Set out below is a statement on how the Group has applied the principles of the Malaysian Code on Corporate Governance.

Transcription

1 The Board is committed to applying the recommendations of the Malaysian Code on Corporate Governance to ensure that good corporate governance is practiced throughout the Group to effectively discharge its responsibilities to protect and enhance shareholder value. Set out below is a statement on how the Group has applied the principles of the Malaysian Code on Corporate Governance. BOARD OF DIRECTORS The Board is committed to establishing and enhancing shareholder value in the long-term. To this end, the Board is responsible for the overall Group strategy, acquisition and divestment policies, capital expenditures, annual budget, review of financial and operational performance, and internal controls and risk management processes. The Group Chief Executive Officer (Group CEO) on the other hand is responsible for the implementation of broad policies approved by the Board and reports and discusses material matters including regulatory developments and strategic projects to the Board. There is therefore a natural separation of management and governance leading to a balance of power and authority. In view of the retirement of the Group CEO which will take effect on 30 September 2005, a Group Executive Committee was formed and vested with the day-to-day powers and authority of the Group CEO. 80 Statement OF corporate Governance

2 Lembaga Pengarah berusaha untuk menggunapakai cadangancadangan dalam Kod Tadbir Urus Korporat Malaysia untuk memastikan agar tadbir urus korporat yang baik diamalkan dalam Kumpulan bagi pelaksanaan tanggungjawabnya dengan berkesan untuk melindungi dan meningkatkan nilai pemegang saham. Dinyatakan di bawah ialah penyata tentang bagaimana Kumpulan telah menggunapakai prinsip-prinsip Kod Tadbir Urus Korporat Malaysia. AHLI LEMBAGA PENGARAH Ahli-ahli Lembaga Pengarah berusaha ke arah mewujudkan dan meningkatkan nilai pemegang saham dalam jangka masa panjang. Sehingga kini, ahli-ahli Lembaga Pengarah adalah bertanggungjawab kepada strategi keseluruhan Kumpulan, polisi pembelian dan penjualan, perbelanjaan modal, belanjawan tahunan, semakan prestasi kewangan dan operasi, serta kawalan dalaman dan proses pengurusan risiko. Ketua Pegawai Eksekutif Kumpulan (CEO Kumpulan) pula adalah bertanggungjawab untuk melaksanakan polisi-polisi yang meluas yang diluluskan oleh Lembaga Pengarah, melapor dan membincangkan perkaraperkara penting termasuklah penguatkuasaan baru dan projek-projek yang strategik kepada Lembaga Pengarah. Dengan itu pengasingan semulajadi dalam pengurusan dan tadbir urus membawa kepada keseimbangan kuasa dan hak. Berikutan persaraan CEO Kumpulan yang berkuatkuasa pada 30 September 2005, Jawatankuasa Eksekutif Kumpulan (EXCO Kumpulan) telah ditubuhkan untuk melancarkan proses peralihan kuasa. EXCO Kumpulan bertanggungjawab untuk membuat keputusan yang berkaitan dengan perlaksanaan operasi dan hala-tuju syarikat. Statement OF corporate Governance 81 Laporan Tahunan 2005 Annual Report

3 In the financial year ended 31 March 2005, the Board of PROTON Holdings Berhad (PHB) met twelve (12) times. The following are the details of attendance of the Directors: No. Directors Total 1 Dato Mohammed Azlan bin Hashim - Chairman (Appointed w.e.f. 17 December 2004) 3/3 2 Tengku Tan Sri Mahaleel bin Tengku Ariff (Appointed w.e.f. 12 April 2004) 10/11 3 Abdul Jabbar bin Abdul Majid (Appointed w.e.f. 12 April 2004) 10/11 4 Lt. Gen (R) Dato Seri Mohamed Daud bin Abu Bakar (Appointed w.e.f. 12 April 2004) 11/11 5 Badrul Feisal bin Abdul Rahim (Appointed w.e.f. 12 April 2004) 10/11 6 Dato Haji Abd. Rahim bin Haji Abdul (Appointed w.e.f. 17 December 2004) 2/3 7 Mohammad Zainal bin Shaari (Appointed w.e.f. 17 December 2004) 3/3 8 Abdul Kadir bin Md Kassim (Appointed w.e.f. 10 March 2005) 0/1 9 Datuk Abu Hassan bin Kendut (Resigned w.e.f. 7 February 2005) 8/8 10 Md Ali bin Md Dewal (Resigned w.e.f. 10 March 2005) 8/9 11 Tan Sri A. Razak bin Ramli (Resigned w.e.f. 10 March 2005) 6/9 12 Tan Seng Lee (Resigned w.e.f. 12 April 2004) 1/1 13 Fadilat binti Ismail (Resigned w.e.f. 12 April 2004) 1/1 14 Fumihiko Minami (Resigned w.e.f. 21 July 2004) 0/3 15 Dato Haji Abdul Majid bin Haji Hussein (Resigned w.e.f. 2 October 2004) 4/5 The profiles of the directors are set out on pages 16 to 25 of the Annual Report. 82 Statement OF corporate Governance

4 Dalam tahun kewangan berakhir pada 31 Mac 2005, Lembaga Pengarah PROTON Holdings Berhad (PHB) telah bersidang sebanyak dua belas (12) kali. Berikut adalah butir-butir kehadiran para pengarah: Bil. Pengarah Jumlah 1 Dato Mohammed Azlan bin Hashim - Pengerusi (Dilantik berkuatkuasa 17 Disember 2004) 3/3 2 Tengku Tan Sri Mahaleel bin Tengku Ariff (Dilantik berkuatkuasa 12 April 2004) 10/11 3 Abdul Jabbar bin Abdul Majid (Dilantik berkuatkuasa 12 April 2004) 10/11 4 Lt. Jen (B) Dato Seri Mohamed Daud bin Abu Bakar (Dilantik berkuatkuasa 12 April 2004) 11/11 5 Badrul Feisal bin Abdul Rahim (Dilantik berkuatkuasa 12 April 2004) 10/11 6 Dato Haji Abd. Rahim bin Haji Abdul (Dilantik berkuatkuasa 17 Disember 2004) 2/3 7 Mohammad Zainal bin Shaari (Dilantik berkuatkuasa 17 Disember 2004) 3/3 8 Abdul Kadir bin Md Kassim (Dilantik berkuatkuasa 10 Mac 2005) 0/1 9 Datuk Abu Hassan bin Kendut (Meletak jawatan berkuatkuasa 7 Februari 2005) 8/8 10 Md Ali bin Md Dewal (Meletak jawatan berkuatkuasa 10 Mac 2005) 8/9 11 Tan Sri A. Razak bin Ramli (Meletak jawatan berkuatkuasa 10 Mac 2005) 6/9 12 Tan Seng Lee (Meletak jawatan berkuatkuasa 12 April 2004) 1/1 13 Fadilat binti Ismail (Meletak jawatan berkuatkuasa 12 April 2004) 1/1 14 Fumihiko Minami (Meletak jawatan berkuatkuasa 21 Julai 2004) 0/3 15 Dato Haji Abdul Majid bin Haji Hussein (Meletak jawatan berkuatkuasa 2 Oktober 2004) 4/5 Profil para pengarah adalah seperti yang dinyatakan dari muka surat 16 hingga 25 Laporan Tahunan. Statement OF corporate Governance 83 Laporan Tahunan 2005 Annual Report

5 The Board on 25 July 2005 had resolved not to renew the contract for service of the Group CEO. Under the terms of the current arrangements, the Group CEO s contract for service would end on 30 September The Group CEO has been on leave since 26 July Board meetings for a particular year are scheduled in advance before the start of each calendar year. Additional meetings are convened whenever necessary. BOARD COMPOSITION AND BALANCE The Board consists of 8 members with the Chairman who is a Non-Independent Non-Executive Director, 3 Non-Independent Non-Executive Directors, 3 Independent Non-Executive Directors and an Executive Director who is the Group CEO. As in the previous year, Abdul Jabbar bin Abdul Majid is the Company s Senior Independent Director to whom concerns pertaining to the Group may be conveyed by shareholders and the public. INDEPENDENCE AND CONFLICT OF INTEREST The Directors are required to make written declarations and it is their responsibility to declare whether they have a potential or actual conflict of interest in any transaction. Where issues involve conflict of interest, the interested Directors abstain from discussing or voting on the matter. SUPPLY OF INFORMATION In general, board papers and minutes of previous meetings of the Board and Board Committees including minutes of board meetings of subsidiary companies are circulated in advance to the Board before a board meeting. Senior management as well as professionals and external advisors are from time to time invited to attend board meetings. The Board has access to the Company Secretary who is available to provide the Directors with the appropriate advice and services and also to ensure that the relevant procedures are followed. POLICY ON DIRECTOR APPOINTMENTS The Board Nomination Committee reviews all new appointments by taking into consideration the skill sets required by the Company and the Group. New directors are required to undergo familiarisation programmes, plant visits and briefings to get a better understanding of the PROTON Group, its operations and the automotive industry. The Board Nomination Committee annually reviews the mix of skills and experience of the Directors to ensure that the Board has the right balance and effectiveness. RE-ELECTION OF DIRECTORS All Directors including the Executive Director are subject to retirement by rotation at least once in every 3 years and are eligible for re-election. In accordance with the Articles of Association, 1/3 of the Directors shall retire from office at each Annual General Meeting. 84 Statement OF corporate Governance

