THE Minority Shareholders Watch Group (MSWG) is enquiring from KKB Engineering Bhd at its forthcoming annual general meeting (AGM) reasons behind the 46% shortfall for its internal audit fee for FY2020.
The total fee for the internal audit function of the Group during the FY2020 was RM15,000 (FY2019: RM28,000).
“Given that the fee in FY2020 is rather small (RM1,250 per month), how does the audit committee assure itself that there would be adequate coverage and an effective audit function?” asked the shareholder activism group.
KKB Engineering will stage its 45th AGM at the Grand Margherita Hotel in Kuching (Sarawak) on May 20 (Thursday) at 10am.
Probing deeper into the company’s internal audit function, MSWG also wants to know the major findings by its internal auditors on various aspects of the company.
This follows a revelation that its audit committee has reviewed and discussed with its internal auditors to review working and rest-day hours of employees on shift work, updated KKB Industries (Sabah) Sdn Bhd’s operation readiness, ongoing review on the recognition of revenue and the review on the COVID-19 impact on KKB Engineering and its subsidiaries, and measures taken to deal with regulations and legislation implemented by the Government.
Elsewhere, MSWG also queries Heineken Malaysia Bhd with regard to the group’s total compensation for its key management personnel and directors which has surged 27.6% to RM12.5 mil in FY2020 (FY2019: RM9.8 mil).
“What is the reason for the significant increase especially since there has been a substantial drop in revenue and gross profit,” asks the shareholder activism group.
For the record, the brewer’s gross profit dwindled 32% year-on-year to RM479 mil in its FY2020 (FY2019: RM709 mil) while its revenue shrunk 24% to RM1.76 bil (FY2019: RM2.32 bil).
Heineken will broadcast its virtual 57th AGM from its headquarters at the Sungei Way Brewery in Petaling Jaya (Selangor) on May 21 (Friday) at 9.30am.
Additionally, MSWG also seeks an answer from Magnum Bhd with regard to the progress of its replacement exercise for its point-of-sales terminals at all outlets nationwide which has entered the final phase (ending with Perak and Penang).
“What is the estimated operational costs that Magnum is expected to save? Will there also be lower headcounts required and savings in manpower costs?” asks MSWG.
With completion of its old terminals’ replacement, Magnum said customers will experience less downtime and quicker service. The resulting reduction in operational costs will see returns in the years to come.
Magnum will broadcast its virtual AGM from its head office in Menara Multi-Purpose, Kuala Lumpur on May 19 (Wednesday) at 9.30am. – May 15, 2021
