statement of corporate governance -...

80 Statement OF corporate GovernancePENYATA Tadbir urus korporat

P R O T O N H O L D I N G S B E R H A D

The Board is committed to applying the recommendations ofthe Malaysian Code on Corporate Governance to ensure thatgood corporate governance is practiced throughout theGroup to effectively discharge its responsibilities to protectand enhance shareholder value.

Set out below is a statement on how the Group has applied theprinciples 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, theBoard 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 riskmanagement processes.

The Group Chief Executive Officer (Group CEO) on the other hand is responsible for the implementation ofbroad policies approved by the Board and reports and discusses material matters including regulatorydevelopments and strategic projects to the Board. There is therefore a natural separation of managementand 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 theGroup CEO.

81Statement OF corporate GovernancePENYATA Tadbir urus korporat

L a p o r a n T a h u n a n 2 0 0 5 A n n u a l R e p o r t

Lembaga Pengarah berusaha untuk menggunapakai cadangan-cadangan dalam Kod Tadbir Urus Korporat Malaysia untukmemastikan agar tadbir urus korporat yang baik diamalkandalam Kumpulan bagi pelaksanaan tanggungjawabnya denganberkesan untuk melindungi dan meningkatkan nilaipemegang saham.

Dinyatakan di bawah ialah penyata tentang bagaimanaKumpulan telah menggunapakai prinsip-prinsip Kod Tadbir UrusKorporat Malaysia.

AHLI LEMBAGA PENGARAH

Ahli-ahli Lembaga Pengarah berusaha ke arah mewujudkan dan meningkatkan nilai pemegang sahamdalam jangka masa panjang. Sehingga kini, ahli-ahli Lembaga Pengarah adalah bertanggungjawabkepada strategi keseluruhan Kumpulan, polisi pembelian dan penjualan, perbelanjaan modal, belanjawantahunan, semakan prestasi kewangan dan operasi, serta kawalan dalaman dan proses pengurusan risiko.

Ketua Pegawai Eksekutif Kumpulan (CEO Kumpulan) pula adalah bertanggungjawab untuk melaksanakanpolisi-polisi yang meluas yang diluluskan oleh Lembaga Pengarah, melapor dan membincangkan perkara-perkara penting termasuklah penguatkuasaan baru dan projek-projek yang strategik kepada LembagaPengarah. Dengan itu pengasingan semulajadi dalam pengurusan dan tadbir urus membawa kepadakeseimbangan kuasa dan hak.

Berikutan persaraan CEO Kumpulan yang berkuatkuasa pada 30 September 2005, Jawatankuasa EksekutifKumpulan (EXCO Kumpulan) telah ditubuhkan untuk melancarkan proses peralihan kuasa. EXCOKumpulan bertanggungjawab untuk membuat keputusan yang berkaitan dengan perlaksanaan operasidan hala-tuju syarikat.



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.



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.



The Board on 25 July 2005 had resolved not torenew the contract for service of the Group CEO.Under the terms of the current arrangements, theGroup CEO’s contract for service would end on 30 September 2005. The Group CEO has been onleave since 26 July 2005.

Board meetings for a particular year are scheduledin advance before the start of each calendar year.Additional meetings are convened whenevernecessary.

BOARD COMPOSITION AND BALANCE

The Board consists of 8 members with the Chairmanwho is a Non-Independent Non-Executive Director,3 Non-Independent Non-Executive Directors, 3Independent Non-Executive Directors and anExecutive Director who is the Group CEO.

As in the previous year, Abdul Jabbar bin AbdulMajid is the Company’s Senior IndependentDirector to whom concerns pertaining to the Groupmay be conveyed by shareholders and the public.

INDEPENDENCE AND CONFLICT OF INTEREST

The Directors are required to make writtendeclarations and it is their responsibility to declarewhether they have a potential or actual conflict ofinterest in any transaction. Where issues involveconflict of interest, the interested Directors abstainfrom discussing or voting on the matter.

SUPPLY OF INFORMATION

In general, board papers and minutes of previousmeetings of the Board and Board Committeesincluding minutes of board meetings of subsidiarycompanies are circulated in advance to the Boardbefore a board meeting.

Senior management as well as professionals andexternal advisors are from time to time invited toattend board meetings.

The Board has access to the Company Secretarywho is available to provide the Directors with theappropriate advice and services and also to ensurethat the relevant procedures are followed.

POLICY ON DIRECTOR APPOINTMENTS

The Board Nomination Committee reviews all newappointments by taking into consideration the skillsets required by the Company and the Group.

New directors are required to undergofamiliarisation programmes, plant visits and briefingsto get a better understanding of the PROTONGroup, its operations and the automotive industry.

The Board Nomination Committee annually reviews themix of skills and experience of the Directors to ensurethat the Board has the right balance and effectiveness.

RE-ELECTION OF DIRECTORS

All Directors including the Executive Director aresubject to retirement by rotation at least once inevery 3 years and are eligible for re-election. Inaccordance with the Articles of Association, 1/3 ofthe Directors shall retire from office at each AnnualGeneral Meeting.



Pada 25 Julai 2005, Lembaga Pengarah telahbersetuju untuk tidak memperbaharui kontrakperkhidmatan CEO Kumpulan. Berdasarkanterma semasa, kontrak perkhidmatan CEOKumpulan akan tamat pada 30 September2005. CEO Kumpulan telah bercuti sejak 26 Julai2005 hingga akhir tarikh perkhidmatan pada 30 September 2005.

Mesyuarat Lembaga Pengarah untuk tahuntertentu dijadualkan terlebih dahulu sebelumbermulanya setiap tahun takwim. Mesyuarattambahan akan diadakan bila mana perlu.

KOMPOSISI DAN KESEIMBANGAN AHLILEMBAGA PENGARAH

Lembaga Pengarah terdiri daripada 8 ahlidengan Pengerusi sebagai Pengarah BukanEksekutif Bukan Bebas, 3 Pengarah BukanEksekutif Bukan Bebas, 3 Pengarah BukanEksekutif Bebas dan seorang Pengarah Eksekutifsebagai CEO Kumpulan.

Seperti tahun sebelumnya, sebarangpertanyaan oleh para pemegang saham danorang awam mengenai Kumpulan boleh dirujukkepada Abdul Jabbar bin Abdul Majid,Pengarah Kanan Bebas Syarikat.

KEBEBASAN DAN PERCANGGAHANKEPENTINGAN

Para Pengarah adalah dituntut untuk membuatkenyataan bertulis dan bertanggungjawab untukmenyatakan sama ada mereka mungkin atautelah mempunyai percanggahan kepentingandalam apa-apa transaksi. Di mana isu-isumembabitkan percanggahan kepentingan,Pengarah yang berkepentingan adalah dihalangdaripada terlibat dalam perbincangan ataupengundian ke atas perkara tersebut.

PENYAMPAIAN MAKLUMAT

Secara amnya, laporan Lembaga Pengarahyang mengandungi maklumat dan minit-minitmesyuarat Lembaga Pengarah danJawatankuasa-jawatankuasa LembagaPengarah yang sebelumnya termasuk minit-minit mesyuarat anak-anak syarikat diedarkanterlebih dahulu kepada ahli-ahli LembagaPengarah sebelum mesyuarat LembagaPengarah diadakan.

Pengurusan kanan dan juga para profesionaldan penasihat luar adalah dijemput untukmenghadiri mesyuarat Lembaga Pengarah.

Lembaga Pengarah boleh menghubungiSetiausaha Syarikat untuk mendapatkan nasihatdan perkhidmatan dan untuk memastikanprosedur-prosedur yang relevan diikuti.

POLISI PERLANTIKAN LUARAN

Lembaga Jawatankuasa Pencalonan mengkajisemua perlantikan baru dengan mengambil kiraset kemahiran yang diperlukan oleh Syarikatdan Kumpulan.

Para pengarah baru adalah dituntut untukmengikuti program-program penyesuaian,lawatan ke kilang dan taklimat untukmendapatkan lebih maklumat tentang KumpulanPROTON, operasinya dan industri otomotif.

Lembaga Jawatankuasa Pencalonan akanmengkaji kemahiran-kemahiran danpengalaman yang perlu pada para pengarahuntuk memastikan Lembaga Pengarah adalahseimbang dan berkesan.



Any new appointed director shall hold office only untilthe next Annual General Meeting of the Companyand shall be eligible for re-election under Article 111.

