Notes to the Financial Statements - Cahaya Mata Sarawak Bhd

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56 Statement of Corporate Governance Accountability and Audit Financial Reporting In presenting the annual fi nancial statements and announcement of results to shareholders, the Directors aim to present a balanced and understandable assessment of the Group’s position and prospects. The Directors consider that, in preparing the fi nancial statements, the Group has used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgment and estimates. All accounting standards which the Board considers applicable have been followed. Additional notes and data which go beyond the minimum requirements are published whenever the Board considers amplifi cation is required to give shareholders a proper understanding of the Group and its activities. Internal Control The Group’s Statement on Internal Control is set out on page 57 to 58 of this Annual Report. Relationship with the Auditors Through the Audit Committee, the Board has established transparent and appropriate relationships with the Group’s auditors, both external and internal. The non-audit fees charged by external auditors during the year ended 31 December 2011 amounted to RM15,000 (2010: RM44,200). This Statement is made in accordance with a resolution of the Board of Directors dated 3 April 2012. Cahya Mata Sarawak Berhad
Responsibility The Board recognises its responsibilities for and the importance of sound internal controls and risk management practices, and for reviewing the adequacy and integrity of those systems. It should be noted, however, that such systems are designed to manage rather than eliminate risk. In addition, any system can only provide reasonable, and not absolute, assurance against material misstatement or loss. The Board does not regularly review the risk management and internal control systems of its associated companies as it does not have direct control over their operations. The Company’s interests are served through representation on the Boards of the associated companies and the receipt of quarterly fi nancial reports thereon. These representations also provide the Board with information to assess the performance of the Group’s investments. The Board has established procedures to implement the recommendations of Bursa Securities LR’s “Statement on Internal Control: Guidance for Directors of Public Listed Companies”. These procedures, which are subject to regular review, are intended to provide an ongoing process for identifying, evaluating and managing the signifi cant risks faced by the Group. Risk Management Risk Policy Risk management is regarded by the Board as an integral part of the business operations. Management at all levels have a collective responsibility for creating a risk aware culture and ensuring that business risk assessment becomes an explicit part of both management and the Strategic Business Unit (“SBU”) / CMS Board level decision making process. Management also has responsibility for managing risks and ensuring appropriate control measures are in place or being developed to mitigate signifi cant risks identifi ed and ensuring compliance with applicable laws and regulations. The main underlying principles of the Group risk policy are: • Informed risk management is an essential element of the CMS / SBU / subsidiary strategy. • Effective risk management provides greater assurance that the Group’s strategy and business objectives will be achieved without major surprises. • Each SBU (and business unit therein) and subsidiary company are responsible for managing risks that can impact the achievement of their business objectives. • All signifi cant risks are to be identifi ed, analysed, prioritised, monitored and reported. Risk Reporting Statement on Internal Control The Malaysian Code on Corporate Governance requires listed companies to maintain a sound system of internal control to safeguard shareholders’ investments and the Company’s assets. This Statement prepared in accordance with paragraph 15.26(b) of the Main Market Listing Requirements (“LR”) of Bursa Securities has been approved by the Board and reviewed by the external auditors as required under paragraph 15.23 of the LR. Based on their review, the external auditors have reported to the Board of Directors (“Board”) that nothing has come to their attention that causes them to believe that this Statement is inconsistent with their understanding of the process the Board has adopted in the review of the adequacy and integrity of the internal control systems of the Group. The Group’s risk management process provides for regular review, reporting and monitoring. In addition to the monthly operations performance reviews focused on monitoring the achievement of fi nancial objectives and other key performance indicators, the main elements of the risk reporting process are: • Presentation of a summary of the signifi cant risks to the Group Risk Committee / Board of Directors on a quarterly basis. • Reporting of signifi cant risks by SBU and subsidiaries in their annual management plans. • Reporting of signifi cant risks by SBU and subsidiaries on a quarterly basis to the holding company. • Review and monitoring of key risks during the management meetings of the business units. Annual Report 2011 57
