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ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD 389769-M I ANNUAL REPORT 2019
NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN THAT the Twenty-Third Annual General Meeting (“23rd AGM”) of Oriental Food Industries
Holdings Berhad will be convened and held at Tiara Banquet Hall, Tiara Melaka Golf and Country Club, Jalan Gapam,
Bukit Katil, 75760 Melaka on Wednesday, 28 August 2019 at 2.30 p.m. to transact the following businesses:-
AGENDA
ORDINARY BUSINESS
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together with the Directors’ and Auditors’ Reports thereon.
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year ended 31 March 2019.
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Directors’ fees) up to an amount of RM135,000.00 to the Directors with effect from 29
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4. To re-elect the following Directors, each of whom retires by rotation in accordance with
Article 75 of the Constitution of the Company:-
4.1 Tan Sri Dato’ Azizan Bin Husain (Resolution 3)

4.2 Mr Lim Hwa Yu (Resolution 4)
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ending 31 March 2020 and to authorise the Directors to determine their remuneration.
SPECIAL BUSINESS
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6. $SSURYDOWR&RQWLQXH,Q2I¿FHDVDQ,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRU (Resolution 6)
“THAT Tan Sri Dato’ Azizan Bin Husain who has served the Board as an Independent Non-
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since 8 June 2000 be and is hereby retained and will continue to act as the Independent
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“THAT Datuk Jeffery Ong Cheng Lock who has served the Board as an Independent Non-
([HFXWLYH'LUHFWRURIWKH&RPSDQ\IRUDFXPXODWLYHWHUPRIPRUHWKDQWZHOYH\HDUV
since 14 May 2007 be and is hereby retained and will continue to act as the Independent
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Director of the Company for a cumulative term of more than twelve (12) years since 23
February 1999 be and is hereby retained and will continue to act as the Independent Non-
([HFXWLYH'LUHFWRURIWKH&RPSDQ\´
2
9. $XWKRULW\WR$OORW6KDUHVSXUVXDQWWR6HFWLRQVDQGRIWKH&RPSDQLHV$FW (Resolution 9)
“THAT subject always to the Companies Act, 2016 (“the Act”), the Main Market Listing
Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”), the Company’s
Constitution and the approval of the relevant government/regulatory authorities, the
Directors be and are hereby empowered pursuant to Sections 75 and 76 of the Act to
issue and allot new shares in the Company at any time at such price, upon such terms and
conditions, for such purposes and to such person(s) whomsoever as the Directors may in
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10% of the total number of issued shares of the Company for the time being AND THAT the
Directors be and are also empowered to obtain the approval from Bursa Securities for the
listing of and quotation for the additional shares so issued AND THAT such authority shall
commence immediately upon the passing of this Resolution and continue to be in force until
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10. 3URSRVHG5HQHZDORI6KDUHKROGHUV¶0DQGDWHIRU5HFXUUHQW5HODWHG3DUW\7UDQVDFWLRQV (Resolution 10)

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“THAT authority be and is hereby given in line with Paragraph 10.09 of the Main Market
Listing Requirements of Bursa Securities for the Company and/or its subsidiaries to
enter into any of the transactions falling within the types of the Recurrent Related Party
Transactions, particulars of which are set out in Part A, Circular to Shareholders dated
31 July 2019, with the Related Parties as described in the said Circular, provided that
such transactions are of revenue or trading nature, which are necessary for the day-to-day
operations of the Company and/or its subsidiaries within the ordinary course of business
of the Company and/or its subsidiaries, made on an arm’s length basis and on normal
commercial terms which are generally available to the public and are not detrimental to the
minority shareholders of the Company;
AND THAT such authority shall commence immediately upon the passing of this Resolution
until:
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lapse, unless by Ordinary Resolution passed at a general meeting, the authority is
renewed; or
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may be allowed pursuant to Section 340(4) of the Act; or
iii. revoked or varied by a Resolution passed by the shareholders of the Company at a

general meeting,
whichever is earlier.
AND FURTHER, THAT the Board of Directors be and is hereby authorised to do all acts,
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to implement the Proposed Shareholders’ Mandate with full power to assent to all or any
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by any relevant authorities or otherwise and to deal with all matters relating thereto and
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all such documents, agreements, arrangements and/or undertakings, with any party or
SDUWLHVDQGWRFDUU\RXWDQ\RWKHUPDWWHUVDVPD\EHUHTXLUHGWRLPSOHPHQW¿QDOLVHDQG
complete, and give full effect to the Proposed Shareholders’ Mandate in the best interest of
the Company.”
3
11. 3URSRVHG5HQHZDORI6KDUH%X\%DFN$XWKRULW\IRUWKH3XUFKDVHE\WKH&RPSDQ\RI (Resolution 11)

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THAT, subject to the compliance with Section 127 of the Act, the provisions of the
Constitution of the Company, the Main Market Listing Requirements of Bursa Securities
and all other applicable laws, guidelines, rules and regulations, the Company be and
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ordinary shares in the Company as may be determined by the Board of Directors of the
Company from time to time through Bursa Securities upon such terms and conditions as
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that:-
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total issued and paid-up share capital of the Company as quoted on Bursa Malaysia
as at the point of purchase;
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QRW H[FHHG WKH DJJUHJDWH RI UHWDLQHG SUR¿WV RI WKH &RPSDQ\ EDVHG RQ WKH ODWHVW
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(where applicable) available at the time of the purchase(s); and
iii. the Board of Directors of the Company may decide either to retain the shares
purchased as treasury shares or cancel the shares or retain part of the shares so
purchased as treasury shares and cancel the remainder or to resell the shares or
distribute the shares as dividend.
THAT such authority shall commence upon the passing of this resolution and shall continue
to be in force until:
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unconditionally or subject to conditions; or
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law to be held; or
c. revoked or varied by ordinary resolution passed by the shareholders of the Company

in general meeting,
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AND THAT authority be and is hereby given unconditionally and generally to the Board of
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without limitation, the opening and maintaining of central depository account(s) under
Securities Industry (Central Depositories) Act, 1991, and the entering into all other
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and give full effect to the aforesaid purchase with full powers to assent to any conditions,
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authorities and with the fullest power to do all such acts and things thereafter (including
without limitation, the cancellation and/or retention and/or distribution and/or selling of all
or any part of the purchased shares in accordance with the Companies Act, 2016, the
provisions of the Constitution of the Company and the requirements and/or guidelines of
Bursa Securities for the Main Market and all other relevant governmental and/or regulatory
authorities.”
12. To transact any other business of the Company which due notices shall be given in
accordance with the Constitution of the Company and the Companies Act, 2016.
4
BY ORDER OF THE BOARD
.$5,1$&+21*0(,<,1*(LS 0009542)
CHAN SAU LENG (MAICSA 7012211)
58=(7,(0$5%,17,02+'526/,(LS 0010372)
Joint Secretaries
Selangor Darul Ehsan
31 July 2019
NOTES:
1. In respect of deposited securities, only members whose names appear in the Record of Depositors as at 20 August 2019
(“General Meeting Record of Depositors”) shall be eligible to attend and vote at the Meeting.
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HDFKSUR[\
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authorised nominee may appoint in respect of each omnibus account it holds.
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duly authorised.
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7KH LQVWUXPHQW DSSRLQWLQJ D SUR[\ PXVW EH GHSRVLWHG DW WKH 5HJLVWHUHG 2I¿FH DW /HYHO 6\PSKRQ\ +RXVH %ORFN '
Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor Darul Ehsan not less than twenty-four (24) hours
before the time appointed for holding the meeting or any adjournment thereof as Paragraph 8.29(A) of the Main Market Listing
Requirements of Bursa Securities requires all resolutions set out in the Notice of General Meeting to be put to vote by poll.
3UR[\DSSRLQWHGWRDWWHQGDQGYRWHDWDPHHWLQJRIWKH&RPSDQ\VKDOOKDYHWKHVDPHULJKWVDVWKHPHPEHUWRVSHDNDWWKH
meeting.
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By submitting an instrument appointing a proxy(ies) and/or representative(s) to attend, speak and vote at the AGM and/
or any adjournment thereof, a member of the Company (i) consents to the collection, use and disclosure of the member’s
personal data by the Company (or its agents) for the purpose of the processing and administration by the Company (or its
agents) of proxies and representatives appointed for the AGM (including any adjournment thereof), and the preparation and
compilation of the attendance lists, minutes and other documents relating to the AGM (including any adjournment thereof),
and in order for the Company (or its agents) to comply with any applicable laws, listing rules, regulations and/or guidelines
(collectively, the “Purposes”); (ii) warrants that where the member discloses the personal data of the member’s proxy(ies)
and/or representative(s) to the Company (or its agents), the member has obtained the prior consent of such proxy(ies) and/or
representative(s) for the collection, use and disclosure by the Company (or its agents) of the personal data of such proxy(ies)
and/or representative(s) for the Purposes; and (iii) agrees that the member will indemnify the Company in respect of any
penalties, liabilities, claims, demands, losses and damages as a result of the member’s breach of warranty.
5
EXPLANATORY NOTES ON SPECIAL BUSINESS:
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This agenda item is meant for discussion only as the provision of Section 340(1)(a) of the Act requires the
Statutory Financial Statements to be laid at the AGM. As such, this agenda item does not require shareholders’
approval and hence, is not put forward for voting.
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WRWKH'LUHFWRUVIURP$XJXVWXQWLOWKHQH[W$*0RIWKH&RPSDQ\ZKLFKFRPSULVHWKHIROORZLQJV
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Meeting Allowance for RM500.00 per meeting RM500.00 per meeting Not Applicable
attendance of Board and
Board Committee Meetings,
and general meetings
Monthly Claims RM27,720.00 per annum Not Applicable Not Applicable
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At the same time, the Board of Directors also has recommended Tan Sri Dato’ Azizan Bin Husain, Datuk Jeffery
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for a cumulative term of more than twelve (12) years since 8 June 2000, 14 May 2007 and 23 February 1999
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through a two-tier voting process at the 23rd AGM of the Company.
The Board of Directors has via the Nomination Committee conducted an annual performance evaluation and
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Main Market Listing Requirements, and therefore are able to bring independent and objective judgement to
the Board;
ii. They have been with the Company for more than twelve (12) years and therefore understand the Company’s
business operations which enable them to participate actively and contribute during deliberations or
discussions at the Meetings;
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decision making; and
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RI WKH &RPSDQ\ DQG FDUULHG RXW WKHLU ¿GXFLDU\ GXW\ LQ WKH LQWHUHVW RI WKH &RPSDQ\ DQG VKDUHKROGHUV
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6
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The Resolution 9, if approved, will empower the Directors of the Company, from the date of the above AGM,
DXWKRULW\WRLVVXHDQGDOORWVKDUHVLQWKH&RPSDQ\XSWRDQDJJUHJDWHDPRXQWQRWH[FHHGLQJRIWKHWRWDO
number of issued shares of the Company for such purposes as the Directors consider would be in the interest
RIWKH&RPSDQ\7KLVDXWKRULW\XQOHVVUHYRNHGRUYDULHGDWDJHQHUDOPHHWLQJZLOOH[SLUHDWWKHQH[W$*0RIWKH
Company.
The Mandate is as renewal of the Mandate granted by the members at the last AGM held on 29 August 2018.
The Mandate granted at the last AGM was not utilised by the Company and thus, no proceeds were raised.
The Renewed Mandate will empower the directors to raise funds via issuance of new shares without delay, in
the event of business opportunities arise.
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The Resolution 10, if approved, will enable the Company and its subsidiaries to continue entering into the
recurrent related party transactions of a revenue or trading nature with Syarikat Perniagaan Chong Mah Sdn.
Bhd., which are necessary for its day-to-day operations and are in the ordinary course of business and on terms
not more favourable to the related party than those generally available to the public and are not detrimental to
the minority shareholders of the Company. This authority unless revoked or varied at a General Meeting will
H[SLUHDWWKHQH[W$*0
Further information on the proposed Ordinary Resolution No. 10 is set out in Part A, Circular to Shareholders
dated 31 July 2019 which is dispatched together with the Annual Report 2019 of the Company.
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7KH5HVROXWLRQLIDSSURYHGZLOOHPSRZHUWKH%RDUGRI'LUHFWRUVWRDOORFDWHDQDPRXQWQRWH[FHHGLQJWKH
UHWDLQHG SUR¿WV RI WKH &RPSDQ\ IRU WKH SXUSRVH RI DQG WR SXUFKDVH VXFK DPRXQW RI RUGLQDU\ VKDUHV LQ WKH
Company from time to time on the market of Bursa Securities upon such terms and conditions as the Board of
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Further information on the proposed Ordinary Resolution No. 11 is set out in Part B, Statement to Shareholders
in relation to the Proposed Renewal of Share Buy-Back Authority dated 31 July 2019 which is dispatched
together with the Annual Report 2019 of the Company.
STATEMENT ACCOMPANYING NOTICE OF

TWENTY-SECOND ANNUAL GENERAL MEETING
1$0(62)',5(&725667$1',1*)255((/(&7,21
1. Resolution 3 and 4- Re-election of Directors
The Directors who are retiring pursuant to Article 75 of the Constitution of the Company and seeking for re-
election at the forthcoming 23rd AGM are as follows:
(a) Tan Sri Dato’ Azizan Bin Husain

(b) Mr Lim Hwa Yu
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where applicable, are set out in the Analysis of Shareholdings section appearing on pages 13 to 15 and 118 to 120
respectively of the Company’s Annual Report respectively.
7
CHAIRMAN’S STATEMENT
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I am pleased to report that that Oriental Food Industries Holdings Berhad (“the Company” or “the Group”)
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SRVLWLYH JURZWK LQ UHYHQXH DQG SUR¿W DV ZH PDGH VWHDG\ SURJUHVV WRZDUGV RXU REMHFWLYH RI GHOLYHULQJ
sustainable value for our shareholders.
On behalf of the Board of Directors, I am pleased to present the 2019 Annual Report detailing a
comprehensive report to our shareholders, on the activities, results and strategies of our Company.
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The Group achieved another milestone in terms of ,QOLQHZLWKWKHFRPPHQGDEOH¿QDQFLDOSHUIRUPDQFHRIWKH

VXVWDLQDELOLW\JURZWKLQUHYHQXHDVVHHQLQWKH¿QDQFLDO Group, the total dividend payout for the year amounted to
year ended 31 March 2019 (“FY 2019”). Revenue 50PLOOLRQRI)<¶VQHWSUR¿WV
sustained on a year-on-year basis at RM286.5 million in
)<DVFRPSDUHGWR50PLOOLRQLQWKH¿QDQFLDO The dividend policy of paying a minimum of 35% of net
year ended 2018 (“FY 2018”) SUR¿WWRWKHVKDUHKROGHUVUHPDLQVXQFKDQJHG:LWKWKLV
shareholders will be able to consistently enjoy the returns
The Group’s revenue was derived primarily from the in correspondence with the future growth of the Group.
Snack Food and Confectioneries segment, representing
100% of the Group’s total revenue.
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,Q WHUPV RI JHRJUDSKLFDO VHJPHQW WKH *URXS¶V PL[HG
UHYHQXH FRPSULVHG RI ORFDO VDOHV DQG H[SRUW With the completion of the new manufacturing plant and
sales. acquisition of new production machineries, the Company
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3UHWD[SUR¿WRIWKH*URXSLQFUHDVHGDVFRPSDUHGWR)< QH[WFRXSOHRI\HDUV7KH&RPSDQ\LVSODQQLQJWRODXQFK
2018. The Group recorded an increase of 125% from new types of products and enhance the quality, taste
RM8.2 million in FY 2018 to RM18.6 million in FY 2019. and get-up of the current products with the new and
advanced technology and fully automated production
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under review achieved encouraging growth of 3% in snack
category, outperforming the growth in sales of cakes and ,QWKHODVW¿QDQFLDO\HDUWKH&RPSDQ\ODXQFKHGLWVELVFXLW
potato crisps. This growth was particularly spurred by the products under the brand name “Zess” to the market and
rising trend of sales for our snack products. the snack food and confectionery business remained as
the household names of consumers particularly brands
Despite all challenges, the Group achieved satisfactory like “Jacker” and Super Ring”. Although competition in the
total net comprehensive income attributable to the food retail market continued to increase, the Company
shareholders of RM13.9 million in FY 2019. This still managed to retain its position as one of the leading
translates to basic earnings per share of 5.78 sen. snack food and confectionery manufacturers.
In terms of our balance sheet, total loans and borrowings

stood at nominal amount of RM25.8 million against the
backdrop of shareholders’ fund of RM189.6 million and
cash and bank balances of RM9.5 million. The Group’s
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maintaining this uptrend.
8
CHAIRMAN’S STATEMENT
At OFIH we believe that one of the key drivers is the &RUSRUDWH*RYHUQDQFH

