2015 - malaysiastock.biz may - tempered glass plant set up at telok panglima garang industrial site,...

GOLDEN PHAROS BERHAD(152205-W)

LAPORAN TAHUNAN

2 0 1 5A N N U A L R E P O R T

Sustainability & ResilienceKemampanan & Ketahanan

GOLDEN PHAROS BERHAD LAPORAN TAHUNAN 2015 ANNUAL REPORT

One goal:Sustainable Profitable Growth

THE DEFINITION OF ACUMEN, PROSPECTS, EXPERIENCE & RESULTS

Since becoming a fully integrated timber corporation in 1996, Golden Pharos Berhad’s (“GPB”) vision has been to apply sound financial principles for sustainable long-term profits and deliver superior value and quality of its products and services.

The global slump did not deter us. We persevered and bolstered our holdings. Constant change in the economic environment does not shake us. We have built in flexibility and innovation to strengthen our operations. Our goal is to prosper through capitalising on innovation to heighten productivity and ensure quality in our products and services.

Satu matlamat:Pertumbuhan Keuntungan Yang Lestari

DEFINISI KEPINTARAN, PROSPEK,PENGALAMAN & KEPUTUSAN

Sejak menjadi sebuah syarikat kayu bersepadu sepenuhnya pada tahun 1996, wawasan Golden Pharos Berhad (“GPB”) ialah untuk mengamalkan prinsip-prinsip kewangan yang utuh untuk keuntungan jangka panjang yang mampan dan memberikan nilai dan kualiti yang unggul bagi produk dan perkhidmatannya.

Kemelesatan global bukan halangan. Kami tabah dan memperkukuh pegangan kami. Perubahan yang berterusan dalam persekitaran ekonomi tidak menggoncang kami. Kami telah membina fleksibiliti dan inovasi untuk mengukuhkan operasi kami. Matlamat kami adalah untuk berjaya dengan memanfaatkan inovasi bagi meningkatkan produktiviti dan memastikan kualiti produk dan perkhidmatan kami.

TABLE OF CONTENTSKANDUNGAN

02 Milestones & Achievements

04 Corporate Goal & Objectives

05 Financial Highlights

06 Financial Highlights - Segmental Information

07 Financial Highlights - Sales by Region

08 Chairman’s Statement

17 Environmental Statement

20 Group Structure

21 Corporate Information

22 Board of Directors’ Profile

26 Chief Executive Officer’s Profile

27 Management Team

28 Corporate Highlights

31 Corporate Social Responsibility

33 Statement on Corporate Governance

41 Statement on Risk Management and Internal Control

44 Report on Audit Committee

46 Terms of Reference of Audit Committee

51 List of Properties

55 Financial Statements

119 Analysis on Shareholdings

120 List of Top Shareholders

121 Notice of Annual General Meeting

123 Statement Accompanying Notice of Annual General Meeting

• Proxy Form

ACUMEN BERWIBAWA02

Milestones & AchievementsPeristiwa Penting & Pencapaian

PROSPECTS PROSPEK08

Chairman’s StatementPenyata Pengerusi

EXPERIENCEPENGALAMAN

22Board of Directors Profile

Profil Lembaga Pengarah

RESULTSPENCAPAIAN

55Financial Statements

02 Peristiwa Penting & Pencapaian

04 Matlamat & Objektif Korporat

05 Sorotan Kewangan

06 Sorotan Kewangan - Maklumat Segmen

07 Sorotan Kewangan -

Jualan Mengikut Kawasan

13 Penyata Pengerusi

19 Penyata Alam Sekitar

20 Struktur Kumpulan

21 Maklumat Korporat

22 Profil Lembaga Pengarah

26 Profil Ketua Pegawai Eksekutif

27 Pihak Pengurusan

28 Peristiwa Korporat

32 Tanggungjawab Sosial Korporat

33 Penyata Tadbir Urus Korporat

41 Penyata Pengurusan Risiko dan Kawalan Dalaman

44 Laporan Jawatankuasa Audit

46 Terma Rujukan Jawatankuasa Audit

53 Senarai Hartanah

119 Analisa Pegangan Saham

120 Senarai Tiga Puluh Pemegang Saham Terbesar

127 Notis Mesyuarat Agung Tahunan

129 Penyata Mengiringi Notis Mesyuarat Agung Tahunan

• Borang Proksi

GOLDEN PHAROS BERHAD LAPORAN TAHUNAN 2015 ANNUAL REPORT 01

1996

GPB took over the manufacturing of timber doors from Golden Pharos Wood Industries Sdn Bhd.

GPB mengambil alih pembuatan pintu kayu daripada Golden Pharos Wood Industries Sdn Bhd.

March - GPB became a fully integrated timber corporation with the acquisition of Permint Timber Corporation Sdn Bhd.

Mac - GPB menjadi sebuah syarikat kayu bersepadu sepenuhnya dengan pengambilalihan Permit Timber Corporation Sdn Bhd.

1992May - Tempered glass plant set up at Telok Panglima Garang Industrial Site, producing 20,000 square metre of tempered glass per month.

November - Second phase of glass production to supply architectural glass and shower screens for domestic buildings and the construction industry implemented.

Mei - kilang kaca ‘tempered’ ditubuhkan di Tapak Perindustrian Telok Panglima Garang dengan menghasilkan 20,000 meter persegi kaca ‘tempered’ sebulan.

November - Fasa kedua pengeluaran kaca untuk membekalkan kaca seni binaan dan skrin mandi untuk bangunan domestik dan industri pembinaan dilaksanakan.

1980

MILESTONES & ACHIEVEMENTSPERISTIWA PENTING & PENCAPAIAN

02 GOLDEN PHAROS BERHAD LAPORAN TAHUNAN 2015 ANNUAL REPORT


Kumpulan Pengurusan Kayu Kayan Trengganu Sdn Bhd, timber management subsidiary, awarded the Forest Stewardship Council (FSCTM) endorsed certification.

Two sawmilling subsidiaries, Pesaka Trengganu Berhad and Pesama Timber Corporation Sdn Bhd (Pesama) are Chain-of-Custodian (CoC) certified by third party certifiers accredited by the FSCTM.

Kumpulan Pengurusan Kayu Kayan Trengganu Sdn Bhd, subsidiari pengurusan balak, dianugerahkan pensijilan yang diiktiraf Forest Stewardship Council (FSCTM).

Dua subsidiari perkilangan papan, Pesaka Trengganu Berhad dan Pesama Timber Corporation Sdn Bhd (Pesama), memperolehi pensijilan Chain-of-Custodian (CoC) yang disahkan oleh pihak ketiga yang ditauliahkan oleh FSCTM.

Golden Pharos Glass Sdn Bhd (GP Glass) certified to ISO 14001:2004 International Standards.

GP Glass awarded ISO 9001-2006.

Pesama obtained FSC endorsed certification for Cherul Forest Concession.

Golden Pharos Glass Sdn Bhd (GP Glass) memperolehi pensijilan ISO 14001: 2004 Piawaian Antarabangsa.

GP Glass dianugerahkan ISO 9001-2006.

Pesama memperolehi pensijilan yang diiktiraf oleh FSC bagi Konsesi Hutan Cherul.

2015

2014

2012

2008

GPB entered into a Memorandum of Understanding with Dongwha Malaysia Sdn Bhd.

Permint Plywood Sdn. Bhd. (PPSB) entered into a Joint Venture Agreement with Cymao Plywood Sdn. Bhd. (CPSB) to revive PPSB’s facility with 60% holding of GP Dynamic Venture Sdn Bhd (joint venture company)’s 1,600,000 paid-up capital. The remaining shares is held by CPSB.

GPB memeterai Memorandum Persefahaman dengan Dongwha Malaysia Sdn Bhd.

Permint Plywood Sdn. Bhd. (PPSB) memeterai Perjanjian Usahasama dengan Cymao Plywood Sdn. Bhd. (CPSB) untuk memulihkan kemudahan PPSB dengan pegangan 60% daripada 1,600,000 modal berbayar GP Dynamic Venture Sdn Bhd (syarikat usaha sama). Baki saham dipegang oleh CPSB.

GPB entered into a Memorandum of Understanding with Malaysian Timber Industry Board (MITB) and Pengusaha Kayu-Kayan & Perabot Bumiputera Malaysia (PEKA).

GPB memeterai Memorandum Persefahaman dengan Lembaga Perindustrian Kayu Malaysia (MTIB) dan Pengusaha Kayu-Kayan & Perabot Bumiputera Malaysia (PEKA).

GOLDEN PHAROS BERHAD LAPORAN TAHUNAN 2015 ANNUAL REPORT04

MISSIVISI N

N

VAL ES

MISSIVISI N

N

VAL ES

MISSIVISI N

N

VAL ESMISI• Menggunakan kedudukan kami sebagai sebuah organisasi perkayuan yang bersepadu dengan mengeluarkan

produk dan perkhidmatan yang bermutu tinggi.

• Berusaha secara berterusan untuk memperbaiki produk dan perkhidmatan kami melalui penambahbaikan dalam cara pengeluaran, pembangunan sumber manusia, penyelidikan & pembangunan dan kawalan mutu yang ketat.

• Untuk memenuhi keperluan pelanggan melalui perkhidmatan yang cepat, boleh dipercayai dan cekap.

• Untuk bertanggungjawab mengekalkan persekitaran yang mesra dan selamat.

• Mempastikan kadar pulangan pelaburan yang maksimum kepada pemegang saham.

• Menyediakan peluang kemajuan kerjaya dan persekitaran yang mencabar kepada pekerja.

• Untuk mengeluarkan produk dan perkhidmatan yang berinovasi dan bermutu tinggi.

• Untuk menjadi sebuah organisasi perniagaan perkayuan Malaysia yang unggul, bersepadu dan pelbagai.

Melaksanakan misi secara bijaksana, berkesan,beretika dan dengan sebaik mungkin untuk perkembangan organisasi.

• To utilise our position as a fully integrated timber organisation to manufacture and produce high quality products and services.

• To strive for continuous improvement in our products and services through improved production method,human resource development, research & development and stringent quality assurance.

• To meet our customer requirement of prompt, reliable and efficient service.

• To be responsible in maintaining a friendly and safe environment.

• To strive towards maximising rate of return on investment to our shareholder.

• To provide our employees with a rewarding and challenging work environment.

• To deliver premium, innovative and quality product and services.

• To become a well-diversified Premier Malaysian integrated timber business organisation.

• To carry our mission diligently, effectively, ethically and to the best of our abilities in determining the growth of the organisation.

VISI

NILAI

CORPORATE GOAL AND OBJECTIVESMATLAMAT & OBJEKTIF KORPORAT


2011 2012 2013 2014 2015

RM’000 RM’000 RM’000 RM’000 RM’000

Revenue / Pendapatan 63,649 66,635 79,140 106,354 74,099

Profit /(Loss) Before Tax 869 (204) (1,855) 20,395 (3,555) Keuntungan /(Kerugian) Sebelum Cukai

Shareholders’ Equity 71,480 72,466 73,168 86,784 82,728 Ekuiti Pemegang Saham

Earnings /(Loss) per Share (sen) 0.83 1.05 (1.90) 11.03 (1.88) Pendapatan /(Kerugian) Sesaham (sen)

Net Tangible Assets per Share (RM) 0.56 0.55 0.56 0.66 0.62 Aset Ketara Bersih Sesaham (RM)

FINANCIAL HIGHLIGHTSFAKTA KEWANGAN PENTING

REVENUE (RM‘000)PENDAPATAN (RM‘000)

SHAREHOLDERS’ EQUITY (RM’000)EKUITI PEMEGANG SAHAM (RM’000)

NET TANGIBLE ASSETS PER SHARE (RM)ASET KETARA BERSIH SESAHAM (RM)

0-5,000 5,000 10,000 25,000 20,000 25,000

2011

2012

2013

2014

2015

PROFIT/(LOSS) BEFORE TAX (RM‘000)KEUNTUNGAN/(KERUGIAN) SEBELUM CUKAI (RM‘000)

20,395

0-3 3 6 9 10 12

2011

2012

2013

2014

2015

EARNINGS/(LOSS) PER SHARE (SEN)PENDAPATAN/(KERUGIAN) SESAHAM (SEN)

11.03

(3,555)

(1,855)

(204)

869

2011

74,0

99

2012 2013 2014 2015

20,000

40,000

60,000

80,000

100,000

120,000

106,

354

79,1

40

66,6

35

63,6

49

2011

82,7

28

2012 2013 2014 2015

86,7

84

73,1

68

72,4

66

71,4

80

2011

0.62

2012 2013 2014 2015

0.66

0.56

0.55

0.56

0

20,000

40,000

60,000

80,000

100,000

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.83

1.05

(1.90)

(1.88)


FINANCIAL HIGHLIGHTS - SEGMENTAL INFORMATIONFAKTA KEWANGAN PENTING - MAKLUMAT SEGMEN

2011 2012 2013 2014 2015 RM’000 RM’000 RM’000 RM’000 RM’000

HARVESTING & SAWMILLINGPEMBALAKAN & KILANG PAPAN

Revenue / Pendapatan 50,561 54,363 72,098 95,186 60,585 Profit / (Loss) before tax 2,105 2,660 1,385 22,322 (3,844)Keuntungan / (Kerugian) sebelum cukai

Assets segment / Segmen aset 103,681 112,943 119,216 121,179 109,129

MANUFACTURINGPENGILANGAN


Profit before tax 306 334 511 379 71 Keuntungan sebelum cukai


OTHERSLAIN-LAIN


(Loss) / Profit before tax (805) (623) 3,613 (1,955) 1,741 (Kerugian) / Keuntungan sebelum cukai


10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

HARVESTING & SAWMILLING (RM‘000)PEMBALAKAN & KILANG PAPAN (RM’000)

60,585

95,186

72,098

0

54,36350,561

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

MANUFACTURING (RM’000)PENGILANGAN (RM’000)

28,131

31,31730,937

0

30,40029,291

REVENUE / PENDAPATAN

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

OTHERS (RM’000)LAIN-LAIN (RM’000)

8,332

19,955

6,474

0

5,003

3,532

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015


REGION / KAWASAN 2014 2015

Malaysia 96.84% 94.09%

United Kingdom / United Kingdom 0.89% 1.78%

Other Regions / Kawasan Lain 2.27% 4.13%

100% 100%

FINANCIAL HIGHLIGHTS - SALES BY REGIONFAKTA KEWANGAN PENTING - JUALAN MENGIKUT KAWASAN

SALES BY REGIONJUALAN MENGIKUT KAWASAN

2015

2014

MalaysiaMalaysia

Other RegionsKawasan Lain 4.13%United KingdomUnited Kingdom1.78%

94.09%

MalaysiaMalaysia 96.84%

Other RegionsKawasan Lain 2.27%United KingdomUnited Kingdom0.89%


OVERVIEW OF TIMBER INDUSTRY

The wood based sector is still one of the major contributors to the Malaysian economy. Malaysian exported timber and timber based products valued at RM22.14 billion in 2015, increased by 6.5% as compared to RM20.80 billion in 2014. Out of this, value added products contributed 44.8% (RM9.92 billion) of the total products exported. Whilst primary products like sawntimber, plywood, veneer and panel products constituted 55.2% (RM12.22 billion) of the total timber export revenue. The timber industry’s contribution to the Malaysian GDP was RM7.83 billion.

CHAIRMAN’S STATEMENT

Wooden furniture continues to be the star performer, contributing RM7.29 billion (33%) of the total exports value, followed by plywood (21%) and sawn timber (14%). Furniture exports alone increased 14% in 2015 and overall the timber sector provided just over 18% from the total exports earnings in the commodity sector.

Among the issues facing the timber industry are dwindling local raw material supply, depleting natural resources, more stringent environmental safeguards being imposed and weather abnormalities, which have become commonplace due to global warming. The policy on the ban of exports of logs implemented by several timber producing countries would affect the supply of raw materials for the Malaysian timber industry.

In particular, the timber industry in Peninsular Malaysia is facing a shortage of raw material supply. An increasing number of the natural forests have being set aside for conservation and protection in accordance with the National Timber Industry Policy (“NATIP”) 2009 to 2020. The reduction in the annual coupe area from 272,870 ha (8th Malaysia Plan 2001-2005) to 266,955 ha (9th Malaysia Plan 2006-2010) was one of the main factors for the shortage of raw material supply.

Dear shareholders,

On behalf of the Board of Directors, I am pleased to present the Annual Report and the Audited Financial Statements of Golden Pharos Berhad (“GPB”) and its group of companies (“the Group”) for the financial year ended 31 December 2015.

YBHG DATO’ SRI HAJI ABDUL RAHMAN BIN BAKARChairman / Pengerusi


To ensure that there is adequate supply of raw materials, among steps taken by the Malaysian Timber Industry Board (“MTIB’) include encouraging more private sector participation in forest plantations, utilising marginal land for tree planting, expediting the issuance of permits to extract resources, encouraging utilisation of alternative raw materials and the use of biomass and non-wood forest products (rattan and bamboo) as a supplementary resource.

NATIP has set an export target of RM53 billion by 2020 for timber and timber based products. The target requires an annual export growth of 6.4% per annum with 60% of exports to be derived from value-added products. The current share of value-added products to timber products export is 44.8%.


This is a very challenging export figure to be achieved as the 2015 export for timber and timber based products was RM22.14 billion. Among potential sources of growth for the industry are new or alternative raw materials such as biomass, fibre, rattan and bamboo; new markets and expansion of markets; as well as design, innovation and technology

According to the International Tropical Timber Organization (“ITTO”), the total value of European Union (“EU”) imports of wood products was €17.20 billion in 2015, 12% more than in 2014. This followed an increase of 10% to €15.30 billion in 2014.

In 2015, EU import value was at the highest level since 2008 just before the global financial crises. Total imports of wood products from tropical countries increased 15% from €3.28 billion in 2014 to €3.78 billion in 2015. This followed a 6% increase between 2013 and 2014.

The recovery in EU imports of tropical woods in 2014 and 2015 was particularly pronounced for furniture and sawn wood with minor gains for other product groups. The timber industry is highly dependent on foreign labour as the locals are not keen to serve the industry. The Government is working towards reducing the influx of foreign workers by providing more opportunities to skilled local youths, in order to further develop the timber industry.

With emphasis on producing value-added timber products, skills in various fields of production are very much required. The Government encourages more local skilled workers to serve the industry across the sectors and aims to achieve the ratio of local to foreign works of 4:1 by 2020.

The international market is moving towards sustainability and environment-friendly timber and timber products with increased request for certified and green materials from the environmental conscious countries which are aiming for legal, greener and more environmental friendly products.

As countermeasure, the Malaysian Government has supported the uptake of forest certification, especially in Peninsular Malaysia where 8 states have achieved Malaysian Timber Certification Scheme (“MTCS”) certification – a national certification recognised under the Programme for the Endorsement of Forest Certification (“PEFC”).

Overall the outlook for the timber industry remains positive based on the improving housing activities, consumer sentiment and expected improving demand from developed nations in line with the improving global economy.

FINANCIAL PERFORMANCE

The Group recorded a lower revenue of RM74.10 million for the financial year ended 31 December 2015, a decrease of RM32.25 million or 30% from RM106.35 million in 2014. In line with the reduction in revenue, the Group registered a loss before tax of RM3.55 million for the year under review, as compared to the profit before tax of RM20.39 million recorded in 2014.

The adverse result was mainly contributed by the harvesting, sawmilling and kiln-drying segment.

SEGMENTAL REVIEW

The Group’s value chain comprises upstream log harvesting, midstream sawmilling, downstream processing and manufacturing of wood-based products and processing and distribution of glass products.

The harvesting, sawmilling and kiln drying operations recorded revenue of RM42.28 million during the year under review, RM32.25 million or 43% lower than RM74.83 million recorded in the previous corresponding financial year. The decrease in revenue was contributed by the reduction in logs production due to the annual allowable cut (harvesting) quota reduction by the state forestry authority in line with the available quota for the final year of the 10th Malaysian Plan.

In 2015, the Group recorded a lower revenue of RM3.30 million as compared to RM27.29 million in 2014 from the Group’s concession areas which had been allocated for mining purposes.

Accordingly, this segment registered a loss before tax of RM3.07 million as compared to profit before tax of RM23.87 million in the preceding year.


The manufacturing activities focus on architectural glass processing. Revenue decreased to RM28.13 million from RM31.32 million in 2014. This segment registered a lower profit before tax of RM1.04 million, a reduction of 23% as compared to RM1.35 million in the previous financial year. This was contributed by the slowdown in the demand for the local projects which involved medium and high end residential buildings.

REVIEW OF OPERATIONS

Group Products

The Group’s products comprised of sawntimber, wood-based manufactured products, architectural glass and fabricated wooden doors. These are sold in both the domestic and export markets.

In the domestic markets, the Group’s products have been selected for installation in various prominent buildings in Malaysia including the Crystal Mosque at Taman Tamadun Islam Terengganu (Terengganu Islamic Heritage Park), Terengganu Indoor Stadium, Kuala Lumpur Convention Centre and Kuala Lumpur International Airport.

The Group’s glass products are highly regarded for its quality and conforms to the export market standards which include the American National Standard (ANSI:Z97.1-1984) and British Standards (BS 6206.1981).

The environmental management system of a subsidiary, Golden Pharos Glass Sdn Bhd (“GP Glass”), for the manufacture of tempered, double glazed, laminated and ceramic printed safety glass has been assessed and registered against the provisions of ISO 14001: 2004 International Standard. In addition, GP Glass has also been awarded the ISO 9001-2008 for the quality management system of its processing activity.

Our timber management subsidiary has been awarded the Forest Stewardship Council (“FSCTM”) endorsed certification on 21 April 2008, which was applicable for five years, by Scientific Certification Systems (“SCS”), a leader and pioneer in third-party auditing and certification of forest management operations around the world, using the SCS-FSC Interim Standard for Forest Management Certification in Malaysia Version 5.0 2014 for well-managed forests.

This certification verifies that the subsidiary’s forests of 108,900 hectares are managed according to the rigorous international standards of the FSCTM under a selective cutting approach that maintains continuous forest cover and species diversity.

The certification has been recertified for another five years until 20 October 2018. The subsidiary’s concession area is the largest forest in Peninsular Malaysia to have received FSCTM certification and only the second natural forest in Malaysia to achieve this distinction.

In addition, another subsidiary has successfully obtained the FSCTM endorsed certification for its 20,243 hectares Cherul Forest Concession on 10 December 2012 as certified by SCS Global Services. The certification is valid for five years until 9 December 2017.

With the FSCTM certification, the Group will be able to access to an increasing number of markets and customers that demand environmental friendly certified products domestically and abroad.

In addition, the Group’s two sawmilling subsidiaries are Chain-of-Custody (“CoC”) certified by third party certifiers accredited by the FSCTM since July 2008. This certification, endorses that the wood used in the sawmills come from well-managed forests, independently certified in accordance with the criteria and principles set by the FSCTM.

This augurs well for the subsidiaries as they are well positioned to market their sawn timber and other wood based products in markets which insist on wood products to be sourced from sustainable and well managed forests.

Human Resources

The various operations support a total workforce of 529 (2014: 582) comprising 12% at management and professional level, 47% support group and 41% at mill floor operations, where majority are Malaysians.


11GOLDEN PHAROS BERHAD LAPORAN TAHUNAN 2015 ANNUAL REPORT

Recognising that the employees and their skill sets built over the years are our most valuable assets, the Group will continue to give top priority to human resource development by providing its employees with training programmess to develop good business acumen and a culture for quality. The Group will also endeavour to provide clear and tangible directions and a challenging and rewarding working environment to ensure a motivated and loyal workforce.

During the year under review, various continuous training programmes were conducted aimed at further improving the skill sets and innovativeness of the Group’s employees. This has proven beneficial both to the staff and the Group.

Corporate Social Responsibility

The Group has adopted the Bursa Securities CSR Framework, which is in tandem with the Group’s nature of business, resources and inclinations for its CSR activities. The Group’s CSR initiates are focused on four main areas namely environment, community, workplace and marketplace.

The Group regards corporate social responsibility as an important part of its business. Hence, the Group has been participating in various activities organised by the local community within the vicinity of the Group’s operations. As a responsible corporate citizen, the Group contributes towards environmental preservation via sustainable forest management, provides ample opportunities to its employees and produces environmentally friendly products.

The Group believes that the local community plays an important role in supporting the business activities of the Group and has sought to give back to the community where it operates through initiatives in education and support of the underprivileged.

During the year under review, the Group continues to support the English Tuition Classes for the primary school students in the proximate area of a subsidiary’s operations. This educational initiative was carried out with the intention of assisting the students in the rural areas to improve their command of English. The Group also continues to sponsor tuition classes for the employees’ children who will be sitting for the UPSR, PT3 and SPM examinations, which are conducted at a subsidiary’s factory.


Corporate Governance

The Group is committed to observing and practising the highest standards of corporate governance. The Board views good corporate governance as a means in managing the business and affairs of the Group with integrity and professionalism with the objective of safeguarding the shareholders’ investments and enhancing shareholders’ value. Hence, the Board fully supports the recommendation of the Malaysian Code of Corporate Governance. Additionally, the organisational structure is being continuously enhanced to meet the demands of its various operations.

Prospects

According to the Bank Negara report, Malaysian economy grew by 5.0% in 2015 (2014: 6.0%), supported by the continued expansion of domestic demand (2015: 5.1%, 2014: 5.9%). Private consumption continued to expand, albeit at a more moderate pace as households adjusted their spending to the higher cost of living arising from the implementation of Goods and Services Tax (“GST”), adjustments in administrative prices and the depreciation in the ringgit. Nevertheless, households received some support from the higher cash transfers under the Bantuan Rakyat 1Malaysia (BR1M) scheme, the reduction in individual income tax rates for the 2015 assessment year and savings derived from lower domestic fuel prices during the year. Household spending was also supported by continued income growth and stable labour market conditions. Public consumption recorded a sustained growth of 4.3% in 2015 (2014: 4.4%), reflecting the continued efforts by the Government to provide support to growth, while remaining committed to the steady reduction in the fiscal deficit.

For the year 2015 as a whole, the ringgit depreciated by 18.6% against the US dollar. Year to date, the ringgit has strengthened against the US dollar from the weak level of 4.46 to the dollar in September last year and went below the psychological level of 4.0 to a dollar.

The international economic and financial landscape is likely to remain challenging in 2016 and will be a key factor that will influence the prospects of the Malaysian economy. Depending on their nature, global developments can pose both upside and downside risks to the Malaysian economic growth. The Malaysian economy is expected to grow by 4.0 – 4.5% in 2016.

IMF in its latest World Economic Outlook (WEO) forecasted that Global growth continues, but at a sluggish pace of 3.2% in 2016 and 3.5% in 2017, that leaves the world economy more exposed to risks. Growth in advanced economies is projected to remain modest at about 2%.

The recovery is hampered by weak demand, partly held down by unresolved crisis legacies, as well as unfavorable demographics and low productivity growth. In the United States, expected growth this year is flat at 2.4%, with a modest uptick in 2017.

Domestic demand will be supported by improving government finances and a stronger housing market that help offset the drag on net exports coming from a strong dollar and weaker manufacturing.

In the Euro area, low investment, high unemployment, and weak balance sheets weigh on growth, which will remain modest at 1.5% this year and 1.6% next year. In Japan, both growth and inflation are weaker than expected, reflecting in particular a sharp fall in private consumption. Growth is projected to remain at 0.5% in 2016 before turning slightly negative to -0.1% in 2017, as the scheduled increase in the consumption tax rate goes into effect.

While emerging markets and developing economies will still account for the lion’s share of world growth in 2016, prospects across countries remain uneven and generally weaker than over the past two decades with slowing growth in oil exporters, with oil price decline, and still weak outlook for non-oil commodity exporters, including in Latin America.

Deep recessions in Brazil and Russia, and weak growth in some Latin America and Middle East countries, particularly those hit hard by the oil price decline and intensifying conflicts and security risks will influence the economic growth.

The WEO projects the growth rate to increase only modestly relative to 2015 to, 4.1% this year and 4.6% next year. On the positive side, India remains a bright spot - with strong growth and rising real incomes. The ASEAN 5 economies - Indonesia, Malaysia, Philippines, Thailand, and Vietnam - are also performing well. And Mexico, Central America, and the Caribbean are beneficiaries of the U.S. recovery and, in most cases, lower oil prices.


Oil prices have declined markedly since September 2015, reflecting expectations of sustained increases in production by Organization of the Petroleum Exporting Countries (“OPEC”) members amid continued global oil production in excess of oil consumption. Futures markets are currently suggesting only modest increases in prices in 2016 and 2017. Prices of other commodities, especially metals, have fallen as well.

The Group continues to supply suitable materials for the various housing, infrastructures and development projects to the Terengganu State Agencies. This will boost the revenue for the Group’s glass manufacturing subsidiary and wood-based products.

The Group’s upstream and midstream operations will continue to face challenges such as reduction in annual coupe, unfavourable weather conditions, ability to achieve optimum extraction yield per hectare due to topography limitations and increasing packaging, transportation and other operational costs.

The Group will endeavour to undertake all necessary measures to mitigate the adverse effects of the issues through proper planning and close rapport with the contractors and the relevant authorities.

In 2015, the Group’s harvesting quota was reduced and allocated to other small sawmillers as part of the overall reduction of harvesting quota for the final year of the 10th Malaysian Plan. The Group will be reallocated the normal harvesting quota in 2016 (commencement of 11th Malaysian Plan) onwards.

For the manufacturing segment, the price volatility and availability of raw materials continue to pose challenges to the Group. As countermeasure, the Group will continue to look for alternative sources of raw materials supply to ensure reliable supply at competitive prices is available. Competition remains very stiff especially in the local market as customers demand price cutting and high quality products.

The Board will endeavour to improve the Group’s performance by carrying out various initiatives and countermeasures that will benefit all the stakeholders in the short, medium and long terms. The Group continues to look into viable businesses that will ensure sustainable positive performance, growth and competitive advantage in the coming years.

GPB has entered into a Memorandum of Understanding with Dongwha Malaysia Sdn Bhd on 25 October 2015 to lay out the ground work for future collaboration between both companies to utilise the resources of each party to create a successful business relationship that will benefit both parties.

Permint Plywood Sdn. Bhd. (“PPSB”), a wholly-owned subsidiary of Permint Timber Corporation Sdn Bhd, which in turn is a wholly-owned subsidiary of GPB had on 22 December 2015 entered into a Joint Venture Agreement (“JVA”) with Cymao Plywood Sdn Bhd (“CPSB”) to revive PPSB’s facility to generate profit, initiate re-forestation and establish industrial forest plantation for sustainability of feedstocks and continuously explore and implement value added operations to maximise the natural resources of the State of Terengganu.

PPSB holds 60% of GP Dynamic Venture Sdn Bhd’s (“GPDV” or the JV company) 1,600,000 issued and fully paid-up capital.