6 Pada 25 Julai 2005, Lembaga Pengarah telah bersetuju untuk tidak memperbaharui kontrak perkhidmatan CEO Kumpulan. Berdasarkan terma semasa, kontrak perkhidmatan CEO Kumpulan akan tamat pada 30 September CEO Kumpulan telah bercuti sejak 26 Julai 2005 hingga akhir tarikh perkhidmatan pada 30 September Mesyuarat Lembaga Pengarah untuk tahun tertentu dijadualkan terlebih dahulu sebelum bermulanya setiap tahun takwim. Mesyuarat tambahan akan diadakan bila mana perlu. KOMPOSISI DAN KESEIMBANGAN AHLI LEMBAGA PENGARAH Lembaga Pengarah terdiri daripada 8 ahli dengan Pengerusi sebagai Pengarah Bukan Eksekutif Bukan Bebas, 3 Pengarah Bukan Eksekutif Bukan Bebas, 3 Pengarah Bukan Eksekutif Bebas dan seorang Pengarah Eksekutif sebagai CEO Kumpulan. Seperti tahun sebelumnya, sebarang pertanyaan oleh para pemegang saham dan orang awam mengenai Kumpulan boleh dirujuk kepada Abdul Jabbar bin Abdul Majid, Pengarah Kanan Bebas Syarikat. KEBEBASAN DAN PERCANGGAHAN KEPENTINGAN Para Pengarah adalah dituntut untuk membuat kenyataan bertulis dan bertanggungjawab untuk menyatakan sama ada mereka mungkin atau telah mempunyai percanggahan kepentingan dalam apa-apa transaksi. Di mana isu-isu membabitkan percanggahan kepentingan, Pengarah yang berkepentingan adalah dihalang daripada terlibat dalam perbincangan atau pengundian ke atas perkara tersebut. PENYAMPAIAN MAKLUMAT Secara amnya, laporan Lembaga Pengarah yang mengandungi maklumat dan minit-minit mesyuarat Lembaga Pengarah dan Jawatankuasa-jawatankuasa Lembaga Pengarah yang sebelumnya termasuk minitminit mesyuarat anak-anak syarikat diedarkan terlebih dahulu kepada ahli-ahli Lembaga Pengarah sebelum mesyuarat Lembaga Pengarah diadakan. Pengurusan kanan dan juga para profesional dan penasihat luar adalah dijemput untuk menghadiri mesyuarat Lembaga Pengarah. Lembaga Pengarah boleh menghubungi Setiausaha Syarikat untuk mendapatkan nasihat dan perkhidmatan dan untuk memastikan prosedur-prosedur yang relevan diikuti. POLISI PERLANTIKAN LUARAN Lembaga Jawatankuasa Pencalonan mengkaji semua perlantikan baru dengan mengambil kira set kemahiran yang diperlukan oleh Syarikat dan Kumpulan. Para pengarah baru adalah dituntut untuk mengikuti program-program penyesuaian, lawatan ke kilang dan taklimat untuk mendapatkan lebih maklumat tentang Kumpulan PROTON, operasinya dan industri otomotif. Lembaga Jawatankuasa Pencalonan akan mengkaji kemahiran-kemahiran dan pengalaman yang perlu pada para pengarah untuk memastikan Lembaga Pengarah adalah seimbang dan berkesan. Statement OF corporate Governance 85 Laporan Tahunan 2005 Annual Report

7 Any new appointed director shall hold office only until the next Annual General Meeting of the Company and shall be eligible for re-election under Article 111. The following Directors shall retire by rotation at the forthcoming Annual General Meeting of PROTON Holdings Berhad and have offered themselves for re-election: 1 Dato Mohammed Azlan bin Hashim 2 Mohammad Zainal bin Shaari 3 Abdul Kadir bin Md Kassim 4 Badrul Feisal bin Abdul Rahim BOARD COMMITTEES The Board has delegated specific responsibilities to 5 sub-committees, namely Board Audit, Board Nomination, Board Remuneration, Board Risk Management and Group Executive Committees. The Committees have the authority to examine specific issues and report to the Board with their recommendations. The responsibility of decisions on all matters ultimately lies with the Board as a whole. BOARD AUDIT COMMITTEE The composition of Board Audit Committee and their respective attendance record of meetings for the financial year ended 31 March 2005 were as follows: No. Members Designation Meeting Attendance 1 Abdul Jabbar bin Abdul Majid Chairman Independent 7/7 Non-Executive Director 2 Mohammad Zainal bin Shaari Member Non-Independent * (Appointed w.e.f. 10 March 2005) Non-Executive Director 3 Abdul Kadir bin Md Kassim Member Independent * (Appointed w.e.f. 10 March 2005) Non-Executive Director 4 Lt. Gen (R) Dato Seri Mohamed Daud Member Independent 7/7 bin Abu Bakar Non-Executive Director (Resigned w.e.f. 10 March 2005) 5 Badrul Feisal bin Abdul Rahim Member Non-Independent 6/7 (Resigned w.e.f. 10 March 2005) Non-Executive Director 6 Md Ali bin Md Dewal Member Independent 6/7 (Resigned w.e.f. 10 March 2005) Non-Executive Director * No meeting was held subsequent to their appointment. 86 Statement OF corporate Governance

8 PERLANTIKAN SEMULA PENGARAH Para Pengarah termasuk Pengarah Eksekutif tertakluk kepada perlantikan semula mengikut turutan sekurang-kurangnya sekali untuk setiap tiga tahun dan layak untuk perlantikan semula. Mengikut Artikel Syarikat, 1/3 daripada pengarah akan bersara dari tugas dan tanggungjawabnya pada setiap Mesyuarat Agung Tahunan. Manamana Pengarah baru yang dilantik hanya akan menjalankan tugas dan tanggungjawabnya sehingga Mesyuarat Agung yang seterusnya dan layak untuk perlantikan semula di bawah Artikel 111. Berikut adalah senarai pengarah yang akan bersara pada Mesyuarat Agung PROTON Holdings Berhad yang akan datang dan telah menawarkan diri untuk perlantikan semula:- JAWATANKUASA-JAWATANKUASA LEMBAGA PENGARAH Lembaga Pengarah telah membahagikan tanggungjawab tertentu kepada 5 kategori jawatankuasa iaitu Lembaga Jawatankuasa Audit, Lembaga Jawatankuasa Imbuhan, Lembaga Jawatankuasa Pencalonan, Lembaga Jawatankuasa Pengurusan Risiko dan Jawatankuasa Eksekutif Kumpulan. Jawatankuasa ini mempunyai kuasa untuk meneliti isu-isu yang khusus dan melaporkan cadangan-cadangan mereka kepada Lembaga Pengarah. Tanggungjawab untuk membuat keputusan akhir di dalam semua hal terletak sepenuhnya di tangan Lembaga Pengarah. 1 Dato Mohammed Azlan bin Hashim 2 Mohammad Zainal bin Shaari 3 Abdul Kadir bin Md Kassim 4 Badrul Feisal bin Abdul Rahim LEMBAGA JAWATANKUASA AUDIT Lembaga Jawatankuasa Audit dianggotai oleh ahli-ahli dengan rekod kehadiran masing-masing untuk tahun kewangan berakhir 31 Mac 2005 seperti berikut: Bil. Ahli-ahli Jawatan Kehadiran Mesyuarat 1 Abdul Jabbar bin Abdul Majid Pengerusi Pengarah 7/7 Bukan Eksekutif Bebas 2 Mohammad Zainal bin Shaari Ahli Pengarah Bukan * (Dilantik berkuatkuasa 10 Mac 2005) Eksekutif Bukan Bebas 3 Abdul Kadir bin Md Kassim Ahli Pengarah Bukan * (Dilantik berkuatkuasa 10 Mac 2005) Eksekutif Bebas 4 Lt. Jen (B) Dato Seri Mohamed Daud Ahli Pengarah Bukan 7/7 bin Abu Bakar Eksekutif Bebas (Meletak jawatan berkuatkuasa 10 Mac 2005) 5 Badrul Feisal bin Abdul Rahim Ahli Pengarah Bukan 6/7 (Meletak jawatan berkuatkuasa 10 Mac 2005) Eksekutif Bukan Bebas 6 Md Ali bin Md Dewal Ahli Pengarah Bukan 6/7 (Meletak jawatan berkuatkuasa 10 Mac 2005) Eksekutif Bebas * Tiada mesyuarat diadakan selepas perlantikan mereka. Statement OF corporate Governance 87 Laporan Tahunan 2005 Annual Report

9 During the financial year, the Board Audit Committee of PROTON Holdings Berhad undertook the following activities: (a) (b) (c) (d) (e) Assist the Board in discharging its statutory duties and responsibilities relating to accounting and reporting practice of the Company and the Group in accordance with Generally Accepted Accounting Practices. Reviewed the external audit terms of engagement, the audit strategy, the proposed audit fee and the achievement of the agreed reporting timeframes for the audit of the financial statements. Reviewed the external audit reports and discussed any problems and reservations arising thereon. Reviewed the internal audit plan, methodology, functions and resources. Reviewed major findings on internal audit reports and management response. The Board Audit Committee Terms of Reference is set out below. COMPOSITION The Committee shall be appointed from amongst the Board and shall:- (i) comprises of no fewer than 3 members; (ii) a majority of the members must be independent directors; and (iii) at least one member must be a member of the Malaysian Institute of Accountants or if he is not, then he must be a person who complies with Para of the Bursa Malaysia Berhad Listing Requirements. The Chairman, who shall be elected by the members of the Committee, shall be an independent director. No alternate director may be appointed as a member of the Committee. The Board will review the terms of office and the performance of the Board Audit Committee and its members at least once every 3 years. 88 Statement OF corporate Governance

10 Sepanjang tahun kewangan, Lembaga Jawatankuasa Audit PROTON Holdings Berhad telah menjalankan aktiviti-aktiviti berikut:- (a) (b) (c) (d) (e) Membantu Lembaga Pengarah di dalam menyempurnakan tugas dan tanggungjawab mengikut dasar-dasar yang berkaitan dengan perakaunan dan laporan yang dibuat oleh Syarikat dan Kumpulan sejajar dengan Penerimaan Perakaunan Secara Am. Meneliti syarat-syarat perlantikan audit luaran, stategi audit, yuran audit yang dicadangkan dan pencapaian jangkamasa laporan audit ke atas penyata kewangan yang telah dipersetujui. Menyemak laporan-laporan audit luar dan membincangkan sebarang masalah dan perkaraperkara yang timbul. Menyemak perancangan audit dalaman, cara-cara, fungsi-fungsi dan sumber-sumber. Menyemak isu-isu utama yang dilaporkan di dalam laporan audit dalaman dan tindakbalas pengurusan. Syarat Rujukan untuk Lembaga Jawatankuasa Audit dibentangkan di bawah. KOMPOSISI Jawatankuasa ini akan dilantik dari kalangan Lembaga Pengarah dan akan:- (i) terdiri tidak kurang daripada 3 orang ahli; (ii) majoriti dari ahlinya mestilah pengarah bebas; dan (iii) sekurang-kurangnya seorang dari ahlinya adalah ahli Institut Akauntan Malaysia, jika tidak, beliau mestilah seorang yang mematuhi Para dari Syarat-syarat Penyenaraian Bursa Malaysia Berhad. Pengerusi, yang akan dilantik oleh ahli-ahli Jawatankuasa mestilah seorang pengarah bebas. Pengarah gantian tidak boleh dilantik sebagai ahli Jawatankuasa. Lembaga Pengarah akan menyemak syarat-syarat keahlian dan prestasi Lembaga Jawatankuasa Audit dan ahli-ahlinya sekurang-kurangnya sekali dalam masa 3 tahun. Statement OF corporate Governance 89 Laporan Tahunan 2005 Annual Report

11 FUNCTIONS AND DUTIES The functions and duties of the Board Audit Committee shall be to:- (a) Review and report to the Board of Directors on the following:- o with the External Auditors, the audit plan; o with the External Auditors, the External Auditor s evaluation of the system of internal controls; o with the External Auditors, the External Auditor s audit report; o the assistance given by the Company s employees to the External Auditors; o the adequacy of the scope, functions and resources of the internal audit functions and that it has the necessary authority to carry out its work, and the performance of the members of the internal audit function; o the internal audit programme, processes, the results of the internal audit programme, or investigation undertaken and whether or not appropriate action is taken by the management on the recommendations of the internal audit function; o the quarterly results and year end financial statements, prior to the approval by the Board of Directors, focusing particularly on:- (i) changes in or implementation of major accounting policy; (ii) significant and unusual events; (iii) compliance with accounting standards and other legal requirements; and (iv) accuracy and adequacy of the disclosure of information essential to a fair and full presentation of the financial affairs of the Group; o any related party and conflict of interest situation that may arise within the listed issuer or group including any transaction, procedure or course of conduct that raises questions of management integrity; o promptly report to the Bursa Malaysia on any matter reported by it to the Board of the Company which has not been satisfactorily resolved resulting in a breach of the Bursa Malaysia Listing Requirements; o submit to the Board a Report on the summary of activities of the Board Audit Committee in the discharge of its functions and responsibilities in respect of each financial year. (b) Consider the appointment of the external auditor, the audit fee and any questions of resignation and dismissal. 90 Statement OF corporate Governance