YDOXH RI RXU FXVWRPHUV 7KH 6DOHV DQG ([SRUW 7HDP
DUH FRQVWDQWO\ LQ FRQWDFW ZLWK SRWHQWLDO DQG H[LVWLQJ The Board is committed towards upholding the values of
customers. Surveys are periodically conducted on corporate governance by embracing the principles and
customer satisfaction. best practices set out in the Malaysian Code of Corporate
Governance.
Here at OFIH, the Top Management are hands-on in the
day-to-day management of the Group. The Research The Board has recently incorporated the following
and Development (“R&D”) division of the Group will policies which can be viewed at the Company’s corporate
continue to place emphasis on research and investment ZHEVLWHZZZR¿KFRPP\
on packaging design.
Board Charter
Together with our continued investment in R&D, Code of Conduct
infrastructure and our people, this will help us create Whistle-Blowing Policy
long term value for our shareholders. Nomination and Election Process of Board Members
Board Remuneration Policy
The Company has been actively connecting with Corporate Disclosure Policy
consumers through social media network on promotions, Corporate Social Responsibility, Environmental and
product launches, contest and other activities which Sustainability Policy
have been very successful.
On the regional front, the Group plans to appoint $FNQRZOHGJHPHQW

more distributors in major oversea markets. Presently,
Oriental’s products are sold to more than 40 countries, I would like to thank our Board of Directors for their
including highly-discerning consumer markets such as JXLGDQFH DQG FRXQVHO LQ WKH ODVW ¿QDQFLDO \HDU , DP
Japan and Australia. also appreciative of our Top Management and senior
management team.
Armed with the ISO 9001, ISO 22000, Food Safety and
HACCP (Hazard Analysis and Critical Control Point) In conclusion, I would like to thank our staff for their
FHUWL¿FDWLRQV WKH *URXS HQGHDYRUV WR FRQWLQXRXVO\ dedication and contributions to the OFIH Group. Last but
improve its product quality to keep up with the ever- QRWOHDVW,ZRXOGOLNHDOVRWRH[WHQGRXUDSSUHFLDWLRQWR
demanding international health standards. our shareholders, clients, consultants, suppliers, partners
and business associates for their unwavering support.
Apart from the above, the Company ensures that it
manufactures only Halal products which have been
FHUWL¿HG E\ WKH 'HSDUWPHQW RI ,VODPLF 'HYHORSPHQW ,'$72 $=,=$1%,1+86$,1
7$165,'$72¶$=,=$1%,1+86$,1
Malaysia (“JAKIM”) and the relevant recognized Islamic n
Chairman
authorities.
&RUSRUDWH6RFLDO5HVSRQVLELOLW\³&65´
The Group recognizes that it needs to give back to the

communities in which it operates in. This is evident
through its corporate philanthropy efforts and emphasis
on health, safety and environmental standards as detailed
on pages 19 to 28 under Sustainability Statement.
bour
The Group also practices gender equality, ethical labour
policies and creating a safe workplace environment.
9
CORPORATE STRUCTURE
Oriental Food Industries Holdings Berhad (“OFIH”) was incorporated on 8 June 1996 in Malaysia under the Companies
Act, 1965 as a public limited company. OFIH was listed on the Second Board of Bursa Malaysia Securities Berhad
in August 2000 and subsequently transferred to the Main Board on 13 October 2003. Currently OFIH is listed on the
Main Market of Bursa Malaysia Securities Berhad.
OFIH is principally an investment holding company with a group of subsidiaries that are engaged in the following
activities:
1$0(2)0$-2568%6,',$5,(6 (48,7<,17(5(67 35,1&,3$/$&7,9,7,(6
6XEVLGLDULHVRI2),+
2ULHQWDO)RRG,QGXVWULHV6GQ%KG³2),´ 100 Manufacturing and marketing of
snack food, confectionery and
biscuit products
2),3URSHUWLHV6GQ%KG³2),3´ 99.99 Property Development.
6XEVLGLDU\RI2),
2ULHQWDO)RRG0DUNHWLQJ06GQ%KG³2)0´ 100 Sales and marketing of snack
food, confectionery and biscuit
products.
2),+*URXS&RUSRUDWH6WUXFWXUH
100% 100% 99.9%
OFI OFM OFIP

Major Subsidiaries
Subsidiary of Oriental Food Industries Sdn. Bhd.

10
CORPORATE INFORMATION
BOARD OF DIRECTORS
Tan Sri Dato’ Azizan bin Husain (Chairman) ,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRU

Datuk Seri Son Chen Chuan Group Managing Director
'DWXN6RQ7RQJ/HRQJ *URXS&KLHI([HFXWLYH2I¿FHU
'DWXN6RQ7RQJ(QJ ([HFXWLYH'LUHFWRU
0U/LP.HDW6HDU 1RQ,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRU
'DWXN-HIIHU\2QJ&KHQJ/RFN ,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRU
0U/LP+ZD<X ,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRU
-2,17&203$1<6(&5(7$5,(6 CORPORATE HEAD OFFICE
Karina Chong Mei Ying (LS 0009542) No. 65, Jalan Usaha 7
Chan Sau Leng (MAICSA 7012211) Air Keroh Industrial Estate
Ruzeti Emar Binti Mohd Rosli (LS 0010372) 75450 Melaka
Tel : +606 231 0333
)D[
REGISTERED OFFICE (PDLO LQIR#R¿FRPP\
:HEVLWHV ZZZR¿KFRPP\
Level 8 Symphony House : www.jacker.com.my
Block D13 Pusat Dagangan Dana 1
Jalan PJU1A/46
47301 Petaling Jaya PRINCIPAL BANKERS
Tel : +603 7841 8000 HSBC Bank Malaysia Berhad
)D[ CIMB Bank Berhad
SHARE REGISTRAR STOCK EXCHANGE LISTING
Sectrars Management Sdn Bhd Main Market of Bursa Malaysia Securities Berhad
Lot 9-7, Menara Sentral Vista
1R-DODQ6XOWDQ$EGXO6DPDG%ULFN¿HOGV
50470 Kuala Lumpur 672&.1$0(
Malaysia
Tel : +603 2276 6138 OFI
)D[
STOCK CODE
AUDITORS
7107
Ernst & Young (AF 0039)
11
GROUP FINANCIAL HIGHLIGHTS
,QFRPH6WDWHPHQWV

50¶PLO
5HYHQXH

Cost of sales (180.47) (181.09) (200.91) (230.28) (235.29)
*URVV3UR¿W
Other operating income 2.91 6.28 4.83 1.10 3.91

Selling and distribution cost (22.33) (22.64) (20.72) (27.79) (14.66)
$GPLQLVWUDWLYHH[SHQVHV
2WKHURSHUDWLQJH[SHQVHV
3UR¿WIURPRSHUDWLRQV
Finance cost (0.18) (0.44) (0.54) (0.88) (1.06)

3UR¿WEHIRUHWD[
7D[

3UR¿WDIWHUWD[
Non-controlling Interest - 0.02 (0.01) - -

1HW&RPSUHKHQVLYH,QFRPH
1HWGLYLGHQGSHUVKDUHVHQ 9.50 12.50 4.00 3.50 1.50

(DUQLQJVSHUVKDUH 8.96 10.61 7.60 4.67 5.78
'HSUHFLDWLRQ $PRUWLVDWLRQ 7.63 9.01 9.32 9.94 11.96

1XPEHURI6KDUHV 60.00 240.00 240.00 240.00 240.00
EBITDA 33.23 41.51 32.92 19.08 31.57
'LYLGHQG UHFRJQLVHGSDLG GXULQJ WKH ¿QDQFLDO \HDU DQG LV H[FOXGLQJ WKH GLYLGHQG SDLG DIWHU WKH UHVSHFWLYH
¿QDQFLDO\HDUHQGDQG¿QDOGLYLGHQGSURSRVHGIRUWKHVKDUHKROGHUV¶DSSURYDO
REVENUE (RM’mil) PROFIT BEFORE TAXATION (RM’mil)

288.31 286.54 32.06
256.08
244.92 25.42
237.03 23.06
18.55
NET COMPREHENSIVE INCOME (RM’mil)

25.46 8.26
21.51
18.24
13.87
‘15 ‘16 ‘17 ‘18 ‘19 ‘15 ‘16 ‘17 ‘18 ‘19
11.20
EARNING PER SHARE (Sen) DIVIDEND PER SHARE (Sen)
10.61 12.5
8.96
7.60 9.5
5.78
‘15 ‘16 ‘17 ‘18 ‘19
4.67
4.0
3.5
1.50
‘15 ‘16 ‘17 ‘18 ‘19 ‘15 ‘16 ‘17 ‘18 ‘19
12
PROFILE OF THE BOARD OF DIRECTORS
7DQ6UL'DWR¶$]L]DQ%LQ+XVDLQ
75 years of age/Male/Malaysian
Independent Non-Executive Chairman
7DQ 6UL 'DWR¶ $]L]DQ ELQ +XVDLQ ³7DQ 6UL $]L]DQ´ ZDV DSSRLQWHG DV WKH ,QGHSHQGHQW 1RQ([HFXWLYH &KDLUPDQ
on 8 June 2000. He is also a member of the Risk Management and Audit Committee, Nomination Committee and
Remuneration Committee.
Tan Sri Azizan is currently the Chairman of other private companies.
Tan Sri Azizan holds a B. A. Honours Degree and Diploma in Public Administration from the University of Malaya and
a Post Graduate Diploma in Economics and Master in Urban and Regional Planning from the University of Colorado,
Boulder, United States of America.
Tan Sri Azizan started his career with the Ministry of Agriculture in 1967 and retired in 1999 as the Secretary-General
LQWKH0LQLVWU\RI'HIHQFH0DOD\VLD3ULRUWRKLVUHWLUHPHQWKHKDGSURJUHVVHGRQDQGJDLQHGYDVWH[SHULHQFHIURP
various departments in the civil service. During his years with the Government Service, he has served as Assistant
Secretary with the Centre for Development Studies and Economic Planning Unit in Prime Minister’s Department,
Director of Economic Planning Unit, Sabah, Sabah State Director of Development, Deputy Secretary-General with
Ministry of Land and Regional Development, Deputy Director-General (Sectoral) Economic Planning Unit with Prime
Minister’s Department, Director of Public Sector Companies Monitoring Division in the Ministry of Finance and Deputy
Secretary-General (Operation) with the Ministry of Finance.
7DQ6UL$]L]DQKDVDWWHQGHGDOOIRXU%RDUGPHHWLQJVKHOGLQWKH¿QDQFLDO\HDU
Tan Sri Azizan does not hold shares in the Company and is not related to any Director and/or major shareholders of
WKH&RPSDQ\+HGRHVQRWKDYHDQ\FRQÀLFWRILQWHUHVWZLWKWKH&RPSDQ\DQGKDVQRWEHHQFRQYLFWHGRIDQ\RIIHQFH
ZLWKLQWKHSDVW¿YH\HDUV
'DWXN6HUL6RQ&KHQ&KXDQ
72 years of age/ Male/Malaysian
Group Managing Director
Datuk Seri Son Chen Chuan (“Datuk Seri Son”) was appointed to the Board since 8 June 2000 and is currently the
Group Managing Director.
Datuk Seri Son is the founder of the Company and its subsidiaries (“the Group”). He is the driving force of the Group.
:LWKKLVGHFDGHORQJH[SHULHQFHLQWKHLQGXVWU\DQGH[WHQVLYHNQRZOHGJHJDLQHGWKURXJKWKH\HDUVKHIRUPXODWHV
and implements the Group’s corporate strategy. He also develops new products for both local and overseas market,
ensuring that the quality of products and packaging are high, keeping close contact with the local and overseas
distributors to obtain suggestions and feedback on the OFI products. Datuk Son had through the years fostered close
relationships with the suppliers and customers.
'DWXN6HUL6RQKDVDWWHQGHGDOOIRXU%RDUGPHHWLQJVKHOGLQWKH¿QDQFLDO\HDU
Datuk Seri Son is related to Datuk Son Tong Leong (son) and Datuk Son Tong Eng (son). He is a substantial
shareholder in the Company by virtue of his direct and indirect interests in the shareholdings held by himself and
his children and via his shareholding in Apendo Capital Sdn. Bhd. and Summer Legend Sdn. Bhd. Other than the
UHFXUUHQW UHODWHG SDUW\ WUDQVDFWLRQV DV GLVFORVHG LQ SDJH KH GRHV QRW KDYH DQ\ FRQÀLFW RI LQWHUHVW ZLWK WKH
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13
'DWXN6RQ7RQJ/HRQJ
*URXS&KLHI([HFXWLYH2I¿FHU
Datuk Son Tong Leong was appointed to the Board on 8 June 2000. He holds a Bachelor’s degree in Business from
the Edith Cowan University, Australia.
He began his career in 1994 as the Factory Manager of OFI and was promoted to General Manager of the Company
LQ,QKHZDVUHGHVLJQDWHGIURP([HFXWLYH'LUHFWRUWR*URXS&KLHI([HFXWLYH2I¿FHU+HLVLQFKDUJHRI
the overall corporate administration, human resources, marketing and operations of the Company. He has maintains
H[FHOOHQW UHODWLRQVKLS ZLWK VWDIIV RI DOO OHYHOV FXVWRPHUV VXSSOLHUV DQG WKH &RPSDQ\¶V EXVLQHVV SDUWQHUV +H DOVR
oversees the factory operations and ensures that production activities are carried out smoothly in compliance with the
ISO and HACCP standards.
+HKDVDWWHQGHGDOOIRXU%RDUGPHHWLQJVKHOGLQWKH¿QDQFLDO\HDU
He is a shareholder of the Company and is related to Datuk Seri Son Chen Chuan (father) and Datuk Son Tong Eng
EURWKHUDOORIZKRPDUH'LUHFWRUVRIWKH&RPSDQ\+HGRHVQRWKDYHDQ\FRQÀLFWRILQWHUHVWZLWKWKH&RPSDQ\DQG
KDVQRWEHHQFRQYLFWHGRIDQ\RIIHQFHZLWKLQWKHSDVW¿YH\HDUV
'DWXN6RQ7RQJ(QJ
Executive Director
Datuk Son Tong Eng was appointed to the Board on 8 June 2000. He holds a Diploma in Mechanical Engineering from
the Federal Institute of Technology, Kuala Lumpur.
+HKDVPRUHWKDQWHQ\HDUVRIH[SHULHQFHLQWKHIRRGLQGXVWU\DQGLVFXUUHQWO\WKH([HFXWLYH'LUHFWRURI2),+H
oversees the factory operations and human resource related matters.
He is a shareholder of the Company and is related to Datuk Seri Son Chen Chuan (father) and Datuk Son Tong Leong
EURWKHUDOORIZKRPDUHWKH'LUHFWRUVRIWKH&RPSDQ\+HGRHVQRWKDYHDQ\FRQÀLFWRILQWHUHVWZLWKWKH&RPSDQ\
DQGKDVQRWEHHQFRQYLFWHGRIDQ\RIIHQFHZLWKLQWKHSDVW¿YH\HDUV
0U/LP+ZD<X
Independent Non-Executive Director
Mr. Lim Hwa Yu (“Mr. Lim”) was appointed to the Board on 23 February 1999. He is also a member of the Risk
0DQDJHPHQW DQG $XGLW &RPPLWWHH 5HPXQHUDWLRQ &RPPLWWHH DQG 1RPLQDWLRQ &RPPLWWHH 0U /LP TXDOL¿HG DV DQ
$FFRXQWDQWIURPWKH8QLWHG.LQJGRPLQ+HLVD)HOORZRIWKH&KDUWHUHG$VVRFLDWLRQRI&HUWL¿HG$FFRXQWDQWV
8QLWHG .LQJGRP )HOORZ RI WKH ,QVWLWXWH RI 7D[DWLRQ 8QLWHG .LQJGRP DQG D 0HPEHU RI WKH 0DOD\VLDQ ,QVWLWXWH RI
Accountants.
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planning and management.
Mr. Lim does not hold shares in the Company and is not related to any Director and/or major shareholder of the
&RPSDQ\+HGRHVQRWKDYHDQ\FRQÀLFWRILQWHUHVWZLWKWKH&RPSDQ\DQGKDVQRWEHHQFRQYLFWHGRIDQ\RIIHQFH
14
'DWXN-HIIHU\2QJ&KHQJ/RFN
Independent Non-Executive Director
Datuk Jeffery Ong Cheng Lock (“Datuk Jeffery”) was appointed to the Board on 14 May 2007. He also serves as a
member of the Risk Management and Audit Committee, Remuneration Committee and Nomination Committee.
Datuk Jeffery is an Associate of the Institute of Business Administration, Australia and was formerly the Senior
'LUHFWRU RI +XPDQ 5HVRXUFHV RI ,Q¿QHRQ 7HFKQRORJLHV UHVSRQVLEOH IRU 5HFUXLWPHQW &RPSHQVDWLRQ %HQH¿WV
Welfare, Training, Employee Relations and Government Relations. He currently serves as the Council Member of
the Federation of Malaysian Manufacturers (“FMM”), Chairman of FMM Malacca Branch, Member of the Malaysian
Institute of Management, Member of the Malaysian Institute of Personnel Management and Member of the Malacca
Industrial Skills Development Centre. Datuk Jeffery was a Former Board Member of OSH National Council, Panel
Member of the Industrial Court and the SOCSO Appellate Court.
'DWXN-HIIHU\KDVDWWHQGHGWKUHHRXWRIIRXU%RDUGPHHWLQJVKHOGLQWKH¿QDQFLDO\HDU
Datuk Jeffery does not hold shares in the Company and is not related to any Director and/or major shareholder of
WKH&RPSDQ\+HGRHVQRWKDYHDQ\FRQÀLFWRILQWHUHVWZLWKWKH&RPSDQ\DQGKDVQRWEHHQFRQYLFWHGRIDQ\RIIHQFH
0U/LP.HDW6HDU
Non Independent Non-Executive Director
Mr. Lim Keat Sear was appointed to the Board on 8 June 2000. He also serves as a member of the Nomination
Committee and Remuneration Committee.
He has been in the snack and confectionery business for more than twenty (20) years. He joined Syarikat Perniagaan
Chong Mah Sdn. Bhd., a distributor of snack food and confectionery in 1973 and became a director of the Company
in 1978.
He is a substantial shareholder of the Company by virtue of his direct and indirect interest via Syarikat Perniagaan
Chong Mah Sdn. Bhd., Thung Shung (M) Sdn. Bhd. and Summer Legend Sdn. Bhd and is not related to any of the
Directors of the Company. Other than the recurrent related party transactions as disclosed in page 123, he does not
KDYHDQ\FRQÀLFWRILQWHUHVWZLWKWKH&RPSDQ\DQGKDVQRWEHHQFRQYLFWHGRIDQ\RIIHQFHZLWKLQWKHSDVW¿YH\HDUV
15
PROFILE OF KEY SENIOR MANAGEMENT
.DULQD&KRQJ0HL<LQJ
48 years of age/Female/Malaysian
Group Company Secretary
0V .DULQD &KRQJ ¿UVW MRLQHG WKH *URXS LQ WR DQG WKHUHDIWHU UHMRLQHG WKH *URXS RQ )HEUXDU\
She holds a Bachelor of Law degree from the University of London and is a Registered License Secretary with the
&RPSDQLHV&RPPLVVLRQRI0DOD\VLD6KHKDVWZHQW\WKUHH\HDUVRIH[SHULHQFHLQKHUVFRSHRIGXWLHV
She is in charge of the secretarial, legal, corporate, human resources and administration matters and reports to the
Directors of the Group. She is also the Joint Company Secretary of the Group.
She does not hold shares in the Company and is not related to any Director and/or major shareholders of the Company.
6KHGRHVQRWKDYHDQ\FRQÀLFWRILQWHUHVWZLWKWKH&RPSDQ\DQGKDVQRWEHHQFRQYLFWHGRIDQ\RIIHQFHZLWKLQWKH
SDVW¿YH\HDUV
<DS6LHZ.XDQ
50 years of age/Female/Malaysian
Group Accountant
Ms Yap Siew Kuan joined the Company on 15 January 2015. She was a graduate from Chartered Institute of
Management Accountants and is a member of Malaysian Institute of Accountants. She has twenty-seven (27) years
RIH[SHULHQFHLQWKHDFFRXQWLQJDQGDXGLWOLQH
6KHLVLQFKDUJHRIWKHFRUSRUDWHDFFRXQWVDQG¿QDQFHVRIWKH*URXSDQGUHSRUWVWRWKH'LUHFWRUVRIWKH&RPSDQ\
She does not hold shares in the Company and is not related to any Director and/or major shareholders of the Company.
6KHGRHVQRWKDYHDQ\FRQÀLFWRILQWHUHVWZLWKWKH&RPSDQ\DQGKDVQRWEHHQFRQYLFWHGRIDQ\RIIHQFHZLWKLQWKH
SDVW¿YH\HDUV
16
MANAGEMENT DISCUSSION AND ANALYSIS
29(59,(:2)7+(*52836¶%86,1(66$1'23(5$7,216
Oriental Food Industries Holdings Berhad (“the Company” or “the Group”) has made its mark in the snack food and
confectionery manufacturing industry today as one of the companies holding the leading position in the said industry
in Malaysia.
7KH*URXSUHPDLQVIRFXVHGRQSODFLQJWKHQHHGVDQGLQWHUHVWVRILWVFXVWRPHUV¶¿UVWE\PDQXIDFWXULQJDQDVVRUWPHQW
RIVQDFNIRRGDQGFRQIHFWLRQHU\SURGXFWVWKDWIRFXVHVRQTXDOLW\*HQHUDOO\WKHVHSURGXFWVFDQEHGLYLGHGLQWR¿YH
(5) broad categories, which are snack food, wafer, biscuits, potato snacks and bakery products.
The Group has various product brand names, most of which are commercially strong generating the required sales
DQGSUR¿WERWKORFDOO\DQGRYHUVHDV6XSHU5LQJ-DFNHU5RWDDQG2ULHQWDODUHFXUUHQWO\ZHOONQRZQKRXVHKROGEUDQG
names in Malaysia.
FINANCIAL RESULTS AND FINANCIAL CONDITION
Despite undergoing a challenging year in 2018, the Group has managed to secure a continued growth in revenue as
VHHQLQWKH¿QDQFLDO\HDUHQGHG0DUFK³)<ÚHVXOWVDVUHÀHFWHGLQWKHWDEOHEHORZ
<2<