The following Directors shall retire by rotation at theforthcoming Annual General Meeting of PROTONHoldings Berhad and have offered themselves forre-election:

1 Dato’ Mohammed Azlan bin Hashim2 Mohammad Zainal bin Shaari3 Abdul Kadir bin Md Kassim4 Badrul Feisal bin Abdul Rahim

BOARD COMMITTEES

The Board has delegated specific responsibilities to5 sub-committees, namely Board Audit, BoardNomination, Board Remuneration, Board RiskManagement and Group Executive Committees.The Committees have the authority to examinespecific issues and report to the Board with theirrecommendations. The responsibility of decisions onall 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 thefinancial year ended 31 March 2005 were as follows:

No. Members Designation Meeting Attendance

1 Abdul Jabbar bin Abdul Majid Chairman – Independent 7/7Non-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 7/7bin 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.



PERLANTIKAN SEMULA PENGARAH

Para Pengarah termasuk Pengarah Eksekutiftertakluk kepada perlantikan semula mengikutturutan sekurang-kurangnya sekali untuk setiaptiga tahun dan layak untuk perlantikan semula.Mengikut Artikel Syarikat, 1/3 daripada pengarahakan bersara dari tugas dan tanggungjawabnyapada setiap Mesyuarat Agung Tahunan. Mana-mana Pengarah baru yang dilantik hanya akan menjalankan tugas dantanggungjawabnya sehingga Mesyuarat Agungyang seterusnya dan layak untuk perlantikansemula di bawah Artikel 111.

Berikut adalah senarai pengarah yang akanbersara pada Mesyuarat Agung PROTONHoldings Berhad yang akan datang dan telahmenawarkan diri untuk perlantikan semula:-

1 Dato’ Mohammed Azlan bin Hashim2 Mohammad Zainal bin Shaari3 Abdul Kadir bin Md Kassim4 Badrul Feisal bin Abdul Rahim

JAWATANKUASA-JAWATANKUASA LEMBAGAPENGARAH

Lembaga Pengarah telah membahagikantanggungjawab tertentu kepada 5 kategorijawatankuasa iaitu Lembaga JawatankuasaAudit, Lembaga Jawatankuasa Imbuhan,Lembaga Jawatankuasa Pencalonan, LembagaJawatankuasa Pengurusan Risiko danJawatankuasa Eksekutif Kumpulan. Jawatankuasaini mempunyai kuasa untuk meneliti isu-isu yangkhusus dan melaporkan cadangan-cadanganmereka kepada Lembaga Pengarah.Tanggungjawab untuk membuat keputusan akhirdi dalam semua hal terletak sepenuhnya ditangan Lembaga Pengarah.

LEMBAGA JAWATANKUASA AUDIT

Lembaga Jawatankuasa Audit dianggotai oleh ahli-ahli dengan rekod kehadiran masing-masinguntuk tahun kewangan berakhir 31 Mac 2005 seperti berikut:

Bil. Ahli-ahli Jawatan Kehadiran Mesyuarat

1 Abdul Jabbar bin Abdul Majid Pengerusi – Pengarah 7/7Bukan 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 7/7bin 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.



During the financial year, the Board Audit Committee of PROTON Holdings Berhad undertook the followingactivities:

(a) Assist the Board in discharging its statutory duties and responsibilities relating to accounting andreporting practice of the Company and the Group in accordance with Generally AcceptedAccounting Practices.

(b) Reviewed the external audit terms of engagement, the audit strategy, the proposed audit fee andthe achievement of the agreed reporting timeframes for the audit of the financial statements.

(c) Reviewed the external audit reports and discussed any problems and reservations arising thereon.(d) Reviewed the internal audit plan, methodology, functions and resources.(e) 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. 15.10 of the Bursa Malaysia Berhad ListingRequirements.

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 itsmembers at least once every 3 years.



Sepanjang tahun kewangan, Lembaga Jawatankuasa Audit PROTON Holdings Berhad telahmenjalankan aktiviti-aktiviti berikut:-

(a) Membantu Lembaga Pengarah di dalam menyempurnakan tugas dan tanggungjawabmengikut dasar-dasar yang berkaitan dengan perakaunan dan laporan yang dibuat olehSyarikat dan Kumpulan sejajar dengan Penerimaan Perakaunan Secara Am.

(b) Meneliti syarat-syarat perlantikan audit luaran, stategi audit, yuran audit yang dicadangkan danpencapaian jangkamasa laporan audit ke atas penyata kewangan yang telah dipersetujui.

(c) Menyemak laporan-laporan audit luar dan membincangkan sebarang masalah dan perkara-perkara yang timbul.

(d) Menyemak perancangan audit dalaman, cara-cara, fungsi-fungsi dan sumber-sumber.(e) 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. 15.10 dari Syarat-syarat Penyenaraian BursaMalaysia 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 JawatankuasaAudit dan ahli-ahlinya sekurang-kurangnya sekali dalam masa 3 tahun.



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 theinternal audit function;

o the internal audit programme, processes, the results of the internal audit programme, orinvestigation undertaken and whether or not appropriate action is taken by the managementon the recommendations of the internal audit function;

o the quarterly results and year end financial statements, prior to the approval by the Board ofDirectors, 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 managementintegrity;

o promptly report to the Bursa Malaysia on any matter reported by it to the Board of theCompany which has not been satisfactorily resolved resulting in a breach of the Bursa MalaysiaListing Requirements;

o submit to the Board a Report on the summary of activities of the Board Audit Committee in thedischarge 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 anddismissal.



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 olehahlinya.

o program audit dalaman, proses, keputusan program audit dalaman, proses ataupenyiasatan yang telah diambil dan sama ada tindakan yang sewajarnya telahdilaksanakan oleh pihak pengurusan berdasarkan cadangan dari fungsi audit dalaman;

o keputusan suku tahunan dan penyata kewangan akhir tahun, sebelum kelulusan dariLembaga 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, proseduratau perlaksanaan yang menimbulkan persoalan mengenai keikhlasan pengurusan;

o laporan segera kepada Bursa Malaysia untuk sebarang urusan yang telah dilapor kepadaLembaga Pengarah Syarikat yang mana belum diselesaikan dengan memuaskan yangmenyebabkan pengabaian terhadap Syarat-syarat Penyenaraian Bursa Malaysia;

o penyerahan ringkasan laporan aktiviti Lembaga Jawatankuasa Audit kepada paraPengarah di dalam pelaksanaan fungsi dan tanggungjawab untuk setiap tahunkewangan.

(b) Mempertimbangkan perlantikan juruaudit luaran, yuran audit dan sebarang persoalanmengenai perletakan jawatan dan pemecatan.



MEETINGS

The Committee shall hold meetings on at least four occasions each year, although additional meetings maybe 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 presentmust 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 torecord minutes.

Minutes of each meeting shall be prepared and entered into the books provided for the purpose and sentto the Committee members and will be made available to all Board members. The Minutes shall be signedby 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 Groupand 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 recommendimprovement in controls and procedures. The Group Internal Audit Division are independent of the activitiesthey audit and perform with impartiality and due professional care. Findings of the Group Internal AuditDivision are reported to the Board Audit Committee.



MESYUARAT

Jawatankuasa Audit akan bermesyuarat sekurang-kurangnya empat kali setahun, walaupunmesyuarat tambahan boleh diadakan pada bila-bila masa mengikut budi bicara PengerusiJawatankuasa. 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 perkara-perkara yang dibawa kepada pengetahuannya;

o sekurang-kurangnya sekali setahun, Jawatankuasa akan bermesyuarat dengan JuruauditLuaran tanpa kehadiran mana-mana Pengarah Eksekutif.

KEHADIRAN

Untuk membentuk kuorum bagi mesyuarat Jawatankuasa Audit, majoriti kehadiran ahli mestilah daripengarah bebas. Pengerusi berhak meminta pengarah-pengarah dan pihak pengurusan, JuruauditDalaman dan wakil-wakil Juruaudit Luaran untuk hadir ke mesyuarat Jawatankuasa.

MINIT

Setiausaha Syarikat akan menjadi Setiausaha Jawatankuasa dan akan hadir di semua mesyuaratuntuk merekodkan minit mesyuarat.

Minit-minit setiap mesyuarat akan disiapkan dan direkodkan ke dalam buku yang disediakan untuktujuan penghantaran kepada ahli Jawatankuasa dan hendaklah disediakan kepada ahli LembagaPengarah. Minit hendaklah ditandatangani oleh Pengerusi Jawatankuasa.