12 FUNGSI DAN TUGAS Fungsi dan tugas Lembaga Jawatankuasa Audit adalah untuk:- (a) Menyemak dan melaporkan kepada Lembaga Pengarah perkara-perkara yang berikut: o bersama dengan Juruaudit Luaran, perancangan audit; o bersama dengan Juruaudit Luaran, penilaian Juruaudit Luaran terhadap sistem kawalan dalaman; o bersama dengan Juruaudit Luaran, laporan audit dari Juruaudit Luaran; o bantuan yang diberi oleh kakitangan syarikat kepada Juruaudit Luaran; o kecukupan skop, fungsi dan sumber fungsi audit dalaman dan bahawa kuasa yang secukupnya diberi untuk meneruskan kerjanya, dan prestasi fungsi audit dalaman oleh ahlinya. o program audit dalaman, proses, keputusan program audit dalaman, proses atau penyiasatan yang telah diambil dan sama ada tindakan yang sewajarnya telah dilaksanakan oleh pihak pengurusan berdasarkan cadangan dari fungsi audit dalaman; o keputusan suku tahunan dan penyata kewangan akhir tahun, sebelum kelulusan dari Lembaga Pengarah, yang mana fokus utamanya adalah:- (i) perubahan atau perlaksanaan penting dalam polisi perakaunan; (ii) peristiwa penting dan luar biasa; (iii) pematuhan terhadap piawaian perakaunan dan lain-lain tuntutan undang-undang; dan (iv) ketepatan dan kecukupan pendedahan maklumat yang penting untuk memastikan pembentangan urusan kewangan Kumpulan yang saksama dan lengkap. o sebarang pihak berkaitan dan situasi percanggahan kepentingan faedah yang mungkin timbul di dalam penerbit tersenarai atau kumpulan termasuk sebarang urusan, prosedur atau perlaksanaan yang menimbulkan persoalan mengenai keikhlasan pengurusan; o laporan segera kepada Bursa Malaysia untuk sebarang urusan yang telah dilapor kepada Lembaga Pengarah Syarikat yang mana belum diselesaikan dengan memuaskan yang menyebabkan pengabaian terhadap Syarat-syarat Penyenaraian Bursa Malaysia; o penyerahan ringkasan laporan aktiviti Lembaga Jawatankuasa Audit kepada para Pengarah di dalam pelaksanaan fungsi dan tanggungjawab untuk setiap tahun kewangan. (b) Mempertimbangkan perlantikan juruaudit luaran, yuran audit dan sebarang persoalan mengenai perletakan jawatan dan pemecatan. Statement OF corporate Governance 91 Laporan Tahunan 2005 Annual Report

13 MEETINGS The Committee shall hold meetings on at least four occasions each year, although additional meetings may be called, as and when necessary, by the Chairman of the Committee. These meetings will usually be:- o prior to the current year s audit; o upon completion of the External Auditor s interim examination; o prior to the meeting of the full board to approve the financial statements; o prior to the announcement of the quarterly results; o upon the request of any member of the Committee or the External Auditors, the Chairman of the Committee shall convene a meeting of the Committee to consider the matters brought to its attention; o at least once a year, the Committee shall meet with the External Auditors without any Executive Directors present. ATTENDANCE In order to form a quorum in respect of a meeting of an audit committee, the majority of members present must be independent directors. The Chairman may request that directors and members of the management, the Internal Auditors and representatives of the External Auditors be present at meetings of the Committee. MINUTES The Company Secretary shall be the Secretary to the Committee and shall be present at all meetings to record minutes. Minutes of each meeting shall be prepared and entered into the books provided for the purpose and sent to the Committee members and will be made available to all Board members. The Minutes shall be signed by the Chairman of the Committee. INTERNAL AUDIT FUNCTION The Group uses the services of Group Internal Audit Division to accomplish its internal audit requirements. The Group Internal Audit Division report to the Board Audit Committee on matters concerning the Group and assists the Board of Directors in monitoring and managing risks and internal controls. The Group Internal Audit Division review internal controls in all key activities of the Group and recommend improvement in controls and procedures. The Group Internal Audit Division are independent of the activities they audit and perform with impartiality and due professional care. Findings of the Group Internal Audit Division are reported to the Board Audit Committee. 92 Statement OF corporate Governance

14 MESYUARAT Jawatankuasa Audit akan bermesyuarat sekurang-kurangnya empat kali setahun, walaupun mesyuarat tambahan boleh diadakan pada bila-bila masa mengikut budi bicara Pengerusi Jawatankuasa. Biasanya mesyuarat ini diadakan:- o sebelum audit tahunan semasa; o sebaik tamat pemeriksaan interim Juruaudit Luaran; o sebelum mesyuarat lembaga pengarah untuk meluluskan penyata-penyata kewangan; o sebelum pengumuman keputusan suku tahunan; o atas permintaan mana-mana ahli Jawatankuasa atau Juruaudit Luaran, Pengerusi Jawatankuasa akan mengadakan mesyuarat Jawatankuasa untuk menimbangkan perkaraperkara yang dibawa kepada pengetahuannya; o sekurang-kurangnya sekali setahun, Jawatankuasa akan bermesyuarat dengan Juruaudit Luaran tanpa kehadiran mana-mana Pengarah Eksekutif. KEHADIRAN Untuk membentuk kuorum bagi mesyuarat Jawatankuasa Audit, majoriti kehadiran ahli mestilah dari pengarah bebas. Pengerusi berhak meminta pengarah-pengarah dan pihak pengurusan, Juruaudit Dalaman dan wakil-wakil Juruaudit Luaran untuk hadir ke mesyuarat Jawatankuasa. MINIT Setiausaha Syarikat akan menjadi Setiausaha Jawatankuasa dan akan hadir di semua mesyuarat untuk merekodkan minit mesyuarat. Minit-minit setiap mesyuarat akan disiapkan dan direkodkan ke dalam buku yang disediakan untuk tujuan penghantaran kepada ahli Jawatankuasa dan hendaklah disediakan kepada ahli Lembaga Pengarah. Minit hendaklah ditandatangani oleh Pengerusi Jawatankuasa. FUNGSI AUDIT DALAMAN Kumpulan PROTON menggunakan khidmat Audit Dalaman Kumpulan untuk memenuhi semua keperluan audit dalaman. Audit Dalaman Kumpulan melaporkan semua perkara berkenaan Kumpulan kepada Lembaga Jawatankuasa Audit dan juga membantu Lembaga Pengarah memantau dan pengurusan risiko, serta kawalan dalaman. Audit Dalaman Kumpulan mengkaji kawalan dalaman dalam semua aktiviti utama Kumpulan sambil mencadangkan usul-usul untuk mempertingkatkan kawalan dan prosedur. Audit Dalaman Kumpulan bertindak secara bebas dalam menjalankan aktiviti-aktiviti audit, tanpa berat sebelah dan dengan cara yang profesional. Semua hasil kaji-selidik Audit Dalaman Kumpulan dilaporkan secara berterusan kepada Lembaga Jawatankuasa Audit. Statement OF corporate Governance 93 Laporan Tahunan 2005 Annual Report

15 The Board Audit Committee approves the internal audit plan of the Group Internal Audit Division each year. The scope of the internal audit covers the audits of all units and operations, including subsidiaries. During the year the Group Internal Audit Division serves to ensure control measures are adequate and effective in mitigating key risks and that they are monitored. The monitoring process will form the basis for continually improving the risk management process in the context of the Group s overall goals. In the course of auditing, the Group Internal Audit Division have identified some minor internal control weaknesses during the period, which have been or are being addressed. None of the weaknesses have resulted in any material losses, contingencies or uncertainties that would require disclosure in the Group s Annual Report. BOARD NOMINATION COMMITTEE The Board Nomination Committee reviews new director appointments of the Group and the balance and effectiveness of the boards of directors, taking into account the required mix of skills and experience and other qualities, before making recommendations to the Board. The Board Nomination Committee is made up entirely of Non-Executive Directors, with the majority consisting of Independent Non-Executive Directors as follows: No. Members Designation 1 Dato Mohammed Azlan bin Hashim Chairman Non-Independent (Appointed w.e.f. 10 March 2005) Non-Executive Director 2 Lt. Gen (R) Dato Seri Mohamed Daud Member Independent bin Abu Bakar Non-Executive Director 3 Abdul Jabbar bin Abdul Majid Member Independent Non-Executive Director 4 Badrul Feisal bin Abdul Rahim Member Non-Independent (Appointed w.e.f. 10 March 2005) Non-Executive Director 5 Abdul Kadir bin Md Kassim Member Independent (Appointed w.e.f. 10 March 2005) Non-Executive Director 6 Tan Sri A. Razak bin Ramli Non-Independent (Resigned w.e.f. 10 March 2005) Non-Executive Director 94 Statement OF corporate Governance

16 Setiap tahun, Lembaga Jawatankuasa Audit meluluskan perancangan audit dalaman oleh Audit Dalaman Kumpulan. Rangkuman kerja audit dalaman meliputi semua unit dan operasi, termasuk anak-anak syarikat. Sepanjang tahun, Audit Dalaman Kumpulan menjalankan tugas seiringan dengan pihak pengurusan demi memastikan semua tindakan kawalan mencukupi dan berkesan untuk mengatasi risiko-risiko utama, sambil memastikan ianya dipantau. Proses pemantauan akan membentuk asas yang meningkatkan proses pengurusan risiko secara berterusan, dari sudut tujuan utama Kumpulan yang menyeluruh. Semasa menjalankan tugas, Audit Dalaman Kumpulan telah mengenalpasti beberapa kelemahan dari segi kawalan dalaman semasa sesuatu tempoh, samada telah atau sedang diperbetulkan. Kelemahan-kelemahan tersebut tidak melibatkan kehilangan bahan atau ketidakpastian yang perlu dibentangkan di dalam Laporan Tahunan Kumpulan. LEMBAGA JAWATANKUASA PENCALONAN Lembaga Jawatankuasa Pencalonan mengkaji perlantikan baru untuk Kumpulan dan keseimbangan serta keberkesanan lembaga pengarah, mengambil kira gabungan jenis kemahiran dan pengalaman dan kualiti-kualiti yang lain, sebelum membuat cadangan-cadangan kepada Lembaga. Lembaga Jawatankuasa Pencalonan kesemuanya dianggotai oleh Pengarah Bukan Eksekutif, dengan majoritinya terdiri daripada Pengarah Bukan Eksekutif Bebas, seperti berikut: Bil. Ahli-ahli Jawatan 1 Dato Mohammed Azlan bin Hashim Pengerusi Pengarah Bukan (Dilantik berkuatkuasa 10 Mac 2005) Eksekutif Bukan Bebas 2 Lt. Jen (B) Dato Seri Mohamed Daud Ahli Pengarah Bukan bin Abu Bakar Eksekutif Bebas 3 Abdul Jabbar bin Abdul Majid Ahli Pengarah Bukan Eksekutif Bebas 4 Badrul Feisal bin Abdul Rahim Ahli Pengarah Bukan (Dilantik berkuatkuasa 10 Mac 2005) Eksekutif Bukan Bebas 5 Abdul Kadir bin Md Kassim Ahli Pengarah Bukan (Dilantik berkuatkuasa 10 Mac 2005) Eksekutif Bebas 6 Tan Sri A. Razak bin Ramli Ahli Pengarah Bukan (Meletak jawatan berkuatkuasa 10 Mac 2005) Eksekutif Bukan Bebas Statement OF corporate Governance 95 Laporan Tahunan 2005 Annual Report