50¶ 50¶ 50¶
Revenue 286,548 288,310 (1,762) (0.6)

*URVV3UR¿W
3UR¿W%HIRUH7D[³3%7´
Financial Costs 1,061 882 (179) (20.3)
3UR¿W$IWHU7D[³3$7´
Shareholders’ Fund 189,598 184,890 4,708 2.5
Total Assets 256,057 251,610 4,447 1.8
Borrowings 25,800 23,360 (2,440) (10.4)
Debt/ Equity (%) 19.7 22.9

Earnings Per Share (sen) 5.78 4.67
Net Assets Per Share (sen) 0.79 0.77
REVENUE
7KH*URXSUHFRUGHGORZHUUHYHQXHRI50PLOOLRQLQWKH¿QDQFLDO\HDUDGHFUHDVHRIDVFRPSDUHG
WRWKHSUHYLRXV¿QDQFLDO\HDURI50PLOOLRQ7KHGHFUHDVHZDVGXHWRFRPSOLDQFHRIQHZDSSOLFDEOHDFFRXQWLQJ
VWDQGDUGZKHUHFHUWDLQVHOOLQJDQGGLVWULEXWLRQH[SHQVHVZHUHUHFODVVL¿HGZKLFKUHVXOWHGLQDQLPSDFWRI50
million on revenue.
Revenue information based on the geographical location of customers is as follows:
5HYHQXHV

50¶ 50¶
Malaysia 101,617 35 106,698 37

Asia 129,136 45 125,268 43
Others 55,795 20 56,344 20
Total reported segments 286,548 100 288,310 100
17
MANAGEMENT DISCUSSION AND ANALYSIS
NET PROFIT
7KH *URXS¶V SUR¿W DIWHU WD[ KRZHYHU LV KLJKHU DW 50 PLOOLRQ DV FRPSDUHG WR 50 PLOOLRQ LQ WKH SUHYLRXV
¿QDQFLDO\HDU7KLVLVGXHWRORZHURSHUDWLQJFRVWVDQGJDLQIURPIRUHLJQH[FKDQJH(DUQLQJVSHUVKDUHRIWKH*URXS
stood at 5.78 sen.
FINANCIAL POSITION
7KH*URXS¶V¿QDQFLDOSRVLWLRQUHPDLQVVWURQJZLWKWRWDODVVHWVRI50PLOOLRQDJDLQVWWRWDOOLDELOLWLHVRI50
PLOOLRQ7KH*URXSKDVFDVKUHVHUYHVRI50PLOOLRQDVDWWKHFXUUHQW¿QDQFLDO\HDUHQGDVFRPSDUHGWR50
PLOOLRQLQWKHSUHYLRXV¿QDQFLDO\HDU2QHRILWVPDMRUVXEVLGLDU\LVFXUUHQWO\HPEDUNLQJRQFDSLWDOH[SDQVLRQSURMHFWV
ZKLFKDUHH[SHFWHGWRFDUU\RQIRUWKHQH[WIHZ\HDUV
Net tangible asset per share, attributable to owner improved to RM0.79 (2018: RM0.77). Gearing ratio of the Group
VWRRGDWDQGWKHVKDUHKROGHUV¶IXQGVLV50PLOOLRQ7KH*URXS¶VFXUUHQWUDWLRLV[
DIVIDEND
The Group constantly declare a dividend payout for every quarter for the past years. Total dividend declared for the
¿QDQFLDO\HDUZDVVHQVHQSHUVKDUH
*5283¶V35263(&76
7KH *URXS LV FXUUHQWO\ PDNLQJ PDFKLQHU\ DFTXLVLWLRQV IRU VRPH H[SDQVLRQ SURMHFWV IRU QHZ SURGXFW OLQHV 7KH
PDQDJHPHQWH[SHFWVWKDWWKHVHQHZOLQHVZLOOFRQWULEXWHSRVLWLYHO\WRZDUGVWKHJURZWKDQGSUR¿WDELOLW\RIWKH*URXS
7KHVHSURJUDPVDUHH[SHFWHGWREHFRPSOHWHGLQVWDJHVLQWKHQH[WIHZ\HDUV
7KH%RDUGH[SHFWVWKDWWKHSHUIRUPDQFHRIWKH*URXSZLOOEHVDWLVIDFWRU\IRUWKHQH[W¿QDQFLDO\HDUHQGLQJ0DUFK
2020, despite facing various challenges of competitive markets.
18
SUSTAINABILITY STATEMENT
Oriental Food Industries Holdings Berhad (“OFIH” or “the Company”) recognises that sustainability involves the
proactive approach by the Company to play a part in maintaining and improving the present generation’s quality of
life and at the same time work towards protecting the future generations to enhance their quality of life. OFIH has
always believed that in order to sustain economic and social growth, social considerations has to be adhered to while
ensuring minimal impact on the environment.
In line with Bursa Malaysia Securities Berhad’s Sustainability Reporting Guide, OFIH’s sustainability framework
LV IRFXVHG RQ WKH HYDOXDWLRQ RI WKH HFRQRPLF HQYLURQPHQWDO DQG VRFLDO ULVN DQG RSSRUWXQLWLHV FRH[LVWHQW ZLWK WKH
Company’s corporate governance framework and corporate social responsibilities.
GOVERNANCE STRUCTURE
The management and operations of OFIH Group as a whole is under the supervision and leadership of Datuk Seri
6RQ &KHQ &KXDQ *URXS 0DQDJLQJ 'LUHFWRU DQG 'DWXN 6RQ 7RQJ /HRQJ *URXS &KLHI ([HFXWLYH 2I¿FHU 7KH 7RS
Management are assisted by the Senior Management, Departmental Managers and Head of Departments in the day-
to-day operations of the OFIH Group.
7KH2),+*URXSFRPSULVHVRIWKUHHVXEVLGLDU\FRPSDQLHVH[HUFLVLQJGLIIHUHQWVFRSHRIGXWLHVDVIROORZV
6XEVLGLDULHVRI2),+
2ULHQWDO)RRG,QGXVWULHV6GQ%KG 0DQXIDFWXULQJDQGPDUNHWLQJRIVQDFNIRRGFRQIHFWLRQHU\DQG
biscuit products.
2),3URSHUWLHV6GQ%KG 3URSHUW\'HYHORSPHQW
6XEVLGLDU\RI2),
2ULHQWDO)RRG0DUNHWLQJ06GQ%KG 6DOHV DQG PDUNHWLQJ RI VQDFN IRRG FRQIHFWLRQHU\ DQG ELVFXLW
products.
19
0$7(5,$/6867$,1$%,/,7<0$77(56
(&2120,&
The core business of the Company is manufacturing and marketing of snack food, confectionery and biscuit products.
The products are being sold locally and overseas.
In an effort to preserve shareholders’ interest, OFIH strives to maintain high standards of corporate ethics and strict
FRPSOLDQFHZLWKWKHODZVDQGUHJXODWLRQVRI0DOD\VLDDQGWKRVHFRXQWULHVZKHUH2),SURGXFWVDUHEHLQJH[SRUWHG
This is because OFIH believes that high standard of integrity, honesty and accountability are the fundamental keys
for a sustainable business.
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OFIH places great importance in the safety and quality of all its products that is accessible to the entire population.
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strengthen its footing in receiving worldwide recognition for food safety and quality assurance.
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With the above in place, the Group strives to provide safe and affordable food products to its consumers.
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The Research and Development (“R&D”) Team is led by Datuk Seri Son Chen Chuan. The Group does not only strive
to stay relevant in the industry through its R&D efforts but is also able to anticipate changes in consumer preferences.
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biscuit products.
Apart from concentrating on the quality of the products, packaging too has been the main focus of the R&D team. It
is one of the main aspects in protecting the food products and indirectly supports the environment without damage
and waste.
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As always, the Group values its shareholders who have supported and invested in the Company; many of whom have
remained with the Company throughout these years. The Board looks forward to meet its valued shareholders during
Annual General Meetings to provide clearer insights of the Group’s performance, position and future plans. Apart from
that, the shareholders and investors are also able to check on the announcements and performance of the Company
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results, listing announcements, change of corporate information, general meetings and other relevant information are
being uploaded regularly. Furtherance to that, there is also a contact email in OFIH’s website for the shareholders to
air their views, enquiries and comments. Other than investor relation matters, product information and other activities
are also uploaded on the said website.
20
CORPORATE GOVERNANCE PRACTICES
The Group is headed by an effective board which assume responsibility for its leadership and control and is collectively
responsible for promoting its success by directing and supervising its affairs. The Directors take decisions objectively
in the best interests of the Group through good Corporate Governance practices.
The Group has ensured that the Policies and Procedures are in place to strengthen its corporate governance drive
as well as being an effective tool to guide the Management and all its stakeholders relating to the following areas:
– Whistle Blowing Procedures

– Employees Career Development
– Grievance Handling
– Risk Management
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The Group ensures that risks to health and safety from work activities are properly controlled and the efforts to do the
same are beyond regulatory compliance.
The Management focuses in embedding and promoting good workplace health and safety practices. Adequate
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and enforce at its workplace the Occupational Safety, Health and Environmental Policy in line with the Occupational
Safety and Health Act 1994.
In the pursuit of the above, the Group implements practical strategies to achieve its Occupational Safety, Health
and Environmental Policy (“OSHE”) Mission Statement where the Company has the core responsibility to ensure the
Safety, Health and Environment of all company’s employees, contractors and visitors.
21
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ensure that the premises are maintained as a safe environment of work.
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reduce the possibility of harm on the employees, visitors and contractors.
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in the initial stage of their employment.
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ensure their safety and health at workplace.
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health and environment of Company’s employees, visitors and contractors.
OFIH views the Safety, Health and Environment of its employees, contractors and Company visitors as an important
agenda alike to maintain a business machinery to drive the Company towards achieving its organisational and
corporate objectives.
22
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that efforts to ensure environmental preservation are an important business challenge and believes that it is its
responsibility as a manufacturer to observe all applicable environmental laws and regulations.
OFIH capitalises its corporate citizen role to promote environmental preservation by taking environmental protection
measures and considerations in its day-to-day manufacturing operations and at the same time ensures compliance
with the legal and regulatory requirements of the Malaysian Department of Environment (“DOE”), other regulators
and authorities.
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The Company continues the use of natural gas in all its manufacturing processes for the reason that it is
known to be environment friendly as it burns cleanly without the emission of any harmful gas, lowest in carbon
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2),+FRQWLQXHVZLWKVLJQL¿FDQWLQYHVWPHQWLQWKHXSJUDGLQJRILWVZDWHUWUHDWPHQWSODQWWRHQVXUHWKDWZDVWHZDWHU
from its processes undergo physical treatment followed by chemical treatment and subsequently biological
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environment.
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In the day-to-day production processes, waste is inevitable. However, the Management is constantly looking into
waste minimisation by establishing processes and practices intended to reduce the amount of waste produced
in its efforts to promote sustainability practices in waste management.
In support of the Melaka State Government’s Go Green initiative, the Company is currently in talks with the
Melaka Green Technology Corporation pertaining to the management of waste cooking oil under the its Biodiesel
Programme.
The Company ensures that disposal of all its manufacturing waste are being handled by government approved
and licensed contractors.
23
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The Group believes that it is essential for corporate citizens to give back to society. Although charity is a totally
voluntary choice, however, OFIH Group has chosen to be proactive in charity to the best of its ability and
resources.
Similarly in the past years, the Company had participated in many philanthropy and volunteer programmes
throughout 2018 and 2019. Below are a few events of the many which the Company had participated.
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The Company has taken time off to be with senior citizens in collaboration with Seng Cheong Youth
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responsibility to give aging individuals the care and attention that they deserve.
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The Group has always been active in participating and sponsoring festive celebrations with various
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that it creates priceless memories with the members of the society.
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The Group had also participated in a couple of Blood Donation Campaign organized by the FMM Melaka
Branch and St. John Ambulance Malaysia.
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Throughout the year, the Group has participated in many sponsorship activities organised by various
schools and institution of higher education.
25
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IRU³3URJUDP/DWLKDQ%HUVDPD3HQJKXQL3HQMDUD´DW2ULHQWDO)RRG
In May 2019, a Memorandum of Understanding was entered between the Jabatan Penjara Malaysia (“JPM”)
and Oriental Food Industries Sdn Bhd on a programme called “Program Latihan Bersama Penghuni Penjara”,
whereby selected inmates eligible for parole will undergo an on the job training programme with the Company.
These inmates will initially be trained at non-production and non-critical areas under close supervision of the
-30RI¿FHUV7KHPDLQSXUSRVHLVWRLQVSLUHWKHUHIRUPHGLQPDWHVDQGSURYLGHWKHPWKHVNLOODQGFRQ¿GHQFH
that they need to re-join the workforce and society.
Y. Bhg. Dato’ Haji Abdul Aziz bin Abdul Razak, Timbalan Ketua Pengarah, Penjara Malaysia
(4th from right), Datuk Son Tong Leong, Group CEO (4th from left)
After several round of discussions between the parties, including the visit by the Y. Bhg. Dato’ Haji Abdul
Aziz bin Abdul Razak, Timbalan Ketua Pengarah, Penjara Malaysia, the training programme was successfully
commenced in June 2019.
26
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E 0HPRUDQGXPRI8QGHUVWDQGLQJEHWZHHQ2ULHQWDO)RRG,QGXVWULHV6GQ%KGDQG-DEDWDQ3HQMDUD0DOD\VLD
IRU³3URJUDP/DWLKDQ%HUVDPD3HQJKXQL3HQMDUD´DW2ULHQWDO)RRGFRQWLQXHG
YBhg Mr. G. Saminathan A/L Ganesan, Exco Perpaduan, Sumber Manusia dan Hal Ehwal Pengguna
(6th from right)
The Company’s involvement in this programme is in line with the Human Resource Ministry’s recommendation
IRUFRPSDQLHVWRJLYHDFKDQFHWRH[FRQYLFWVVRWKDWWKHVHJURXSLVDEOHWROHDGQRUPDOOLYHVXSRQWKHLUUHOHDVH
from prison.
The Group hopes that this training programme where inmates were placed in realistic work environments will give
them a chance to develop skills that will enhance their potential for rehabilitation and meaningful employment on
release.
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Over the years, the Group has been hosting paid internship programmes to undergraduates who need to gain
YDOXDEOHZRUNRUUHVHDUFKH[SHULHQFH7KH&RPSDQ\DVVLJQVLQWHUQVWRYDULRXVGHSDUWPHQWLQLWVRUJDQLVDWLRQ
7KH,QWHUQVKDYHWKHRSSRUWXQLW\WRDSSO\DFTXLUHGNQRZOHGJHWRUHDOZRUNH[SHULHQFHVLQWKHLUFKRVHQ¿HOG
There are instances where interns who makes a favourable impression are hired as permanent employees at
the end of their assignment.
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Not only do the Group hire the best in the industry to support its operations, it also encourages Malaysians from
DOOOHYHOJHQGHUDQGUDFHWRMRLQWKH&RPSDQ\JLYLQJMRERSSRUWXQLWLHVWRORFDOWDOHQWVLQYDULRXV¿HOGV
I (PSOR\HH&DUHHU*URZWKWKURXJK(GXFDWLRQDO6SRQVRUVKLS 7UDLQLQJ
The Company supports and encourages career growth through Education Assistance Programmes and
Trainings. Deserving employees are awarded monetary funding to undergo various competency programmes
WREHWKHFHUWL¿HGSHUVRQLQ±FKDUJHRIYDULRXVDUHDVIRUH[DPSOHDVDQ2FFXSDWLRQDO+HDOWKDQG6DIHW\2I¿FHU
+DODO([HFXWLYH5DGLDWLRQ3URWHFWLRQ2I¿FHUHWF$VDWWRGDWHPRVWRIWKHHPSOR\HHVRIWKH&RPSDQ\KDYH
undergone training programmes essential to enhance their performance, understanding and success at work.
27
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OFIH Group believes in equality regardless of race or gender. At OFIH, female employees are given equal
opportunities to progress and hold important positions in various department and division of the Company.
Presently, the Group has female employees holding senior management and managerial positions. This serves
as a source of inspiration to other employees to see female leadership and allows prospective employees as
well as current employees to see that ascension in the Company is possible.
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At OFIH, the Top Management recognises the importance of work–life balance that its employee needs between
time allocated for work and other aspects of life. Therefore, OFIH participated in various in sponsorship drive for
sport activities to promote healthy and active lifestyle among the employees.
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At OFIH, teamwork has become its organization’s norm. The Top Management and employee of all level work
together well to achieve the vision and mission of the Company.
In closing, OFIH Group is committed towards integrating sustainability in its business by continuous adoption and
application of effective economic approach, environmentally responsible practices, sound social policies and good
corporate governance framework throughout its organisation.
28
CORPORATE GOVERNANCE OVERVIEW STATEMENT
The Board of Directors (“the Board”) observes the Malaysian Code on Corporate Governance 2017 (“MCCG 2017”)
and ensures the highest standards of corporate governance is practiced throughout Oriental Food Industries Holdings
Bhd’s group of companies (“the Group”) as a fundamental part of discharging its responsibilities to protect and
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The Group’s corporate governance structure has been developed and enhanced based on the principles and
recommendations of best practices prescribed in the MCCG 2017. The Company has disclosed its application of
each practice set out in MCCG 2017 in a prescribed format of Corporate Governance Report (“CG Report”) and the
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The Board is pleased to inform that the Company has established the following policies which can be viewed at the
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(a) Board Charter

