‘Company No.: 000222-D 4, REVENUE Group Company 2015 2014 2015 2014 RM RM RM RM Sales of crude palm oil 22,734,112 27,356,378 : Z Sales of palm kernel 4,042,117 4,857,494 - 2 Sales of other oil palm products 709,638 413,418 < : 27,485,867__ 32,627,290 5. COST OF SALES Group 2015 2014 RM RM Mill operations 2,596,610 2,912,436 Plantation operations 26,113,095 24,857,797. 6. LOSS BEFORE TAX Loss before tax is arrived at after charging/(crediting):- Group Company 2015 2014 2015 2014 RM RM RM RM ‘Auditors’ remuneration ~ Statutory audit ~ current financial year 142,000 109,000 50,000 45,000 ~ (over)/under provision in prior financial year - (582) (10,000) 6,000 - Other services 8,000 6,000 8,000 6,000 Amortisation of biological assets 4,711,438 4,608,421 : . Depreciation of property, plant and equipment 13,249,610 13,188,855 - 1,665 Employee benefits expense (including key management personnel) ~ Contribution to defined contribution plan 655,616 557,538, 5,891 78,912 ~ Salaries, allowance and bonus 9,934,512 8,780,099 45,966 682,736 ~ Other employee benefits 1,176,754 1,140,601 115,829 116,699 - Provision for defined benefit obligation 161,476 443,482 : i 2‘Company No.: 000222-D 6. LOSS BEFORE TAX (con'’d) Loss before tax is arrived at after charging/(crediting)- (cont'd) Interest expenses ~ Finance lease interest = Term loan interest Penalty Rental expense (Gain)/Loss on foreign exchange - realised ~ unrealised Reversal of impairment loss on other receivables ‘Sundry income from sale of timber Tnsurance claims Tinterest income Rental income Group 2015 RM 20,915 4,845,717 782,176 192,348 (4,326) (5,647,540) (9,656) 2,200) 2014 32,343 4,821,600 1,648,049 334,554 110,519 18,993,813 (123,743) 1,169,108) (43,710) (12,237) 4,200) Company 2015 2014 RM DIRECTORS’ REMUNERATION Included in employee benefits expense of the Group are directors’ remuneration amounting to as follows:- Group Company 2015 2014 2015 2014 RM RM RM RM Directors of the Company Executive Directors ~ Salaries and other ‘emoluments, 1,568,000 1,518,000 27,000 378,000 - Defined contribution plans 188,160 175,680 3,240 38,880 - Other benefits 136,864 136,864 36,864 36,864 1,893,024 1,830,544 67,104 453,744 ‘Non-Executive Directors - Fees 78,000 78,000 78,000 78,000 ~ Allowances 37,000 36,150 37,000 36,150 115,000 114,150 115,000 114,150 Balance brought down 2,008,024 __1,944,694 182,104 __567,894 3‘Company No.: 000222-D 7, DIRECTORS’ REMUNERATION (cont'd) Included in employee benefits expense of the Group are directors” remuneration amounting to as follows:- (cont'd) Group ‘Company 2015 2014 2015 2014 RM RM RM RM Balance carried down 2,008,024 1,944,694 182,104 567,894 Director of a subsidiary Non-Executive Director - Fees 36,000] 36,000 36,000, 36,000 Total 2,044,024 __1,980,694 8 INCOME TAX (CREDIT)/EXPENSE Group Company 2015 2014 2015 2014 RM RM RM RM Current tax: Malaysian income tax: ‘Current financial year 2,692,096 3,899,852 . - ‘Under/(Over) provision in prior financial year 353,067 __(2,682,617) : 07,051) 3,045,163 ‘1,217,235 - 17,051) Deferred tax (Note 21): Origination and reversal of temporary differences 6,341,668)| | 261,353) : : Under provision in prior financial year 2.917 663,005 = : 3,338,751) __ (2,598,348) : : Income tax credit recognised in profit or loss (293,588) __(1,381,113) : 07,051) Group 2015 2014 RM RM Income tax recognised directly in equity - reversal of deferred tax liabilities upon reduction in tax rate = 2,426,792) 4‘Company No.: 000222-D %. INCOME TAX (CREDIT)/EXPENSE (cont'd) The reconciliations of the tax amount at statutory income tax rate to the Group's and the Company's tax expense are as follows:~ Group Company 2015 2014 2015 2014 RM RM RM RM Loss before tax (13,253,824) _(1,712,632) _ (369,114) _(1,195,268) ‘Tax at the Malaysian statutory income tax rate of 25% (3,313,515) (7,928,200) (92,300) (298,800) Tax effect on non-deductible expenses 2,524,626 8,569,255 92,300 298,900 Tax effect on non-taxable income - (2,556) - (100) Deferred tax recognised at different tax rate 139,317 - - - Under/(Over) provision in prior financial year + current tax: 353,067 (2,682,617) - 17,051) - deferred tax 2,917 663,005, - Income tax credit recognised in profit or loss (293,588) __ (1,381,113) Domestic income tax is calculated at the Malaysian statutory income tax rate of 25% (2014: 25%) of the estimated assessable profit forthe financial year. The domestic corporate tax rate would be reduced to 24% from the current financial year’s rate of 25% effective from year of assessment 2016. The computation of deferred tax as at 30 June 2015 has reflected these changes. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. LOSS PER SHARE Basic loss per share amount is calculated by dividing loss for the financial year, net of tax, attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the financial year Group 2015 2014 Loss net of tax attributable to owners of the Company (RM) (10,621,968) (26,365,020) Weighted average number of ordinary shares 149,804,135 149,804,135 Basic loss per share (sen) (7.09) (17.60) ‘The Group has no potential ordinary shares in issue as at reporting date and therefore diluted loss per share is equivalent to basic loss per share, 4sTEBLTR CITIES vSPRCLS —GGDOSTE -EOLTSBII GLESILS vOwTIOSSC —~ oR TIOSSE = = weRTICSs. openpen ye - LOcoss'ic LOT'S. wsH'BeL'S—Gep'NST'C © ewLzORIT §—6LzONU'S - : 3800 je - Sunuasoidoy TLOSILLSC cIOZIES ——PSPBCLS CLT OLS stozeune o€3V TaScOr a VET SST TOR LP = seouarmyip funyaxg osisret 89 669567 : - suoHppy escoco'sse _cor'zoee __ais'eus's esgtzr's _vos‘iie'ssz__- lOc Aine 1/etoz aunt OF 3V GET LEE) Ca99"E9S) (BLE PEE) Coorzely 4 at seotiouayip eBueyoxy (ss6's) - - - : = stuouitedaid 0} sysurery, (orev) - Ioe'vst (caviar) - : - sasse eo1foj019 woyy uopreaytsse|ony 629708 996'%ss : cae" ovs‘or : SuonIppY Lov'zes'ssz —sustOLE'E © PSZIG'S ——GHFOSI'E —«LOU'OML'IL_—EEE'FIS'S «= pOBTLIBSSZ™ s1oz Ain 13v woprenqeansoo, wa wi wa We we Wu We wa dno Tee, spug, sopmyaa srasse Arunpem — sBuypyng pu pury Due peoy 3030 HMO we — PUEIUELA ye IS Proyaseay —proysaag ANAINAINOT UNV LNVId ‘ALYGOUd “OF G-222000 ON Auredwoy,06061099 O9L8SBT erevECS 198 668°C GOCLISOT oy SSOLSSY isereeoy slo sunr ogy OF 6St OEE vectal SOC Ee BaeTE ET = = soouanayp ou o1s‘srzer 690898 vsciere o1r'e8 ess'sis seo'szt - a epoueUY 9M 203 981e4) ogororses —8z0°S16 HsH'999' —SCLBLT—pNSLT‘OL IS ‘OML'y : 1oz Aine 1yytoz sune o¢ av TESTS) CORT SB) S9e66)___ OTL CIcwy Teeny > = soouaseyp away (96s) - - - (96s) - - - swuuatedand on Joysteay, (orev) LOL'yT (eso*p) (err) - ca siasse eorfoporq woy voneoyisseyaay sse'sgtel —_ego‘oco cer‘90t ensues Loe - af [poUTUY OU) JO} 9804) HS8'EOG'GE —STO'OLE eW'LSL'Z ORETEL'G SS SHETLLO'Y - BHO BEE = BaOEL ~ 7 i : gos'rooes — Szo'OLE Uurescy —seaTeIs'Z—geceeL'6 = sheteLaty = woetIeLT sassoy pusmaredany pue woperpaadap payeymmnaay Wa wat wa we wie wu wt Wwe duos, TOL spng soporyoa, syasse Azomysew —sumpynq pu puet ue peoy 407041 HO vee PURMIPT ay EIST Proypsr] —ploysoay (p.vos) LNAWAINOT (NV INV Id ‘ALUAAOUd “OT G-22Z000 “ON Aueduiog,‘09. 