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  • Company No.

    277714 A

    GIBRALTAR BSN LIFE BERHAD (Incorporated in Malaysia) FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 1298A8/lh

  • Company No.

    277714 A

    GIBRALTAR BSN LIFE BERHAD (Incorporated in Malaysia)

    FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 CONTENT PAGES Directors Report 1 16 Statement by Directors 17 Statutory declaration 17 Independent auditors report 18 - 21 Financial statements

    Statement of financial position 22 - 23

    Statement of income 24 Statement of other comprehensive income 25

    Statement of changes in equity 26

    Statement of cash flows 27

    Notes to the financial statements 28 107

  • Company No.

    277714 A

    1

    GIBRALTAR BSN LIFE BERHAD (Incorporated in Malaysia)

    DIRECTORS REPORT The Directors have pleasure in submitting their report together with the audited financial statements of the Company for the financial year ended 31 December 2017. PRINCIPAL ACTIVITY The Company is engaged principally in the underwriting of life insurance business including investment-linked business. There has been no significant change in the nature of this activity during the financial year. FINANCIAL RESULTS RM000 Loss for the financial year (45,913)

    DIVIDENDS No dividend has been declared or paid by the Company since the end of the previous financial statements. The Directors do not recommend the payment of any dividend for the current financial year. RESERVES AND PROVISIONS All material transfers to or from reserves and provisions during the financial year are disclosed in the financial statements. SHARE CAPITAL There was no issuance of new ordinary shares during the financial year. PROVISION FOR INSURANCE LIABILITIES Before the financial statements of the Company were made out, the Directors took reasonable steps to ascertain that there was adequate provision for its insurance liabilities in accordance with the valuation methods specified in Part D of the Risk-Based Capital Framework (RBC Framework) for Insurers issued by Bank Negara Malaysia (BNM).

  • Company No.

    277714 A

    2

    GIBRALTAR BSN LIFE BERHAD (Incorporated in Malaysia)

    DIRECTORS REPORT (CONTINUED) BAD AND DOUBTFUL DEBTS Before the financial statements of the Company were made out, the Directors took reasonable steps to ascertain that action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts, and satisfied themselves that all known bad debts had been written off and adequate allowance had been made for doubtful debts. At the date of this report, the Directors are not aware of any circumstances that would render the amount written off for bad debts or the amount of the allowance for doubtful debts in the financial statements of the Company inadequate to any substantial extent. CURRENT ASSETS Before the financial statements of the Company were made out, the Directors took reasonable steps to ensure that any current assets, which were unlikely to be realised in the ordinary course of business, their values as shown in the accounting records of the Company have been written down to an amount which they might be expected to realise. At the date of this report, the Directors are not aware of any circumstances which would render the values attributed to current assets in the financial statements of the Company misleading. VALUATION METHODS At the date of this report, the Directors are not aware of any circumstances which have arisen which render adherence to the existing methods of valuation of assets or liabilities of the Company misleading or inappropriate. CONTINGENT AND OTHER LIABILITIES At the date of this report, there does not exist: (a) any charge on the assets of the Company that has arisen since the end of the financial year

    which secures the liabilities of any other person; or (b) any contingent liability in respect of the Company that has arisen since the end of the

    financial year. No contingent or other liability of the Company has become enforceable or is likely to become enforceable within the year of twelve month after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Company to meet its obligations as and when they fall due. For the purpose of this paragraph, contingent or other liabilities do not include liabilities arising from contracts of insurance underwritten in the ordinary course of business of the Company.

  • Company No.

    277714 A

    3

    GIBRALTAR BSN LIFE BERHAD (Incorporated in Malaysia)

    DIRECTORS REPORT (CONTINUED) CHANGE OF CIRCUMSTANCES At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Company which would render any amount stated in the financial statements misleading. ITEMS OF AN UNUSUAL NATURE The results of the operations of the Company during the financial year were not, in the opinion of the Directors, substantially affected by any item, transaction or event of a material and unusual nature other than those disclosed in the financial statements. There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect substantially the results of the operations of the Company for the year in which this report is made. CORPORATE GOVERNANCE The Company, with the leadership of the Board of Directors (the Board), has adopted the necessary measures to ensure that the corporate and management practices are consistent with the regulatory requirements and best practice standards ordained under BNM/RH/PD/029-9: Corporate Governance issued by BNM. The Companys policy is to achieve best practices in their business standards for all activities throughout the Company and good corporate governance, which the Board fully recognises to be one of its principal responsibilities to protect and enhance shareholder value and financial performance of the Company. (a) Key issues and aspects Key elements of the industrys corporate governance captured by the Frameworks are:

    i. An effective and balanced Board appointed through a predetermined appointment procedure;

    ii. Executive remuneration set by the Remuneration Committee that attracts and retains the people needed to run the Company;

    iii. A sound system of internal controls that safeguards the Companys assets and investments, and identifies and manages business risks; and

    iv. The process in respect to disclosure of conflict of interest situation where arising. The Companys commitment to the corporate governance standards entails the following:

    i. The Board currently comprises seven directors represented by four independent non-executive, one non-independent non-executive and two executive directors of calibre, with the necessary skills and diverse corporate experience to ensure that strategies proposed by the management are fully discussed and examined as well as to take into account the long term interests of various stakeholders.

  • Company No.

    277714 A

    4

    GIBRALTAR BSN LIFE BERHAD (Incorporated in Malaysia)

    DIRECTORS REPORT (CONTINUED) CORPORATE GOVERNANCE (CONTINUED) (a) Key issues and aspects (continued)

    ii. Executive remuneration is set by the Remuneration Committee. The Companys executive remuneration policy is to reward employees competitively, taking into account individual performance, company performance, market comparisons and the competitiveness in the local insurance industry. Remuneration packages are reviewed annually and comprise a mix of basic salary and performance-linked elements.

    iii. The Board is responsible for the Companys system of internal controls and risk management, and reviewing the effectiveness of these systems which are designed to proactively manage, rather than eliminate, the risk of failure to achieve sustainable business objectives. In achieving this, the following are put in place:

    the Risk Management Committee which oversees and provides overall direction on risk management efforts;

    a system of financial and business controls which provides regular reports by the Chief Financial Officer (CFO) and the Chief Executive Officer (CEO) to the Board;

    regular assessments of internal controls by the Companys internal audit department; and

    review of the effectiveness of the internal control processes by the Audit Committee, on behalf of the Board.

    (b) Board responsibilities The Board is ultimately responsible for the Companys strategic direction and overseeing

    the performance of the Company. Its focus is on the following:

    i. Strategic plan ii. Organisation development iii. Shareholder value iv. Oversight and control v. Corporate governance

    (c) Supply of information The Board is mindful that its strategic focus on matters relating to their business and its

    exposures should be based on informed decisions. Hence, all the Directors are provided with the meeting agenda and Board reports well ahead of Board meetings. This is to enable the Directors to obtain further explanations, where necessary, in order to be briefed properly before the meeting. As and when necessary, the Board, in furtherance of their duties may seek independent professional advice at the Companys expense. All the Directors have access to the advice and services of the Company Secretary.

  • Company No.

    277714 A

    5

    GI