Contents. Group s Review. Financial Statements

Transcription

1 Group s Review 2 Mission Statement 4 Core Values 6 Chairman s Statement 10 Board of Directors 14 Chief Executive s Review 18 Senior Management 22 Organisational Structure 26 Chief Finance Officer s Message 28 Corporate Services 36 Corporate Energy Management 38 Corporate Social Responsibility 42 Property Management, Projects & Services 44 Financial Services Sector 48 Logistics, Engineering & Commerce Sector 54 Retail Sector 60 Seafood & Marine Sector 66 Corporate Governance Contents Financial Statements 74 Notice of Annual Meeting of the Shareholders 76 Certificate from the Company Secretary 77 Financial Summary 79 Value Added Statement 80 Other Statutory Disclosures 82 Subsidiaries of IBL 85 Auditors Report to the Shareholders 86 Balance Sheets 87 Income Statements 88 Statement of Changes in Equity 90 Cash Flow Statements 91 Notes to the Financial Statements 148 Proxy Form

2 Mission Statement 2

3 We recognise that our first responsibility is to our customers with whom we want to build a long-term business partnership by providing products and services that meet or exceed their expectations. We are responsible to our employees and are firmly committed to their development, advancement and involvement. As an equal-opportunity employer, we will reward merit and innovation fairly and will provide a safe and pleasant working environment. We will have competent management with the appropriate expertise, who will provide leadership, guidance and know-how and who will strive to best utilise resources to achieve corporate objectives. We are ultimately responsible for creating shareholder wealth at a rate sufficient for the Group to take full advantage of future market possibilities while satisfying the needs of customers, employees and principals. We will fully play our social role as a contributor towards the further development of Mauritius and of the region. We will continue to respect the environment and will act responsibly towards its improvement for future generations. 3

4 Core Values 4

5 Customer Focus External I am proactive in seeking customer feedback and I act upon it. I regularly involve my employees in listening and actioning customers feedback and take appropriate action. I implement customer-friendly procedures. Internal I treat my internal customers with respect and provide constructive feedback. I respect internal deadlines and dates on information requested. Quality I am committed to the development of my employees through regular coaching, training and appraising performance. I display leadership skills. I am open and fair; I promote teamwork involving my staff in decision making and business improvement; I empower my subordinates and give recognition. Think corporate I give preference to value for money Group services and products. I consider and discuss the corporate implications of my Business Unit decisions. Profitability I set challenging objectives, regularly monitor my performance and take timely corrective action. I conduct my business in the most cost-effective manner. Integrity I acknowledge my mistakes and do not look for scapegoats. I behave in a consistent manner towards bosses, colleagues and subordinates. I respect my commitments and am true to my word. I promote a clean, healthy, motivational and happy work environment. 5

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7 Chairman s Statement 7

8 Chairman s Statement Dear Shareholder, It is with pleasure that I am presenting to you the Annual Report One of the main features of the year under review has been the continuous growth of our Group turnover which reached Rs 12.9 billion, an increase of 10% over However, Group profits from operations decreased from Rs 663M last year to Rs 610M. The Group profit attributable to the shareholders amounted to a reduced Rs 300M compared to Rs 451M in 2007, thus decreasing the earning per share from Rs 6.32 to Rs The main reason for this substantial drop in profits is the reduction in the share of associate results from Sun Resorts Ltd. Moreover, in 2008, IBL incurred an additional final loss of Rs 107M concerning the Catovair operations. In spite of the strategic partnership with Air Austral, the necessary permits to operate as the second national carrier to fly both regional and long haul routes were never obtained from the authorities. It has therefore been decided to stop this activity. Finally, the Seafood Hub operations once more have not delivered the expected results during the year under review. Thon des Mascareignes Ltd, after starting the year on a good note, had a disappointing second half of the year. At Board level, we expect an improvement for As the company was undercapitalized, it was decided to increase the share capital by Rs 400M; on the operational front the year has started well. The brand new marine biotechnology plant was successfully commissioned in 2008 and the production of its promising added value Omega oil will start during The other sectors of the Group, namely Financial Services, Logistics, Engineering & Commerce (LEC) and Retail performed satisfactorily, as more fully described in the executives reports. For 2009, the year has started reasonably well but prospects remain difficult to predict due to the negative impact of the world economic crisis on our local economy. The other important feature of the year under review was the cautionary announcements made by the Company on the 5 September and the 30 December whereby some major transactions were announced at the level of both the disposal of some of IBL Group operations and the shareholding of the company. Unfortunately, in view of the high volatility of the stock market and present economic conditions, we have been unable to conclude the transactions proposed. The Group however remains focused on its core sectors of activity and the management team is undertaking the maximum to deliver the anticipated results to all our stakeholders. Capt. François Brousse de Gersigny has resigned from the Board, after having taken his well earned retirement 8

