Annual Report Survey

RMO 2020
Group: AC2206__
1.Name of the company’s annual
report (1m)
2.State the financial accounting
period year end (1m)
3.Cover Page Rationale (if any) (1m)
Search the info at the back of the
cover page. Is there any detailed
explanation on what the cover page
symbolizes?
4.Mission/Vision Statement (if any)
(1m)
Analyze the Auditor’s Report
 5.Name the external auditor (1m)
 6.Name the partner that signs
the audit report (1m)
 8.The sentences that justify the
type of auditor’s opinion as
stated above (1m)
Study the Audit Committee
Study the CSR Disclosure
13.Identify & explain any one CSR
activity reported by the company.
(3m)
Cahya Mata Sarawak’s Integrated Annual Report for Financial 2
Year 2019 (FY 2019)
31st December 2019 2
Explanation on cover page rationale: (if any) 1
The cover design of the 2019 Integrated Annual Report seeks to
conceptually convey the idea of expansion, growth and progress
emanating from a single source. With CMS representing that source,
the Group is seen to be creating waves of value as they expand
outwards from the centre.
If available, does the Mission/Vision Statement relate to: 4, 51
Mission: P – Producing Quality, On Spec & On Time
R – Respect & Integrity
I – Improving, Innovating & Investing in People
D - Delivering Sustainable Growth
E - Environmentally Conscious, Safe & Conductive
Workplace
Vision: To be the PRIDE of Sarawak & Beyond
CG Theory (If Yes, which sentence from the
Mission/Vision statement evidences
this?)
Shareholder Theory? Nil
Stakeholder Theory? By prioritising the quality of work it
undertakes in line with the Group’s mission
of ‘Producing Quality, On Spec & On Time’,
the Division continues to reinforce its
reputation as a trusted contractor within the
State.
The external auditor is: Ernst & Young PLT 6
The name of partner who signs the audit report is: LOW KHUNG 128
LEONG
Type of audit opinion given by the external auditor: Unqualified Audit 128
Report
Extract the sentences from the Auditor’s Report to reflect the type of 128
auditor’s opinion as you have stated above: In our opinion, the
accompanying financial statements give a true and fair view of the
financial position of the Group and of the Company as at 31
December 2019, and of their financial performance and their cash
flows for the year then ended in accordance with Malaysian Financial
Reporting Standards, International Financial Reporting Standards
and the requirements of the Companies Act 2016 in Malaysia.
The CSR activity for this company is ‘Doing Good & Building
Sustainable Communities’ programme. It is fuelled by employee 77
volunteerism and underlines their efforts to introduce meaningful
CSR programmes that will have a lasting positive effect on
 communities across the State.
Go to the Section on Statement on Corporate Governance or the Chairman’s Statement or any available
pages & study the following information about the BOD:

120-121
 14.BOD’s size (total number of Total number of BOD: 7
BOD) (1m)

 15.the BOD composition Composition of BOD:

(number of executive directors > Number of Executive Director: 1 (Note: The number of executive
number non-executive directors) director is initially 2. However, Y Bhg Datuk Syed Ahmad Alwee 120-121
(1m) Alsree as resigned on 18 October 2019)
Number of Non-Executive Director: 6

Is this an ideal composition? Underline your answer: Yes or No

 16.is there any declaration on
conflict of interest made by the
BOD? (Is there any statement
made by BOD stating that they
are free from conflict of
interest?) (0.5m)
Availability of BOD Declaration on Conflict of Interest: Yes or No?
If Yes, provide one statement as example.
Dato Isaac Lugun has no conflict of interest with the CMS Group,
does not have any personal interest in any business arrangement 108
involving the CMS Group and has no family relationship with any
other director and/or major shareholder of the Company.