17 BOARD REMUNERATION COMMITTEE The Board Remuneration Committee is empowered to conduct periodic reviews on the overall remuneration policy and package for the Executive and Non-Executive Directors and senior management of the Group for recommendation to the Board. The Board Remuneration Committee is made up entirely of Non-Executive Directors as follows: No. Members Designation 1 Mohammad Zainal bin Shaari Chairman Non-Independent (Appointed w.e.f. 10 March 2005) Non-Executive Director 2 Lt. Gen (R) Dato Seri Mohamed Daud Member Independent bin Abu Bakar Non-Executive Director 3 Abdul Jabbar bin Abdul Majid Member Independent Non-Executive Director 4 Badrul Feisal bin Abdul Rahim Member Non-Independent (Appointed w.e.f. 10 March 2005) Non-Executive Director 5 Dato Haji Abdul Majid bin Haji Hussein Member Non-Independent (Resigned w.e.f. 2 October 2004) Non-Executive Director 6 Md Ali bin Md Dewal Member Independent (Resigned w.e.f. 10 March 2005) Non-Executive Director BOARD RISK MANAGEMENT COMMITTEE The Board Risk Management Committee assists the Board to oversee the overall management of all risks faced by the Group s business. Further details of the activities of the Board Risk Management Committee are spelt out in the Statement of Internal Control. 96 Statement OF corporate Governance

18 LEMBAGA JAWATANKUASA IMBUHAN Lembaga Jawatankuasa Imbuhan diberi kuasa untuk menjalankan semakan berkala tentang keseluruhan pakej dan polisi imbuhan untuk Pengarah Eksekutif dan Pengarah Bukan Eksekutif dan pengurusan kanan dalam Kumpulan untuk diserahkan kepada Lembaga Pengarah. Lembaga Jawatankuasa Imbuhan diterajui seluruhnya oleh Pengarah Bukan Eksekutif seperti berikut: Bil. Ahli-ahli Jawatan 1 Mohammad Zainal bin Shaari Pengerusi Pengarah Bukan (Dilantik berkuatkuasa 10 Mac 2005) Eksekutif Bukan Bebas 2 Lt. Jen (B) Dato Seri Mohamed Daud Ahli Pengarah Bukan bin Abu Bakar Eksekutif Bebas 3 Abdul Jabbar bin Abdul Majid Ahli Pengarah Bukan Eksekutif Bebas 4 Badrul Feisal bin Abdul Rahim Ahli Pengarah Bukan (Dilantik berkuatkuasa 10 Mac 2005) Eksekutif Bukan Bebas 5 Dato Haji Abdul Majid bin Haji Hussein Ahli Pengarah Bukan (Meletak jawatan berkuatkuasa 2 Oktober 2004) Eksekutif Bukan Bebas 6 Md Ali bin Md Dewal Ahli Pengarah Bukan (Meletak jawatan berkuatkuasa 10 Mac 2005) Eksekutif Bebas LEMBAGA JAWATANKUASA PENGURUSAN RISIKO Lembaga Jawatankuasa Pengurusan Risiko dipertanggungjawabkan untuk membantu Lembaga Pengarah mengawas pengurusan dalam menghadapi risiko-risiko perniagaan Kumpulan. Butir-butir terperinci mengenai aktiviti-aktiviti Lembaga Jawatankuasa Pengurusan Risiko dinyatakan dalam Penyata Kawalan Dalaman. Statement OF corporate Governance 97 Laporan Tahunan 2005 Annual Report

19 The Board Risk Management Committee is made up entirely of Non-Executive Directors as follows: No. Members Designation 1 Mohammad Zainal bin Shaari Chairman Non-Independent (Appointed w.e.f. 10 March 2005) Non-Executive Director 2 Lt. Gen (R) Dato Seri Mohamed Daud Member Independent bin Abu Bakar Non-Executive Director 3 Dato Haji Abd. Rahim bin Haji Abdul Member Non-Independent Non-Executive Director GROUP EXECUTIVE COMMITTEE To facilitate the transition in view of the retirement of the Group CEO which will take effect on 30 September 2005, a Group Executive Committee (Group EXCO) was formed. The Group EXCO comprises 4 members, with 2 representatives from amongst the PHB Board members and 2 senior management representatives. Chairman : Dato Mohammed Azlan bin Hashim Members : Badrul Feisal bin Abdul Rahim Datuk Kisai bin Rahmat (Joint Chief Operating Officer) Datuk Kamarulzaman bin Darus (Joint Chief Operating Officer) The Group EXCO is vested with all the day-to-day powers and authority of the Group CEO in respect of decision making for PHB and its Group with effect from 26 July 2005 until such time when a new Group CEO has been identified and appointed. DIRECTORS TRAINING All Directors have successfully completed the Mandatory Accreditation Programme. Despite repeal of Bursa Securities Continuing Educational Programme with effect from 1 January 2005, the Directors will continue to identify and attend appropriate seminars and courses to keep abreast of changes in legislation and regulations affecting the Group. 98 Statement OF corporate Governance

20 Lembaga Jawatankuasa Pengurusan Risiko diterajui seluruhnya oleh Pengarah Bukan Eksekutif seperti berikut: Bil. Ahli-ahli Jawatan 1 Mohammad Zainal bin Shaari Pengerusi Pengarah Bukan (Dilantik berkuatkuasa 10 Mac 2005) Eksekutif Bukan Bebas 2 Lt. Jen (B) Dato Seri Mohamed Daud Ahli Pengarah Bukan bin Abu Bakar Eksekutif Bebas 3 Dato Haji Abd. Rahim bin Haji Abdul Ahli Pengarah Bukan Eksekutif Bukan Bebas JAWATANKUASA EKSEKUTIF KUMPULAN Berikutan persaraan CEO Kumpulan yang berkuatkuasa pada 30 September 2005, Jawatankuasa Eksekutif Kumpulan (EXCO Kumpulan) telah ditubuhkan untuk melancarkan proses peralihan kuasa. EXCO Kumpulan terdiri daripada 4 orang ahli, yang mana 2 daripadanya mewakili Lembaga Pengarah PHB dan 2 lagi mewakili pengurusan kanan. Pengerusi : Dato Mohammed Azlan bin Hashim Ahli : Badrul Feisal bin Abdul Rahim Datuk Kisai bin Rahmat (Ketua Pegawai Operasi Bersama) Datuk Kamarulzaman bin Darus (Ketua Pegawai Operasi Bersama) EXCO Kumpulan telah diberi kuasa dan tanggungjawab CEO Kumpulan, dalam melaksanakan keputusan bagi pihak PHB dan Kumpulan. Perlaksanaan ini berkuatkuasa pada 26 Julai 2005 sehingga pelantikan CEO Kumpulan yang baru diumumkan kelak. LATIHAN PARA PENGARAH Para pengarah telah pun berjaya menamatkan keseluruhan Program Pengiktirafan Mandatori. Walaupun Program Pembelajaran Berterusan Bursa Sekuriti telah ditamatkan bermula 1 Januari 2005, Para Pengarah akan terus mengenal pasti dan menghadiri seminar-seminar dan kursus-kursus yang bersesuaian bagi memastikan mereka peka akan perubahan-perubahan tentang undang-undang dan peraturan-peraturan yang melibatkan Kumpulan. Statement OF corporate Governance 99 Laporan Tahunan 2005 Annual Report

21 DIRECTORS REMUNERATION In the case of the Executive Director, the remuneration is structured to link rewards to corporate and individual performance through key performance indicators comprising fixed and performance-based rewards. The Board Remuneration Committee is responsible for reviewing the performance of the Executive Director and recommending to the Board the remuneration package and reward structure. The Board Remuneration Committee carries out reviews when appropriate and refers to remuneration surveys and consultants to assist in determining the appropriate level of reward, which is competitive and consistent with the corporate objectives. This is necessary in order to attract and retain professionals with the qualities needed to manage the Group successfully. In the case of Non-Executive Directors, the Board as a whole determines the remuneration of the Non- Executive Directors. The level of remuneration of the Non-Executive Directors reflects the experience and level of responsibilities undertaken by the Director concerned. The Non-Executive Directors are paid annual fees and attendance allowances in accordance with the number of meetings attended. In addition, the Non-Executive Directors are each provided with the use of car. Details of the total remuneration of the Directors of PROTON Holdings Berhad for the financial year ended 31 March 2005 are as follows: Directors Basic Salaries, Fees and Benefit in Total Bonus and EPF Allowance Kind Executive Director 707,215 75,617 15, ,914 Non-Executive Directors 0 499,755 40, ,916 TOTAL 707, ,372 55,243 1,337,830 Number of Directors Range of Total Remuneration Executive Non-Executive Total Below RM50,000 *2 6 8 RM50,001 RM100, RM750,001 RM800, TOTAL * Note: Two promoters who were employees of PROTON Group have resigned as directors of the company on 12 April Statement OF corporate Governance