(b) Code of Conduct
(c) Nomination and Election Process of Board Members
(d) Board Remuneration Policy
(e) Corporate Disclosure Policy
(f) Whistle-Blowing Policy
(g) Corporate Social Responsibility, Environmental and Sustainability Policy
A. BOARD OF DIRECTORS
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The Board Charter and Code of Conduct (“The Charter”) adopted by the Board provides guidance to the Board
LQWKHIXO¿OPHQWRILWVUROHVGXWLHVDQGUHVSRQVLELOLWLHVZKLFKDUHLQOLQHZLWKWKHSULQFLSOHVRIJRRGFRUSRUDWH
governance. The Charter is subject to periodical review to ensure consistency with the Board’s strategic intent
as well as relevant standards of corporate governance.
The Board is also committed to conducting business in accordance with the highest standards of business ethics
and complying with applicable laws, rules and regulations. The Code of Conduct provides guidance for Directors
regarding ethical and behavioural considerations and/or actions as they address their duties and obligations
during the appointment.
The Board is responsible to determine its optimised size in order to carry out its responsibility and authority
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The Charter will periodically be reviewed and updated in accordance with the needs of the Company and any
new regulations that may have an impact in discharging the Board’s responsibilities. The Charter was last
reviewed and approved on 27 May 2019.
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7KH%RDUGFXUUHQWO\KDVVHYHQPHPEHUVIRXU([HFXWLYH'LUHFWRUVDQGWKUHH1RQ([HFXWLYH'LUHFWRUV

WKUHHRIZKRPDUH,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRUV7KLVFRPSRVLWLRQLQFRPSOLDQFHZLWKWKHPLQLPXP
one-third (1/3) requirement for Independent Directors to be on the Board. The Board is led by Tan Sri Dato’
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Chen Chuan, the Group Managing Director.
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Group. The role of Chairman and Group Managing Director of the Company are separated to ensure a balance
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HIIHFWLYHQHVVRIWKH%RDUGZKLOVWWKH*URXS0DQDJLQJ'LUHFWRUWRJHWKHUZLWKWKH*URXS&KLHI([HFXWLYH2I¿FHU
and Management ensures proper implementation of policies and strategies as adopted by the Board for the
business operations of the Group.
29
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The evaluation of potential candidates for new directorship and directors to be nominated for re-election are
delegated to the Nomination Committee (“NC”) with recommendation being made to the Board for decision. On
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KHUGXW\DQGUHVSRQVLELOLW\ZLWKUHDVRQDEOHGXHFDUHVNLOOVDQGGLOLJHQFH0HPEHUVRIWKH%RDUGDUHH[SHFWHG
WRGHYRWHVXI¿FLHQWWLPHDQGHIIRUWWRGLVFKDUJHWKHLULQGLYLGXDOUHVSRQVLELOLWLHVZLWKUHDVRQDEOHGXHFDUHVNLOOV
and diligence. Individual members of the Board are required to inform the Chairman before accepting any new
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The Board composition is governed by the Constitution of the Company. The Board shall comprise of at least
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Furthermore, in order to assert an element of independence and check and balance role to the Board, at least
two (2) Directors or one third (1/3) of the Board (whichever is higher), shall be independent, in accordance with
the Main Market Listing Requirements (“Main LR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”).
7KHWHQXUHRIDQ,QGHSHQGHQW'LUHFWRUVKRXOGQRWH[FHHGDFXPXODWLYHWHUPRIQLQH\HDUV8SRQFRPSOHWLRQ
of the nine (9) years, such Independent Director may continue to serve on the Board subject to the Directors’ re-
designation as a Non-Independent Director. Otherwise, the Board must justify and seeks shareholders’ approval
to be retained as an Independent Director. As for the retention of an Independent Director above twelve (12)
years, the Board shall seek shareholders’ approval through the two-tier voting process.
The retirement and re-election of Directors are in accordance to the Constitution of the Company, which provides
that all Directors of the Company, including the Group Managing Director are subject to retirement. At least one
WKLUGLQQXPEHURIWKH%RDUGDQGWKRVHZKRKDYHEHHQORQJHVWLQRI¿FHDUHVXEMHFWWRUHWLUHPHQWE\URWDWLRQ
GXULQJWKHDQQXDOJHQHUDOPHHWLQJ$QHZO\DSSRLQWHG'LUHFWRUVKDOOUHWLUHDWWKHQH[WDQQXDOJHQHUDOPHHWLQJ
A retiring Director is eligible for re-election.
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SOD\ DQ LPSRUWDQW UROH E\ FRQWULEXWLQJ WKHLU NQRZOHGJH DGYLFH DQG H[SHULHQFH WRZDUGV PDNLQJ LQGHSHQGHQW
judgement on issues of strategies, performance, resources and standards of conduct.
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The Board meets at least once in a quarter. The Meeting agendas and a set of Board Papers are circulated at
least seven (7) days prior to the Board Meetings in a timely manner to ensure that the Directors can peruse the
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6HQLRU0DQDJHPHQWLVLQYLWHGWRDWWHQGWKHVHPHHWLQJVWRH[SODLQDQGFODULI\PDWWHUVZKHUHQHFHVVDU\
The Company Secretaries organise and attend all Board Meetings to ensure proper records of the proceedings.
Directors are given access to any information within the Company and are free to seek independent professional
DGYLFHDWWKH&RPSDQ\¶VH[SHQVHLIQHFHVVDU\LQIXUWKHUDQFHRIWKHLUGXWLHV$OO'LUHFWRUVDOVRKDYHDFFHVVWR
the advice and services of the Company Secretaries who are responsible for ensuring that Board procedures
are met and in accordance with regulatory requirements.
30
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Board Meetings are as follows:
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Tan Sri Dato’ Azizan Bin Husain Chairman/ 4/4 100

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Datuk Seri Son Chen Chuan Group Managing Director 4/4 100
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'DWXN6RQ7RQJ(QJ ([HFXWLYH'LUHFWRU
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The retirement and re-election of Directors are in accordance to the Constitution of the Company, which provides
that all Directors of the Company, including the Group Managing Director are subject to retirement. At every
Annual General Meeting (“AGM”), at least one third (1/3) in number of the Board and who have been longest in
RI¿FHDUHVXEMHFWWRUHWLUHPHQWE\URWDWLRQ$Q\QHZO\DSSRLQWHG'LUHFWRUVGXULQJWKH\HDUPXVWRIIHUWKHPVHOYHV
WRWKH6KDUHKROGHUVIRUUHHOHFWLRQDWWKH¿UVW$*0IROORZLQJWKHLUDSSRLQWPHQW
7KH WHQXUH RI DQ ,QGHSHQGHQW 'LUHFWRU VKRXOG QRW H[FHHG D FXPXODWLYH WHUP RI QLQH \HDUV 3XUVXDQW WR
MCCG 2017, an Independent Director who has served for a cumulative term of more than nine (9) years would
need to seek re-appointment at the AGM. Whereas, if the Board intends to retain the Independent Director after
\HDUWKH%RDUGVKRXOGSURYLGHMXVWL¿FDWLRQDQGVHHNDQQXDOVKDUHKROGHUV¶DSSURYDOWKURXJKDWZRWLHUYRWLQJ
process.
A Director shall remain Independent only if:
i) The independence assessment conducted by the Nomination Committee (with such independent director
being abstained from the deliberation if he is a member) based on the above procedure and criteria
for “independence” as prescribed under Paragraph 1.01 and Practice Note 13 of the Main LR on such
Independent Director determines that the independence of such Independent Director is preserved and is
not deteriorated in any manner due to passage of time and reported as such to the Board; and
ii) The continuing of such Director as Independent Director is recommended by the Board, based on the
independence assessment conducted by the Nomination Committee with the results of the independent
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WRDFWDV,QGHSHQGHQW'LUHFWRULQDJHQHUDOPHHWLQJDQGWKHRUGLQDU\UHVROXWLRQIRUVXFKDJHQGDLVUDWL¿HG
by the shareholders during such general meeting.
All Directors seeking for re-election/re-appointment need to be assessed by the Nomination Committee on their
capability and suitability.
31
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The Group acknowledges the importance of continuous education and training to the Board members.
Directors are encouraged to attend seminars and/or conferences organised by relevant regulatory authorities
and professional bodies to keep abreast with the latest developments in the market place and new statutory and
regulatory requirements.
Details of trainings attended by the Directors are as follows:-
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Tan Sri Dato’ Azizan Bin Husain ISO 22000:2018 Awareness & Transition Training 14.06.2019
Datuk Seri Son Chen Chuan ISO 22000:2018 Awareness & Transition Training 14.06.2019
Datuk Son Tong Leong ISO 22000:2018 Awareness & Transition Training 14.06.2019
Datuk Son Tong Eng ISO 22000:2018 Awareness & Transition Training 14.06.2019
Datuk Jeffery Ong Cheng Lock ISO 22000:2018 Awareness & Transition Training 14.06.2019
Mr. Lim Keat Sear ISO 22000:2018 Awareness & Transition Training 14.06.2019
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Transitional Issues from GST to SST 12.09.2018
Accounting for Agriculture Sector: Practical App of 18.10.2018
MFRS141
MPERS – Preparation of MPERS Financial Statements 30.10.2018
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ISO 22000:2018 Awareness & Transition Training 14.06.2019
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The Board is also regularly updated by the Company Secretaries on the latest amendments to the Main LR.
The Board will on a continuing basis evaluate and determine the training needs of each Director, particularly
on relevant new laws and regulations and essential practices for effective corporate governance and risk
management to enable the Directors to effectively discharge their duties.
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The following Committees have been established to assist the Board to discharge its duties and responsibilities.
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The role of the Risk Management and Audit Committee is to support the Board in overseeing the processes
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Company.
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following requirements:
(a) a majority must be Independent Directors.
(b) at least one (1) member –
i. must be a member of the Malaysian Institute of Accountants; or

ii. if he is not a member of the Malaysian Institute of Accountants, he must have at least three (3)
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Accountants Act, 1967; or
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1st Schedule of the Accountants Act 1967.
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(c) Alternate Director shall not be appointed as a member of the Audit Committee.
(d) The members of the Risk Management and Audit Committee shall elect a chairman from amongst
themselves who shall be an Independent Director.
Objectives
a) The principal objectives of the Risk Management and Audit Committee is to assist the Board in
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i) Assessing the risk management policies and procedures and internal control;
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WKHDXGLWSURFHVVHVWKH*URXSDQGLQPRQLWRULQJWKH*URXS¶V0DQDJHPHQWRIEXVLQHVV¿QDQFLDOULVN
SURFHVVHVDQGDFFRXQWLQJDQG¿QDQFLDOUHSRUWLQJSUDFWLFHV
c) Determine that the Company has adequate administrative, operational, and internal accounting
controls and that the Group is operating in accordance with its prescribed procedures, codes of
conduct and applicable legal and regulatory requirements.
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Management for distribution to shareholders and the general public.
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enhance their independence from Management.
f) Provide assistance to the Board in setting and overseeing the Risk Management Framework of the
Group and regularly assessing such Risk Management Framework to ascertain its adequacy and
effectiveness.
33
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The Nomination Committee was set up by the Board to ensure it has an appropriate balance, size and the
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intended goals and objectives. The nomination and election process of Board Members are set out in the
Nomination and Election Process of Board Members published in the Company’s website.
The members of the Committee are as follows:-
Chairman : Datuk Jeffery Ong Cheng Lock

(Independent Non-Executive Director)
Members : Tan Sri Dato’ Azizan Bin Husain
Lim Hwa Yu
Lim Keat Sear
(Non Independent Non-Executive Director)
The Board delegated the annual assessment of effectiveness of the Board as a whole, individual members
and its Board Committees to theNomination Committee. The Nomination Committee is required to carry
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process established by the Board and to report annually its assessment of the full Board.
The function of the Nomination Committee are summarised as follows:
a) Consider and make recommendations on candidates for directorships proposed by the Group
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c) Assess annually the following for recommendation the Board for approval:-
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2016;
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The Remuneration Committee comprises the following members:-
Chairman : Tan Sri Dato’ Azizan Bin Husain

Members : Datuk Jeffery Ong Cheng Lock
Lim Hwa Yu
Lim Keat Sear
(Non Independent Non-Executive Director)
The function of the Remuneration Committee is to recommend to the Board, the remuneration packages of
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is designated to consider.
The remuneration procedures are set out in the Board Remuneration Policy adopted by the Board. The
Directors’ fees are recommended by the Board and are subject to the approval of the shareholders of the
Company at the general meeting.
In discharging this responsibility, the Committee has obtained the advice of independent professional
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Company.
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50 50 50 50 50 50 50
([HFXWLYH 150,000 180,000 2,132,800 731,200 84,000 519,864 3,797,864
1RQ([HFXWLYH 200,000 - 72,000 - - - 272,000
The number of Directors of the Company whose total remuneration fall within the following band:-
Range of Remuneration Number of Directors

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follows:-
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50 50 50 50 50
6HQLRU0DQDJHPHQW 268,829 61,940 - 42,635 373,404
The number of Senior Management of the Company whose total remuneration fall within the following band:-
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All Directors are provided with information on a timely basis. The agenda and Board Papers are circulated to the
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Management. The Board has unrestricted access to any information pertaining to the Group as well as to the
advice and services of the Company Secretaries and independent professional advisers whenever appropriate
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requirements.
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Shareholders and investors’ relationship is a matter of importance today. Effective communication will help to
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information on operations, activities and performance of the Group to the shareholders, investors and public via
the following:-
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DQG¿QDQFLDOLQIRUPDWLRQDQGWKHLQIRUPDWLRQRQWKH%RDUGDQG&RPPLWWHHV
b) Various announcements made to Bursa Malaysia Securities Berhad.
c) The website of the Company which provides the updated information of the Company such as products
and activities.
The AGM represents the principal forum for dialogue and interaction with all shareholders. At each AGM, the
Board presents the progress and performance of the Group’s business and invites shareholders to participate
in the question and answer session.
G. ACCOUNTABILITY AND AUDIT
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The Board, assisted by the Risk Management and Audit Committee aims to present a balance and understandable
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and quarterly reports.
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of this Annual Report.
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The Board acknowledges the importance of internal control including risk management both in the strategy and
operational level. The Board recognises its responsibility for a sound internal control system covering not only
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The Group’s Statement on Risk Management and Internal Control are set out on pages 39 to 45 of this Annual
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36
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auditors in seeking their professional advice and ensuring compliance with the applicable laws and regulations.
The Risk Management and Audit Committee seeks regular assurance on the effectiveness of the internal control
system through independent appraisal by the auditors in ensuring compliance with the applicable accounting
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Ethics, Conduct and Practice) of the Malaysian Institute of Accountants.
The scope of audit and emphasis are as follows:

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DERXWZKHWKHUWKH¿QDQFLDOVWDWHPHQWVDUHIUHHRIPDWHULDOPLVVWDWHPHQWZKHWKHUFDXVHGE\IUDXGRUHUURU
&RUSRUDWH'LVFORVXUH
The Company has adopted a Corporate Disclosure Policy to ensure accurate, clear, timely and complete
disclosure of material information necessary for informed investing and has taken reasonable steps to ensure
that all who invest in the Company’s securities enjoy equal access to such information to avoid an individual or
selective disclosure.
Apart from the above, the Company has also implemented a Whistle Blowing Policy programme. Through
this program, employees are encouraged to discreetly disclose concerns about illegal, unethical or improper
business conduct within the Company. In this manner, the employees can help the Company to monitor and
keep track of such illegal, unethical or improper business conduct within the Company which otherwise may not
be easily detected through normal process or transaction.
This policy is designed to facilitate employees to disclose any improper conduct (misconduct or criminal offence)
through internal channels. Such misconduct or criminal offences include (but not limited to) the following:
i. Fraud;
ii. Bribery;
iii. Abuse of Power;
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v. Theft or embezzlement;
vi. Misuse of Company’s Property; and
vii. Non Compliance with Procedure
This Policy is for the employees to raise the matters in an independent and unbiased manner. Employees
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appropriate steps.
This Policy is administered by the Group’s Top Management and overseen by the Risk Management and Audit
Committee.
37
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The Board is committed to operate its business in accordance with environmental, social and economic
responsibility. These include working within the laws in order to be innovative and by demonstrating initiative to
meet the requirements of various stakeholders.
The Company strives to achieve sustainable long term balance between meeting its business goals and
preserving the environment. Its commitments with respect to sustainability are in the areas of workplace,
marketplace, community and environment.
The strategies to promote sustainability and its implementation can be found at the Company’s website.
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The Company recognises the importance of CSR and has taken a proactive approach wherever possible to
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organisations.
The Company also organises educational factory tours for various educational and governmental institutions.
Furtherance to the above, in support of the local institutions of higher learning, the Company accepts
undergraduates to perform their industrial training in various departments at the factories owned by the Company.
At Company’s level, the Company hosts its annual dinner for all its local and foreign employees to foster good
relationship and harmonious ties between all level of employees of all races and as a token of recognition from
the Top Management for the commitment and dedication of the employees.
38
STATEMENT ON RISK MANAGEMENT

AND INTERNAL CONTROL
INTRODUCTION
The Board of Directors (“the Board”) of Oriental Food Industries Holdings Berhad (“the Company” or “OFIH”)
acknowledges the importance of maintaining good risk management and internal control system within OFIH and
its subsidiaries (collectively, “the Group”) and is pleased to provide the following statement on the state of the risk
management and internal control systems which outlines the nature and scope of risk management and internal
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statement disclosed pursuant to Paragraph 15.26(b) of Main Market Listing Requirements and Malaysian Code on
Corporate Governance. This statement was prepared by taking into account of the Statement on Risk Management
and Internal Control: Guidelines for Director and Listed Issuers (“The Guidelines”) pursuant to Practice Note 9 of the
Main Market Listing Requirements. The scope of this Statement includes OFIH and all operating subsidiaries.
A. BOARD RESPONSIBILITY
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and for reviewing their adequacy and effectiveness so as to safeguard all its stakeholders’ interests and protecting
the Group’s assets. The Board is responsible for determining the acceptable risk tolerance of the Group as well
as to articulate and implement risk management and internal control system. The Board delegates the duty of
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review the adequacy and effectiveness of the risk management and internal control system within the Group is
delegated to the Risk Management and Audit Committee by the Board, through its terms of reference approved
by the Board, in order to provide assurance to the Board on the adequacy and effectiveness of governance, risk
and control structures and processes of the Group. Through the Risk Management and Audit Committee, the
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7KHV\VWHPRILQWHUQDOFRQWUROVFRYHUVLQWHUDOLDULVNDVVHVVPHQWDVZHOODV¿QDQFLDORSHUDWLRQDOHQYLURQPHQWDO
and compliance controls. However, in view of the limitations that are inherent in any system of risk management
and internal controls, the system of risk management and internal control are designed to manage, rather
than to eliminate, the risk of failure to achieve the Group’s business objectives. Accordingly, the system of risk
management and internal control can only provide reasonable and not absolute assurance against material
misstatement of losses and fraud.
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The Board recognises that an important element of a sound risk management and internal control system is to
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V\VWHPDWLFDOO\GXULQJWKH¿QDQFLDO\HDUXQGHUUHYLHZ7KH%RDUGKDGSXWLQSODFHDIRUPDO5LVN0DQDJHPHQW
Framework in February 2019 with structured risk management structure and processes for the enterprise wide
risk management activities that are embedded throughout the Group as a second line-of-defence. In addition,
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based quality management system is established and maintained to manage organizational quality risks and
opportunities in a structured manner.
The principles, practices and process of the Risk Management Framework established by the Board are, in
material aspects, guided by ISO 31000:2018 – Risk Management Guidelines. The Risk Management Framework
FOHDUO\GH¿QHVWKHULVNPDQDJHPHQW¶VREMHFWLYHVDQGSURFHVVHVDORQJZLWKFOHDUUROHVDQGUHVSRQVLELOLWLHVRIWKH
Board, Risk Management and Audit Committee (the oversight role), Risk and Sustainability Management Team
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39

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The roles and responsibilities of the RSMT includes the following:
a) Implement the risk management policy as approved by the Board;

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and communicate methodology to the risk owners;
c) Ensuring that risk strategies adopted are aligned with the Group’s organisational strategies. (e.g. vision/
mission, corporate strategies/goals, etc.), risk management policy & process and risk appetite/tolerance;
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required; and
e) Update the Board, through the Risk Management and Audit Committee, on changes to the Key Risk
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taken by management in managing the changes.
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a) Manage the risks of the business processes under his/her control;

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plans and the status of these plans; and
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his/her duty and the importance of the related controls.
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activities. Risk assessment, at gross and residual level, are guided by the likelihood rating and impact rating
established based on the risk tolerance approved by the Board. Based on the risk management process, Risk
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UHOHYDQWNH\ULVNVLGHQWL¿HGDQGUDWHGEDVHGRQWKHDJUHHGULVNUDWLQJ5LVNDQG2SSRUWXQLW\3ODQVDUHXVHGIRU
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the Board’s immediate attention and risk treatment (including implementing of appropriate control measures) as
well as for future risk monitoring. As an important risk monitoring mechanism, the Risk and Opportunity Plans
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are reported to the RSMT and Risk Management and Audit Committee for review and its reporting to the Board.
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frequent basis (if circumstances required) and report to the Risk Management and Audit Committee and the
Board on the results of the review and assessment.
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incorporated into the Risk and Opportunity Plans for on-going risk monitoring and assessment. The updated
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under review for its review and deliberation on its adequacy and effectiveness.
At the strategic level, business plans and business strategies with risks considerations are formulated by the
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strategies are in line with the Group’s risk tolerance. Update of the implementation progress of the approved
strategies are discussed in subsequent Board meetings for follow-up and review.
40

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managing the risks within their department. Risk owners are responsible for adequate and effective operational
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of risks and control procedures on a daily basis. Changes in the key business risks faced by the Group or
emergence of new business risks and the corresponding internal control are discussed during management
meetings to determine the risk treatment and implementation of effective controls to manage the risk. Critical
and material changes in the key business risks faced by the Group or emergence of new material business risks
are highlighted to the RSMT for the decision on the risk treatment and its implementation as well as its reporting
to the Risk Management and Audit Committee and the Board.
The monitoring of the risk management by the Group is enhanced by the internal audits carried out by the
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based on the internal plan approved by the Risk Management and Audit Committee.
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review and up to the date of approval of this statement.
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The key features of the Group’s internal control systems are described below:
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The role, functions, composition, operation and processes of the Board are guided by a formal Board
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preserve the independence of the Board from the Management.
Board Committees (i.e. Risk Management and Audit Committee, Remuneration Committee and Nomination
Committee) established to carry out duties and responsibilities delegated by the Board, are governed by
their respective written terms of reference.
Meetings of Board of Directors and respective Board Committees are carried out on a scheduled basis
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review and approval after taking into account the risk consideration and responses.
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Integrity and ethical values are enshrined in a formal Code of Conduct established and approved by
the Board. The formal code forms the foundation of integrity and ethical value of the Group. Integrity
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carry out their duties and responsibilities assigned are also established and formalised in the Employee
Handbook.
Formal Whistle-Blowing Policy is put in place by the Board and overseen by the Risk Management and
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Conduct, legal issues and accounting or audit matters.
41

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The Group has a formal organisation structure, with clear lines of reporting and accountability, in place
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are met. A formal Human Resource Policy Manual is put in place by the Management to ensure that
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delegated while accountability of performance and controls are assigned accordingly to competent staffs
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accountability of performance and controls for key positions are further enhanced via the job descriptions
established by the Management.
The authorisation requirements for key processes are incorporated in the control documentations and
stated in the Group’s policies and procedures.
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The Group has documented policies and procedures that are periodically reviewed and updated to ensure its
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&RQWURO 3RLQWV ³+$&&3´ FHUWL¿FDWLRQ ,QWHUQDWLRQDO 2UJDQLVDWLRQ IRU 6WDQGDUGLVDWLRQ ³,62´
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internal control requirements.
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The Group has put in place a formal Human Resource Policy Manual and Employee Handbook throughout
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DQGUHWDLQLQJDGHTXDWHFRPSHWHQWHPSOR\HHVSRVVHVVLQJQHFHVVDU\NQRZOHGJHVNLOODQGH[SHULHQFHLQ
RUGHU WR FDUU\ RXW WKHLU DVVLJQHG GXWLHV DQG UHVSRQVLELOLWLHV HIIHFWLYHO\ DQG HI¿FLHQWO\ 7UDLQLQJ QHHGV RI
HPSOR\HHVDUHLGHQWL¿HGDQQXDOO\VRWKDWUHOHYDQWWUDLQLQJVDUHSURYLGHGWRVXFKHPSOR\HHVWRXSJUDGH
their knowledge and skill sets.
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At operational level, clear reporting lines are established across the Group and operation and management
reports are prepared for dissemination to relevant personnel for effective communication of critical
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REMHFWLYHV 0DWWHUV WKDW UHTXLUH WKH %RDUG DQG ([HFXWLYH 'LUHFWRUV¶ DWWHQWLRQ DUH KLJKOLJKWHG IRU UHYLHZ
deliberation and decision on a timely basis.
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i.e. computerized enterprise resources planning systems, secured intranet, electronic mail system and
modern telecommunication, so that operation data and management information can be communicated
timely and securely to dedicated personnel within the Group for decision making and for communication
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¿QDQFLDODQGPDQDJHPHQWUHSRUWVDUHJHQHUDWHGDWGLIIHUHQWOHYHOVRIWKHRUJDQL]DWLRQVWUXFWXUHIRUUHYLHZ
and decision making. The management and board meetings are held for effective two-way communication
of information at different levels of management and the Board.
42

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YLL 0RQLWRULQJDQG5HYLHZ$FWLYLWLHV
a. Daily management meetings of Head of Departments are held to review operational performance of key
divisions/departments within the Group.
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Directors.
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management, and subsequently reported to the Board.
d. Internal audit conducted by Outsourced Internal Audit function (which is reporting directly to the Risk
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function assesses the adequacy and effectiveness of risk management and internal control in relation to
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Group to the Risk Management and Audit Committee based on the results of the audit work performed.
Recommendations for improvement are proposed by the internal audit function to minimise the potential
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health and environment by independent consultants engaged by the Group and/or relevant regulatory
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the fourth-line-of-defence.
D. INTERNAL AUDIT FUNCTION
The Group relies on the internal audit function as the third line-of-defence to provide the Board and the
Management with the required level of assurance that the governance, risk management, internal control
system is operating adequately and effectively in mitigating organisational risks to achieve the Group’s corporate
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Advisory Sdn Bhd, which reports directly to the Risk Management and Audit Committee. The appointment and
resignation of the outsourced internal audit function as well as the proposed audit fees are subject to review and
approval by the Risk Management and Audit Committee for its reporting to the Board for ultimate approval.
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Auditor accredited by the Institute of Internal Auditors Global and a professional member of the Institute of
Internal Auditors Malaysia. The internal audits are carried out, in material aspects, in accordance with the
International Professional Practices Framework established by the Institute of Internal Auditors Global. The
outsourced internal audit function is manned by one (1) engagement director, three (3) managers/assistant
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7KHLQWHUQDODXGLWSODQLQUHVSHFWRIWKH¿QDQFLDO\HDU0DUFKZDVSUHSDUHGXVLQJDULVNEDVHGDSSURDFK
WKDWWDNHVLQWRFRQVLGHUDWLRQWKHH[LVWLQJDQGHPHUJHQWNH\EXVLQHVVULVNVLGHQWL¿HGLQWKH*URXS¶V.H\5LVNV
3UR¿OH DQG PDQDJHPHQW¶V LQSXW 6XFK LQWHUQDO DXGLW SODQ ZDV SUHVHQWHG WR WKH 5LVN DQG $XGLW &RPPLWWHH
for review before recommending to the Board for approval. Scheduled internal audits were performed by the
outsourced internal audit function based on the approved internal audit plan, with any subsequent change
to the approved plan and scope referred to the Risk Management and Audit Committee for review and its
recommendation to the Board for approval prior to the commencement of the audit.
The internal control review procedures performed by the outsourced internal audit function are designed to
understand, document and evaluate risks and related controls to determine the adequacy and effectiveness
of governance, risk and control structures and processes and to formulate recommendations for improvement
thereon. The internal audit procedures applied principally consist of process evaluations through interviews with
relevant personnel involved in the process under review, review of the Standard Operating Procedures and/or
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respective audit areas through the review of the samples selected based on sample size are calculated through
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43

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management, disaster recovery management, performance management and evaluation, budgetary system,
Code of Conduct, remuneration policy and procedures, risk management policy and procedures, Board and Senior
Management governance structure, delegation of authorities, investment appraisal/divestment management,
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corruption and bribery policy and procedures, fraud policy and procedures and sustainability management
of the Group as well as purchasing planning, purchasing requisition and processing, supplier management,
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operations located in Malaysia.
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recommendations, management responses and action plans were presented by the outsourced internal audit
function to the Risk Management and Audit Committee for review and deliberation during the Risk Management
and Audit Committee meeting. Updates on the status of implementation of management action plans as
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Risk Management and Audi Committee to ensure action plans were satisfactorily implemented to address the
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the review and deliberation to the Board in order for the Board to discharge its responsibility to ensure that the
risk management and internal controls are in place and working adequately and effectively to manage the risks
within the risk tolerance of the Group and for regulatory compliance.
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to RM26,000.
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development of the outsourced internal audit function was also reported to the Risk Management and Audit
Committee for their review and assessment on the adequacy and effectiveness of the outsourced internal audit
function. Based on the above review and reporting mechanism as well as review of the works performed and
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Committee is of the view that the scope, functions (including independence), competency, resources, authorities
granted to the outsourced internal audit function as well as internal audit plan and processes are adequate
to provide the Risk Management and Audit Committee with reasonable assurance that governance, risk and
control structures and processes of the Group is adequate and effective and that the results of the internal audit
plan, processes or investigation undertaken is adequately communicated to the Risk Management and Audit
Committee and appropriate actions are taken on the recommendations of the outsourced internal audit function,
if any.
In addition to the above, for the purpose of compliance with ISO 9001:2015 and ISO 22000 Quality Management
Systems, internal quality audits are carried out by in-house independent personnel and surveillance audit is
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procedures.
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DQG WKH *URXS &KLHI ([HFXWLYH 2I¿FHU EHLQJ WKH SHUVRQ SULPDULO\ UHVSRQVLEOH IRU WKH PDQDJHPHQW RI WKH
¿QDQFLDODIIDLUVRIWKH&RPSDQ\KDYHSURYLGHGDVVXUDQFHWRWKH%RDUGLQZULWLQJVWDWLQJWKDWWKH*URXS¶VULVN
management and internal control systems have operated adequately and effectively, in all material aspects, to
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44