9 as an executive of the company. I would like to place on record my appreciation for his contribution to the Board for the last four years. Mr Gaetan Lan has been appointed to replace him and we welcome him on the Board. I would like to thank my fellow Board members for their advice and support as well as the CEO, management and staff for their hard work and loyalty during Arnaud Dalais Chairman 30 March

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11 Board of Directors 11

12 Board of Directors 12

13 DALAIS, Arnaud Non-Executive Chairman Group Chief Executive of CIEL Group. Director of Caudan Development Ltd, Promotion and Development Ltd, Sun Resorts Ltd and Alternate Director of Belle Mare Holding Ltd. DALAIS, Christian Non-Executive Director Previous Chief Executive Officer of the Company for the period Chairperson of Sun Resorts Ltd and Director of Ipro Growth Fund Ltd. DALAIS, Jean Pierre MBA Non-Executive Director Chief Executive Officer of CIEL Investment Ltd since Alternate Director of Sun Resorts Ltd and Phoenix Beverages Ltd. d HOTMAN de VILLIERS, Patrice B. COM Chief Executive Officer Chief Executive Officer since Chairperson of Mauritian Eagle Insurance Co Ltd and Director of Sun Resorts Ltd. Previously Chief Operating Officer of Mauritius Tuna Fishing and Canning Enterprises Ltd. HARDY, Bertrand Independent Non-Executive Director Chairperson of Rentacolor (Mauritius) Ltd. LAGESSE, Arnaud Maîtrise de Gestion Non-Executive Director Chief Executive Officer Groupe Mon Loisir. Chairperson of Naiade Resorts Ltd, Director of Mauritius Stationery Manufacturers Ltd, Mauritius Union Assurance Co Ltd and Phoenix Beverages Ltd, Alternate Director of United Basalt Products Ltd. LAGESSE, Thierry Maîtrise des Sciences de Gestion Non-Executive Director and Chairperson of the Company on numerous occasions Founder and Executive Chairperson of the Palmar Group of Companies, an international textile and garment manufacturing group and also of Parabole Reunion SA, a direct to home Satellite TV company in the media and communication fields across the islands of the Indian Ocean. Director of Ipro Growth Fund Ltd, Mauritius Stationery Manufacturers Ltd, Phoenix Beverages Ltd, Sun Resorts Ltd, Swan Insurance Co Ltd and United Basalt Products Ltd. LAN HUN KUEN, Gaetan FCA Chief Finance Officer of IBL Joined IBL in 1977 as Financial Controller of Shipping and became Group Financial Controller in Chief Executive Officer of Mauritian Eagle Insurance Co Ltd for the period 2001 to 2004 and Head of Finance for the IBL Group as from 2005 to date. Director of Mauritian Eagle Insurance Co Ltd, The Stock Exchange of Mauritius Ltd, Central Depository & Settlement Ltd. RIBET, Jean B. COM, CA (SA) Non-Executive Director Group Chief Executive Officer of Constance. Director of Belle Mare Holding Ltd. RIVALLAND, Louis B.SC. (HONS.) (SA), F.I.A. (UK), F.A.S. (SA) Non-Executive Director Group Chief Executive, Swan Group and The Anglo- Mauritius Assurance Society Ltd, Director of Belle Mare Holding Ltd, Mon Desert Alma Ltd, Naiade Resorts Ltd, New Mauritius Hotels Ltd, Swan Insurance Company Ltd, The General Investment and Development Company Ltd and The Mauritius Development Investment Trust Company Ltd. LAGESSE, J. Cyril Non-Executive Director Chairperson of the Company on a number of occasions. Director of Mauritius Stationery Manufacturers Ltd, Naiade Resorts Ltd, Phoenix Beverages Ltd, Sun Resorts Ltd, Swan Insurance Ltd and United Basalt Products Ltd. 13