858 o9e'gse'l 198 CORT BR BEC 618'099'% SSELERY sso'Lss'y BEOSIG TSCLBLT IS OLY 820'816 wa sepa poe peont BGREC voz'ahs'c syasse 200 wa eIs‘ord'y we suypqnq ares s2eso] yuowsreduty poreynuunooe ~ uoneroasdep poyemnuunooe = srozaung ogy sesso] juowureduat poyejnumaoe ~ wersaadap poye]NUINODE - prozeunr og 3v. ise poskyeuy sasso] juauapeduny pus uonererdap paremumaoy dnor5, (pauoo) INAWAINOT UNV LNVId ‘ALUTAONd C-Z2Z000 "ON Auedwodor TRO BL Ice CSTESVE— CISLOP TER'9ST PSSSLOT ERLE LosLassic OSTaSSTc = 5 - LOSTRS SIC uonenyea 22 - vLvI9I'9 = aSCESH'E | ZIS‘LOP ces'9se Pss‘SLOTT ves's18 - 300 38 - stoz une og 3¥ escoiscec SLIVWVT —«RSE'906 665 VCE TECBOET orca TSLe6L 9cC TsLeeloce . = _ TSC ESL 9G vuoprenyea ve - sis’szv's —SLI'vb'c——ae‘906 66s‘vee zec's9et vor'z99 - : 480018 + loz sump 0 V yunowe Bupa 9N wa wa We wa wa we we wa noi rot soSpug sojonypa syasse. Arumpem — s8mpynq uty puey Pur poy = 20}0) BNO eee PULTE ve VEST Prouaseay §——_—proysaay (Pao) INAWdINOT ONY LNVId ‘ALYAdONd “OT G-ZZ7000 “ON Auedut0DCompany No.: 000222-D 10. PROPERTY, PLANT AND EQUIPMENT (cont'd) Office renovation and electrical ***Other Company installation assets Total RM RM RM Cost At I July 2013/2014 and 30 June 2014/2015 665,121 684,229 1,349,350 Accumulated depreciation and impairment losses At 1 July 2013/2014 and 30 June 2014/2015 665,121 684,229 1,349,350 ‘Analysed as: ~ Accumulated depreciation 665,121 445,241 1,110,362 ~ Accumulated impairment losses : 238,988 238,988 665,121 684,229 1,349,350 Net carrying amount ‘At 30 June 2015/2014 - : : @ Estate buildings consist of factory building, staff quarters and a freehold property. Plant and machinery consist of plant, machinery, clectrical installation and agricultural ‘equipment. Other assets consist of furniture, fittings, office equipment and computer equipment. Short term leasehold estate land ‘The short term leasehold estate land consists of planted areas under oil palm cultivation in ‘Mukim Changkat Jong, District of Hilir Perak, Malaysia. The remaining period of the lease of land is 17 and 20 years. The short term leaschold estate land has been pledged to the financial institutions for borrowings as disclosed in Note 20. Fair value of the leasehold land was determined by using market comparable method. This means that valuation performed by the valuer is based on active market prices, significantly adjusted for difference in the nature, location or condition of the leasehold land. As at the date of revaluation in 2013, the leaschold land?s fair values are based on valuations performed by lependent professional valuer, Azmi & Co. so‘Company No.: 000222-D 10. PROPERTY, PLANT AND EQUIPMENT (cont'd) @ () ©) ‘Short term Jeaschold estate land (cont'd) Significant unobservable valuation input: RM Price per acre 26,450 Significant increases/(decreases) in estimated price per acre in isolation would result in a significantly higher/(lower) fair value. Details of the Company’s leasehold land and information about the fair value hierarchy as at 30 June 2015 and 30 June 2014 are as follows: Level 1 Level 2 Level 3 Total RM RM RM RM 2015 Leasehold land - = _238,000,000_ _ 238,000,000 2014 Leasehold land 238,000,000 ‘There were no transfer between Level | and Level 2 during the financial year. ‘Assets held under finance leases The net carrying amounts of property, plant and equipment held under finance lease agreements at the reporting date were as follows:- Group 2018 2014 RM RM Plant and machinery 77,501 93,001 Motor vehicles 62,278 127,637 139,779 220,638 Included in the property, plant and equipment are motor vehicles with net carrying amount of RM3 (2014: RM34,224) held in trust by a director of the Company. 31Company No.: 000222-D 10, 1. PROPERTY, PLANT AND EQUIPMENT (cont'd) (@) Assets pledged as security The leasehold land, estate buildings and certain plant and machinery of the Group are pledged 1a security for borrowings of the Group as mentioned in Note 20 as follows:- Group 2015 2014 RM RM Leasehold land 215,587,507 226,793,751 Estate buildings 878,324 682,164 Plant and machinery 1,075,554 1,368,222 Motor vehicles 350,480 217,891,865 LAND USE RIGHTS 2015 2014 RM RM Group Cost At 1 July 2014/2013 17,407,940 18,319,222 Additions 2,957,427 ‘1,247,640 Exchange differences 705,979 _ (2,158,922) At30 June 21,071,346 __17,407,940 Accumulated amortisation At July 2014/2013 2,411,394 2,943,028 Charge for the financial year 251,322 98,164 Exchange differences 141,762 (629,798) ‘At30 June 2,804,478 __ 2,411,394 Net carrying amount At30 June 18,266,868 Land use rights (“LUR”) represent the short term leasehold land in the Republic of Indonesia acquired through the acquisition of Pinebill Ventures Limited and its subsidiaries. LLUR had been approved for the development of oil palm plantation and the approval was extended to the subsidiaries incorporated in the Republic of Indonesia, namely, PT. Makmur Jaya Malindo, PT. Inma Jaya Group, PT. Indomal Sawit Jaya, and PT. Inma Makmur Lestari (collectively referred to herein as the “Indonesian subsidiaries”) in the form of Izin Lokasi in 2005. With the Tzin Lokasi, the Indonesian subsidiaries are allowed to do land clearing and planting of oil palm. 2‘Company No.: 000222-D 12. LAND USE RIGHTS (cont'd) All Indonesian subsidiaries had obtained the Izin Usaha Perkebunan (“IUP*) in 2010 decla final width of lands that have been successfully acquired and completed with physical activiti the basis for the Indonesian subsidiaries to apply for the cadastral for the application of Sertfiket Hak Guna Usaha (“HGU*). the ‘The Indonesian subsidiaries are in the process of applying to Badan Pertanahan Nasional Indonesia for the HGU. It will be granted for a lease period up to 35 years with a renewable term up to 25 years which is as per the relevant laws and regulations made to HGU in the Republic of Indonesia. The land use rights of the Group are pledged as security for borrowis in Note 20. g8 of the Group as mentioned BIOLOGICAL ASSETS 2015 2014 RM RM Group Cost At | July 2014/2013 160,937,884 156,851,022 Additions 11,919,805 15,918,659 Reclassification to property, plant and equipment - (4,240) Exchange differences 70,680__(11,827,557) At 30 June 177,128,369_ 160,937,884 Accumulated amortisation and impairment losses At 1 July 2014/2013 42,529,950 38,126,523, Charge for the financial year 4,711,438 4,608,421 Reclassification to property, plant and equipment - (4,240) Exchange differences 37,143 (200,754) At30 June 47,278,531 _ 42,529,950 Analysed as: = accumulated amortisation 47,144,571 42,395,990 - accumulated impairment losses 133,960 133,960 Net carrying amount At30 June 33Company No.: 000222-D 12, 1B. BIOLOGICAL ASSETS (cont'd) @ (b) Biological assets represent plantation development expenditure and replanting expenditure which consist of expenses incurred in connection with the development of the oil palm plantation in the District of Hilir Perak, Malaysia and its Indonesian subsidiaries located at Kalimantan Barat in the Republic of Indonesia, Prior to year 2007, the PDE classified under property, plant and equipment was under the revaluation policy and the last valuation was carried out in 2005 and taken up in financial statements accordingly. During the financial year 30 June 2007, the Company adopted FRS 101 where the PDE was reclassified from “Property, plant and equipment” to “Biological Assets”. Accordingly the revalued amount of the PDE which was reclassified to “Biological Assets” has been retained as the surrogate carrying amount of PDE. The additions of biological assets include expenses incurred on plantation development ‘expenditure and replanting expenditure, capitalisation of borrowing costs and amortisation of Jand use rights. 