FUNGSI AUDIT DALAMAN

Kumpulan PROTON menggunakan khidmat Audit Dalaman Kumpulan untuk memenuhi semuakeperluan audit dalaman. Audit Dalaman Kumpulan melaporkan semua perkara berkenaanKumpulan kepada Lembaga Jawatankuasa Audit dan juga membantu Lembaga Pengarahmemantau dan pengurusan risiko, serta kawalan dalaman.

Audit Dalaman Kumpulan mengkaji kawalan dalaman dalam semua aktiviti utama Kumpulan sambilmencadangkan usul-usul untuk mempertingkatkan kawalan dan prosedur. Audit Dalaman Kumpulanbertindak secara bebas dalam menjalankan aktiviti-aktiviti audit, tanpa berat sebelah dan dengancara yang profesional. Semua hasil kaji-selidik Audit Dalaman Kumpulan dilaporkan secaraberterusan kepada Lembaga Jawatankuasa Audit.



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 andeffective in mitigating key risks and that they are monitored. The monitoring process will form the basis forcontinually 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 controlweaknesses during the period, which have been or are being addressed. None of the weaknesses haveresulted in any material losses, contingencies or uncertainties that would require disclosure in the Group’sAnnual Report.

BOARD NOMINATION COMMITTEE

The Board Nomination Committee reviews new director appointments of the Group and the balance andeffectiveness of the boards of directors, taking into account the required mix of skills and experience andother qualities, before making recommendations to the Board.

The Board Nomination Committee is made up entirely of Non-Executive Directors, with the majorityconsisting 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 – Independentbin 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



Setiap tahun, Lembaga Jawatankuasa Audit meluluskan perancangan audit dalaman oleh AuditDalaman Kumpulan. Rangkuman kerja audit dalaman meliputi semua unit dan operasi, termasukanak-anak syarikat.

Sepanjang tahun, Audit Dalaman Kumpulan menjalankan tugas seiringan dengan pihak pengurusandemi memastikan semua tindakan kawalan mencukupi dan berkesan untuk mengatasi risiko-risikoutama, sambil memastikan ianya dipantau. Proses pemantauan akan membentuk asas yangmeningkatkan proses pengurusan risiko secara berterusan, dari sudut tujuan utama Kumpulan yangmenyeluruh.

Semasa menjalankan tugas, Audit Dalaman Kumpulan telah mengenalpasti beberapa kelemahandari segi kawalan dalaman semasa sesuatu tempoh, samada telah atau sedang diperbetulkan.Kelemahan-kelemahan tersebut tidak melibatkan kehilangan bahan atau ketidakpastian yang perludibentangkan di dalam Laporan Tahunan Kumpulan.

LEMBAGA JAWATANKUASA PENCALONAN

Lembaga Jawatankuasa Pencalonan mengkaji perlantikan baru untuk Kumpulan dan keseimbanganserta keberkesanan lembaga pengarah, mengambil kira gabungan jenis kemahiran dan pengalamandan 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

BOARD REMUNERATION COMMITTEE

The Board Remuneration Committee is empowered to conduct periodic reviews on the overallremuneration policy and package for the Executive and Non-Executive Directors and senior managementof the Group for recommendation to the Board.

The Board Remuneration Committee is made up entirely of Non-Executive Directors as follows:


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 risksfaced by the Group’s business. Further details of the activities of the Board Risk Management Committeeare spelt out in the Statement of Internal Control.





LEMBAGA JAWATANKUASA IMBUHAN

Lembaga Jawatankuasa Imbuhan diberi kuasa untuk menjalankan semakan berkala tentangkeseluruhan pakej dan polisi imbuhan untuk Pengarah Eksekutif dan Pengarah Bukan Eksekutif danpengurusan kanan dalam Kumpulan untuk diserahkan kepada Lembaga Pengarah.

Lembaga Jawatankuasa Imbuhan diterajui seluruhnya oleh Pengarah Bukan Eksekutif seperti berikut:


1 Mohammad Zainal bin Shaari Pengerusi – Pengarah Bukan (Dilantik berkuatkuasa 10 Mac 2005) Eksekutif Bukan 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 LembagaPengarah mengawas pengurusan dalam menghadapi risiko-risiko perniagaan Kumpulan. Butir-butirterperinci mengenai aktiviti-aktiviti Lembaga Jawatankuasa Pengurusan Risiko dinyatakan dalamPenyata Kawalan Dalaman.



The Board Risk Management Committee is made up entirely of Non-Executive Directors as follows:


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 September2005, 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 ofdecision making for PHB and its Group with effect from 26 July 2005 until such time when a new GroupCEO has been identified and appointed.

DIRECTORS’ TRAINING

All Directors have successfully completed the Mandatory Accreditation Programme. Despite repeal of BursaSecurities’ Continuing Educational Programme with effect from 1 January 2005, the Directors will continueto identify and attend appropriate seminars and courses to keep abreast of changes in legislation andregulations affecting the Group.



Lembaga Jawatankuasa Pengurusan Risiko diterajui seluruhnya oleh Pengarah Bukan Eksekutif sepertiberikut:


1 Mohammad Zainal bin Shaari Pengerusi – Pengarah Bukan (Dilantik berkuatkuasa 10 Mac 2005) Eksekutif Bukan Bebas


3 Dato’ Haji Abd. Rahim bin Haji Abdul Ahli – Pengarah Bukan EksekutifBukan Bebas

JAWATANKUASA EKSEKUTIF KUMPULAN

Berikutan persaraan CEO Kumpulan yang berkuatkuasa pada 30 September 2005, JawatankuasaEksekutif Kumpulan (EXCO Kumpulan) telah ditubuhkan untuk melancarkan proses peralihan kuasa.EXCO Kumpulan terdiri daripada 4 orang ahli, yang mana 2 daripadanya mewakili LembagaPengarah PHB dan 2 lagi mewakili pengurusan kanan.

Pengerusi : Dato’ Mohammed Azlan bin HashimAhli : 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 melaksanakankeputusan bagi pihak PHB dan Kumpulan. Perlaksanaan ini berkuatkuasa pada 26 Julai 2005sehingga 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 yangbersesuaian bagi memastikan mereka peka akan perubahan-perubahan tentang undang-undang danperaturan-peraturan yang melibatkan Kumpulan.



DIRECTORS’ REMUNERATION

In the case of the Executive Director, the remuneration is structured to link rewards to corporate andindividual performance through key performance indicators comprising fixed and performance-basedrewards. The Board Remuneration Committee is responsible for reviewing the performance of the ExecutiveDirector and recommending to the Board the remuneration package and reward structure. The BoardRemuneration Committee carries out reviews when appropriate and refers to remuneration surveys andconsultants to assist in determining the appropriate level of reward, which is competitive and consistentwith the corporate objectives. This is necessary in order to attract and retain professionals with the qualitiesneeded 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 andlevel of responsibilities undertaken by the Director concerned. The Non-Executive Directors are paid annualfees and attendance allowances in accordance with the number of meetings attended. In addition, theNon-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 ended31 March 2005 are as follows:

Directors Basic Salaries, Fees and Benefit in Total Bonus and EPF Allowance Kind

Executive Director 707,215 75,617 15,082 797,914

Non-Executive Directors 0 499,755 40,161 539,916

TOTAL 707,215 575,372 55,243 1,337,830

Number of Directors

Range of Total Remuneration Executive Non-Executive Total

Below RM50,000 *2 6 8

RM50,001 – RM100,000 – 6 6

RM750,001 – RM800,000 1 – 1

TOTAL 3 12 15

* Note: Two promoters who were employees of PROTON Group have resigned as directors of the companyon 12 April 2004.



IMBUHAN PARA PENGARAH

Bagi Pengarah Eksekutif, imbuhan dibentuk dengan mengaitkan ganjaran korporat dan prestasi individumelalui petunjuk prestasi utama yang terdiri daripada gaji asal dan faedah-faedah dan berasaskanprestasi. Lembaga Jawatankuasa Imbuhan bertanggungjawab untuk menyemak prestasi PengarahEksekutif dan untuk mencadangkan kepada Lembaga Pengarah berkenaan pakej imbuhan dan strukturganjaran. Lembaga Jawatankuasa Imbuhan akan menyemak dan bila perlu merujuk kepada kajian danpenasihat tentang imbuhan untuk membantu dalam mengenal pasti tahap ganjaran yang kompetitifdan konsisten dengan objektif korporat. Ini adalah penting untuk menarik minat dan mengekalkan paraprofesional dengan kualiti yang diperlukan untuk menguruskan Kumpulan dengan jayanya.