22 IMBUHAN PARA PENGARAH Bagi Pengarah Eksekutif, imbuhan dibentuk dengan mengaitkan ganjaran korporat dan prestasi individu melalui petunjuk prestasi utama yang terdiri daripada gaji asal dan faedah-faedah dan berasaskan prestasi. Lembaga Jawatankuasa Imbuhan bertanggungjawab untuk menyemak prestasi Pengarah Eksekutif dan untuk mencadangkan kepada Lembaga Pengarah berkenaan pakej imbuhan dan struktur ganjaran. Lembaga Jawatankuasa Imbuhan akan menyemak dan bila perlu merujuk kepada kajian dan penasihat tentang imbuhan untuk membantu dalam mengenal pasti tahap ganjaran yang kompetitif dan konsisten dengan objektif korporat. Ini adalah penting untuk menarik minat dan mengekalkan para profesional dengan kualiti yang diperlukan untuk menguruskan Kumpulan dengan jayanya. Bagi Pengarah Bukan Eksekutif, Lembaga Pengarah secara keseluruhan menetapkan imbuhan Pengarah Bukan Eksekutif. Tahap imbuhan Pengarah Bukan Eksekutif mempamerkan pengalaman dan tahap tanggungjawab yang dinilai dengan pertimbangan Pengarah. Pengarah Bukan Eksekutif dibayar yuran tahunan dan elaun kehadiran selaras dengan jumlah kehadiran mesyuarat. Tambahan lagi, semua Pengarah Bukan Eksekutif diberi kereta untuk digunakan. Butiran bagi jumlah imbuhan Para Pengarah PROTON Holdings Berhad untuk tahun kewangan yang berakhir 31 Mac 2005 adalah seperti berikut: Pengarah Gaji Asas, Yuran dan Faedah dalam Jumlah Bonus dan EPF Elaun bentuk barangan Pengarah Eksekutif 707,215 75,617 15, ,914 Pengarah Bukan Eksekutif 0 499,755 40, ,916 JUMLAH 707, ,372 55,243 1,337,830 Bilangan Pengarah Pelbagai Peringkat Jumlah Imbuhan Eksekutif Bukan Eksekutif Jumlah Di bawah RM50,000 *2 6 8 RM50,001 RM100, RM750,001 RM800, JUMLAH * Nota: Dua orang penilai, yang juga kakitangan Kumpulan PROTON, telah meletak jawatan sebagai pengarah syarikat pada 12 April Statement OF corporate Governance 101 Laporan Tahunan 2005 Annual Report

23 FINANCIAL REPORTING The Board is committed to providing a balanced, clear and meaningful assessment of the financial performance and prospects of the Group to shareholders, the investor community and the regulatory authorities. Shareholders and other stakeholders are kept abreast of the Group s performance through the timely announcement of the quarterly financial results and accompanying press releases. The Board Audit Committee assists the Board to oversee the financial reporting processes and the quality of its financial reporting. Quarterly financial results and annual financial statements are reviewed by the Board Audit Committee to ensure adequacy and completeness of information prior to the Board s approval. To enhance the quality of the Group s financial reporting, the external auditors will be conducting quarterly reviews of the Group s quarterly results in addition to the year-end audit. The Board is responsible for ensuring that the Company keeps accounting records which disclose with reasonable accuracy the financial position of the Company and the Group and that the financial statements comply with the Companies Act, In preparing the financial statements, the Board has: o o o o Selected suitable accounting policies and applied them consistently; Made judgments and estimates that are reasonable and prudent; Ensured that all applicable accounting standards have been followed; and Prepared financial statements on the going concern basis as the Directors have a reasonable expectation, having made enquiries, that the Group has adequate resources to continue in operations for the foreseeable future. DIRECTORS RESPONSIBILITY STATEMENT The Board is required by the Companies Act, 1965 to ensure that financial statements prepared for each financial year have been made out in accordance with the applicable approved accounting standards and give a true and fair view of the state of affairs of the Company and the Group at the end of the financial year and of the results and cash flow of the Company and the Group for the financial year. INTERNAL CONTROLS The Board acknowledges its overall responsibility for maintaining a system of internal controls that provides assurance of effective and efficient operations and compliance with laws and regulations and also its internal procedures and guidelines. The size and complexity of the operations may give rise to risks of unanticipated or unavoidable losses. 102 Statement OF corporate Governance

24 LAPORAN KEWANGAN Lembaga Pengarah Kumpulan adalah komited dalam menyediakan laporan prestasi kewangan yang seimbang, jelas, dan bermakna kepada pemegang-pemegang saham, komuniti pelaburan dan penguatkuasa undang-undang. Pemegang-pemegang saham dan juga lain-lain pihak yang berkepentingan sentiasa dimaklumkan berhubung dengan prestasi Kumpulan melalui pengumuman laporan suku tahunan kewangan beserta dengan kenyataan akhbar. Syarikat pada akhir tahun kewangan dan keputusan serta penyata Aliran Tunai Kumpulan dan Syarikat pada tahun kewangan. Lembaga Pengarah adalah bertanggungjawab dalam memastikan setiap Rekod Kewangan dilaporkan dengan ketetapan yang munasabah mengenai kedudukan kewangan Kumpulan dan Syarikat, dan penyata kewangan tersebut telah mematuhi Akta Syarikat, Dalam menyediakan penyata kewangan, Para Pengarah telah: Lembaga Pengarah dibantu oleh Lembaga Jawatankuasa Audit untuk mengawasi proses dan kualiti laporan kewangan tersebut. Keputusan kewangan suku tahunan dan penyata kewangan tahunan disemak oleh Lembaga Jawatankuasa Audit untuk memastikan maklumat yang mencukupi dan lengkap telah disediakan sebelum ianya dikemukakan kepada Lembaga Pengarah untuk kelulusan. Untuk meningkatkan kualiti laporan Kewangan Kumpulan, juruaudit luaran akan mengadakan tinjauan suku tahun bagi keputusan suku tahunan sebagai tambahan untuk audit akhir tahun. o o o o Memilih polisi perakaunan yang sesuai dan digunapakai dengan konsisten; Menilai dan menganggarkan dengan wajar serta berhemat; Memastikan segala Piawaian Perakaunan diikuti; dan Menyediakan penyata kewangan mengikuti asas perakaunan berterusan kerana Pengarah mempunyai alasan yang munasabah bahawa Kumpulan mempunyai sumber yang mencukupi untuk meneruskan operasi pada masa akan datang. KENYATAAN TANGGUNGJAWAB PARA PENGARAH Lembaga Pengarah adalah dikehendaki mematuhi Akta Syarikat, 1965 dalam memastikan bahawa penyata kewangan tahunan yang disediakan telah dibuat selaras dengan Piawaian perakaunan yang diluluskan serta memberi pandangan yang benar dan adil mengenai keadaan hal ehwal Kumpulan dan KAWALAN DALAMAN Lembaga Pengarah adalah maklum mengenai keseluruhan tanggungjawab mereka dalam mengekalkan sistem kawalan dalaman yang menjamin operasi yang berkesan dan cekap, dan mengikut undang-undang, dan juga prosedur dalaman dan panduan-panduannya. Saiz dan kesukaran operasi mungkin akan memberi risiko yang tinggi menyebabkan kerugian luarjangka dan tidak dapat dielakkan. Statement OF corporate Governance 103 Laporan Tahunan 2005 Annual Report

25 The system of internal controls is designed to provide reasonable but not absolute assurance against the risk of material errors, frauds or losses occurring. The Board Audit Committee reviews the effectiveness of the system of internal controls, which covers financial, operational and compliance controls, and also risk management. In view of the expansion to Indonesia and other markets including addition of new companies such as MV Agusta, the Group is presently undergoing a review of the Limit of Authority to update and further enhance its control structure. RELATIONSHIP WITH AUDITORS The Board Audit Committee maintains an appropriate transparent relationship with both the Group external auditors and internal auditors. The external auditors are invited to attend Board Audit Committee meetings and present their audit findings when the Company s annual financial results are considered. The Board Audit Committee meets with the external auditors at least once a year without the presence of the Executive Director and management. DIALOGUE BETWEEN THE COMPANY AND INVESTORS The Board recognises the importance of transparency and accountability to its shareholders and investors. Different channels of communication are optimised to provide shareholders and investors with a balanced and complete view of the Group performance and the issues faced by its businesses in the competitive environment amidst a changing landscape. The issue of the Annual Report is an important medium of information for the shareholders and investors whereas the Annual General Meeting of the Company is the main forum for communication and dialogue with shareholders. Shareholders are encouraged to actively participate and interact with the Board and members of the senior management pertaining to the agenda items during the general meeting. In addition, the Chairman briefs the shareholders on the Company s operations for the financial year. Senior management and the external auditors are present to respond to the questions and queries to ensure a high level of accountability and transparency of the business goals, strategy and operations. For investors, regular dialogues are held with financial analysts and fund managers representing institutional and individual shareholders through the investor relations programme. Besides the Annual Report, the Board ensures timely announcements are made to Bursa Securities and disseminates clear, accurate and sufficient information to enable the shareholders and investors to make informed decisions. The Investor Relations Unit also proactively disseminates appropriate and relevant information to the investor community and attends to whatever queries they may have. 104 Statement OF corporate Governance

26 Sistem kawalan dalaman adalah direka untuk memberi jaminan yang munasabah tetapi bukan jaminan yang pasti terhadap risiko kesilapan yang material, penipuan, dan kerugian yang dihadapi. Lembaga Jawatankuasa Pengurusan Risiko memantau keberkesanan sistem kawalan dalaman yang meliputi kewangan, operasi, pematuhan kewangan, dan juga risiko pengurusan. Dalam peluasan operasi ke Indonesia dan pasaran-pasaran lain termasuk dengan penambahan syarikat baru seperti MV Agusta, Kumpulan kini sedang menjalankan pemantauan jumlah maksima yang diberi kuasa untuk mengemaskini dan memperbaiki struktur kawalan di samping menyeimbangkan keberkesanan tadbir urus dan operasi pada setiap masa. PERHUBUNGAN DENGAN JURUAUDIT-JURUAUDIT Lembaga Jawatankuasa Juruaudit mengekalkan hubungan yang sesuai dan telus dengan keduadua Juruaudit luaran Kumpulan dan Juruaudit dalaman. Juruaudit luaran adalah dijemput untuk menghadiri Mesyuarat Lembaga Jawatankuasa Audit apabila keputusan kewangan tahunan diambilkira. Jawatankuasa audit bertemu dengan Juruaudit luaran sekurang-kurangnya sekali setahun tanpa kehadiran Pengarah Eksekutif dan pengurusan bila mana perlu. DIALOG DENGAN KUMPULAN DAN PELABUR- PELABUR Para Pengarah maklum akan kepentingan ketelusan dan tanggungjawab kepada pemegang-pemegang saham dan para pelabur. Saluran komunikasi yang berlainan digunakan sebaiknya untuk memberikan maklumat yang lengkap dan seimbang tentang prestasi Kumpulan serta isu-isu yang dihadapi di dalam perniagaan yang kompetitif dan sering berubah. Isu tentang Laporan Tahunan adalah penting sebagai medium informasi bagi pemegangpemegang saham dan para pelabur manakala Mesyuarat Agung Tahunan Syarikat adalah forum utama bagi sesi komunikasi dan dialog dengan pemegang-pemegang saham. Pemegangpemegang saham adalah digalakkan agar aktif dalam menghadiri dan berinteraksi dengan Lembaga Pengarah dan ahli-ahli Pengurusan Kanan berkenaan dengan agenda mesyuarat tahunan. Tambahan lagi, Pengerusi akan membentangkan kepada para pemegang saham mengenai operasi syarikat untuk tahun kewangan. Pengerusi Kanan dan juruaudit luaran hadir untuk memberi respon dan pertanyaan bagi memastikan tanggungjawab yang tinggi dan ketelusan yang jitu dalam mencapai objektif, strategi dan operasi perniagaan. Bagi pelabur-pelabur, dialog-dialog sentiasa diadakan bersama penganalisa kewangan dan pengurus dana yang mewakili institusi dan pelabur-pelabur individu melalui program hubungan pelabur. Selain Laporan Tahunan, Kumpulan memastikan bahawa pengumuman yang berterusan dibuat kepada Sekuriti Bursa dan informasi yang tepat dan berpatutan disebarkan bagi memastikan pemegang-pemegang saham dan pelabur dapat membuat keputusan yang bernas. Unit Hubungan Pelabur secara proaktifnya telah menyebarkan maklumat-maklumat yang berkenaan kepada komuniti pelabur dan akan memperjelaskan apa sahaja pertanyaan yang mungkin ada. Statement OF corporate Governance 105 Laporan Tahunan 2005 Annual Report

