dato' rozabil abdul rahman

190 Pages·2017·2.83 MB·English

ANNUAL
R E P O R T
2016

CONTENT
02 - 03 ABOUT DESTINI BERHAD
04 - 06 DESTINI’S MILESTONES
08 - 09 CORPORATE STRUCTURE
10 - 11 SUBSIDIARIES, SUB-SUBSIDIARIES, ASSOCIATES AND
JOINT VENTURES
12 CORPORATE INFORMATION
13 FINANCIAL PERFORMANCE AT A GLANCE
14 FIVE YEAR GROUP FINANCIAL PERFORMANCE
16 - 17 BOARD OF DIRECTORS
18 - 24 DIRECTOR'S PROFILE
25 - 26 SENIOR MANAGEMENT TEAM
27 - 30 SENIOR MANAGEMENT PROFILE
32 - 35 CHAIRMAN’S STATEMENT
36 - 40 GROUP MANAGING DIRECTOR'S STATEMENT AND
MANAGEMENT DISCUSSION AND ANALYSIS
42 - 43 STATEMENT OF CORPORATE SUSTAINABILITY
44 - 59 STATEMENT OF CORPORATE GOVERNANCE
60 ADDITIONAL COMPLIANCE INFORMATION
61 - 62 AUDIT COMMITTEE REPORT
63 - 65 STATEMENT ON RISK MANAGEMENT AND INTERNAL
CONTROL
67 - 175 FINANCIAL STATEMENTS
176 - 177 LIST OF PROPERTIES
178 - 181 ANALYSIS OF SHAREHOLDINGS
182 - 183 NOTICE OF ANNUAL GENERAL MEETING
184 STATEMENT ACCOMPANYING NOTICE OF
ANNUAL GENERAL MEETING
PROXY FORM
2 ANNUAL REPORT 2016 • DESTINI BERHAD
INTEGRATED ENGINEERING
SOLUTIONS PROVIDER
Destini focuses on offering total engineering
solution that form an integral part of
customers assets and businesses.
ABOUT
DESTINI BERHAD
The Group’s engineering capabilities are
spread worldwide Destini Berhad is an integrated engineering solutions provider
with facilities and operations in with diverse interest in the aviation, marine, land transport
Asia, Australia, Middle East and Europe. as well as oil and gas industries. In its formative years, the
Group started off as an aviation tool and spare parts
trading company supplying for the defence industry. Two
decades later, Destini evolved to provide a diversified range
of products and services for the aviation, marine and land
transport industries for both the defence and commercial
sectors. With a diverse portfolio and a wider foothold in the
oil and gas industry, it has enabled the Group to expand its
geographical footprint over the Asian, Australian, Middle East
and European regions.
NICHE MARKET
We offer our experties in niche markets
where it can provide the highest
impact to customer’s operations
especially within the aviation, marine,
oil and gas and land transport
industries.
ANNUAL REPORT 2016 • DESTINI BERHAD 3
Aviation Oil & Gas
• Provides technical line maintenance and hangar-based • Is able to support oil field decommissioning and well
MRO for civil airlines plug abandonment
• Provides civil airline component MRO services • Provides tubular handling equipment and running
• Provides cylinder testing and calibration services services for oil and gas exploration and production
• Is able to take on aircraft salvage operations • Provides bucking services and hammer services for well
• Provides safety and survival-related equipment MRO for drilling
the Armed Forces and civil airlines • Provides thru-tug workover/completion systems and a
variety of thru-tubing packer systems for many remedial
well bore operations.
Marine
• Shipbuilding and ship repair for paramilitary and
Others
commercial vessels
• Design, analyse and manufacture customized tools and
• Provides safety and survival-related equipment MRO for
equipment for aviation, naval and automotive industries
maritime agencies
in the defence sector as well as oil and gas
• Manufactures lifeboats, fast rescue boats, davit systems
• Prototype development
and hooks
• Rectification and modernisation of weapons testing
systems
Land Transport
• Troubleshoot and repair services
• Assembly, fabrication, refurbishment and MRO of
• Waste disposal management and treatment
vehicles used by the Armed Forces, police and other
government agencies
• Assembly, fabrication, refurbishment and MRO of
commercial security vehicles such as busses, coaches
and vans.
• Supply electronic equipment, surveillance and tracking
systems, spare parts, components and accessories for
both security and defence related special vehicles.
4 ANNUAL REPORT 2016 • DESTINI BERHAD
DESTINI’S
MILESTONES
SEPTEMBER 2011
As part of its regularisation plan,
Satang Holdings changed its
name to Destini Berhad to reflect
DECEMBER 2005 a synergised and aligned business
Satang Jaya entered Bursa Malaysia, direction. The name change is also
MARCH 1991
under the name Satang Jaya part of a turnaround plan for the
Satang Jaya Sdn Bhd commenced
Holdings Berhad and subsequently Group to strengthen its financial
operations as an aviation tools
changed its name to Satang muscles while exploring new
and spare parts supplier.
Holdings Berhad in June 2007. business ventures.
MAY 1998
Satang Jaya was awarded the
FEBRUARY 2012
contract to provide MRO services
Destini acquired a 50% stake in
for the Royal Malaysian Air Forces'
automotive supply and service
("RMAF") safety and survival
company System Enhancement
related equipment.
