ng Wee Peng (Resigned on 1 November 2016 )d) DatukTanChoonHwa,JP,JMK(Resigned on 3 November 2016)e) Choh Kim Peng (Resigned on 15 September 2016)f) Chin Yoon Siong (Resigned on 31 March 2017)
TheBoardisoftheviewthatthecurrentsizeoftheBoardisappropriateandviewsthattheBoardcompositionhastherightmixofskills,experienceandstrengthinqualitiesthatrelevanttothebusinesswhichenabletheBoardtocarryoutitsresponsibilitiesinaneffectiveandcompetentmanner.
principle 4 - Foster coMMitMent
4.1 commitment of the board Members
TheDirectorsarecommittedtodevotesufficienttimetocarryouttheirresponsibilities.DirectorsshouldnotifytheChairmanbeforeacceptinganydirectorship.Thenotificationshouldincludeanindicationoftimetheywillspendon the new appointment.
TheIndependentNon-ExecutiveDirectorsarerequiredtodeclaretotheBoarddetailsoftheirsignificantbusinessandinterestofwhichthesaidDirectorwouldberequiretoabstainfromdecisionvotingshouldthesubjectresolutioninvolveanychancesofconflictofinterestwithhisexistingbusinessandinterest,directorindirectly.
TheExecutiveDirectorsarehoweverrequiredtodeclaretotheBoardofallthesignificantbusinessandinterestsandtoindicatebroadlythetimespendonsuchcommitment,otherthanthetimespendontheCompany.
AlltheDirectorsarerequiredtoadvisetheBoardofanysubsequentchangesofsuchcommitmentdeclared.
Boardmeetingsarescheduledatquarterlyintervalswithadditionalmeetingsconvenedasandwhennecessary.Ateachquarterlymeeting,theBoarddeliberatedandapprovedtheGroup’sbusinessplan,includingfinancialperformance to date.
STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
annual report 2016
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STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
principle 4 - Foster coMMitMent (cont’d)
4.1 commitment of the board Members (cont’d)
Duringtheyearunderreview,5boardmeetingswereheldandthedetailsoftheattendanceofeachDirectorareasfollow;
no ofname of directors meeting attended %
patrick chin hau Yui 1/1 100Independent Non-Executive Chairman(Appointed on 3 November 2016)
Khor ben Jin 1/1 100Independent Non-Executive Director (Appointed on 3 November 2016)
tan Kian hong 4/5 80Executive Director
ng Wee peng 4/4 100Non-Executive Chairman(Resigned on 1 November 2016)
chin Yoon siong 4/5 80Independent Non-Executive Director(Resigned on 31 March 2017)
datuk tan choon hwa, Jp, JMK 3/4 75Independent Non-Executive Director(Resigned on 3 November 2016)
choh Kim peng 4/4 100Independent Non-Executive Director (Resigned on 15 September 2016)
TheBoardisprovidedwithagendatogetherwithasetofBoardpaperpriortotheBoardmeetings.TheBoardpapersincludeminutesofpreviousmeeting,quarterlyfinancialresults,andprogressreportsofGroupBusinesses,strategiesproposals,regulatoryandauditreports fortheBoard’sreviewandapproval.ThesedocumentsareissuedinadvancetoenabletheBoardtoseekclarificationfromthemanagementtoenableeffectivedischargeitsduties.SeniormanagementandadvisorsareinvitedtoattendboardmeetingswherenecessarytoprovideadditionalinformationandinsightsontherelevantagendaitemstabledattheBoardmeetings.
4.2 training
TheBoardbelievesthattheDirectorsshouldcontinuetoattendthetrainingfromtimetotimeandaccordinglyshall and has provided and encouraged them to attend seminars, workshops, conferences and other training programstokeepabreastwithnewdevelopmentsincorporatematteraswellasindustrypracticesforthemtodischargetheirdutiesandresponsibilitiesmoreeffectively.
All the Directors have attended the Mandatory Accrediation Programme (MAP). During the financial year ended 31December2016,theDirectorshaveattendedrelevantcoursesandtrainingprogrammestoenhancetheirknowledgetoeffectivelydischargetheirdutiesandobligations.
Metronic Global berhad (632068-V)
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principle 4 - Foster coMMitMent (cont’d)
4.2 training (cont’d)
ThecoursesandtrainingprogrammesattendedbytheDirectorsin2016areasfollows:
name of director courses/ training programmes attended
NgWeePeng CorporateGovernanceandEthics:Strengthening ProfessionalismThroughEthics
Choh Kim Peng Mandatory Accreditation Program
Chin Yoon Siong Strategic Management, Marketing, E-commerce, Synergy of Resources for Better Results
principle 5 – uphold inteGritY in Financial reportinG
5.1 compliance and applicable Financial reporting standards
TheAuditCommitteewasestablishedon8April2004toreviewandmonitortheGroup’sfinancialresultsandsystem of internal controls. During the year under review, the Committee comprised the following Independent Non-Executive Directors.