27 NON-AUDIT FEES During the financial year, the amount of non-audit fees paid and payable to the external auditors by the Group are as follows: External Auditors RM 000 RM 000 PricewaterhouseCoopers Malaysia 1, Member firm of PricewaterhouseCoopers International Limited, 1, a separate and independent legal entity from PricewaterhouseCoopers Malaysia Total 2,836 1,268 MATERIAL CONTRACTS Neither the Company nor any of its subsidiaries have entered into any contracts which are or may be material (not being contracts entered into in the ordinary course of business) involving Directors and major shareholders interests during the financial year under review or since the end of the previous financial year. 106 Additional compliance information Maklumat tambahan tentang pematuhan

28 BAYARAN BUKAN AUDIT Sepanjang tahun kewangan, jumlah yang telah dibayar untuk bayaran bukan audit kepada firma audit luaran oleh Kumpulan adalah seperti berikut: Juruaudit Luaran RM 000 RM 000 PricewaterhouseCoopers Malaysia 1, Firma sekutu dengan PricewaterhouseCoopers International Limited, 1, yang bebas dari PricewaterhouseCoopers Malaysia Jumlah 2,836 1,268 KONTRAK-KONTRAK PENTING Syarikat atau subsidiari-subsidiarinya tidak mengikut apa-apa perjanjian yang akan atau mungkin menjadi penting (kecuali kontrak yang dimeterai dalam urusan biasa perniagaan) yang membabitkan Pengarah dan pemegang saham utama sepanjang tahun kewangan semasa atau sejak dari akhir tahun kewangan terdahulu. Additional compliance information Maklumat tambahan tentang pematuhan 107 Laporan Tahunan 2005 Annual Report

29 INTRODUCTION The Malaysian Code on Corporate Governance requires listed companies to maintain a sound system of internal control to safeguard shareholders investments and the Group s assets. Directors of listed companies are required to make disclosures in their annual reports on the state of internal control in accordance with the Revamped Listing Requirements of the Bursa Malaysia. The Bursa Malaysia s Statement on Internal Control: Guidance for Directors of Public Listed Companies ( Guidance ) provides guidance for compliance with these requirements. The Board s Internal Control Statement, which has been prepared in accordance with the Guidance, is set out below. RESPONSIBILITY The Board recognises the importance of sound internal controls and risk management practices to good corporate governance. The Board has overall responsibility for the Group s system of internal controls and for reviewing its adequacy and integrity. The Group s system of internal control is designed to manage the principal business risks that may impede the Group from achieving its business objectives. The system, by its nature, can only provide reasonable but not absolute assurance against any material loss occurrence. 108 Statement OF Internal Control PENYATA Kawalan dalaman

30 PENGENALAN Kod Tadbir Urus Korporat Malaysia menyarankan agar syarikatsyarikat yang tersenarai supaya mengendalikan dengan baik, suatu sistem kawalan dalaman yang kukuh bagi memelihara pelaburan pemegang-pemegang saham dan aset Kumpulan. Mengikut peruntukan syarat-syarat penyenaraian Bursa Malaysia Berhad, para Pengarah syarikat tersenarai perlu mendedahkan keadaan kedudukan kawalan dalaman di dalam laporan tahunan. Untuk mematuhi tuntutan tersebut, Bursa Malaysia telah memberi panduan kepada para Pengarah Syarikat Awam Tersenarai (Panduan) melalui Penyataan Bursa Malaysia terhadap Kawalan Dalaman. Penyata Kawalan Dalaman Para Pengarah yang disediakan berdasarkan Panduan tersebut adalah seperti di bawah. TANGGUNGJAWAB Lembaga Pengarah menyedari tentang kepentingan sistem kawalan dalaman dan amalan pengurusan risiko yang kukuh untuk membentuk tadbir urus korporat yang mantap. Lembaga pengarah memikul tanggungjawab seluruhnya ke atas sistem kawalan dalaman Kumpulan serta memastikan kesempurnaan dan keutuhan sistem tersebut. Sistem kawalan dalaman Kumpulan adalah direka untuk mengurus risiko-risiko utama perniagaan yang mungkin menghalang Kumpulan daripada mencapai objektif perniagaan. Oleh kerana sistem kawalan dalaman adalah direka untuk mengurus dan bukannya untuk menghapuskan risiko, maka sistem tersebut hanya dapat memberi jaminan yang munasabah dan bukan jaminan penuh terhadap sebarang kejadian merugikan. Statement OF Internal Control PENYATA Kawalan dalaman 109 Laporan Tahunan 2005 Annual Report

31 RISK MANAGEMENT FRAMEWORK The Group adopts a risk management framework that sets out the Group s underlying approach to risk management including risk policy and strategy, risk operations and systems, risk measurement; and risk organisation and culture. The Group Risk Management Unit (RMU), set up in July 2002 is responsible for monitoring the risk exposures of the Group via the respective Risk Organisations that have been formed in key operating entities within the Group. The RMU facilitates the registration of high risk events and revisits the mitigation status of high risk events on a quarterly basis. The Group RMU continues to promote Risk Management culture within the Group and has during the year rolled out a series of Risk Management Awareness Workshop and facilitated Risk Profiling sessions together with Risk Champions appointed in respective major entities within the Group except for newly formed entities during the year. Group RMU has undertaken a number of special risk assignments during the year including Gen.2 improvement and PRECISE (PROTON e-community Supplier Exchange) project. In response to the implementation issues faced in respect of a new ERP (Enterprise Resource Planning) System in a subsidiary company, Group RMU has facilitated alongside other initiatives taken by management in the identification, reporting, mitigation and continuing resolution of these issues. Further training and deployment of the Group RMU in-house developed risk management software was conducted for a period of 3 months during the year with the aim to gradually shift risk monitoring and reporting system from manual based to computer based. The Group Risk Management Committee comprises members of senior management and meets on a bimonthly basis to monitor risk management activities and control processes via risk management reports prepared by Group RMU. The Committee also provides direction to the Group RMU in carrying out its activities. The Board Risk Management Committee (BRMC) was formed in November 2003 to assist the Board in reviewing risk policies and strategies. The Committee comprises 3 non-executive directors and meets four (4) times a year at a minimum as set out in the Board Risk Management Charter. 110 Statement OF Internal Control PENYATA Kawalan dalaman

32 RANGKA KERJA PENGURUSAN RISIKO Kumpulan telah mengadaptasi rangka kerja pengurusan risiko yang membentuk pendekatan asas Kumpulan terhadap pengurusan risiko termasuk polisi dan strategi risiko, operasi risiko dan sistem, pengukuran risiko, dan organisasi dan budaya risiko. Unit Pengurusan Risiko Kumpulan (UPR) yang dibentuk pada Julai 2002 adalah bertanggungjawab untuk mengawasi pendedahan risiko Kumpulan melalui Organisasi Risiko masing-masing yang telah ditubuhkan dalam entiti operasi utama dalam Kumpulan. UPR membantu mengenal pasti kejadiankejadian berisiko tinggi dan menyemak status kejadian-kejadian berisiko tinggi sebanyak 4 kali setahun. UPR Kumpulan sentiasa mewujudkan budaya Pengurusan Risiko dalam kumpulan dan dalam setahun telah melancarkan siri Bengkel Kesedaran Pengurusan Risiko dan membantu sesi Profil Risiko bersama-sama dengan Peneraju Risiko yang telah dilantik di entiti-entiti utama masing-masing dalam Kumpulan kecuali bagi entiti-entiti yang baru dibentuk dalam tahun tersebut. UPR Kumpulan telah menjalankan beberapa tugasan risiko khas dalam setahun termasuk peningkatan Gen.2 dan projek PRECISE. Berkenaan reaksi terhadap pelbagai isu dalam pelaksanaan sistem ERP yang baru dalam syarikat subsidiari, UPR Kumpulan di samping inisiatif-inisiatif yang diambil pihak pengurusan telah mengendalikan laporan dan pengurangan isu-isu tersebut. Latihan dan penempatan perisian pengurusan risiko dalaman UPR Kumpulan yang seterusnya telah dilaksanakan untuk tempoh masa 3 bulan dalam tahun tersebut dengan matlamat untuk menukar sistem laporan dan pengawasan risiko secara berkala daripada yang berasaskan manual kepada yang berasaskan komputer. Jawatankuasa Pengurusan Risiko Kumpulan yang terdiri daripada ahli-ahli dalam pengurusan kanan dan bersidang 2 bulan sekali untuk memantau aktiviti-aktiviti pengurusan risiko dan mengawal segala proses menerusi laporan-laporan pengurusan risiko yang disediakan oleh UPR Kumpulan. Jawatankuasa juga memberi hala tuju kepada UPR Kumpulan dalam menjalankan segala aktivitinya. Lembaga Pengarah Jawatankuasa Pengurusan Risiko (LJPR) telah ditubuhkan pada November 2003 untuk membantu Lembaga Pengarah dalam mengkaji strategi-strategi dan polisi-polisi risiko. Jawatankuasa terdiri daripada 3 orang ahli pengarah bukan eksekutif dan bersidang minima 4 kali setahun seperti yang digariskan dalam Piagam Lembaga Pengarah Pengurusan Risiko. Statement OF Internal Control PENYATA Kawalan dalaman 111 Laporan Tahunan 2005 Annual Report