Bagi Pengarah Bukan Eksekutif, Lembaga Pengarah secara keseluruhan menetapkan imbuhan PengarahBukan Eksekutif. Tahap imbuhan Pengarah Bukan Eksekutif mempamerkan pengalaman dan tahaptanggungjawab yang dinilai dengan pertimbangan Pengarah. Pengarah Bukan Eksekutif dibayar yurantahunan dan elaun kehadiran selaras dengan jumlah kehadiran mesyuarat. Tambahan lagi, semuaPengarah Bukan Eksekutif diberi kereta untuk digunakan.

Butiran bagi jumlah imbuhan Para Pengarah PROTON Holdings Berhad untuk tahun kewangan yangberakhir 31 Mac 2005 adalah seperti berikut:

Pengarah Gaji Asas, Yuran dan Faedah dalam JumlahBonus dan EPF Elaun bentuk barangan

Pengarah Eksekutif 707,215 75,617 15,082 797,914

Pengarah Bukan Eksekutif 0 499,755 40,161 539,916

JUMLAH 707,215 575,372 55,243 1,337,830

Bilangan Pengarah

Pelbagai Peringkat Jumlah Imbuhan Eksekutif Bukan Eksekutif Jumlah

Di bawah RM50,000 *2 6 8

RM50,001 – RM100,000 – 6 6

RM750,001 – RM800,000 1 – 1

JUMLAH 3 12 15

* Nota: Dua orang penilai, yang juga kakitangan Kumpulan PROTON, telah meletak jawatansebagai pengarah syarikat pada 12 April 2004.



FINANCIAL REPORTING

The Board is committed to providing a balanced,clear and meaningful assessment of the financialper formance and prospects of the Group toshareholders, the investor community and theregulatory authorities. Shareholders and otherstakeholders are kept abreast of the Group’sperformance through the timely announcement ofthe quarterly financial results and accompanyingpress releases.

The Board Audit Committee assists the Board tooversee the financial reporting processes and thequality of its financial reporting. Quarterly financialresults and annual f inancial statements arereviewed by the Board Audit Committee to ensureadequacy and completeness of information priorto the Board’s approval. To enhance the quality ofthe Group’s f inancial reporting, the externalauditors will be conducting quarterly reviews of theGroup’s quarterly results in addition to the year-endaudit.

DIRECTORS’ RESPONSIBILITY STATEMENT

The Board is required by the Companies Act, 1965to ensure that financial statements prepared foreach financial year have been made out inaccordance with the applicable approvedaccounting standards and give a true and fair viewof the state of affairs of the Company and theGroup at the end of the financial year and of theresults and cash flow of the Company and theGroup for the financial year.

The Board is responsible for ensuring that theCompany keeps accounting records which disclosewith reasonable accuracy the financial position ofthe Company and the Group and that thefinancial statements comply with the CompaniesAct, 1965.

In preparing the financial statements, the Boardhas:

o Selected suitable accounting policies andapplied them consistently;

o Made judgments and estimates that arereasonable and prudent;

o Ensured that all applicable accountingstandards have been followed; and

o Prepared financial statements on the goingconcern basis as the Directors have areasonable expectation, having madeenquiries, that the Group has adequateresources to continue in operations for theforeseeable future.

INTERNAL CONTROLS

The Board acknowledges its overall responsibility formaintaining a system of internal controls thatprovides assurance of effective and efficientoperations and compliance with laws andregulations and also its internal procedures andguidelines. The size and complexity of theoperations may give rise to risks of unanticipated orunavoidable losses.



LAPORAN KEWANGAN

Lembaga Pengarah Kumpulan adalah komiteddalam menyediakan laporan prestasikewangan yang seimbang, jelas, danbermakna kepada pemegang-pemegangsaham, komuniti pelaburan dan penguatkuasaundang-undang. Pemegang-pemegang sahamdan juga lain-lain pihak yang berkepentingansentiasa dimaklumkan berhubung denganprestasi Kumpulan melalui pengumumanlaporan suku tahunan kewangan besertadengan kenyataan akhbar.

Lembaga Pengarah dibantu oleh LembagaJawatankuasa Audit untuk mengawasi prosesdan kualiti laporan kewangan tersebut.Keputusan kewangan suku tahunan dan penyatakewangan tahunan disemak oleh LembagaJawatankuasa Audit untuk memastikan maklumatyang mencukupi dan lengkap telah disediakansebelum ianya dikemukakan kepada LembagaPengarah untuk kelulusan. Untuk meningkatkankualiti laporan Kewangan Kumpulan, juruauditluaran akan mengadakan tinjauan suku tahunbagi keputusan suku tahunan sebagai tambahanuntuk audit akhir tahun.

KENYATAAN TANGGUNGJAWAB PARAPENGARAH

Lembaga Pengarah adalah dikehendakimematuhi Akta Syarikat, 1965 dalammemastikan bahawa penyata kewangantahunan yang disediakan telah dibuat selarasdengan Piawaian perakaunan yang diluluskanserta memberi pandangan yang benar dan adilmengenai keadaan hal ehwal Kumpulan dan

Syarikat pada akhir tahun kewangan dankeputusan serta penyata Aliran Tunai Kumpulandan Syarikat pada tahun kewangan.

Lembaga Pengarah adalah bertanggungjawabdalam memastikan setiap Rekod Kewangandilaporkan dengan ketetapan yang munasabahmengenai kedudukan kewangan Kumpulan danSyarikat, dan penyata kewangan tersebut telahmematuhi Akta Syarikat, 1965.

Dalam menyediakan penyata kewangan, ParaPengarah telah:

o Memilih polisi perakaunan yang sesuai dandigunapakai dengan konsisten;

o Menilai dan menganggarkan dengan wajarserta berhemat;

o Memastikan segala Piawaian Perakaunandiikuti; dan

o Menyediakan penyata kewangan mengikuti‘asas perakaunan berterusan’ keranaPengarah mempunyai alasan yangmunasabah bahawa Kumpulan mempunyaisumber yang mencukupi untuk meneruskanoperasi pada masa akan datang.

KAWALAN DALAMAN

Lembaga Pengarah adalah maklum mengenaikeseluruhan tanggungjawab mereka dalammengekalkan sistem kawalan dalaman yangmenjamin operasi yang berkesan dan cekap,dan mengikut undang-undang, dan jugaprosedur dalaman dan panduan-panduannya.Saiz dan kesukaran operasi mungkin akanmemberi r isiko yang tinggi menyebabkankerugian luarjangka dan tidak dapat dielakkan.



The system of internal controls is designed toprovide reasonable but not absolute assuranceagainst the risk of material errors, frauds or lossesoccurring. The Board Audit Committee reviews theeffectiveness of the system of internal controls,which covers financial, operational and compliancecontrols, and also risk management.

In view of the expansion to Indonesia and othermarkets including addition of new companies suchas MV Agusta, the Group is presently undergoing areview of the Limit of Authority to update andfurther enhance its control structure.

RELATIONSHIP WITH AUDITORS

The Board Audit Committee maintains an appropriatetransparent relationship with both the Group externalauditors and internal auditors. The external auditorsare invited to attend Board Audit Committeemeetings and present their audit findings when theCompany’s annual financial results are considered.The Board Audit Committee meets with the externalauditors at least once a year without the presence ofthe Executive Director and management.

DIALOGUE BETWEEN THE COMPANY AND INVESTORS

The Board recognises the importance of transparencyand accountability to its shareholders and investors.Different channels of communication are optimised toprovide shareholders and investors with a balancedand complete view of the Group performance andthe issues faced by its businesses in the competitiveenvironment amidst a changing landscape.

The issue of the Annual Report is an importantmedium of information for the shareholders andinvestors whereas the Annual General Meeting ofthe Company is the main forum for communicationand dialogue with shareholders. Shareholders areencouraged to actively participate and interactwith the Board and members of the seniormanagement pertaining to the agenda itemsduring the general meeting. In addition, theChairman briefs the shareholders on theCompany’s operations for the financial year. Seniormanagement and the external auditors are presentto respond to the questions and queries to ensurea high level of accountability and transparency ofthe business goals, strategy and operations.

