Annual Report 2019/20

Sunshine Holdings utilises an effective governance framework to manage risk and our subsidiaries maintain their own risk management functions, ensuring that we maintain regulatory compliance, transparency, and accountability, avoid conflict of interest, and safeguard the integrity of our financial reporting and disclosures.

Headline risk Related risk Risk Risk control measure/mitigation action
1. Political Environment Changes in Government policies Price control of pharmaceutical and medical devices products by the Government Continuous negotiations with the principals to pass risk on price control to them through CIF reduction.

Volume driven revenue growth.

Revision of prices of non-controlled products.

Continuous negotiations with the Government to increase the MRP of price controlled products.
2. External Environment Exchange
rate risk
Potential losses as a result
of adverse exchange movement
Negotiation with principals to fix the exchange rate through the contracts.

Hedging techniques – Eg: Forward booking.

Price increase of uncontrolled products.
3. External Environment Import duty Price volatility arises mainly from global crude palm oil market forces and import
duty on crude palm oil
Monitoring of duty in collaboration with Pyramid Wilmar( Strategic partner).

Monitoring coconut prices and the production which affects the import duty of palm oil.

Improve efficiencies to sustain without the duty.
4. Strategic Social pressure against oil palm expansion Social pressure against oil palm expansion Public awareness campaigns.

Village integration programmes.

RSPO certification.

Engagement with pressure groups.
5. Strategic Government policy on palm oil
Obstacles to palm oil expansion due to Gvt. policy uncertainities such as red tape, suspensions etc. Engagement with government agencies.


Lobbying through Planters Association.
6. Strategic Climate change Unfavourable weather patterns, especially droughts, can hinder the achievement
of the expected crops
Follow sustainable agricultural practices including RSPO recommendations.

Conservation of environment and water resources.
7. Operational Environmental impact Environmental impact due
to factory/mill operations operations
Treatment of effluents.

Maintaining facultative ponds.

RSPO guidelines.
8. Operational Dairy business risks Manure and slurry management, waste water management Improve filtration system to reduce COD and
BOD level (Slurry pits, Bulk pit, Solid separator, Digesters, facultative ponds and earth ponds etc.)
9. Business Strategies and policies Market risk Market risk – Price volatility Price revision has already been taken via
consumer offer.

Trade activities and brand support have been strengthened.

Will continue to monitor impact of competitor activities