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15 Chief Executive s Review «The new organisation structure put in place in January 2007 has been performing well during Group turnover has reached Rs 12.9 billion (a 10% increase on 2007). This increase in turnover has occurred in all sectors.» 15

16 Chief Executive s Review Dear Shareholder, I am pleased to present to you hereunder the results of the various sectors of the Group for Group Turnover Group Profi t from Operations (Rs M) (Rs M) Financial Services 1,297 1, Logistics, Engineering & Commerce 5,372 5, Retail* 2,938 2, Seafood & Marine 3,215 2, Corporate Services & Others** ( 182 ) 47 12,910 11, Share of Associated Companies * Including properties where Winner s operates (IBL Properties). ** Including losses suffered by Catovair s operations. The new organisation structure put in place in January 2007 has been performing well during Group turnover has reached Rs 12.9 billion (a 10% increase on 2007). This increase in turnover has occurred in all Sectors as reflected above. The detailed review of the operations is contained in each respective Chief Operating Officer s (COO) review and a financial overview which is covered in the Chief Finance Officer s (CFO) message. The Financial Services Sector has shown an outstanding growth in profits from operations from Rs 100M in 2007 to Rs 171M in 2008 (71% increase). During the year, the global business grew by the acquisition of a 51% stake in Knights & Johns Management Ltd (KJM) which operates mainly in the same sector but with a complementary client portfolio. The general and life insurance arm had a 31% increase in profitability, whilst leasing activities posted a reduced level of profitability due to additional provision for asset impairment. The Logistics, Engineering & Commerce Sector also performed well. Turnover increased by 5% and profits grew by 8%. 16

17 As for the Retail Sector, there have been two Winner s openings during 2008 Rose Hill and Rose Belle. We now operate a total of 16 Winner s supermarkets strategically located throughout the island. Turnover increased by 19% to Rs 2.9 billion and the results have been satisfactory. The Seafood & Marine Sector has shown an improvement in profitability in At Thon des Mascareignes, an average production of 175MT per day was produced which is below the capacity of 250MT per day. The shortage of supply of fish in 2007 was a great source of concern, but this has been re-established and our relationships with our two main co-packers have been strengthened. Our focus on the value-added products remains a priority. The reduction in the results of our associated companies is largely due to Sun Resorts Ltd. I would like to place on record my sincere appreciation to Capt. François Brousse de Gersigny, who retired in December 2008 after having been the Chief Operating Officer for Seafood & Marine Sector and previously responsible for our Shipping, Aviation and Other Services. My thanks also go to the management and employees of the Group for their hard work during In 2009, we will need the total dedication of each employee so that, together, we can grow stronger and reinforce our position as a leader in the market. Patrice d Hotman de Villiers 30 March 2009 On the Aviation side (Catovair), in spite of the strategic partnership with Air Austral, we have not obtained from the Authorities our permits to operate as the second national carrier to fly both regional and long haul routes. Thus, we have decided to stop this activity and have taken an additional final loss of Rs 107M. Our gearing ratio has improved from 52% last year to 50%. The tight monitoring of fund usage has yielded positive results and management is continuously striving at measures to reduce further the gearing. 17

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19 Senior Management 19

20 Senior Management 20

21 DESMARAIS, François Sc. Po, PMD Chief Operating Officer Property Management, Projects & Services Joined the Company in 1979 as Coordinator of the Commercial Division and subsequently became the Executive Director in charge of the Commercial Division. He was appointed Senior Executive of Large Projects, Services & Property Management. Since January 2007 he is dedicated to the development of the Group s properties. LAN HUN KUEN, Gaëtan FCA Chief Finance Officer Joined in 1977 as Financial Controller of Shipping and became Group Financial Controller in Chief Executive Officer of Mauritian Eagle Insurance Co Ltd for the period 2001 to 2004 and Head of Finance for the IBL Group as from 2005 to date. Director of Mauritian Eagle Insurance Co Ltd, The Stock Exchange of Mauritius Ltd, Central Depository & Settlement Ltd. MERLO, Fabrizio BComm, MBA Chief Operating Officer Logistics, Engineering & Commerce Joined in 1997 as Managing Director of Manser Saxon Co Ltd. In 2005, he became Senior Executive for Contracting and Agriculture & Construction. In 2006 he was also responsible for Scomat Ltee. In addition, and with effect from January 2007, he is the COO of Logistics, Engineering & Commerce Sector. MERVEN, Nicolas Diplôme Universitaire de Technologie Chief Operating Officer Retail Joined in 1994 as Manager to launch the Winner s chain of supermarkets. Then for 10 years was the Senior Executive of the Food and Distribution Business Unit. Since January 2007, he is responsible for the implementation of an important development plan for the chain of supermarkets which now comprises 16 units. REY, Simon-Pierre BA (Hons.) Econ, ACA Chief Operating Officer Corporate Services Joined in 1986 as Financial Controller Tourism and was Finance Director of the Group in Cumulated the position of Company Secretary as from As from January 2007, responsible for Legal & Secretarial, Human Resources & Communication and IT. Director of Mauritian Eagle Insurance Co Ltd, Sun Resorts Ltd and Mount Sugar Estates Ltd. VENPIN, Eric FCA Chief Operating Officer Financial Services Managing Director of Mauritian Eagle Insurance Co Ltd Joined in 2003 as Director of DTOS Ltd and moved to Mauritian Eagle Insurance Co Ltd in As from January 2008, he is Chief Operating Officer of Financial Services, responsible for DTOS, Mauritian Eagle Insurance and Mauritian Eagle Leasing. He is also a member of the Society of Trust and Estate Practitioners. 21