The remaining balance of 40% is held by CPSB. GPDV expects its factory to commence operation for its timber products in the second half of 2016.

Between 2008 and 2014 the plywood market increased with an annual growth of 10.9%. The global demand for plywood is forecasted by a leading market research company to expand by 2.8% per annum between 2015 and 2019.

This augurs well for the JV company and the Group as a whole.

DIVIDENDS

The Board of Directors is not recommending any dividends for the financial year ended 31 December 2015.

ACKNOWLEDGEMENT

On behalf of the Board, I would like to express sincere appreciation to the management and all employees of the Group for their dedication, commitment and invaluable contributions for the past financial year. I would also like to thank my fellow Board Members for their continued guidance and counsel in the challenging economic environment.

One of our Board Members, En. Azaki bin Che Endut passed away on 31 October 2015. On behalf of the Board of Directors, Management and employees of the Group we would like to extend our heartfelt condolences to his family members. His passing is a great loss to the Group.

Our deepest appreciation is also extended to the shareholders, customers, suppliers, bankers and business associates. Last but not least, my most sincere appreciation to the State Government of Terengganu and the various regulatory authorities for the continuous trust, invaluable guidance and assistance to the Group.

YBHG DATO’ SRI HAJI ABDUL RAHMAN BIN BAKAR

Chairman



PENYATA PENGERUSI

GAMBARAN KESELURUHAN INDUSTRI PERKAYUAN

Sektor berasaskan kayu masih merupakan salah satu penyumbang utama kepada ekonomi Malaysia. Eksport kayu dan produk berasaskan kayu Malaysia bernilai RM22.14 bilion pada tahun 2015, meningkat sebanyak 6.5% berbanding dengan RM20.80 bilion pada tahun 2014. Daripada jumlah ini, produk yang ditambah nilai menyumbang 44.8% (RM9.92 bilion) daripada jumlah produk yang dieksport. Manakala produk asas seperti kayu gergaji, papan lapis, venir dan produk panel menyumbang 55.2% (RM12.22 bilion) daripada jumlah pendapatan eksport perkayuan. Sumbangan industri perkayuan kepada KDNK Malaysia adalah RM7.83 bilion.

Perabot kayu terus cemerlang, menyumbang RM7.29 bilion (33%) daripada jumlah nilai eksport, diikuti oleh papan lapis (21%) dan kayu bergergaji (14%). Eksport perabot sahaja meningkat 14% pada tahun 2015 dan keseluruhan sektor perkayuan menyumbang lebih 18% daripada jumlah pendapatan eksport dalam sektor komoditi.

Antara isu yang dihadapi oleh industri perkayuan ialah bekalan bahan mentah tempatan dan sumber semula jadi yang semakin berkurangan, perlindungan alam sekitar yang lebih ketat yang dikenakan dan cuaca yang tidak normal yang menjadi kebiasaan akibat pemanasan global. Dasar mengenai pengharaman eksport kayu balak yang dilaksanakan oleh beberapa negara pengeluar kayu akan menjejaskan bekalan bahan mentah bagi industri perkayuan Malaysia.

Industri perkayuan di Semenanjung Malaysia sedang menghadapi kekurangan bekalan bahan mentah. Semakin banyak hutan semula jadi yang diperuntukkan untuk pemuliharaan dan perlindungan selaras dengan Dasar Perindustrian Kayu Negara (“NATIP”) 2009 hingga 2020.

Kepada pemegang-pemegang saham yang disanjungi,

Bagi pihak Lembaga Pengarah, saya dengan sukacitanya mengemukakan Laporan Tahunan dan Penyata Kewangan Golden Pharos Berhad (“GPB”) dan kumpulan syarikat-syarikat (“Kumpulan”) yang telah diaudit bagi tahun kewangan berakhir 31 Disember 2015.

Pengurangan kawasan kup tahunan daripada 272.870 ha (Rancangan Malaysia ke-8 2001-2005) kepada 266.955 ha (Rancangan Malaysia Ke-9 2006-2010) adalah salah satu faktor utama bagi masalah kekurangan bekalan bahan mentah.

Bagi memastikan terdapat bekalan bahan-bahan mentah yang mencukupi, antara langkah-langkah yang diambil oleh Lembaga Perindustrian Kayu Malaysia (“MTIB”) ialah menggalakkan penyertaan sektor swasta dalam perladangan hutan, menggunakan tanah pinggiran untuk penanaman pokok, mempercepatkan pengeluaran permit untuk mengeluarkan sumber, menggalakkan penggunaan bahan-bahan mentah alternatif dan penggunaan biomas dan produk hutan bukan kayu (rotan dan buluh) sebagai sumber tambahan.

NATIP menetapkan sasaran ekspot berjumlah RM53 bilion menjelang tahun 2020 bagi kayu dan barangan berasaskan kayu. Sasaran ini memerlukan pertumbuhan ekspot tahunan sebanyak 6.4% setiap tahun dengan 60% daripada ekspot akan berpunca daripada produk yang ditambah nilai. Sekarang ini nisbah produk bernilai tambah ke atas eksport barangan kayu adalah 44.8%. Ini adalah angka eksport yang sangat mencabar untuk dicapai kerana eksport 2014 untuk kayu dan produk berasaskan kayu ialah RM22.14 bilion. Sumber lain yang berpotensi bagi pertumbuhan industri ini adalah termasuk bahan mentah baru atau alternatif seperti biojisim, serat, rotan dan buluh; pasaran baru dan pengembangan pasaran, serta reka bentuk, inovasi dan teknologi.

Menurut International Tropical Timber Organization (“ITTO”), jumlah nilai import produk kayu Kesatuan Eropah ( “EU”) adalah €17.20 bilion pada 2015, 12% lebih tinggi daripada tahun 2014.

Ini adalah lanjutan peningkatan sebanyak 10% kepada €15.30 bilion pada tahun 2014. Pada tahun 2015, nilai import EU berada pada tahap tertinggi sejak 2008 sebelum krisis kewangan global. Jumlah import produk kayu dari negara-negara tropika meningkat 15% daripada €3.28 bilion pada 2014 kepada €3.78 bilion pada tahun 2015. Ini adalah turutan peningkatan sebanyak 6% di antara 2013 dan 2014. Pemulihan dalam import kayu tropika EU pada tahun 2014 dan 2015, ketara terutamanya bagi perabot dan kayu bergergaji dengan sedikit peningkatan bagi kumpulan produk lain.

Industri perkayuan amat bergantung kepada pekerja asing dengan penduduk tempatan tidak berminat untuk berkerja dalam industri ini. Kerajaan sedang berusaha ke arah mengurangkan kemasukan pekerja asing dengan memberi lebih peluang kepada belia mahir tempatan, dalam usaha untuk membangunkan lagi industri perkayuan.

Dengan penekanan kepada menghasilkan produk kayu bernilai tambah, kemahiran dalam pelbagai bidang pengeluaran amat diperlukan. Kerajaan menggalakkan lebih ramai pekerja mahir tempatan untuk berkhidmat dalam seluruh sektor industri dan berharap untuk mencapai nisbah 4:1 bagi pekerja tempatan dan pekerja asing pada tahun 2020.

Pasaran antarabangsa sedang bergerak ke arah produk kayu yang mampan dan mesra alam dengan peningkatan permintaan untuk bahan-bahan yang disahkan melalui pensijilan dan mesra alam dari negara-negara yang mementingkan alam sekitar, yang mensasarkan produk yang sah dan lebih mesra alam sekitar.

Sebagai langkah balas, Kerajaan Malaysia menyokong langkah pensijilan hutan, terutamanya di Semenanjung Malaysia di mana 8 negeri telah mencapai pensijilan Skim Pensijilan Kayu Malaysia (Malaysian Timber Certification Scheme - “MCS”) - satu persijilan kebangsaan yang diiktiraf di bawah Program untuk Pengesahan Pensijilan Hutan (Programme for the Endorsement of Forest Certification - “PEFC“).

Secara keseluruhannya prospek bagi industri kayu kekal positif berdasarkan aktiviti perumahan dan sentimen pengguna yang bertambah baik dan jangkaan peningkatan permintaan daripada negara-negara maju sejajar dengan ekonomi global yang bertambah pulih.

PRESTASI KEWANGAN

Kumpulan mencatatkan pendapatan yang lebih rendah sebanyak RM74.10 juta bagi tahun kewangan berakhir 31 Disember 2015, penurunan sebanyak RM32.25 juta atau 30% daripada RM106.35 juta pada tahun 2014. Selaras dengan pengurangan dalam pendapatan, Kumpulan mencatatkan kerugian sebelum cukai sebanyak RM3.55 juta bagi tahun semasa, berbanding dengan keuntungan sebelum cukai sebanyak RM20.39 juta yang dicatatkan pada 2014.

Keputusan yang tidak memberangsangkan ini terutamanya disumbangkan oleh segmen pembalakan, kilang papan dan pengeringan tanur.

ULASAN SEGMEN

Rantaian nilai Kumpulan terdiri daripada kegiatan huluan pembalakan, aliran pertengahan kilang papan dan kegiatan hiliran pemprosesan serta perkilangan barangan berasaskan kayu dan pengedaran produk kaca.

Operasi pembalakan, kilang papan dan pengeringan tanur mencatatkan pendapatan sebanyak RM42.28 juta pada tahun kewangan ini, RM32.25 juta atau 43% lebih rendah daripada RM74.83 juta pada tahun kewangan yang sama sebelumnya.

Penurunan dalam pendapatan disumbangkan oleh penurunan dalam pengeluaran balak kerana pengurangan dalam kuota tebangan tahunan yang dibenarkan oleh pihak berkuasa perhutanan negeri selaras dengan kuota yang ada untuk tahun terakhir Rancangan Malaysia ke-10. Pada tahun 2015, Kumpulan mencatatkan pendapatan yang lebih rendah sebanyak RM3.30 juta berbanding RM27.29 juta pada tahun 2014 daripada kawasan konsesi Kumpulan yang telah diperuntukkan untuk tujuan perlombongan.

Seiring dengan itu, segmen ini mencatatkan kerugian sebelum cukai sebanyak RM3.07 juta berbanding keuntungan sebelum cukai sebanyak RM23.87 juta pada tahun sebelumnya.

Aktiviti pengilangan memberi tumpuan kepada pemprosesan kaca seni binaan. Pendapatan merosot kepada RM28.13 juta daripada RM31.32 juta pada tahun 2014. Bahagian ini mencatatkan keuntungan sebelum cukai sebanyak RM1.04 juta, pengurangan sebanyak 23% berbanding RM1.35 juta pada tahun kewangan sebelumnya. Ini disumbangkan oleh kelembapan dalam permintaan untuk projek tempatan yang melibatkan bangunan kediaman bernilai sederhana dan tinggi.

ULASAN OPERASI

Barangan Kumpulan

Barangan Kumpulan terdiri daripada papan gergaji, barangan buatan berasaskan kayu, kaca seni bina dan pintu kayu buatan. Barangan ini dijual di kedua-dua pasaran tempatan dan eksport.

Dalam pasaran tempatan, barangan Kumpulan telah dipilih untuk dipasang di pelbagai bangunan terkemuka di Malaysia termasuk Masjid Kristal di Taman Tamadun Islam Terengganu, Stadium Tertutup Terengganu, Pusat Konvensyen Kuala Lumpur dan Lapangan Terbang Antabangsa Kuala Lumpur.

Barangan kaca kumpulan adalah dipandang tinggi kerana kualitinya serta mematuhi piawaian pasaran eksport termasuk American National Standard Institute (ANSI:Z97.1-1984) dan British Standards (BS 6206.1981). Pengurusan sistem alam sekitar sebuah subsidiari, Golden Pharos Glass Sdn Bhd (“GP Glass”), untuk pengeluaran kaca keselamatan ‘tempered’, dwi lapis (‘double glazed’), bersalut (‘laminated’) dan seramik dicetak telah dinilai dan didaftarkan menurut peruntukan ISO 14001: 2004.

PENYATA PENGERUSI

Di samping itu, GP Glass juga telah dianugerahkan ISO 9001-2008 untuk sistem pengurusan kualiti aktiviti pemprosesan. Subsidiari kami yang menguruskan pembalakan telah dianugerahkan pensijilan yang diiktiraf oleh Forest Stewardship Council (“FSCTM”) pada 21 April 2008, yang boleh digunapakai untuk tempoh lima tahun, oleh Scientific Certification System (“SCS”), peneraju dan perintis dalam pengauditan pihak ketiga dan pensijilan operasi pengurusan hutan di seluruh dunia, menggunakan SCS-FSC Piawaian Interim untuk Pensijilan Pengurusan Hutan di Malaysia Versi 5.0 2014 bagi hutan yang diuruskan dengan baik. Pensijilan ini mengesahkan bahawa hutan subsidiari ini yang seluas 108,900 hektar adalah diurus menurut piawaian antarabangsa FSCTM yang ketat di bawah pendekatan tebangan memilih yang mengekalkan litupan hutan dan kepelbagaian spesies.

Pensijilan ini telah disambung selama lima tahun lagi hingga 20 Oktober 2018. Kawasan konsesi subsidiari ini adalah hutan terbesar di Semenanjung Malaysia yang menerima pensijilan FSCTM, dan hanya hutan asli kedua di Malaysia yang menerima penghormatan ini.

Di samping itu, sebuah lagi subsidiari telah berjaya memperolehi pensijilan yang diiktiraf oleh FSCTM bagi Konsesi Hutan Cherul seluas 20,243 hektar pada 10 Disember 2012 seperti yang disahkan oleh SCS Global Services. Pensijilan ini adalah sah selama lima tahun sehingga 9 Disember 2017.

Dengan pensijilan FSCTM ini, Kumpulan akan dapat memasuki jumlah pasaran dan pelanggan yang semakin meningkat yang memerlukan produk yang disahkan mesra alam di dalam dan luar negara.

Sebagai tambahan, dua subsidiari perkilangan papan Kumpulan telah memperolehi pensijilan ‘Chain-of-Custody’ (“CoC”) daripada pihak ketiga yang ditauliahkan oleh FSCTM mulai bulan Julai 2008. Pensijilan ini mengesahkan kayu yang digunakan di kilang papan datang dari hutan yang diuruskan dengan baik, disahkan secara bebas menurut kriteria dan prinsip yang ditetapkan oleh FSCTM.

Ini bermakna subsidiari-subsidiari ini mempunyai kelebihan dalam memasarkan kayu gergaji dan lain-lain barangan berasaskan kayu dalam pasaran yang menekankan produk kayu adalah diperolehi dari hutan yang mampan dan diuruskan dengan baik.


PENYATA PENGERUSI

Sumber Manusia

Pelbagai operasi menyokong tenaga kerja berjumlah 529 (2014: 582) orang yang terdiri daripada 12% peringkat pengurusan dan profesional, 47% kumpulan sokongan serta 41% operasi kilang, dengan majoritinya adalah warganegara Malaysia.

Mengiktiraf bahawa pekerja dan kemahiran mereka yang dibentuk selama ini adalah harta yang paling bernilai, Kumpulan akan terus memberi keutamaan kepada pembangunan sumber manusia dengan menyediakan rancangan latihan kepada pekerja untuk membentuk kepintaran perniagaan yang baik dan budaya kualiti. Kumpulan juga akan berusaha menyediakan halatuju yang jelas dan nyata serta suasana pekerjaan yang mencabar dan memuaskan bagi mempastikan tenaga kerja yang bermotivasi dan setia.

Dalam tahun semasa, pelbagai rancangan latihan yang berterusan telah diadakan bertujuan untuk meningkatkan lagi kemahiran dan inovasi para pekerja Kumpulan. Ini terbukti bermanfaat kepada kakitangan dan Kumpulan.

Tanggungjawab Sosial Korporat

Kumpulan telah menggunapakai Kerangka CSR Bursa Securities, yang didapati selaras dengan jenis perniagaan Kumpulan, sumber-sumber dan kecenderungan bagi kegiatan CSR. Aktiviti Kumpulan tertumpu kepada empat perkara utama iaitu alam sekitar, masyarakat, tempat kerja dan pasaran.

Kumpulan menganggap tanggungjawab sosial korporat sebagai unsur penting perniagaannya. Justeru, Kumpulan telah mengambil bahagian dalam pelbagai kegiatan yang dianjurkan oleh masyarakat setempat di persekitaran operasi Kumpulan. Sebagai warga korporat yang bertanggungjawab, Kumpulan telah menyumbang ke arah pemuliharaan alam sekitar melalui pengurusan hutan lestari, memberikan peluang yang luas kepada pekerja-pekerjanya serta menghasilkan produk yang mesra alam.

Kumpulan percaya bahawa masyarakat setempat memainkan peranan penting dalam menyokong aktiviti perniagaan Kumpulan dan telah berusaha untuk menyumbang kepada komuniti di mana ianya beroperasi melalui inisiatif pendidikan dan bantuan kepada mereka yang kurang bernasib baik.

Dalam tahun semasa, Kumpulan terus menyokong Kelas Tuisyen Bahasa Inggeris bagi pelajar-pelajar sekolah rendah di kawasan berhampiran dengan operasi sebuah subsidiari.

Inisiatif pendidikan ini dilaksanakan bertujuan membantu pelajar-pelajar di kawasan pedalaman meningkatkan penguasaan Bahasa Inggeris mereka.

Kumpulan juga terus menaja kelas tuisyen bagi anak-anak pekerja yang akan menduduki peperiksaan UPSR, PT3 dan SPM, yang dikendalikan di kilang sebuah subsidiari.

Tadbir Urus Korporat

Kumpulan beriltizam untuk mematuhi dan mengamalkan tahap tertinggi tadbir urus korporat. Lembaga menganggap tadbir urus korporat yang baik sebagai kaedah untuk menguruskan perniagaan dan urusan Kumpulan dengan utuh dan profesional bermatlamat untuk melindungi pelaburan dan memperkukuhkan nilai pemegang saham. Justeru, Lembaga Pengarah menyokong sepenuhnya cadangan Kod Tadbir Urus Korporat Malaysia. Sebagai tambahan, struktur organisasi sentiasa ditambahbaik demi memenuhi tuntutan pelbagai operasinya.

Prospek

Menurut laporan Bank Negara, Ekonomi Malaysia berkembang sebanyak 5.0% pada tahun 2015 (2014: 6.0%), disokong oleh pengembangan berterusan permintaan domestik (2015: 5.1%, 2014: 5.9%).

Penggunaan swasta terus berkembang, walaupun pada kadar yang lebih sederhana memandangkan isi rumah menyelaraskan perbelanjaan mereka untuk kos sara hidup yang lebih tinggi akibat pelaksanaan Cukai Barangan dan Perkhidmatan (“GST”), pelarasan harga pentadbiran, dan susut nilai ringgit.

Walaubagaimanapun, isi rumah menerima sedikit sokongan daripada pemberian wang tunai yang lebih tinggi di bawah skim Bantuan Rakyat 1Malaysia (BR1M), pengurangan kadar cukai pendapatan individu bagi tahun taksiran 2015 dan simpanan yang diperolehi daripada harga minyak domestik yang lebih rendah pada tahun ini.

Perbelanjaan isi rumah juga disokong oleh pertumbuhan pendapatan yang berterusan dan keadaan pasaran kerja yang stabil. Penggunaan awam mencatat pertumbuhan mampan sebanyak 4.3% pada tahun 2015 (2014: 4.4%), mencerminkan usaha berterusan oleh Kerajaan untuk menyokong pertumbuhan, di samping komited untuk terus mengurangkan defisit fiskal.

Bagi tahun 2015 secara keseluruhannya, ringgit menyusut nilai sebanyak 18.6% berbanding dolar AS. Sehingga ini, ringgit mengukuh berbanding dolar AS daripada tahap yang lemah 4.46 kepada satu dolar pada September tahun lepas ke bawah paras psikologi 4.0 untuk satu dolar.

Landskap ekonomi dan kewangan antarabangsa dijangka kekal mencabar pada 2016 dan akan menjadi faktor utama yang akan mempengaruhi prospek ekonomi Malaysia.

Bergantung kepada keadaan, perkembangan global boleh memberikan risiko positifd dan negatif kepada pertumbuhan ekonomi Malaysia. Ekonomi Malaysia dijangka berkembang sebanyak 4.0 - 4.5% pada 2016.

IMF dalam World Economic Outlook (“WEO”) terbarunya meramalkan bahawa pertumbuhan global berterusan, tetapi pada kadar yang lebih perlahan sebanyak 3.2% pada 2016 dan 3.5% pada tahun 2017, yang menyebabkan ekonomi dunia lebih terdedah kepada risiko.

Ekonomi negara maju dijangka kekal sederhana pada kira-kira 2%. Pemulihan ini dihalang oleh permintaan yang lemah, sebahagiannya disebabkan oleh kesan krisis terdahulu yang tidak dapat diselesaikan, serta demografi yang tidak menguntungkan dan pertumbuhan produktiviti yang rendah.

Di Amerika Syarikat, pertumbuhan tahun ini dijangka adalah pada kadar mendatar 2.4%, dengan peningkatan sederhana pada tahun 2017. Permintaan dalam negeri akan disokong dengan peningkatan kewangan kerajaan dan pasaran perumahan yang lebih kukuh yang membantu mengimbangi hambatan pada eksport bersih yang datang dari dolar yang kukuh dan sektor pengilangan yang lemah.

Di kawasan Euro, pelaburan rendah, pengangguran yang tinggi, dan lembaran imbangan yang lemah memberi kesan kepada pertumbuhan, yang akan kekal sederhana pada 1.5% pada tahun ini dan 1.6% pada tahun depan. Di Jepun, pertumbuhan dan inflasi lebih lemah daripada yang dijangkakan, mencerminkan terutamanya kejatuhan mendadak dalam penggunaan swasta.

Pertumbuhan dijangka kekal pada 0.5% pada 2016 sebelum beralih sedikit negatif kepada -0.1% pada tahun 2017, apabila peningkatan dalam kadar cukai penggunaan sebagaimana yang dijadualkan akan berkuatkuasa.



Walaupun pasaran baru muncul dan negara-negara membangun masih mencakupi sebahagian besar daripada pertumbuhan ekonomi dunia pada 2016, prospek di seluruh negara kekal tidak sekata dan secara amnya lebih lemah daripada lebih dua dekad yang lalu dengan pertumbuhan di negara pengeksport minyak perlahan, dengan penurunan harga minyak, dan prospek yang masih lemah bagi negara pengeksport bukan komoditi minyak, termasuk di Amerika Latin. Kemelesetan yang mendalam di Brazil dan Rusia, dan pertumbuhan yang lemah di beberapa negara Amerika Latin dan Timur Tengah, terutamanya negara yang terjejas teruk oleh kemerosotan harga minyak dan peningkatan konflik dan risiko keselamatan akan mempengaruhi pertumbuhan ekonomi.

The WEO meramalkan kadar pertumbuhan meningkat sederhana berbanding dengan 2015 kepada, 4.1% pada tahun ini dan 4.6% pada tahun depan. Dari sudut positif, India kekal memberangsangkan - dengan pertumbuhan yang kukuh dan peningkatan dalam pendapatan sebenar. Ekonomi ASEAN 5 - Indonesia, Malaysia, Filipina, Thailand, dan Vietnam - juga menunjukkan prestasi yang baik. Dan Mexico, Amerika Tengah dan Caribbean mendapat manfaat daripada pemulihan AS dan, dalam kebanyakan kes, harga minyak yang lebih rendah.

Harga minyak telah menurun dengan ketara sejak September 2015, mencerminkan jangkaan kenaikan yang berkekalan dalam pengeluaran oleh ahli Pertubuhan Negara-negara Pengeksport Minyak (“OPEC”) ketika pengeluaran minyak global yang berterusan melebihi penggunaan minyak. Pasaran niaga hadapan menjangkakan kenaikan yang sederhana harga bagi 2016 dan 2017. Harga komoditi yang lain, terutamanya logam, juga jatuh.

Kumpulan terus membekalkan bahan-bahan yang sesuai untuk pelbagai projek perumahan, prasarana dan pembangunan kepada Agensi-Agensi Kerajaan Negeri Terengganu. Ini akan dapat meningkatkan pendapatan subsidiari pembuat kaca dan barangan berasaskan kayu Kumpulan.

Operasi huluan dan pertengahan Kumpulan akan terus menghadapi cabaran seperti pengurangan dalam kup tahunan, keadaan cuaca yang tidak memuaskan, kemampuan untuk mencapai kadar pengeluaran sehektar yang terbaik disebabkan sekatan topografi dan peningkatan dalam kos-kos pembungkusan, pengangkutan serta kos operasi lain.

Kumpulan akan berusaha untuk menjalankan segala langkah yang perlu untuk mengurangkan kesan buruk masalah-masalah tersebut melalui perancangan yang rapi dan hubungan yang rapat dengan kontraktor dan pihak berkuasa yang berkaitan.

Pada tahun 2015, kuota penuaian Kumpulan telah dikurangkan dan diperuntukkan kepada kilang papan kecil yang lain sebagai sebahagian daripada pengurangan keseluruhan kuota penuaian bagi tahun terakhir Rancangan Malaysia ke-10. Kumpulan akan diperuntukkan kuota penuaian biasa pada 2016 (bermulanya Rancangan Malaysia ke-11) dan seterusnya.

Bagi bahagian perkilangan, ketidakstabilan harga dan ketersediaan bekalan bahan mentah akan terus menjadi cabaran kepada Kumpulan. Sebagai langkah balas, Kumpulan akan terus mencari sumber bekalan bahan mentah alternatif bagi memastikan adanya bekalan yang boleh dipercayai pada harga yang berdaya saing. Persaingan sangat sengit terutama di pasaran tempatan di mana pelanggan meminta potongan harga dan barangan yang berkualiti tinggi.

Lembaga akan berusaha untuk meningkatkan prestasi Kumpulan dengan menjalankan pelbagai inisiatif dan langkah-langkah tindakan yang akan memberi manfaat kepada semua pihak yang berkepentingan dalam jangka masa pendek, sederhana dan panjang. Kumpulan terus mencari perniagaan yang berdaya maju yang akan memastikan prestasi positif yang mampan, pertumbuhan dan kelebihan daya saing pada tahun-tahun mendatang.

GPB telah memeterai Memorandum Persefahaman dengan Dongwha Malaysia Sdn Bhd pada 25 Oktober 2015 bagi meletakkan kerja-kerja asas untuk kerjasama masa depan antara kedua-dua syarikat untuk menggunakan sumber kedua-dua pihak untuk mewujudkan hubungan perniagaan yang berjaya yang akan memberi manfaat kepada kedua-dua pihak.

Permint Plywood Sdn. Bhd. (“PPSB”), subsidiari milik penuh Permint Timber Corporation Sdn. Bhd., yang merupakan subsidiari milik penuh GPB telah memeterai Perjanjian Usahasama dengan Cymao Plywood Sdn. Bhd. (“CPSB”) pada 22 Disember 2015 untuk memulihkan kemudahan PPSB untuk menjana keuntungan, memulakan penanaman semula hutan dan menubuhkan ladang hutan industri untuk bekalan stok yang mampan dan meneroka dan melaksanakan operasi yang menambah nilai bagi memaksimumkan sumber-sumber semulajadi di Negeri Terengganu.

PPSB memegang 60% daripada 1,600,000 modal GP Dynamic Venture Sdn Bhd (“GPDV”) atau syarikat usahasama/JV) yang diterbitkan dan berbayar penuh. Baki sebanyak 40% dipegang oleh CPSB. GPDV menjangka kilangnya akan memulakan operasi bagi produk kayu pada separuh kedua 2016.

Di antara 2008 dan 2014 pasaran papan lapis meningkat dengan pertumbuhan tahunan sebanyak 10.9%. Permintaan global untuk papan lapis diramalkan oleh syarikat penyelidikan pasaran terkemuka berkembang sebanyak 2.8% setahun antara 2015 dan 2019. Ini merupakan petanda baik bagi syarikat usahasama tersebut dan Kumpulan secara keseluruhannya.

DIVIDEN

Lembaga Pengarah tidak mengesyorkan sebarang dividen bagi tahun kewangan berakhir 31 Disember 2015.

PENGHARGAAN

Bagi pihak Lembaga Pengarah, saya ingin merakamkan penghargaan tulus ikhlas kepada pihak pengurusan dan kesemua pekerja Kumpulan atas jasa, komitmen dan sumbangan yang tidak ternilai mereka di sepanjang tempoh kewangan yang lalu.

Salah seorang Ahli Lembaga kami, En. Zaki bin Che Endut meninggal dunia pada 31 Oktober 2015. Bagi pihak Lembaga Pengarah, Pengurusan dan kakitangan Kumpulan kami ingin memanjangkan ucapan takziah kepada ahli keluarganya. Pemergian beliau adalah satu kehilangan besar kepada Kumpulan.

Kami juga ingin menghulurkan penghargaan tulus ikhlas kepada pemegang saham, pelanggan, pembekal, pihak bank serta rakan-rakan perniagaan. Tidak ketinggalan, saya ingin mengucapkan setinggi-tinggi penghargaan tulus ikhlas kepada Kerajaan Negeri Terengganu serta pihak berkuasa yang berkenaan yang senantiasa memberikan kepercayaan penuh, panduan yang tidak ternilai serta sokongan kepada Kumpulan.

YBHG DATO’ SRI HAJI ABDUL RAHMAN BIN BAKAR

Pengerusi

PENYATA PENGERUSI


ENVIRONMENTAL STATEMENT

Environmental Management

Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn. Bhd. (“KPKKT”), the Group’s timber management subsidiary, adopts the Selective Management System (“SMS”) to manage the timber concession area in its role as logs supplier for the consumption of the Group. KPKKT is also responsible to develop and manage its concession in a sustainable manner in accordance with Sustainable Forest Management (“SFM”) to ensure that the environment of the concession is well preserved.

In this context, KPKKT as a Forest Management Unit (“FMU”) subscribes fully to the Malaysian Criteria and Indicators of which the above SMS was incorporated. KPKKT also cooperates with the State Forestry Department to ensure that best management practices in logging are being observed and maintained to meet the requirements of the Malaysian Timber Certification Scheme (“MTCS”).

KPKKT has been awarded the FSCTM certification endorsement since 21 April 2008, which was applicable for five years, by Scientific Certification Systems (“SCS”), a leader and pioneer in third-party auditing and certification of forest management operations around the world, using the SCS-FSC Interim Standard for Forest Management Certification in Malaysia Version 5.0 2014 for well-managed forests. This certification verifies that KPKKT’s tropical forest of 108,900 hectares in Dungun Timber Complex (“DTC”) are managed according to the rigorous international standards of the FSCTM under a selective cutting approach that maintains continuous forest cover and species diversity.

The certification has been recertified for another five years until 20 October 2018. KPKKT’s DTC concession area is the largest forest in Peninsular Malaysia to have received FSCTM certification, and only the second natural forest in Malaysia to achieve this distinction.