2015 2014 RM RM Group ‘Addition during the financial year 7,742,113 12,418,496 Capitalisation of borrowing cost 3,926,370 3,401,999 Amortisation of land use rights 251,322 98,164 L1,919,805__15,918,659 Included in addition during the financial year are employee benefit expenses amounting to RM1,264,872 (2014: RMI,186,992). The interest on borrowing for the financial year is capitalised at rates ranging from 6.83% to 7.10% (2014: 6.85% to 7.10%) per annum. INVESTMENT IN SUBSIDIARIES Company 2015 2014 RM RM Unquoted shares, at cost 68,608,556 68,608,556 Less: Accumulated impairment losses (100) (100) 4‘Company No.: 000222-D 13. INVESTMENT IN SUBSIDIARIES (cont'd) Principal Name of Company Activities Held by the Company: Pinebill Plantations Oil palm cultivation (Malaysia) Sén. Bhd, and processing PPM’) Agri Business Advisory Dormant Services Sdn. Bhd, Held through PPM Syarikat Kaum Melayu Hilir Oil palm cultivation Perak Sdn. Bhd. (‘SKM’) Tahir, Rozlan and Tasariff Oil palm cultivation Sdn. Bhd. (‘TRT’) Pinehill Ventures Limited #* Investment holding and plantation management service provider ‘Held through Pinehill Ventures Limited: PI. Makmur Jaya Malindo* * Oil palm cultivation and processing Held through PT. Makmur Jaya Malindo: PT. Inma Jaya Group** Oil palm cultivation PT. Inma Makmur Lestari* “Oil palm cultiv PT. Indomal Sawit Jaya*’* Oil palm cultivation PT. Sintang Sawit Lestari* Dormant 35 Principal Place of Business/ Proportion of Ownership Country of incorporation Malaysia Malaysia Malaysia Malaysia Labuan, Malaysia Republic of Indonesia Republic of Indonesia Republic of Indonesia Republic of Indonesia Republic of Indonesia Interest/Voting Rights 2015 2014 94.5% 94.5% 100% 100% 100% 100% 91.33% 91.33% 100% 100% 80% 80% 95% 95% 99.88% 99.88% 99.88% 99.88% 99.88% 99.88%‘Company No.: 000222-D 13, INVESTMENT IN SUBSIDIARIES (cont'd) Principal Place of Business/ Principal Country of Proportion of Ownership Name of Company Activities incorporation Interest/Voting Rights 2015 2014 Held through PT. Inma Makmur Lestari PT. Indomal Sawit Jaya** Oil palm cultivation Republicof 0.12% 0.12% Indonesia PT. Sintang Sawit Lestari* Dormant Republic of 0.12% 0.12% Indonesia Held through PT, Sintang Sawit Lestari: PT. Inma Makmur Lestari* © Oil palm cultivation Republicof 0.12% 0.12% Indonesia # Subsidiary audited by a firm of chartered accountants affiliated with Messrs. Baker Tilly ‘Monteiro Heng. * Audited by Messrs. Baker Tilly Monteiro Heng for the purpose of consolidation in the financial statements of the Group. ‘\ Allshares are pledged for borrowing facilities granted to PPM as disclosed in Note 20. Acquisition of non-controlling interest On 11 July 2013, the subsidiary of the Company, PPM entered into a Sale and Purchase Agreement with non-controlling shareholder of Pinehill Ventures Limited (‘PVL"’) to acquire the remaining 30% equity interest in PVL for a cash consideration of RM25,000,000. Consequently, PVL became a wholly-owned subsidiary of PPM. The Group recognised an increase in non-controlling interests of RMI,143,010 and an increase in accumulated losses of RM26,143,010 on the date of acquisition. ‘The following summarises the effect of changes in the equity interest in PVL that is attributable to ‘owners of the Company:- RM Cash consideration paid to non-controlling interest 25,000,000 Carrying amount of additional interest acquired 1,143,010 Total difference recognised in accumulated losses with equity attributable to owners of the Company 26,143,010 56‘Company No.: 000222-D 13. INVESTMENT IN SUBSIDIARIES (cont'd) (a) The subsidiaries of the Company that have material non-controlling interests (‘NCI’) are as follows: PPM and its subsidiaries Total RM RM 2015 NCI proportion of ownership interest and voting interest 5.50% Carrying amount of NCI Loss allocated of NCI (2,338,268) __(2,338,268) Total comprehensive loss allocated to NCI 678,613 2,678,613} 2014 NCI proportion of ownership interest and voting interest 5.50% Carrying amount of NCI 4,026,627 Loss allocated of NCI G,966,499) __(3,966,499) Total comprehensive income allocated to NCI 2,111,493) (2,111,493) (b) The summarised financial information before intra-group elimination of the subsidiaries that have material NCI as at the end of each reporting period are as follows:- PPM and its subsidiaries 2015 RM Assets and liabilities ‘Non-current assets 407,418,692 Current assets 34,972,302 ‘Non-eurrent liabilties (203,736,281) Current liabilities (89,500,675) Net assets 149,15: Non-controlling interests 37‘Company No.: 000222-D 13, INVESTMENT IN SUBSIDIARIES (cont'd) (b) The summarised financial information before intra-group elimination of the subsidiaries that have material NCI as at the end of each reporting period are as follows: (cont'd) © 2015 Results Revenue Loss for the financial year Total comprehensive loss Cash flows from operating activities Cash flows used in investing activities Cash flows from financing a Net decrease in cash and cash equivalents 2014 Assets and lial ‘Non-current assets Current assets ‘Non-current liabilties Current liabilities Net assets Non-controlli Results Revenue Loss for the financial year ‘Total comprehensive income Cash flows used in operating activities ‘Cash flows from investing activities Cash flows used in financing activities Net decrease in cash and cash equivalents ‘The covenants of the bank term loans taken by Pinehill Plantati subsidiary of the Company, restrict the ability of the subsidiary to provide ad advances to the Company other than for trade purposes. 58 PPM and its subsidiaries RM 27,485,867 (12,588,221) (13,644,294) 5,125,907 (16,876,700) 11,030,754 (720,039) 365,923,749 43,681,194 (195,738,899) 5,192,476 32,627,290 (62,127,394) (23,690,270) 1,430,382 (89,470,765)Company No.: 000222-D 14, 15. INVENTORIES Group 2015 2014 RM RM At cost, Palm oil products 720,208 590,041 Consumable inventories 415,506 _2,340,391 1,135,714 _2,930,432 During the financial year, the cost of inventories recognised as an expense in cost of sales of the Group is RM28,709,705 (2014: RM27,770,233). TRADE RECEIVABLES Group 2015 2014 RM RM External parties 774,274 758,693 (@) Credit term of trade receivables The Group's normal credit term ranges from 7 to 15 days (2014: 7 to 15 days). They are recognised at their original invoice amounts which represent their fair values on initial recognition, (b) Ageing analysis of trade receivables ‘The ageing analysis of the Group’s trade receivables is as follows:- Group 2015 2014 RM RM Neither past due nor impaired 570,866 668,963 1 t0 30 days past due not impaired 26,855 45,307 31 to 60 days past due not impaired 65,803 2,797 61 to 90 days past due not impaired 34,755, i 91 to 120 days past due not impaired 38,572 - More than 120 days past due not impaired 37,423 41,426 203,408 89,730 714214 758,693 39‘Company No.: 000222-D 15. TRADE RECEIVABLES (cont'd) (b) Ageing analysis of trade receivables (cont'd) Receivables that are neither past due nor impaired Trade receivables that are neither past due nor impaired are creditworthy debtors with good payment records with the Group. 16. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS Group Company 2015 2014 2015 2014 RM RM RM RM Other receivables 423,121 341,089, - : Advances to suppliers and contractors, 569,777 434,523 - Deposits 65,247 191,835, 5,721 Prepayments 681,874 __ 633,997 11,100 1,740,019 ‘The movement of allowance accounts used to record the impairment loss on other receivables are 2s follows:- Group 2015 2014 RM RM ‘At | July 2014/2013 > 123,743 Reversal (Note 6) = __ (123,743) At30 June 17. CASH AND BANK BALANCES Group ‘Company 2015 2014 2015 2014 RM RM RM RM Cash and bank balances 342,241 1,212,807 2772 8,608 Deposits with a licensed bank 34,500 29,500 376,741 1,242,307 2,772 8,608 Less: Non short term and highly liquid fixed deposits 342,241 60 (34,500) (29,500) 1,212,807Company No.: 000222-D 17. 18. 19. ‘CASH AND BANK BALANCES (cont'd) Deposits with a licensed bank are pledged as security for a bank guarantee facility granted to a subsidiary and are not freely available for general use. The weighted average eflective interest rate ‘of deposits with a licensed bank of the Group at the reporting date was 3.20% (2014: 3.20%) per annum. ‘The maturity of deposits with licensed bank of the Group as at the end of the financial year was 1 10 365 days (2014: | 10 365 days). SHARE CAPITAL Group/Company Number of shares Amount 2015 2014 2015 2014 unit unit RM RM Authorised: Ordinary shares at RMO.50 each At July/ 30 June 1,000,000,000_ _1,000,000,000_ _500,000,000 _500,000,000 Issued and filly paid: Ordinary shares at RM0.50 each At 1 July/ 30 June 149,804,135 __149,804,135_ __74,902,067_ _74,902,067 ‘The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. Al ordinary shares carry one vote per share without restrictions and rank equally with regards to the Company residual interests. OTHER RESERVES Group 2015 2014 RM RM Non-distributable Revaluation reserve 211,126,194 211,126,194 ‘Translation reserve 5,613,945 6,334,679 216,740,139 __ 217,460,873 (a) Revaluation reserve The revaluation reserve arose from the revaluation surplus from Mukim Changkat Jong, District of Hilir Perak land net of deferred taxation. 6Company No.: 000222-D 19. OTHER RESERVES (cont'd) (b) Translation reserve ‘The translation reserve represents foreign exchange differences arising from the translation of the financial statements of foreign subsidiaries. 20. LOANS AND BORROWINGS Group 2015 2014 RM RM 1 (Note (@)) 10,786,626 10,177,908 ‘Term loan - TF-i 2 (Note (a)) 1,500,000 1,750,000 ‘Term loan - TE-i3 (Note (a)) - : Finance lease payables (Note (b)) 96,158 230,266 12,382,784 _ 12,158,174 ‘TF-i1 (Note (@)) 78,727,410 87,425,610 (Note (a)) 11,242,500 12,500,000 Term loan - TF-i3 (Note (a)) 22,547,301 8,631,622 Finance lease payables (Note (b)) 193,264 242,220 112,710,475 _108,799,452 Total borrowings: Term loan - TF-i 1 (Note (a)) 89,514,036 97,603,518 Term loan - TF-i 2 (Note (a)) 12,742,500 14,250,000 Term loan - TF-i3 (Note (a)) 22,547,301 8,631,622 Finance lease payables (Note (b)) 289,422 4T2A86 125,093,259 _120,957,626 2‘Company No.: 000222-D 20. LOANS AND BORROWINGS (cont’d) (@) Term loans Group 2015 2014 Secured RM RM ‘Term loans ~ Non-current 112,517,211 108,557,232 ~ Current 12,286,626 11,927,908 124,803,837 _120,485,140 ‘The maturity profile ofthe term loans are as follows:- Group 2015 2014 RM RM Repayable within 12 months 12,286,626 11,927,908 Repayable after 1 year but not later than 2 years 26,867,864 12,604,919 Repayable after 2 years but not later than 5 years 81,417,002 80,363,717 Repayable after 5 years 4,232,345 __ 15,588,596 124,803,837 _ 120,485,140 The term loans bear effective interest at rates ranging from 6.83% to 7.10% (2014: 6.85% to 7.10%) per annum, ‘Term loan TF-il ‘Term loan TF-i | is repayable by 28 quarterly principal instalments over 7 years commencing. ‘rom the third month from the day of first drawndown and is secured by the following: @ First legal charge over the leasehold land, estate buildings and certain plant and machinery of the subsidiaries of the Company as disclosed in Note 10; Gi) Debenture creating fixed and floating legal charge over all present and future assets of Pinchill Plantations (Malaysia) Sdn, Bhd. (“PPM”); (iii) Corporate guarantee by the Company in favour of the bank; (iv) Assignment of revenue proceeds from PPM and charge over the bank account; (v) Assignment of receivable from PPM; and (vi) Pledge of 70% shares in a subsidiary, Pinehill Ventures Limited (“PVL"). Term loan TR-i2 ‘The term loan TF-i 2 is repayable over 20 quarterly instalments over 5 years commencing from the third month from the day of first drawdown and is secured by pledge of the remaining 30% shares in a subsidiary, PVL. 6‘Company No.: 000222-D 20. LOANS AND BORROWINGS (cont'd) (a) Term loans (cont’d) ‘Term loan TF-i3 ‘The term loan TF-i 3 is repayable over 28 quarterly instalments over 7 years commencing from 3 months after the expiry of the grace period, which is 36 months from the date of the first drawdown. This term loan is secured by the following: @__ Pledge of all shares held by Pinchill Ventures Limited in certain Indonesian subsidiaries as disclosed in Note 13; (ii) Assignment of revenue proceeds from Indonesian subsidiaries and charge over the bank account; Git) Mortgage over the land use rights or its equivalent under the law of the Republic of Indonesia; and (iv) Fiduciary contract over the Palm Oil Mill of Indonesian subsidiar (b) Finance lease payables ‘The maturity profile of the finance lease payables is as follows:- Future minimum lease payments Less: Future finance charges Total present value of minimum lease payments Payable within | year Future minimum lease payments Less: Future finance charges Present value of minimum lease payments Payable more than 1 year but not more 5 years Future minimum lease payments Less: Future finance charges Present value of minimum lease payments Payable more than 5 years Future minimum lease payments Less: Future finance charges Present value of minimum lease payments Total present value of minimum lease payments Group 2015 2014 RM RM 322,231 518,685 62.809) _46,199) 289,422 472,486 108,525 249,486 12,367) 19,2209] 96,158 230,266 181,084 218,581 (07,783) 21,994) 163,301 196,587 32,622 50,618 2,659) (4,985) 29,963 45,633, 472,486,Company No.: 000222-D 20. 21. 