F. OPINION AND CONCLUSION
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were reviewed and deliberated by the Board, including, but not limited to, the adequacy and effectiveness of
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ULVNVLGHQWL¿HGE\WKH%RDUGGXULQJVXFKUHYLHZVDQGGHOLEHUDWLRQ7KURXJKVXFKUHYLHZVE\WKH%RDUGDVZHOO
as the monitoring and review mechanism stipulated above coupled with the assurance provided by Managing
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audit function, other professionals and regulatory bodies and reported to the Board, the Board is of the opinion
that the risk management and internal control systems are satisfactory and have not resulted in any material
losses, contingencies or uncertainties that would require disclosure in the Group’s annual report.
The Board is committed towards maintaining an effective risk management and internal control systems
throughout the Group and where necessary put in place appropriate plans to further enhance the Group’s risk
management and internal control systems. Notwithstanding this, the Board will continue to evaluate and manage
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challenging business environment.
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7KHH[WHUQDODXGLWRUVKDYHUHYLHZHGWKLV6WDWHPHQWRQ5LVN0DQDJHPHQWDQG,QWHUQDO&RQWUROSXUVXDQWWRWKH
scope set out in Audit and Assurance Practice Guides (AAPGs) 3, Guidance for Auditors on Engagements to
Report on the Statement on Risk Management and Internal Control included in the Annual Report issued by
Malaysian Institute of Accountants (“MIA”) for inclusion in the Annual Report of the Group for the year ended 31
March 2019, and reported to the Board that nothing has come to their attention that cause them to believe that
the Statement intended to be included in the annual report of the Group, in all material aspects: has not been
prepared in accordance with the disclosures required by paragraphs 41 and 42 of the SRMICG or is factually
LQDFFXUDWH7KHH[WHUQDODXGLWRUV¶UHSRUWZDVPDGHVROHO\IRUDQGGLUHFWHGVROHO\WRWKH%RDUGRI'LUHFWRUVLQ
connection with their compliance with the listing requirements of Bursa Malaysia Securities Berhad and for no
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person other than the Board of Directors in respect of any aspect of this report.
$$3*GRHVQRWUHTXLUHWKHH[WHUQDODXGLWRUVWRFRQVLGHUZKHWKHUWKH'LUHFWRUV¶6WDWHPHQWRQ5LVN0DQDJHPHQW
and Internal Control covers all risks and controls, or to form an opinion on the adequacy and effectiveness of
the Group’s risk management and internal control system including the assessment and opinion by the Board of
Directors and management thereon.
45
RISK MANAGEMENT AND AUDIT COMMITTEE REPORT
&20326,7,21
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As at the date of this Annual Report, the composition of the Risk Management and Audit Committee (“the Committee”)
is as follows:
Mr. Lim Hwa Yu

(Chairman, Independent Non-Executive Director)
Tan Sri Dato’ Azizan Bin Husain

(Member, Independent Non-Executive Director)
Datuk Jeffery Ong Cheng Lock

(Member, Independent Non-Executive Director)
The composition of the Audit and Risk Management Committee complies with Chapter 15 of the Bursa Malaysia
Securities Berhad (“Bursa Securities”) Main Market Listing Requirements (“Listing Requirements”).
6HFUHWDULHV
The Secretaries of Oriental Food Industries Holdings Berhad, Ms. Karina Chong Mei Ying, Ms. Chan Sau Leng and
Cik Ruzeti Emar Binti Mohd Rosli are also Secretaries of the Committee.
0HPEHUVKLS
The Committee shall be appointed by the Board of Directors amongst the Directors of the Company and the following
requirements must be met:-
(a) The Committee must consist of not less than three (3) members;
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Directors;
(c) The Chairman of the Committee must be an Independent Director;
(d) At least one (1) member of the risk management and audit committee –
i. must be a member of the Malaysian Institute of Accountants; or
ii. if he is not a member of the Malaysian Institute of Accountants, he must have at least three (3) years’
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LVDPHPEHURIRQHRIWKHDVVRFLDWLRQVRIDFFRXQWDQWVVSHFL¿HGLQ3DUW,,RIWKHVW6FKHGXOHRIWKH
Accountants Act 1967; or
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(“Bursa Securities”).
(e) Alternate director shall not be appointed as a member of the Committee.
(f) The members of the Committee shall elect a chairman from amongst themselves who shall be an independent
director.
(g) In the event of any vacancy in the Committee resulting in the non-compliance of subparagraphs 15.09(1) and
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46
7(5062)5()(5(1&(
The Board had on 27 May 2019 reviewed the Terms of Reference of the Committee in line with the provisions of
the Listing Requirements, and the Malaysian Code on Corporate Governance 2017 and had included the following
duties and responsibilities of the Committee, and where appropriate, the Committee shall report to the Board on the
following:-
1. To review the maintenance of an effective accounting system and controls in the business process.
2. To review the Company’s accounting policies and reporting requirements to ensure compliance with the relevant
laws and standards.
3. To review Company’s compliance with relevant law and Listing Requirements of Bursa Securities.
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the Management.
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6. To review the adequacy of the scope, functions, competency and resources of the internal audit functions and
the necessary authority to carry out its work.
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7ROLDLVHGLUHFWO\ZLWKWKHH[WHUQDODXGLWRUVWKH0DQDJHPHQWDQGWKH%RDUGDVDZKROHSDUWLFXODUO\ZLWKUHJDUG
to the Audit plan and Audit report.
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10. To review the internal audit programme, the results of the internal audit programme, processes or investigation
undertaken and whether or not appropriate action is taken on the recommendations of the internal auditors.
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focusing particularly on:
(a) changes in or implementation of major accounting policy changes;
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(c) compliance with accounting standards and other legal requirement.
12. To review the contents of the Annual Report prior to submission to the Board.
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group including any transaction, procedure or course of conduct that raises questions of management integrity.
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not suitable for re-appointment.
16. To review the adequacy and effectiveness of risk management, internal control and management information
systems, including compliance with applicable laws, rules, corporate governance requirements and guidelines.
17. To review the Group’s risk management policy and implementation of the risk management framework.
18. To review and recommend to the Board, the Director’s Statement on Risk Management and Internal Control and
any changes thereto.
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com.my 47
ACTIVITIES FOR THE FINANCIAL YEAR
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provided below:
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Meetings shall be conducted at least four (4) times a year, or more frequently as circumstances dictate.
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A majority of the members, who are Independent Directors, present being not less than two (2), shall form a quorum.
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The attendance records of each member are as follows:-
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Mr. Lim Hwa Yu 4/4

Datuk Jeffery Ong Cheng Lock 3/4
Tan Sri Dato’ Azizan Bin Husain 4/4
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when deemed necessary, the Committee may invite the Board members or any other person to be in attendance to
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Directors.
The Committee carried out its duties for the year in accordance with its Terms of Reference.
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Group prior to submission to the Board for its consideration and approval focusing particularly on changes in or
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matters, unusual events, transactions, judgements made by Management and other legal requirements, and the
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ZLWK 0DQDJHPHQW DQG H[WHUQDO DXGLWRUV DQG KDG REWDLQHG UHDVRQDEOH DVVXUDQFHV WKDW DOO FKDQJHV LQ VLJQL¿FDQW
accounting policies had been implemented; applicable accounting standards approved by MASB and provisions of
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by Management had been assessed; and impact of any changes to the accounting policies and new accounting
standards had been assessed and adopted, where relevant.
48
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Sdn Bhd to undertake independent, objective and systematic reviews of the internal control systems to evaluate its
adequacy and effectiveness. The outsourced Internal Auditors conduct the internal audit reviews according to the
internal audit plan approved by the Committee.
The Committee carried out the following functions:
(a) Reviewed and approved the annual audit plan to ensure adequate scope and coverage on the activities of the
Group, taking into consideration the assessment of key risk areas and ensured that key and high risk areas were
audited annually.
(b) Reviewed the effectiveness of audit programmes, and the adequacy and suitability of the resource requirements
and skill levels of the Internal Auditors for the year and assessed the performance of the Internal Audit Function.
(c) Reviewed the internal audit reports, audit recommendations made and Management’s response to these
recommendations and actions taken to improve the system of internal control and procedures recommendations.
Where appropriate, the Audit and Risk Management Committee had directed Management to rectify and improve
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for improvement.
(d) Monitored the implementation of the audit recommendations to ensure that all key risks and controls had been
addressed.
(e) Reviewed recurrent related party transactions of a revenue or trading nature reports on a quarterly basis for
compliance with the review procedures outlined in the Shareholders’ Mandate and ensured that the transactions
were undertaken on an arm’s length basis and on normal commercial terms which were consistent with the
Group’s usual business practices and policies, and 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.
(f) Reviewed the Statement on Risk Management and Internal Control which provided an overview of the state of
internal controls within the Group prior to the Board’s approval for inclusion in the Annual Report. The Statement
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control in place throughout the Group as described in the Statement on Risk Management and Internal Control,
was sound and effective, providing reasonable assurance that the structure and operation of controls were
appropriate for the Group’s operations. The Committee also acknowledged that implementation measures were
continuously taken to strengthen the system of risk management and internal control so as to safeguard the
interests of stakeholders including shareholders’ investments, and the Group’s assets.
(g) Approved a budget of RM26,000 for the Internal Audit Function to effectively carry out its audit plan for the
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(h) Approved the Risk Management and Audit Committee Report and recommended the same for Board’s approval
for inclusion in the Annual Report.
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and approach, audit plan, key audit areas and relevant technical pronouncements and accounting standards
issued by MASB, and regulating requirements applicable to the Group; and the processes and controls in place
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E 5HYLHZHG DQG GLVFXVVHG ZLWK ([WHUQDO $XGLWRUV WKH UHVXOWV RI WKH DXGLW DQG WKH DXGLW UHSRUW LQ SDUWLFXODU
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Group and of the Company.
49
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and evaluation of the system of internal and accounting controls together with Management’s response to the
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taken by Management.
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the year in accordance with the policies and procedures in place, vide a set of questionnaires covering the
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knowledge; independence and objectivity; audit scope and planning; audit fees; and their communications with
the Risk Management and Audit Committee. The Risk Management and Audit Committee had received from
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safeguards and procedures to address threats or perceived threats to their independence and objectivity, and
that they were in compliance with the independence requirements set out in the By-Laws (On Professional
Ethics, Conduct and Practice) for Professional Accountants (By-Laws) as adopted by the Malaysian Institute of
Accountants.
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I 5HYLHZHGDQGGLVFXVVHGWKHQRQDXGLWIHHVLQUHVSHFWRIVHUYLFHVUHQGHUHGE\WKH([WHUQDO$XGLWRUV7KHQRQ
DXGLWIHHVIRUWKH¿QDQFLDO\HDUHQGHG0DUFKDPRXQWHGWR50
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being present to discuss matters in relation to their review.
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Compliance with laws, regulations, codes and standards.
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a) The Committee monitored the year-to-date progress on the achievement of the Company my reviewing
the performance of the Company on a quarterly basis. The Audit and Risk Management Committee sought
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b) The Committee provided assurance to the Board on the risk reporting and review activities that took place during
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(a) Reviewed related party transactions entered into by the Group and ensured that the transactions undertaken
were in the best interest of the Group, fair, reasonable and on normal commercial terms, and not detrimental to
the interest of the minority shareholders, and recommended the same for approval of the Board.
(b) Reviewed the annual Shareholders’ Mandate in relation to recurrent related party transactions of a revenue or
trading nature for shareholders’ approval to undertake transactions which are recurrent, of a revenue or trading
nature and which are necessary for the day-to-day operations of the Group with related parties (“RRPTs”).
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favourable to the related parties than those generally available to the public and were not to the detriment of the
minority shareholders and that the Group had in place adequate procedures and processes to monitor, track
and identify RRPTs in a timely and orderly manner, and such procedures and processes were reviewed on a
yearly basis or whenever the need arose. The Management had given assurance to the Committee that related
party transactions and mandate for recurrent related party transactions were in compliance with the Listing
Requirements and the Group’s policies and procedures.
50
STATEMENT OF DIRECTORS’ RESPONSIBILITY
As required under the Companies Act, 2016, the Directors of Oriental Food Industries Holdings Berhad have made a
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have been drawn up in accordance with applicable approved accounting standards in Malaysia so as to give a true
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year;
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Group and the Company will continue in business.
Additionally, the Directors relied on the system of internal controls to ensure that the information generated for the
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This statement is made in accordance with a resolution of the Board of Directors dated 24 July 2019.
51
FINANCIAL STATEMENTS
Directors’ report 53
Statement by directors 57
Statutory declaration 57
Independent auditors’ report 58
Statements of comprehensive income 61
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Statements of changes in equity 64
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DIRECTORS’ REPORT
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RESULTS
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53
DIRECTORS’ REPORT
DIRECTORS
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Datuk Seri Son Chen Chuan**
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54
DIRECTORS’ REPORT
DIRECTORS’ INTERESTS
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interest by virtue of shares held by children
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adequate provision had been made for doubtful debts; and
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DIRECTORS’ REPORT
OTHER STATUTORY INFORMATION (CONTINUED)
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Net current assets/(liabilities)
62
STATEMENTS OF FINANCIAL POSITION

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Group Company
Note 2019 2018 2019 2018
RM RM RM RM
Non-current liabilities
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Total liabilities
Net assets
Equity attributable to owners of the parent

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Total equity
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63
STATEMENTS OF CHANGES IN EQUITY

Non-distributable
Equity Fair Value
attributable Reserve for
to owners of Financial Distributable Non-
Group Equity, the parent, Share Assets at Retained controlling
Note total total Capital FVOCI Earnings interest
2019 RM RM RM RM RM RM
Opening balance at 1 April 2018
Effect of adoption of new

accounting standards
0)56
0)56

(restated)
Total comprehensive income
Transactions with owners

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Closing balance at 31 March 2019
2018
Transaction with owners

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Distributable
Company Equity, Share Retained
Note total capital earnings
2019 RM RM RM
Transaction with owners

2018
Transactions with owners

64
STATEMENTS OF CASH FLOWS

Group Company
2019 2018 2019 2018
RM RM RM RM
Operating activities
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in working capital
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65
STATEMENTS OF CASH FLOWS

Group Company
2019 2018 2019 2018
RM RM RM RM
Financing activities
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cash equivalents
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Cash and cash equivalents at 31 March (Note 24)
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1 April Financing 31 March

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1 April Financing 31 March

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66
NOTES TO THE FINANCIAL STATEMENTS

1. Corporate information
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2. Basis of preparation
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3.1 Basis of consolidation
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VXEVLGLDU\$VVHWVOLDELOLWLHVLQFRPHDQGH[SHQVHVRIDVXEVLGLDU\DFTXLUHGRUGLVSRVHGRIGXULQJWKH\HDU
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67

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3.1 Basis of consolidation (continued)
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3.2 Business combinations and goodwill
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measured as the aggregate of the consideration transferred measured at acquisition date fair value and
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3.4 Fair value measurement
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measurement is based on the presumption that the transaction to sell the asset or transfer the liability
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69

3.4 Fair value measurement (continued)
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(a) Sales of goods and property
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3.5 Revenue (continued)
MFRS 15 Revenue from contracts with customers (continued)
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3.5 Revenue (continued)
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3.7 Taxes
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3.7 Taxes (continued)
(ii) Deferred tax (continued)
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3.9 Cash dividend
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3.11 Leases
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3.11 Leases (continued)
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IRUHFDVW HFRQRPLF FRQGLWLRQV 7KH *URXS¶V KLVWRULFDO FUHGLW ORVV H[SHULHQFH DQG IRUHFDVW RI HFRQRPLF
FRQGLWLRQVPD\DOVRQRWEHUHSUHVHQWDWLYHRIFXVWRPHU¶VDFWXDOGHIDXOWLQWKHIXWXUH7KHLQIRUPDWLRQDERXW
WKH(&/VRQWKH*URXS¶VWUDGHUHFHLYDEOHVLVGLVFORVHGLQ1RWH
Inventories valuation
7KH*URXSUHYLHZVWKHDGHTXDF\RISURYLVLRQIRUVORZPRYLQJLQYHQWRULHVDWHDFKUHSRUWLQJGDWHWRHQVXUH
WKDWLQYHQWRULHVDUHVWDWHGDWWKHORZHURIFRVWDQGQHWUHDOLVDEOHYDOXH,QDVVHVVLQJWKHH[WHQWRISURYLVLRQ
IRUVORZPRYLQJLQYHQWRULHVWKHGLUHFWRUVKDYLQJFRQVLGHUHGDOODYDLODEOHLQIRUPDWLRQDUHRIWKHRSLQLRQ
WKDWQRZULWHGRZQRUSURYLVLRQLVUHTXLUHGLQUHVSHFWRIWKH*URXS¶VLQYHQWRULHV
7. Revenue
Group Company
2019 2018 2019 2018
RM RM RM RM
Revenue:
5HYHQXHIURPVDOHVRIVQDFNIRRGDQG
FRQIHFWLRQHULHV
6DOHVRIGHYHORSPHQWSURSHUWLHV
'LYLGHQGLQFRPHIURPDVXEVLGLDU\

Right of return assets and refund liabilities:

5LJKWRIUHWXUQDVVHWV
5HIXQGOLDELOLWLHVDULVLQJIURPULJKWRIUHWXUQV
92

7. Revenue (continued)
6HWRXWEHORZLVWKHUHFRQFLOLDWLRQRIWKHUHYHQXHIURPFRQWUDFWVZLWKFXVWRPHUVZLWKWKHDPRXQWVGLVFORVHGLQ
1RWH6HJPHQWDOUHSRUWLQJ
Sales of
snack food
and Property Investment
confectioneries development holding Total
31 March 2019 RM RM RM RM
Revenue:
([WHUQDOFXVWRPHUV
,QWHUVHJPHQW
7RWDOUHYHQXH

$GMXVWPHQWVDQGHOLPLQDWLRQV

31 March 2018
Revenue:
([WHUQDOFXVWRPHUV
,QWHUVHJPHQW
7RWDOUHYHQXH

$GMXVWPHQWVDQGHOLPLQDWLRQV

8. Other income
Group Company
2019 2018 2019 2018
RM RM RM RM
*DLQRQIRUHLJQH[FKDQJH
UHDOLVHG
XQUHDOLVHG
,QWHUHVWLQFRPH
5HQWDOLQFRPH
0LVFHOODQHRXVLQFRPH
*DLQRQGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQW
5HYHUVDORIDOORZDQFHIRULPSDLUPHQWRIWUDGH
UHFHLYDEOHV1RWH
)DLUYDOXHJDLQRQPRQH\PDUNHWIXQG