KPKKT is committed to adopt the National and International Convention on Biological Diversity in order to sustain the richness of flora and fauna in the concession area.

In addition another subsidiary, Pesama Timber Corporation Sdn Bhd (“Pesama”), has successfully obtained the FSCTM endorsed certification for its 20,243 hectares Cherul Forest Concession (“CFC”) on 10 December 2012 as certified by SCS Global Services. The certification is valid for five years until 9 December 2017.

ENVIRONMENTALSTATEMENT

Timber Environment Policy

Golden Pharos Group will collaborate with all relevant parties and organisations to ensure compliance towards the promotion of good forest management as stipulated under the Forest Stewardship Council (“FSCTM”) and the Malaysian Criteria and Indicators (“MC&I”) for Forest Management Certification (Natural Forest).

Timber Sourcing Policy Sourcing of timber is mainly from the Group’s own certified forest. In circumstances where the Group had to source from alternative suppliers, the Group insists that the supplies are from certified forest. Timber supply is a very critical factor to the Group’s expansion programmes and assured sources of supply and the ability to process logs into top-quality finished products inexpensively. The Group has undertaken the species segregation initiative in line with the promotion of lesser known species for commercialisation which is encouraged by the Malaysian Government.

With the FSCTM certification, the Group would be able to access to an increasing number of markets and customers that demand environmental friendly certified products domestically and abroad.

Whilst the environmental management system of a subsidiary, Golden Pharos Glass Sdn Bhd (“GP Glass”), for the manufacture of tempered, double glazed, laminated and ceramic printed safety glass’s has been assessed and registered against the provisions of ISO 14001: 2004 International Standard effective 23 February 2012, and valid until recertification on 10 July 2018.

In 2013, the Group via KPKKT has entered into a tripartite conservation agreement with Tesco Stores (Malaysia) Sdn Bhd (“Tesco”) and Malaysian Timber Industry Board (“MTIB”) to conserve, protect and manage a plot of land owned by the subsidiary by planting approximately 25,000 Karas trees as part of Tesco’s Greener Earth programme.

Chain of Custody Certification

The Group’s subsidiaries, Pesaka Trengganu Berhad (“Pesaka”) and Pesama, have successfully obtained the Chain-of-Custody (“CoC”) certification for the sawmills from a third party certifier accredited by the FSCTM since July 2008. With this certification, it means that the wood used in the sawmills come from well-managed forests, independently certified in accordance with the criteria and principles set by the FSCTM.

This would also mean that Pesama and Pesaka are well placed to market their sawn timber and other wood based products in markets which insist on wood products to be sourced from sustainable and well managed forests.

ENVIRONMENTAL POLICY


High Conservation Value Forest (HCVF)

KPKKT adopts specific policies to protect the high conservation values in the forests. This includes scientific assessment of species, cultural assessment and conservation plans to protect species or cultural sites that are unique, rare, threatened or endangered. Some of the unique areas are as follows:

• KPKKT’s concession area has various invaluable tree species, unique and preserved sites. A Chengal tree located in KPKKT’s concession area has been listed in the Malaysia Book of Records as the largest Chengal tree in the world.

• Chemerong Waterfalls which is situated in the KPKKT’s concession area is the highest in Malaysia. It thunders magnificently down a 305 metres slope that has the potentials as a major tourist destination and recreational area.

• The Keruing Sarawak (Dipterocarpus Sarawakensis), which is also a rare and endangered species, has been found in the KPKKT’s Forest Reserve and has been plotted as a protected area.

• KPKKT has also delineated some areas exceeding 1,000 metres above sea level as a Total Protection Area which are not harvestable. These areas will provide natural habitat especially for wildlife sanctuary.

Social Impact Assessment (SIA)

Concerned with the well-being of the local communities, KPKKT has been carrying out social impact assessment exercises since 2009 in the effort to identify the problems faced by the communities and to determine appropriate mitigation strategies to address them. The issues raised include river water quality, damage to crops by wildlife and road safety especially to school children. Specific mitigation measures were proposed and taken by KPKKT via regular consultation with the relevant authorities and local communities. As part of its continuous improvement process, KPKKT has taken the initiative to review and update the earlier impact assessment exercises annually.

ENVIRONMENTAL STATEMENT

POLISI ALAM SEKITAR

Polisi Alam Sekitar Pembalakan

Kumpulan Golden Pharos akan bekerjasama dengan kesemua pihak dan organisasi yang berkaitan bagi memastikan pematuhan terhadap penggalakan pengurusan perhutanan yang baik sebagaimana yang digariskan di bawah Forest Stewardship Council (“FSCTM”) dan Kriteria dan Petunjuk Malaysia bagi Pensijilan Pengurusan Hutan (Hutan Asli).

Polisi Pemerolehan Balak

Sumber balak adalah diperolehi terutamanya dari hutan Kumpulan yang telah mendapat pensijilan. Dalam keadaan di mana Kumpulan perlu mendapatkannya daripada pembekal yang lain, Kumpulan menekankan supaya bekalan diperolehi dari hutan yang diperakui. Bekalan balak adalah faktor yang sangat kritikal terhadap rancangan pengembangan Kumpulan dan sumber bekalan yang terjamin serta kemampuan untuk memproses balak menjadi barangan siap yang berkualiti tinggi dengan murah. Kumpulan telah mengambil inisiatif pengasingan spesies selaras dengan promosi memperkenalkan spesies yang kurang dikenali untuk dikomersilkan sebagaimana digalakkan oleh Kerajaan Malaysia.


Pengurusan Alam Sekitar

Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn. Bhd. (“KPKKT”), subsidiari yang menguruskan pembalakan Kumpulan, menggunapakai Sistem Pengurusan Memilih (Selective Management System – “SMS”) untuk menguruskan kawasan konsesi pembalakan dalam peranannya sebagai pembekal balak untuk kegunaan Kumpulan. KPKKT juga bertanggungjawab untuk membangun dan menguruskan konsesinya secara mampan selaras dengan Pengurusan Hutan Lestari (Sustainable Forest Management – “SFM”) bagi memastikan bahawa persekitaran konsesi dipelihara dengan baik.

Sehubungan dengan itu, KPKKT sebagai satu Unit Pengurusan Hutan (Forest Management Unit – “FMU”) berpegang sepenuhnya dengan Kriteria dan Petunjuk Malaysia yang mana SMS di atas diasaskan. KPKKT juga berkerjasama dengan Jabatan Perhutanan Negeri bagi memastikan amalan pengurusan pembalakan terbaik adalah dipatuhi dan dikekalkan untuk memenuhi keperluan Skim Pensijilan Kayu Malaysia (Malaysian Timber Certification Scheme - “MTCS”).

KPKKT telah dianugerahkan pensijilan yang diiktiraf oleh FSCTM pada 21 April 2008, yang boleh digunapakai untuk tempoh lima tahun, oleh Scientific Certification System (“SCS”), peneraju dan perintis dalam pengauditan pihak ketiga dan pensijilan operasi pengurusan hutan di seluruh dunia, menggunakan SCS-FSC Piawaian Interim untuk Pensijilan Pengurusan Hutan di Malaysia Versi 5.0 2014 bagi hutan yang diuruskan dengan baik. Pensijilan ini mengesahkan bahawa hutan tropika KPKKT seluas 108,900 hektar di Kompleks Perkayuan Dungun (“KPD”) ini adalah diurus menurut piawaian antarabangsa FSCTM yang ketat di bawah pendekatan tebangan memilih yang mengekalkan litupan hutan dan kepelbagaian spesies.

Pensijilan ini telah disambung selama lima tahun lagi hingga 20 Oktober 2018. Kawasan konsesi KPD KPKKT adalah hutan terbesar di Semenanjung Malaysia yang menerima pensijilan FSCTM, dan hanya hutan asli kedua di Malaysia yang menerima penghormatan ini.

PENYATA ALAM SEKITAR

KPKKT beriltizam untuk menerimapakai Konvensyen Kebangsaan dan Antarabangsa mengenai Kepelbagaian Biologi bagi mengekalkan kekayaan flora and fauna di dalam kawasan konsesi.

Di samping itu sebuah lagi subsidiari, Pesama Timber Corporation Sdn Bhd (“Pesama”), telah berjaya memperolehi pensijilan yang diiktiraf oleh FSCTM bagi Konsesi Hutan Cherul seluas 20,243 hektar pada 10 Disember 2012 seperti yang disahkan oleh SCS Global Services. Pensijilan ini adalah sah selama lima tahun sehingga 9 Disember 2017.

Dengan pensijilan FSCTM ini, Kumpulan akan dapat memasuki jumlah pasaran dan pelanggan yang semakin meningkat yang memerlukan produk yang disahkan mesra alam di dalam dan luar negara.

Sementara itu, pengurusan sistem alam sekitar sebuah subsidiari, Golden Pharos Glass Sdn Bhd (“GP Glass”), untuk pengeluaran kaca keselamatan ‘tempered’, dwi lapis (‘double glazed’), bersalut (‘laminated’) dan seramik dicetak telah dinilai dan didaftarkan menurut peruntukan ISO 14001: 2004 Piawaian Antarabangsa berkuatkuasa pada 23 Februari 2012, dan sah sehingga pensijilan semula pada 10 Julai 2018.

Dalam tahun 2013, Kumpulan melalui KPKKT telah memeterai perjanjian pemuliharaan tiga pihak dengan Tesco Stores (Malaysia) Sdn Bhd (“Tesco”) dan Lembaga Perindustrian Kayu Malaysia (“MTIB”) untuk memelihara, melindungi dan menguruskan plot tanah yang dimiliki oleh subsidiari tersebut dengan menanam kira-kira 25,000 pokok Karas sebagai sebahagian daripada program Bumi Hijau (“Greener Earth”) Tesco.

Pensijilan ‘Chain of Custody’

Subsidiari Kumpulan, Pesaka Trengganu Berhad (“Pesaka”) dan Pesama, telah berjaya memperolehi pensijilan ‘Chain-of-Custody’ (“CoC”) bagi kilang papan daripada pihak ketiga yang ditauliahkan oleh FSCTM mulai bulan Julai 2008. Dengan pensijilan ini, ianya bermakna bahawa kayu yang digunakan di kilang papan datang dari hutan yang diuruskan dengan baik, disahkan secara bebas menurut kriteria dan prinsip yang ditetapkan oleh FSCTM.

Ini juga bermakna Pesama dan Pesaka mempunyai kelebihan dalam memasarkan kayu gergaji dan barangan berasaskan kayu yang lain dalam pasaran yang menekankan keperluan produk kayu diperolehi dari hutan yang lestari dan diuruskan dengan baik.

Pemuliharaan Hutan Nilai Tinggi

KPKKT menggunapakai polisi khusus untuk melindungi pemuliharaan hutan yang bernilai tinggi. Ini termasuklah penilaian saintifik ke atas spesies, penilaian kebudayaan dan rancangan pemuliharaan untuk melindungi spesies atau tapak kebudayaan yang unik, jarang, tergugat atau terancam. Antara kawasan yang unik adalah seperti berikut:

• Kawasan konsesi KPKKT mempunyai pelbagai spesies pokok yang tidak ternilai serta tapak yang unik dan terpelihara. Terdapat sepohon pokok Chengal di dalam kawasan konsesi KPKKT yang disenaraikan dalam Malaysia Book of Records sebagai pokok Chengal terbesar di dunia.

• Air Terjun Chemerong yang terletak dalam kawasan konsesi KPKKT adalah yang tertinggi di Malaysia. Ia menerjah dengan hebatnya ke bawah cerun sepanjang 305 meter yang berpotensi sebagai destinasi pelancongan utama dan kawasan rekreasi.

• Keruing Sarawak (Dipterocarpus sarawakensis), yang juga merupakan spesies yang jarang ditemui dan terancam, telah ditemui dalam Hutan Simpan KPKKT dan telah dikhaskan sebagai kawasan yang dilindungi.

• KPKKT juga telah mengasingkan sebahagian kawasan melebihi 1,000 meter di atas paras laut sebagai Kawasan Perlindungan Mutlak yang tidak boleh ditebang. Kawasan ini akan menyediakan habitat semulajadi terutamanya untuk perlindungan hidupan liar.

Penilaian Kesan Sosial

Cakna dengan kesejahteraan masyarakat setempat, KPKKT melaksanakan kajian penilaian kesan sosial semenjak 2009 dalam usaha untuk mengenalpasti masalah yang dihadapi oleh masyarakat dan bagi menentukan strategi mitigasi yang bersesuaian untuk menanganinya. Isu-isu yang dibangkitkan termasuk kualiti air sungai, kerosakan kepada tanaman disebabkan hidupan liar dan keselamatan jalanraya terutama kepada kanak-kanak sekolah. Langkah-langkah mitigasi khusus telah dicadangkan dan diambil oleh KPKKT melalui rundingan yang berterusan dengan pihak berkuasa yang berkaitan dan masyarakat setempat. Sebagai sebahagian daripada proses penambahbaikannya yang berterusan, KPKKT telah mengambil inisiatif untuk mengkaji semula dan mengemaskini kajian penilaian kesan yang terdahulu setiap tahun.

GROUP STRUCTURESTRUKTUR KUMPULAN

GOLDEN PHAROS BERHAD (152205-W)

Permint Timber Corporation Sdn. Bhd.

Golden Pharos DoorsSdn. Bhd.

Golden Pharos GlassSdn. Bhd.

Golden Pharos Overseas Sdn. Bhd.

Golden Pharos FiberSdn. Bhd.

Golden Pharos Overseas Sales Sdn. Bhd.

100%

100%

100%

100%

100%

100%

Permint PlywoodSdn. Bhd.

Pesaka Trengganu Berhad

Pesama Timber Corporation Sdn. Bhd.

Kumpulan Pengurusan Kayan-Kayan Trengganu Sdn. Bhd.

GP Tropical Furniture Sdn. Bhd.

Kemaman Furniture Industries Sdn. Bhd.

19.54% 30.85%

29.5%19%

Konsortium Perumahan Rakyat Trengganu Sdn. Bhd.

Pesama Renors (M)Sdn. Bhd.

35%

25%

100%

100%

100%

100%

20

GP Dynamic Venture Sdn. Bhd.

60%

GOLDEN PHAROS BERHAD LAPORAN TAHUNAN 2015 ANNUAL REPORT


BOARD OF DIRECTORSAHLI-AHLI LEMBAGA PENGARAH

YBhg Dato’ Sri Haji Abdul Rahman bin Bakar Non-Independent Non-Executive Chairman/Pengerusi Bukan Bebas Bukan Eksekutif

YB Dato’ Haji Osman bin MudaNon-Indepedent Non-Executive Director/Pengarah Bukan Bebas Bukan Eksekutif

YB Dato’ Haji Wan Nawawi bin Haji Wan IsmailNon-Indepedent Non-Executive Director/Pengarah Bukan Bebas Bukan Eksekutif

YB Dato’ Sabri bin Mohd NoorNon-Indepedent Non-Executive Director/Pengarah Bukan Bebas Bukan Eksekutif

YBhg Dato’ Haji Mohamad Nor bin IbrahimNon-Indepedent Non-Executive Director/Pengarah Bukan Bebas Bukan Eksekutif

Tuan Haji Jusoh bin AliIndependent Non-Executive Director/Pengarah Bebas Bukan Eksekutif

Encik Rosli bin Abd RahmanIndependent Non-Executive Director/Pengarah Bebas Bukan Eksekutif

STOCK EXCHANGE LISTINGPENYENARAIAN

Main MarketPasaran Utama

Bursa Malaysia Securities BerhadBursa Malaysia Sekuriti Berhad

PRINCIPAL BANKERSBANK-BANK UTAMA

Bank Islam Malaysia Berhad

Maybank Islamic Berhad

CHIEF EXECUTIVE OFFICERKETUA PEGAWAI EKSEKUTIF

Encik Mohd Adawi @ Ton Mohd Ali bin Ton Omar

SECRETARYSETIAUSAHA SYARIKAT

Encik Suhairi bin Sulong

Puan Saliza binti Abdul Rahman

CORPORATE INFORMATIONMAKLUMAT KORPORAT

REGISTERED OFFICEPEJABAT BERDAFTAR

Lot PT 3071Kawasan Perindustrian Chendering21080 Kuala TerengganuTerengganu Darul Iman

Tel : (609) 617 7771Fax : (609) 617 7772

SHARE REGISTRARPENDAFTAR SAHAM

Tricor Investor & Issuing House Services Sdn BhdUnit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3,Bangsar South, No. 8, Jalan Kerinchi,59200 Kuala LumpurTel : (603) 2783 9299Fax : (603) 2783 9222

AUDITORSJURUAUDIT

Ernst & YoungTingkat 9, Menara PERMINT Jalan Sultan Ismail20200 Kuala TerengganuTerengganuTel : (609) 623 0088Fax : (609) 623 0099


YBhg Dato’ Sri Haji Abdul Rahman bin Bakar, aged 64, was appointed as the Chairman of Golden Pharos Berhad (GPB) following his appointment as a Director on 9 January 2014. He is also the Chairman of the Nomination & Remuneration Committee of the Board.

He obtained a Bachelor of Social Science Degree from University of Kebangsaan Malaysia and Certified Doctor of Business Administration from Oxford University, United Kingdom. He became a Member of Parliament in 1986 and was subsequently appointed as the Deputy Minister of Human Resource in March 2004. Prior to that he was an educator.

He has held significant positions in the government agencies and NGO’s and has served among others as the Chairman of Fisheries Development Authority of Malaysia and Deputy Chairman of MARA. He is currently the Chairman of Asia Malindo Business and Cultural Centre.

YBhg Dato’ Sri Haji Abdul Rahman does not have any family relationship with any Director and/ or major shareholder nor has any conflict of interest with GPB. He has no convictions for any offences within the past 10 years.

YBhg Dato’ Sri Haji Abdul Rahman bin Bakar, berusia 64 tahun, telah dilantik sebagai Pengerusi Golden Pharos Berhad (GPB) selaras dengan pelantikan beliau sebagai Pengarah pada 9 Januari 2014. Beliau juga adalah Pengerusi Jawatankuasa Pemilihan & Imbuhan Lembaga.

Beliau memperolehi Ijazah Sarjana Muda Sains Kemasyarakatan dari Universiti Kebangsaan Malaysia dan Kedoktoran dalam Bidang Pengurusan Perniagaan dari Universiti Oxford, United Kingdom. Beliau menjadi ahli Parlimen pada tahun 1986 dan kemudiannya dilantik sebagai Timbalan Menteri Sumber Manusia pada bulan Mac 2004. Sebelum itu beliau adalah seorang pendidik.

Beliau pernah memegang jawatan dalam agensi kerajaan dan NGO serta telah berkhidmat antara lain sebagai Pengerusi Lembaga Kemajuan Ikan Malaysia dan Timbalan Pengerusi MARA. Kini beliau merupakan Pengerusi Pusat Perniagaan dan Budaya Asia Malindo.

YBhg Dato’ Sri Haji Abdul Rahman tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana Pengarah dan/ atau pemegang saham utama atau konflik kepentingan dengan GPB. Beliau juga tidak pernah disabitkan dengan sebarang kesalahan dalam tempoh 10 tahun lepas.

YBHG DATO’ SRI HAJI ABDUL RAHMAN BIN BAKARNon-Independent Non-Executive Chairman Pengerusi Bukan Bebas Bukan Eksekutif

BOARD OF DIRECTORS’ PROFILEPROFIL LEMBAGA PENGARAH


YB DATO’ HAJI OSMAN BIN MUDA Non-Independent Non-Executive Director

Pengarah Bukan Bebas Bukan Eksekutif

YB DATO’ HAJI WAN NAWAWIBIN HAJI WAN ISMAIL Non-Independent Non-Executive Director

Pengarah Bukan Bebas Bukan Eksekutif

YB Dato’ Haji Osman bin Muda, aged 59, was appointed to the Board of GPB on 28 August 2014. He holds a Bachelor of Social Science (Hons) from University Malaya and Master of Human Resource Development from University Putra Malaysia.

He has served in various positions in the Terengganu State Civil Service including State Financial Officer, Director of Lands and Mines Terengganu, General Manager of State Economic Development Corporation and District Officer of Marang. He is currently the Terengganu State Secretary.

YB Dato’ Haji Osman does not have any family relationship with any Director and/ or major shareholder nor has any conflict of interest with GPB. He has no convictions for any offences within the past 10 years.

YB Dato’ Haji Wan Nawawi bin Haji Wan Ismail, aged 58, was appointed to the Board of GPB on 28 August 2014. He holds a Bachelor of Social Sciences (Hons) from University of Kebangsaan Malaysia and a Master in Business Administration from Oklahoma City University, United States of America. He is a member of the Audit Committee of the Board.

He has served in various positions in the Terengganu State Civil Service including the District Officer of Kuala Terengganu and Setiu, Deputy State Secretary (Special Project), Deputy Director Terengganu State Economic Planning Unit (SEPU) and General Manager of Terengganu Entrepreneur Development Foundation. He is currently the State Financial Officer of Terengganu.

YB Dato’ Haji Wan Nawawi does not have any family relationship with any Director and/ or major shareholder nor has any conflict of interest with GPB. He has no convictions for any offences within the past 10 years.

YB Dato’ Haji Osman bin Muda, berusia 59 tahun, telah dilantik sebagai ahli Lembaga Pengarah GPB pada 28 Ogos 2014. Beliau memiliki Ijazah Sarjana Muda Sains Sosial (Kepujian) dari Universiti Malaya dan Sarjana Sains dalam bidang Pembangunan Sumber Manusia dari Universiti Putra Malaysia.

Beliau pernah menjawat pelbagai jawatan dalam Perkhidmatan Awam Negeri Terengganu termasuk Pegawai Kewangan Negeri, Pengarah Tanah dan Galian Terengganu, Pengurus Besar Perbadanan Memajukan Iktisad Negeri Terengganu dan Pegawai Daerah Marang. Kini beliau adalah Setiausaha Kerajaan Negeri Terengganu.

Dato’ Haji Osman tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana Pengarah dan/ atau pemegang saham utama atau konflik kepentingan dengan GPB. Beliau juga tidak pernah disabitkan dengan sebarang kesalahan dalam tempoh 10 tahun lepas.

YB Dato’ Haji Wan Nawawi bin Haji Wan Ismail, berusia 58 tahun, telah dilantik sebagai ahli Lembaga Pengarah GPB pada 28 Ogos 2014. Beliau memiliki Ijazah Sarjana Muda Sains Sosial (Kepujian) dari Universiti Kebangsaan Malaysia dan Sarjana Pengurusan Perniagaan (MBA) dari Oklahoma City Universiti, Amerika Syarikat. Beliau adalah ahli Jawatankuasa Audit Lembaga.

Beliau pernah menjawat pelbagai jawatan dalam Perkhidmatan Awam Negeri Terengganu termasuk Pegawai Daerah Kuala Terengganu dan Setiu, Timbalan Setiausaha Kerajaan (Projek Khas), Timbalan Pengarah Unit Perancang Ekonomi Negeri Terengganu (UPEN) dan Pengurus Besar Yayasan Pembangunan Usahawan Terengganu. Kini beliau adalah Pegawai Kewangan Negeri Terengganu.

YB Dato’ Haji Wan Nawawi tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana Pengarah dan/ atau pemegang saham utama atau konflik kepentingan dengan GPB. Beliau juga tidak pernah disabitkan dengan sebarang kesalahan dalam tempoh 10 tahun lepas.



YB DATO’ SABRI BIN MOHD NOOR Non-Independent Non-Executive DirectorPengarah Bukan Bebas Bukan Eksekutif

YBhg Dato’ Haji Mohamad Nor bin Ibrahim, aged 59, was appointed to the Board of GPB on 28 August 2014. He holds Bachelor of Economic (Hons) Degree from University of Malaya.

He has served in various positions in the Terengganu State Civil Service including the District Officer of Setiu and Kemaman, President of Hulu Terengganu District Council, and Director of Sports Council Terengganu. He is currently the Director of Lands and Mines Terengganu.

YBhg Dato’ Haji Mohamad Nor does not have any family relationship with any Director and/ or major shareholder nor has any conflict of interest with GPB. He has no convictions for any offences within the past 10 years.

YB Dato’ Sabri bin Mohd Noor, aged 52, was appointed to the Board of GPB on 28 August 2014. He holds Diploma in Quantity Surveyor from Federal Institute of Technology College.

He has served in various positions in associations including Setiu Anti-Drug House Commodities and Members of Setiu Hospital Visitors Council. He is also a Chairman of Setiu Welfare Association and Chairman of Setiu Malay Contactors Association. He is currently the State Assemblyman of Langkap.

YB Dato’ Sabri does not have any family relationship with any Director and/or major shareholder nor has any conflict of interest with GPB. He has no convictions for any offences within the past 10 years.

YBhg Dato’ Haji Mohamad Nor bin Ibrahim, berusia 59 tahun, telah dilantik sebagai Lembaga Pengarah GPB pada 28 Ogos 2014. Beliau memiliki Ijazah Sarjana Muda Ekonomi (Kepujian) dari Universiti Malaya.

Beliau pernah menjawat pelbagai jawatan dalam Perkhidmatan Awam Negeri Terengganu termasuk Pegawai Daerah Setiu dan Kemaman, Yang Dipertua Majlis Daerah Hulu Terengganu, dan Pengarah Majlis Sukan, Terengganu. Kini beliau adalah Pengarah Tanah dan Galian, Terengganu.

YBhg Dato’ Haji Mohamad Nor tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana Pengarah dan/ atau pemegang saham utama atau konflik kepentingan dengan GPB. Beliau juga tidak pernah disabitkan dengan sebarang kesalahan dalam tempoh 10 tahun lepas.

YB Dato’ Sabri bin Mohd Noor, berusia 52 tahun, telah dilantik sebagai ahli Lembaga Pengarah GPB pada 28 Ogos 2014. Beliau memiliki Diploma Jurukur Bahan dari Federal Institute of Technology College.

Beliau pernah berkhidmat dengan pelbagai persatuan di antaranya Persatuan Rumah Komoditi Anti Dadah Daerah Setiu, Ahli Majlis Pelawat Hospital Setiu. Beliau juga merupakan Pengerusi Persatuan Kebajikan Daerah Setiu dan Pengerusi Persatuan Kontraktor Melayu Bahagian Setiu. Kini beliau adalah Ahli Dewan Undangan Negeri Langkap.

YB Dato’ Sabri tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana Pengarah dan/ atau pemegang saham utama atau konflik kepentingan dengan GPB. Beliau juga tidak pernah disabitkan dengan sebarang kesalahan dalam tempoh 10 tahun lepas.

YBHG DATO’ HAJI MOHAMAD NOR BIN IBRAHIMNon-Independent Non-Executive DirectorPengarah Bukan Bebas Bukan Eksekutif



TUAN HAJI JUSOH BIN ALI Independent Non-Executive DirectorPengarah Bebas Bukan Eksekutif

ENCIK ROSLI BIN ABD RAHMAN

Independent Non-Executive DirectorPengarah Bebas Bukan Eksekutif

Tuan Haji Jusoh bin Ali, aged 64, was appointed to the Board of GPB on 7 April 2010. He holds a Diploma in Accountancy from University Technology MARA, a Fellow of the Association of Chartered Certified Accountants (FCCA) United Kingdom and a member of the Malaysian Institute of Accountants (MIA). He was appointed as the Chairman of the Audit Committee on 25 May 2010 and a member of the Nomination & Remuneration Committee of the Board.

He has served in various position in the financial sector including Accounts Officer of Terengganu Foundation, Accountant of Central Terengganu Development Authority (KETENGAH) and Accountant of JKR (Bekalan Air) Terengganu.

Tuan Haji Jusoh does not have any family relationship with any Director and/or major shareholder nor has any conflict of interest with GPB. He has no convictions for any offences within the past 10 years.

Encik Rosli bin Abd Rahman, aged 51, was appointed to the Board of GPB on 28 August 2014. He graduated with a Law Degree (Hon) from University Malaya. He is a member of the Audit Committee and the Nomination & Remuneration Committee of the Board.

He has been practicing in several legal firms before joining the corporate institutions as Legal and Corporate Advisor as well as Company Secretary. He was previously a Legal Advisor to several companies. He is currently attached to Messrs. Lachaman Lalchaland & Associates as a partner and also a Board of Trustees Member of Malaysian Islamic Economic Foundation (YAPIEM).

Encik Rosli does not have any family relationship with any Director and/or major shareholder nor has any conflict of interest with GPB. He has no convictions for any offences within the past 10 years.

Tuan Haji Jusoh bin Ali, berusia 64 tahun, telah dilantik sebagai ahli Lembaga Pengarah GPB pada 7 April 2010. Beliau memiliki Diploma Perakaunan dari Universiti Teknologi Mara, Fellow Association of Chartered Certified Accountants (FCCA) United Kingdom dan ahli Institut Akauntan Malaysia (MIA). Beliau telah dilantik sebagai Pengerusi Jawatankuasa Audit pada 25 Mei 2010 dan ahli Jawatankuasa Pemilihan & Imbuhan Lembaga.

Beliau pernah memegang pelbagai jawatan dalam bidang kewangan termasuk Pegawai Akaun Yayasan Terengganu, Akauntan Lembaga Kemajuan Terengganu Tengah (KETENGAH) dan Akauntan JKR (Bekalan Air) Terengganu.

Tuan Haji Jusoh tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana Pengarah dan/atau pemegang saham utama atau konflik kepentingan dengan GPB. Beliau juga tidak pernah disabitkan dengan sebarang kesalahan dalam tempoh 10 tahun lepas.

Encik Rosli bin Abd Rahman, berusia 51 tahun, telah dilantik sebagai ahli Lembaga Pengarah GPB pada 28 Ogos 2014. Beliau berkelulusan Ijazah Sarjana Muda Undang-Undang (Kepujian) dari Universiti Malaya. Beliau adalah ahli Jawatankuasa Audit dan Jawatankuasa Pemilihan & Imbuhan Lembaga.

Beliau telah berkhidmat di beberapa firma guaman sebelum menyertai Institusi Korporat sebagai Penasihat Undang-Undang Korporat dan juga Setiausaha Syarikat. Sebelum ini beliau adalah Penasihat Undang-undang untuk beberapa syarikat. Pada masa kini, beliau merupakan rakan kongsi kepada Tetuan Lachaman Lalchaland & Associates dan juga Lembaga Pemegang Amanah Yayasan Pembangunan Ekonomi Islam Malaysia (YAPIEM).

Encik Rosli tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana Pengarah dan/atau pemegang saham utama atau konflik kepentingan dengan GPB. Beliau juga tidak pernah disabitkan dengan sebarang kesalahan dalam tempoh 10 tahun lepas.