33 ASSURANCE MECHANISM The Board has delegated the duty of reviewing and monitoring the effectiveness of the Group s system of internal control to the Board Audit Committee (BAC). The BAC comprises a majority of independent directors meets at least on four (4) occasions each year. The BAC assumes the overall duties of reviewing with the external auditors their audit plan, audit report, as well as their findings and recommendations on internal controls highlighted annually in the Internal Control Memorandum. In addition, the BAC also reviews the adequacy of the scope, functions, audit programmes, results of internal audit and resources of Group Internal Audit Department. The department, which is further subdivided into financial audit team and operational audit teams carries out various audit activities encompassing financials, operational, process improvements and self-audit initiatives. Audit findings with recommendations for improvement are presented in audit reports, which are extended to the BAC with copies also given to management for corrective actions. In view of the expanding Group, the BAC has in its meeting convened on 11 May 2005 approved for expansion of the department with increased headcounts to strengthen the current team. OTHER KEY ELEMENTS OF INTERNAL CONTROL The other key elements of the Group s internal control systems are described below:- Defined delegation of responsibilities to committees and management of Head office and operating units, including authorisation levels for various aspects of the business which are set out in the Delegation of Financial Authority; Documented internal policies and procedures set out in the Group Policies and Procedures issued in 1998; and certification by ISO 9001:2000 of the Quality System Procedures for the Company and 2 major subsidiaries within the Group; The Board receives and reviews quarterly reports from management on key strategic and operational issues and provides direction to management; A comprehensive budgeting process where the annual budgets are approved by the Board and reviewed at mid year; Reports to the Management Committee by Group Internal Audit on the status of implementation of recommendations arising from audit findings; Monthly performance reporting to the Management Committee by key operating units covering financial performance and other key business indicators, such as staff utilisation and quality control activities. Regular visits to operating units and subsidiaries by senior management; Measurement of each department s performance against a set of common criteria via internal survey questionnaires; Continuous training efforts to enhance competency of the workforce; and Formal employee appraisal system for effective coaching and evaluation of employee performance. 112 Statement OF Internal Control PENYATA Kawalan dalaman

34 MEKANISMA JAMINAN Lembaga Pengarah telah membahagikan tugas untuk mengkaji dan memantau keberkesanan sistem kawalan dalaman Kumpulan kepada Lembaga Pengarah Jawatankuasa Audit (LPJA). LPJA yang majoritinya terdiri daripada pengarah-pengarah bebas bersidang sekurang-kurangnya 4 kali setiap tahun. LPJA mengambil alih semua tugas menyemak rancangan audit mereka dengan juruaudit-juruaudit luaran, laporan audit dan juga hasil semakan mereka dan memberi cadangan bagi kawalan dalaman yang diringkaskan secara tahunan dalam Memorandum Kawalan Dalaman. Tambahan lagi, LPJA juga meninjau skop yang lengkap, fungsi-fungsi, program-program audit, keputusan audit dalaman dan sumber-sumber Jabatan Audit Dalaman Kumpulan. Jabatan tersebut yang seterusnya dibahagikan kepada pasukan audit kewangan dan pasukan audit operasi menjalankan pelbagai aktiviti audit meliputi kewangan, operasi, peningkatan proses, inisiatif audit sendiri dan juga penyelesaian telingkah. Hasil-hasil audit bersama cadangan-cadangan untuk peningkatan dibentangkan dalam laporan audit, yang kemudian diserahkan kepada LPJA dengan salinan-salinannya diberikan kepada pihak pengurusan untuk tindakan susulan. Dalam melihat perkembangan Kumpulan, LPJA dalam mesyuarat yang dijalankan pada 11 Mei 2005 telah meluluskan pembesaran jabatan dengan penambahan bilangan kakitangan untuk menguatkan pasukan yang sedia ada. LAIN-LAIN ELEMEN PENTING KAWALAN DALAMAN Lain-lain elemen penting di dalam sistem kawalan dalaman Kumpulan adalah seperti berikut:- Pembahagian tanggungjawab yang jelas dan tersusun kepada jawatankuasa-jawatankuasa serta pengurusan Ibu Pejabat dan unit-unit operasi, termasuk had kuasa yang diberi untuk pelbagai aspek perniagaan seperti yang digariskan di dalam pembahagian Had Kuasa Kewangan; Polisi dan prosedur dalaman bertulis yang digariskan dalam Polisi dan Prosedur Kumpulan yang diluluskan dalam tahun 1998; dan prosedur Sistem Kualiti Syarikat yang telah diiktiraf dengan sijil ISO 9001:2000 untuk Syarikat dan 2 syarikat subsidiari; Lembaga Pengarah menerima dan meneliti laporan suku tahunan dari pihak pengurusan berkaitan isu-isu strategik dan operasi utama dan memberi halatuju kepada pihak pengurusan; Proses belanjawan yang lengkap dan menyeluruh di mana belanjawan tahunan diluluskan oleh Lembaga Pengarah dan disemak semula pada pertengahan tahun; Laporan kepada Jawatankuasa Pengurusan mengenai kedudukan perlaksanaan cadangan yang diambil hasil pemerhatian audit oleh Audit Dalaman Kumpulan; Laporan prestasi bulanan kepada Jawatankuasa Pengurusan oleh unit operasi utama meliputi prestasi kewangan dan lain-lain petunjuk utama perniagaan seperti penggunaan kakitangan dan aktiviti-aktiviti kawalan mutu; Lawatan kerap ke unit-unit operasi dan syarikat subsidiari oleh pihak pengurusan kanan; Pengukuran prestasi setiap jabatan berdasarkan set kriteria yang sama melalui soalan-soalan kaji selidik dalaman; Usaha latihan yang berterusan untuk menambah kecekapan tenaga kerja; Sistem penilaian pekerja yang formal bagi menilai keberkesanan latihan dan menilai prestasi pekerja. Statement OF Internal Control PENYATA Kawalan dalaman 113 Laporan Tahunan 2005 Annual Report

35 Effective Risk Management does not happen automatically. Managers in organisations must recognise the importance of this for it to be effective. PROTON has thus implemented a Risk Management Framework approach to manage the risk that is faced by the organisation. RISK MANAGEMENT FRAMEWORK Establishing controls, reporting dashboard through IT systems. Identifying risk, risk policies & guidelines development. Risk Operations and Systems Risk Policy & Strategy Risk Measurement Developing measurement tools / processes. Risk Organisation and Culture Establishing roles and responsibilities & inculcating risk culture. RISK POLICY & STRATEGY Risk policies had been developed in PROTON and its major subsidiaries to provide a basis to manage potential risk that arise from the business process and as a guide in its decision making process. 114 Risk Management PENGURUSAN RISIKO

36 Pengurusan Risiko yang berkesan tidak berlaku secara automatik. Para Pengurus dalam organisasi mesti menyedari kepentingannya untuk menjadikannya berkesan. Dengan itu, PROTON telah melaksanakan Rangka Kerja Pengurusan Risiko untuk mengurus risiko yang dihadapi oleh organisasi ini. RANGKA KERJA PENGURUSAN RISIKO Penubuhan kawalan, laporan risiko melalui sistem IT. Mengenalpasti risiko, polisi risiko & menyediakan garis panduan risiko. Operasi dan Sistem Risiko Polisi Risiko & Strategi Pengurusan Risiko Menbina alat pengukuran/ proses. Organisasi dan Budaya Risiko Mengenalpasti peranan dan tanggungjawab dan memupuk budaya kenal risiko. POLISI RISIKO & STRATEGI Polisi Risiko telah dibangunkan di PROTON dan anak syarikat utama PROTON sebagai asas untuk mengurus risiko yang mungkin berlaku yang timbul dari proses perniagaan dan sebagai panduan dalam proses membuat keputusan. Risk Management PENGURUSAN RISIKO 115 Laporan Tahunan 2005 Annual Report

37 RISK MANAGEMENT ORGANISATION BOARD OF DIRECTORS Risk Management BRMC Internal Audit BAC Liaison function GRMC GIA BRMC : Board Risk Management Committee GRMC : Group Risk Management Committee BAC : Board Audit Committee GIA : Group Internal Audit Board Risk Management Committee In recognising the importance of risk management practices to good corporate governance, the Board Risk Management Committee was formed in November 2003 to review the risk policies and strategies implemented in PROTON Group and advise the Board of Directors on significant changes to Risk Management policies and strategies. The Committee, which comprise of 3 non-executive directors meet on a quarterly basis as set out in the Board Risk Management charter. 116 Risk Management PENGURUSAN RISIKO

38 ORGANISASI PENGURUSAN RISIKO LEMBAGA PENGARAH Pengurusan Risiko BRMC Audit Dalaman BAC Fungsi perhubungan GRMC GIA BRMC : Lembaga Pengarah Jawatankuasa Pengurusan Risiko GRMC : Jawatankuasa Pengurusan Risiko Kumpulan BAC : Lembaga Pengarah Jawatankuasa Audit GIA : Audit Dalaman Kumpulan Lembaga Pengarah Jawatankuasa Pengurusan Risiko Menyedari pentingnya pengurusan risiko untuk Tadbir Urus Korporat yang berkesan, Lembaga Pengarah Jawatankuasa Pengurusan Risiko telah dibentuk pada November 2003 untuk menyemak polisi risiko dan strategi yang dilaksanakan oleh Kumpulan PROTON dan menasihati Lembaga Pengarah atas pertukaran polisi dan strategi pengurusan risiko. Ahli Jawatankuasa yang terdiri daripada 3 orang Pengarah Bukan Eksekutif bertemu setiap suku tahun seperti yang tertakluk di dalam piagam Lembaga Pengarah Pengurusan Risiko. Risk Management PENGURUSAN RISIKO 117 Laporan Tahunan 2005 Annual Report

39 Group Risk Management Committee The Group Risk Management Committee that comprise members of senior management and chaired by the General Manager, Group Finance for 2004 to 2005 financial year meet on a bi-monthly basis to analyse and evaluate the risk mitigation activities that is carried out in the Group. The Committee also provides direction to the Group Risk Management Unit to carry out its activities. Group Risk Management Unit The Group Risk Management Unit continues to monitor the risk faced by the Group via the respective Risk Management Units that have been formed in major subsidiaries except for newly formed entities during the financial year. Formal reviews on mitigation status of high risk events are performed on a quarterly basis. The Group Risk Management Unit also continues to inculcate the Risk Management culture within the Group by continuously conducting Risk Awareness and Risk Profiling programs. The Group Risk Management Unit have also facilitated Risk Assessments of the major business projects together with the respective project teams and undertaken risk assessment on special risk events, eg. ERP implementation, Gen.2 improvement program & PRECISE system. Risk Management Units of major subsidiaries The Risk Management Units of the major subsidiaries regularly prepares risk reports for their respective Board of Directors and regularly reports the mitigation status of the high risk events to Group Risk Management Committee via Group Risk Management Unit. RISK MEASUREMENT A standard Risk Management methodology has been developed and used for Risk Assessment purposes for identifying, rating and monitoring the operational risk, market risk, project risk and other risk events faced by PROTON and its major subsidiaries. RISK OPERATIONS & SYSTEM The Group Risk Management Unit is continuously conducting training on a Risk Management software developed in-house that will be used as a systematic tool for effective risk identification, rating and monitoring. 118 Risk Management PENGURUSAN RISIKO

