annual report - Tenaga Nasional Berhad

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Statement Of Internal Control[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]Special Engagement AgainstLosses Team & RevenueMaximisation UnitBoth the above entities assist the Groupin the detection and curbing of theft ofelectricity as well as improve billingand collection where theft has beenidentified.MONITORING & REVIEWBoard Interactions WithManagement via BreakoutSessionsThe Board interacts actively withmanagement during breakout sessionsto discuss and review the plans,strategies, performance and risks facedby the Group. During the year, twoBoard Breakout sessions were held.These sessions provide a monitoringand review mechanism to enhancethe Board’s effectiveness and enablesmanagement to seek mandates toaddress the risks faced in its internaland external environment. An inauguralBoard Audit Committee Breakoutsession with Senior Management wasalso held during the year to promoteawareness and importance of improvingand maintaining strong internal controlsin the Group.Business Planning & BudgetingT h e B o a r d h a s a p p r o v e d t h eimplementation of a 20 Year StrategicPlan. Business plans, budgets andKey Performance Indicators (KPI)s arealigned to the Strategic Plan. Theseserve as guides to the achievement ofthe Group’s vision of becoming amongthe leading corporations in energy andrelated businesses globally.Strategies identified in the StrategicPlan, 5 Year Business Plans, AnnualOperation Plans and KPIs are reviewed,approved and monitored by the Boardand management. Revisions are madebased on changes in business andoperating environments. Feedback fromthe Board during breakout sessions withthem is used to develop the Five Yearand Annual Operating Plans.The Five Year Business Plan and AnnualOperating Plan also contain the budgetof the Group, to enable the Groupto direct its resources towards theachievement of its financial objectives.The budget is monitored at regularintervals by management to ensureeffective budget utilisation.Financial and Operational ReviewThe Board Audit Committee (BAC)reviews the Group’s quarterly financialperformance together with management,and these are subsequently reported tothe Board. The quarterly reviews enablethe BAC to deliberate and assess theGroup’s financial results and operationalperformance. Monthly managementaccounts which serve as a monitoringtool, are also circulated to the Boardand key management staff to provideinformation on key financial results,operational performance indicators,budget comparisons to enable themto monitor and contribute towardsimproving performance.Group Internal Audit (GIA)The Group Internal Audit Department(GIA) was set up by the Board to provideindependent assurance on the adequacyof risk management, internal control andgovernance systems. GIA carries outregular reviews on the business processesto assess the adequacy and effectivenessof internal controls, compliance withregulations and the Group’s policies andprocedures, and highlight significant risksaffecting the Group. BAC meetings areheld regularly to deliberate audit findings,management response, corrective actions,and monitoring of actions taken bymanagement for areas with significant orhigh risks. GIA scope of coverage includesgeneration, transmission, distribution,projects, procurement, engineering,finance, human resources, corporateservices, information and communicationtechnology, investment in subsidiaries,risk management and compliance.GIA has an independent status inthe Group and reports functionally tothe Board through the Board AuditCommittee. GIA annual audit plans,budgets, competency and resources arereviewed and approved by the BoardAudit Committee. This is to enablereview on the adequacy of coverage,resources available and coverage ofsignificant and high risk areas. The reviewalso helps to confirm the audits that areto be co-sourced and outsourced tofacilitate transfer of knowledge fromconsultants and coverage by externalparty in areas where technical skills arenot available in GIA.ConclusionFor the financial year under review,some weaknesses in internal controlwere detected. However, after dueand careful inquiry and based on theinformation and assurance provided,the Board is satisfied that there wereno material losses as a result ofweaknesses in the system of internalcontrol, that would require separatedisclosure in Tenaga Nasional Berhad’sAnnual Report. Nevertheless, for areasrequiring attention, measures have beenand are being taken to ensure ongoingadequacy and effectiveness of internalcontrols and to safeguard shareholders’investments and the Group’s assets.This statement is made in accordancewith the resolution of the Board ofDirectors dated 16 October 2008.144
Board Audit Committee ReportThe BAC wasestablished on9 December 1990by the Board ofDirectors, to assistthem to carry outtheir responsibilities.The BAC is guidedby their Terms ofReference which isset out in pages 148to 151 of the AnnualReport.Membership And MeetingsThe Board Audit Committee (BAC) members and the number of meetings whichthey attended during the financial year were as follows:No.1.2.NameTan Sri Dato’ Lau Yin Pin @Lau Yen Beng (Chairman)Tan Sri Dato’ Hari Narayanana/l Govindasamy3. Dato’ Zainal Abidin bin Putih4.Dato’ Mohammad Zainalbin ShaariStatus ofDirectorshipNon-ExecutiveDirectorNon-ExecutiveDirectorNon-ExecutiveDirectorNon-ExecutiveDirectorIndependentNo. ofMeetingsAttendedYes 17/17Yes 16/17Yes 15/17No 14/17[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]145
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annual report2008
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Conversion to more energy efficient
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Configure the air conditioner by se
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MissionWe are committed to excellen
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About Us[ Tenaga Nasional Berhad ]
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Corporate Award Highlights[ Tenaga
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Corporate Award HighlightsThe Brand