Encik Mohd Adawi @ Ton Mohd Ali bin Ton Omar, aged 52, was appointed as the Chief Executive Officer of GPB on 17 May 2015. He holds a Diploma in Wood Technology from University Technology MARA and Bachelor of Science in Forest Product Technology from Brunnel University, United Kingdom.

He has served in various positions in the Malaysian Timber Industry Board (MTIB). Before joining GPB, he was the Deputy Director for Industrial Development Division at MTIB.

Encik Mohd Adawi does not have any family relationship with any Director and/ or major shareholder nor has any conflict of interest with GPB. He has no convictions for any offences within the past 10 Years.

Encik Mohd Adawi @ Ton Mohd Ali bin Ton Omar, berusia 52 tahun, telah dilantik sebagai Ketua Pegawai Eksekutif GPB pada 17 Mei 2015. Beliau memiliki Diploma Teknologi Perkayuan dari Universiti Technologi MARA dan Ijazah Sarjana Muda Sains dalam bidang Teknologi Produk Hutan dari Universiti Brunnel, United Kingdom.

Beliau pernah memegang pelbagai jawatan di Lembaga Perindustrian Kayu Malaysia (MTIB). Sebelum berkhidmat di GPB, beliau merupakan Timbalan Pengarah Jabatan Pembangunan Industri di MTIB.

Encik Mohd Adawi @ Ton Mohd Ali tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana Pengarah dan/ atau pemegang saham utama atau konflik kepentingan dengan GPB. Beliau juga tidak pernah disabitkan dengan sebarang kesalahan dalam tempoh 10 tahun lepas.

ENCIK MOHD ADAWI @ TON MOHD ALI BIN TON OMAR Chief Executive OfficerKetua Pegawai Eksekutif

CHIEF EXECUTIVE OFFICER PROFILEPROFIL KETUA PEGAWAI EKSEKUTIF


Puan Wan Zuhairiah binti Wan Ali @ Wan Damsek

Manager, Human Resource &Administration

Pengurus, Sumber Manusia &Pentadbiran

Encik Mohd Adawi @ Ton Mohd Ali bin Ton Omar

Chief Executive OfficerKetua Pegawai Eksekutif

Encik Zulkifli bin Omar

Manager, CorporateServicesPengurus, PerkhidmatanKorporat

Encik Lim Sing Tiong

Senior General Manager, Golden Pharos Glass Sdn. Bhd.Pengurus Besar Kanan, Golden Pharos Glass Sdn. Bhd.

Puan Suraya binti Mohd Hairon

Assistant Company SecretaryPenolong Setiausaha

Syarikat

Encik Suhairi bin Sulong

Company Secretary / General Manager Pesama Timber Corporation Sdn. Bhd.Setiausaha Syarikat / Pengurus Besar Pesama Timber Corporation Sdn. Bhd.

Encik Mohamad bin Sulong Senior Manager,

Internal Audit Pengurus Kanan,

Audit Dalaman

Encik Syukri bin Ali

Group Finance ManagerPengurus KewanganKumpulan

Encik Hilmi bin Awang

Assistant General Manager, MarketingPenolong Pengurus Besar, Pemasaran

Encik Shamsuddin bin Ab. Rahman

General Manager, Pesaka Trengganu BerhadPengurus Besar, Pesaka Trengganu Berhad

Encik Nordin bin Unos

General Manager, Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn. Bhd.

Pengurus Besar, Kumpulan Pengurusan Kayu Kayan Trengganu Sdn. Bhd.

Encik Wan Mohd. Shuhaimi bin Wan Aziz

Assistant General Manager, Strategic & ProcessImprovementPenolong Pengurus Besar,Strategik & Penambahbaikan Proses

MANAGEMENT TEAMPIHAK PENGURUSAN


CORPORATE HIGHLIGHTSPERISTIWA KORPORAT

Various internal and external trainings during the year

Pelbagai latihan dalaman dan luaran di sepanjang tahun

28th Annual General Meeting held on

16 June 2015 Mesyuarat Agung Tahunan ke-28

berlangsung pada 16 Jun 2015

Memorandum of Understanding during TINTSMemorandum Persefahaman semasa TINTS

Terengganu International Timber Showcase (TINTS)

held on 22-25 October 2015 Pameran Perkayuan

Antarabangsa Terengganu yang diadakan pada 22-25 Oktober 2015


The Group’s Sports Festival 2015Pesta Sukan Kumpulan bagi tahun 2015


Innovative & Creative Circle Competition

Pertandingan Kumpulan Inovatif & Kreatif

Annual Business Plan 2016 for the GroupPelan Perniagaan

Tahunan 2016 bagi Kumpulan



Eid Sacrifice at a subsidiary’s compound Majlis Korban sempena perayaan Aidil Adha di sebuah subsidiari

Exemplary awards to the Group’s employees

Anugerah pekerja contoh kepada pekerja kumpulan

Preparing as-syura dishes at a subsidiary’s compound

Gotong royong memasak bubur as-syura di sebuah subsidiari

The Group’s Eid celebrationSambutan Hari Raya Aidilfitri Kumpulan

Visit by a trade delegation from China to a subsidiaryLawatan oleh delegasi dari negara Cina ke sebuah subsidiari


CORPORATE SOCIAL RESPONSIBILITY

Achieving excellence not only in business but also as a responsible corporate citizen in the area that we operate our business has always been the prime focus of the Group.

The Group has adopted the Bursa Securities CSR Framework, which is found to be in line with the Group nature of business, resources and inclinations for its CSR activities which focus on four main areas namely; environment, community, workplace and marketplace.

Being an integrated timber manufacturer, the Group promotes logging best management practices and ensure strict compliance to Forest Stewardship Council (“FSCTM”) and the Malaysian Criteria and Indicators (“MC&I”) for Forest Management Certification (Natural Forest).

The Environment Impact Assessment (“EIA”), Environmental Management Plan (“EMP”) and Forest Management Plan (“FMP”) have been put in place to monitor and improve environmental performance on regular and continuous basis to ensure sustainability of the forest.

In 2013, the Group via a subsidiary has entered into a tripartite conservation agreement with Tesco Stores (Malaysia) Sdn Bhd (“Tesco”) and Malaysian Timber Industry Board (“MTIB”) to conserve, protect and manage a plot of land owned by the subsidiary by planting approximately 25,000 Karas trees as part of Tesco’s Greener Earth program.

Specific policies have also been adopted to protect high conservation values in the forest concession of the Group i.e. Gunung Mandi Angin (flora and fauna), Chemerong Waterfalls (highest in Malaysia), Rafflesia and Keruing Sarawak (rare and endangered species) and the largest Chengal tree in the world. The Group has also delineated some areas exceeding 1,000 metres above sea level as a Total Protection Area which are not harvestable. These areas will provide natural habitat especially for wildlife sanctuary.

The Group’s two forest concessions, namely Dungun Timber Complex and Cherul Forest Concession, have been awarded the FSCTM endorsed certification on 21 April 2008 and 10 December 2012 respectively for well-managed forests. This certification verifies that the Group’s forests are managed according to the rigorous international standards of the FSCTM and shows the commitment of the Group in promoting best logging practices for all its forest concession area.

Greater details are included in the Environmental Statement on page 17 to 18 of the Annual Report.

The Group believes that the local community plays an important role in supporting the business activities of the Group and has sought to give back to the community that it operates in through its initiatives in education and support of the underprivileged.

The Group continues to support the English Tuition Classes for students from the schools in the vicinity of the Group’s operations at Bukit Besi, Dungun under its ‘Sparkling English’ programme for primary school students.

The Group, through its subsidiaries, has contributed to the local communities, organisations and various stakeholders and also participated in community services and activities within the vicinity of its operations throughout 2015.

The Group believes that human capital development is very important to ensure that the Group has the right and relevant skill set and knowledge in ensuring business sustainability and growth. As such, the Group has conducted trainings with emphasis on quality and also sent staff for various external courses for the staff to improve further their quality of work and workplace. Health and Safety at the workplace is also another area of importance to the Group.

The Group had conducted and sent its various level of employees to a variety of trainings during 2015 with the aim of promoting teamwork, acquiring skills in innovation, integrity, creativity and competitiveness, and also enhancing communication skills and better working spirit among staff.

The Group, through its subsidiary Pesaka Trengganu Berhad, had also initiated tuition classes for staff’s children who are going to sit for the UPSR, PT3 and SPM examinations which were conducted at the vicinity of the factory since 2008 until 2015.

The Group has organised Exemplary Award to high achievers in 2015 as a way of promoting excellence in their work for non-executive category.

ENVIRONMENT COMMUNITY

WORKPLACE

The Group promotes ethical and good governance in all areas of its business activities. The Group, through its wholly-owned subsidiaries, Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn Bhd and Pesama Timber Corporation Sdn Bhd, has obtained FSCTM certification since April 2008 (which was recertified for another five years until 20 October 2018) and December 2012 respectively.

In addition, the environmental and quality management system of a subsidiary, Golden Pharos Glass Sdn Bhd, for its manufacturing and processing activities are certified under ISO 9001-2008 and ISO 14001:2004.

MARKETPLACE


TANGGUNGJAWAB SOSIAL KORPORAT

Mencapai kecemerlangan bukan sahaja dalam perniagaan tetapi juga sebagai warga korporat yang bertanggungjawab di tempat di mana kami menjalankan operasi perniagaan sentiasa menjadi matlamat utama Kumpulan.

Kumpulan menggunapakai Kerangka CSR Bursa Securities, yang didapati sesuai dengan jenis perniagaan Kumpulan, sumber-sumber dan kecenderungannya kepada aktiviti-aktiviti CSR yang menjurus kepada empat perkara iaitu; alam sekitar, komuniti, tempat kerja dan pasaran.

Sebagai pengilang balak bersepadu, Kumpulan menggalakkan amalan pengurusan pembalakan terbaik dan memastikan pematuhan ketat ke atas Forest Stewardship Council (“FSCTM”) dan Kriteria dan Petunjuk Malaysia bagi Pensijilan Pengurusan Hutan (Hutan Asli).

Penilaian Impak Alam Sekitar (“EIA”), Pelan Pengurusan Alam sekitar (“EMP”) dan Rancangan Pengurusan Hutan (“FMP”) telah diwujudkan untuk memantau dan mempertingkatkan prestasi alam sekitar secara tetap dan berterusan untuk memastikan kelestarian hutan.

Dalam tahun 2013, Kumpulan melalui sebuah subsidiari telah memeterai perjanjian pemuliharaan tiga pihak dengan Tesco Stores (Malaysia) Sdn Bhd (“Tesco”) dan Lembaga Perindustrian Kayu Malaysia (“MTIB”) untuk memelihara, melindungi dan menguruskan sebidang tanah yang dimiliki oleh subsidiari tersebut dengan menanam kira-kira 25,000 pokok Karas sebagai sebahagian daripada program Bumi Hijau (‘Greener Earth’) Tesco.

Polisi-polisi khusus juga telah digunapakai untuk melindungi khazanah hutan bernilai tinggi di dalam konsesi hutan Kumpulan seperti Gunung Mandi Angin, (flora dan fauna), Air Terjun Chemerong (tertinggi di Malaysia), Rafflesia dan Keruing Sarawak (spesies jarang ditemui dan terancam) dan pokok Chengal terbesar di dunia. Kumpulan juga telah mengasingkan sebahagian kawasan melebihi 1,000 meter di atas paras laut sebagai Kawasan Perlindungan Mutlak yang tidak boleh ditebang. Kawasan ini akan menyediakan habitat semulajadi terutamanya untuk perlindungan hidupan liar.

Dua konsesi hutan Kumpulan, iaitu Kompleks Perkayuan Dungun dan Konsesi Hutan Cherul, telah dianugerahkan pensijilan yang disahkan FSCTM, masing-masing pada 21 April 2008 dan 10 Disember 2012, bagi hutan yang diurus dengan baik. Pensijilan ini mengesahkan bahawa hutan Kumpulan diuruskan mengikut piawaian antarabangsa FSCTM yang ketat dan menunjukkan komitmen Kumpulan dalam menggalakkan amalan pembalakan terbaik untuk kesemua kawasan konsesi hutannya.

Keterangan lanjut terkandung di dalam Penyata Alam Sekitar di mukasurat 18 hingga 19 Laporan Tahunan ini.

Kumpulan percaya bahawa komuniti setempat memainkan peranan yang penting dalam menyokong aktiviti-aktiviti perniagaan Kumpulan dan berhasrat untuk menyumbang semula kepada komuniti di mana ianya beroperasi melalui inisiatif-inisiatif pendidikan dan sokongan kepada mereka yang kurang bernasib baik.

Kumpulan terus menyokong kelas tuisyen Bahasa Inggeris untuk para pelajar dari sekolah-sekolah di sekitar operasi Kumpulan di Bukit Besi, Dungun di bawah program ‘Sparkling English’ bagi para pelajar sekolah rendah.

Kumpulan, melalui subsidiari-subsidiarinya, telah menyumbang kepada masyarakat setempat, organisasi dan pihak-pihak yang berkepentingan serta juga mengambil bahagian dalam khidmat masyarakat dan aktiviti-aktiviti di persekitaran kawasan operasinya di sepanjang 2015.

Kumpulan percaya pembangunan modal insan adalah amat penting dalam memastikan Kumpulan mempunyai kemahiran dan pengetahuan yang tepat dan sesuai dalam memastikan kesinambungan dan peningkatan perniagaan. Oleh yang demikian, Kumpulan telah melaksanakan latihan-latihan yang memberi penekanan ke atas kualiti dan juga menghantar kakitangan menghadiri pelbagai kursus luar bagi kakitangan mempertingkatkan lagi kualiti kerja dan juga tempat kerja mereka. Kesihatan dan Keselamatan di tempat kerja juga adalah perkara yang penting kepada Kumpulan.

Kumpulan telah menjalankan dan menghantar pekerja daripada pelbagai tahap ke pelbagai latihan sepanjang 2015 dengan tujuan untuk menggalakkan kerja berpasukan, memperolehi kemahiran dalam inovasi, integriti, kreativiti dan daya saing, dan juga meningkatkan kemahiran komunikasi dan semangat kerja yang lebih baik di kalangan kakitangan.

Kumpulan melalui subsidiarinya, Pesaka Trengganu Berhad, juga telah mewujudkan kelas-kelas tuisyen kepada anak-anak pekerja Syarikat yang akan menduduki peperiksaan UPSR, PT3 dan SPM yang dijalankan berdekatan kawasan kilang mulai tahun 2008 hingga 2015.

Kumpulan telah menganjurkan Hari Anugerah Pekerja Contoh kepada pekerja cemerlang dalam tahun 2015 sebagai satu cara menggalakkan kecemerlangan dalam kerja bagi kategori bukan eksekutif.

ALAM SEKITAR KOMUNITI

TEMPAT KERJA

Kumpulan menggalakkan tadbir urus yang baik dan beretika di dalam semua aktiviti perniagaannya. Kumpulan melalui subsidiari milik penuhnya, Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn Bhd dan Pesama Timber Corporation Sdn Bhd, telah memperolehi pensijilan FSCTM, masing-masing mulai bulan April 2008 (yang telah disambung selama lima tahun lagi hingga 20 Oktober 2018) dan Disember 2012.

Di samping itu, sistem pengurusan alam sekitar dan kualiti sebuah subsidiari, Golden Pharos Glass Sdn Bhd, untuk aktiviti pembuatan dan pemprosesan diperakui di bawah ISO 14001: 2004 dan ISO 9001-2008.

PASARAN


The Board of Directors is committed to ensuring that the highest standards of corporate governance are observed and practiced throughout the Group as a means of managing the business and affairs of the Group with integrity and professionalism with the objective of safeguarding shareholders’ investment and enhancing shareholders’ value. The Board fully supports the recommendations of the Malaysian Code of Corporate Governance (Code).

The Board is pleased to report below the manner in which it has applied the principles of the Code and the extent of compliance with the Best Practices provisions.

A. THE BOARD OF DIRECTORS

An effective and experienced Board consisting of members from diverse professional backgrounds with a wide range of business and financial experience relevant to lead and control the Group.

The Board has a formal schedule of matters reserved to itself for decisions that has been approved by the Board in compliance to the Best Practices Provisions AAXV. The matters include the review on the Company’s and Group’s overall strategic plans and financial performance, new investment and financing decisions and Group business restructuring.

The Board has delegated specific responsibilities to two sub-committees, namely Audit and Nomination & Remuneration (NRC). All the committees have the authority to examine particular issues and report back to the Board with their recommendations. The ultimate responsibility for the final decisions on all matters however lies entirely with the Board.

Lembaga Pengarah komited dalam memastikan agar tahap tadbir urus korporat tertinggi sentiasa dipatuhi dan diamalkan di seluruh Kumpulan sebagai kaedah untuk menguruskan perniagaan dan hal-ehwal Kumpulan dengan intergriti dan bermatlamat untuk melindungi pelaburan dan mempertingkatkan nilai pemegang saham. Lembaga Pengarah menyokong sepenuhnya saranan yang terkandung di dalam Kod Tadbir Urus Korporat Malaysia (Kod).

Lembaga Pengarah dengan sukacitanya melaporkan di bawah berhubung penggunaan prinsip Kod dan pematuhannya kepada perakuan Amalan Terbaik.

A. LEMBAGA PENGARAH

Lembaga Pengarah yang efektif serta berpengalaman yang terdiri daripada ahli-ahli dari berbagai latarbelakang professional dengan pengalaman perniagaan dan kewangan yang luas sesuai untuk memimpin dan mengawal Kumpulan.

Lembaga Pengarah mempunyai jadual khas urusan-urusan yang ditetapkan khusus untuk keputusannya yang telah diluluskan oleh Lembaga Pengarah sebagaimana mematuhi perakuan Amalan Terbaik AAXV. Urusan-urusan tersebut merangkumi semakan ke atas perancangan strategik keseluruhan Syarikat dan Kumpulan dan prestasi kewangan, pelaburan baru dan keputusan-keputusan pembiayaan dan penstrukturan semula perniagaan Kumpulan.

Lembaga Pengarah telah mengagihkan tanggungjawab khusus kepada dua Jawatankuasa kecil, iaitu Audit dan Pemilihan & Imbuhan (NRC). Kesemua Jawatankuasa mempunyai kuasa untuk menilai sesuatu isu dan melapor semula ke Lembaga Pengarah berserta cadangan. Tanggungjawab mutakhir untuk keputusan muktamad mengenai semua perkara adalah terletak sepenuhnya dengan Lembaga Pengarah.

Statement Of Corporate GovernancePenyata Tadbir Urus Korporat


MESYUARAT PENGARAH

Lembaga Pengarah bermesyuarat sekali pada setiap suku tahunan dengan mesyuarat tambahan diadakan jika perlu. Kesemua mesyuarat Lembaga Pengarah Syarikat dan Kumpulan telah dijadualkan lebih awal, sebelum bermulanya tahun kewangan melalui Diari Korporat Tahunan. Dalam tahun kewangan berakhir 31 Disember 2015, enam (6) mesyuarat Lembaga Pengarah telah diadakan. Berikut adalah rekod kehadiran ahli-ahli Lembaga Pengarah.

Nama Pengarah Kehadiran

YBhg Dato’ Sri Haji Abdul Rahman bin Bakar 6/6

Tuan Haji Jusoh bin Ali 6/6

YB Dato’ Haji Osman bin Muda 4/5

YB Dato’ Haji Wan Nawawi bin Haji Wan Ismail 5/6

YB Dato’ Sabri bin Mohd Noor 5/6

YBhg Dato’ Haji Mohamad Nor bin Ibrahim 6/6

Encik Rosli bin Abd Rahman 6/6

Tuan Haji Azaki bin Che Endut 5/5(Meninggal dunia pada 31/10/2015)

KESEIMBANGAN LEMBAGA

Dalam tempoh yang dinyatakan, Lembaga Pengarah mempunyai tujuh orang ahli, terdiri daripada dua (2) Pengarah Bebas Bukan Eksekutif dan lima (5) Pengarah Bukan Bebas Bukan Eksekutif termasuk Pengerusi.

MEETINGS OF DIRECTORSThe Board meets at least once every quarterly interval with additional meetings are convened when necessary. All Board meetings for the Company and Group were scheduled in advance, prior to the commencement of the financial year through the Annual Corporate Diary. During the financial year ended 31 December 2015, six (6) Board meetings were held. Set out below is the record of attendance of the Board members.

Name of Directors Attendance

YBhg Dato’ Sri Haji Abdul Rahman bin Bakar 6/6

Tuan Haji Jusoh bin Ali 6/6

YB Dato’ Haji Osman bin Muda 4/5

YB Dato’ Haji Wan Nawawi bin Haji Wan Ismail 5/6

YB Dato’ Sabri bin Mohd Noor 5/6

YBhg Dato’ Haji Mohamad Nor bin Ibrahim 6/6

Encik Rosli bin Abd Rahman 6/6

Tuan Haji Azaki bin Che Endut 5/5(Demised w.e.f 31/10/2015)

BOARD BALANCE

During the period under review, the Board has seven members, comprising two (2) Independent Non-Executive Directors and five (5) Non-Independent Non-Executive Directors that includes the Chairman.

Statement Of Corporate Governance (continued)Penyata Tadbir Urus Korporat (sambungan)

(Vacate office as director of the Company w.e.f 1/1/2015 pursuant to Paragraph 15.05.(3)(c) of the Main Market Listing Requirements and re-appointed w.e.f 23/2/2015)

(Mengosongkan jawatan sebagai Pengarah pada 1/1/2015 menurut Perenggan 15.05(3)(c) Keperluan Penyenaraian Pasaran Utama dan dilantik semula pada 23/2/2015)


YB Dato’ Haji Osman bin Muda was vacate office as director of the Company on 1 January 2015 pursuant to Paragraph 15.05.(3)(c) of the Main Market Listing Requirements and re-appointed on 23 February 2015.

A Board member, Tuan Haji Azaki bin Che Endut passed away on 31 October 2015. He was also a member of Audit Committee and Nomination and Remuneration Committee.

YBhg Dato’ Haji Zakaria bin Awang who was appointed as the Chief Executive Officer (CEO) of the Company on 15 May 2011 has resigned as the CEO of the Company following the end of term of his contract, which expired on 14 May 2015. Following his resignation, Encik Mohd Adawi @ Ton Mohd Ali bin Ton Omar was appointed as the CEO of the Company on 17 May 2015.

A brief description of the background of each Director is presented on pages 22 to 25 of this Annual report.

The Independent Directors are not members of management (Non-Executive Directors) and are free of any relationship that would interfere with the exercise of independent judgment or the ability to act in the best interest of the Company and are in tandem with the definition of an Independent Director as set out in Section 1.01 of the Listing Requirements. The Board complies with paragraph 15.02 of the Listing Requirements, which requires that at least two or one-third of the Board of Directors of the Company, whichever is the higher, are Independent Directors.

The Position Description of the Chairman and CEO were developed and approved by the Board in compliance to the Best Practices provisions AAII and AAXVI.

There is a clear division of responsibility between the Chairman and the CEO to ensure that there is balance of power and authority. The Board is led by YBhg Dato’ Sri Haji Abdul Rahman bin Bakar, who is primarily responsible for the orderly conduct and working of the Board. The Executive Management is lead by Encik Mohd Adawi @ Ton Mohd Ali bin Ton Omar. The CEO is responsible for the efficient and effective management of the business and operations of the Company and the implementation of the Board policies and decisions.

The presence of more than two-third (2/3) of Non-Executive Directors is essential in order to safeguard the interest of other parties, such as minority shareholders, employees, creditors and others and to provide an independent view to the Board.

YB Dato’ Haji Osman bin Muda telah mengosongkan jawatan sebagai Pengarah pada 1 Januari 2015 menurut Perenggan 15.05(3)(c) Keperluan Penyenaraian Pasaran Utama dan dilantik semula pada 23 Februari 2015.

Seorang ahli Lembaga, Tuan Haji Azaki bin Che Endut meninggal dunia pada 31 Oktober 2015. Beliau merupakan Ahli Jawatankuasa Audit dan Pemilihan dan Imbuhan.

YBhg Dato’ Haji Zakaria bin Awang yang telah dilantik sebagai Ketua Pegawai Eksekutif (CEO) Syarikat pada 15 Mei 2011 telah meletak jawatan sebagai CEO Syarikat apabila tempoh kontraknya tamat pada 14 Mei 2015. Berikutan peletakan jawatan beliau, Encik Mohd Adawi @ Ton Mohd Ali bin Ton Omar telah dilantik sebagai CEO Syarikat pada 17 Mei 2015.

Keterangan ringkas mengenai latar belakang setiap Pengarah dibentangkan di mukasurat 22 hingga 25 di dalam Laporan Tahunan ini.

Pengarah Bebas adalah bukan ahli pengurusan (Pengarah Bukan Eksekutif) dan bebas dari sebarang pertalian yang akan menghalang pelaksanaan pertimbangan bebas atau kebolehan untuk bertindak demi kepentingan terbaik Syarikat dan adalah sejajar dengan definisi Pengarah Bebas sebagaimana termaktub di Seksyen 1.01 Keperluan Penyenaraian. Lembaga Pengarah mematuhi para 15.02 Keperluan Penyenaraian, yang memerlukan sekurang-kurangnya dua atau satu pertiga daripada Lembaga Pengarah Syarikat, yang mana lebih tinggi, adalah Pengarah Bebas.

Deskripsi Kedudukan Pengerusi dan Ketua Pegawai Eksekutif telah diwujudkan dan diluluskan oleh Lembaga Pengarah bagi mematuhi perakuan Amalan Terbaik AAII dan AAXVI.

Terdapat pembahagian tanggungjawab yang nyata di antara Pengerusi dan CEO untuk memastikan terdapat keseimbangan kuasa dan hak. Lembaga Pengarah diketuai oleh YBhg Dato’ Sri Haji Abdul Rahman bin Bakar, yang bertanggungjawab terutamanya berhubung aturan dan perjalanan Lembaga Pengarah. Pengurusan Eksekutif diketuai oleh Encik Mohd Adawi @ Ton Mohd Ali bin Ton Omar. CEO adalah bertanggungjawab terhadap kecekapan dan keberkesanan pengurusan perniagaan dan operasi Syarikat serta pelaksanaan polisi-polisi dan keputusan Lembaga Pengarah.

Kehadiran lebih dari dua per tiga (2/3) Pengarah-pengarah Bukan Eksekutif adalah penting dalam melindungi kepentingan pihak-pihak lain, seperti pemegang saham minoriti, kakitangan, pemiutang dan lain-lain serta memberi pandangan bebas kepada Lembaga.



The Board has also approved the Directors’ Code of Ethics in order to provide clear understanding of Director’s responsibility in discharging his duties to the stakeholders of the Group. A copy of the Directors’ Code of Ethics is given to each Director upon his appointment to the Board.

SUPPLY OF INFORMATION TO THE BOARD

Prior to the Board meetings, all Directors receive Board papers containing information relevant to the business of the meeting, in a form and of a quality appropriate to facilitate an informed decision making process. The papers are issued in a sufficient time to enable the Directors to obtain further information and explanations, where necessary, in order to be briefed properly and are able to fully participate in such meetings. The Board papers include, among others, the following details:

• Minutes of previous Board meeting (s);

• Quarterly performance report of the Group;

• Quarterly financial statements to Bursa Malaysia Securities Berhad; and

• Major operational, financial and corporate issues.

Management representatives will be invited to attend all Board meetings to provide additional insight on the matters to be discussed.

All Directors have access to the advice and services of the Company Secretary who is responsible for ensuring that the Board procedures are adhered to.

The Directors may, whether as a full Board or in their individual capacity, take independent advice, where necessary, in furtherance of their duties at the Company’s expense.

Lembaga Pengarah juga telah meluluskan Kod Etika Pengarah bagi memberi kefahaman yang nyata akan tanggungjawab Pengarah dalam melaksanakan tugas kepada pihak-pihak berkepentingan Kumpulan. Satu salinan Kod Etika Pengarah diberikan kepada setiap Pengarah ketika perlantikannya ke Lembaga.

BEKALAN MAKLUMAT KEPADA LEMBAGA

Sebelum mesyuarat Lembaga, semua Pengarah menerima kertas kerja Lembaga yang mengandungi maklumat berkaitan urusan mesyuarat, dalam bentuk dan kualiti sesuai bagi membantu proses membuat keputusan. Kertas kerja dikeluarkan dengan memberi masa yang mencukupi untuk membolehkan para Pengarah memperolehi maklumat selanjutnya dan penjelasan, jika perlu, supaya mereka memperolehi maklumat yang sewajarnya dan berupaya mengambil bahagian sepenuhnya di dalam mesyuarat. Kertas kerja Lembaga Pengarah termasuk, antara lain, butiran berikut:

• Minit-minit mesyuarat Lembaga Pengarah yang lepas;

• Laporan prestasi sukuan tahunan Kumpulan;

• Penyata kewangan sukuan tahunan ke Bursa Malaysia Securities Berhad; dan

• Isu-isu utama operasi, kewangan dan korporat.

Wakil pengurusan akan dijemput untuk menghadiri semua mesyuarat Lembaga bagi memberi penerangan tambahan ke atas perkara-perkara yang akan dibincangkan.

Semua Pengarah boleh mendapatkan nasihat dan khidmat Setiausaha Syarikat yang bertanggungjawab untuk memastikan prosedur-prosedur Lembaga dipatuhi.

Pengarah, samada sebagai sebuah Lembaga atau dalam kapasiti persendirian, boleh mendapatkan nasihat bebas, jika perlu, dalam menjalankan tugas mereka dengan perbelanjaan ditanggung oleh Syarikat.



APPOINTMENTS TO THE BOARD

NOMINATION & REMUNERATION COMMITTEE

The Nomination & Remuneration Committee (NRC) comprised of the following members during the year under review:

YBhg Dato’ Sri Haji Abdul Rahman bin Bakar

Tuan Haji Jusoh bin Ali

Encik Rosli bin Abd Rahman

YB Dato’ Haji Osman bin Muda(Resigned w.e.f 27/01/2016)

Tuan Haji Azaki bin Che Endut(Demised w.e.f 31/10/2015)

The Committee had convened four (4) meetings during the period under review. All the members are Non-Executive with two (2) Independent Directors.

The Nomination & Remuneration Committee are entrusted to oversee the appointment of Directors and key management personnel, the Board and Management Remuneration Framework and the assessment on the performance of the individual Directors, Board, Board Committees and key management personnel of the Company and Group. The primary function of the Committee with regards to the nomination role includes the following:

• To access and recommend new Directors to the Board;

• To review annually the mix of skills and experience, and other qualities, including core competencies, which Non-Executive Directors should contribute to the Board;

• To implement formal appraisal process for the evaluation of the effectiveness of the Board as a whole, the committees of the Board and the individual contribution of each Board member.

The Committee has conducted assessment of the performance of individual Directors of the Group during the period under review and assessed the eligibility to be re-elected of Group Directors to retire by rotation prior to the Annual General Meetings of the Company and Group.