2. LOANS AND BORROWINGS (cont’d) (b) Finance lease payables (cont'd) ‘The finance lease payables of the Group bear interest at rates ranging from 2.82% to 7.13% (2014; 2.82% to 7.13%) per annum, DEFERRED TAX LIABILITIES Group 2015 2014 RM RM Group ‘At | July 2014/2013, 59,836,170 64,861,310 Recognised in profit or loss (Note 8) 3,338,751) (2,598,348) ‘Recognised in equity (Note 8) = __@,426,792) At 30 June 56,497,419 _ 59,836,170 ‘The deferred tax (assetVliabilities are attributable to the followings:- Group 2015 2014 RM RM Difference between the carrying amount of property, plant and equipment and their tax base (34,662) 30,349) Surplus arising from revaluation of leasehold land and biological assets 52,653,432 55,879,937 Difference between the carrying amount of biological assets and its tax base 2,285,478 2,393,411 Fair value adjustment in respect of subsidiaries acquired 1,593,171 __ 1,593,171 56,497,419 _ 59,836,170 AMOUNT DUE TO A CORPORATE SHAREHOLDER On 30 June 2014, an amount of RM26,659,795 due to a director was novated to a corporate shareholder in which the director has substantial interest pursuant to a novation agreement. ‘This amount which includes an amount of RM10,000,000 being subordinated to the repayment of term loans and is non-trade in nature, unsecured, interest free and not repayable within the 12 months after the reporting date. 6s‘Company No.: 000222-D 23, AMOUNTS DUE TO DIRECTORS Group Company 2015 2014 2015 2014 RM RM RM RM ‘Non-current Amount due toadirector (a) 7,556,876 216,000 270,000 216,000 Current Amounts due to directors (b) __ 390,000 7,946,876 528,000 660,000 5 312,000 390,000 312,000 10 (a) This amount is non-trade in nature, unsecured, interest free and are not repayable within 12 months after the reporting dat. (b) These amounts are accrued director fees and allowances, unsecured, interest free and repayable on demand by cash. 24. DEFINED BENEFIT OBLIGATIONS Group 2015 2014 RM RM At I July 2014/2013 443,482 a Provision for the financial year (Note 6) 161,476 443,482 Utilised during the financial year (12,325) - Remeasurement gain on defined benefits plan (17,875) : Translation difference 6,957 581,715 At30 June ‘The subsidiaries of the Company in the Republic of Indonesia operate unfunded defined benefit scheme, as required under the Labour Law of the Republic of Indonesia, ‘The amount recognised in the consolidated statement of financial position are determined as follows: Group 2015 2014 RM RM Present value of obligations 581,715 443,482Company No.: 000222-D 24. DEFINED BENEFIT OBLIGATIONS (cont'd) ‘The expenses recognised in profit or loss are as follows: Group 2015 2014 RM RM Current service costs 122,854 418,934 Interest on obligation 38,622 24,548 161,476 443,482. ‘The expenses recognised in other comprehensive income are as follows:- Group 2018 2014 RM RM Remeasurement gain on defined benefits plan (17,875) ‘The defined benefit obligation expenses were determined based on actuarial valuations prepared by an independent actuary using the projected unit credit method, Principal assumptions at reporting date are as follows: 2015 2014 Group Discount rate 8.60% 9.00% Future salary increase 7.00% 7.00% Ilthealth rate 10% of TMI Itt 10% of TMI UL Mortality rate TMIIL TMIIL Resignation rate 5% until age 34 then 5% until age 34 then decrease linearly to 0% decrease linearly 10 0% Normal retirement age 55 55 6‘Company No.: 000222-D 24, DEFINED BENEFIT OBLIGATIONS (cont'd) Sensitivity Analysis Significant actuarial assumptions for the determi of the defined benefit obligation are discount rate and expected salary increase. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. Group 2015 Tncrease/ Weerease) RM Discount rate increase by 1% (46,725) Discount rate decrease by 1% 54,426 Salary growth rate increase by 1% 34,429 Salary growth rate decrease by 1% (47,498) ‘The sensitivity analysis presented above may not be representative of the actual change in the efined benefit obligation as itis unlikely that the change in assumptions would occur in isolation ‘of one another as some of the assumptions may be correlated. In presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the consolidated statement of financial position. ‘At 30 June 2015, the weighted-average duration of the defined benefit obligation ranges from 18.70 to 20.65 years (2014: 19.33 to 22.55 years). 25. TRADE PAYABLES ‘The normal trade credit term granted to the Group ranges from 30 to 90 days (2014: 30 to 90 days). Included in the trade payables of the Group is an amount of RM2,499,095 (2014: RM2,496,051) Which bear interest at rate of 4% (2014: 426) per annum. 68Company No.: 000222-D 26. 21. 28, OTHER PAYABLES AND ACCRUALS Group ‘Company 2015 2014 2015 2014 RM RM RM RM Other payables 1,279,286 1,189,966 99,500 62,551 Advance from customers 157,777 - 7 = Accruals 14,145,137 10,852,803, 301,027 498,453 Dividend payables 143,177 143,177 : : 400,527 561,004 Included in the Group's other payables are amounts of RMI,716 and RM239,771 (2014: RM?,930 and RM465,605) due to a director of a subsidiary and a company in which a director has substantial financial interest respectively. Included in accruals of the Group are accrued term loan interest amounting to RMI1,549,368 (2014: RMI,412,690) and tax penalty amounting to RMS,594,821 (2014: RMS,050,926). AMOUNT DUE TO A SUBSIDIARY This amount is non-trade in nature, unsecured, interest free and is repayable on demand by cash. NON-CANCELLABLE LEASE COMMITMENTS The Group entered into non-cancellable operating lease arrangements for the rental of premises. ‘The leases have a tenure of two years with an options of renewal upon expiry. There are no restriction placed upon the Group by entering into this lease. ‘The future a Operating leases contracted for as at the reporting date but not recognised as follows: Group 2015 2014 RM RM Future minimum rental payables Not later than one year - 7,200 Later than one year but not later than five years 7 f 6‘Company No.: 000222-D 29. RELATED PARTY DISCLOSURES @ © © Identity of related parties For the purpose of these financial statements, parties are considered to be related to the Group and the Company if the Group and the Company have the ability to directly control the party or exercise significant influence over the party in making financial and operating decision, or vice versa, or where the Group and the Company and the party are subject to common contro! ‘or common significant influence. Related parties may be individuals or other entities. The ‘Company has a related party relationship with its corporate shareholder of holding company, subsidiaries, key management personnel and company related to a director. Company related to a director refers to company in which a director of the Company has substantial financial interests, Related party transzetions and balances are as follows:- In addition to the transactions disclosed elsewhere in the financial statements, the Group and the Company had the following transactions with related parties during the financial year:- Group 2015 2014 RM RM Company related to a director Rental expenses 137,500_ __ 289,906 Information regarding outstanding balances arising from related party transactions as at the reporting date is disclosed in Notes 22, 23, 26 and 27 ‘Compensation of key management personnel Key management personnel include personnel having authority and responsibility