68
ANNUAL REPORT 2016
Report of the Audit & Risk Management Committee
The performance evaluation demonstrated a satisfactory result to the ARC and recommendation was made to the Board for the re-appointment of
the External Auditors. The Board has accepted this recommendation and a resolution for the re-appointment will be put to the shareholders at the
forthcoming 25th AGM of the Company.
RECURRENT RELATED PARTIES TRANSACTIONS OF REVENUE OR TRADING NATURE (RRPT)
During the FY2016, the ARC also closely monitored all the RRPT undertook by Bonia Group and concluded that those RRPT were conducted on
arm’s length basis, under normal commercial terms consistent with the Group’s business practices, on terms not more favourable to the related
parties than those generally available to the public and were not to the detriment of the minority shareholders of the Company.
The class and nature of the RRPT of Bonia Group are tabulated as follows:
RRPT
No.
Transacting
Party
Related Party
Nature of transactions
Value
transacted
during the
FY2016
RM’000
Estimated aggregate
value during the
validity period of the
shareholders’ mandate
obtained on 25.11.2015
RM’000
1 Bonia Group Cassardi International Co. Ltd.
(“CICL”)
Purchase of men’s apparels and
payment of Valentino Rudy trade
mark royalty to CICL
697
N/A
2 Bonia Group Bonia International Holdings
Pte Ltd (“BIHP”)
Payment of Bonia, Carlo Rino,
Sembonia and CR2 trademarks
royalties to BIHP
3,107
4,600
3 Bonia Group Long Bow Manufacturing (S)
Pte Ltd (“LMS”)
Payment of rental to LMS
1,839
2,000
Notes:
RRPT 1:
Fall within the interpretation of Paragraph 10.08(9) of the Main Market Listing Requirements of Bursa
Malaysia Securities Berhad
RRPT 2 and 3 :
Actual value transacted up to 30 June 2016 did not exceed the estimated aggregate value during the
validity period of the shareholders’ mandate obtained on 25 November 2015 by 10%
RRPT 1 :
Interested related party - Boonnam Boonnamsap, a substantial shareholder of Bonia’s subsidiary and
persons connected with him (including their family)
RRPT 2 and 3 :
Interested related party - As mentioned in the notes of Sections 3.2 and 4 of Part B of the Company’s
Circular to Shareholders dated 29 October 2015
CONCLUSION
The Board is of the view that the ARC and all its members have discharged their duties and responsibilities effectively and will place great efforts
to maximise the quality of the risk management, internal control and governance framework of the Group from time to time.