PERLANTIKAN LEMBAGA PENGARAH

JAWATANKUASA PEMILIHAN & IMBUHAN

Jawatankuasa Pemilihan & Imbuhan dianggotai oleh ahli-ahli berikut di dalam tahun semasa:

YBhg Dato’ Sri Haji Abdul Rahman bin Bakar

Tuan Haji Jusoh bin Ali

Encik Rosli bin Abd Rahman

YB Dato’ Haji Osman bin Muda(Meletak jawatan pada 27/01/2016)

Tuan Haji Azaki bin Che Endut(Meninggal dunia pada 31/10/2015)

Jawatankuasa telah bermesyuarat empat (4) kali dalam tempoh semasa. Semua ahli adalah Bukan Eksekutif dengan dua (2) Pengarah Bebas.

Jawatankuasa Pemilihan & Imbuhan telah diamanahkan untuk meneliti pelantikan Pengarah-pengarah dan kakitangan kanan pengurusan, Kerangka Imbuhan Lembaga dan Pengurusan dan penilaian prestasi individu Pengarah, Lembaga dan Jawatankuasa Lembaga serta kakitangan kanan pengurusan Syarikat dan Kumpulan. Fungsi utama Jawatankuasa berhubung tugas pemilihan termasuk:

• Untuk menilai dan mengesyorkan Pengarah-pengarah baru ke Lembaga;

• Untuk mengkaji setiap tahun campuran kemahiran dan pengalaman, dan kualiti-kualiti lain, termasuk teras kecekapan, di mana Pengarah-pengarah Bukan Eksekutif seharusnya menyumbang kepada Lembaga;

• Untuk melaksanakan proses penilaian khusus terhadap penilaian kecekapan Lembaga secara menyeluruh, Jawatankuasa-jawatankuasa Lembaga dan sumbangan individu setiap ahli Lembaga.

Jawatankuasa telah menjalankan penilaian prestasi Pengarah-pengarah individu Kumpulan dalam tempoh semasa serta turut menilai kelayakan untuk dipilih semula Pengarah-pengarah Kumpulan yang akan bersara menurut giliran sebelum Mesyuarat Agung Tahunan Syarikat dan Kumpulan.



LATIHAN PENGARAH

Semua Pengarah telah menghadiri Program Akreditasi Mandatori seperti yang ditetapkan oleh Keperluan Penyenaraian BMSB. Pengarah-pengarah Syarikat telah menghadiri pelbagai kursus dan seminar bagi mempertingkatkan ketajaman fikiran berhubung perniagaan dan pengetahuan dalam melaksanakan tugas mereka sebagai Pengarah.

Tiada program latihan khusus untuk para Pengarah. Namun, terdapat program suai kenal untuk ahli-ahli Lembaga yang baru termasuk lawatan ke kilang-kilang Kumpulan dan perjumpaan dengan kakitangan pengurusan kanan, bagi membantu pemahaman mereka berhubung perniagaan Kumpulan. Persidangan dan kursus yang telah dihadiri oleh para Pengarah bagi tahun 2015 adalah seperti berikut :

• Detecting Financial Fraud

• Audit, Internal Control And Fraud Detection Seminar For The Public And Private Sectors 2015

• Internal Audit Colloquium 2015

PELANTIKAN SEMULA

Menurut Tataurusan Pertubuhan Syarikat, semua Pengarah yang dilantik oleh Lembaga adalah tertakluk kepada pemilihan oleh pemegang saham di peluang pertama selepas pelantikan mereka. Tataurusan tersebut turut menyatakan sekurang-kurangnya satu per tiga (1/3) dari Pengarah yang masih ada adalah tertakluk kepada pelantikan semula menurut giliran pada setiap Mesyuarat Agung Tahunan. Semua Pengarah akan bersara dari jawatan sekurang-kurangnya sekali dalam setiap tiga (3) tahun tetapi layak untuk dilantik semula.

B. IMBUHAN PENGARAH

PROSEDUR IMBUHAN

Jawatankuasa Pemilihan & Imbuhan mencadangkan kepada Lembaga kerangka imbuhan eksekutif dan kosnya, termasuk pakej imbuhan Ketua Pengawai Eksekutif yang merangkumi tetapi tidak terhad kepada gaji pokok, manfaat barangan dan kontrak perkhidmatan. Tanggungjawab mutakhir untuk meluluskan imbuhan Ketua Pegawai Eksekutif adalah dengan Lembaga Pengarah.

IMBUHAN PENGARAH

Imbuhan Ketua Pegawai Eksekutif dirangka agar imbuhan berasaskan prestasi korporat dan individu. Dalam kes Pengarah Bukan Eksekutif, imbuhan menggambarkan tahap tanggungjawab dan komitmen. Imbuhan setiap Pengarah ditentukan oleh Lembaga sepenuhnya bagi memastikan Syarikat dapat menarik dan mengekalkan Pengarah yang diperlukan untuk menjalankan Syarikat dengan jayanya.

DIRECTORS’ TRAINING

All Directors have attended the Mandatory Accreditation Programme as required by the BMSB Listing Requirements. The Directors of the Company have been attending various courses and seminars to further enhance their business acumen and knowledge in executing their duties as Directors.

There is no formal training programme for Directors. However, there is a familiarisation programme for new Board members including seminar, conference and visits to the Group’s factories and meeting with senior management, to facilitate their understanding of the Group business. Conferences and seminars attended by directors in year 2015 were as follows:-

• Detecting Financial Fraud

• Audit, Internal Control And Fraud Detection Seminar For The Public And Private Sectors 2015

• Internal Audit Colloquium 2015

RE-ELECTION

In accordance with the Company’s Articles of Association, all Directors who are appointed by the Board are subject to election by shareholders at the first opportunity after their appointment. The Articles also provide that at least one third (1/3) of the remaining Directors are subject to re-election by rotation at each Annual General Meeting. All Directors shall retire from office at least once in each three (3) years but shall be eligible for re-election.

B. DIRECTORS’ REMUNERATION

REMUNERATION PROCEDURE

The Nomination & Remuneration Committee recommends to the Board the framework of the executive remuneration and its cost, including the remuneration package for the CEO which includes but not exhaustive of the basic salary, benefits in kind and service contract. The ultimate responsibility to approve the remuneration of the CEO lies entirely with the Board.

DIRECTORS’ REMUNERATION

The remuneration of the CEO is structured so as to link rewards to corporate and individual performance. In the case of Non-Executive Director, the remuneration reflects the level of responsibility and commitment. The remuneration of each Director is determined by the full Board in order to ensure that the Company attracts and retain the Directors needed to run the Company successfully.



Butiran imbuhan Pengarah-pengarah untuk tahun kewangan 31 Disember 2015 adalah sebagaimana berikut :

Salaries, Bonus & Category Fees OtherEmoluments Benefitsin-kind Total Kategori Yuran Gaji, Bonus & Manfaat Barangan Jumlah Emolument lain (RM’000) (RM’000) (RM’000) (RM’000)

Non-Executive Directors 184 322 - 506 PengarahBukanEksekutif

The number of Directors whose remuneration failing within Bilangan Pengarah yang imbuhannya berada dalam lingkungan the following bands are: berikut: Number of Directors Bilangan Pengarah

Executive Directors Non Executive Directors PengarahEksekutif PengarahBukanEksekutifDirectors Remuneration Imbuhan Pengarah Less than RM50,000 / Kurang dari RM50,000 - 6RM50,000 to RM100,000 / RM50,000 ke RM100,000 - 1RM100,001 to RM150,000 / RM100,001 ke RM150,000 - -RM150,001 to RM200,000 / RM150,001 ke RM200,000 - -RM200,001 and above / RM200,001 dan ke atas - 1

Yuran Pengarah (jika ada) akan dibentangkan kepada para pemegang saham syarikat untuk kelulusan di Mesyuarat Agung Tahunan Syarikat.

C. PEMEGANG SAHAM

DIALOG DI ANTARA SYARIKAT DAN PARA PELABUR

Selain dari Laporan Tahunan, Mesyuarat Agung Tahunan adalah asas utama dialog dengan pemegang saham. Semua pemegang saham adalah digalakkan untuk menghadiri Mesyuarat Agung Tahunan dan mengambil bahagian dalam perjalanannya. Setiap peluang diberikan kepada pemegang saham untuk menanyakan soalan dan meminta penjelasan berhubung perniagaan dan prestasi Syarikat serta Kumpulan. Syarikat turut menyediakan laman web di www. goldenpharos.com di mana para pemegang saham boleh melayari untuk informasi kewangan dan lain-lain maklumat yang penting pada setiap masa.

D. KEBERTANGGUNGJAWABAN DAN AUDIT

Lembaga Pengarah beriltizam untuk mengemukakan penilaian yang seimbang dan difahami berhubung tahap dan prospek Syarikat dan Kumpulan, terutamanya melalui penyata kewangan tahunan, pengumuman sukuan tahunan prestasi kepada pemegang saham dan juga Penyata Pengerusi dan tinjauan operasi di dalam Laporan Tahunan. Lembaga Pengarah dibantu oleh Jawatankuasa Audit untuk mengawasi proses pelapuran kewangan Kumpulan dan kualiti laporan kewangan tersebut.

The details of the remuneration of Directors for the financial year ended 31 December 2015 are as follows:

Directors’ fee (if any) is tabled to the company’s shareholders for approval at the company’s Annual General Meeting.

C. SHAREHOLDERS

DIALOGUE BETWEEN THE COMPANY AND INVESTORS

Apart from the Annual Report, the Annual General Meeting (AGM) is the principal form of dialogue with the shareholders. All shareholders are encouraged to attend the AGM and participate in its proceedings. Every opportunity is given to the shareholders to ask question and seek clarification on the business and performance of the Company and Group.

The Company also maintains a website at www.goldenpharos.com from which the shareholders can access for financial and other pertinent information at all times. The company is currently in the process of redesigning the structure and format of the website to ensure easy access and more interactive to all the users.

D. ACCOUNTABILITY AND AUDIT

The Board aims to present a balanced and understandable assessment of the Company’s and Group’s position and prospects, primarily through the annual financial statements, quarterly announcements of results to the shareholders as well as the Chairman’s Statement and review of operations in the Annual Report.The Board is assisted by the Audit Committee to oversee the Group’s financial reporting process and the quality of its financial reporting.




PENYATA TANGGUNGJAWAB PENGARAH DALAM MENYEDIAKAN PENYATA KEWANGAN

Lembaga Pengarah adalah dikehendaki oleh Akta Syarikat 1965 untuk menyediakan penyata kewangan bagi setiap tahun kewangan, yang disediakan berdasarkan piawaian perakaunan yang diterima pakai. Penyata kewangan harus memberikan gambaran yang benar dan saksama tentang kedudukan kewangan Kumpulan pada akhir tahun kewangan dan tentang keputusan dan aliran tunai Kumpulan bagi tahun kewangan tersebut.

PENYATA PENGURUSAN RISIKO DAN KAWALAN DALAMAN

Jawatankuasa Audit mengesyorkan cadangan kepada Lembaga berhubung profil risiko Kumpulan. Lembaga mengagihkan kuasa kepada Jawatankuasa Audit yang merangkumi strategi pengurusan risiko di dalam Kumpulan termasuk pematuhan kepada Kerangka Pengurusan Risiko Kumpulan. Lembaga Pengarah bertanggungjawab seluruhnya ke atas sistem kawalan dalaman Syarikat. Menerusi Jawatankuasa Audit, Lembaga menyemak kecukupan dan integriti sistem kawalan dalaman termasuk pengurusan risiko dan cadangan penambahbaikan, jika ada.

Penyata Pengurusan Risiko Dan Kawalan Dalaman dinyatakan di mukasurat 41 hingga 43 Laporan Tahunan ini yang memberi gambaran menyeluruh tentang keadaan kawalan dalaman dan amalan pengurusan risiko di dalam Kumpulan.

HUBUNGAN DENGAN JURUAUDIT

Jawatankuasa Audit mengekalkan hubungan yang telus dengan juruauditnya dalam mendapatkan nasihat professional dan memastikan pematuhan kepada piawaian perakaunan dan keperluan berkanun. Juruaudit luar adalah dijemput untuk menghadiri mesyuarat Jawatankuasa Audit dan Lembaga Pengarah bilamana laporan kewangan dipertimbangkan.

KONTRAK PENTING

Di sepanjang tahun semasa, tiada kontrak penting yang dibuat oleh Syarikat dan subsidiari-subsidiarinya (bukan kontrak yang dibuat dalam urusan biasa perniagaan) melibatkan para pengarah dan pemegang-pemegang saham utama.

STATEMENT OF DIRECTORS’ RESPONSIBILITY FOR PREPARING THE FINANCIAL STATEMENTS

The Directors are required by the Company’s Act 1965 to prepare financial statements for each financial year, which have been made out in accordance with the applicable approved accounting standards. The financial statements shall give a true and fair view of the state of affairs of the Company and Group at the end of the financial year, and the results and cash flows of the Company and the Group for the financial year.

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

The Audit Committee provides recommendation to the Board concerning the Group’s Risk profile. The Board delegates the authority to the Audit Committee which encompasses risk management strategy within the Group including compliance to the Group’s Risk Management Framework.

The Board has overall responsibility for the Company’s internal control system. Through the Audit Committee, the Board reviews the adequacy and integrity of the internal control systems including risk management and recommends improvement, if any.

The Statement on Risk Management And Internal Control is set out in pages 41 to 43 of this Annual Report which provides an overview of the state of internal control and risk management practices within the Group.

RELATIONSHIP WITH THE AUDITORS

The Audit Committee maintains a transparent relationship with the external auditor in seeking professional advice and ensuring compliance with applicable accounting standards and statutory requirements. The external auditors are invited to attend the Audit Committee and Board Meeting when the annual financial statement is considered.

MATERIAL CONTRACTS

During the year, there were no material contracts entered into by the Company and its subsidiaries (not being contracts entered into the ordinary course of business) involving directors and substantial shareholders.


StatementonRiskManagementandInternalControlPenyataPengurusanRisikodanKawalanDalaman

The Board of Directors (“Board”) acknowledges the importance of a sound system of internal control to safeguard shareholders’ investments and the Group’s assets.

Set out below is the Board’s statement about the state of risk management and internal control of the Group during the year. The statement accords with the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers (“SRMIC”), as referred to in Practice Note 9 - Internal Control and Corporate Governance Statement of the Main Market Listing Requirements and Guidance Note 11 - Internal Control and Corporate Governance Statement of the Ace Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Malaysia”).

Board Responsibilities

The Board affirms its overall responsibility for maintaining sound internal control systems, and for reviewing the adequacy and integrity of those systems. The system of internal control covers risk management, financial, operational and compliance controls.

In view of the limitations that are inherent in any system of internal control, it is imperative to note that the systems are designed to mitigate rather than eliminate the risk of failure to achieve business objectives. Accordingly, the system can only provide reasonable, but not absolute, assurance against material misstatement, loss or fraud.

The Board has received assurance from the Chief Executive Officer (“CEO”) and the Group Finance Manager that the Group’s risk management and internal control system is operating adequately and effectively, in all material aspects, based on the risk management and internal control system of the Group.

RiskManagement

The Board subscribes to the fact that an effective risk management practice is a critical component of a sound system of risk management and internal control. Accordingly, the Board confirms that there is in place a formal and on-going process to identify, evaluate and manage significant risks faced by the Group that may impede the achievement of Group’s objectives throughout the year and that a review on the adequacy and effectiveness of the risk management and internal control system has been undertaken.

Ahli Lembaga Pengarah (“Lembaga”) mengakui kepentingan sistem kawalan dalaman yang utuh bagi melindungi pelaburan pemegang saham dan aset Kumpulan.

Di bawah ialah penyata Lembaga mengenai keadaan pengurusan risiko dan kawalan dalaman Kumpulan bagi tahun semasa. Penyata ini adalah sejajar dengan Penyata Pengurusan Risiko dan Kawalan Dalaman: Garispanduan untuk Pengarah-Pengarah Syarikat Awam Tersenarai, seperti yang dirujuk dalam Nota Amalan 9 - Kawalan Dalaman dan Penyata Tadbir Urus Korporat Keperluan Penyenaraian Pasaran Utama dan Nota Panduan 11 - Kawalan Dalaman dan Penyata Tadbir Urus Korporat Keperluan Penyenaraian Pasaran Ace Bursa Malaysia Securities Berhad (“Bursa Malaysia”).

TanggungjawabLembaga

Lembaga mengakui tanggungjawab keseluruhannya bagi mengekalkan sistem kawalan dalaman yang utuh, dan untuk menyemak kecukupan dan keutuhan sistem-sistem tersebut. Sistem kawalan dalaman adalah merangkumi kawalan pengurusan risiko, kewangan, kendalian dan pematuhan.

Mengambilkira sekatan-sekatan semulajadi dalam mana-mana sistem kawalan dalaman, adalah penting untuk menyatakan bahawa sistem ini adalah direka untuk mengurangkan dan bukannya menghapuskan risiko kegagalan mencapai matlamat perniagaan. Oleh itu, sistem tersebut hanya boleh memberi jaminan yang munasabah tetapi bukan sepenuhnya terhadap kesilapan yang ketara, kerugian atau penipuan.

Lembaga Pengarah telah menerima jaminan daripada Ketua Pegawai Eksekutif dan Pengurus Kewangan Kumpulan bahawa pengurusan risiko dan sistem kawalan dalaman Kumpulan beroperasi secukupnya dan berkesan, dalam semua aspek penting, berdasarkan pengurusan risiko dan sistem kawalan dalaman Kumpulan.

PengurusanRisiko

Lembaga mengakui bahawa amalan pengurusan risiko yang berkesan adalah unsur yang penting bagi sesuatu sistem pengurusan risiko dan kawalan dalaman yang utuh. Justeru itu, Lembaga mengesahkan bahawa terdapat satu proses yang rasmi dan berterusan untuk mengenalpasti, menilai dan menguruskan risiko yang ketara yang dihadapi oleh Kumpulan yang boleh menghalang pencapaian matlamat Kumpulan sepanjang tahun semasa dan semakan mengenai kecukupan dan keberkesanan pengurusan risiko dan sistem kawalan dalaman telah dilaksanakan.


StatementonRiskManagementInternalControl (continued)PenyataPengurusanRisikodanKawalanDalaman (sambungan)

The Group Risk Management Steering Committee (“GRMSC”), represented by divisional heads at head office, co-ordinates the implementation of the risk management process throughout the Group. The GRMSC had meetings to discuss Business Risk Scorecards, which outlines principal risks identified and relevant controls put in place, prepared by the working committee of each subsidiary company. The risk scorecards are consolidated and reported to the Audit Committee and the Board for review and endorsement.

Risk assessments are also carried out before committing resources to new projects and initiatives, identifying its impact on current operations and business objectives, which are reported in proposal papers to approving management and/or board committees.

Otherkeyelementsofinternalcontrol

The Board is committed to ensure that a proper control structure and environment is maintained within the Group in order to achieve a sound system of internal control. The Board has the following elements in place:-

• There is in place a clearly defined responsibility and authority of Board Committees. These committees report back to the Board with their recommendation for review and/or approval by the Board.

• The Group has an organisation structure that clearly defined lines of responsibility and delegation of authority to ensure proper identification of accountability and segregation of duties.

• Operating policies and procedures, which incorporate regulatory and internal requirements, are prescribed in Standard Operating Procedures and circulars. The documents are updated as and when necessary to meet the continually changing operational needs.

• The Board meets quarterly to review Group’s operational and financial performance against approved budget, approve quarterly report to the Bursa Malaysia and deliberate on issues that require the Board approval. In addition, the Board is also updated on the changes in business environment that may adversely affect business performance and relevant actions taken.

• The CEO meets on a monthly basis with all divisional heads and business unit heads to review the Group’s performance against budget, business issues including internal control matters and risk management.

• Annual budget is deliberated thoroughly between the management at head office and business unit level before tabling it to the Board for review, consideration and approval.

Jawatankuasa Pemandu Pengurusan Risiko (“GRMSC”), yang dianggotai oleh ketua-ketua bahagian di ibu pejabat, menyelaraskan pelaksanaan proses pengurusan risiko dalam Kumpulan. GRMSC mengadakan mesyuarat untuk membincangkan Kad Mata Risiko Perniagaan (Business Risk Scorecards), yang menggariskan risiko utama yang dikenalpasti dan kawalan yang berkaitan yang diwujudkan, yang disediakan oleh jawatankuasa kerja setiap syarikat subsidiari. Kad mata digabungkan dan dilaporkan kepada Jawatankuasa Audit dan Lembaga untuk semakan dan kelulusan.

Penilaian risiko turut dijalankan sebelum membuat komitmen sumber kepada projek-projek dan inisiatif baru, mengenal pasti kesannya terhadap operasi semasa dan objektif perniagaan, yang dilaporkan dalam kertas cadangan untuk kelulusan jawatankuasa pengurusan dan/atau lembaga.

Unsurkawalandalamanutamalain

Lembaga beriltizam untuk memastikan bahawa struktur kawalan dan persekitaran yang bersesuaian dikekalkan dalam Kumpulan bagi mencapai satu sistem kawalan dalaman yang utuh. Lembaga mempunyai unsur-unsur berikut:-

• Adalah wujud tanggungjawab dan bidangkuasa Jawatankuasa-Jawatankuasa Lembaga yang ditakrifkan secara jelas. Jawatankuasa-jawatankuasa ini melaporkan cadangan-cadangan mereka kepada Lembaga untuk semakan dan/atau kelulusan.

• Kumpulan mempunyai struktur organisasi yang mentakrifkan dengan jelas sempadan tanggungjawab dan perwakilan kuasa bagi menjamin pengenalpastian kebertanggungjawaban dan pengasingan tugas yang sesuai.

• Polisi dan tatacara operasi yang mengandungi peraturan dan keperluan dalaman adalah ditentukan di dalam Piawaian Tatacara Operasi (Standard Operating Procedures) dan pekeliling. Dokumen-dokumen tersebut dikemaskini bila perlu bagi memenuhi keperluan operasi yang sentiasa berubah.

• Lembaga bermesyuarat setiap sukuan tahunan untuk menyemak operasi dan prestasi kewangan Kumpulan berbanding belanjawan yang diluluskan, meluluskan laporan sukuan tahunan kepada Bursa Malaysia dan membincangkan isu-isu yang memerlukan kelulusan Lembaga. Selain itu, Lembaga juga dikemaskini dengan perubahan dalam persekitaran perniagaan yang boleh memberi kesan buruk kepada prestasi perniagaan dan tindakan berkaitan yang diambil.


StatementonStatementonRiskManagementInternalControl (continued)PenyataPengurusanRisikodanKawalanDalaman (sambungan)

• The Audit Committee, with the assistance of the Internal Audit Department provides an independent assessment on the adequacy, efficiency and effectiveness of the Group’s internal control system and advises management on areas that require improvement. The Internal audit unit also reviews the extent to which its recommendations have been accepted and implemented by the management.

• Internal audit reports are tabled at the Audit Committee meetings, who in turn reports to the Board its assessments and recommendations. Internal control deficiencies and issues highlighted are addressed by the management appropriately.

Conclusion

The system of risk management and internal control described in this statement is considered by the Board to be adequate within the context of the business environment throughout the Group’s businesses. The Board continues to take appropriate initiatives to enhance the internal control system to ensure that it remains relevant over time in the continually evolving business environment.

Reviewofthestatementbyexternalauditors

The external auditors have reviewed this Statement on Risk Management and Internal Control for inclusion in the annual report for the year ended 31 December 2015. Based on their review, nothing has come to their attention that cause them to believe that the Statement on Risk Management and Internal Control to be included in the annual report is inconsistent with their understanding of the process the Board of Directors has adopted in the review of the adequacy and effectiveness of the risk management and internal control systems of the Group.

This statement is made in accordance with the resolution of the Board of Directors dated 22 February 2016.

• Ketua Pegawai Eksekutif bermesyuarat secara bulanan dengan kesemua ketua bahagian dan unit perniagaan untuk menyemak prestasi Kumpulan berbanding belanjawan, isu-isu perniagaan termasuk perihal kawalan dalaman dan pengurusan risiko.

• Belanjawan tahunan dibincangkan secara terperinci di antara pihak pengurusan di ibu pejabat dan peringkat unit perniagaan sebelum dibentangkan kepada Lembaga untuk semakan, pertimbangan dan kelulusan.

• Jawatankuasa Audit, dengan bantuan Jabatan Audit Dalaman, menyediakan penilaian bebas terhadap kecukupan, kecekapan dan keberkesanan sistem kawalan dalaman Kumpulan dan menasihati pengurusan mengenai perkara-perkara yang memerlukan penambahbaikan. Unit audit dalaman juga menyemak sejauh mana cadangan-cadangannya diterima dan dilaksanakan oleh pihak pengurusan.

• Laporan audit dalaman dibentangkan di dalam mesyuarat Jawatankuasa Audit, yang kemudiannya melaporkan penilaian dan cadangannya kepada Lembaga. Kekurangan dalam kawalan dalaman dan isu-isu yang ditekankan adalah ditangani oleh pihak pengurusan dengan sewajarnya.

Kesimpulan

Sistem kawalan dalaman yang diterangkan dalam penyata ini adalah dianggap oleh Lembaga sebagai mencukupi dalam konteks persekitaran perniagaan keseluruhan Kumpulan. Lembaga sentiasa mengambil langkah-langkah bersesuaian untuk menambahbaik sistem kawalan dalaman bagi memastikan ia terus relevan mengikut masa dalam persekitaran perniagaan yang sentiasa berubah.

Semakanpenyataolehjuruauditluar

Juruaudit luar telah menyemak Penyata Pengurusan Risiko dan Kawalan Dalaman untuk dimasukkan ke dalam laporan tahunan bagi tahun berakhir 31 Disember 2015. Berdasarkan semakan mereka, tiada sebarang perkara yang ditemui yang menyebabkan mereka percaya bahawa Penyata Pengurusan Risiko dan kawalan dalaman yang akan dimasukkan ke dalam laporan tahunan tidak konsisten dengan pemahaman mereka terhadap proses yang diterima pakai Lembaga Pengarah dalam mengkaji kecukupan dan keberkesanan pengurusan risiko dan sistem kawalan dalaman Kumpulan.

Penyata ini dibuat selaras dengan resolusi Lembaga Pengarah bertarikh 22 Februari 2016.


AHLI-AHLI DAN MESYUARAT

Jawatankuasa Audit terdiri daripada tiga orang pengarah bebas bukan eksekutif dan seorang pengarah bukan bebas bukan eksekutif. Jawatankuasa tersebut telah mengadakan lima (5) mesyuarat di sepanjang tahun kewangan. Maklumat ahli dan kehadiran mesyuarat adalah seperti berikut:

Bil. Kehadiran Mesyuarat

Tuan Haji Jusoh bin AliPengerusi (Bebas, Bukan Eksekutif) 5/5

Dato’HajiWanNawawibinWanIsmail(Bukan Bebas, Bukan Eksekutif) 4/5

En. Rosli bin Abd Rahman (Bebas, Bukan Eksekutif) 5/5

TuanHajiAzakibinCheEndut(Bebas, Bukan Eksekutif) 4/4Meninggal pada 31/10/2015

Juruaudit Luar adalah dijemput menghadiri mesyuarat apabila penyata kewangan tahunan dibentangkan. Pengurus Kanan Audit Dalaman, Ketua Pegawai Eksekutif dan Pengurus Kewangan Kumpulan menghadiri mesyuarat-mesyuarat yang membentangkan laporan audit dalaman dan untuk membentangkan prestasi kewangan Syarikat dan Kumpulan.

Pihak pengurusan kanan Kumpulan yang lain turut menghadiri sebahagian mesyuarat tersebut atas jemputan Pengerusi Jawatankuasa.

RINGKASAN AKTIVITI

Di dalam tempoh, Jawatankuasa Audit telah melaksanakan tugas-tugas sepertimana yang ditetapkan dalam terma rujukan. Isu-isu utama lain yang dibincangkan oleh Jawatankuasa Audit adalah seperti berikut:i. Menyemak Rancangan Audit Tahunan bagi tahun 2015

untuk memastikan bidang dan liputan yang mencukupi ke atas aktiviti-aktiviti Kumpulan.

ii. Menyemak enam (6) laporan audit dalaman yang di sediakan oleh Jabatan Audit Dalaman ke atas penemuan dan cadangan berkenaan dengan sistem dan kelemahan kawalan yang ditemui semasa kerja-kerja audit dan maklumbalas pengurusan yang berkenaan dan memastikan penemuan yang penting ditangani sebaik-baiknya oleh pihak pengurusan.

iii. Menyemak keputusan sukuan tahunan Kumpulan dan membuat cadangan untuk kelulusan Lembaga.

iv. Menyemak mana-mana urusniaga pihak berkaitan dan keadaan pertindihan kepentingan yang timbul dalam Kumpulan.

MEMBERS AND MEETINGS

The Audit Committee comprises of three independent non-executive and one non-independent non-executive Directors of the Board. The Committee had five (5) meetings during the financial year. Details of the members and the attendance of the meetings are as follows:

No. of Meetings Attended

Tuan Haji Jusoh bin AliChairman (Independent Non-Executive) 5/5

Dato’HajiWanNawawibinWanIsmail(Non-Independent Non-Executive) 4/5

En. Rosli bin Abd Rahman (Independent Non-Executive) 5/5

TuanHajiAzakibinCheEndut(Independent Non-Executive) 4/4Demised on 31/10/2015

The External Auditor was invited to attend the meeting when the annual financial statements was being tabled. The Internal Audit Senior Manager, the Chief Executive Officer and the Group Finance Manager were in attendance at the meetings to table the internal audit reports and to present the performance results of the Company and the Group.

Other members of senior management of the Group attended some of these meetings upon invitation by the Chairman of the Committee.

SUMMARY OF ACTIVITIES

During the period, the Audit Committee carried out its duties as set out in the terms of reference. Other main issues discussed by the Audit Committee were as follows:i. Reviewed the Annual Audit Plan for the year 2015 to ensure

adequate scope and coverage over the activities of the Group.

ii. Reviewed a total of Six (6) internal audit reports presented by the Internal Audit Department on findings and recommendations with regards to system and control weaknesses noted in the course of their audit and management’s response thereto and ensuring material findings are adequately addressed by management.

iii. Reviewed the quarterly results of the Group and made recommendations to the Board for approval.

iv. Reviewed any related party transactions and conflict of interest situation that arose within the Group.

v. Evaluate the performance of the external auditors and made recommendations to the Board on their appointment, scope of work and audit fees.

