ANNUAL REPORT 2008 - KNM Steel Sdn Bhd

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CORPORATE GOVERNANCE STATEMENT (CONT’D) Workplace The Group acknowledges and is committed to create a safe and conducive working environment for all its employees. The Group’s Health, Safety and Environment Division establishes policies and procedures and reinforces the Group’s safety culture by inculcating good safety and fire prevention practices, heightening safety awareness and providing safety gear, conducting safety talks, and implementing such other safety courses and training activities so as to attain zero loss time injury hours at its manufacturing facilities. Children of the Company’s staff who have performed well in their primary and secondary school examinations are given cash rewards in recognition of their success so as to help bolster their morale and confidence, to encourage and motivate them to continue further and excel in their studies. As part of the human capital development, the Group conducts various in-house training programmes focusing on quality leadership, building effective performance and job skills related training to equip the employees with improved skills and knowledge. Community The Group’s main sponsorship, outreach and community investment activities include contributions, donations and philanthropic support towards various deserving and worthy causes such as:- (a) (b) contributions to the earthquake victims in Chengdu, China; and contributions towards the cost of corrective heart surgeries for two (2) children in Malaysia. The Group also provides internship training programmes to local diploma and vocational students for knowledge enrichment, complementing and nurturing talents among these students for their personal growth and future employment needs. Marketplace The Company is committed to ensure that all information released are accurate, concise and timely given in compliance with the various regulatory requirements that the Group is subjected to. The Company maintains good visibility and constantly interacts with its stakeholders such as investors, portfolio analysts, fund managers, bankers, government bodies and its corporate clients through a variety of channels, whereby accurate and concise information on the Group are provided through briefings, meetings, teleconferences, dialogues and visits to the Group’s manufacturing facilities to enable its stakeholders to better understand its business operations. Briefings to investors are usually conducted on a quarterly basis after the release of the Company’s quarterly financial results. The Group is mindful of the expectations of the investment community and therefore, strategizes effectively to attain and surpass their expectations. KNM GROUP BERHAD 28 ANNUAL REPORT 2008
CORPORATE GOVERNANCE STATEMENT (CONT’D) ADDITIONAL COMPLIANCE INFORMATION The following additional information is provided in compliance with the Listing Requirements:- 1. Approved Utilisation of Funds On 14 September 2006, the Company’s wholly owned subsidiary, KNM Capital Sdn Bhd (“KNMC”), had obtained the necessary approval from the Securities Commission for the issuance of up to RM300.0 million in Nominal Value Islamic Commercial Papers/Islamic Medium-Term Notes under the Islamic Commercial Papers/Islamic Medium-Term Notes (“ICP/IMTN”) Programme. During the financial year under review, the following new issues were drawn and its proceeds were utilised as set out follows: Utilisation of ICP/IMTN Proceeds RM’000 Total ICP/IMTN drawn 300,000 Group working capital purposes 150,000 Murabahah Underwritten Notes Issuance Facility/IMTN repayment 150,000 300,000 A total of 9,767,500 options were exercised during the financial year pursuant to the Company’s ESOS. Proceeds raised from the exercise of KNM Group’s Employees’ Share Option Scheme (“ESOS”) and its due utilisation thereof are as follows: Utilisation of ESOS Proceeds RM’000 Total ESOS proceeds 3,967 Group working capital purposes 3,967 The Rights Issue of KNM shares was completed on 30 June 2008, upon the listing and quotation for the 263,735,925 new ordinary shares of RM0.25 each issued at an issue price of RM4.00 per share (“Rights Issue”). Proceeds raised from the Rights Issue and its due utilisation thereof are as follows: Purpose Actual utilisation utilisation Deviation Intended Purpose RM’000 RM’000 RM’000 time frame Explanation Potential strategic 1,024,944 (1,024,944) – 12 months N/A acquisition and/or working capital purposes Defray estimated 30,000 (20,299) 9,701 Immediately Pending expenses for the completion of Rights Issue, Exchangeable Bonus Issue and Bonds Issue Exchangeable Bonds Issue** Total 1,054,944 (1,045,243) 9,701* N/A N/A Notes: * Any unutilised amount shall be used for the Group’s working capital and/or investment for future strategic acquisitions of the Group. ** The Company has not embarked on the Exchangeable Bonds Issue given the current economic situation and the Securities Commission has vide its letter dated 1 December 2008, approved an extension of time of twelve (12) months until 29 November 2009 for the implementation of the proposed Exchangeable Bonds Issue by KNMC. KNM GROUP BERHAD 29 ANNUAL REPORT 2008
Page 1 and 2: KNM GROUP BERHAD (521348-H) World C
Page 3 and 4: CONTENTS 2 Corporate Information 3
Page 5 and 6: CORPORATE STRUCTURE AS AT 18 MAY 20
Page 7 and 8: Malaysia China Canada USA Brazil Au
Page 9 and 10: CHAIRMAN'S MESSAGE (CONT’D) FINAN
Page 11 and 12: CHAIRMAN'S MESSAGE (CONT’D) GLOBA
Page 13 and 14: 5-YEAR GROUP FINANCIAL HIGHLIGHTS K
Page 15 and 16: PROFILE OF DIRECTORS DATO’ MOHAMA
Page 17 and 18: PROFILE OF DIRECTORS (CONT’D) LEE
Page 19 and 20: CORPORATE GOVERNANCE STATEMENT The
Page 21 and 22: CORPORATE GOVERNANCE STATEMENT (CON
Page 29: CORPORATE GOVERNANCE STATEMENT (CON
Page 35 and 36: AUDIT COMMITTEE REPORT (CONT’D) 2
Page 37 and 38: AUDIT COMMITTEE REPORT (CONT’D) (
Page 39 and 40: STATEMENT ON INTERNAL CONTROL The B
Page 41 and 42: ANALYSIS OF SHAREHOLDINGS as at 18
Page 43 and 44: ANALYSIS OF SHAREHOLDINGS as at 18
Page 45 and 46: LIST OF MAJOR PROPERTIES OWNED BY T
Page 47 and 48: DIRECTORS’ REPORT for year ended
Page 49 and 50: DIRECTORS’ REPORT (CONT’D) Dire
Page 51 and 52: DIRECTORS’ REPORT (CONT’D) Opti
Page 53 and 54: BALANCE SHEETS AT 31 DECEMBER 2008
Page 55 and 56: INCOME STATEMENTS FOR THE YEAR ENDE
Page 57 and 58: CONSOLIDATED STATEMENT OF CHANGES I
Page 59 and 60: CASH FLOW STATEMENTS FOR THE YEAR E
Page 61 and 62: CASH FLOW STATEMENTS FOR THE YEAR E
Page 63 and 64: NOTES TO THE FINANCIAL STATEMENTS (
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NOTES TO THE FINANCIAL STATEMENTS (
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INDEPENDENT AUDITORS’ REPORT TO T
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NOTICE OF ANNUAL GENERAL MEETING NO
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NOTICE OF ANNUAL GENERAL MEETING (C
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KNM GROUP BERHAD (Company No. 52134
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(521348-H)
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ANNUAL REPORT 2008 - KNM Steel Sdn Bhd

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