for planning, di and controlling the activities of the entities, directly or indirectly, including any director of the Group. ‘The remuneration of the key management personnel is as follows:- Group Company 2015 2014 2015 2014 RM RM RM RM Executive directors’ remuneration: - Short term employee benefits 1,704,864 1,654,864 63,864 414,864 ~ Post-employment benefits 188,160 __175,680 3,240 __ 38,880 Balance brought down 1,893,024 1,830,544 67,108 453,744 70Company No.: 000222-D 29, 30. RELATED PARTY DISCLOSURES (cont'd) (©) Compensation of key management personnel (cont’d) Group ‘Company 2015 2014 2015 2014 RM RM RM RM Balance carried down 1,893,024 1,830,544 67,104 453,744 Non-executive directors’ remuneration: - fee and other emoluments 115,000, 114,150 __115,000, __114,150 Total directors' remunerations _—2,008,024 1,944,694 ‘182,104 567,894 Other key management personnel - Short term employee benefits 1,421,496 1,331,496 15,814 165,789 - Post-employment benefits 104,064 __96,864 1898 23,136 1,525,560__1,428,360 17,712, __ 188,925 3,533,584 _ _ 3,373,054 _ 199,816 __ 756,819. Other key management personnel comprises persons other than the directors of the Company, having authority and responsibility for planning, directing and controlling the activities of the Company, either directly or indirectly. FINANCIAL INSTRUMENTS (a) Categories of financial instruments ‘The following table analyses the financial assets and liabilities in the statements of financial positions by the class of financial instruments to which they are assigned, and therefore by the ‘measurement basis Loans and Group receivables Total 2015 RM RM Financial assets Trade receivables ‘TTA274 774274 ‘Other receivables and deposits 488,368 488,368 Cash and bank balances 376,741 376,741 1,639,383, 1,639,383 n‘Company No.: 000222-D 30, FINANCIAL INSTRUMENTS (cont’¢) (a) Categories of financial instruments (cont’d) ‘The following table analyses the financial assets and liabilities in the statements of financial positions by the class of financial instruments to which they ate assigned, and therefore by the ‘measurement basis:- (cont'd) Financial liabilities at Group amortised cost Total 2015 RM RM ‘Financial liabilities Trade payables 11,679,834 11,679,834 Other payables and accruals 15,567,600 15,567,600 Loans and borrowings 125,093,259 125,093,259 Amount due to a corporate shareholder 26,659,795 26,659,795 Amounts due to directors 7,946,876 7,946,876 186,947,364 Loans and Group receivables Total 2014 RM RM Financial assets Trade receivables 758,693 758,693, Other receivables and deposits 532,924 532,924 ‘Cash and bank balances 1,242,307 1,242,307 2,533,924 2,533,924 Financial liabilities at amortised cost Total RM RM Financial liabilities Trade payables 9,034,805 9,034,805 Other payables and accruals 12,185,946 12,185,946 Loans and borrowings 120,957,626 120,957,626 Amount due to a corporate sharcholder 26,659,795 26,659,795 Amounts due to directors 528,000 528,000. 169,366,172_ _169,366,172 naCompany No.: 000222-D 30. FINANCIAL INSTRUMENTS (cont'd) (a) Categories of financial instruments (cont'd) ‘The following table analyses the financial assets and liabilities in the statements of financial positions by the class of financial instruments to which they are assigned, and therefore by the ‘measurement basis:- (cont'd) ‘Loans and Company. receivables Total 2015 RM RM Financial assets Other receivables and deposits 5,727 3,227 ‘Amount due from a subsidiary 6,663, 6,663 Cash and bank balances 2.77. 2772. 15,162 15,162 Financial abilities at amortised cost Total RM RM Financial liabilities ‘Other payables and accruals 400,527 400,527 Amounts due to directors 660,000 660,000 Amount due to a subsidiary 37,553,003 _ 37,553,003 38,613,530 _ 38,613,530 Loans and Company receivables Total 2014 RM RM Financial assets Other receivables and deposits 3,727 5,727 Amount due from a subs 6,663 6,663 Cash and bank balances 8,608 8,608 20,998 20,998 BCompany No.: 000222-D 30. FINANCIAL INSTRUMENTS (cont'd) (a) Categories of financial instruments (cont’d) ) ‘The following table analyses the financial assets and liabilities in the statements of financial positions by the class of financial instruments to which they are assigned, and therefore by the measurement basis:~ (cont'd) Financial liabilities at Company amortised cost Total 2014 RM RM Financial liabilities Other payables and accruals 561,004 561,004 Amounts due to directors 528,000 528,000 Amount due to a subsidiary 37,161,248 _ 37,161,248 38,250,252_ _ 38,250,252 Fair value of financial instruments ‘The methods and assumptions used to estimate the fair values of the following classes of financial assets and liabilities are as follows:- @ Cash and bank balanees, trade and other receivables and payables The carrying amounts of cash and bank balances, trade and other receivables and payables are reasonable approximation of fair value due to short term nature of these financial instruments, (i) Borrowings ‘The carrying amounts of the current portion of borrowings are reasonable approximation of fair values due to the insignificant impact of discounting. ‘The carrying amounts of long term floating rate loans approximate their fair values as the loans will be re-priced to market interest rate on or near reporting date. ‘The fair value of finance lease payables is estimated using discounted cash flow analysis, based on current lending rate for similar types of lease arrangements. 4Company No.: 000222-D 30, FINANCIAL INSTRUMENTS (cont'd) (©) Fair value measurements ‘The carying amounts of financial assets and liabilities recognised in the statements of financial position are reasonable approximation of their fair values except for the following:~ 2015 Financial liabilities Finance lease payables, Level 2 RM 278,623 Term loans 2014 Financial liabilities Finance lease payables Term loans As at finar instruments for which fair value is disclosed in the financial statements:- 2015 Level 1 RM RM Financial lease payables 278,623 - Term loans 124,803,837 = RM RM Financial lease payables 468,400 - ‘Term loans 120,485,140 : 124,803,837 Level 2 RM 468,400 120,485,140 Group Carrying Fair Amount Value RM RM 289,422 278,623 124,803,837 _ 124,803,837 472,486 468,400 120,485,140 120,485,140 ‘years ended 30 June 2015 and 2014, the Group held the following financial During the financial years ended 30 June 2015 and 2014, there was no transfer between Level and Level 2 of the fair value measurement hierarchy. 