Report on Audit CommitteeLaporanJawatankuasaAudit


INTERNAL AUDIT FUNCTIONS

The Group has its own Internal Audit Department, which carries out the internal audit function and assists the Audit Committee in ensuring compliance with the established policies and procedures, monitoring significant risks, highlighting on areas that need improvement and reviews to the extent that its recommendations in addressing the internal control issues are implemented. The Internal Auditors report directly to the Audit Committee and assist the Board of Directors in monitoring significant exposures to risks and contribute to the improvement of internal control system.

The role of the Internal Audit Department is to provide the Committee with independent and objective reports on the state of the internal control of the various operating subsidiaries within the Group and the extent of compliance of the operating subsidiaries with the established policies and procedures. The scope of the Internal Audit covers the audits of all operating subsidiaries. The Internal Audit carries out audit assignments based on an audit plan that is reviewed and approved by the Audit Committee.

The Group practices risk-based approach auditing and monitoring of controls. The monitoring process also forms the basis for continually improving the risk management process in the Group’s overall goals.

During the year under review, the Internal Audit Department carried out audit assignments on various operating subsidiaries of the Group. Audit reports were issued to the Audit Committee and respective companies incorporating findings and recommendations with regard to the system and control weaknesses noted during the course of the audit and management’s responses on the audit findings. The Internal Audit Department also followed up on implementation and disposition of all findings and recommendations.

During the year, all the internal audit activities were performed in-house and the total cost incurred was RM289,631 comprising of manpower, training, travelling and accommodation.

The Audit Committee Report was made in accordance with the resolution of the Board of Directors duly passed on 22 February 2016.

v. Menilai prestasi juruaudit luar dan membuat cadangan kepada Lembaga ke atas pelantikan, bidang kerja dan yuran audit.

FUNGSI AUDIT DALAMAN

Kumpulan memiliki Jabatan Audit Dalaman sendiri yang melaksanakan fungsi audit dalaman dan membantu Jawatankuasa Audit dalam memastikan pematuhan terhadap polisi dan peraturan yang telah ditetapkan, mengawasi risiko-risiko ketara, mengenengahkan perkara-perkara yang memerlukan penambahbaikan dan menilai sehingga cadangan-cadangan bagi menangani isu-isu kawalan dalaman adalah dilaksanakan. Juruaudit Dalaman melaporkan secara terus kepada Jawatankuasa Audit dan membantu Lembaga Pengarah mengawasi pendedahan ketara ke atas risiko-risiko dan menyumbang ke arah peningkatan dalam sistem kawalan dalaman.

Peranan Jabatan Audit Dalaman ialah untuk menyediakan kepada Jawatankuasa laporan yang bebas dan saksama terhadap kedudukan kawalan dalaman pelbagai subsidiari yang aktif dalam Kumpulan dan tahap pematuhan subsidiari-subsidiari yang aktif tersebut terhadap polisi dan peraturan yang telah ditetapkan. Audit dalaman menjalankan tugasan audit berasaskan perancangan audit yang diteliti dan diluluskan oleh Jawatankuasa Audit.

Kumpulan mengamalkan pendekatan berasaskan risiko dan pengawasan kawalan. Proses pengawasan juga menjadi asas bagi penambahbaikan pengurusan risiko yang berterusan sebagai matlamat menyeluruh Kumpulan.

Dalam tahun semasa, Jabatan Audit Dalaman menjalankan kerja-kerja audit terhadap pelbagai subsidiari yang aktif dalam Kumpulan. Laporan audit dikemukakan kepada Jawatankuasa Audit dan syarikat-syarikat yang berkenaan dengan menyertakan penemuan dan cadangan ke atas sistem dan kelemahan kawalan yang ditemui semasa audit dan maklumbalas pihak pengurusan ke atas penemuan audit. Bahagian Audit Dalaman juga membuat susulan ke atas pelaksanaan serta penyelesaian ke atas segala penemuan dan cadangan.

Pada tahun semasa, semua aktiviti audit dalaman dilaksanakan secara dalaman dan jumlah kos yang ditanggung ialah RM289,631 yang terdiri daripada tenaga kerja, latihan, perjalanan dan penginapan.

Laporan Jawatankuasa Audit telah dibuat selaras dengan resolusi Lembaga Pengarah yang diluluskan pada 22 Februari 2016.

Report on Audit Committee (continued)LaporanJawatankuasaAudit(sambungan)


MEMBERSHIP

1 The Committee shall be appointed by the Board of Directors amongst the Directors of the Company which fulfils the following requirements:- (a) the Committee must be composed of no fewer

than three (3) members;

(b) all of the Committee must be non-executive directors and financially literate, with a majority of them being Independent Directors; and

(c) at least one member of the 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 3 years’ working experience and:

(aa) he must have passed the examinations specified in Part 1 of the 1st Schedule of the Accountants Act 1967; or

(bb) he must be a member of one of the associations of accountants specified in Part II of the 1st Schedule of the Accountants Act 1967;

(cc) fulfils such other requirements as prescribed or approved by the Exchange.

2 The members of the Committee shall elect a Chairman from among themselves who shall be an Independent Director.

3 No Alternate Director shall be appointed as a member of the Committee.

4 In the event of any vacancy in the Committee resulting in the non-compliance of the listing requirement of the Bursa Malaysia pertaining to composition of audit committee, the Board of Directors shall within three months of that event fill the vacancy.

5 The terms of office and performance of the Committee and each of its members must be reviewed by the Board of Directors at least once every 3 years to determine whether the Committee and its members have carried out their duties in accordance with their terms of reference.

KEAHLIAN

1 Jawatankuasa perlu dilantik oleh Lembaga Pengarah daripada kalangan para Pengarah Syarikat yang memenuhi kriteria berikut:

(a) Jawatankuasa mestilah mengandungi tidak kurang

daripada tiga (3) orang ahli;

(b) kesemua Jawatankuasa mestilah terdiri daripada para pengarah bukan eksekutif dan mempunyai pengetahuan kewangan, dengan majoritinya adalah Pengarah Bebas;dan

(c) sekurang-kurangnya seorang ahli Jawatankuasa:

(i) hendaklah merupakan ahli Institut Akauntan Malaysia; atau

(ii) jika beliau bukan seorang ahli Institut Akauntan Malaysia, beliau hendaklah mempunyai sekurang kurangnya 3 tahun pengalaman bekerja dan:

(aa) beliau hendaklah lulus peperiksaan yang ditetapkan dalam Bahagian I Jadual Pertama Akta Akauntan, 1967; atau

(bb) beliau hendaklah merupakan seorang ahli persatuan akauntan yang ditetapkan dalam Bahagian II Jadual Pertama Akta Akauntan, 1967.

(cc) memenuhi lain-lain syarat yang ditetapkan oleh atau diluluskan oleh Bursa.

2 Ahli-ahli Jawatankuasa perlu memilih seorang Pengerusi daripada kalangan mereka yang hendaklah merupakan Pengarah Bebas.

3 Pengarah silih ganti tidak boleh dilantik sebagai ahli Jawatankuasa.

4 Sekiranya berlaku sebarang kekosongan di dalam Jawatankuasa yang menyebabkan syarat keperluan penyenaraian Bursa Malaysia berkenaan komposisi jawatankuasa audit tidak dipatuhi, Lembaga perlu mengisi kekosongan tersebut dalam tempoh tiga bulan.

5 Syarat perkhidmatan dan prestasi Jawatankuasa dan setiap ahli hendaklah dinilai oleh Lembaga Pengarah sekurang-kurangnya sekali setiap 3 tahun bagi menentukan samada Jawatankuasa dan ahli melaksanakan tugasan mereka sejajar dengan terma rujukan mereka.

Terms of Reference of Audit CommitteeTermaRujukanJawatankuasaAudit


MEETINGS

1 Frequency

(a) Meetings shall be held not less than four times a year.

(b) Upon the request of the external auditor, the Chairman of the Committee shall convene a meeting of the Committee to consider any matter the external auditor believes should be brought to the attention of the Directors or shareholders.

2 Quorum

(a) A quorum shall consist of a majority of Independent Directors.

3 Secretary(a) The Company Secretary shall be the Secretary of

the Committee or in his absence, another person authorised by the Chairman of the Committee.

4 Attendance

(a) The Chief Executive Officer, the Internal Audit Manager, the Group Finance Manager, and the representative of the external auditor shall normally attend meetings.

(b) Other Directors and employees may attend any particular meeting only at the Committee’s invitation, specific to the relevant meeting.

(c) At least once a year, the Committee shall meet with the external auditors without any executive Board members present.

5 Reporting Procedure

(a) The minutes of each meeting shall be circulated to all members of the Board.

6 Meeting Procedure

The Committee shall regulate its own procedure, in particular:-

(a) the calling of meetings;

(b) the notice to be given of such meetings;

(c) the voting and proceedings of such meetings;

(d) the keeping of minutes; and

(e) the custody, production and inspection of such minutes.

MESYUARAT

1 Kekerapan

(a) Mesyuarat hendaklah diadakan tidak kurang daripada empat kali setiap tahun.

(b) Di atas permintaan Juruaudit Luar, Pengerusi Jawatankuasa hendaklah mengadakan mesyuarat Jawatankuasa untuk mempertimbangkan sebarang perkara yang Juruaudit Luar percaya perlu diketengahkan untuk perhatian para Pengarah atau pemegang saham.

2 Korum

(a) Korum hendaklah majoritinya terdiri daripada Pengarah Bebas.

3 Setiausaha

(a) Setiausaha Syarikat hendaklah bertindak sebagai Setiausaha Jawatankuasa atau sekiranya beliau tidak hadir, orang yang diberi kuasa oleh Pengerusi Jawatankuasa.

4 Kehadiran

(a) Ketua Pegawai Eksekutif, Pengurus Audit Dalaman, Pengawal Kewangan Kumpulan, dan wakil daripada Juruaudit Luar pada kebiasaannya menghadiri mesyuarat.

(b) Lain-lain Pengarah dan pekerja boleh menghadiri mesyuarat tertentu hanya dengan jemputan Jawatankuasa, khusus untuk mesyuarat yang berkenaan.

(c) Sekurang-kurangnya sekali setahun, Jawatankuasa hendaklah bermesyuarat dengan Juruaudit Luar tanpa kehadiran ahli eksekutif Lembaga.

5 Peraturan Laporan

(a) Minit setiap mesyuarat hendaklah diedarkan kepada kesemua ahli Lembaga.

6 Peraturan Mesyuarat

Jawatankuasa hendaklah menetapkan peraturan mereka sendiri, terutamanya:-

(a) panggilan mesyuarat;

(b) notis yang perlu diberikan bagi mesyuarat tersebut;

(c) pengundian dan perjalanan mesyuarat tersebut;

(d) penyimpanan minit-minit; dan

(e) penjagaan, pengeluaran dan penyemakan minit-minit tersebut.

Terms of Reference of Audit Committee (continued)

TermaRujukanJawatankuasaAudit (sambungan)


7 Circular Resolution

(a) Circular Resolutions signed by all the members shall be valid and effective as if it had been passed at a meeting of the Committee.

RIGHTS

The Committee in performing its duties shall in accordance with a procedure to be determined by the Board of Directors:

(a) have authority to investigate any matter within its terms of reference;

(b) have the resources which are required to perform its duties;

(c) have full and unrestricted access to any information pertaining to the Company;

(d) have direct communication channels with the external auditor and person(s) carrying out the internal audit function or activity;

(e) be able to obtain independent professional or other advice; and

(f) be able to convene meetings with external auditors, the internal auditors or both, excluding the attendance of other directors and employees of the Company, whenever deemed necessary.

FUNCTIONS

The Committee shall, amongst others, discharge the following functions:

1 To review with the external auditor:

(a) the audit plan;

(b) his evaluation of the system of internal controls;

(c) his audit report; and

(d) his management letter and management’s response;

2 To review:

(a) the assistance given by the Company’s employees to the external auditor;

(b) the quarterly results and year end financial statements, prior to the approval by the Board of Directors, focusing particularly on:-

(i) the going concern assumption;

(ii) changes in or implementation of major accounting policy changes;

(iii) significant and unusual events; and

7 Resolusi Pekeliling

(a) Resolusi Pekeliling yang ditandatangani oleh kesemua ahli adalah sah dan berkuatkuasa sepertimana ianya telah diluluskan dalam mesyuarat Jawatankuasa.

BIDANG KUASA

Jawatankuasa dalam melaksanakan tugasannya hendaklah sejajar dengan peraturan yang akan ditentukan oleh Lembaga Pengarah:

(a) mempunyai kuasa untuk menyiasat sebarang perkara dalam terma rujukannya;

(b) mempunyai sumber yang diperlukan untuk menjalankan tugasnya;

(c) mempunyai akses sepenuhnya dan tanpa halangan kepada sebarang maklumat yang berkaitan dengan Syarikat;

(d) mempunyai saluran komunikasi langsung dengan Juruaudit Luar dan orang-orang yang menjalankan fungsi atau aktiviti audit dalaman;

(e) boleh mendapatkan nasihat profesional bebas atau nasihat lain; dan

(f) boleh mengadakan mesyuarat dengan juruaudit luar, juruaudit dalaman atau kedua-duanya, tanpa kehadiran lain-lain pengarah dan pekerja Syarikat, apabila dianggap perlu.

FUNGSI

Jawatankuasa perlu, antara lain, melaksanakan fungsi-fungsi berikut:

1 Menyemak bersama dengan Juruaudit Luar:

(a) perancangan audit;

(b) penilaian mereka terhadap sistem kawalan dalaman;

(c) laporan audit mereka; dan

(d) surat pengurusan dan maklumbalas pihak pengurusan;

2 Untuk menyemak:

(a) bantuan yang diberikan oleh pekerja Syarikat kepada Juruaudit Luar;

(b) keputusan sukuan tahuan dan penyata kewangan akhir tahun, sebelum kelulusan Lembaga Pengarah, menumpukan terutamanya:-

(i) andaian kesinambungan perniagaan;

(ii) perubahan dalam atau pelaksanaan perubahan dasar perakaunan utama;






(iv) compliance with accounting standards and other legal requirements.

(c) any related party transaction and conflict of interest situation that may arise within the Company or group including any transaction, procedure or course of conduct that raises questions or management integrity.

(d) the Statement of Corporate Governance prior to the approval by the Board of Directors.

3 In respect of the appointment of external auditors:

(a) to review whether there is reason (supported by grounds) to believe that the external auditors is not suitable for reappointment;

(b) to consider the nomination of a person or persons as external auditors and the audit fee;

(c) to consider any questions of resignation or dismissal of external auditors.

4 In respect of the internal audit function:

(a) to review the adequacy of the scope, functions, competency and resources of the internal audit function and that it has the necessary authority to carry out its work;

(b) to review the internal audit programme, processes, 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 audit function;

(c) to review any appraisal or assessment of the performance of members of the internal audit function;

(d) to approve any appointment or termination of senior staff members of the internal audit function;

(e) to inform itself of any resignation of internal audit staff member and provide the resigning staff member an opportunity to submit his reasons for resigning.

(f) the internal audit function must be independent of the activities it audits; the internal audit activity should be free from interference in determining the scope of internal audit, performing work, and communicating results; and

(g) the internal audit function reports directly to the Audit Committee.

(iii) peristiwa penting dan luarbiasa; dan

(iv) pematuhan kepada piawaian perakaunan dan keperluan perundangan yang lain.

(c) sebarang urusniaga pihak berkaitan dan keadaan pertindihan kepentingan yang mungkin timbul dalam Syarikat atau Kumpulan termasuklah sebarang urusniaga, peraturan atau tata laku yang menimbulkan persoalan atau kewibawaan pihak pengurusan.

(d) Penyata Tadbir Urus Korporat sebelum kelulusan Lembaga Pengarah.

3 Berkaitan dengan perlantikan Juruaudit Luar:

(a) untuk menyemak samada wujud sebab (yang berasas) untuk mempercayai bahawa Juruaudit Luar tidak sesuai untuk dilantik semula;

(b) untuk menimbang pencalonan orang atau orang-orang sebagai Juruaudit Luar dan yuran audit;

(c) untuk menimbang sebarang persoalan mengenai perletakan jawatan atau pemecatan Juruaudit Luar.

4 Berkaitan dengan fungsi juruaudit dalaman:

(a) mengkaji kecukupan skop, fungsi, kecekapan dan sumber bahagian audit dalaman dan bahawa ia mempunyai kuasa yang diperlukan untuk menjalankan tugasannya;

(b) mengkaji rancangan audit dalaman, proses, keputusan rancangan audit dalaman, proses atau penyiasatan yang dijalankan dan samada tindakan yang sepatutnya diambil ke atas cadangan bahagian audit dalaman;

(c) mengkaji sebarang penilaian atau penaksiran prestasi ahli bahagian audit dalaman.

(d) untuk meluluskan sebarang perlantikan atau penamatan kakitangan kanan ahli bahagian audit dalaman.

(e) untuk memaklumkan kepada diri mereka mengenai sebarang pemberhentian kakitangan audit dalaman dan memberi peluang kepada kakitangan yang akan berhenti untuk menjelaskan sebab-sebab dia berhenti.

(f) bahagian audit dalaman mestilah bebas daripada aktiviti yang diauditnya; aktiviti audit dalaman hendaklah bebas daripada gangguan dalam menentukan skop audit dalaman, perlaksanaan kerja, dan pemberitahuan keputusan; dan

(g) bahagian audit dalaman melaporkan terus kepada Jawatankuasa Audit.


5 To promptly report such matter to the Bursa Malaysia if the Committee is of the view that the matter reported by it to the Board of Directors has not been satisfactorily resolved resulting in a breach of the Listing Requirements.

6 To carry out such other functions as may be agreed to

by the Committee and the Board of Directors. 7 To verify, at the end of each financial year, the allocation

of options under a share scheme for employees to ensure compliance with the allocation criteria determined by the ESOS Committee and in accordance with the Bye-Laws of the relevant Option Scheme.

A statement by the Committee verifying such allocation shall be included in the annual report.

5 Untuk melaporkan dengan segera perkara seumpamanya kepada Bursa Malaysia jika Jawatankuasa berpandangan bahawa perkara yang dilaporkankan oleh mereka kepada Lembaga Pengarah tidak diselesaikan dengan memuaskan menyebabkan pelanggaran Keperluan Penyenaraian.

6 Untuk menjalankan lain-lain fungsi seumpamanya yang

dipersetujui oleh Jawatankuasa dan Lembaga Pengarah. 7 Untuk mengesahkan, pada setiap akhir tahun kewangan,

peruntukan opsyen di bawah skim saham untuk pekerja bagi menentukan kepatuhan dengan kriteria pembahagian yang ditentukan oleh Jawatankuasa ESOS dan selari dengan Undang-Undang Kecil Skim Opsyen yang berkenaan.

Penyata oleh Jawatankuasa yang mengesahkan pembahagian tersebut perlu dimasukkan di dalam laporan tahunan.




1 Lot 6720 & 6721, Industrial land 12,141 99 years 25 years 7,584,414 Jalan Perak leasehold Telok Panglima Garang expiring on State of Selangor 11.6.2086 2 P.T. No. 105 H.S. (D) 496 Plywood mill 219,850 60 years 33 years 8,449,779 Mukim of Ulu Paka, leasehold District of Dungun expiring on State of Terengganu 14.7.2042 3 Lot No. 1431, 1432 and 1433 3 units hostel 2,359 99 years 33 years 276,211 Bandar Al-Muktafi leasehold Billah Shah expiring on District of Dungun 15.4.2096 State of Terengganu 4 Lot No. 3164 3.5 storey 130 Freehold 22 years 921,000 Mukim of Batu Burok office building District of Kuala Terengganu State of Terengganu 5 P.T. No. 109 H.S. (D) 569 Vacant 48,980 60 years - 1,532,305 Mukim of Ulu Paka industrial land leasehold District of Dungun expiring on State of Terengganu 24.2.2058 6 Lot No. 2049 Vacant 138,000 60 years - 3,721,819 Mukim of Ulu Paka industrial land leasehold District of Dungun expiring on State of Terengganu 17.6.2060 7 Lot No. 2050 Vacant 48,420 60 years - 1,305,334 Mukim of Ulu Paka industrial land leasehold District of Dungun expiring on State of Terengganu 17.6.2060 8 Lot No. 2051 Vacant 17,840 60 years - 480,060 Mukim of Ulu Paka industrial land leasehold District of Dungun expiring on State of Terengganu 17.6.2060 9 Lot No. 7348 Sawmill 145,682 30 years 35 years 5,941,245 Mukim of Jerangau leasehold District of Dungun expiring on State of Terengganu 4.3.2038 10 Lot No. 16388 & 16389 Vacant 23,518 30 years - 581,795 Mukim of Kuala Paka industrial land leasehold District of Dungun expiring on State of Terengganu 15.10.2037

List of Properties

Properties Description LandArea Tenure Ageof NetBookvalue (sq. metre) of land building 31/12/2015 (RM)


List of Properties (continued)

11 Lot No. 743 Vacant 25,231 60 years - 1,090,910 Mukim of Telok Kalong industrial land leasehold District of Kemaman expiring on State of Terengganu 25.4.2029 12 P.T. 6401 1 unit 7,834 60 years 21 years 563,215 Mukim of Jerangau single storey leasehold District of Dungun office expiring on State of Terengganu 24.9.2054 13 Lot No. 12556 Sawmill and 35,728 50 years 40 years 7,258,588 Mukim of Chukai timber leasehold District of Kemaman downstream expiring on State of Terengganu processing 15.10.2045 14 Lot No. 9803 Sawmill and 31,126 60 years 40 years 4,089,337 Mukim of Chukai timber leasehold District of Kemaman downstream expiring on State of Terengganu processing 22.2.2053 15 Lot No S22-33 1 unit single 133 Freehold - 25,000 Perumahan Jalan Kenari storey terrace 44110 Lembah Beringin house State of Selangor 16 Lot No S22-44 1 unit single 133 Freehold - 25,000 Perumahan Jalan Kenari storey terrace 44110 Lembah Beringin house State of Selangor 17 Lot No. PT 60056 Vacant 198,290 60 years - 12,728,968 Mukim of Banggol industrial land leasehold District of Kemaman expiring on State of Terengganu 21.2.2071

Properties Description LandArea Tenure Ageof NetBookvalue (sq. metre) of land building 31/12/2015 (RM)


Hartanah Keterangan Keluasan Tempoh Usia NilaiBukuBersih (meterpersegi) pajakan bangunan 31/12/2015 (RM)

1 Lot 6720 & 6721, Tanah industri 12,141 99 tahun 25 tahun 7,584,414 Jalan Perak pajakan Telok Panglima Garang tamat pada Negeri Selangor 11.6.2086 2 P.T. No. 105 H.S. (D) 496 Kilang papan 219,850 60 tahun 33 tahun 8,449,779 Mukim Ulu Paka, lapis pajakan Daerah Dungun tamat pada Negeri Terengganu 14.7.2042 3 Lot No. 1431, 1432 dan 1433 3 units asrama 2,359 99 tahun 33 tahun 276,211 Bandar Al-Muktafi pajakan Billah Shah tamat pada Daerah Dungun 15.4.2096 Negeri Terengganu 4 Lot No. 3164 Bangunan 130 Pegangan 22 years 921,000 Mukim of Batu Burok pejabat bebas Daerah Kuala Terengganu 3.5 tingkat Negeri Terengganu 5 P.T. No. 109 H.S. (D) 569 Tanah industri 48,980 60 tahun - 1,532,305 Mukim Ulu Paka kosong pajakan Daerah Dungun tamat pada Negeri Terengganu 24.2.2058 6 Lot No. 2049 Tanah industri 138,000 60 tahun - 3,721,819 Mukim Ulu Paka kosong pajakan Daerah Dungun tamat pada Negeri Terengganu 17.6.2060 7 Lot No. 2050 Tanah industri 48,420 60 tahun - 1,305,334 Mukim Ulu Paka kosong pajakan Daerah Dungun tamat pada Negeri Terengganu 17.6.2060 8 Lot No. 2051 Tanah industri 17,840 60 tahun - 480,060 Mukim Ulu Paka kosong pajakan Daerah Dungun tamat pada Negeri Terengganu 17.6.2060 9 Lot No. 7348 Kilang papan 145,682 30 tahun 35 tahun 5,941,245 Mukim Jerangau pajakan Daerah Dungun tamat pada Negeri Terengganu 4.3.2038 10 Lot No. 16388 & 16389 Tanah industri 23,518 30 tahun - 581,795 Mukim Kuala Paka kosong pajakan Daerah Dungun tamat pada Negeri Terengganu 15.10.2037

Senarai Hartanah


Hartanah Keterangan Keluasan Tempoh Usia NilaiBukuBersih (meterpersegi) pajakan bangunan 31/12/2015 (RM)

11 Lot No. 743 Tanah industri 25,231 60 tahun - 1,090,910 Mukim Telok Kalong kosong pajakan Daerah Kemaman tamat pada Negeri Terengganu 25.4.2029 12 P.T. 6401 1 unit 7,834 60 tahun 21 tahun 563,215 Mukim Jerangau pejabat pajakan Daerah Dungun setingkat tamat pada Negeri Terengganu 24.9.2054 13 Lot No. 12556 Kilang papan 35,728 50 tahun 40 tahun 7,258,588 Mukim Chukai dan pajakan Daerah Kemaman pemprosesan tamat pada Negeri Terengganu hiliran 15.10.2045 14 Lot No. 9803 Kilang papan 31,126 60 tahun 40 tahun 4,089,337 Mukim Chukai dan pajakan Daerah Kemaman pemprosesan tamat pada Negeri Terengganu hiliran 22.2.2053 15 Lot No S22-33 1 unit rumah 133 Pegangan - 25,000 Perumahan Jalan Kenari teres 1 tingkat bebas 44110 Lembah Beringin Negeri Selangor 16 Lot No S22-44 1 unit rumah 133 Pegangan - 25,000 Perumahan Jalan Kenari teres 1 tingkat bebas 44110 Lembah Beringin Negeri Selangor 17 Lot No. PT 60056 Tanah industri 198,290 60 tahun - 12,728,968 Mukim Banggol kosong pajakan Daerah Kemaman tamat pada Negeri Terengganu 21.2.2071

Senarai Hartanah (sambungan)

ContentsDirectors’ Report and Audited Financial Statements31 December 2015

56-57 Directors’ report

58 Statement by directors

58 Statutory declaration

59-60 Independent auditors’ report to the members

61 Statementsofprofitorlossand other comprehensive income

62 Statementsoffinancialposition

63-64 Statements of changes in equity

65-66 Statementsofcashflows

67-117 Notestothefinancialstatements

118 Supplementary information


ThedirectorsherebysubmittheirreporttogetherwiththeauditedfinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended31December2015. Principal activities

TheprincipalactivitiesoftheCompanyareinvestmentholdingandprovisionofmanagementservicestothesubsidiaries. TheprincipalactivitiesofthesubsidiariesandassociatesoftheGrouparestatedinNotes16and17tothefinancialstatementsrespectively.

Therehavebeennosignificantchangesinthenatureoftheprincipalactivitiesduringthefinancialyear. Results Group Company RM’000 RM’000 Lossnetoftax 2,533 1,547 Therewerenomaterial transfers toor from reservesorprovisionsduring thefinancial yearother thanasdisclosed in thefinancialstatements.

Intheopinionofthedirectors,theresultsoftheoperationsoftheGroupandoftheCompanyduringthefinancialyearwerenotsubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature.

Dividends

Nodividendswerepaidordeclaredsincetheendofthepreviousfinancialyear.Thedirectorsdonotrecommendthepaymentofanydividendinrespectofthecurrentfinancialyear.

Directors ThenamesofthedirectorsoftheCompanyinofficesincethedateofthelastreportandatthedateofthisreportare: Dato’ Haji Abdul Rahman bin Bakar Haji Jusoh bin Ali Dato’ Haji Osman bin Muda Dato’ Sabri bin Mohd Noor Dato’HajiWanNawawibinHajiWanIsmail Mohamad Nor bin Ibrahim Rosli bin Abd Rahman AzakibinCheEndut (deceasedon31October2015)

Directors’ benefits Neither at theendof thefinancial year, nor at any timeduring that year, did there subsist anyarrangement towhich theCompanywasaparty,wherebythedirectorsmightacquirebenefitsbymeansoftheacquisitionofsharesinordebenturesoftheCompanyoranyotherbodycorporate. Since the endof thepreviousfinancial year, nodirector has receivedor becomeentitled to receive abenefit (other thanbenefitsincludedintheaggregateamountofemolumentsreceivedordueandreceivablebythedirectorsorthefixedsalaryofafull-timeemployeeoftheCompanyasshowninNote11tothefinancialstatements)byreasonofacontractmadebytheCompanyorarelatedcorporationwithanydirectororwithafirmofwhichheisamember,orwithacompanyinwhichhehasasubstantialfinancialinterest. Directors’ interests

Accordingtotheregisterofdirectors’shareholdings,noneofthedirectorswhoheldofficeattheendofthefinancialyear,hadanyinterestinsharesintheCompanyoritsrelatedcorporationsduringthefinancialyear.

Directors’ Report


Directors’ Report (continued)

Other statutory information (a) Beforethestatementsofprofitorlossandothercomprehensiveincomeandstatementsoffinancialpositionofthe GroupandoftheCompanyweremadeout,thedirectorstookreasonablesteps: (i) toascertainthatproperactionhadbeentakeninrelationtothewritingoffofbaddebtsandthemakingof provisionfordoubtfuldebtsandsatisfiedthemselvesthattherewerenoknownbaddebtsandthatadequate provision had been made for doubtful debts; and

(ii) toensurethatanycurrentassetswhichwereunlikelytorealisetheirvalueasshownintheaccountingrecords intheordinarycourseofbusinesshadbeenwrittendowntoanamountwhichtheymightbeexpectedsoto realise.

(b) Atthedateofthisreport,thedirectorsarenotawareofanycircumstanceswhichwouldrender: (i) it necessary towrite off any bad debts or the amount of the provision for doubtful debts in the financial statementsoftheGroupandoftheCompanyinadequatetoanysubstantialextent;and

(ii) the values attributed to the current assets in the financial statements of the Group and of the Company misleading. (c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence to the existingmethod of valuation of assets or liabilities of theGroup and of theCompany misleadingorinappropriate.

(d) Atthedateofthisreport,thedirectorsarenotawareofanycircumstancesnototherwisedealtwithinthisreportor thefinancialstatementsoftheGroupandoftheCompanywhichwouldrenderanyamountstatedinthefinancial statementsmisleading.