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Corporate Award Highlights12. Malay
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Notice Of Annual General Meeting[ T
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Notice Of Annual General MeetingEXP
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Key HighlightsUnit Demand Growth +4
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Corporate Performance ChartsProfit
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FY2008 Core RevenueFY2008 Total RM2
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Operational StatisticsSales Of Elec
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[ Tenaga Nasional Berhad ] [ Annual
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Chairman’s Letter To Shareholders
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Chairman’s Letter To Shareholders
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President /CEO’s Review[ Tenaga N
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President/CEO’s ReviewRising To T
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President/CEO’s Review[ Tenaga Na
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President/CEO’s Review[ Tenaga Na
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President/CEO’s ReviewOur investm
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GenerationTransmissionDistributionF
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GenerationMoving forward, Generatio
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Operations Review - Generation Divi
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Ir. Ab’llah bin Haji Mohd SallehV
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Operations Review - Transmission Di
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TEWAPERLISKGARBKTRCIMATo SDAOBKHMKh
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To focus on its core businessactivi
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D i s t r i b u t i o n D i v i s i
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Voice Recorder (IVR) and IPTelephon
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continues to carry out operations a
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SUMMARY OF OPERATIONSFinancial Perf
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The Division actively monitored the
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As always, TNB invites thefinancial
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Operational Summaryi.Regulatory and
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Operational SummaryIn order to meet
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Operational ImprovementsEfficiency
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Divisional GoalsThe Planning Divisi
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could pose environmentalissue as a
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As it moves forward to a newera, MT
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In preparation for stiffercompetiti
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Razali bin AwangChief Information O
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Page 101 and 102: local products. An awarenessprogram
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Page 105 and 106: Human ResourceManagementApart from
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Page 111 and 112: Major Projects DivisionUnder the 9
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Page 115 and 116: Vegetation and MaintenanceManagemen
Page 117 and 118: Dato’ Fuad bin Jaafar(Independent
Page 119: Associate /Investment CompaniesJIMA
Page 122 and 123: Calendar Of Corporate EventsNovembe
Page 124 and 125: Calendar Of Corporate EventsMay 200
Page 126 and 127: Media Highlights[ Tenaga Nasional B
Page 128 and 129: Statement Of Corporate GovernanceTo
Page 130 and 131: Statement Of Corporate GovernanceRo
Page 132 and 133: Statement Of Corporate Governance[
Page 134 and 135: Statement Of Corporate Governance(b
Page 136 and 137: Statement Of Corporate Governance[
Page 138 and 139: Statement Of Corporate Governance(7
Page 140 and 141: Enterprise Wide Risk ManagementTNB
Page 142 and 143: Enterprise Wide Risk Management3. M
Page 144 and 145: Statement Of Internal ControlBoard
Page 148 and 149: Board Audit Committee Report[ Tenag
Page 150 and 151: Terms Of Reference Of The Board Aud
Page 152 and 153: Terms Of Reference Of The Board Aud
Page 154 and 155: Board Of Directorsfrom left to righ
Page 156 and 157: Profile Of DirectorsTan Sri Leo Mog
Page 158 and 159: Profile Of DirectorsDato’ Puteh R
Page 160 and 161: Profile Of DirectorsDato’ Zainal
Page 162 and 163: Group Executive Council Committee -
Page 164 and 165: Group Executive Management Committe
Page 166 and 167: Corporate Social Responsibility[ Te
Page 172 and 173: Other Services - Productivity And Q
Page 174 and 175: Statement Of Environment[ Tenaga Na
Page 176 and 177: Financial Statements[ Tenaga Nasion
Page 178 and 179: Directors’ ReportRESERVES AND PRO
Page 180 and 181: Directors’ ReportDIRECTORS’ BEN
Page 182 and 183: Income Statementsfor the financial
Page 184 and 185: Balance Sheetsgroup Companynote 200
Page 186 and 187: Statement Of Changes In Equitynon-d
Page 188 and 189: Cash Flow Statementsgroup Company20
Page 190 and 191: Notes To The Financial Statements2
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Notes To The Financial Statements2
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Statement by Directorspursuant to S
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Independent Auditors’ Reportto th
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Analysis Of Shareholdingsas at 9 Oc
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Analysis Of Shareholdings30 LARGEST
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Analysis Of Unsecured Convertible R
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Property List- generation[ Tenaga N
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Property List- distribution[ Tenaga
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StampSymphony Share Registrars Sdn.
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