5Company No.: 000222-D 31, FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES ‘The Group and the Company are exposed to financial risks arising from their operations and the use of financial instruments. The key financial risks include eredit risk, liquidity risk, interest rate ccurrenoy risk. ‘The Board of Directors review and agree policies and procedures for the management of these risks, which are executed by the Group Finance Executive Vice President. The audit committee provides independent oversight to the effectiveness of the risk management process. It is, and has been throughout the current and previous financial year, the Group’s policy that no derivatives shall be undertaken except for the use as hedging instruments were appropriate and cost-efficient, The Group and the Company do not apply hedge accounting. ‘The following sections provide details regarding the Group’s and the Company's exposure to the abovementioned financial risks and the objectives, policies and processes for the management of these risks. (@) Credit risk Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations. The Group’s exposure to credit risk primarily arises from its trade receivables. For other financial assets (including cash and bank belances), the Group minimise credit risk by dealing exclusively with high credit rating counterparties. The Group's objective is to seek continual revenue growth white minimising losses incurred due to increased credit risk exposure. The Group trades only with recognised and creditworthy third parties. It is the Group's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an. ongoing basis with the results that the Group's exposure to bad debts is not significant. Exposure to credit risk At the reporting date, the Group’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statements of financial position. The Company also expose to credit risks in relation to provision of financial guarantees to banks in respect of banking facilities granted to a subsidiary. Credit risk concentration profile The Group determines concentrations of credit risk by monitoring the country of its trade receivables on an ongoing basis. The credit risk concentration profile of the Group’s trade receivables at the reporting date are as follows: Group 2015 2014 % of of RM total RM total By country: Malaysia 563,780 3% 609,482 80% Republic of Indonesia 210,494 21% 149,211 758,693, 100% 16Company No.: 000222-D 31. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont’d) @) ) Credit risk (cont'd) ‘The Group does not have any significant exposure to any i date. vidual customer at the reporting Financial guarantee The Company provides unsecured financial guarantees to a licensed bank in respect of banking facilities granted to a subsidiary as mentioned in Note 20. ‘The Company monitors on an ongoing basis the repayments made by the subsidiary and its financial performance. ‘The maximum exposure to credit risk amounts to RM124,803,837 (2014: RM120,485,140) representing the outstanding banking facilities at the reporting date. At the reporting date, there was no indication that the subsidiary will default on its repayment. The financial guarantee has not been recognised as at fair value on initial recognition since the financial guarantees provided by the Company did not contribute towards credit enhancement of the subsidiary’s borro jew of security pledged by the subsidiary and it is unlikely the subsidiary will default within the guarantee period, Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of the Group’s financial instruments will fluctuate because of changes in market interest rates. ‘The Group's exposure to interest rate risk mainly relates to financial liabilities. The Group's interest bearing financial liabilities comprise finance lease payables, loans and borrowings. ‘The loans and borrowings of the Group totalling RM124,803,837 (2014: RM120,485,140) at floating rate expose the Group to cash flow interest rate risk whilst finance lease payable of RM289,422 (2014; RM472,486) at fixed rate expose the Group to fair value interest rate risk, The Group’s policy is to manage interest cost using a mix of fixed and floating rate debts. ‘The Group actively reviews its debts portfolio, taking into account the investment holding. petiod and nature of its assets. This strategy allows it to capitalise on cheaper funding in a low interest rate environment and achieve a certain level of protection against rate hikes. Sensitivity analysis for interest rate risk If the interest rate had been SO (2014: 50) basis points higher/lower and all other variables were held constant, the Group’s loss net of tax would decrease/increase by RM624,019 (2014: RM602,426) as a result of higher/lower interest expense on floating rate loans and borrowings. n‘Company No.: 000222-D 31. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont'd) (© Foreign curreney risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rats. ‘The Group and the Company have transactional currency exposures arising from cash and cash equivalents and inter-company advances that are denominated in a currency other than the functional currency of respective entity of the Group, primarily RM and Indone Rupiah (“IDR”). The foreign currencies in which these transactions are denominated are mainly United States Dollar (“USD”), Singapore Dollar (“SGD”), RM and IDR. Foreign exchange exposures in transactional currencies other than functional currencies of the ‘operating entities are Kept to an acceptable level. Material foreign currency transection exposure are hedged mainly by derivative financial instruments such as forward foreign exchange contracts, if necessary. ‘As at reporting date, the Group had not entered into any forward foreign exchange contracts. Financial asset denominated in USD, SGD, RM and IDR are as follows: 2015 2014 Group RM RM usp Cash and bank balances 17,107 32,917 SGD Cash and bank balances : 17,300 IDR Cash and bank balances 4,269 RM ‘Trade payables 416,865 394,659 8B‘Company No.: 000222-D 31. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont'd) (©) Foreign currency risk (cont'd) Se analysis for foreign currency risk ‘The following table demonstrates the sensitivity of the Group’s loss net of tax to a reasonably possible change in the RM and IDR exchange rate against the functional currency of the Group, with all other variables held constant. Group Increase/(decrease) in Loss net of tax 2015 2014 RM RM # IDRIRM - strengthened 10% (2014: 10%) 12,176,570 10,286,783 - weakened 10% (2014: 10%) (12,176,570) (10,286,783) RMADR - strengthened 10% (2014: 10%) (41,687) 39,466) ~ weakened 10% (2014: 10%) 41,687 39,46 # In respect of inter-company balances wi foreign operations. are not part of the Group’s net investment in @ Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds, The Group’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group's objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities, The Group’s and the Company’s liquidity risk management policy is to manage its debt maturity profile, operating cash flows and the availability of funding so as to ensure that refinancing, repayment and funding needs are met. In addition, the Group and the Company maintains sufficient levels of cash and available banking facilities at a reasonable level to their overall debt position to meet their working capital requirement, 908 : ‘000'0Le OES EERE WELIFEST —— LOELIPEDT - a HI LES EOS PTT LES E08 ¥ZT « RTUON ooTUBIENE [ROUEUL - : soo'ess‘ee eo0'ess‘Le e00‘Ess‘Le Avetpisqns & oy onp yunowy - 000‘0Lz 000°06¢ 000°099 000°099. 