For investors, regular dialogues are held withfinancial analysts and fund managers representinginstitutional and individual shareholders through theinvestor relations programme.

Besides the Annual Report, the Board ensures timelyannouncements are made to Bursa Securities anddisseminates clear, accurate and sufficientinformation to enable the shareholders andinvestors to make informed decisions. The InvestorRelations Unit also proactively disseminatesappropriate and relevant information to theinvestor community and attends to whateverqueries they may have.



Sistem kawalan dalaman adalah direka untukmemberi jaminan yang munasabah tetapibukan jaminan yang pasti terhadap risikokesi lapan yang material, penipuan, dankerugian yang dihadapi. LembagaJawatankuasa Pengurusan Risiko memantaukeberkesanan sistem kawalan dalaman yangmeliputi kewangan, operasi, pematuhankewangan, dan juga risiko pengurusan.

Dalam peluasan operasi ke Indonesia danpasaran-pasaran lain termasuk denganpenambahan syarikat baru seperti MV Agusta,Kumpulan kini sedang menjalankan pemantauanjumlah maksima yang diberi kuasa untukmengemaskini dan memperbaiki struktur kawalandi samping menyeimbangkan keberkesanantadbir urus dan operasi pada setiap masa.

PERHUBUNGAN DENGAN JURUAUDIT-JURUAUDIT

Lembaga Jawatankuasa Juruaudit mengekalkanhubungan yang sesuai dan telus dengan kedua-dua Juruaudit luaran Kumpulan dan Juruauditdalaman. Juruaudit luaran adalah dijemput untukmenghadiri Mesyuarat Lembaga JawatankuasaAudit apabila keputusan kewangan tahunandiambilkira. Jawatankuasa audit bertemu denganJuruaudit luaran sekurang-kurangnya sekalisetahun tanpa kehadiran Pengarah Eksekutif danpengurusan bila mana perlu.

DIALOG DENGAN KUMPULAN DAN PELABUR-PELABUR

Para Pengarah maklum akan kepentinganketelusan dan tanggungjawab kepadapemegang-pemegang saham dan para pelabur.Saluran komunikasi yang berlainan digunakansebaiknya untuk memberikan maklumat yang

lengkap dan seimbang tentang prestasiKumpulan serta isu-isu yang dihadapi di dalamperniagaan yang kompetitif dan sering berubah.

Isu tentang Laporan Tahunan adalah pentingsebagai medium informasi bagi pemegang-pemegang saham dan para pelabur manakalaMesyuarat Agung Tahunan Syarikat adalah forumutama bagi sesi komunikasi dan dialog denganpemegang-pemegang saham. Pemegang-pemegang saham adalah digalakkan agar aktifdalam menghadiri dan berinteraksi denganLembaga Pengarah dan ahli-ahli PengurusanKanan berkenaan dengan agenda mesyuarattahunan. Tambahan lagi, Pengerusi akanmembentangkan kepada para pemegangsaham mengenai operasi syarikat untuk tahunkewangan. Pengerusi Kanan dan juruaudit luaranhadir untuk memberi respon dan pertanyaan bagimemastikan tanggungjawab yang tinggi danketelusan yang jitu dalam mencapai objektif,strategi dan operasi perniagaan.

Bagi pelabur-pelabur, dialog-dialog sentiasadiadakan bersama penganalisa kewangan danpengurus dana yang mewakili institusi danpelabur-pelabur individu melalui programhubungan pelabur.

Selain Laporan Tahunan, Kumpulan memastikanbahawa pengumuman yang berterusan dibuatkepada Sekuriti Bursa dan informasi yang tepatdan berpatutan disebarkan bagi memastikanpemegang-pemegang saham dan pelaburdapat membuat keputusan yang bernas. UnitHubungan Pelabur secara proaktifnya telahmenyebarkan maklumat-maklumat yangberkenaan kepada komuniti pelabur dan akanmemperjelaskan apa sahaja pertanyaan yangmungkin ada.

106 Additional compliance informationMaklumat tambahan tentang pematuhan


NON-AUDIT FEES

During the financial year, the amount of non-audit fees paid and payable to the external auditors by theGroup are as follows:

External Auditors 2005 2004RM ‘000 RM ‘000

PricewaterhouseCoopers Malaysia 1,154 332

Member firm of PricewaterhouseCoopers International Limited, 1,682 936a 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 bematerial (not being contracts entered into in the ordinary course of business) involving Directors’ and majorshareholders’ interests during the financial year under review or since the end of the previous financial year.

107Additional compliance informationMaklumat tambahan tentang pematuhan


BAYARAN BUKAN AUDIT

Sepanjang tahun kewangan, jumlah yang telah dibayar untuk bayaran bukan audit kepada firma auditluaran oleh Kumpulan adalah seperti berikut:

Juruaudit Luaran 2005 2004RM ‘000 RM ‘000

PricewaterhouseCoopers Malaysia 1,154 332

Firma sekutu dengan PricewaterhouseCoopers International Limited, 1,682 936yang 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 menjadipenting (kecuali kontrak yang dimeterai dalam urusan biasa perniagaan) yang membabitkan Pengarahdan pemegang saham utama sepanjang tahun kewangan semasa atau sejak dari akhir tahun kewanganterdahulu.

108 Statement OF Internal ControlPENYATA Kawalan dalaman


INTRODUCTION

The Malaysian Code on Corporate Governance requires listedcompanies to maintain a sound system of internal control tosafeguard shareholders’ investments and the Group’s assets.Directors of listed companies are required to make disclosures intheir annual reports on the state of internal control inaccordance with the Revamped Listing Requirements of the BursaMalaysia. The Bursa Malaysia’s Statement on Internal Control:Guidance for Directors of Public Listed Companies (“Guidance”)provides guidance for compliance with these requirements. TheBoard’s Internal Control Statement, which has been prepared inaccordance with the Guidance, is set out below.

RESPONSIBILITY

The Board recognises the importance of sound internal controls and risk management practices to goodcorporate governance. The Board has overall responsibility for the Group’s system of internal controls and forreviewing its adequacy and integrity. The Group’s system of internal control is designed to manage the principalbusiness risks that may impede the Group from achieving its business objectives. The system, by its nature, canonly provide reasonable but not absolute assurance against any material loss occurrence.

109Statement OF Internal ControlPENYATA Kawalan dalaman


PENGENALAN

Kod Tadbir Urus Korporat Malaysia menyarankan agar syarikat-syarikat yang tersenarai supaya mengendalikan dengan baik, suatusistem kawalan dalaman yang kukuh bagi memelihara pelaburanpemegang-pemegang saham dan aset Kumpulan. Mengikutperuntukan syarat-syarat penyenaraian Bursa Malaysia Berhad,para Pengarah syarikat tersenarai perlu mendedahkan keadaankedudukan kawalan dalaman di dalam laporan tahunan. Untukmematuhi tuntutan tersebut, Bursa Malaysia telah memberipanduan kepada para Pengarah Syarikat Awam Tersenarai(Panduan) melalui ‘Penyataan Bursa Malaysia terhadap KawalanDalaman’. Penyata Kawalan Dalaman Para Pengarah yangdisediakan berdasarkan Panduan tersebut adalah seperti di bawah.

TANGGUNGJAWAB

Lembaga Pengarah menyedari tentang kepentingan sistem kawalan dalaman dan amalan pengurusan risiko yangkukuh untuk membentuk tadbir urus korporat yang mantap. Lembaga pengarah memikul tanggungjawabseluruhnya ke atas sistem kawalan dalaman Kumpulan serta memastikan kesempurnaan dan keutuhan sistemtersebut. Sistem kawalan dalaman Kumpulan adalah direka untuk mengurus risiko-risiko utama perniagaan yangmungkin menghalang Kumpulan daripada mencapai objektif perniagaan. Oleh kerana sistem kawalan dalamanadalah direka untuk mengurus dan bukannya untuk menghapuskan risiko, maka sistem tersebut hanya dapatmemberi jaminan yang munasabah dan bukan jaminan penuh terhadap sebarang kejadian merugikan.



RISK MANAGEMENT FRAMEWORK

The Group adopts a risk management framework that sets out the Group’s underlying approach to riskmanagement including risk policy and strategy, risk operations and systems, risk measurement; and riskorganisation and culture.

The Group Risk Management Unit (RMU), set up in July 2002 is responsible for monitoring the risk exposuresof the Group via the respective Risk Organisations that have been formed in key operating entities withinthe Group. The RMU facilitates the registration of high risk events and revisits the mitigation status of highrisk events on a quarterly basis.