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23 Organisational Structure 23

24 Organisational Structure 24

25 CNOI Froid des Mascareignes Marine Biotechnology Global Business Mauritian Eagle Insurance Mauritian Eagle Leasing Winner s Mer des Mascareignes Thon des Mascareignes Ship Owning & Management Financial Services Retail Seafood & Marine Finance HEAD OFFICE Corporate Services Corporate Finance Forex Management Taxation Treasury Logistics, Engineering & Commerce Legal & Secretarial Human Resources & Communication Information Technology Property Management, Projects & Services Commerce Engineering Logistics Consumer Goods Frozen Foods Healthcare Blychem Construction & Material Handling Electrical & Commercial Supplies Manson Saxon Scomat Airline representations & Travel Agency Logidis Shipping Agencies Somatrans & Courrier Express 25

26 Finance Corporate Entity Management Team Gaëtan Lan Hun Kuen - Chief Finance Officer Derek Wong Wan Po - Group Finance Manager Nily Bunwaree - Senior Manager - Compliance Philippe Danré - Group Credit Controller Rajiv Gujjalu - Manager - Corporate Treasury Djilani Hisaindee - Group Taxation Manager Kersley Hong Lin - Head Office Accountant Message from the Chief Finance Officer The profit from operations of the Group for 2008 was not overly affected by the global financial crisis. However, earnings from the tourism activity through the associated investment Sun Resorts Limited encountered a drop following the downturn registered in this sector. In spite of the difficult economic conditions, the Group has maintained its investment strategy with notable capital expenditure during the year in two of the identified areas of development, namely Retail and Seafood. Further sites were acquired for the Winner's chain of supermarkets and two new shops were opened in the course of the year. The chain registered a 19% increase in its turnover which has now reached almost Rs 3 billion. In spite of the marginal result registered in the Seafood Sector following the poor fishing campaign of the second semester, additional investments were made in new equipment and technology to develop further the range of high value-added products. The production of fish protein from offals is now well under way and results are quite promising. The production of fish oil for its eventual use in the pharmaceutical industry is scheduled for the second half of This is expected to bring additional value to the enterprise which is already generating revenue in excess of Rs 3 billion. The planned restructuration which would have generated funds for these projects could not go through because of the volatile market conditions. Hence, additional borrowings were necessary which have resulted in an 26

27 increase of 6% to the finance charges. However, the outlook in the short to medium term is the Repo rate will drop further in an attempt to counteract the effects of the crisis. This would have a positive effect on the borrowing costs. Management has furthermore taken measures to mitigate the potential impact of the difficult business conditions ahead. Within such an economic environment, the Group has engaged itself in the vital exercise of driving down costs for more efficiency without damaging the business. Although the feeling of a "credit crunch" is not there yet banking institutions are more rigorous in granting credit which makes the optimisation of cash resources even more essential. The tight monitoring of fund usage has yielded positive results in 2008 with an improvement of the gearing to 50% from 52% last year. The effort is continual. On a short term perspective, the early part of 2009 should bring about satisfactory results. Assuming that the economic conditions attached to the activities of the Group do not suffer any further material deterioration, the performance for the coming year should meet management expectations. Gaëtan Lan Hun Kuen Chief Finance Officer Rs Group Share Price Rs billion Net Asset Value % Gearing