1. What is the name of the company’s annual report?

The name of the company’s annual report is Cahya Mata Sarawak’s Integrated Annual Report
for Financial Year 2019 (FY 2019) which mentioned in page 2. (Figure 1)

2. State the financial accounting period year end.

The company’s financial accounting period year end is on 31st December 2019 as mentioned in
page 2. (Figure 2)

3. Is there any detailed explanation on what the cover page symbolizes?

Based on page 1, the cover design of the 2019 Integrated Annual Report seeks to conceptually
convey the idea of expansion, growth and progress emanating from a single source. With CMS
representing that source, the Group is seen to be creating waves of value as they expand
outwards from the centre. (Figure 3)

4. The mission and vision statement.

According to page 4, Cahya Mata Sarawak’s vision is to be the PRIDE of Sarawak & Beyond.
Besides, their mission is P.R.I.D.E where P stands for Producing Quality, On Spec & On Time,
R is for Respect & Integrity, I means Improving, Innovating & Investing in People, D stands for
Delivering Sustainable Growth and E for Environmentally Conscious, Safe & Conductive
Workplace. The statement of mission and vision from the stakeholder theory is by prioritising the
quality of work it undertakes in line with the Group’s mission of ‘Producing Quality, On Spec &
On Time’, the Division continues to reinforce its reputation as a trusted contractor within the
State. This statement can be found in page 51. As for shareholder theory, there is no
information regarding this statement. (Figure 4.1 & 4.2)

5. Name of the external auditor.

Ernst & Young PLT is the external auditor of the company as mentioned in page 6. (Figure 5)

6. Name of partner that signs the audit report.

Based on page 128, the name of partner who signs the audit report is Low Khung Leong.
(Figure 6)

7. The type of auditor’s opinion whether it is unqualified or qualified audit report.

According to page 128, Unqualified Audit Report is type of audit opinion given by the external
auditor. (Figure 7)

8. In our opinion, the accompanying financial statements give a true and fair view of the financial
position of the Group and of the Company as at 31 December 2019, and of their financial
performance and their cash flows for the year then ended in accordance with Malaysian
Financial Reporting Standards, International Financial Reporting Standards and the
requirements of the Companies Act 2016 in Malaysia.

9. The Audit Committee should comprise solely of Independent Directors (MCCG 2017)

Is the composition of Audit Committee of the company follows as what is stated in

MCCG2017? (1m) 120
Underline your answer: Yes or No

10. State the composition of executive & independent non-executive directors that make
up the Audit Committee. 120

Composition of Audit Committee:

Number of Executive Director: 0

Number of Independent Non-Executive Director: 3

11.Identify the qualifications of audit committee members (1m) 106-112

State the type/s of academic/professional qualification the members of audit committee:

1. A fellow of The Association of Chartered Certified Accountant

2. Member of The Malaysian Institute of Accountants
1. Bachelor of Business
3. Master of Finance

12.List other BOD Committees/Management Committees in the company (3m)

BOD Committee/s other than the Audit Committee:

1. Nomination & Remuneration Committee

2. Group Risk Committee

3. Digital Transformation Committee

13. Identify & explain any one CSR activity reported by the company.

As mentioned in page 77, the Corporate Social Responsibility (CSR) activity for Cahya Mata
Sarawak is ‘Doing Good & Building Sustainable Communities’ programme. It is fuelled by
employee volunteerism and underlines their efforts to introduce meaningful CSR programmes
that will have a lasting positive effect on communities across the State. Their “CMS Doing
Good” Facebook page which was created on 16 February 2019 demonstrates the good work
that has been done. The Facebook page not only helps to showcase CMS's CSR activities, but
aims to promote their initiatives as created content and curate great CSR initiatives and stories
from Malaysia and around the world. The latest post from “CMS Doing Good” page is
showcasing 60 volunteers carrying out maintenance work on the untended parking area of BEM
Church in Sungai Klampai. As we can see, CMS is up to date with their postings which can help
to inspire and encourage people to follow suit. (Figure 13.1)

14. What is the total number of Board of Director?

In the Governance Framework page 120 and 121, the total number of Board of Directors (BOD)
are seven (7) directors which are Chin Mui Khiong, Umang Nangku Jabu, Yang Bahagia Datu
Jubert Thian Chong Hui, Yang Bahagia Tan Sri Abdul Rasyid Bin Abdul Manaf, Yang Bahagia
Datuk Seri Yam Kong Choy, Yang Bahagia Dato Isaac Lugun and Yang Bahagia Dato Sri
Mahmud Abu Bekir Taib (Figure 14.1)