TheattendancesofMembersattheAuditCommitteeheldin2016arereflectedasfollows;
no ofcommittee Members meeting attended %
Khor ben Jin(Chairman) 1/1 100Independent Non-Executive Director (Appointed on 4 November 2016)
patrick chin hau Yui(Member) 1/1 100Independent Non-Executive Chairman (Appointed on 4 November 2016)
choh Kim peng(Member) 4/4 100Independent Non-Executive Director (Ceased on 15 September 2016)
ng Wee peng(Member) 4/4 100Independent Non-Executive Chairman (Ceased on 1 November 2016)
chin Yoon siong(Member) 4/5 80Independent Non-Executive Director (Ceased on 31 March 2017)
datuk tan choon hwa, Jp, JMK(Member) 3/4 75Independent Non-Executive Director (Ceased on 3 November 2016)
STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
annual report 2016
27
principle 5 – uphold inteGritY in Financial reportinG (cont’d)
5.2 assessment of sustainability and independence of auditors
AuditCommitteewillreviewandmonitorthesuitabilityandindependenceofexternalauditors.Theindependenceofexternalauditorscanbeimpairedbytheprovisionofnon-auditservicestotheGroup.Detailsofthefunctionsand activities of the Committee are set out on pages 24 to 27 of the Annual Report.
principle 6 – recoGniZe and ManaGe risKs
6.1 Framework of Managing risks
TheRiskManagementCommitteewasestablishedinyear2005bytheBoardtoundertaketheresponsibilitiesofoverseeing the formulation of an effective and efficient risk management framework and policies for the Company anditssubsidiariesofwhichthekeyelementistoensurecorrectbalanceofriskandcontrol.
TheCommittee isunder thepurviewof theBoard.TheCommitteecomprisesmembersamongst theseniormanagementandareactivelyinvolvedinthedaytodayoperationsofbusinessandhaveregulardiscussionswiththe senior management.
6.2 internal audit Function
TheBoard has engaged the services of RMSCorporateManagement SdnBhd to carry out the internalauditfunctionduringthefinancialyearended31December2016.TheinternalauditfunctionistoprovideanindependentassurancetotheBoard.TheresponsibilitiesoftheinternalauditorsaretoassisttheAuditCommitteeindischargingitsresponsibilitiestoreviewtheadequacyandtheintegrityoftheGroup’sinternalcontrolsystemandthemanagementinformationsystemsincludingsystemforcompliancewithapplicablelawandregulations.
principle 7 – ensure tiMelY and hiGh QualitY disclosure
7.1 corporate disclosure policies
TheBoardstrivestocomplywithcorporatedisclosurerequirementssetbyBursaMalaysiaSecuritiesBerhadandfollowsthemainformsofinformationdisclosure:
a. Continuousdisclosure–whichisitscoredisclosureobligationandprimarymethodofinformingthemarketand shareholders.
b. Periodicaldisclosure–intheformoffullyearandquarterlyreportingoffinancialresultsandmajorinvestments,capitalexpenditureandfundingactivitiesproposedbytheCompanyandtheAnnualReport.
c. Specific informationdisclosure–asandwhenrequired,ofadministrativeandcorporatedevelopments,usually in the form of Bursa releases.
All informationmadeavailable toBursaMalaysiaSecuritiesBerhad is immediately available to shareholders,stakeholdersandthepublicontheCompany’sInvestorRelationssectionofthewebsite:www.metronic-group.com
7.2 leverage on information technology for effective dissemination of information
TheBoardcontinuesuseofinformationtechnologytodisseminationinformationtoshareholders.AdesignatedwebsiteforinvestorrelationsisdevelopedandmaintainedbyITprofessionaltoensurethewebsitearesecureanduptodate.ThewebsitehasadedicatedsectiontoprovideinformationsuchasannouncementsmadetoBursaSecuritiesandcopiesoftheannualreport.TheCompanymaintainsacorporatewebsite(www.metronic-group.com)toallowpublicaccesstotheGroup’sinformation,businessactivitiesandlatestdevelopments,aswellastoprovidefeedback.
STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
Metronic Global berhad (632068-V)
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principle 8 – strenGthen relationship betWeen coMpanY and shareholders
8.1 shareholder participation at General Meeting
TheGroupvaluesdialoguewithinvestorsandanalystasameansofeffectivecommunicationthatenablestheBoardtoconveyinformationaboutlatestdevelopmentoftheGroup.
TheCompany’sAnnualMeetingprovidesavitalplatformforbothprivateandinstitutionalshareholderstoshareviewpointsandacquireinformationonissuerelevanttotheGroup.AttheAnnualGeneralMeeting,shareholdersareencouragedtoquestionresolutionsproposedortoseekmoreinformationontheGroup’sbusinessoperationsingeneral.TheChairmanandothermemberoftheBoardtogetherwiththeCompany’sauditorswillbeinattendancetoprovideexplanationtoallshareholders’queries.
8.2 encourage poll Voting
TheBoardencouragepollvotingtoeffectsubstantiveresolutionsandmakeannouncementofdetailedresultsshowingthenumberofvotescastforandagainsteachresolution.TheBoardalsoencouragestheuseofelectronicmeans for poll voting.
8.3 communication and engagements with shareholders
Information on the Group's activities is provided in the Annual Report and Financial Statements in hard copy, which are despatched to shareholders.
TheCompanyalsoencouragestheshareholdersandinvestorstoparticipateinonlineaccessofthecompany’sAnnualReportandalluptodateannouncementfromtimetotime,whicharemakeavailableinstantlyatbothBursaSecuritiesandthecompany’swebsiteatwww.metronic-group.com.
InvestorsandthepublicwhowishtocontacttheGrouponanyenquiry,commentorproposalcanchannelthemthroughe-mailorcontactthefollowingperson:-
Name : VincentSetHinFookContactnumber : 03-78472111E-mailAddress : [email protected]
accountabilitY and audit
a) Financial reporting
TheBoardensuredthatthefinancialstatementshavebeenpreparedinaccordancetotheapplicableapprovedaccountingstandards,therequirementsoftheCompaniesAct1965andotherregulatoryprovisions.Inpreparingthefinancialstatements, theBoardhasascertainedthat judgmentsandestimatesmadeare reasonableandprudent,andappropriateaccountingpolicieshavebeenadoptedandappliedconsistently.