The Group RMU continues to promote Risk Management culture within the Group and has during the yearrolled out a series of Risk Management Awareness Workshop and facilitated Risk Profiling sessions togetherwith Risk Champions appointed in respective major entities within the Group except for newly formedentities during the year. Group RMU has undertaken a number of special risk assignments during the yearincluding Gen.2 improvement and PRECISE (PROTON e-Community Supplier Exchange) project. In responseto the implementation issues faced in respect of a new ERP (Enterprise Resource Planning) System in asubsidiary company, Group RMU has facilitated alongside other initiatives taken by management in theidentification, reporting, mitigation and continuing resolution of these issues. Further training anddeployment of the Group RMU in-house developed risk management software was conducted for a periodof 3 months during the year with the aim to gradually shift risk monitoring and reporting system from manualbased to computer based.

The Group Risk Management Committee comprises members of senior management and meets on a bi-monthly basis to monitor risk management activities and control processes via risk management reportsprepared by Group RMU. The Committee also provides direction to the Group RMU in carrying out itsactivities.

The Board Risk Management Committee (BRMC) was formed in November 2003 to assist the Board inreviewing 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.



RANGKA KERJA PENGURUSAN RISIKO

Kumpulan telah mengadaptasi rangka kerja pengurusan risiko yang membentuk pendekatan asasKumpulan 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 bertanggungjawabuntuk mengawasi pendedahan risiko Kumpulan melalui Organisasi Risiko masing-masing yang telahditubuhkan dalam entiti operasi utama dalam Kumpulan. UPR membantu mengenal pasti kejadian-kejadian berisiko tinggi dan menyemak status kejadian-kejadian berisiko tinggi sebanyak 4 kalisetahun.

UPR Kumpulan sentiasa mewujudkan budaya Pengurusan Risiko dalam kumpulan dan dalamsetahun telah melancarkan siri Bengkel Kesedaran Pengurusan Risiko dan membantu sesi Profil Risikobersama-sama dengan Peneraju Risiko yang telah dilantik di entiti-entiti utama masing-masingdalam Kumpulan kecuali bagi entiti-entiti yang baru dibentuk dalam tahun tersebut. UPR Kumpulantelah menjalankan beberapa tugasan risiko khas dalam setahun termasuk peningkatan Gen.2 danprojek PRECISE. Berkenaan reaksi terhadap pelbagai isu dalam pelaksanaan sistem ERP yang barudalam syarikat subsidiari, UPR Kumpulan di samping inisiatif-inisiatif yang diambil pihak pengurusantelah mengendalikan laporan dan pengurangan isu-isu tersebut. Latihan dan penempatan perisianpengurusan risiko dalaman UPR Kumpulan yang seterusnya telah dilaksanakan untuk tempoh masa3 bulan dalam tahun tersebut dengan matlamat untuk menukar sistem laporan dan pengawasanrisiko secara berkala daripada yang berasaskan manual kepada yang berasaskan komputer.

Jawatankuasa Pengurusan Risiko Kumpulan yang terdiri daripada ahli-ahli dalam pengurusan kanandan bersidang 2 bulan sekali untuk memantau aktiviti-aktiviti pengurusan risiko dan mengawalsegala proses menerusi laporan-laporan pengurusan risiko yang disediakan oleh UPR Kumpulan.Jawatankuasa juga memberi hala tuju kepada UPR Kumpulan dalam menjalankan segalaaktivitinya.

Lembaga Pengarah Jawatankuasa Pengurusan Risiko (LJPR) telah ditubuhkan pada November 2003untuk membantu Lembaga Pengarah dalam mengkaji strategi-strategi dan polisi-polisi risiko.Jawatankuasa terdiri daripada 3 orang ahli pengarah bukan eksekutif dan bersidang minima 4 kalisetahun seperti yang digariskan dalam Piagam Lembaga Pengarah Pengurusan Risiko.



ASSURANCE MECHANISM

The Board has delegated the duty of reviewing and monitoring the effectiveness of the Group’s system ofinternal control to the Board Audit Committee (BAC). The BAC comprises a majority of independent directorsmeets at least on four (4) occasions each year. The BAC assumes the overall duties of reviewing with theexternal auditors their audit plan, audit report, as well as their findings and recommendations on internalcontrols highlighted annually in the Internal Control Memorandum. In addition, the BAC also reviews theadequacy of the scope, functions, audit programmes, results of internal audit and resources of GroupInternal Audit Department. The department, which is further subdivided into financial audit team andoperational audit teams carries out various audit activities encompassing financials, operational, processimprovements and self-audit initiatives. Audit findings with recommendations for improvement are presentedin audit reports, which are extended to the BAC with copies also given to management for correctiveactions. In view of the expanding Group, the BAC has in its meeting convened on 11 May 2005 approvedfor 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 theDelegation of Financial Authority;

• Documented internal policies and procedures set out in the Group Policies and Procedures issued in1998; and certification by ISO 9001:2000 of the Quality System Procedures for the Company and 2major subsidiaries within the Group;

• The Board receives and reviews quarterly reports from management on key strategic and operationalissues and provides direction to management;

• A comprehensive budgeting process where the annual budgets are approved by the Board andreviewed at mid year;

• Reports to the Management Committee by Group Internal Audit on the status of implementation ofrecommendations arising from audit findings;

• Monthly performance reporting to the Management Committee by key operating units coveringfinancial performance and other key business indicators, such as staff utilisation and quality controlactivities.

• 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.



MEKANISMA JAMINAN

Lembaga Pengarah telah membahagikan tugas untuk mengkaji dan memantau keberkesanansistem kawalan dalaman Kumpulan kepada Lembaga Pengarah Jawatankuasa Audit (LPJA). LPJAyang majoritinya terdiri daripada pengarah-pengarah bebas bersidang sekurang-kurangnya 4 kalisetiap tahun. LPJA mengambil alih semua tugas menyemak rancangan audit mereka denganjuruaudit-juruaudit luaran, laporan audit dan juga hasil semakan mereka dan memberi cadanganbagi 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 tersebutyang seterusnya dibahagikan kepada pasukan audit kewangan dan pasukan audit operasimenjalankan pelbagai aktiviti audit meliputi kewangan, operasi, peningkatan proses, inisiatif auditsendiri dan juga penyelesaian telingkah. Hasil-hasil audit bersama cadangan-cadangan untukpeningkatan dibentangkan dalam laporan audit, yang kemudian diserahkan kepada LPJA dengansalinan-salinannya diberikan kepada pihak pengurusan untuk tindakan susulan. Dalam melihatperkembangan Kumpulan, LPJA dalam mesyuarat yang dijalankan pada 11 Mei 2005 telahmeluluskan pembesaran jabatan dengan penambahan bilangan kakitangan untuk menguatkanpasukan 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 pelbagaiaspek perniagaan seperti yang digariskan di dalam pembahagian Had Kuasa Kewangan;

• Polisi dan prosedur dalaman bertulis yang digariskan dalam Polisi dan Prosedur Kumpulan yangdiluluskan dalam tahun 1998; dan prosedur Sistem Kualiti Syarikat yang telah diiktiraf dengansijil ISO 9001:2000 untuk Syarikat dan 2 syarikat subsidiari;

• Lembaga Pengarah menerima dan meneliti laporan suku tahunan dari pihak pengurusanberkaitan isu-isu strategik dan operasi utama dan memberi halatuju kepada pihak pengurusan;

• Proses belanjawan yang lengkap dan menyeluruh di mana belanjawan tahunan diluluskanoleh Lembaga Pengarah dan disemak semula pada pertengahan tahun;

• Laporan kepada Jawatankuasa Pengurusan mengenai kedudukan perlaksanaan cadanganyang diambil hasil pemerhatian audit oleh Audit Dalaman Kumpulan;

• Laporan prestasi bulanan kepada Jawatankuasa Pengurusan oleh unit operasi utama meliputiprestasi kewangan dan lain-lain petunjuk utama perniagaan seperti penggunaan kakitangandan 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.

114 Risk ManagementPENGURUSAN RISIKO


Effective Risk Management does not happen automatically. Managers in organisations must recognise theimportance of this for it to be effective. PROTON has thus implemented a Risk Management Frameworkapproach to manage the risk that is faced by the organisation.