28 Corporate Services Simon-Pierre Rey - Chief Operating Officer Management Team Doris Dardanne - Assistant Company Secretary Legal & Secretarial Sylvette Godère - General Manager Human Resources Sareeta Goundan - Senior Manager Information Technology Cécile Masson - Senior Manager PR & Communication Corporate Services mission is to cater professionally for the business needs of the Group in the following areas: 1. Legal & Secretarial 2. Human Resources 3. Information Technology 4. PR & Communication Legal & Secretarial All secretarial and legal duties for about 100 Group Companies, including three quoted entities on the Stock Exchange of Mauritius, are performed by a small dedicated and focused team. Human Resources 2008/2009 has been rich in new legislation: (a) Occupational Safety & Health Act 2005; (b) The Employees Right Act and Employees Relations Act; (c) Public Health (Restriction on Tobacco products) Regulations The Human Resources Corporate Unit is at the forefront in the implementation of the above laws together with the operational HR Managers. Training and development of our human resources remain critical in order to develop and retain our talents. I would like to refer you to the report done by Mrs Sylvette Godère, General Manager HR. 28

29 Information Technology (IT) With a team of about 45 highly skilled professionals, IT is an ISO 9001:2000 certified operation since We are concentrating our efforts in order to obtain the ISO Certification during Three key projects have been identified to be completed during 2009: Appreciation I would like to thank the management and staff of the Corporate Services Unit for their hard work during Simon-Pierre Rey Chief Operating Officer (a) IBL Network Infrastructure; (b) Information Security Management System (ISMS); (c) Business Continuity Plan (BCP). Please refer to the report done by Mrs Sareeta Goundan, Senior Manager Information Technology. PR & Communication This unit was strengthened at the beginning of The key result areas are as follows: (a) Promotion and management of IBL as a brand; (b) Improve Internal Communications; (c) Develop a Corporate Social Responsibility (CSR) programme; (d) Improve public relations. Please refer to the report done by Mrs. Cécile Masson, Senior Manager Communication. 29

30 Corporate Services (continued) Human Resources CORPORATE UNIT Review of Activities The Human Resources Corporate Unit has remained at the forefront of all the challenges, conscious of the changing requirements of the Group in an ever changing environment and conscious that it had to deal creatively and pragmatically with these emerging challenges. IBL has continued to show its commitment towards the safety and health of its employees and the public at large as stated in its Group Safety & Health Policy. With the Safety & Health Officers on board now, relevant on-site safety training and awareness sessions were held for employees in offices and other work premises with a view to increasing the level of Safety and Health Standards. Much emphasis was laid on the new provisions of the Occupational Safety & Health Act 2005 viz Fire Safety at work and Manual Lifting techniques; Practical Safety courses were organised on Defensive Driving, safe operation of forklifts and first aid at work. This year 35 more employees have been trained as first aiders, added to the already trained 32 they were taught how to use blood pressure monitors bought through out the Group. Last June, an awareness session on HACCP (Hazard Analysis & Control of Critical Ponts) was organised for all personnel working at L Ibeloise Restaurant in order to maintain high standard of food safety. 22 batches of new employees have undergone safety induction upon joining the company. With the collaboration of Safety & Health Officers in different sectors, Safety & Health Committees were held to set formal consultation between employees and management on safety and health matters. Fire drills were conducted to ensure safe evacuation of employees in case of fire. Following risk assessment carried out in hazardous operations mainly in the Engineering Sector, appropriate control measures have been implemented including the setting of a health surveillance programme to minimize health risks to employees. Some 1,400 employees of the Seafood Sector had their medical check up. Safety Rules and Guidelines have been devised for contractors working on IBL sites and premises to ensure good conduct of works and the safety of employees not in our employment. Even constrained by limited budget, we adopted a strategic approach to Training and Development, more focus has been laid on technical and on-the-job training across different sectors i.e. the acquisition and consolidation of specialised skills, techniques and knowledge to upgrade job competencies and performance in the workplace. With the assistance of one of our major training partners, the Charles Telfair Institute, emphasis has been put on the upgrading management and leadership skills of managers and team leaders to develop right people in the right leadership competencies with the right methodologies. Now fully functional, the Human Resource Information System (HRIS) gives not only to managers but to all employees convenient access to much data and information. The Employee Self Service operational through the IBL Portal gives general information and latest news on the Group and job opportunities among others. Two main modules are now running, namely: Employee Information System and the Training Management System. 30