TheBoardtakesduecareandresponsibilitiesforpresentingabalancedandunderstandableassessmentoftheGroup’sfinancialperformanceandprospectsinrespectofallquarterlyresults,annualfinancialstatementsandannouncementsissuedbytheCompany.TheBoardisassistedbytheAuditCommitteetoscrutinizeinformationfordisclosuretoensureitstimeliness,accuracy,adequacyandcompliancetotheappropriateaccountingstandards.
b) risk Management and internal control
TheBoardestablishesthattheinternalauditfunctionreportsdirectlytotheAuditCommittee.
TheStatementofRiskManagementandInternalControlprovidesanoverviewofthestatesofinternalcontrolwithin the Group.
STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
annual report 2016
29
STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
accountabilitY and audit (cont’d)
c) directors’ responsibilities statement for the Financial statements
ThroughtheAuditCommittee,theBoardhasestablishedatransparentandappropriaterelationshipwiththeGroup’sexternalandinternalauditorsinseekingtheirprofessionaladviceandtowardensuringcompliancewithapplicableaccountingstandardsandstatutoryrequirements.TheexternalandinternalauditorsdoreporttomembersoftheCompany on their findings which are included as part of the Company’s financial report in respect of the financial year.
TheDirectorsarerequiredbytheCompanyAct1965topreparefinancialstatementsforeachfinancialyearwhichgiveatrueandfairviewofthestateoftheCompanyandtheGroupandtheirresultsandcashflowsforthatyear.
Inpreparingthosefinancialstatements,theDirectorsarerequiredto-
a) Useappropriateaccountingpoliciesandapplythemconsistently;
b) Makejudgmentandestimatesthatarereasonableandprudent;
c) Statewhetherapplicableaccountingstandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements;and;
d) Preparethefinancialstatementsonagoingconcernbasis.
TheDirectorsareresponsibleforensuringthatproperaccountingrecordsarekept,anddisclosedwithreasonableaccuracyatanytime,thefinancialpositionoftheCompanyandGroupandtoenablethemtoensurethatthefinancial statements comply with the Companies Act, 1965.
TheDirectorsaresatisfiedthatinpreparingthefinancialstatementsoftheCompanyandGroupfortheyearended31December2016,theCompanyandGrouphaveusedtheappropriateaccountingpoliciesandappliedthemconsistently.TheDirectorsaretheopinionthatallrelevantapprovedaccountingstandardshavebeenfollowedandconfirmthatthefinancialstatementshavebeenpreparedonagoingconcernbasis.
corporate social responsibilitY
a) safety and health
TheGroupiscommittedtoprovideasafeandhealthyworkingenvironmentforemployeesintheGroupundertherequirementsofInternationalforStandardization(ISO).InternalAuditisbeingcarriedoutperiodicallytoensurecontinuousadherencetoallsafetymeasuresisbeingobserved.
b) skill development
TheGroupstrivestomotivateandretainthebestemployeesthroughcontinuoustrainingbysendingthemtoattendcoursesandseminarsrelevanttotheirjobfunctionstoimprovetheirknowledgeandskills.Duringtheyearunderreview,theGrouputilizedHumanResourcesDevelopmentFundforselectivetrainingtoenhanceemployees’technicalandsoftskills.ItistheGroupaspirationthatemployeesoftheGroupbecomerespectedandresponsiblecitizensofsocietyaswellasleadersintheirrespectivefieldsofspecializations
c) Workers’ welfare
TheGroupisamulti-racialorganization.Topromotecloserworkingrelationshipandfosterbetterunderstandingamong the multi-racial employees, the Group provided opportunities for the employees from different departments and levels to interact, integrate and develop teamwork through sport activities and company trips.
Metronic Global berhad (632068-V)
30
STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
corporate social responsibilitY (cont’d)
d) the environment
TheGrouprecognizestheimportanceofenvironmentalconservation.TheGrouphasadoptedeco-friendlypracticesinitsdaytodayworkinordertominimizetheimpactofenvironment.Forexample,wasteandconstructiondebrisweredisposedatapproveddumpsites.StaffandclientsareencouragedtofullymaximizethebenefitsofIOT(eg:emailinstantmessagingetc)forcommunication.ThegrouphasalsoimplementedrecyclingofusedpaperandpromotinggoodpracticesonenergysavingbyswitchingoffunusedequipmentsandlightingsviaIntelligentBuilding Management System.
e) dynamic and high performance Workforce
TheCompanyplacesgreatimportanceonhiringtherightcandidatefortherightjob.AstheCompanymovesforwarditwillcontinuetofocusonattractingqualitytalentwhobestfitonjobrequirementsandcomplementitsworkculture.TheCompanyfirmlybelievesthatbyaligningitsrecruitmentstrategies,theCompanywillcontinuetoattractthebesttalenttofurtherenhancetheCompany’svalueandachievements.
AtourGrouplevel,ourmaleandfemaleemployee’sratioshowsadistributionof81:19asat31December2016,ascomparedto83:17at31December2015.Ourtotalstaffstrengthstoodat150asat31December2016,ascomparedto167asat31December2015.
f) Workforce diversity
TheBoardiscommittedinrecognizingandutilizingthecontributionofdiverseskillsandtalentfromitsdirectors,officers and employees as a mean of enhancing the Group’s performance. Diversity may result from wide range offactorswhichincludeage,gender,ethnicityorculturalbackground.
TheBoard isactivelymanaging itsworkforcediversity toensureequalemploymentopportunityregardlessofgender.Itfostertheenvironmentwheretheabilitytocontributeandaccessemploymentopportunitiesisbasedonperformance,skillsandmerits.Thesewillincludeequalopportunityinrespecttoemploymentandemploymentcondition such as hiring, training for professional development and promotion for career advancement.