93

9. Finance costs
Group
2019 2018
RM RM
,QWHUHVWH[SHQVHRQ
%DQNORDQV
%DQNRYHUGUDIWV
%DQNHUV¶DFFHSWDQFH
7RWDO¿QDQFHFRVWV
3UR¿WEHIRUHWD[
7KHIROORZLQJLWHPVKDYHEHHQLQFOXGHGLQDUULYLQJDWSUR¿WEHIRUHWD[
Group Company
2019 2018 2019 2018
RM RM RM RM
$XGLWRUV¶UHPXQHUDWLRQ
&XUUHQW\HDU
8QGHUSURYLVLRQLQSULRU\HDU
2WKHUVHUYLFHV
'HSUHFLDWLRQRI
3URSHUW\SODQWDQGHTXLSPHQW1RWH
,QYHVWPHQWSURSHUWLHV1RWH
'LUHFWRSHUDWLQJH[SHQVHVDULVLQJIURPUHQWDO
JHQHUDWLQJLQYHVWPHQWSURSHUWLHV
(PSOR\HHEHQH¿WVH[SHQVH1RWH
/RVVRQGLVSRVDORISURSHUW\SODQW
DQGHTXLSPHQW
/RVVRQIRUHLJQH[FKDQJH
5HDOLVHG
8QUHDOLVHG
2SHUDWLQJOHDVHV
0LQLPXPOHDVHSD\PHQWVIRUSUHPLVHV
$OORZDQFHIRULPSDLUPHQWRIWUDGHUHFHLYDEOHV
(PSOR\HHEHQH¿WVH[SHQVH
Group Company
2019 2018 2019 2018
RM RM RM RM
6DODULHVERQXVDQGDOORZDQFHV

2YHUSURYLVLRQLQSULRU\HDU
2WKHUHPSOR\HHEHQH¿WV

,QFOXGHGLQHPSOR\HHEHQH¿WVH[SHQVHRIWKH*URXSDQGWKH&RPSDQ\DUHH[HFXWLYHGLUHFWRUV¶UHPXQHUDWLRQ
DPRXQWLQJWR5050DQG5050UHVSHFWLYHO\
94

12. Directors’ remuneration
7KHGHWDLOVRIGLUHFWRUV¶UHPXQHUDWLRQGXULQJWKH\HDUDUHDVIROORZV
Group Company
2019 2018 2019 2018
RM RM RM RM
([HFXWLYH
)HHV
2YHUSURYLVLRQLQSULRU\HDU
6DODULHVDQGRWKHUHPROXPHQWV
7RWDOH[HFXWLYHGLUHFWRUV¶UHPXQHUDWLRQ
H[FOXGLQJEHQH¿WVLQNLQG
(VWLPDWHGPRQH\YDOXHRIEHQH¿WVLQNLQG
7RWDOH[HFXWLYHGLUHFWRUV¶UHPXQHUDWLRQ
LQFOXGLQJEHQH¿WVLQNLQG
1RQH[HFXWLYH
)HHV
2WKHUHPROXPHQWV
7RWDOQRQH[HFXWLYHGLUHFWRUV¶UHPXQHUDWLRQ
7RWDOGLUHFWRUV¶UHPXQHUDWLRQ
13. Income tax
0DMRUFRPSRQHQWVRILQFRPHWD[
7KHPDMRUFRPSRQHQWVRIWD[H[SHQVHIRUWKH\HDUVHQGHG0DUFKDQGDUH
Group Company
2019 2018 2019 2018
RM RM RM RM
Statements of comprehensive income:

&XUUHQWLQFRPHWD[
2YHUXQGHUSURYLVLRQLQUHVSHFWRI
SUHYLRXV\HDUV

'HIHUUHGLQFRPHWD[1RWH
5HODWLQJWRRULJLQDWLRQDQGUHYHUVDORIWHPSRUDU\
GLIIHUHQFHV
2YHUXQGHUSURYLVLRQLQUHVSHFWRI
SUHYLRXV\HDUV

,QFRPHWD[UHFRJQLVHGLQSUR¿WRUORVV
95

13. Income tax (continued)
5HFRQFLOLDWLRQEHWZHHQLQFRPHWD[DQGDFFRXQWLQJSUR¿W
7KHUHFRQFLOLDWLRQEHWZHHQLQFRPHWD[DQGWKHSURGXFWRIDFFRXQWLQJSUR¿WPXOWLSOLHGE\WKHDSSOLFDEOHFRUSRUDWH
WD[UDWHIRUWKH\HDUVHQGHG0DUFKDQGDUHDVIROORZV
Group Company
2019 2018 2019 2018
RM RM RM RM
3UR¿WEHIRUHWD[
7D[DW0DOD\VLDQVWDWXWRU\WD[UDWHRI

$GMXVWPHQWV
,QFRPHQRWVXEMHFWWRWD[DWLRQ
1RQGHGXFWLEOHH[SHQVHV
(IIHFWRIFHUWDLQH[SHQVHVHOLJLEOHIRUGRXEOH
GHGXFWLRQ
'HIHUUHGWD[DVVHWVUHFRJQLVHGRQXQXWLOLVHG
UHLQYHVWPHQWDOORZDQFHV
2YHUXQGHUSURYLVLRQRILQFRPHWD[LQUHVSHFWRI
SUHYLRXV\HDUV
2YHUXQGHUSURYLVLRQRIGHIHUUHGLQFRPHWD[LQ
UHVSHFWRISUHYLRXV\HDUV
,QFRPHWD[UHFRJQLVHGLQSUR¿WRUORVV
14. Earnings per share
(a) Basic
%DVLFHDUQLQJVSHUVKDUHDPRXQWVDUHFDOFXODWHGE\GLYLGLQJSUR¿WIRUWKH\HDUQHWRIWD[DWWULEXWDEOHWR
RZQHUVRIWKHSDUHQWE\WKHZHLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHVRXWVWDQGLQJGXULQJWKH¿QDQFLDO
\HDU$VWKH&RPSDQ\GLGQRWLVVXHDQ\GLOXWLYHSRWHQWLDORUGLQDU\VKDUHVWKH&RPSDQ\¶VGLOXWHG(36LV
HTXLYDOHQWWRLWVEDVLF(36
7KHIROORZLQJWDEOHVUHÀHFWWKHSUR¿WDQGVKDUHGDWDXVHGLQWKHFRPSXWDWLRQRIEDVLFHDUQLQJVSHUVKDUH
IRUWKH\HDUVHQGHG0DUFK
Group
2019 2018
3UR¿WQHWRIWD[DWWULEXWDEOHWRRZQHUVRIWKHSDUHQW50
:HLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHV
%DVLFHDUQLQJVSHUVKDUHVHQ
(b) Diluted
The diluted earnings per share is the same as basic earnings per share as the Company does not have
DQ\GLOXWLYHSRWHQWLDORUGLQDU\VKDUHV
96

15. Property, plant and equipment
Furniture,
¿WWLQJVDQG &DSLWDO
/DQGDQG 3ODQWDQG 0RWRU RI¿FH ZRUNLQ
Group buildings Renovation machinery vehicles equipment progress Total
RM RM RM RM RM RM RM
Cost
$W$SULO

$GGLWLRQV
'LVSRVDOV
:ULWWHQRII
5HFODVVL¿FDWLRQV
Transfer from other
FXUUHQWDVVHWV
At 31 March 2018
and 1 April 2018
$GGLWLRQV
'LVSRVDOV
5HFODVVL¿FDWLRQV
from Investment
3URSHUWLHV
5HFODVVL¿FDWLRQV
Transfer from other
FXUUHQWDVVHWV
At 31 March 2019
Accumulated
depreciation
At 1 April 2017

Depreciation
charge for the
\HDU1RWH
'LVSRVDOV
:ULWWHQRII
At 31 March 2018
and 1 April 2018
Depreciation
charge for the
\HDU1RWH
'LVSRVDOV
5HFODVVL¿FDWLRQV
from Investment
3URSHUWLHV
At 31 March 2019
Net carrying amount
At 31 March 2018
At 31 March 2019
97

15. Property, plant and equipment (continued)
* Land and buildings
Freehold Leasehold
Group land land Buildings Total
RM RM RM RM
Cost
At 1 April 2017

$GGLWLRQV
5HFODVVL¿FDWLRQV
At 31 March 2018 and 1 April 2018

$GGLWLRQV
5HFODVVL¿FDWLRQV
5HFODVVL¿FDWLRQVIURPLQYHVWPHQWSURSHUWLHV
At 31 March 2019
Accumulated depreciation
At 1 April 2017

'HSUHFLDWLRQFKDUJHIRUWKH\HDU
At 31 March 2018 and 1 April 2018

'HSUHFLDWLRQFKDUJHIRUWKH\HDU
5HFODVVL¿FDWLRQV
5HFODVVL¿FDWLRQVIURPLQYHVWPHQWSURSHUWLHV
At 31 March 2019
Net carrying amount
At 31 March 2018
At 31 March 2019
7KH OHDVHKROG ODQG DQG EXLOGLQJV DQG FHUWDLQ SODQW DQG PDFKLQHU\ ZLWK DJJUHJDWH FDUU\LQJ DPRXQW RI 50
50DUHSOHGJHGDVVHFXULW\IRUEDQNERUURZLQJVDVGLVFORVHGLQ1RWH
98

16. Investment properties
Group
2019 2018
RM RM
Cost:
$W$SULO
7UDQVIHUIURPLQYHVWPHQWSURSHUWLHVXQGHUFRQVWUXFWLRQ1RWH
7UDQVIHUIURPLQYHQWRULHV1RWH
7UDQVIHUWRSURSHUW\SODQWDQGHTXLSPHQW
$W0DUFK
Accumulated depreciation:
$W$SULO
'HSUHFLDWLRQFKDUJHIRUWKH\HDU1RWH
7UDQVIHUWRSURSHUW\SODQWDQGHTXLSPHQW
$W0DUFK
Net carrying amount
)DLUYDOXH
$VDW0DUFKWKH*URXS¶VLQYHVWPHQWSURSHUWLHVFRQVLVWRIFRPPHUFLDOSURSHUWLHVLQ0HODND$VDW

0DUFKDQGWKHIDLUYDOXHVRIWKHSURSHUWLHVDUHEDVHGRQYDOXDWLRQVSHUIRUPHGE\DQDFFUHGLWHG
LQGHSHQGHQWYDOXHU
7KHIDLUYDOXHRIWKHLQYHVWPHQWSURSHUWLHVZDVGHWHUPLQHGEDVHGRQ/HYHOYDOXDWLRQWHFKQLTXHVRIWKHIDLU
YDOXHKLHUDUFK\
The fair value is estimated by the directors of the Company based on a valuation conducted by independent
SURIHVVLRQDOYDOXHUVLQSULRU\HDUVXVLQJWKHFRPSDULVRQPHWKRG7KHFRPSDULVRQPHWKRGLQYROYHVFRPSDULQJ
DQGDGRSWLQJUHFHQWWUDQVDFWLRQVDVD\DUGVWLFNDVZHOODVXVLQJVDOHVHYLGHQFHLQYROYLQJRWKHUVLPLODUSURSHUWLHV
LQWKHYLFLQLW\7KH*URXSKDVDVVHVVHGWKDWWKHKLJKHVWDQGEHVWXVHRILWVSURSHUWLHVGRHVQRWGLIIHUIURPWKHLU
FXUUHQWXVH
6LJQL¿FDQWXQREVHUYDEOHYDOXDWLRQLQSXW
Range
2019 2018
RM RM
3ULFHSHUVTXDUHIRRW
99

17. Investment in subsidiaries
Company
2019 2018
RM RM
8QTXRWHGVKDUHVLQ0DOD\VLDDWFRVW
'HWDLOVRIWKHVXEVLGLDULHVDOORIZKLFKDUHLQFRUSRUDWHGLQ0DOD\VLDDUHDVIROORZV
Proportion (%) of
Name of subsidiaries Principal activities ownership interest
2019 2018
2ULHQWDO)RRG,QGXVWULHV 0DQXIDFWXULQJDQGPDUNHWLQJRI

6GQ%KG VQDFNIRRGDQGFRQIHFWLRQHULHV
2),3URSHUWLHV6GQ%KG 3URSHUW\GHYHORSPHQW
+HOGWKURXJK2ULHQWDO)RRG,QGXVWULHV6GQ%KG
2ULHQWDO)RRG0DUNHWLQJ0 6DOHVDQGPDUNHWLQJRIVQDFNIRRG

6GQ%KG DQGFRQIHFWLRQHULHV
18. Investment securities
Group
2019 2018
RM RM
$W$SULODWFRVW

(IIHFWRIDGRSWLRQRIQHZDFFRXQWLQJVWDQGDUGV
$VDW$SULOUHVWDWHGDW)92&,

)DLUYDOXHFKDQJHV
$W0DUFKDW)92&,
The investment in unquoted equity instruments represents ordinary shares that are not quoted on any active
PDUNHWDQGLVVWDWHGDWIDLUYDOXHH[FHSWIRUWKHSUHYLRXV\HDUZKLFKLVDWFRVW
19. Land held for property development
Group
2019 2018
Cost: RM RM
$W$SULO0DUFK
100

20. Investment properties under construction
Group
2019 2018
RM RM
$W$SULO

$GGLWLRQVGXULQJWKH\HDU
7UDQVIHUWRLQYHVWPHQWSURSHUW\1RWH
$W0DUFK
)DLUYDOXH
7KH IDLU YDOXH RI WKH LQYHVWPHQW SURSHUWLHV XQGHU FRQVWUXFWLRQ ZDV GHWHUPLQHG EDVHG RQ /HYHO YDOXDWLRQ
WHFKQLTXHVRIWKHIDLUYDOXHKLHUDUFK\
21. Inventories
Group
2019 2018
RM RM
Cost
5DZPDWHULDOV

:RUNLQSURJUHVV
)LQLVKHGJRRGV
&RPSOHWHGSURSHUWLHV

$W$SULO

7UDQVIHUWRLQYHVWPHQWSURSHUW\1RWH
$W0DUFK
'XULQJWKH¿QDQFLDO\HDUWKHDPRXQWRILQYHQWRULHVUHFRJQLVHGDVDQH[SHQVHLQFRVWRIVDOHVRIWKH*URXSZDV
5050
101

22. Trade and other receivables
Group Company
2019 2018 2019 2018
RM RM RM RM
Trade receivables
7KLUGSDUWLHV
/HVV$OORZDQFHIRULPSDLUPHQW
7UDGHUHFHLYDEOHVQHW
Other receivables
7KLUGSDUWLHV
5HIXQGDEOHGHSRVLWV
6WDIIORDQV

7RWDOWUDGHDQGRWKHUUHFHLYDEOHV

$GG&DVKDQGEDQNEDODQFHV1RWH
7RWDO¿QDQFLDODVVHWVFDUULHGDWDPRUWLVHGFRVW
(a) Trade receivables
7UDGHUHFHLYDEOHVDUHQRQLQWHUHVWEHDULQJDQGDUHJHQHUDOO\RQWRGD\VWRGD\V
WHUP 7KH\ DUH UHFRJQLVHG DW WKHLU RULJLQDO LQYRLFH DPRXQWV ZKLFK UHSUHVHQW WKHLU IDLU YDOXHV RQ LQLWLDO
UHFRJQLWLRQ
$JHLQJDQDO\VLVRIWUDGHUHFHLYDEOHV
7KHDJHLQJDQDO\VLVRIWKH*URXS¶VWUDGHUHFHLYDEOHVLVDVIROORZV
Group
2019 2018
RM RM
1HLWKHUSDVWGXHQRULPSDLUHG
WRGD\VSDVWGXHQRWLPSDLUHG

WRGD\VSDVWGXHQRWLPSDLUHG
0RUHWKDQGD\VSDVWGXHQRWLPSDLUHG

,PSDLUHG

5HFHLYDEOHVWKDWDUHQHLWKHUSDVWGXHQRULPSDLUHG
7UDGH DQG RWKHU UHFHLYDEOHV WKDW DUH QHLWKHU SDVW GXH QRU LPSDLUHG DUH FUHGLWZRUWK\ GHEWRUV ZLWK JRRG
SD\PHQWUHFRUGVZLWKWKH*URXS
1RQHRIWKHVHEDODQFHVKDYHEHHQUHQHJRWLDWHGGXULQJWKH¿QDQFLDO\HDU
102

22. Trade and other receivables (continued)
(a) Trade receivables (continued)
5HFHLYDEOHVWKDWDUHSDVWGXHEXWQRWLPSDLUHG
7KH *URXS KDV WUDGH UHFHLYDEOHV DPRXQWLQJ WR 50 50 WKDW DUH SDVW GXH
DW WKH UHSRUWLQJ GDWH EXW QRW LPSDLUHG 7KHVH UHFHLYDEOHV DUH DFWLYH DFFRXQWV ZKLFK WKH PDQDJHPHQW
FRQVLGHUVWREHUHFRYHUDEOH
5HFHLYDEOHVWKDWDUHLPSDLUHG
7KH*URXS¶VPRYHPHQWRIWKHDOORZDQFHDFFRXQWVXVHGWRUHFRUGWKHLPSDLUPHQWDUHDVIROORZV
Group
2019 2018
RM RM
7UDGHUHFHLYDEOHVQRPLQDODPRXQWV

/HVV$OORZDQFHIRULPSDLUPHQW

0RYHPHQWLQDOORZDQFHDFFRXQWV
$W$SULO
$W$SULOUHVWDWHG

&KDUJHIRUWKH\HDU1RWH
5HYHUVDORIDOORZDQFHIRULPSDLUPHQW1RWH
$W0DUFK
23. Other current assets
Group Company
2019 2018 2019 2018
RM RM RM RM
$GYDQFHVWRVXSSOLHUVRISURSHUW\SODQW
DQGHTXLSPHQW
3UHSD\PHQWV
'HSRVLWSODFHGLQ%XUVD
0DOD\VLD6HFXULWLHV%HUKDG¶VGLYLGHQGDFFRXQW