RISK POLICY & STRATEGY

• Risk policies had been developed in PROTON and its major subsidiaries to provide a basis to managepotential risk that arise from the business process and as a guide in its decision making process.

Risk

Ope

ratio

ns

and

Syste

ms

Risk Measurem

ent

Risk Organisation and Culture

Risk Policy& Strategy

Establishing controls, reporting dashboard throughIT systems.

Developingmeasurementtools / processes.

Identifying risk, risk policies & guidelines development.

Establishing roles andresponsibilities & inculcating risk culture.

RISK MANAGEMENT FRAMEWORK

115Risk ManagementPENGURUSAN RISIKO


Pengurusan Risiko yang berkesan tidak berlaku secara automatik. Para Pengurus dalam organisasimesti menyedari kepentingannya untuk menjadikannya berkesan. Dengan itu, PROTON telahmelaksanakan Rangka Kerja Pengurusan Risiko untuk mengurus risiko yang dihadapi oleh organisasi ini.

POLISI RISIKO & STRATEGI

• Polisi Risiko telah dibangunkan di PROTON dan anak syarikat utama PROTON sebagai asasuntuk mengurus risiko yang mungkin berlaku yang timbul dari proses perniagaan dan sebagaipanduan dalam proses membuat keputusan.

Ope

rasi

dan

Siste

m R

isiko

Pengurusan Risiko

Organisasi dan Budaya Risiko

Polisi Risiko & Strategi

Penubuhankawalan, laporanrisiko melaluisistem IT.

Menbina alatpengukuran/proses.

Mengenalpasti risiko,polisi risiko &menyediakan garispanduan risiko.

Mengenalpasti peranan dantanggungjawab dan memupuk budaya kenal risiko.

RANGKA KERJA PENGURUSAN RISIKO



• Board Risk Management CommitteeIn recognising the importance of risk management practices to good corporate governance, theBoard Risk Management Committee was formed in November 2003 to review the risk policies andstrategies implemented in PROTON Group and advise the Board of Directors on significant changesto Risk Management policies and strategies. The Committee, which comprise of 3 non-executivedirectors meet on a quarterly basis as set out in the Board Risk Management charter.

BOARD OFDIRECTORS

Risk Management

BRMC

GRMC

Internal Audit

BAC

GIA

Liaison function

RISK MANAGEMENT ORGANISATION

BRMC : Board Risk Management CommitteeGRMC : Group Risk Management CommitteeBAC : Board Audit CommitteeGIA : Group Internal Audit



• Lembaga Pengarah Jawatankuasa Pengurusan RisikoMenyedari pentingnya pengurusan risiko untuk Tadbir Urus Korporat yang berkesan, LembagaPengarah Jawatankuasa Pengurusan Risiko telah dibentuk pada November 2003 untukmenyemak polisi risiko dan strategi yang dilaksanakan oleh Kumpulan PROTON dan menasihatiLembaga Pengarah atas pertukaran polisi dan strategi pengurusan risiko. Ahli Jawatankuasayang terdiri daripada 3 orang Pengarah Bukan Eksekutif bertemu setiap suku tahun sepertiyang tertakluk di dalam piagam Lembaga Pengarah Pengurusan Risiko.

LEMBAGAPENGARAH

Pengurusan Risiko

BRMC

GRMC

Audit Dalaman

BAC

GIA

Fungsi perhubungan

ORGANISASI PENGURUSAN RISIKO

BRMC : Lembaga Pengarah Jawatankuasa Pengurusan RisikoGRMC : Jawatankuasa Pengurusan Risiko KumpulanBAC : Lembaga Pengarah Jawatankuasa AuditGIA : Audit Dalaman Kumpulan



• Group Risk Management CommitteeThe Group Risk Management Committee that comprise members of senior management and chairedby the General Manager, Group Finance for 2004 to 2005 financial year meet on a bi-monthly basisto analyse and evaluate the risk mitigation activities that is carried out in the Group. The Committeealso provides direction to the Group Risk Management Unit to carry out its activities.

• Group Risk Management UnitThe Group Risk Management Unit continues to monitor the risk faced by the Group via the respectiveRisk Management Units that have been formed in major subsidiaries except for newly formed entitiesduring the financial year. Formal reviews on mitigation status of high risk events are performed on aquarterly basis. The Group Risk Management Unit also continues to inculcate the Risk Managementculture within the Group by continuously conducting Risk Awareness and Risk Profiling programs. TheGroup Risk Management Unit have also facilitated Risk Assessments of the major business projectstogether 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 subsidiariesThe Risk Management Units of the major subsidiaries regularly prepares risk reports for their respectiveBoard of Directors and regularly reports the mitigation status of the high risk events to Group RiskManagement Committee via Group Risk Management Unit.

RISK MEASUREMENT

A standard Risk Management methodology has been developed and used for Risk Assessment purposesfor identifying, rating and monitoring the operational risk, market risk, project risk and other risk events facedby PROTON and its major subsidiaries.

RISK OPERATIONS & SYSTEM

The Group Risk Management Unit is continuously conducting training on a Risk Management softwaredeveloped in-house that will be used as a systematic tool for effective risk identification, rating andmonitoring.



• Jawatankuasa Pengurusan Risiko KumpulanJawatankuasa Pengurusan Risiko Kumpulan dianggotai oleh pegawai kanan pengurusan dandipengerusikan oleh Pengurus Besar, Kumpulan Kewangan untuk tahun kewangan 2004 / 2005bermesyuarat 2 bulan sekali untuk membuat analisa dan menaksir aktiviti pengurangan risikoyang dijalankan oleh Kumpulan. Jawatankuasa ini juga memberi panduan kepada UnitPengurusan Risiko Kumpulan untuk menjalankan aktiviti-aktivitinya.

• Unit Pengurusan Risiko KumpulanUnit Pengurusan Risiko Kumpulan sentiasa mengawasi risiko yang dihadapi oleh Kumpulanmenerusi Unit Pengurusan Risiko yang telah dibentuk di syarikat-syarikat ini subsidiari utamakecuali untuk entiti-entiti yang baru dibentuk dalam tahun kewangan ini. Semakan rasmiterhadap status risiko-risiko yang tinggi dijalankan 4 kali setahun. Unit Pengurusan RisikoKumpulan juga sentiasa memupuk budaya Pengurusan Risiko di dalam Kumpulan denganmenjalankan program Penyedaran Risiko dan Profil Risiko secara berterusan. Unit PengurusanRisiko Kumpulan juga telah mengendalikan Penilaian Risiko untuk projek perniagaan utamabersama-sama dengan ahli projek masing-masing dan mengendalikan penilaian risiko untukrisiko yang luarbiasa, contohnya perlaksanaan ERP (Perancangan Sumber Perniagaan),program peningkatan Gen.2 & sistem PRECISE.

• Unit Pengurusan Risiko syarikat-syarikat subsidiari utamaUnit Pengurusan Risiko syarikat-syarikat subsidiari utama menyediakan laporan risiko kepadaLembaga Pengarah syarikat masing-masing dan melaporkan status pengurangan peristiwaberisiko tinggi kepada Jawatankuasa Pengurusan Risiko Kumpulan melalui Unit PengurusanRisiko Kumpulan.

PENGUKURAN RISIKO

Kaedah Pengurusan Risiko yang ditetapkan telah digunakan bagi Penilaian Risiko untukmengenalpasti, menaksir dan memantau risiko operasi, risiko pasaran, risiko projek dan risiko-risiko lainyang dihadapi oleh PROTON dan syarikat-syarikat subsidiari utama.

OPERASI & SISTEM RISIKO

Unit Pengurusan Risiko Kumpulan menjalankan latihan secara berterusan untuk perisian pengurusanrisiko dalaman yang akan digunakan sebagai alat sistematik untuk mengenalpasti, menaksir danmengawasi risiko secara berkesan.

120 Corporate DIAry ‘04 - ‘05DIARI KORPORAT ‘04 - ‘05


15 September 2004Over 400 dealers nationwide acknowledged for their sales

performance during Proton Edar’sDealer Convention.

Upacara meraikan lebih 400 wakil-niaga dari seluruh negara di

Konvensyen Wakil Jualan PROTON Edar.

04 September 200420 Years of Service Award

Ceremony for staff who servesPROTON since 1984.

Anugerah Perkhidmatan 20 Tahunkepada kakitangan yang

berkhidmat sejak tahun 1984.