As at the reporting date, the Board has not set a gender diversity target, however, it is moving towards a more genderequalityofemployees.ItwillfocusongettingtheparticipationofwomenandthoseofdifferentethnicityonitsBoardandwithinseniormanagementandthepersonselectedmustbeabletocontributepositivelytothedevelopment of the Group.
annual report 2016
31
STATEMENT ON CORPORATE GOVERNANCE(CONT’d)
other inForMation
audit and non-audit Fees
Forthefinancialyearended31December2016,auditandnon-auditfeespaidtotheexternalauditorswereRM129,743and RM8,000 respectively.
Material contracts
TherewerenomaterialcontractsinvolvingtheinterestoftheDirectorsandmajorshareholdersoftheCompanyduringthe financial year.
contract relating to loans
TherewerenocontractsrelatingtoloansbytheCompanyanditssubsidiariesinrespectoftheprecedingitem.
stateMent on coMpliance With the reQuireMents oF bursa MalaYsia in relation to application oF principles and adoption oF best practises laid doWn in the MalaYsian code oF corporate GoVernance
TheBoard ispleasedtoreport to itsshareholdersthat theGrouphassubstantiallycompliedwithandshall remaincommittedtoattainingthehighestpossiblestandardsthroughthecontinuedadoptionofthebestpractisesasstipulatedinthePrinciplesandRecommendationsoftheMCCG2012andallotherapplicablelaws.
ThisstatementwasmadeandapprovedbytheBoardon12April2017.
Metronic Global berhad (632068-V)
32
AUDIT COMMITTEE REPORT
TheAuditCommitteeofMetronicGlobalBerhad(“MGB”or“theCompany”)wasestablishedbyaresolutionoftheBoardofDirectors(“theBoard”)on8April2004.TheCommittee,operatingwithinaspecifictermsofreferencewasestablishedtoassisttheBoardoftheCompanyindischargingtheirdutiesandresponsibilities.
TheAuditCommitteemeetsregularlywiththeseniormanagementandtheinternalandexternalauditorstoreviewtheGroup’s operations, financial reports and the system of internal controls and compliance.
a. MeMbers
TheMembersoftheAuditCommitteeduringthefinancialyearended31December2016uptopresentareasfollows:-
committee Members designation
Khor ben Jin Chairman(Appointed on 4 November 2016) Independent Non-Executive Director
patrick chin hau Yui Member(Appointed on 4 November 2016) Independent Non-Executive Chairman
choh Kim peng Chairman(Ceased on 15 September 2016) Independent Non-Executive Director
ng Wee peng Member(Ceased on 1 November 2016 ) Independent Non-Executive Chairman
datuk tan choon hwa, Jp, JMK Member(Ceased on 3 November 2016) Independent Non-Executive Director
chin Yoon siong Member(Ceased on 31 March 2017) Independent Non-Executive Director
b. terMs oF reFerence
TheAuditCommitteeisgovernedbythefollowingtermsofreference:
1) composition
TheAuditCommitteeshallbeappointedbytheBoardfromamongsttheirmembersandshallcompriseat least three directors, all ofwhommust be non-executive directors,with amajority of thembeingindependentdirectors.TheChairmanwhoshallbeelectedfromamongstmembersofCommittee,shallbeanindependentNon-ExecutiveDirector.TheBoardshallatalltimesensurethattheAuditCommitteeshouldbefinancialliterateandatleastonememberoftheCommitteemustbeamemberoftheMalaysianInstituteofAccountants(“MIA”).IfheisnotamemberofMIA,hemustfulfillsuchotherrequirementsasprescribedbyBursaMalaysiaSecuritiesBerhad(“BursaSecurities”).
NoalternativedirectormaybeappointedasamemberoftheCommittee.
IntheeventofanyvacancyintheCommitteeresultinginthenumberbeingreducedtobelowthree,theBoard shall within three months of that event fill the vacancy.
TheBoardwillreviewthetermsoftheofficeandtheperformanceoftheCommitteeanditsmembersatleast once every 3 years.
annual report 2016
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AUdIT COMMITTEE REPORT(CONT’d)
b. terMs oF reFerence (cont’d)
2) objective
Theprimaryobjectiveof theCommittee is toassist theBoard in theeffectivedischargeof itsfiduciaryresponsibilitiesinthefollowingaspects:
i) ReviewtheadequacyandintegrityoftheGroup’sinternalcontrolsystems,managementinformationsystem including systemof compliancewith applicable laws, regulations, rules, directives andguidelines.
ii) Ensure that the risk management framework to manage material risk is in place and adhered to.iii) Oversee financial reporting and evaluate the internal and external audit processes.
3) authority
TheCommitteeisauthorizedtoinvestigateanymatterwithinitstermsofreferencewithfullandunrestrictedaccesstobothinternalandexternalauditorsandalltheGroup’srecords,propertiesandpersonnel.
TheCommitteeisauthorizedandshallbeentitledtoobtainexternallegalandotherindependentprofessionaladvice to assist in executing its duties.
4) Meeting
TheCommitteeshallmeetatleastfour(4)timesayeartocoincidewiththereviewofthequarterlyandannualfinancialstatementspriortopresentationtotheBoardforapproval.Additionalmeetingsmaybecalled as and when necessary at the discretion of the Chairman of the Committee.
Inordertoformaquorum,themajorityofmemberspresentmustbeindependentnon-executivedirectors.OthermembersoftheBoardandSeniorManagement,InternalandExternalAuditorsmayattendmeetingsuponinvitationbytheCommittee.
TheCompanySecretaryistheSecretaryoftheCommitteeandshallberesponsiblefordrawinguptheagendawith theconsentof theChairman.Theagenda togetherwith the relevantdocumentsshallbecirculatedtothecommitteemembers,oneweekpriortoeach
meeting.TheCompanySecretaryshallberesponsibleforrecordingattendance,keepingminutesofmeetingsandcirculatingtocommitteemembersandmembersoftheBoard.