Page 1 and 2:
Playing Our Role In Nation-building
Page 3 and 4:
CONTENTS 2 3 4 8 13 14 15 20 Perfor
Page 5 and 6:
Revenue (RM’000) Profi t before t
Page 7 and 8: “ Dear Shareholders, Group Chairm
Page 9 and 10: Whilst the opportunities for the Gr
Page 11 and 12: 10 Mar 4 May 19 May 26 May 27 Jun 2
Page 13 and 14: 24 Feb 1 Jul 19 Oct 30 Nov 24 Feb 1
Page 15 and 16: ��
Page 17 and 18: Board of Directors Tan Sri Dato’
Page 19 and 20: Y Bhg Dato’ Richard Alexander Joh
Page 21 and 22: Y Bhg Datu Michael Ting Kuok Ngie M
Page 23 and 24: DAVID LING KOAH WI Group General Co
Page 25 and 26: Segmental Analysis Segment Revenue
Page 27 and 28: Clinker CMS Cement owns East Malays
Page 29 and 30: Quarrying CMS Quarries Sdn Bhd and
Page 31 and 32: Construction & Road Maintenance The
Page 33 and 34: The Isthmus Property Development Th
Page 35 and 36: Education CMS Education Sdn Bhd own
Page 37 and 38: Strategic Investment: K&N Kenanga H
Page 39 and 40: CORPORATE RESPONSIBILITY
Page 41 and 42: Engagement & Communication Performa
Page 43 and 44: CMS Concrete Products Clay bricks m
Page 45 and 46: CMS Employees Volunteer in ‘Doing
Page 47 and 48: CSR Highlights Saving Lives Health
Page 49 and 50: Statement of Corporate Governance T
Page 51 and 52: Employees’ Share Option Scheme (
Page 53 and 54: Prior to each Board meeting, the Di
Page 55 and 56: Statement of Corporate Governance T
Page 57: Communicating with Shareholders and
Page 61 and 62: Composition The Group Audit Committ
Page 63 and 64: Authority i. The Committee is autho
Page 65 and 66: Utilisation of Proceeds raised from
Page 67 and 68: FINANCIALS
Page 69 and 70: The directors have pleasure in pres
Page 71 and 72: Issue of Shares During the fi nanci
Page 73 and 74: Statement by Directors Pursuant to
Page 75 and 76: Independent Auditors’ Report To t
Page 77 and 78: ASSETS Group Company Note 2011 2010
Page 79 and 80: Statements of Changes In Equity For
Page 81 and 82: Statements of Cash Flows For the fi
Page 83 and 84: Statements of Cash Flows For the fi
Page 85 and 86: Notes to the Financial Statements F
Page 107 and 108: 5. Interest income Notes to the Fin
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8. Profi t before tax Notes to the
Page 111 and 112:
10. Directors’ remuneration (cont
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12. Earnings per share (a) Basic ea
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13. Property, plant and equipment (
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Notes to the Financial Statements F
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14. Prepaid land lease payments Cos
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18. Goodwill Notes to the Financial
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19. Investments in subsidiaries (co
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20. Investments in associates (cont
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22. Deferred tax (contd.) Notes to
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24. Trade and other receivables (co
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25. Other current assets Notes to t
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28. Cash and bank balances (contd.)
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30. CMS Income Securities (contd.)
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30. CMS Income Securities (contd.)
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32. Trade and other payables Notes
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36. Other reserves (contd.) Company
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38. Employee benefi ts (contd.) Not
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39. Commitments (contd.) Notes to t
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40. Contingencies (contd.) (b) Othe
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41. Related party transactions (con
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45. Segment information Notes to th
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46. Dividends Notes to the Financia
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OTHER INFORMATION
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Name of Direct Indirect % of Substa
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List of Properties As at 31 Decembe
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** Land owned by third party Revalu
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Construction & Road Maintenance CMS
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1. To receive the Audited Financial
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Names of Directors who are standing
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Form of Proxy No. of Shares Held: C
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CAHYA MATA SARAWAK BERHAD (Company
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Notes to the Financial Statements - Cahaya Mata Sarawak Bhd

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