(e) Atthedateofthisreport,theredoesnotexist: (i) anychargeontheassetsoftheGrouporoftheCompanywhichhasarisensincetheendofthefinancialyear whichsecurestheliabilitiesofanyotherperson;or (ii) anycontingentliabilityoftheGrouporoftheCompanywhichhasarisensincetheendofthefinancialyear. (f) Intheopinionofthedirectors: (i) nocontingentorotherliabilityhasbecomeenforceableorislikelytobecomeenforceablewithintheperiodof twelvemonthsaftertheendofthefinancialyearwhichwillormayaffecttheabilityoftheGrouporofthe Companytomeettheirobligationswhentheyfalldue;and

(ii) noitem,transactionoreventofamaterialandunusualnaturehasarisenintheintervalbetweentheendofthe financialyearandthedateofthisreportwhichislikelytoaffectsubstantiallytheresultsoftheoperationsofthe GrouporoftheCompanyforthefinancialyearinwhichthisreportismade. Auditors

Theauditors,Ernst&Young,haveexpressedtheirwillingnesstocontinueinoffice. SignedonbehalfoftheBoardinaccordancewitharesolutionofthedirectorsdated11April2016. Dato’ Haji Abdul Rahman bin Bakar Haji Jusoh bin Ali


Statement by DirectorsPursuant to Section 169(15) of the Companies Act 1965

Statutory DeclarationPursuant to Section 169(16) of the Companies Act 1965

We,Dato’HajiAbdulRahmanbinBakarandHajiJusohbinAli,beingtwoofthedirectorsofGoldenPharosBerhad,doherebystatethat,intheopinionofthedirectors,theaccompanyingfinancialstatementssetoutonpages61to117aredrawnupinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct1965inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31December2015andoftheirfinancialperformanceandcashflowsfortheyearthenended.

TheinformationsetoutinNote37tothefinancialstatementshavebeenpreparedinaccordancewiththeGuidanceonSpecialMatterNo. 1,Determination of Realised andUnrealised Profits or Losses in theContext ofDisclosure Pursuant to BursaMalaysiaSecuritiesBerhadListingRequirements,asissuedbytheMalaysianInstituteofAccountants.

SignedonbehalfoftheBoardinaccordancewitharesolutionofthedirectorsdated11April2016.

Dato’ Haji Abdul Rahman bin Bakar Haji Jusoh bin Ali

I,SyukribinAli,beingtheofficerprimarilyresponsibleforthefinancialmanagementofGoldenPharosBerhad,dosolemnlyandsincerelydeclarethattheaccompanyingfinancialstatementssetoutonpages61to118areinmyopinioncorrect,andI make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory DeclarationsAct1960.

Subscribed and solemnly declared by the abovenamed Syukri bin Ali at Kuala Terengganu inthestateofTerengganuDarulImanon11April2016. SyukribinAli

Beforeme,


Independent Auditors’ Report to the members of Golden Pharos Berhad (Incorporated in Malaysia)

Report on the financial statements WehaveauditedthefinancialstatementsofGoldenPharosBerhad,whichcomprisethestatementsoffinancialpositionasat31December2015oftheGroupandoftheCompany,andthestatementsofprofitorlossandothercomprehensiveincome,statementsofchangesinequityandstatementsofcashflowsoftheGroupandoftheCompanyfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation,assetoutonpages61to117. Directors’ responsibility for the financial statements

ThedirectorsoftheCompanyareresponsibleforthepreparationoffinancialstatementssoastogiveatrueandfairviewinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct1965inMalaysia.Thedirectorsarealsoresponsibleforsuchinternalcontrolasthedirectorsdetermineisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditors’ responsibility Our responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit inaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependonourjudgement,includingtheassessmentofrisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheentity’spreparationofthefinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalso includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates madebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements. Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion. Opinion Inouropinion,thefinancialstatementsgiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31December2015andoftheirfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct1965inMalaysia.

InaccordancewiththerequirementsoftheCompaniesAct1965inMalaysia,wealsoreportthefollowing: (a) Inouropinion,theaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyandits subsidiarieshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct. (b) Wearesatisfiedthatthefinancialstatementsofthesubsidiariesthathavebeenconsolidatedwiththefinancialstatements oftheCompanyareinformandcontentappropriateandproperforthepurposesofthepreparationoftheconsolidated financialstatementsandwehavereceivedsatisfactoryinformationandexplanationsrequiredbyusforthosepurposes. (c) Theauditors’ reportson thefinancial statementsof thesubsidiarieswerenotsubject toanyqualificationanddidnot includeanycommentrequiredtobemadeunderSection174(3)oftheAct.


Other reporting responsibilities ThesupplementaryinformationsetoutinNote37onpage118isdisclosedtomeettherequirementofBursaMalaysiaSecuritiesBerhad and is not part of the financial statements.The directors are responsible for the preparation of the supplementaryinformationinaccordancewithGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosurePursuanttoBursaMalaysiaSecuritiesBerhadListingRequirement,asissuedbytheMalaysianInstituteofAccountants(“MIAGuidance”)andthedirectiveofBursaMalaysiaSecuritiesBerhad.Inouropinion,thesupplementaryinformationisprepared,inallmaterialrespects,inaccordancewiththeMIAGuidanceandthedirectiveofBursaMalaysiaSecuritiesBerhad.

Other matters This report ismadesolely to themembersof theCompany,asabody, inaccordancewithSection174of theCompaniesAct1965inMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport. Ernst&Young SandraSegarana/lMuniandy@KrishnanAF:0039 No.2882/01/17(J)CharteredAccountants CharteredAccountant

KualaTerengganu,TerengganuDarulIman,Malaysia 11April2016

Independent Auditors’ Report to the members of Golden Pharos Berhad (continued) (Incorporated in Malaysia)


Statements of Profit or Loss and Other Comprehensive Income for the financial year ended 31 December 2015

Group Company Note 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Revenue 4 74,099 106,354 3,089 11,179Costofsales (63,755) (73,005) - - Gross profit 10,344 33,349 3,089 11,179 Other items of income Interestincome 5 345 323 3 27 Dividend income from investment securities 6 122 169 - - Otherincome 7 845 2,397 185 10 Other items of expense Selling and distribution expenses (1,812) (2,172) - - Administrative expenses (12,759) (13,108) (4,333) (20,336) Financecosts 8 (1,199) (512) (905) (328) Other expenses (347) (314) - - Share of results of an associate 906 263 - - (Loss)/profit before tax 9 (3,555) 20,395 (1,961) (9,448) Incometaxbenefit/(expense) 12 1,022 (5,549) 414 82 (Loss)/profit net of tax (2,533) 14,846 (1,547) (9,366)

Other comprehensive income: Itemsthatwillbereclassified subsequentlytoprofitorloss: Loss on fair value changes of available-for-salefinancialassets (1,085) (1,230) - - Net loss on remeasurement of definedbenefitobligations (1,500) - (89) - Other comprehensive loss, net of tax (2,585) (1,230) (89) - Total comprehensive (loss)/income for the year (5,118) 13,616 (1,636) (9,366) (Loss)/earnings per share attributable to owners of the parent (sen per share) -BasicandDiluted 13 (1.88) 11.03

Theaccompanyingaccountingpoliciesandexplanatoryinformationformanintegralpartofthefinancialstatements.


Statements of Financial Position as at 31 December 2015


Group Company Note 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000

AssetsNon-current assets Property,plantandequipment 14 67,452 68,569 8,270 8,478Goodwill 15 - - - - Investmentsinsubsidiaries 16 - - 45,021 45,021Investmentsinassociates 17 1,169 263 - - Deferredtaxassets 18 505 211 - - Investmentsecurities 19 6,672 7,758 - -

75,798 76,801 53,291 53,499 Current assets Inventories 20 7,821 13,054 - - Tradeandotherreceivables 21 12,873 14,581 3,137 3,304Prepayments 4,304 3,614 3 254Tax recoverable 3,896 785 - - Cashandbankbalances 22 18,511 19,883 244 632

47,405 51,917 3,384 4,190

Total assets 123,203 128,718 56,675 57,689 Equity and liabilities Current liabilities Retirementbenefitobligations 24 508 281 - - Borrowings 23 1,137 1,818 82 88Tradeandotherpayables 25 28,321 30,674 29,659 29,633Tax payable 103 34 - -

30,069 32,807 29,741 29,721

Net current assets/(liabilities) 17,336 19,110 (26,357) (25,531)

Non-current liabilities Retirementbenefitobligations 24 8,037 6,000 431 236Deferredtaxliabilities 18 712 1,937 - 414Borrowings 23 1,657 1,190 283 228Otherpayables 25 - - - 1

10,406 9,127 714 879 Total liabilities 40,475 41,934 30,455 30,600

Net assets 82,728 86,784 26,220 27,089 Equity attributable to owners of the parent Sharecapital 26 67,273 67,273 67,273 67,273Sharepremium 26 625 625 625 625Retainedearnings/(accumulatedlosses) 32,055 36,088 (42,645) (41,009)Otherreserves 27 (17,225) (17,202) 967 200

Total equity 82,728 86,784 26,220 27,089 Total equity and liabilities 123,203 128,718 56,675 57,689


Statements of Changes in Equityfor the financial year ended 31 December 2015

At

trib

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le to

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m

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RM

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RM

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R

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RM

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R

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RM

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Gro

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Ope

ning

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86

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67,27

3

625

36,08

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(17,20

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200

5,316

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Lossfortheyear

(2

,533

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-

(2,533

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-

-

-

Oth

er c

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-Fairvalueadjustmentreserve

27

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-

-

(1,085

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rem

easu

rem

ent o

f

definedbenefitobligations

24

(1,500

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-

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-

-

-

Totalcom

prehensiv

eloss

(5

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-

(4,033

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Transactionwithowners

Waivero

famountdueto

ash

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27

1,062

-

-

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1,062

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2,72

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Ope

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ary

2014

73

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67,27

3

625

21,24

2

(15,97

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200

6,546

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Profitfortheyear

14,84

6

-

-

14,84

6

-

--

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Oth

er c

ompr

ehen

sive

loss

-Fairvalueadjustmentreserve

27

(1,230

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--

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Totalcom

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eincome/(lo

ss)

13,61

6

-

-

14,84

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Clos

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86,78

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67,27

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625

36,088

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5,31

6

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8)

Theaccompanyingaccountingpo

liciesandexplanatoryinform

ationform

anintegralpartofthefinancialstatements.


Statements of Changes in Equityfor the financial year ended 31 December 2015 (continued)

Non-distributable Equity contribution Equity, Share Share Accumulated Other from total capital premium losses reserve owners Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 (Note 26) (Note 26) Company

Opening balance at 1January2015 27,089 67,273 625 (41,009) 200 200

Lossfortheyear (1,547) - - (1,547) - -

Other comprehensive loss - Net loss on remeasurement of definedbenefit obligations 24 (89) - - (89) - -

Totalcomprehensiveloss (1,636) - - (1,636) - -

Transactionwithowners

Waiver of amount due to

ashareholder 27 767 - - - 767 767

Closing balance at 31 December 2015 26,220 67,273 625 (42,645) 967 967

Opening balance at 1 January 2014 36,455 67,273 625 (31,643) 200 200

Totalcomprehensiveloss (9,366) - - (9,366) - -

Closing balance at 31 December 2014 27,089 67,273 625 (41,009) 200 200



Statements of Cash Flowsfor the financial year ended 31 December 2015

Group Company Note 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000

Operating activities

(Loss)/profitbeforetax (3,555) 20,395 (1,961) (9,448)

Adjustmentsfor:

Dividend income

-Investmentsinsubsidiaries 4 - - (636) (8,726)

-Investmentsecurities 6 (122) (169) - -

ProfitfromAl-Mudharabah 7 (25) (20) (1) -

Financecosts 8 1,199 512 905 328

Depreciationofproperty,plantandequipment 9 4,397 4,550 329 293

Impairmentlossoninventories 9 - 33 - -

Gainondisposalofproperty,plant

andequipment 7 (160) (135) (50) -

Property,plantandequipmentwrittenoff 9 172 22 111 1

Impairmentlossesontradeandotherreceivables 9 211 582 326 16,465

Reversal of impairment losses on trade and

otherreceivables 7 (136) - - -

Interestincome 5 (345) (323) (3) (27)

Netunrealisedforeignexchangegain 7 (56) (48) - -

Shareofresultsofassociate (906) (263) - -

Provisionforretirementbenefitobligations 10 999 630 106 34

Provisionforshort-termaccumulating

compensatedabsences 10 95 97 12 25

Totaladjustments 5,323 5,468 1,099 8,393

Operating cash flows before changes in working

capital 1,768 25,863 (862) (1,055)

Changesinworkingcapital:

Decreaseininventories 5,232 5,618 - -

Decrease/(increase)intradeandotherreceivables 1,643 1,440 (169) 553

(Increase)/decreaseinprepayments (702) 1,412 253 (249)

(Decrease)/increaseintradeandotherpayables (2,252) (8,122) 48 (7,244)

Totalchangesinworkingcapital 3,921 348 132 (6,940)


Group Company Note 2015 2014 2015 2014

RM’000 RM’000 RM’000 RM’000

Operating activities (continued)

Cash flows from/(used in) operations 5,689 26,211 (730) (7,995)

ProfitfromAl-Mudharabah 25 20 1 -

Financecosts (133) (113) - -

Incometaxespaid (3,542) (5,106) - -

Retirementbenefitsobligationspaid 24 (235) (98) - -

Net cash flows from/(used in) operating activities 1,804 20,914 (729) (7,995)

Investing activities

Purchaseofproperty,plantandequipment 14 (1,987) (3,121) (85) (271)

Proceedsfromdisposalofproperty,

plantandequipment 311 182 153 -

Placementofdepositsinlicensedbanks - 203 - -

Dividend received

-Investmentsecurities 122 81 - -

-Investmentsinsubsidiaries - - 491 8,726

Profitsharingandinterestreceived 345 323 1 26

Net cash flows (used in)/from investing activities (1,209) (2,332) 560 8,481

Financing activities

Drawdownfromborrowings 1,519 303 - -

Repaymentofborrowings (1,472) (2,852) - -

Repaymentofobligationsunderfinanceleases (927) (514) (201) (86)

Costoffundandinterestpaid (137) (18) (18) (10)

Net cash flows used in financing activities (1,017) (3,081) (219) (96)

Net (decrease)/increase in cash and cash equivalents (422) 15,501 (388) 390

Cash and cash equivalents at 1 January 17,899 2,398 632 242

Cash and cash equivalents at 31 December 22 17,477 17,899 244 632

Statements of Cash Flowsfor the financial year ended 31 December 2015 (continued)



1. Corporate information

The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the MainMarketofBursaMalaysiaSecuritiesBerhad.TheregisteredofficeoftheCompanyislocatedatLotPT3071,Kawasan PerindustrianChendering,21080KualaTerengganu,TerengganuDarulIman. Theprincipalplaceofbusinessof theCompany is locatedat66-2TamanSri Intan, JalanSultanOmar,20300Kuala Terengganu,TerengganuDarulIman. TheholdingcompanyisTerengganuIncorporatedSdn.Bhd.,acompanyincorporatedinMalaysia. TheprincipalactivitiesoftheCompanyareinvestmentholdingandprovisionofmanagementservicestothesubsidiaries. TheprincipalactivitiesofthesubsidiariesandassociatesaresetoutinNotes16and17respectively. Therehavebeennosignificantchangesinthenatureoftheprincipalactivitiesduringthefinancialyear. 2. Summary of significant accounting policies 2.1 Basis of preparation The financial statements of theGroup andof theCompany have been prepared in accordancewithMalaysian FinancialReportingStandards(“MFRS”),InternationalFinancialReportingStandards(“IFRS”)andtherequirements oftheCompaniesAct1965inMalaysia. ThefinancialstatementsoftheGroupandoftheCompanyarepreparedunderthehistoricalcostconventionexcept asdisclosedinthesummaryofsignificantaccountingpolicies. ThefinancialstatementsarepresentedinRinggitMalaysia(“RM”)andallvaluesareroundedtothenearestthousand (RM’000)exceptwhenotherwiseindicated. 2.2 Changes in accounting policies Theaccountingpoliciesadoptedareconsistentwiththoseofthepreviousfinancialyearexceptasfollows: On1January2015,theGroupandtheCompanyadoptedthefollowingnewandamendedMFRSsmandatoryfor annualfinancialperiodsbeginningonorafter1January2015.

Effective for annual periods Description beginning or after AmendmentstoMFRS119:DefinedBenefitPlans:EmployeeContributions 1July2014 AnnualImprovementstoMFRSs2010-2012Cycle 1July2014 AnnualImprovementstoMFRSs2011-2013Cycle 1July2014 ThenatureandimpactofthenewandamendedMFRSsaredescribedbelow: Amendments to MFRS 119 Defined Benefit Plans: Employee Contributions TheamendmentstoMFRS119clarifyhowanentityshouldaccountforcontributionsmadebyemployeesorthird parties todefinedbenefitplans,basedonwhether thosecontributionsaredependenton thenumberofyearsof serviceprovidedbytheemployee.Forcontributionsthatareindependentofthenumberofyearsofservice,anentity ispermittedtorecognisesuchcontributionsasareductionintheservicecostintheperiodinwhichtheserviceis rendered,insteadofallocatingthecontributionstotheperiodsofservice.Forcontributionsthataredependenton thenumberofyearsofservice,theentityisrequiredtoattributethemtotheemployees’periodsofservice. Theseamendmentshavebeenappliedretrospectively.Theapplicationof theseamendmentshashadnomaterial impactonthedisclosuresortheamountsrecognisedintheGroup’sfinancialstatements.

Notes to the Financial Statementsfor the financial year ended 31 December 2015


Notes to the Financial Statementsfor the financial year ended 31 December 2015 (continued)

2. Summary of significant accounting policies (continued) 2.2 Changes in accounting policies (continued) Annual Improvements to MFRSs 2010–2012 Cycle TheAnnualImprovementstoMFRSs2010-2012CyclewhichincludeanumberofamendmentstovariousMFRSs, whichareapplicabletotheGroupandtheCompany,aresummarisedbelow. Standards Descriptions MFRS 3 Business Theamendments toMFRS3clarify that contingent considerationclassifiedas liabilities (or Combinations assets)shouldbemeasuredatfairvaluethroughprofitorlossateachreportingdate,irrespective ofwhetherthecontingentconsiderationisafinancialinstrumentwithinthescopeofMFRS9or MFRS139.Theamendmentsareeffectiveforbusinesscombinationsforwhichtheacquisition dateisonorafter1July2014.ThisisconsistentwiththeGroup’scurrentaccountingpolicyand thus,theamendmentsdidnotimpacttheGroup. MFRS 116 Property, The amendments remove inconsistencies in the accounting for accumulated depreciation or Plant and amortisationwhenanitemofproperty,plantandequipmentoranintangibleassetisrevalued. Equipment and The amendments clarify that the asset may be revalued by reference to observable data by MFRS 138 either adjusting the gross carrying amount of the asset to market value or by determining the Intangible Assets market value of the carrying value and adjusting the gross carrying amount proportionately so that the resulting carrying amount equals the market value. In addition, the accumulated depreciationoramortisationisthedifferencebetweengrossandcarryingamountsoftheasset. TheamendmentsdidnothaveanyimpactontheGroup. MFRS 124 The amendments clarify that a management entity providing key management personnel services Related Party to a reporting entity is a related party of the reporting entity.The reporting entity should Disclosures disclose as related party transactions the amounts incurred for the service paid or payable to the managemententityfortheprovisionofkeymanagementpersonnelservices.Theamendments arenotapplicabletotheGroupastheGroupdoesnotreceiveanymanagementservicesfrom otherentities. Annual Improvements to MFRSs 2011–2013 Cycle TheAnnualImprovementstoMFRSs2011-2013CycleincludeanumberofamendmentstovariousMFRSs,which applicabletotheGroupandtheCompanyaresummarisedbelow.TheGroupandtheCompanyhaveappliedthe amendmentsforthefirsttimeinthecurrentyear. Standard Description MFRS 13 Fair Value TheamendmentstoMFRS13clarifythattheportfolioexceptioninMFRS13canbeapplied Measurement notonlytofinancialassetsandfinancialliabilities,butalsotoothercontractswithinthescope ofMFRS9(orMFRS139asapplicable).TheGroupdoesnotapplytheportfolioexception. 2.3 Standards issued but not yet effective ThestandardsandinterpretationsthatareissuedbutnotyeteffectiveuptothedateofissuanceoftheGroup’sand theCompany’sfinancialstatementsaredisclosedbelow.TheGroupandtheCompanyintendtoadoptthesestandards, ifapplicable,whentheybecomeeffective.



2. Summary of significant accounting policies (continued)

2.3 Standards issued but not yet effective (continued) Effective for annual periods Description beginning or after AnnualImprovementstoMFRSs2012–2014Cycle 1January2016 AmendmentstoMFRS116andMFRS139:Clarificationof AcceptableMethodsofDepreciationandAmortisation 1January2016 AmendmentstoMFRS116andMFRS141:Agriculture;BearerPlants 1January2016 AmendmentstoMFRS10andMFRS128:SaleandContributionof AssetsbetweenanInvestoranditsAssociateandJointVenture Deferred AmendmentstoMFRS11:AccountingforAcquisitionsofInterestsin JointOperations 1January2016 AmendmentstoMFRS127;EquityMethodinSeparateFinancialStatements 1January2016 AmendmentstoMFRS101:Disclosureinitiatives 1January2016 AmendmentstoMFRS10,MFRS12andMFRS128:Investment Entities:ApplyingtheConsolidationException 1January2016 MFRS14RegulatoryDeferralAccounts 1January2016 MFRS15RevenuefromContractswithCustomers 1January2018 MFRS9FinancialInstruments 1January2018 Amendments to MFRS 116 and MFRS 138: Clarification of Acceptable Methods of Depreciation and Amortisation Theamendmentsclarify thatrevenuereflectsapatternofeconomicbenefits thataregeneratedfromoperatinga business (of which the asset forms part of the business) rather than the economic benefits that are consumed throughtheuseofanasset.Asaresult,arevenue-basedmethodcannotbeusedtodepreciateproperty,plantand equipmentandmayonlybeusedinverylimitedcircumstancestoamortiseintangibleassets. Theamendmentsareeffectiveprospectively forannualperiodsbeginningonorafter1 January2016,withearly adoptionpermitted.TheseamendmentsarenotexpectedtohaveanyimpacttotheGroupastheGrouphasnot usedarevenue-basedmethodtodepreciateitsnon-currentassets. Amendments to MFRS 101: Disclosure Initiatives TheamendmentstoMFRS101includenarrow-focusimprovementsinthefollowingfiveareas: • Materiality • Disaggregationandsubtotals • Notesstructure • Disclosureofaccountingpolicies • Presentationofitemsofothercomprehensiveincomearisingfromequityaccountedinvestments ThedirectorsdonotanticipatethattheapplicationoftheseamendmentswillhaveamaterialimpactontheGroup’s andtheCompany’sfinancialstatements. Amendments to MFRS 10, MFRS 12 and MFRS 128: Investment Entities: Applying the Consolidation Exception Theamendmentsclarifythattheexemptionfrompresentingconsolidatedfinancialstatementsappliestoaparent entity that is a subsidiary of an investment entity,when the investment entitymeasures all of its subsidiaries at fairvalue.Theamendmentsfurtherclarifythatonlyasubsidiarythatisnotaninvestmententityitselfandprovides supportservicestotheinvestmententityisconsolidated.Inaddition,theamendmentsalsoprovidesthatifanentity thatisnotitselfaninvestmententityhasaninterestinanassociateorjointventurethatisaninvestmententity,the entitymay,whenapplyingtheequitymethod,retainthefairvaluemeasurementappliedbythatinvestmententity associateorjointventuretotheinvestmententityassociate’sorjointventure’sinterestsinsubsidiaries.




2.3 Standards issued but not yet effective (continued) Amendments to MFRS 10, MFRS 12 and MFRS 128: Investment Entities: Applying the Consolidation Exception (continued) The amendments are to be applied retrospectively and are effective for annual periods beginning on or after 1 January2016,withearlyadoptionpermitted.TheseamendmentswillnothaveanyimpactontheGroup’sandthe Company’sfinancialstatements. MFRS 15 Revenue from Contracts with Customers MFRS15establishesanewfive-stepmodelsthatwillapplytorevenuearisingfromcontractswithcustomers.MFRS 15willsupersedethecurrentrevenuerecognitionguidanceincludingMFRS118Revenue,MFRS111Construction Contractsandtherelatedinterpretationswhenitbecomeseffective. ThecoreprincipleofMFRS15isthatanentityshouldrecogniserevenuewhichdepictthetransferofpromisedgoods orservicestocustomersinanamountthatreflectstheconsiderationtowhichtheentityexpectstobeentitledin exchangeforthosegoodsorservices. UnderMFRS15,anentityrecognisesrevenuewhen(oras)aperformanceobligationissatisfied,i.ewhen“control” ofthegoodsorservicesunderlyingtheparticularperformanceobligationistransferredtothecustomer. Eitherafullormodifiedretrospectiveapplicationisrequiredforannualperiodsbeginningonorafter1January2018 withearlyadoptionpermitted.ThedirectorsanticipatethattheapplicationofMFRS15willhaveamaterialimpact ontheamountsreportedanddisclosuresmadeintheGroup’sandtheCompany’sfinancialstatements.TheGroupis currentlyassessingtheimpactofMFRS15andplanstoadoptthenewstandardontherequiredeffectivedate. MFRS 9 Financial Instruments InNovember2014,MASBissuedthefinalversionofMFRS9FinancialInstrumentswhichreflectsallphasesofthe financial instruments project and replacesMFRS 139 Financial Instruments: Recognition andMeasurement and allpreviousversionsofMFRS9.The standard introducesnew requirements forclassificationandmeasurement, impairmentandhedgeaccounting.MFRS9iseffectiveforannualperiodsbeginningonorafter1January2018, withearlyapplicationpermitted.Retrospectiveapplicationisrequired,butcomparativeinformationisnotcompulsory. TheadoptionofMFRS9willhaveaneffectontheclassificationandmeasurementoftheGroup’sfinancialassets, butnoimpactontheclassificationandmeasurementoftheGroup’sfinancialliabilities. Annual Improvements to MFRSs 2012–2014 Cycle TheAnnualImprovementstoMFRSs2012-2014CyclewhichincludeanumberofamendmentstovariousMFRSs, whichareapplicabletotheGroupandtheCompany,aresummarisedbelow.Thedirectorsdonotanticipatethatthe application of these amendments will have a significant impact on the Group’s and the Company’s financial statements. Standards Descriptions MFRS 7 Financial Theamendmentclarifiesthataservicingcontractthatincludesafeecanconstitutecontinuing Instruments: involvementinafinancialasset.Anentitymustassessthenatureofthefeeandarrangement Disclosures against the guidance for continuing involvement inMFRS7 in order to assesswhether the disclosuresarerequired. Inaddition,theamendmentalsoclarifiesthatthedisclosuresinrespectofoffsettingoffinancial assetsandfinancialliabilitiesarenotrequiredinthecondensedinterimfinancialreport.




2.3 Standards issued but not yet effective (continued) Annual Improvements to MFRSs 2012–2014 Cycle (continued)

Standards Descriptions MFRS 119 Theamendment toMFRS119clarifies thatmarketdepthofhighqualitycorporatebonds is Employee Benefits assessedbasedonthecurrencyinwhichtheobligationisdenominated,ratherthanthecountry wheretheobligationislocated.Whenthereisnodeepmarketforhighqualitycorporatebonds inthatcurrency,governmentbondratesmustbeused. 2.4 Basis of consolidation TheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompanyanditssubsidiariesasat thereportingdate.Thefinancialstatementsofthesubsidiariesusedinthepreparationoftheconsolidatedfinancial statementsarepreparedforthesamereportingdateastheCompany.Consistentaccountingpoliciesareappliedto liketransactionsandeventsinsimilarcircumstances. TheCompanycontrolsaninvesteeifandonlyiftheCompanyhasallthefollowing: (i) Powerovertheinvestee(i.eexistingrightsthatgiveitthecurrentabilitytodirecttherelevantactivitiesoftheinvestee); (ii) Exposure,orrights,tovariablereturnsfromitsinvestmentwiththeinvestee;and (iii) Theabilitytouseitspowerovertheinvesteetoaffectitsreturns. WhentheCompanyhaslessthanamajorityofthevotingrightsofaninvestee,theCompanyconsidersthefollowing inassessingwhetherornottheCompany’svotingrightsinaninvesteearesufficienttogiveitpowerovertheinvestee: (i) ThesizeoftheCompany’sholdingofvotingrightsrelativetothesizeanddispersionofholdingsoftheother vote holders; (ii) PotentialvotingrightsheldbytheCompany,othervoteholdersorotherparties; (iii) Rightsarisingfromothercontractualarrangements;and (iv) AnyadditionalfactsandcircumstancesthatindicatethattheCompanyhas,ordoesnothave,thecurrentability todirecttherelevantactivitiesatthetimethatdecisionsneedtobemade,includingvotingpatternsatprevious shareholders’meetings. SubsidiariesareconsolidatedwhentheCompanyobtainscontroloverthesubsidiaryandceaseswhentheCompany loses control of the subsidiary.All intra-group balances, income and expenses and unrealised gains and losses resultingfromintra-grouptransactionsareeliminatedinfull. Losseswithinasubsidiaryareattributedtothenon-controllinginterestsevenifthatresultsinadeficitbalance. ChangesintheGroup’sownershipinterestsinsubsidiariesthatdonotresultintheGrouplosingcontroloverthe subsidiariesareaccountedforasequitytransactions.Thecarryingamountsof theGroup’sinterestsandthenon- controlling interestsareadjustedtoreflect thechanges in theirrelative interests in thesubsidiaries.Theresulting differenceisrecogniseddirectlyinequityandattributedtoownersoftheCompany.

WhentheGrouplosescontrolofasubsidiary,againorlosscalculatedasthedifferencebetween(i)theaggregate ofthefairvalueoftheconsiderationreceivedandthefairvalueofanyretainedinterestand(ii)thepreviouscarrying amountoftheassetsandliabilitiesofthesubsidiaryandanynon-controllinginterest,isrecognisedinprofitorloss. Thesubsidiary’scumulativegainorlosswhichhasbeenrecognisedinothercomprehensiveincomeandaccumulated inequityarereclassifiedtoprofitorlossorwhereapplicable,transferreddirectlytoretainedearnings.Thefairvalue of any investment retained in the former subsidiary at the date control is lost is regarded as the cost on initial recognitionoftheinvestment.