15. What is the BOD composition?

According to page 120 and 121, the Board of Directors consists of one (1) executive director
(Yang Bahagia Dato Isaac Lugun) and six (6) non-executive directors (Chin Mui Khiong, Umang
Nangku Jabu, Yang Bahagia Datu Jubert Thian Chong Hui, Yang Bahagia Tan Sri Abdul Rasyid
Bin Abdul Manaf, Yang Bahagia Datuk Seri Yam Kong Choy and Yang Bahagia Dato Sri
Mahmud Abu Bekir Taib). There were initially two (2) executive directors. However, Yang
Bahagia Datuk Syed Ahmad Alwee Alsree has resigned on 18 October 2019 which leaves CMS
to only one (1) executive director. This is considered as an ideal composition of board of
directors as an average of seven (7) to ten (10) directors are enough to staff a company.
(Figure 14.1)

16. Is there any statement made by BOD stating that they are free from conflict of
interest?
There is a statement in page 108 made by BOD stating that they are free from conflict of
interest. One of the statements are “Dato Isaac Lugun has no conflict of interest with the CMS
Group, does not have any personal interest in any business arrangement involving the CMS
Group and has no family relationship with any other director and/or major shareholder of the
Company.” (Figure 16.1)

17. How much is the remuneration of the BOD?

Based on the disclosure mention in page 126 of the annual report, the remuneration of the
Board on named basis and in bands, that is set out in Note 10 of the audited financial
statements for the year ended 31 December 2019, the highest remuneration is received by the
executive director, Datuk Syed Ahmad Alwee Alsree. However, the remuneration is not for the
period of twelve (12) months as he has resigned on 18 October 2019. (Figure 17 and 17.1)

18. The attendance to board meeting.

Based on the attendance record disclosed in the annual report on page 122 (Figure 18), it
shows that every director complies with Bursa Malaysia Listing Requirements but not all
directors met the requirement of Bank Negara Malaysia guideline that mention that a director
must attend at least 75% of the board meetings held in each financial year and must not appoint
another person to attend or participate in a board meeting on his behalf such as an alternate
director. The group chairman who is also the Independent Non-Executive Director, Yang
Berbahagia Tan Sri Abdul Rashid Bin Abdul Manaf and Non-Independent Non-Executive
Directors Yang Berbahagia Dato Sri Mahmud Abu Bekir Taib both had only attended 5 out of 7
meeting during the year 2019 which is equivalent to 71.42% of attendance. However, the rest of
the board members recorded full attendance to board meeting during the year 2019. Two of the
Independent Non-Executive Directors who recorded attendance of 100% are Yang Bahagia
Datuk Seri Yam Kong Choy and Mr Chin Mui Khion.

19. Is there any BOD that is ‘kaki ponteng?

Based on the attendance disclosed in the annual report page 122(Figure 18), all board
members had attended at least 5 meeting which is more than half of total meeting throughout
the years. Thus, none of the board members are truant.

20. Is the duality role applicable?

It is disclosed in the annual report page 22 (Figure 20.1), that the new structure of Cahya Mata
Sarawak does not include the role of Chief Executive Officer. Thus, the duality role is not
applicable in Cahya Mata Sarawak as the Chairman of Cahya Mata Sarawak, Yang Berbahagia
Tan Sri Abdul Rashid Bin Abdul Manaf is not the Chief Executive Officer of the company.

Appendices

Figure 1: Name of company’s annual report Figure 2: Financial accounting period year
end

Figure 3: Cover page

symbolizes.

Figure 4: Mission &

Vision
 Figure 4.2: Stakeholder theory Figure 5: Framework
Framework

Figure 6: Name of partner that signs Figure 7: Type of auditor’s opinion

the audit report. Framework
 Question 13

Figure 13: CSR Activity

Question 14 and 15

Figure 14: Governance Framework on Board of Directors

Question 16
 Figure 16 Free from Conflict of Interest Statement

Question 17

Figure 17 Board Remuneration

Framework

Figure 17.1 Notes to the Financial Statements For the financial year ended 31
December 2019 (Page 73 of Audited Financial Statements for The Year Ended 2019)
 Question 18 and 19

Figure 18 Attendance at Board and Committee Meetings

Question 20

12
Figure 20 Table of Company Structure

13