TheAuditCommitteemet5timesduringthefinancialyear.TheAuditCommitteemettwicewiththeexternalauditorswithoutthepresenceofmanagementduringthefinancialyearended31December2016.
Metronic Global berhad (632068-V)
34
b. terMs oF reFerence (cont’d)
5) duties and responsibilities
Infulfillingitsprimaryobjectives,theCommitteeshallundertakethefollowingdutiesandresponsibilities:
i) Review with the external auditors, the audit scope and plan, including any changes to the audit planandscope.Reviewtheadequacyoftheinternalauditscopeandplan,aswellasthefunctions,competency and resource of the internal audit function and that it has the necessary authority to carry out its work.
ii) Reviewtheindependenceandobjectivityoftheexternalauditorsandtheirservices,includingnon-auditservicesandtheprofessionalfees,soastoensureaproperbalancebetweenobjectivityandvalue for money.
iii) Reviewtheappointmentandperformanceofexternalauditors,theauditfeeandanyquestionofresignationordismissalbeforemakingrecommendationstotheBoard.
iv) Reviewthequarterlyresultsandtheyear-endfinancialstatements,priortotheapprovalbytheBoardfocusingparticularlyon:• Changesinorimplementationofmajoraccountingpolicies• Significantorunusualevents• Significantadjustmentsfromauditand• Compliancewithaccountingstandardsandotherlegalrequirements
v) Review the external and internal audit reports to ensure that appropriate and prompt remedial actions aretakenbythemanagementonmajordeficienciesincontrolsorproceduresthatareidentified.
vi) Review themajor audit findings and themanagement’s responses during the yearwith themanagement, internal and external auditors, including the status of previous audit recommendations.
vii) ReviewtheassistancegivenbytheGroup’semployeestoboththeinternalandexternalauditors,andany difficulties encountered in the course of the audit work, including any restrictions on the scope ofactivitiesoraccesstorequiredinformation.
viii) Reviewtheadequacyandintegrityofinternalcontrolsystems,includingenterpriseriskmanagementinformation system, and the internal or external auditor’s evaluation of the said systems.
ix) Directandwhereappropriatemonitoranyspecialprojectsorinvestigationconsiderednecessary,andreviewinvestigationreportsonanymajordefalcations,fraudsandthefts.
x) Discussproblemsandreservationsarisingfromtheinterimandfinalaudit,andanymattertheexternalauditorsmaywishtodiscuss(intheabsenceofmanagementwherenecessary)
xi) Review the appointment and performance of internal auditors.xii) Reviewany relatedparty transactionsandconflictof interestsituations thatmayarisewithin the
CompanyortheGroup,includinganytransaction,procedureorcourseofconductthatraisesquestionson management’s integrity.
xiii) MonitororganizationalcompliancewithstatutoryandListingRequirementsofBursaSecuritiesandotherlegislativeandreportingrequirements.
xiv) Anyotheractivities,asauthorizedbytheBoard.
AUdIT COMMITTEE REPORT(CONT’d)
annual report 2016
35
AUdIT COMMITTEE REPORT(CONT’d)
c. suMMarY oF audit coMMittee’s actiVities
Duringthefinancialyearended31December2016,theAuditCommitteeconvened5meetings.DetailsoftheattendanceoftheCommitteemembersareasfollows:
no ofcommittee Members meeting attended %
Khor ben Jin(Chairman) 1/1 100Independent Non-Executive Director (Appointed on 4 November 2016)
patrick chin hau Yui(Member) 1/1 100Independent Non-Executive Chairman (Appointed on 4 November 2016)
choh Kim peng(Member) 4/4 100Independent Non-Executive Director (Ceased on 15 September 2016)
ng Wee peng(Member) 4/4 100Independent Non-Executive Chairman (Ceased on 1 November 2016)
chin Yoon siong(Member) 4/5 80Independent Non-Executive Director (Ceased on 31 March 2017)
datuk tan choon hwa, Jp, JMK(Member) 3/4 75Independent Non-Executive Director (Ceased on 3 November 2016)
Themeetingswereappropriatelyheldandsufficientnoticeissuedtothemembers.
Inlinewiththetermsofreference,thefollowingactivitieswerecarriedoutbytheAuditCommitteeduringthefinancialyearunderreview:
i) ReviewedunauditedquarterlyfinancialresultsoftheCompanyincludingtheannouncementspertainingtheretopriortosubmissiontotheBoardfortheconsiderationandapproval.
ii) Reviewed the audited financial statements of the Group and of the Company for the financial year ended 31 December2016andissuesarisingfromtheauditedthereofpriortosubmissiontotheBoardforconsiderationand approval.
iii) Reviewedtheauditplanpresentedbytheexternalauditorspriortotheirannualreportastotheirscopeofwork and strategy.
iv) Reviewed matters arising from the statutory audit of the Group in a meeting with the External Auditors without the presence of any executive officer of the Group.
v) Reviewedtheannualauditplanpreparedbytheinternalauditorstoensureadequatescopeandcoverageon their activities.
vi) Reviewedinternalauditreportpreparedbytheinternalauditorsespeciallywithregardstoissuesraised,recommendations made and management’s response to their recommendations.
vii) Reviewedtheriskassessmentreportspreparedbytheinternalauditorsandtherecommendationsmade.