Resources & Technologies Sdn Bhd
(SERT).
MAY 2008
Due to financial woes, Satang
Holdings fell into Bursa
Malaysia’s PN17 category.
JULY 2009
Satang Holdings shares were
AUGUST 2012
suspended from trading by
Destini’s suspension of trade by Bursa
Bursa Malaysia on July 13.
Malaysia was lifted on August 13 after
its regularisation plan was approved.
ANNUAL REPORT 2016 • DESTINI BERHAD 5
DESTINI’S
MILESTONES
AUGUST 2013
The Group acquired its own
building in Glenmarie Industrial
Park, Shah Alam to house its
corporate office and workshop
facilities. APRIL 2015
DECEMBER 2012 Destini wholly acquired Land Auto
Destini acquired a 51% stake MARCH 2014 Technology Sdn Bhd, which is in the
in Singapore-based Vanguard Destini acquired a 51.9% stake business of motor vehicle, motor
Composite Engineering Pte Ltd, in Green Pluslink Sdn Bhd, a accessories and spare part trading
a company that manufactures company that is in the business of and distributorship.
lifeboats, fast rescue boats, davit
extrusion and recycling of waste
systems and a host of other safety
tyres to produce carbon black,
equipment for the marine and oil
diesel fuel and scrap metal.
and gas industries.
JUNE 2015
MARCH 2013
AUGUST 2014 • Destini acquired a 80% stake
Completed the purchase of oil
Destini acquired a 50% stake in in Safeair Technical Sdn Bhd,
and gas service provider Samudra
Detrac Sdn Bhd to become the a company that provides Line
Oil Services Sdn Bhd, now known
research and development arm Maintenance services for civil
as Destini Oil Services Sdn Bhd for
of the Group. Subsequently, the airlines in local airports.
RM80 million.
Group increased its shareholding • Destini Aviation Sdn Bhd
in Detrac to 70% in November 2014. entered into a joint venture
APRIL 2013
agreement with UK-based
• Destini acquired the Techno
Avia Techinique Limited to
FIBRE Group to wholly-own
establish a new joint venture
Techno FIBRE Australia Pty
company called Destini Avia
Ltd, Techno FIBRE Middle East
Technique Sdn Bhd (DAT). DAT
Marine Services FZE, Techno
was incorporated to carry on
FIBRE International Sdn Bhd
the provision of inspection,
and Techno FIBRE (S) Pte Ltd.
repair and overhaul services
The Techno FIBRE Group is in
for civil aircraft components.
the business of lifeboat and
davit maintenance.
SEPTEMBER 2015
• After completing its
Destini acquired the remaining 49%
regularisation plan and
stake it did not own in Vanguard to
achieving profits for two
wholly-own the lifeboat maker.
consecutive quarters, Destini
was uplifted from PN17 status.
6 ANNUAL REPORT 2016 • DESTINI BERHAD
DESTINI’S
MILESTONES
NOVEMBER 2016
DSBE and TH Heavy Engineering
Berhad's wholly-owned subsidiary
DECEMBER 2015 THHE Fabricators Sdn Bhd formed an
The Group acquired Destini incorporated joint venture company,
Shipbuilding and Engineering Sdn to procure the award for the supply,
Bhd (DSBE) to enable it to fabricate delivery, testing and commissioning of
six 44.25-meter New Generation three 80 meter Offshore Patrol Vessels.
JUNE 2016
Patrol Crafts worth RM381.30
System Echancement
million for the Malaysian Maritime
Resources & Technologies
Enforcement Agency (MMEA).
Sdn Bhd accepted its first
rail related award from the
Ministry of Transport for
the design, manufacture,
MARCH 2016
supply, delivery, testing and
Vanguard receives contract to supply
commissioning of new motor
eight Self-Propelled Hyperbaric
trolley and road rail vehicle
Lifeboats to UK-based JFD.
for Keretapi Tanah Melayu
Berhad worth RM62 million.
SEPTEMBER 2016 DECEMBER 2016
TF Corp Pte Ltd subscribed to 60% The Group secured a three-year
of shares in Imes Marine Safety contract extension to provide MRO
Systems Limited. The company services and to supply safety and
is principally in the business of survival relater equipment to the
inspection, testing, repair and RMAF for RM98.20 million.
maintenance of marine safety
systems such as lifeboats and its
components.
APRIL 2016
Destini Prima Sdn Bhd entered
into a Memorandum of
Understanding with AMMROC
(Advanced Military Maintenance,
Repair and Overhaul Centre)
L.L.C. to form a strategic alliance
for the provision of MRO on
aircraft escape systems.
ANNUAL REPORT 2016 • DESTINI BERHAD 7
"Strengthening shipbuilding
and ship repair capabilities"
8 ANNUAL REPORT 2016 • DESTINI BERHAD
CORPORATE
STRUCTURE
100% DESTINI PRIMA SDN BHD
100% DESTINI ARMADA SDN BHD
100% DESTINI ARMADA PTE LTD
100% DESTINI AVIATION SDN BHD
100% SYSTEM ENHANCEMENT RESOURCES &
TECHNOLOGIES SDN BHD
100% DESTINI OIL SERVICES SDN BHD
70% DETRAC SDN BHD
100% DESTINI ENGINEERING TECHNOLOGIES SDN BHD
100% DESTINI INFO TECH SDN BHD
100% DESTINI HRTC SDN BHD
100% LAND AUTO TECHNOLOGY SDN BHD
100% DESTINI FIRE SAFETY SDN BHD
100% DESTINI AERO TEKNOLOGI SDN BHD
100% DESTINI FIRST SDN BHD
51.9% GREEN PLUSLINK SDN BHD
100% PRINSIP PERTIWI SDH BHD