31 Prospects In view of the difficult economic and financial situation and the major changes in our labour laws, there is more than ever a need to rethink the human resource strategy which should align itself to the business imperatives. We are increasingly being called upon to help implement business strategies and facilitate organisational change. With the promulgation of the new labour laws, The Employees Rights Act and The Employees Relations Act in February this year, increased challenges face both employer and employees. Flexibility introduced can be seen as an essential ingredient in the ERia for an effective workplace and can help companies survive the current economic crisis. However maturity should prevail to enhance harmonious relations through negotiation. Investing in training and development of staff is more important than ever in the current economic climate, say many experts. It is crucial to concentrate on developing and retaining the vital skills and knowledge in people, as well-trained and motivated staff improves the productivity of the business. When the economic climate improves, we should be ready to meet new challenges and develop business opportunities fast. We will turn training activities into development programmes that will make a lasting difference to the Company and to the individual. The employer s contribution to the HRDC levy has been raised from 1 to 1.5% which comprises only 0.5% to be refunded to the employers through the training levy system and the remaining 1% goes to the Empowerment Fund for unemployed people. It is therefore important to fully optimise the use of the HRDC levy in meaningful and job-related training and development programmes and at the same time management should invest more time in coaching and guiding staff. To strengthen our safety culture, safe working procedures are being reviewed not only to help management comply with new legal provisions but also to promote a risk free environment; a Safety & Health Manual for IBL employees will soon be released. With the recent promulgation of the Public Health (Restriction on Tobacco Products) Regulations 2008, every effort will be made to ensure strict adherence to No Smoking at the workplace. Appropriate locations have been identified for smokers. With the introduction of the concept of Maurice Ile Durable, the IBL Environment Charter will need to be revamped in line with the energy-saving measures being initiated across the Group. The Human Resources Corporate Unit is prepared to be THE Business Partner effective in its roles: to link business strategy to HR practices, to create efficient HR and business processes, to relate and meet the needs of employees and to create capacity for change. Appreciation The increased demands on HR have helped to knit more closely members of the HRCU team. Without their commitment and professionalism, it would have been difficult to face the challenges. Sylvette Godère General Manager 31

32 Corporate Services (continued) Information and Technology CORPORATE UNIT Review of Activities Year 2008 has been a year of sustained progress in line with our continuous improvement plan while maintaining our strategy to focus on the Group s IT requirements. Our organizational structure has been adapted to promote cross functionality which has created interdepartmental synergies as well as improvement of our processes and services with better focus on strategic imperatives, especially customer satisfaction. Projects, which have been successfully deployed, have enabled operations to derive the desired benefits by aligning business objectives with IT capabilities. A Treasury Management System, fully integrated with the Group s ERP, with the objective to better monitor daily asset and liability position, manage currency risks and exposure, track daily treasury flows, monitor inter-company facilities and assess forecasted funds requirements. Leasing & Deposit Management Systems. Taxi Online Services, a web-based application to process and manage on-line bookings, reservations including multi currency online payment facilities. Re-engineering of the Training Management System streamlined with the requirements of the Training Department as well as the roll-out of the Employee Information System, integral modules of the Employee Self Service. Payroll and Time & Attendance System in one of the Manufacturing Units. Re-engineering of the Cabling and Telephony infrastructure of the IBL House and Data Centre. Cabling, Networking and Telephony infrastructure in one of the new processing plants. As part of our R&D Policy, we have designed and developed an in-house Human Resource Management System which has enhanced our existing Payroll Package. In line with our objective to improve the efficiency and effectiveness of our systems and uplifting of our IT services and infrastructure, we have already embarked on the three key projects in year 2008 and which will be pursued in year 2009: IBL Network Infrastructure Project This project for a new secure, manageable, scalable and redundant network infrastructure, planned for 2008 but temporarily put on hold, has been re-initiated by end of 2008 with some changes brought in terms of technology preferences for WAN connectivity, as per current technological trends. Information Security Management System (ISMS) based on the ISO standard - This project is designed for building effective Security for business information. In today s competitive business environment, information which is considered as the organisation lifeblood, is constantly under threat from various sources internal, external, environmental or malicious. Protecting information assets has therefore become vital for any organisation future. 32