Metronic Global berhad (632068-V)
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AUdIT COMMITTEE REPORT(CONT’d)
c. suMMarY oF audit coMMittee’s actiVities (cont’d)
Inlinewiththetermsofreference,thefollowingactivitieswerecarriedoutbytheAuditCommitteeduringthefinancialyearunderreview:(Cont’d)
viii) Reviewed all related party transactions and recurrent related party transactions that arose within the Group onaquarterlybasistoensurethattheyarewithinthemandateobtained.
ix) Reviewed the performance of the internal and external auditors and made recommendations to the Board on their reappointment and remuneration.
x) Reviewed the Audit Committee’s Report, Statement on Risk Management and Internal Control and Statement of Corporate Governance and its recommendations to the Board for inclusion in the Annual Report.
d. internal audit Function
TheGroupappointedanexternalconsultingcompanytoundertaketheinternalauditfunctionduringthefinancialyearended31December2016.
Theroleandresponsibilitiesoftheinternalauditfunctionareasfollows:
i) Toundertakeindependentandregularreviewsofthesystemofinternalcontrolsandgiveassurancethatsuch system continues to operate satisfactorily and effectively.
ii) Toreviewtheriskidentificationandevaluationprocessandensurecontrolsimplementedbythemanagementare consistent with Group’s risk management policy.
TheInternalAuditorshavecarriedouttheirdutiesinaccordancewithitstermsofreferenceandtheannualauditplanwasapprovedbytheAuditCommitteeandtheBoard.
ThetotalcostincurredfortheinternalauditfunctionwasRM17,000.00forthefinancialyear2016.Theinternalaudit function is outsourced to Messrs RMS Corporate Management Sdn Bhd.
annual report 2016
37
STATEMENT ON RISK MANAGEMENT ANd INTERNAL CONTROL
the board of directors (“the board”) is pleased to provide the following statement on risk Management and internal control pursuant to paragraph 15.26(b) of the bursa Malaysia securities berhad Main Market listing requirements. the statement on risk Management and internal control below outlines the nature and scope of internal controls of Metronic Global berhad and its subsidiaries (“the Group”) during the financial year ended 31 december 2016.
1. board’s responsibility
TheBoardrecognizestheimportanceofsoundinternalcontrolsandriskmanagementpracticeforgoodcorporategovernance.TheBoardaffirmsitsoverallresponsibilityfortheGroup’ssystemofinternalcontrol(“theSystem”)which includes establishmentof an appropriate control environment and framework aswell as reviewing itsadequacyandintegrity.
Nevertheless,theBoardrecognizesthattheGroup’ssystemisdesignedtomanageratherthaneliminatetheriskoffailuretoachievetheGroup’sbusinessobjectivesinviewofthelimitationsinherentinanyinternalcontrolsystem.Accordingly,theSystemcanonlyprovidereasonablebutnotabsoluteassuranceagainstmaterialmisstatementand loss.
2. risk Management Framework
TheBoardconfirmsthatthereisanon-goingprocessofreviewing,identifying,evaluatingandmanagingsignificantrisksfacedbytheGroup.RiskassessmentandevaluationareintegralpartoftheGroup’sbusinessandoperatingprocesses.ThedailyrunningofthebusinessisentrustedtotheExecutiveDirector(“ED”),ChiefExecutiveOfficer(“CEO”)andtheirmanagementteam.UnderthepurviewoftheEDandCEO,therespectiveHeadofeachoperatingsubsidiaryisresponsibleformanagingtherisksoftheoperatingsubsidiary,andtheHeadofDepartmentswitheachoperatingsubsidiaryisresponsibleformanagingtheriskofhis/herrespectivedepartmentaspartoftheirday-to-day duties.
3. internal audit Function
Theinternalauditfunctionisoutsourcedtoanexternalconsultantduringthefinancialyearended31December2016.Theinternalauditorsadoptedarisk-basedapproachandpreparedtheauditplanbasedontheriskprofileoftheGroup.TheinternalauditorsprovidedindependentreviewsonriskmanagementandcontrolprocessesimplementedbythemanagementandreportedtotheAuditCommitteewhichreviewedtheadequacy,integrityand effectiveness of the System.
ThefindingsofinternalauditwerecommunicatedtothemanagementoftheGroupandtheAuditCommittee.
TheAuditCommitteereviewedthereportsfrominternalauditorsandresponsesfromthemanagementbeforereporting the findings and making recommendations to the Board in strengthening the System.
4. other internal control process
Apartfromriskmanagementandinternalaudit,theGroup’sotherkeycontrolprocessesincludethefollowing:
i) Thereisanorganizationstructurewithwelldefinedreportinglinesofresponsibilityandaccountabilityanddelegation of authority.
ii) Documentedpoliciesandproceduresareupdatedwherenecessarytoreflectanychangingoperationalrisks.TheBoardapprovesappropriateresponsesoramendmentsintheGrouppolicies.
iii) TheAuditCommitteecomprisestwo(2)IndependentNon-ExecutiveDirectors.TheAuditCommitteewasestablishedwithaviewtoassisttheBoardintheeffectivedischargeofitsfiduciaryresponsibilityinrespectof the Group’s Internal Control Systems, risk management and financial reporting.
iv) QuarterlyresultsarereviewedbytheBoardandtheAuditCommitteebeforeannouncementtotheBursaSecurities.
Metronic Global berhad (632068-V)
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STATEMENT ON RISK MANAGEMENT ANd INTERNAL CONTROL(CONT’d)
4. other internal control process (cont’d)
Apartfromriskmanagementandinternalaudit,theGroup’sotherkeycontrolprocessesincludethefollowing:(Cont’d)
v) TherearemanagementmeetingsattendedbytheCEOandthemanagementteamtodiscussandreportonoperationalperformance,businessstrategy,keyoperatingstatistics,legalandregulatorymattersofeachbusinessunit.
vi) TheGroup’sprincipaloperatingsubsidiary,MetronicEngineeringSdnBhdisISO9001:2000accredited.ItsemployeesareguidedbytheQualityManualwherestandardoperatingproceduresaretobefollowed.InadditiontotheperiodicexternalISOaudit,internalauditiscarriedoutonannualbasiswherethefindingsorissuesaredocumentedanddeliberatedbythemanagementteaminthemanagementreviewmeetings.
