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• The Group maintains an overall healthy financial position
with cash and short term investments of RM37.5 million
(FYE 2012: RM69.3 million), while gearing kept at a
minimum level of 0.06 times, despite the substantial
investments in capital expenditure for expansion of our
steel fabrication activities for the Oil & Gas Sector at
Lot 777, Block 5, Muara Tebas Land District, Kuching,
Sarawak.
The Board is satisfied that the Group has an appropriate
and responsive system of internal controls to mitigate any
significant risks which keeps exposure at an acceptable and
manageable level. Through its Risk Management Committee
and Management Executive Committee, the Group continues
to identify, assess and respond to risks in achieving the Group’s
objective and to safeguard shareholders’ investments and the
Group’s assets.
We are very excited about the prospect of our future Group’s
businesses. We remain committed in practising prudent risk
management and observing good corporate governance. We
are confident that we will continue and evolve as a successful
company and contribute towards Nation Building.
DIVIDENDS
KKB remains committed to delivering value to its shareholders.
The Board, at this point in time, believes that cash generated
from operations should be reinvested in order to grow the
business. With a view to rewarding shareholders for their
continued support of KKB coupled with the strength of the
Group’s financial position, the Board is pleased to recommend
for shareholders’ approval at the forthcoming Thirty-Eighth
The new fabrication yard at Lot 777, Block 5,
Jalan Bako, Muara Tebas Land District, Kuching, Sarawak
Two load-out jetties facility to cater for light,
medium and heavy oil and gas offshores structures
CHAIRMAN’S STATEMENT (CONT’D)
Annual Report 2013
• 16 •