40 Jawatankuasa Pengurusan Risiko Kumpulan Jawatankuasa Pengurusan Risiko Kumpulan dianggotai oleh pegawai kanan pengurusan dan dipengerusikan oleh Pengurus Besar, Kumpulan Kewangan untuk tahun kewangan 2004 / 2005 bermesyuarat 2 bulan sekali untuk membuat analisa dan menaksir aktiviti pengurangan risiko yang dijalankan oleh Kumpulan. Jawatankuasa ini juga memberi panduan kepada Unit Pengurusan Risiko Kumpulan untuk menjalankan aktiviti-aktivitinya. Unit Pengurusan Risiko Kumpulan Unit Pengurusan Risiko Kumpulan sentiasa mengawasi risiko yang dihadapi oleh Kumpulan menerusi Unit Pengurusan Risiko yang telah dibentuk di syarikat-syarikat ini subsidiari utama kecuali untuk entiti-entiti yang baru dibentuk dalam tahun kewangan ini. Semakan rasmi terhadap status risiko-risiko yang tinggi dijalankan 4 kali setahun. Unit Pengurusan Risiko Kumpulan juga sentiasa memupuk budaya Pengurusan Risiko di dalam Kumpulan dengan menjalankan program Penyedaran Risiko dan Profil Risiko secara berterusan. Unit Pengurusan Risiko Kumpulan juga telah mengendalikan Penilaian Risiko untuk projek perniagaan utama bersama-sama dengan ahli projek masing-masing dan mengendalikan penilaian risiko untuk risiko yang luarbiasa, contohnya perlaksanaan ERP (Perancangan Sumber Perniagaan), program peningkatan Gen.2 & sistem PRECISE. Unit Pengurusan Risiko syarikat-syarikat subsidiari utama Unit Pengurusan Risiko syarikat-syarikat subsidiari utama menyediakan laporan risiko kepada Lembaga Pengarah syarikat masing-masing dan melaporkan status pengurangan peristiwa berisiko tinggi kepada Jawatankuasa Pengurusan Risiko Kumpulan melalui Unit Pengurusan Risiko Kumpulan. PENGUKURAN RISIKO Kaedah Pengurusan Risiko yang ditetapkan telah digunakan bagi Penilaian Risiko untuk mengenalpasti, menaksir dan memantau risiko operasi, risiko pasaran, risiko projek dan risiko-risiko lain yang dihadapi oleh PROTON dan syarikat-syarikat subsidiari utama. OPERASI & SISTEM RISIKO Unit Pengurusan Risiko Kumpulan menjalankan latihan secara berterusan untuk perisian pengurusan risiko dalaman yang akan digunakan sebagai alat sistematik untuk mengenalpasti, menaksir dan mengawasi risiko secara berkesan. Risk Management PENGURUSAN RISIKO 119 Laporan Tahunan 2005 Annual Report

41 04 September Years of Service Award Ceremony for staff who serves PROTON since Anugerah Perkhidmatan 20 Tahun kepada kakitangan yang berkhidmat sejak tahun September 2004 Ceremony by Yayasan Proton in honouring children of PROTON staff who performed excellently in SPM and SRP. Majlis meraikan anak-anak pekerja PROTON yang telah berjaya dengan cemerlang di dalam SPM dan SRP September 2004 Dealers from Proton Cars Australia visiting the R&D facilities. Wakil niaga dari Proton Cars Australia melawat fasiliti R&D. 15 September 2004 Over 400 dealers nationwide acknowledged for their sales performance during Proton Edar s Dealer Convention. Upacara meraikan lebih 400 wakil-niaga dari seluruh negara di Konvensyen Wakil Jualan PROTON Edar. 27 September 2004 Visit of chief secretaries of various ministries to Proton Tanjung Malim. Lawatan ketua-ketua setiausaha dari pelbagai kementerian ke kilang Proton Tanjung Malim. 120 Corporate DIAry DIARI KORPORAT 04-05

42 27-29 September 2004 Making PROTON proud, the ICC team representing the company at the national competition. PROTON berbangga dengan pencapaian pasukan ICC yang bertanding di peringkat kebangsaan. 28 September 2004 Official announcement of the Proton Track Carnival race. Pengumuman rasmi Karnival Trek Proton October 2004 Over 60 cars raced in the inaugural Proton Track Carnival held at Pasir Gudang Racing Circuit. Lebih 60 kereta mengambil bahagian dalam Karnival Trek Proton yand diadakan buat pertama kalinya di Litar Lumba Pasir Gudang. 03 October 2004 Satria R3 was officially launched by Tengku Mahkota of Johor during the Proton Track Carnival. Satria R3 dilancarkan oleh Tengku Mahkota Johor di Karnival Trek Proton. 30 October 2004 Showcasing PROTON s engineering capabilities at the SMIDEX PROTON mempamerkan keupayaan kejuruteraannya di Pameran SMIDEX October 2004 The e-procurement system, PRECISE, enhances the operation between PROTON and its supplier community. Pelancaran PRECISE, sistem e-perolehan yang bakal meningkatkan keupayaan operasi di antara PROTON dan para pembekalnya. Corporate DIAry DIARI KORPORAT Laporan Tahunan 2005 Annual Report

43 20 November 2004 Jamuan Hari Raya to PROTON staff. Jamuan Hari Raya untuk kakitangan PROTON. 16 December 2004 Satria GTi Club annual convoy went to Koh Samui, Thailand. Konvoi tahunan Kelab Satria GTi ke Koh Samui, Thailand January 2005 Caring for the well being of our staff, monthly Health Campaign is organized by PROTON s in-house clinic. Kempen Kesihatan yang diadakan setiap bulan dianjurkan oleh klinik dalaman PROTON, menunjukkan keprihatinannya terhadap kesihatan para pekerjanya. 18 January 2005 Official handover of Tsunami Aid to the Red Cresent Society from PROTON Club, PROTON Workers Union and PROTON Edar. Majlis penyerahan sumbangan bantuan Tsunami kepada Persatuan Bulan Sabit Merah dari warga PROTON. 25 January 2005 Proton T-bikes Racing Team to compete in the Le Tour de Langkawi Pelancaran pasukan Proton T-bikes untuk bersaing di pertandingan Le Tour de Langkawi Corporate DIAry DIARI KORPORAT 04-05

44 28 January 2005 Training for PROTON Rela members which boast of over 300 personnel. Latihan untuk ahli Rela PROTON yang keahliannya menjangkau melebihi 300 anggota. 28 January 2005 Tun Dr. Mahathir Mohamad, PROTON Advisor getting a firsthand look on the progress of PROTON Centre of Excellence in Subang Jaya. Penasihat PROTON, Tun Dr. Mahathir Mohamad meninjau perkembangan Pusat Kecemerlangan PROTON di Subang Jaya January 2005 The inaugural Global CEO Conference gathered senior management of PROTON group of companies. Persidangan Ketua Pegawai Eksekutif Syarikat-syarikat dalam kumpulan PROTON buat kali pertamanya di Malaysia. 01 February 2005 PROTON once again became the official car sponsor for Le Tour de Langkawi 2005, held across 10 states throughout Malaysia. Sekali lagi PROTON berbangga menjadi kereta rasmi Pertandingan lumba basikal Le Tour de Langkawi yang diadakan di sepuluh negeri di Malaysia. 03 February 2005 Prize-giving ceremony to 5 winners of PROTON DARING TO WIN contest, who then went to UK to watch live match at Carrow Road Stadium. Penyampaian hadiah kepada 5 para pemenang peraduan PROTON DARING TO WIN untuk menonton perlawanan bolasepak liga Perdana Inggeris di Stadium Carrow Road. 21 February 2005 Promoting excellence at workplace, honouring employees who excelled, at a dinner reception. Satu majlis makan malam diadakan untuk menghargai pekerja-pekerja cemerlang. Corporate DIAry DIARI KORPORAT Laporan Tahunan 2005 Annual Report

45 26 February 2005 Official launch of Proton Tanjung Malim manufacturing facilities by YAB Dato Seri Abdullah Hj Ahmad Badawi, the Prime Minister of Malaysia. Pelancaran rasmi kilang Proton Tanjung Malim oleh YAB Dato Seri Abdullah Hj Ahmad Badawi, Perdana Menteri Malaysia. 25 March 2005 PROTON donated a washing machine to PERKOB, a welfare home, from the proceed of Norwich City FC Gala Dinner. Keprihatinan terhadap rakyat, PROTON menyumbang sebuah mesin basuh kepada PERKOB, sebuah badan kebajikan. 25 March 2005 PROTON sponsored the National Jersey Design competition. Penajaan Pertandingan merekacipta jersi kebangsaan. 27 March 2005 A bowling friendly match between the management of PROTON and the Road Transport Department. Pertandingan bowling persahabatan antara pihak pengurusan PROTON dan Jabatan Pengangkutan Jalan untuk mengeratkan silaturrahim di antara kedua pihak. 05 April 2005 Scholarship award by Yayasan Proton. Majlis penyampaian biasiswa Yayasan Proton. 124 Corporate DIAry DIARI KORPORAT 04-05

46 13 April 2005 In a move to reward staff, a scheme called Golden Corn was launched, whereby merit points are awarded. Dalam usaha memberi ganjaran kepada pekerja-pekerjanya, Skim Jagung Emas dilancarkan. 14 April 2005 Not only good in producing cars, PROTON s in-house Dikir Barat team performed for RTM s programme Salam Pantai Timur. Bakat kakitangan PROTON terserlah apabila pasukan Dikir Barat membuat rakaman untuk rancangan RTM Salam Pantai Timur. 11 May 2005 Launch of Web-PDM, provides realtime-access to engineering data by PROTON group of companies worldwide. Pelancaran Web-PDM membolehkan data teknikal dikongsi di seluruh kumpulan PROTON. 27 May 2005 Official visit by Prince H.H. Sheikh Hamid bin Zayed al-nahyan from United Arab Emirates. Lawatan rasmi Tuan Yang Terutama Sheikh Hamid bin Zayed al-nahyan dari Emiriah Arab Bersatu. 30 May-03 June 2005 Global Distributors Conference at Norwich. Persidangan Wakil Pengedar Antarabangsa Proton di Norwich. 07 June 2005 Over 100 local journalists attended the preview and test drive of Proton Savvy. Lebih 100 wakil media tempatan menghadiri sesi pandu-uji Proton Savvy. Corporate DIAry DIARI KORPORAT Laporan Tahunan 2005 Annual Report

47 08 June 2005 Official launch of Proton Savvy by Tun Dr. Mahathir Mohamad, PROTON Advisor. Perlancaran rasmi Proton Savvy oleh Tun Dr. Mahathir Mohamad, Penasihat PROTON. 12 June 2005 Certification of ISO 9001:2000 to PROTON Tanjung Malim, officiated by SIRIM and VCA UK. Pengiktirafan ISO 9001:2000 untuk kilang PROTON Tanjung Malim dari SIRIM dan VCA UK. 30 June-04 July 2005 Visit by dealers of PROTON Cars UK to Malaysia. Lawatan ke PROTON oleh wakil-wakil jualan dari UK. 01 July 2005 Presentation of Tsunami aid from Norwich City FC to students from Penang and Kedah. Sumbangan bantuan kewangan dari Norwich City FC kepada pelajar-pelajar yang terbabit dengan bencana tsunami di Pulau Pinang dan Kedah. 16 July 2005 Launch of Savvy U-Tour, an initiative to reach community in higherlearning institutions. Pelancaran Savvy U-Tour, satu usaha promosi ke institusi-institusi pengajian tinggi. 126 Corporate DIAry DIARI KORPORAT 04-05