5. review of the statement by external auditors
TheexternalauditorshavereviewedthisStatementonRiskManagement&InternalControlfortheinclusionintheannualreportforthefinancialyearended31December2016.Theexternalauditorsconductedthereviewinaccordancewiththe“RecommendedPracticeGuide5:GuidanceforAuditorsontheReviewofDirectors’StatementonInternalControl”(“RPG5”)issuedbytheMalaysianInstituteofAccountants.ThereviewhasbeenconductedtoassesswhethertheStatementonRiskManagement&InternalControlisbothsupportedbythedocumentationpreparedbyorfortheDirectorsandappropriatelyreflectstheprocessestheDirectorshadadoptedinreviewingtheadequacyandintegrityofthesystemofinternalcontrolsfortheGroup.RPG5doesnotrequiretheexternalauditors to consider whether the Directors’ Statement on Risk Management &Internal Control covers all risks and controls, or to form an opinion on the effectiveness of the Group’s risk and control procedures. RPG 5 also does notrequiretheexternalauditorstoconsiderwhethertheprocessesdescribedtodealwithmaterialinternalcontrolaspects of any significant matters disclosed in the annual report will, in fact, mitigate the risks identified or remedy thepotentialproblems.Basedontheirreview,theexternalauditorshavereportedtotheBoardthatnothinghadcometotheirattentionthatcausedthemtobelievethattheStatementonRiskManagement&InternalControlisinconsistentwiththeirunderstandingoftheprocesstheBoardhasadoptedinthereviewoftheadequacyandintegrity of risk management and internal control of the Group.
6. conclusion
TherewasnomaterialorsignificantbreakdownorweaknessinthesystemofinternalcontroloftheGroupthatresulted inmaterial losses or contingencies for the year under review. TheBoard and themanagementwillcontinually review and improve the existing risk management processes and internal control system to ensure theiradequacyandeffectivenessinthedynamicbusinessenvironment.
39
FInAncIAL StAteMentS
FInAncIAL StAteMentSDirectors’ Report 40
StatementbyDirectors44
Statutory Declaration 45
Independent Auditors’ Report 46
Statements of Financial Position 54
Statements of Profit or Loss andOther Comprehensive Income 56
StatementsofChangesinEquity58
Statements of Cash Flows 60
Notes to the Financial Statements 63
annual report 2016
41
Company No. 632068V
No. of Ordinary Shares of RM0.10 each Balance Balance
01.01.2016 Bought Sold 31.12.2016 Direct interest in the Company
(other than a benefit included in the aggregate amount of emoluments received or due and receivable by directors as shown in Note 34 of the financial statements, or the fixed salary of a fulltime employee of the Company) Note 37 (b)
dIRECTORS’ REPORT(CONT’d)
Metronic Global berhad (632068-V)
44
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54 132
133
STATEMENT BY dIRECTORSPURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965
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annual report 2016
45
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STATUTORY dECLARATIONPURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965
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4 133
Metronic Global berhad (632068-V)
46
Company No. 632068V
Opinion
412
Basis for Opinion
Auditors’ Responsibilities for the Audit of the Financial Statements
Independence and Other Ethical Responsibilities
Key Audit Matters
INDEPENDENT AUdITORS’ REPORTTO THE MEMBERS OF METRONIC GLOBAL BERHAd
Company No. 632068V
Opinion
412
Basis for Opinion
Auditors’ Responsibilities for the Audit of the Financial Statements
Independence and Other Ethical Responsibilities
Key Audit Matters
annual report 2016
47
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Auditors’ Responsibilities for the Audit of the Financial Statements
INdEPENdENT AUdITORS’ REPORTTO THE MEMBERS OF METRONIC GLOBAL BERHAd(CONT’d)
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48
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INdEPENdENT AUdITORS’ REPORTTO THE MEMBERS OF METRONIC GLOBAL BERHAd(CONT’d)
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INdEPENdENT AUdITORS’ REPORTTO THE MEMBERS OF METRONIC GLOBAL BERHAd(CONT’d)
Metronic Global berhad (632068-V)
50
Company No. 632068V
Information Other Than the Financial Statements and Auditors’ Report Thereon
Responsibilities of the Directors for the Financial Statements
INdEPENdENT AUdITORS’ REPORTTO THE MEMBERS OF METRONIC GLOBAL BERHAd(CONT’d)
Company No. 632068V
Information Other Than the Financial Statements and Auditors’ Report Thereon
Responsibilities of the Directors for the Financial Statements
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Information Other Than the Financial Statements and Auditors’ Report Thereon
Responsibilities of the Directors for the Financial Statements
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Responsibilities of the Directors for the Financial Statements
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Responsibilities of the Directors for the Financial Statements
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Responsibilities of the Directors for the Financial Statements
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Responsibilities of the Directors for the Financial Statements
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annual report 2016
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Auditors’ Responsibilities for the Audit of the Financial Statements
INdEPENdENT AUdITORS’ REPORTTO THE MEMBERS OF METRONIC GLOBAL BERHAd(CONT’d)
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52
INdEPENdENT AUdITORS’ REPORTTO THE MEMBERS OF METRONIC GLOBAL BERHAd(CONT’d)
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133
Company No. 632068V
Note 8
133
Company No. 632068V
Note 8
133
Company No. 632068V
Note 8
133
annual report 2016
53
Company No. 632068V
INdEPENdENT AUdITORS’ REPORTTO THE MEMBERS OF METRONIC GLOBAL BERHAd(CONT’d)
Metronic Global berhad (632068-V)
54
Company No. 632068V
Note
(Restated) (Restated) 5 6 7 8 9 10 11 12
13 14 15 16 17 18 19
20
Group Company
STATEMENTS OF FINANCIAL POSITIONAS AT 31 dECEMBER 2016
annual report 2016
55
Company No. 632068V
Note
(Restated) (Restated) 21 22 23
24
25 16 26 18 27 24 28
20
Group Company
STATEMENTS OF FINANCIAL POSITIONAS AT 31 dECEMBER 2016(CONT’d)
Company No. 632068V
Note
(Restated)
35 (0.66) 0.54
Company
Group
Metronic Global berhad (632068-V)
56
Company No. 632068V
Note
(Restated)
29
30
31
32
33
20
Company
Group
STATEMENTS OF PROFIT OR LOSS ANDOTHER COMPREHENSIVE INCOMEFOR THE YEAR ENdEd 31 dECEMBER 2016
annual report 2016
57
Company No. 632068V
Note
(Restated)
35 (0.66) 0.54
Company
Group
STATEMENTS OF PROFIT OR LOSS ANdOTHER COMPREHENSIVE INCOMEFOR THE YEAR ENdEd 31 dECEMBER 2016(CONT’d)
Company No. 632068V
Note
(Restated)
35 (0.66) 0.54
Company
Group
Metronic Global berhad (632068-V)
58
Com
pany
No.