05 September 2004Ceremony by Yayasan Proton in

honouring children of PROTON staffwho performed excellently in SPM

and SRP.Majlis meraikan anak-anak pekerja

PROTON yang telah berjayadengan cemerlang di dalam SPM

dan SRP.

08-10 September 2004Dealers from Proton CarsAustralia visiting the R&D

facilities.Wakil niaga dari Proton Cars

Australia melawat fasiliti R&D.

27 September 2004Visit of chief secretaries of variousministries to Proton Tanjung Malim.

Lawatan ketua-ketua setiausahadari pelbagai kementerian ke kilang

Proton Tanjung Malim.

121Corporate DIAry ‘04 - ‘05DIARI KORPORAT ‘04 - ‘05


27-29 September 2004Making PROTON proud, the ICC

team representing the company atthe national competition.

PROTON berbangga denganpencapaian pasukan ICC yang

bertanding di peringkat kebangsaan.

28 September 2004Official announcement of the

Proton Track Carnival race.Pengumuman rasmi Karnival

Trek Proton.

01-03 October 2004Over 60 cars raced in the inaugural

Proton Track Carnival held at PasirGudang Racing Circuit.

Lebih 60 kereta mengambilbahagian dalam Karnival Trek Proton

yand diadakan buat pertamakalinya di Litar Lumba Pasir Gudang.

30 October 2004Showcasing PROTON’s engineering

capabilities at the SMIDEX 2004.PROTON mempamerkan

keupayaan kejuruteraannya diPameran SMIDEX 2004.

03 October 2004Satria R3 was officially launched by

Tengku Mahkota of Johor during theProton Track Carnival.

Satria R3 dilancarkan oleh Tengku Mahkota Johor di

Karnival Trek Proton.

31October 2004The e-procurement system, PRECISE,

enhances the operation betweenPROTON and its supplier community.

Pelancaran PRECISE, sistem e-perolehan yang bakal

meningkatkan keupayaan operasi di antara PROTON dan para

pembekalnya.



25 January 2005Proton T-bikes Racing Team

to compete in the Le Tour de Langkawi 2005.

Pelancaran pasukan Proton T-bikesuntuk bersaing di pertandingan Le

Tour de Langkawi 2005.

18 January 2005Official handover of Tsunami Aidto the Red Cresent Society fromPROTON Club, PROTON Workers’

Union and PROTON Edar.Majlis penyerahan sumbangan

bantuan Tsunami kepadaPersatuan Bulan Sabit Merah dari

warga PROTON.

16 December 2004Satria GTi Club annual convoy

went to Koh Samui, Thailand. Konvoi tahunan Kelab Satria GTi

ke Koh Samui, Thailand.

20 November 2004Jamuan Hari Raya to

PROTON staff.Jamuan Hari Raya untuk

kakitangan PROTON.

08-10 January 2005Caring for the well being of

our staff, monthly HealthCampaign is organized by

PROTON’s in-house clinic.Kempen Kesihatan yang

diadakan setiap bulandianjurkan oleh klinik dalaman

PROTON, menunjukkankeprihatinannya terhadap

kesihatan para pekerjanya.



01 February 2005PROTON once again became theofficial car sponsor for Le Tour de

Langkawi 2005, held across 10 statesthroughout Malaysia.

Sekali lagi PROTON berbanggamenjadi kereta rasmi Pertandinganlumba basikal Le Tour de Langkawi

yang diadakan di sepuluh negeri diMalaysia.

28 January 2005Training for PROTON Rela

members which boast of over300 personnel.

Latihan untuk ahli Rela PROTONyang keahliannya menjangkau

melebihi 300 anggota.

28 January 2005Tun Dr. Mahathir Mohamad,

PROTON Advisor getting a firsthandlook on the progress of PROTON

Centre of Excellence in Subang Jaya.

Penasihat PROTON, Tun Dr. Mahathir Mohamad

meninjau perkembangan PusatKecemerlangan PROTON di

Subang Jaya.

28-31 January 2005The inaugural Global CEO

Conference gathered seniormanagement of PROTON group of

companies.Persidangan Ketua Pegawai Eksekutif

Syarikat-syarikat dalam kumpulanPROTON buat kali pertamanya di

Malaysia.

03 February 2005Prize-giving ceremony to 5 winners ofPROTON DARING TO WIN contest, whothen went to UK to watch live match

at Carrow Road Stadium.Penyampaian hadiah kepada 5 para

pemenang peraduan “PROTON DARINGTO WIN” untuk menonton perlawanan

bolasepak liga Perdana Inggeris diStadium Carrow Road.

21 February 2005Promoting excellence at

workplace, honouring employeeswho excelled, at a dinner

reception.Satu majlis makan malam

diadakan untuk menghargaipekerja-pekerja cemerlang.



26 February 2005Official launch of Proton Tanjung Malim

manufacturing facilities by YAB Dato’Seri Abdullah Hj Ahmad Badawi,

the Prime Minister of Malaysia.Pelancaran rasmi kilang Proton TanjungMalim oleh YAB Dato’ Seri Abdullah Hj

Ahmad Badawi, Perdana MenteriMalaysia.

25 March 2005PROTON donated a washing machineto PERKOB, a welfare home, from the

proceed of Norwich City FC Gala Dinner.

Keprihatinan terhadap rakyat,PROTON menyumbang sebuah mesin

basuh kepada PERKOB, sebuahbadan kebajikan.

25 March 2005PROTON sponsored theNational Jersey Design

competition.Penajaan Pertandingan

merekacipta jersi kebangsaan.

27 March 2005A bowling friendly match betweenthe management of PROTON and

the Road Transport Department.Pertandingan bowling persahabatan

antara pihak pengurusan PROTONdan Jabatan Pengangkutan Jalanuntuk mengeratkan silaturrahim di

antara kedua pihak.

05 April 2005Scholarship award by Yayasan

Proton.Majlis penyampaian biasiswa

Yayasan Proton.



14 April 2005Not only good in producing cars,

PROTON’s in-house “Dikir Barat” teamperformed for RTM’s programme

“Salam Pantai Timur”.Bakat kakitangan PROTON terserlah

apabila pasukan Dikir Baratmembuat rakaman untuk rancangan

RTM “Salam Pantai Timur”.

11 May 2005Launch of Web-PDM, providesrealtime-access to engineering

data by PROTON group ofcompanies worldwide.

Pelancaran “Web-PDM”membolehkan data teknikaldikongsi di seluruh kumpulan

PROTON.

13 April 2005In a move to reward staff, a scheme

called Golden Corn was launched,whereby merit points are awarded.

Dalam usaha memberi ganjarankepada pekerja-pekerjanya, Skim

Jagung Emas dilancarkan.

30 May-03 June 2005Global Distributors Conference at

Norwich.Persidangan Wakil Pengedar

Antarabangsa Proton di Norwich.

27 May 2005Official visit by Prince H.H. Sheikh

Hamid bin Zayed al-Nahyanfrom United Arab Emirates.Lawatan rasmi Tuan Yang

Terutama Sheikh Hamid binZayed al-Nahyan dari Emiriah

Arab Bersatu.

07 June 2005Over 100 local journalists

attended the preview and testdrive of Proton Savvy.Lebih 100 wakil media

tempatan menghadiri sesipandu-uji Proton Savvy.



08 June 2005Official launch of Proton Savvy by

Tun Dr. Mahathir Mohamad,PROTON Advisor.

Perlancaran rasmi Proton Savvyoleh Tun Dr. Mahathir Mohamad,

Penasihat PROTON.

12 June 2005Certification of ISO 9001:2000 to

PROTON Tanjung Malim, officiatedby SIRIM and VCA UK.

Pengiktirafan ISO 9001:2000 untukkilang PROTON Tanjung Malim

dari SIRIM dan VCA UK.

30 June-04 July 2005Visit by dealers of PROTON

Cars UK to Malaysia.Lawatan ke PROTON olehwakil-wakil jualan dari UK.

01 July 2005Presentation of Tsunami aid fromNorwich City FC to students from

Penang and Kedah.Sumbangan bantuan kewangan

dari Norwich City FC kepadapelajar-pelajar yang terbabit

dengan bencana tsunami di PulauPinang dan Kedah.

16 July 2005Launch of Savvy U-Tour, an initiative

to reach community in higher-learning institutions.

Pelancaran Savvy U-Tour, satuusaha promosi ke institusi-institusi

pengajian tinggi.

statement of corporate governance -...

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