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To maintain or adjust the capital structure, the Group may ‘adjust the dividend payment to shareholders, return capital to shareholders, or issue new shares. No changes were made in the objectives, policies or processes during the financial years ended 30 June 2015 and 30 June 2014. ‘The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group includes within net debt, loans and borrowings, trade and other payables, less cash and bank balances. Capital includes equity attributable to the owners of the parent. Group Company 2015 2014 2015 2014 RM RM RM RM Loans and borrowings 125,093,259 120,957,626 : - Trade payables 11,679,834 9,034,805, : 7 Other payables and accruals 15,725,377 12,185,946 400,527 561,004 Amount duc to a corporate shareholder 26,659,795 26,659,795 - : Amounts due to directors 1,556,876 528,000 270,000 528,000 Amount due to a subsidiary - 37,553,003 37,161,248 Less: Cash and bank balances (376,741), __(1,242,307) 2772) (8,608) Net debt 186,338,400__168,123,865_ _38,220,758__38,241.644 Equity attributable to the owners of the Company, representing total capital 108,811,740 _ 120,139,241 _30,021,188__ 30,390,302 Capital and net debt 288,263,106 _ 68,241,946 _68,631,946 Gearing ratio 635 58% 56% ‘The Group and the Company ate not subject to any externally imposed capital requirements. 33. SEGMENT INFORMATION (@) Operating segments For the management purposes, the Group is organised into business units based on their products and services, and has two reportable segments as follows:~ (@__ The plantation segment is in the business of cultivation of oil palm and processing of palm oil, It offers erude palm oil, palm kernel and other oil palm products for sale. i) The investment holding segment refers to the Company with investments in subsidiaries and providing management services to the subsidiaries. 82——— USLOETRVE ~IBCELEIT «A GELPOTTOT PHLTSESI —SORLSTBE —LEPOLORE CIDBELLY OSV EOSTO HL wOWBIS SEVOSVTLE SEVCORELE A TESLELTLO (EOVESSLE) SEPST 66S6I EG vON GO ERSTE sjasse quowiiog SGOT CO'ECILL «== - 7 - BUCOLELI © ceO'ETT'LE sysse quauIn9 spessy CEVTIZTE) (WEBESTEN) «=D EPGOESHTY) —(CEDOONY) PLB LOI) (SOLE) Gie09s se) CLTsI0'8) 550] yuoutfog. wsh‘ebr ao: - 7 = BPC sasuadxo yseo-toU 041 Izp'sos'y a 7 7 sse‘ssi'el — 019%6rc‘EI - - $991 Lec 959°6 a : Loz ‘etuosut ysou9qu SHUM ose'tea ce LORSBYLZ (eseised) OSETSET 198 SEP LC ‘anwagad [e104 a - v Genco - CSE TRET - 7 suouies-20}u osc‘ezo"ce L98‘sep'ee - - - osc'izo'ce —Los'sa¥Lz suoworsno jeuonxg, anuanay, wa we Wa Wwe we wu plot st0z 107 stoz loz soz ‘Syusmayeys jepueuy ——910N ‘Buypjou quaunsoauy uoneyuE]y porepyjostos a9 ‘pousoouod sanued ayp £q uodn paaiBe Aperanun suo, uo paseg ssouisng Jo asinoo Axeurpio 2tp Ut Pozolue axe suoHoesuEN NoLUTasrorUy “sqwaUHes Sunerodo 01 payeooyfe you axe pue siseq dnosS v uo poBleueUt ‘48 sax) awioauy pur (S}s09 aoueuy But 12 au ut poureydxo sv syoadsal ule1I90 ut “ypIyN S80] 30 10rd Ztmperado uo poseg porenjeAd s1 soueULTO}Fed yUaUog “juoWSsosse souBUUOFIod le saunosex 243 ynoqe suoJs!oop ZuPYeUI Jo osodind ayp so} Ayaresedas synM ssaUIsNg SIE Jo sijnsar SuNBIado ox sIONUOW yuoWRs CUE “sjuauuas Supesodo 9[qeyiodo4 oxoqe ax w03 0} payeou8e uoog soy Juauas Suneredo ou ‘enoge porto! deoxy, (p.u00) swuowros Sunes9dQ (v) (P1009) NOLLVAROANI INAADES “ee G-2Z7000 "ON AueduiogCompany No.: 000222-D 33. SEGMENT INFORMATION (cont'd) (a) Operating segments (cont'd) Notes Nature of adjustments and eliminations to arrive at amounts reported in the consolidated financial statements Inter segment revenues are eliminated on consolidation. Other material non-cash expenses consist of the following items as presented in the respective notes to the financial statements: 2015 2014 RM RM Provision of defined benefit obligations 161,476 443,482 ‘The following items are deducted from segment (loss)/profit to arrive at “Loss before tax from operations” presented in the consolidated statement of profit or loss and other comprehensive income: 2015 2014 RM RM Finance costs (4,866,632) __ (4,853,943) Additions to non-current assets consist of: 2015 2014 RM RM Property, plant and equipment 2,245,790 804,629 Land use rights 2,957,427 1,247,640 Biological assets 11,919,805_ __15,918,659 17,123,022 _ 17,970,928 The following items are deducted from segment assets to arrive at total assets reported in the consolidated statement of financial position: 2015 2014 RM RM Inter-segment assets 67,553,003) _(37,173,753) 84Company No.: 000222-D 33. SEGMENT INFORMATION (cont'd) (a) Operating segments (cont'd) Notes Nature of adjustments and eliminations to arrive at amounts reported in the consolidated financial statements (cont'd) F ‘The following items are added/(deducted) to segment liabilities to arrive at total liabilities reported in the consolidated statement of financial position: 2015 2014 RM RM Deferred tax liabilities 56,497,419 $9,836,170 Tax payable 19,548,406 18,644,933. Loans and borrowings 125,093,259 120,957,626 Inter-segment liabilities (37,546,340) _(37,144,390) 163,592,744 _ 162,294,339 (b) Geographical segments Revenue and non-current assets information based on the geographical location of customers and assets respectively are as follows:- Revenue Non-current assets 2015 2014 2015 2014 RM RM RM RM Malaysia 26,776,230 32,259,604 259,156,240 275,059,747 Republic of Indonesia 709,637 367,686_ _110,709,447_ __ 90,864,002 27,485,867 _32,627,290_ _3 ‘Non-current assets information presented above consist ofthe following items as presented in the consolidated statement of financial position. 2015 2014 RM RM Property, plant and equipment 21,748,981 232,519,269 Land use rights 18,266,868 14,996,546 Biological assets 129,849,838 _118,407,934 369,865,687 85Company No.: 000222-D 33. SEGMENT INFORMATION (cont'd) (©) Major customer information Revenue from major customers with revenue equal or more than 10% of the Group revenue are as follows:- 2015 2014 RM RM Major customer ~ Customer A 18,190,873 26,806,688 = Customer B 4,042,117 4,857,494 = Customer C 4,105,691 61,301 86‘Company No.: 000222-D SUPPLEMENTARY INFORMATION ON THE DISCLOSURE OF REALISED AND UNREALISED PROFIT OR LOSS ‘The following analysis of realised and unrealised accumulated losses of the Group and of the Company is presented in accordance with the directive issued by Bursa Malaysia Securities Berhad (“Bursa Securities”) dated 25 March 2010 and prepared in accordance with Guidance on Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants. ‘The accumulated losses of the Group and of the Company as at reporting date are analysed as follows:- Group 2015 2014 RM RM Total accumulated losses + realised (110,157,657) (78,230,575) ~ unrealised (20,635,346) __ (26,223,211) (130,793,003) (104,453,786) Less: Consolidation adjustments (52,037,463) __(67,769,913) Total accumulated losses (182,830,466) _ (172,223,699) ‘Company 2015 2014 RM RM Total accumulated losses ~ realised (44,880,879) (4,511,765) - unrealised - - Total accumulated losses (44,880,879) __(44,511,765) The disclosure of realised and unrealised profits above is solely for complying with the disclosure requirements stipulated in the directive of Bursa Securities and should not be applied for any other purpose. 87