632
068
V
Gro
up
STATEMENTS OF CHANGES IN EQUITYFOR THE YEAR ENdEd 31 dECEMBER 2016
annual report 2016
59
Company No. 632068V
Company
STATEMENTS OF CHANGES IN EQUITYFOR THE YEAR ENdEd 31 dECEMBER 2016(CONT’d)
Company No. 632068V
Note
(Restated)
35 (0.66) 0.54
Company
Group
Metronic Global berhad (632068-V)
60
Company No. 632068V
(Restated) (Restated)
Adjustments for: Operating profit/(loss) before working capital changes
Group Company
STATEMENTS OF CASH FLOWSFOR THE YEAR ENdEd 31 dECEMBER 2016
annual report 2016
61
Company No. 632068V
(Restated) (Restated)
Cash (used in)/generated from operations Net cash (used in)/generated from operating activities
(Note A)
Net cash (used in)/generated from investing activities
Net cash generated from financing activities
Group Company
STATEMENTS OF CASH FLOWSFOR THE YEAR ENdEd 31 dECEMBER 2016(CONT’d)
Metronic Global berhad (632068-V)
62
Company No. 632068V
(Restated) (Restated)
Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (Note B)
Less:
Less:
Group Company
STATEMENTS OF CASH FLOWSFOR THE YEAR ENdEd 31 dECEMBER 2016(CONT’d)
Company No. 632068V
Note
(Restated)
35 (0.66) 0.54
Company
Group
Metronic Global berhad (632068-V)
64
NOTES TO THE FINANCIAL STATEMENTS31 dECEMBER 2016(CONT’d)
632068V
Metronic Global berhad (632068-V)
66
NOTES TO THE FINANCIAL STATEMENTS31 dECEMBER 2016(CONT’d)
632068V
Variable consideration Right of return
632068V
Variable consideration Right of return
632068V
Variable consideration Right of return
632068V
Variable consideration Right of return
632068V
Variable consideration Right of return
annual report 2016
67
NOTES TO THE FINANCIAL STATEMENTS31 dECEMBER 2016(CONT’d)
632068V
(i) Acquisition method of accounting for noncommon control business combinations
Metronic Global berhad (632068-V)
68
NOTES TO THE FINANCIAL STATEMENTS31 dECEMBER 2016(CONT’d)632068V
(ii) Merger accounting for common control business combinations
(iii) Noncontrolling interest
Functional currency
Foreign currency
632068V
(ii) Merger accounting for common control business combinations
(iii) Noncontrolling interest
Functional currency
Foreign currency
632068V
(ii) Merger accounting for common control business combinations
(iii) Noncontrolling interest
Functional currency
Foreign currency
632068V
(ii) Merger accounting for common control business combinations
(iii) Noncontrolling interest
Functional currency
Foreign currency
632068V
(ii) Merger accounting for common control business combinations
(iii) Noncontrolling interest
Functional currency
Foreign currency
632068V
(ii) Merger accounting for common control business combinations
(iii) Noncontrolling interest
Functional currency
Foreign currency
632068V
(ii) Merger accounting for common control business combinations
(iii) Noncontrolling interest
Functional currency
Foreign currency
632068V
(ii) Merger accounting for common control business combinations
(iii) Noncontrolling interest
Functional currency
Foreign currency
632068V
(ii) Merger accounting for common control business combinations
(iii) Noncontrolling interest
Functional currency
Foreign currency
632068V
(ii) Merger accounting for common control business combinations
(iii) Noncontrolling interest
Functional currency
Foreign currency
632068V
(ii) Merger accounting for common control business combinations
(iii) Noncontrolling interest
Functional currency
Foreign currency
632068V
(ii) Merger accounting for common control business combinations
(iii) Noncontrolling interest
Functional currency
Foreign currency
annual report 2016
69
NOTES TO THE FINANCIAL STATEMENTS31 dECEMBER 2016(CONT’d)632068V
Foreign Operations
632068V
Foreign Operations
632068V
Foreign Operations
632068V
Foreign Operations
632068V
Foreign Operations
632068V
Foreign Operations
632068V
Foreign Operations
632068V
Foreign Operations
632068V
Foreign Operations
632068V
Foreign Operations
632068V
Foreign Operations
632068V
Foreign Operations
632068V
Foreign Operations