103

24. Cash and bank balances
Group Company
2019 2018 2019 2018
RM RM RM RM
&DVKDWEDQNVDQGRQKDQG

6KRUWWHUPGHSRVLWVZLWKOLFHQVHGEDQNV
,QYHVWPHQWVLQPRQH\PDUNHWIXQGV
&DVKDQGEDQNEDODQFHV1RWH
)RU WKH SXUSRVH RI WKH VWDWHPHQWV RI FDVK ÀRZV FDVK DQG FDVK HTXLYDOHQWV FRPSULVH WKH IROORZLQJ DW WKH
UHSRUWLQJGDWH
Group Company
2019 2018 2019 2018
RM RM RM RM
&DVKDQGEDQNEDODQFHV

/HVV
%DQNRYHUGUDIWV1RWH
,QYHVWPHQWVLQPRQH\PDUNHWIXQGV
&DVKDQGFDVKHTXLYDOHQWV
7KHZHLJKWHGDYHUDJHHIIHFWLYHLQWHUHVWUDWHDQGWKHDYHUDJHPDWXULW\RIGHSRVLWVZLWKDOLFHQVHGEDQNDVDW
UHSRUWLQJGDWHZHUHSHUDQQXPDQGGD\VGD\VUHVSHFWLYHO\
7KHZHLJKWHGDYHUDJHHIIHFWLYHLQWHUHVWUDWHRILQYHVWPHQWLQPRQH\PDUNHWIXQGRIWKH*URXSDWWKHUHSRUWLQJ
GDWHZDVSHUDQQXP
25. Loans and borrowings
Group
2019 2018
Maturity RM RM
Current
%DQNRYHUGUDIWV1RWH 2QGHPDQG

%DQNHU¶VDFFHSWDQFH 2QGHPDQG
%DQNORDQV
50ORDQDW%)5SDVHFXUHGA
50ORDQDW./,%25SDVHFXUHG

104

25. Loans and borrowings (continued)

Group
2019 2018
Maturity RM RM
Non-current
%DQNORDQV
50ORDQDW./,%25VHFXUHG

7RWDOORDQVDQGERUURZLQJV1RWH
A %)5%DVH¿QDQFLQJUDWHSHUDQQXP
./,%25.XDOD/XPSXU,QWHUEDQN2IIHUHG5DWHSHUDQQXP
7KHUHPDLQLQJPDWXULWLHVRIWKHORDQVDQGERUURZLQJVDVDWUHSRUWLQJGDWHDUHDVIROORZV
Group
2019 2018
RM RM
2QGHPDQGRUZLWKLQRQH\HDU

0RUHWKDQ\HDUDQGOHVVWKDQ\HDUV
0RUHWKDQ\HDUVEXWOHVVWKDQ\HDUV

%DQNORDQV
7KHVHEDQNORDQVRIWKH*URXSDUHVHFXUHGE\ZD\RIDFRUSRUDWHJXDUDQWHHIURPWKH&RPSDQ\DQGDFKDUJH
RYHUOHDVHKROGODQGDQGIDFWRU\EXLOGLQJVDQGFHUWDLQSODQWDQGPDFKLQHU\DVGLVFORVHGLQ1RWH
26. Trade and other payables

Group Company
2019 2018 2019 2018
RM RM RM RM
Trade payables
7KLUGSDUWLHV
Other payables
7KLUGSDUWLHV
$FFUXHGRSHUDWLQJH[SHQVHV
'HSRVLWUHFHLYHG
'LYLGHQGSD\DEOH

7RWDOWUDGHDQGRWKHUSD\DEOHV

$GG/RDQVDQGERUURZLQJV1RWH
7RWDO¿QDQFLDOOLDELOLWLHVFDUULHGDWDPRUWLVHGFRVW
105

26. Trade and other payables (continued)
(a) Trade payables
7KHVHDPRXQWVDUHQRQLQWHUHVWEHDULQJ7UDGHSD\DEOHVDUHQRUPDOO\VHWWOHGRQDYHUDJHGD\V
GD\VWHUP
(b) Other payables
7KHVHDPRXQWVDUHQRQLQWHUHVWEHDULQJ2WKHUSD\DEOHVDUHQRUPDOO\VHWWOHGRQDYHUDJHGD\V
GD\VWHUP
27. Contract liabilities
Group
2019 2018
RM RM
6KRUWWHUPDGYDQFHVIRUVDOHVRIJRRGV
28. Deferred tax liabilities
'HIHUUHGLQFRPHWD[DVDWUHSRUWLQJGDWHUHODWHVWRWKHIROORZLQJ
Deferred tax
liabilities Deferred tax assets
Property, Unabsorbed Unabsorbed

plant and reinvestment capital
equipment allowances allowances Others Total
Group RM RM RM RM RM
At 1 April 2017

5HFRJQLVHGLQSUR¿WRUORVV
1RWH
At 31 March 2018 and

1 April 2018
(IIHFWRIDGRSWLRQRIQHZ
DFFRXQWLQJVWDQGDUGV
$SULOUHVWDWHG

5HFRJQLVHGLQSUR¿WRUORVV
1RWH
At 31 March 2019
106

29. Share capital and reserve
(a) Share Capital
Group and Company

Number of ordinary shares Amount
2019 2018 2019 2018
RM RM
,VVXHGDQGIXOO\SDLG
7KHKROGHUVRIRUGLQDU\VKDUHVDUHHQWLWOHGWRUHFHLYHGLYLGHQGVDVDQGZKHQGHFODUHGE\WKH&RPSDQ\$OO
RUGLQDU\VKDUHVFDUU\RQHYRWHSHUVKDUHZLWKRXWUHVWULFWLRQVDQGUDQNHTXDOO\ZLWKUHJDUGWRWKH&RPSDQ\
UHVLGXDODVVHWV
Implementation of Companies Act 2016
:LWKHIIHFWIURP-DQXDU\DOOHQWLWLHVVKDOOFRPSO\ZLWKWKH&RPSDQLHV$FW³&$´LQWKH

SUHSDUDWLRQRI¿QDQFLDOVWDWHPHQWVIRUWKH¿QDQFLDO\HDUHQGLQJRQRUDIWHU-DQXDU\
6HFWLRQ RI &$ VWDWHV WKDW DOO VKDUHV LVVXHG EHIRUH RU DIWHU -DQXDU\ VKDOO KDYH QR SDU
RU QRPLQDO YDOXH &$ SURYLGHV FHUWDLQ WUDQVLWLRQDO SURYLVLRQV UHODWLQJ WR WKH DEROLWLRQ RI QRPLQDO
YDOXH
E )DLUYDOXHUHVHUYHRI¿QDQFLDODVVHWVDW)92&,
)DLUYDOXHUHVHUYHRI¿QDQFLDODVVHWDW)92&,DURVHIURPUHPHDVXUHPHQWRIIDLUYDOXHRI¿QDQFLDODVVHWDW
)92&,DWWKHUHSRUWLQJGDWH
Group
2019 2018
RM RM
$W$SULO

$W$SULOUHVWDWHG

Net loss on equity investment designated at fair value through other
FRPSUHKHQVLYHLQFRPH
$W0DUFK
30. Retained earnings
7KHHQWLUHUHWDLQHGHDUQLQJVRIWKH&RPSDQ\DVDW0DUFKPD\EHGLVWULEXWHGDVGLYLGHQGVXQGHUWKH
VLQJOHWLHUV\VWHP
107

31. Related party transactions
(a) Sale and purchase of goods and services
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2019 2018
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Revenues
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37. Dividends
Group and Company

2019 2018
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117
ANALYSIS OF SHAREHOLDINGS
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Distribution of Shareholders
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Thirty Largest Shareholders as per Record of Depositors as at 28 June 2019
Total No. of
No. Name of Shareholders Shares Held %
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Thirty Largest Shareholders as per Record of Depositors as at 28 June 2019 (continued)
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LIST OF PROPERTIES
No. Description, Existing Use, Location Land Area Tenure Date of Net Book
Age of Building and Built Up Square Acquisition Value as at
Area Metres) 31.03.2019
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121
LIST OF PROPERTIES
No. Description, Existing Use, Location Land Area Tenure Date of Net Book
Age of Building and Built Up Square Acquisition Value as at
Area Metres) 31.03.2019
(RM)
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122
OTHER INFORMATION
1. Share Buyback
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2. Audit and Non-Audit Fees
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4. Recurrent Related Parties Transactions
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123
7KLVSDJHLVLQWHQWLRQDOO\OHIWEODQN
ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD
FORM OF PROXY (Company No : 389769-M)
(Incorporated in Malaysia)
No. of ordinary shares held
CDS Account No.
I/We
(Full Name in Capital Letters)
of
(Full address)
being a Member/Members of ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD hereby appoint * the Chairman of the meeting or

of
(Full address)
or failing him/her of
of
(Full address)
as * my/our proxy/proxies to attend and vote for *me/us and on *my/our behalf at the 23rd Annual General Meeting of the Company, to be
held at Tiara Banquet Hall, Tiara Melaka Golf and Country Club, Jalan Gapam, Bukit Katil, 75760 Melaka on Wednesday, 28 August 2019
at 2.30 p.m. and at every adjournment thereof to vote as indicated below:
No. Ordinary Business For Against
1. To approve the payment of Directors’ fees amounting to RM350,000.00 for the financial Resolution 1
year ended 31 March 2019
2. To approve the proposed payment of Directors’ remuneration and benefits (excluding Resolution 2
Directors’ fees) up to an amount of RM135,000.00 to the Directors with effect from 29
August 2019 until the next Annual General Meeting
3. To re-elect the following Directors, each of whom retires by rotation in accordance with
Article 75 of the Constitution of the Company:-
3.1 Tan Sri Dato’ Azizan Bin Husain Resolution 3
3.2 Mr Lim Hwa Yu Resolution 4
4. To re-appoint Messrs. Ernst & Young as Auditors of the Company for the financial year Resolution 5
ending 31 March 2020 and to authorise the Directors to determine their remuneration.
As Special Business
5. To approve the continuation in office of Tan Sri Dato’ Azizan Bin Husain as an Independent Resolution 6
Non-Executive Director of the Company.
6. To approve the continuation in office of Datuk Jeffery Ong Cheng Lock as an Independent Resolution 7
Non-Executive Director of the Company.
7. To approve the continuation in office of Mr. Lim Hwa Yu as an Independent Non-Executive Resolution 8
Director of the Company.
8. To authorise the Directors to issue shares pursuant to Sections 75 and 76 of the Resolution 9
Companies Act, 2016.
9. To approve the Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Resolution 10
Transactions of a Revenue or Trading Nature.
10. To approve the Proposed Renewal of Share Buy-Back Authority Resolution 11
(Please indicate with an “X” in the space provided above on how you wish your vote to be cast. If you do not do so, the proxy will vote or
abstain from voting at this discretion.)
The proportion of my holdings to be represented by my *proxy/proxies are as follows:-
First name Proxy %
Second name Proxy %
100%
In case of a vote taken by a show of hands, the First Proxy shall vote on *my/our behalf. *Strike out whichever is not desired.
As witness my hand day of 2019.

Signature
Notes:
1. In regard of deposited securities, only members whose names appear in the Record of Depositors as at 20 August 2019 (“General Meeting Record of Depositors”) shall be eligible to attend
and vote at the Meeting.
2. A member entitled to attend and vote at the above meeting is entitled to appoint a proxy to attend and vote in his/her stead. A proxy need not be a member of the Company. There shall be
no restriction as to the qualifications of the proxy.
3. A member may appoint more than two (2) proxies to attend at the same meeting. Where a member appoints two (2) or more proxies, the proxies shall not be valid unless the member specifies
the proportion of his shareholdings to be represented by each proxy.
4. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one securities account (“omnibus account”),
there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds.
5. The instrument appointing a proxy in the case of an individual shall be signed by the appointor or his attorney and in the case of a corporation, the instrument appointing a proxy or proxies
must be under seal or under the hand of an officer or attorney duly authorised.
6. The instrument appointing proxy shall be deemed to confer authority to demand or join in demanding a poll.
7. The instrument appointing a proxy must be deposited at the Registered Office at Level 8, Symphony House, Block D13, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya,
Selangor Darul Ehsan not less than twenty-four (24) hours before the time appointed for holding the meeting or any adjournment thereof as Paragraph 8.29(A) of the Main Market Listing
Requirements of Bursa Malaysia Securities Berhad requires all resolutions set out in the Notice of General Meeting to be put to vote by poll.
8. Proxy appointed to attend and vote at a meeting of the Company shall have the same rights as the member to speak at the meeting.
9. Personal Data Privacy:
By submitting an instrument appointing a proxy(ies) and/or representative(s), the members accepts and agrees to the Personal Data Privacy terms set out in the Notice of AGM dated 31 July 2019.
Fold Here
Fold Here
stamp
THE COMPANY SECRETARY
ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD

(Company No : 389769-M)
Level 8 Symphony House
Block D13 Pusat Dagangan Dana 1
Jalan PJU1A/46
47301 Petaling Jaya
Malaysia
Fold Here

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ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD 389769-M I ANNUAL REPORT 2019

NOTICE OF ANNUAL GENERAL MEETING

4.1 Tan Sri Dato’ Azizan Bin Husain (Resolution 3)

NOTICE OF ANNUAL GENERAL MEETING

10. 3URSRVHG5HQHZDORI6KDUHKROGHUV¶0DQGDWHIRU5HFXUUHQW5HODWHG3DUW\7UDQVDFWLRQV (Resolution 10)

iii. revoked or varied by a Resolution passed by the shareholders of the Company at a

NOTICE OF ANNUAL GENERAL MEETING

11. 3URSRVHG5HQHZDORI6KDUH%X\%DFN$XWKRULW\IRUWKH3XUFKDVHE\WKH&RPSDQ\RI (Resolution 11)

L WKHDJJUHJDWHQXPEHURIVKDUHVSXUFKDVHGGRHVQRWH[FHHGWHQSHUFHQW  RIWKH

c. revoked or varied by ordinary resolution passed by the shareholders of the Company

NOTICE OF ANNUAL GENERAL MEETING

BY ORDER OF THE BOARD

 $PHPEHUPD\DSSRLQWPRUHWKDQWZR  SUR[LHVWRDWWHQGDWWKHVDPHPHHWLQJ:KHUHDPHPEHUDSSRLQWVWZR  RUPRUH

NOTICE OF ANNUAL GENERAL MEETING

EXPLANATORY NOTES ON SPECIAL BUSINESS:

 5HVROXWLRQ'LUHFWRUV¶UHPXQHUDWLRQDQGEHQH¿WV H[FOXGLQJ'LUHFWRUV¶IHHV

0RQWKO\)L[HG$OORZDQFH 50SHUPRQWK 1RW$SSOLFDEOH 1RW$SSOLFDEOH

Monthly Claims RM27,720.00 per annum Not Applicable Not Applicable

NOTICE OF ANNUAL GENERAL MEETING

STATEMENT ACCOMPANYING NOTICE OF

1. Resolution 3 and 4- Re-election of Directors

(a) Tan Sri Dato’ Azizan Bin Husain

The Group achieved another milestone in terms of ,QOLQHZLWKWKHFRPPHQGDEOH¿QDQFLDOSHUIRUPDQFHRIWKH

In terms of our balance sheet, total loans and borrowings

At OFIH we believe that one of the key drivers is the &RUSRUDWH*RYHUQDQFH

On the regional front, the Group plans to appoint $FNQRZOHGJHPHQW

The Group recognizes that it needs to give back to the

1$0(2)0$-2568%6,',$5,(6 (48,7<,17(5(67  35,1&,3$/$&7,9,7,(6

2),3URSHUWLHV6GQ%KG ³2),3´ 99.99 Property Development.

100% 100% 99.9%

OFI OFM OFIP

Subsidiary of Oriental Food Industries Sdn. Bhd.

Tan Sri Dato’ Azizan bin Husain (Chairman) ,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRU

-2,17&203$1<6(&5(7$5,(6 CORPORATE HEAD OFFICE

SHARE REGISTRAR STOCK EXCHANGE LISTING

GROUP FINANCIAL HIGHLIGHTS

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5HYHQXH     

Other operating income 2.91 6.28 4.83 1.10 3.91

Finance cost (0.18) (0.44) (0.54) (0.88) (1.06)

7D[     

Non-controlling Interest - 0.02 (0.01) - -

1HWGLYLGHQGSHUVKDUH VHQ 9.50 12.50 4.00 3.50 1.50

'HSUHFLDWLRQ $PRUWLVDWLRQ 7.63 9.01 9.32 9.94 11.96

REVENUE (RM’mil) PROFIT BEFORE TAXATION (RM’mil)

NET COMPREHENSIVE INCOME (RM’mil)

PROFILE OF THE BOARD OF DIRECTORS

Tan Sri Azizan is currently the Chairman of other private companies.

PROFILE OF THE BOARD OF DIRECTORS

PROFILE OF THE BOARD OF DIRECTORS

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PROFILE OF KEY SENIOR MANAGEMENT

MANAGEMENT DISCUSSION AND ANALYSIS

FINANCIAL RESULTS AND FINANCIAL CONDITION

  <2<

Revenue 286,548 288,310 (1,762) (0.6)

Debt/ Equity (%) 19.7 22.9

Revenue information based on the geographical location of customers is as follows:

Malaysia 101,617 35 106,698 37

Total reported segments 286,548 100 288,310 100

MANAGEMENT DISCUSSION AND ANALYSIS

CORPORATE GOVERNANCE PRACTICES

– Whistle Blowing Procedures

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