2. Summary of significant accounting policies (continued) 2.4 Basis of consolidation (continued) Business combinations Acquisitionsofsubsidiariesareaccountedforusingtheacquisitionmethod.Thecostofanacquisitionismeasured as theaggregateof theconsideration transferred,measuredatacquisitiondate fairvalueand theamountofany non-controllinginterestsintheacquiree.TheGroupelectsonatransaction-by-transactionbasiswhethertomeasure the non-controlling interests in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiablenetassets.Transactioncostsincurredareexpensedandincludedinadministrativeexpenses. Anycontingentconsiderationtobetransferredbytheacquirerwillberecognisedat fairvalueat theacquisition date.Subsequentchangesinthefairvalueofthecontingentconsiderationwhichisdeemedtobeanassetorliability, willberecognised inaccordancewithMFRS139either inprofitor lossorasachange toothercomprehensive income.Ifthecontingentconsiderationisclassifiedasequity,itwillnotberemeasured.Subsequentsettlementis accountedforwithinequity.IninstanceswherethecontingentconsiderationdoesnotfallwithinthescopeofMFRS 139,itismeasuredinaccordancewiththeappropriateMFRS. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification anddesignation in accordancewith the contractual terms, economic circumstances andpertinent conditionsasattheacquisitiondate.Thisincludestheseparationofembeddedderivativesinhostcontractsbytheacquiree. Ifthebusinesscombinationisachievedinstages,theacquisitiondatefairvalueoftheacquirer’spreviouslyheld equityinterestintheacquireeisremeasuredtofairvalueattheacquisitiondatethroughprofitorloss. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and theamountrecognisedfornon-controllinginterestsoverthenetidentifiableassetsacquiredandliabilitiesassumed. Ifthisconsiderationislowerthanfairvalueofthenetassetsofthesubsidiaryacquired,thedifferenceisrecognised inprofitorloss.TheaccountingpolicyforgoodwillissetoutinNote2.7. 2.5 Subsidiaries AsubsidiaryisanentityoverwhichtheGrouphasallthefollowing: (i) Powerovertheinvestee(i.eexistingrightsthatgiveitthecurrentabilitytodirecttherelevantactivitiesofthe investee); (ii) Exposure,orrights,tovariablereturnsfromitsinvestmentwiththeinvestee;and (iii) Theabilitytouseitspowerovertheinvesteetoaffectitsreturns. IntheCompany’sseparatefinancialstatements,investmentsinsubsidiariesareaccountedforatcostlessimpairment losses.Ondisposalofsuchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsis includedinprofitorloss. 2.6 Investments in associates AnassociateisanentityinwhichtheGrouphassignificantinfluence.Significantinfluenceisthepowertoparticipate inthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontroloverthosepolicies. Onacquisitionofaninvestmentinassociate,anyexcessofthecostofinvestmentovertheGroup’sshareofthenet fair value of the identifiable assets and liabilities of the investee is recognised as goodwill and included in the carryingamountoftheinvestment.AnyexcessoftheGroup’sshareofthenetfairvalueoftheidentifiableassets and liabilities of the investee over the cost of investment is excluded from the carrying amount of the investment and isinsteadincludedasincomeinthedeterminationoftheGroup’sshareoftheassociate’sprofitorlossfortheperiod inwhichtheinvestmentisacquired.



2. Summary of significant accounting policies (continued) 2.6 Investments in associates (continued) Anassociateisequityaccountedforfromthedateonwhichtheinvesteebecomesanassociate. Undertheequitymethod,oninitialrecognitiontheinvestmentinanassociateisrecognisedatcost,andthecarrying amount is increasedordecreased to recognise theGroup’s shareof theprofitor loss andother comprehensive incomeoftheassociateafterthedateofacquisition.WhentheGroup’sshareoflossesinanassociateequalor exceeds its interest in theassociate, theGroupdoesnot recognise further losses,unless ithas incurred legalor constructiveobligationsormadepaymentsonbehalfoftheassociate. ProfitsandlossesresultingfromupstreamanddownstreamtransactionsbetweentheGroupanditsassociateare recognisedintheGroup’sfinancialstatementsonlytotheextentofunrelatedinvestors’interestsintheassociate. Unrealisedlossesareeliminatedunlessthetransactionprovidesevidenceofanimpairmentoftheassettransferred. The financial statements of the associates are prepared as of the same reporting date as the Company.Where necessary,adjustmentsaremadetobringtheaccountingpoliciesinlinewiththoseoftheGroup. After application of the equity method, the Group applies MFRS 139 Financial Instruments: Recognition and Measurement to determinewhether it is necessary to recognise any additional impairment losswith respect to its net investment in the associate.When necessary, the entire carrying amount of the investment is tested for impairment inaccordancewithMFRS136 ImpairmentofAssetsasa singleasset,bycomparing its recoverable amount (higherofvalueinuseandfairvaluelesscosts tosell)withitscarryingamount.Anyimpairment loss is recognisedinprofitorloss.Reversalofanimpairmentlossisrecognisedtotheextentthattherecoverableamount oftheinvestmentsubsequentlyincreases. IntheCompany’sseparatefinancialstatements,investmentsinassociatesareaccountedforatcostlessimpairment losses.Ondisposalofsuchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsis includedinprofitorloss. 2.7 Goodwill Goodwillisinitiallymeasuredatcost.Followinginitialrecognition,goodwillismeasuredatcostlessanyaccumulated impairmentlosses. Forthepurposeofimpairmenttesting,goodwillacquiredinabusinesscombinationis,fromtheacquisitiondate, allocatedtotheGroup’scash-generatingunitsthatareexpectedtobenefitfromthesynergiesofthecombination, irrespectiveofwhetherotherassetsorliabilitiesoftheacquireeareassignedtothoseunits. Thecash-generatingunitstowhichgoodwillhavebeenallocatedistestedforimpairmentannuallyandwhenever there is an indication that thecash-generatingunitmaybe impaired. Impairment isdetermined forgoodwillby assessing the recoverable amount of each cash-generatingunit (or groupof cash-generatingunits) towhich the goodwill relates.Wheretherecoverableamountof thecash-generatingunit is less thanthecarryingamount,an impairment loss is recognised in profit or loss. Impairment losses recognised for goodwill are not reversed in subsequentperiods. Wheregoodwillformspartofacash-generatingunitandpartoftheoperationwithinthatcash-generatingunitis disposedof,thegoodwillassociatedwiththeoperationdisposedofisincludedinthecarryingamountoftheoperation whendeterminingthegainorlossondisposaloftheoperation.Goodwilldisposedofinthiscircumstanceismeasured basedontherelativefairvaluesoftheoperationsdisposedofandtheportionofthecash-generatingunitretained.



2. Summary of significant accounting policies (continued) 2.8 Property, plant and equipment Allitemsofproperty,plantandequipmentareinitiallyrecordedatcost.Thecostofanitemofproperty,plantand equipmentisrecognisedasanassetif,andonlyif,itisprobablethatfutureeconomicbenefitsassociatedwiththe itemwillflowtotheGroupandthecostoftheitemcanbemeasuredreliably. Subsequenttorecognition,propertyandequipmentaremeasuredatcostlessaccumulateddepreciationandany accumulated impairment losses.When significant parts of property and equipment are required to be replaced in intervals, the Group recognises such parts as individual assets with specific useful lives and depreciation, respectively.Likewise,whenamajorinspectionisperformed,itscostisrecognisedinthecarryingamountofthe plantandequipmentasareplacementiftherecognitioncriteriaaresatisfied.Allotherrepairandmaintenancecosts arerecognisedinprofitorlossasincurred. Freeholdlandhasanunlimitedusefullifeandthereforeisnotdepreciated.Work-inprogressisalsonotdepreciated asthisassetisnotavailableforuse.Depreciationofotherproperty,plantandequipmentisprovidedforonastraight- linebasistowriteoffthecostofeachassettoitsresidualvalueovertheestimatedusefullivesoftheassets,atthe followingannualratesandusefullife:

Leaseholdland 50-60years Buildings 2%-5% Plantandmachinery 6%-20% Furniture,fittingsandequipment 5%-20% Motorvehicles 10%-20% Infrastructure 4%-20% The carrying values of property, plant and equipment are reviewed for impairmentwhen events or changes in circumstancesindicatethatthecarryingvaluemaynotberecoverable. The residual value, useful life and depreciationmethod are reviewed at each financial year-end, and adjusted prospectively,ifappropriate. Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofutureeconomicbenefitsare expectedfromitsuseordisposal.Anygainorlossonderecognitionoftheassetisincludedintheprofitorlossinthe yeartheassetisderecognised. 2.9 Impairment of non-financial assets TheGroupassessesateachreportingdatewhetherthereisanindicationthatanassetmaybeimpaired.Ifanysuch indicationexists,orwhenanannualimpairmentassessmentforanassetisrequired,theGroupmakesanestimateof theasset’srecoverableamount. Anasset’s recoverableamount is thehigherofanasset’s fairvalue lesscosts tosellanditsvalue inuse.For the purposeofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiable cashflows(cash-generatingunits(“CGU”)). Inassessingvalueinuse,theestimatedfuturecashflowsexpectedtobegeneratedbytheassetarediscountedto theirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoney andtherisksspecifictotheasset.Wherethecarryingamountofanassetexceedsitsrecoverableamount,theasset iswrittendowntoitsrecoverableamount.ImpairmentlossesrecognisedinrespectofaCGUorgroupsofCGUsare allocatedfirsttoreducethecarryingamountofanygoodwillallocatedtothoseunitsorgroupsofunitsandthen,to reducethecarryingamountoftheotherassetsintheunitorgroupsofunitsonapro-ratabasis.



2. Summary of significant accounting policies (continued) 2.9 Impairment of non-financial assets (continued)

Impairmentlossesarerecognisedinprofitorloss. An assessment ismade at each reporting date as towhether there is any indication that previously recognised impairmentlossesmaynolongerexistormayhavedecreased.Apreviouslyrecognisedimpairmentlossisreversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairmentlosswasrecognised.Ifthatisthecase,thecarryingamountoftheassetisincreasedtoitsrecoverable amount.Thatincreasecannotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciation, hadnoimpairmentlossbeenrecognisedpreviously.Suchreversalisrecognisedinprofitorloss,unlesstheassetis measuredatrevaluedamount,inwhichcasethereversalistreatedasarevaluationincrease.Impairmentlosson goodwillisnotreversedinasubsequentperiod. 2.10 Financial assets Financialassetsare recognised in thestatementsoffinancialpositionwhen,andonlywhen, theGroupand the Companybecomeapartytothecontractualprovisionsofthefinancialinstrument. Whenfinancialassetsarerecognisedinitially,theyaremeasuredatfairvalue,plus,inthecaseoffinancialassetsnot atfairvaluethroughprofitorloss,directlyattributabletransactioncosts. TheGroupand theCompanydetermine theclassificationof theirfinancial assets at initial recognition, and the categories includefinancialassetat fairvalue throughprofitor loss,held-to-maturity, loansand receivablesand available-for-salefinancialassets. TheGroupandtheCompanyhaveclassifiedtheirfinancialassetsasloansandreceivablesandavailable-for-sale financialassets.

(a) Loans and receivables Financialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarketareclassifiedas loansandreceivables.

Subsequenttoinitialrecognition,loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterest method,lessimpairment.Gainsandlossesarerecognisedinprofitorlosswhentheloansandreceivablesare derecognisedorimpaired,andthroughtheamortisationprocess. Loans and receivables are classifiedas current assets, except for thosehavingmaturitydates later than12 monthsafterthereportingdatewhichareclassifiedasnon-current. (b) Available-for-sale financial assets Available-for-salearefinancialassetsthataredesignatedasavailable-for-saleorarenotclassifiedasfinancial assetsatfairvaluethroughprofitorloss,loansandreceivablesorheld-to-maturityinvestments. Afterinitialrecognition,available-for-salefinancialassetsaremeasuredatfairvalue.Anygainsorlossesfrom changes in fair value of the financial assets are recognised in other comprehensive income, except that impairmentlosses,foreignexchangegainsandlossesonmonetaryinstrumentsandinterestcalculatedusing theeffectiveinterestmethodarerecognisedinprofitorloss.Thecumulativegainorlosspreviouslyrecognisedin othercomprehensiveincomeisreclassifiedfromequitytoprofitorlossasareclassificationadjustmentwhen thefinancialassetisderecognised.Interestincomecalculatedusingtheeffectiveinterestmethodisrecognised inprofitorloss.Dividendsonanavailable-for-salefinancialassetsarerecognisedinprofitorlosswhenthe Company’srighttoreceivepaymentisestablished.



2. Summary of significant accounting policies (continued) 2.10 Financial assets (continued)

(b) Available-for-sale financial assets (continued) Investments in equity instrumentswhose fair value cannot be reliablymeasured aremeasured at cost less impairmentloss. Available-for-salefinancialassetsareclassifiedasnon-currentassetsunlesstheyareexpectedtoberealised within12monthsafterthereportingdate. Investmentsinquotedsecuritiesaredesignatedasavailable-for-salefinancialassets. Afinancialassetisderecognisedwhenthecontractualrighttoreceivecashflowsfromtheassethasexpired.On derecognitionofafinancialasset in itsentirety, thedifferencebetween thecarryingamountand thesumof the consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is recognisedinprofitorloss. Regularwaypurchasesorsalesarepurchasesorsalesoffinancialassetsthatrequiredeliveryofassetswithinthe periodgenerallyestablishedbyregulationconventioninthemarketplaceconcerned.Allregularwaypurchasesand salesoffinancialassetsarerecognisedorderecognisedonthetradedatei.ethedatethattheGroupandtheCompany committopurchaseorselltheasset. 2.11 Impairment of financial assets TheGroupandtheCompanyassessateachreportingdatewhetherthereisanyobjectiveevidencethatafinancial assetisimpaired. (a) Trade and other receivables and other financial assets carried at amortised cost Todeterminewhetherthereisobjectiveevidencethatanimpairmentlossonfinancialassetshasbeenincurred, theGroupand theCompanyconsider factors such as theprobability of insolvencyor significant financial difficultiesofthedebtoranddefaultorsignificantdelayinpayments.Forcertaincategoriesoffinancialassets, suchastradereceivables,assetsthatareassessednottobeimpairedindividuallyaresubsequentlyassessed forimpairmentonacollectivebasisbasedonsimilarriskcharacteristics.Objectiveevidenceofimpairment for a portfolio of receivables could include theGroup’s and the Company’s past experience of collecting payments,anincreaseinthenumberofdelayedpaymentsintheportfoliopasttheaveragecreditperiodand observablechangesinnationalorlocaleconomicconditionsthatcorrelatewithdefaultonreceivables. Ifanysuchevidenceexists,theamountofimpairmentlossismeasuredasthedifferencebetweentheasset’s carryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthefinancialasset’soriginal effectiveinterestrate.Theimpairmentlossisrecognisedinprofitorloss. Thecarryingamountofthefinancialassetisreducedbytheimpairmentlossdirectlyforallfinancialassetswith theexceptionof trade receivables,where thecarryingamount is reduced through theuseofanallowance account.Whenatradereceivablebecomesuncollectible,itiswrittenoffagainsttheallowanceaccount. If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectivelytoaneventoccurringaftertheimpairmentwasrecognised,thepreviouslyrecognisedimpairment loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversaldate.Theamountofreversalisrecognisedinprofitorloss.



2. Summary of significant accounting policies (continued) 2.11 Impairment of financial assets (continued) (b) Unquoted equity securities carried at cost Ifthereisobjectiveevidence(suchassignificantadversechangesinthebusinessenvironmentwheretheissuer operates,probabilityof insolvencyor significantfinancialdifficultiesof the issuer) that an impairment loss onfinancial assetscarriedat costhasbeen incurred, theamountof the loss ismeasuredas thedifference betweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedat the currentmarketrateofreturnforasimilarfinancialasset.Suchimpairmentlossesarenotreversedinsubsequent periods. (c) Available-for-sale financial assets Significantorprolongeddeclineinfairvaluebelowcost,significantfinancialdifficultiesoftheissuerorobligor, andthedisappearanceofanactivetradingmarketareconsiderationstodeterminewhetherthereisobjective evidencethatinvestmentsecuritiesclassifiedasavailable-for-salefinancialassetsareimpaired. Ifanavailable-for-salefinancialassetisimpaired,anamountcomprisingthedifferencebetweenitscost(netof any principal payment and amortisation) and its current fair value, less any impairment loss previously recognisedinprofitorloss,istransferredfromothercomprehensiveincomeandrecognisedinprofitorloss. Impairmentlossesonavailable-for-saleequityinvestmentsarenotreversedinprofitorlossinthesubsequent periods. Increase in fairvalue, if any, subsequent to impairment loss is recognised inothercomprehensive income.Foravailable-for-saledebtinvestments,impairmentlossesaresubsequentlyreversedinprofitorloss if an increase in the fair value of the investment can be objectively related to an event occurring after the recognitionoftheimpairmentlossinprofitorloss. 2.12 Cash and cash equivalents Cashandshort-termdepositsinthestatementsoffinancialpositioncomprisecashatbanksandonhandandshort- termdepositswithamaturityofthreemonthsorless. Forthepurposeofthestatementsofcashflows,cashandcashequivalentsconsistofcashandshort-termdeposits, asdefinedabove,netofoutstandingbankoverdraft. 2.13 Inventories Inventoriesarestatedatthelowerofcostandnetrealisablevalue.Costsincurredinbringingtheinventoriestotheir presentlocationandconditionareaccountedforasfollows: - Rawmaterialsandconsumablematerials:purchasecostsonafirst-infirst-outbasis. - Finishedgoodsandwork-in-progress:costsofdirectmaterialsandlabourandaproportionofmanufacturing overheadsbasedonnormaloperatingcapacity.Thesecostsareassignedonafirst-infirst-outbasis. Net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion andtheestimatedcostsnecessarytomakethesale. 2.14 Provisions ProvisionsarerecognisedwhentheGrouphasapresentobligation(legalorconstructive)asaresultofapastevent, itisprobablethatanoutflowofeconomicresourceswillberequiredtosettletheobligationandtheamountofthe obligationcanbeestimatedreliably. Provisionsarereviewedateachreportingdateandadjustedtoreflectthecurrentbestestimate.If it isnolonger probablethatanoutflowofeconomicresourceswillberequiredtosettletheobligation,theprovisionisreversed. Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpretaxratethatreflects, whereappropriate,therisksspecifictotheliability.Whendiscountingisused,theincreaseintheprovisiondueto thepassageoftimeisrecognisedasafinancecost.



2. Summary of significant accounting policies (continued) 2.15 Financial liabilities Financialliabilitiesareclassifiedaccordingtothesubstanceofthecontractualarrangementsenteredintoandthe definitionsofafinancialliability. Financialliabilities,withinthescopeofMFRS139,arerecognisedinthestatementsoffinancialpositionwhen,and onlywhen,theGroupandtheCompanybecomeapartytothecontractualprovisionsofthefinancialinstrument. Financialliabilitiesareclassifiedaseitherfinancialliabilitiesatfairvaluethroughprofitorlossorotherfinancial liabilities. TheGroupandtheCompanyhaveclassifiedtheirfinancialliabilitiesasotherfinancialliabilities. TheGroup’sandtheCompany’sotherfinancialliabilitiesincludetradeandotherpayablesandborrowings. Trade and other payables are recognised initially at fair value plus directly attributable transaction costs and subsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod. Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequentlymeasured atamortisedcostusingtheeffectiveinterestmethod.BorrowingsareclassifiedascurrentliabilitiesunlesstheGroup hasanunconditionalrighttodefersettlementoftheliabilityforatleast12monthsafterthereportingdate. Forotherfinancialliabilities,gainsandlossesarerecognisedinprofitorlosswhentheliabilitiesarederecognised, andthroughtheamortisationprocess. A financial liability is derecognised when the obligation under the liability is extinguished.When an existing financialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,orthetermsofan existingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasaderecognitionofthe original liability and the recognitionof anew liability, and thedifference in the respective carrying amounts is recognisedinprofitorloss.

2.16 Offsetting of financial instruments Financialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedintheconsolidatedstatementsof financialpositionif,andonlyif,thereisacurrentlyenforceablelegalrighttooffsettherecognisedamountsandthere isanintentiontosettleonanetbasis,ortorealisetheassetsandsettletheliabilitiessimultaneously. 2.17 Financial guarantee contracts Afinancialguaranteecontract isacontract thatrequires theissuer tomakespecifiedpayments toreimbursethe holderforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendueinaccordancewiththeterms ofadebtinstrument. Financialguaranteesarerecognisedinitiallyasaliabilityatfairvalue,adjustedfortransactioncoststhataredirectly attributabletotheissuanceoftheguarantee.Subsequenttoinitialrecognition,financialguaranteesarerecognisedas incomeinprofitorlossovertheperiodoftheguarantee.Ifitisprobablethattheliabilitywillbehigherthanthe amount initially recognised less amortisation, the liability is recorded at the higher amountwith the difference chargedtoprofitorloss. 2.18 Employee benefits (a) Short-term benefits Wages,salaries,bonusesandsocialsecuritycontributionsarerecognisedasanexpenseintheyearinwhichthe associated services are rendered by employees of the Company. Short-term accumulating compensated absencessuchaspaidannual leavearerecognisedwhenservicesarerenderedbyemployees that increase theirentitlementtofuturecompensatedabsences,andshorttermnon-cumulatingcompensatedabsencessuch assickleavearerecognisedwhentheabsencesoccur.



2. Summary of significant accounting policies (continued) 2.18 Employee benefits (continued) (b) Defined contribution plans TheGroupparticipatesinthenationalpensionschemesasdefinedbythelawsofthecountriesinwhichithas operations. The Malaysian companies in the Group make contributions to the Employee Provident Fund in Malaysia, a defined contribution pension scheme. Contributions to defined contribution pension schemesarerecognisedasanexpenseintheperiodinwhichtherelatedserviceisperformed. (c) Defined benefit plans Thenetdefinedbenefitliabilityorassetistheaggregateofthepresentvalueofthedefinedbenefitobligation (derivedusingadiscountratebasedonhighqualitycorporatebonds)attheendofthereportingperiodreduced by the fairvalueofplanassets (ifany),adjusted foranyeffectof limitinganetdefinedbenefitasset to the assetceiling.Theassetceilingisthepresentvalueofanyeconomicbenefitsavailableintheformofrefunds fromtheplanorreductionsinfuturecontributionstotheplan. Thecostofprovidingbenefitsunderthedefinedbenefitplansisdeterminedseparatelyforeachplanusingthe projectedunitcreditmethod.

Definedbenefitcostscomprisethefollowing: - Service cost -Netinterestonthenetdefinedbenefitliabilityorasset -Remeasurementsofnetdefinedbenefitliabilityorasset Service costs which include current service costs, past service costs and gains or losses on non-routine settlementsarerecognisedasexpenseinprofitorloss.Pastservicecostsarerecognisedwhenplanamendment orcurtailmentoccurs. Netinterestonthenetdefinedbenefitliabilityorassetisthechangeduringtheperiodinthenetdefinedbenefit liabilityorassetthatarisesfromthepassageoftimewhichisdeterminedbyapplyingthediscountratebased onhighqualitycorporatebondsto thenetdefinedbenefit liabilityorasset.Net interestonthenetdefined benefitliabilityorassetisrecognisedasexpenseorincomeinprofitorloss. Remeasurementscomprisingactuarialgainsandlosses,returnonplanassetsandanychangeintheeffectof the asset ceiling (excluding net interest on defined benefit liability) are recognised immediately in other comprehensiveincomeintheperiodinwhichtheyarise.Remeasurementsarerecognisedinretainedearnings withinequityandarenotreclassifiedtoprofitorlossinsubsequentperiods. Planassetsareassetsthatareheldbyalong-termemployeebenefitfundorqualifyinginsurancepolicies.Plan assetsarenotavailabletothecreditorsoftheGroup,norcantheybepaiddirectlytotheGroup.Fairvalueof planassetsisbasedonmarketpriceinformation.Whennomarketpriceisavailable,thefairvalueofplanassets isestimatedbydiscountingexpectedfuturecashflowsusingadiscountratethatreflectsboththeriskassociated withtheplanassetsandthematurityorexpecteddisposaldateofthoseassets(or,iftheyhavenomaturity,the expectedperioduntilthesettlementoftherelatedobligations). TheGroup’s right to be reimbursed of some or all of the expenditure required to settle a defined benefit obligationisrecognisedasaseparateassetatfairvaluewhenandonlywhenreimbursementisvirtuallycertain. (d) Termination benefits Terminationbenefitsarepayablewhenemploymentisterminatedbeforethenormalretirementdateorwhenever anemployeeacceptsvoluntaryredundancyinexchangeforthesebenefits.TheCompanyrecognisestermination benefits when it is demonstrably committed to either to terminate the employment of current employees accordingtothedetailedplanwithoutpossibilityofwithdrawal;orprovidingterminationbenefitsasaresult ofanoffermade toencouragevoluntary redundancy. In thecaseofanoffermade toencouragevoluntary redundancy,themeasurementofterminationbenefitsisbasedonthenumberofemployeesexpectedtoaccept theoffer.Benefitsfallingduemorethan12monthsafterthereportingdatearediscountedtopresentvalue.




2.19 Leases Financeleases,whichtransfertotheGroupsubstantiallyalltherisksandrewardsincidentaltoownershipofthe leaseditem,arecapitalisedattheinceptionoftheleaseatthefairvalueoftheleasedassetor,iflower,atthepresent value of theminimum lease payments.Any initial direct costs are also added to the amount capitalised. Lease paymentsareapportionedbetweenthefinancechargesandreductionoftheleaseliabilitysoastoachieveaconstant rateofinterestontheremainingbalanceoftheliability.Financechargesarechargedtoprofitorloss.Contingent rents,ifany,arechargedasexpensesintheperiodsinwhichtheyareincurred. Leasedassetsaredepreciatedovertheestimatedusefullivesoftheassets.However,ifthereisnoreasonablecertainty thattheGroupwillobtainownershipbytheendoftheleaseterm,theassetsaredepreciatedovertheshorterofthe estimatedusefullivesandtheleaseterms. Operatingleasepaymentsarerecognisedasanexpenseinprofitorlossonastraight-linebasisovertheleaseterm. Theaggregatebenefitofincentivesprovidedbythelessorisrecognisedasareductionofrentalexpenseoverthe leasetermonastraight-linebasis. 2.20 Borrowing costs Borrowingcostsarecapitalisedaspartofthecostofaqualifyingassetiftheyaredirectlyattributabletotheacquisition, constructionorproductionofthatasset.Capitalisationofborrowingcostscommenceswhentheactivitiestoprepare theassetforitsintendeduseorsaleareinprogressandtheexpendituresandborrowingcostsareincurred.Borrowing costsarecapitaliseduntiltheassetsaresubstantiallycompletedfortheirintendeduseorsale. Allotherborrowingcostsarerecognisedinprofitorlossintheperiodtheyareincurred.Borrowingcostsconsistof interestandothercoststhattheGroupandtheCompanyincurredinconnectionwiththeborrowingoffunds. 2.21 Revenue RevenueisrecognisedtotheextentthatitisprobablethattheeconomicbenefitswillflowtotheGroupandthe revenuecanbereliablymeasured.Revenueismeasuredatthefairvalueofconsiderationreceivedorreceivable. (a) Sale of goods Revenuefromsaleofgoodsisrecogniseduponthetransferofsignificantrisksandrewardsofownershipofthe goods to the customer. Revenue is not recognised to the extent where there are significant uncertainties regardingrecoveryoftheconsiderationdue,associatedcostsorthepossiblereturnofgoods. (b) Rental income Rentalincomeisaccountedforonastraight-linebasisovertheleaseterms.Theaggregatecostsofincentives providedtolesseesarerecognisedasareductionofrentalincomeovertheleasetermonastraight-linebasis. (c) Dividend income DividendincomeisrecognisedwhentheGroup’srighttoreceivepaymentisestablished. (d) Management fees Managementfeesarerecognisedwhenservicesarerendered. (e) Interest income Interestincomeisrecognisedusingtheeffectiveinterestmethod.



2. Summary of significant accounting policies (continued) 2.22 Income taxes (a) Current tax Current taxassetsand liabilitiesaremeasuredat theamountexpected toberecovered fromorpaid to the taxationauthorities.The tax rates and tax lawsused tocompute theamount are those that are enactedor substantivelyenactedbythereportingdate. Currenttaxesarerecognisedinprofitorlossexcepttotheextentthatthetaxrelatestoitemsrecognisedoutside profitorloss,eitherinothercomprehensiveincomeordirectlyinequity. (b) Deferred tax Deferredtaxisprovidedusingtheliabilitymethodontemporarydifferencesatthereportingdatebetweenthe taxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposes. Deferredtaxliabilitiesarerecognisedforalltemporarydifferences,except: - wherethedeferredtaxliabilityarisesfromtheinitialrecognitionofgoodwillorofanassetorliabilityin a transactionthat isnotabusinesscombinationand,at thetimeof thetransaction,affectsneither the accountingprofitnortaxableprofitorloss;and - in respectof taxable temporarydifferencesassociatedwith investments in subsidiaries,associatesand interestsinjointventures,wherethetimingofthereversalofthetemporarydifferencescanbecontrolled anditisprobablethatthetemporarydifferenceswillnotreverseintheforeseeablefuture. Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,carryforwardofunusedtaxcredits andunusedtaxlosses,totheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthe deductibletemporarydifferences,andthecarryforwardofunusedtaxcreditsandunusedtaxlossescanbe utilisedexcept: - where the deferred tax asset relating to the deductible temporary difference arises from the initial recognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeof thetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;and - inrespectofdeductibletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesand interestsinjointventures,deferredtaxassetsarerecognisedonlytotheextentthatitisprobablethatthe temporarydifferenceswillreverseintheforeseeablefutureandtaxableprofitwillbeavailableagainst whichthetemporarydifferencescanbeutilised. Thecarryingamountofdeferredtaxassetsisreviewedateachreportingdateandreducedtotheextentthatit isnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxasset tobeutilised.Unrecogniseddeferredtaxassetsarereassessedateachreportingdateandarerecognisedtothe extentthatithasbecomeprobablethatfuturetaxableprofitwillallowthedeferredtaxassetstobeutilised. Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheyearwhenthe assetisrealisedortheliabilityissettled,basedontaxratesandtaxlawsthathavebeenenactedorsubstantively enactedatthereportingdate.

Deferredtaxrelatingtoitemsrecognisedoutsideprofitorlossisrecognisedoutsideprofitorloss.Deferredtax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity and deferred tax arising from a business combination is adjusted against goodwill on acquisition.

Deferredtaxassetsanddeferredtaxliabilitiesareoffset,ifalegallyenforceablerightexiststosetoffcurrenttax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxationauthority.



2. Summary of significant accounting policies (continued) 2.22 Income taxes (continued) (c) Sales tax Revenue,expensesandassetsarerecognisednetoftheamountofsalestaxexcept: - Where the sales tax incurred in a purchase of assets or services is not recoverable from the taxation authority,inwhichcasethesalestaxisrecognisedaspartofthecostofacquisitionoftheassetoraspart of the expense item as applicable; and - Receivablesandpayablesthatarestatedwiththeamountofsalestax. The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivablesorpayablesinthestatementsoffinancialposition. (d) Goods and Services Tax (“GST”) ThenetamountofGST,beingthedifferencebetweenoutputandinputofGST,payabletoorreceivablefrom the respective authorities at the reportingdate, is included in trade andother payables or trade andother receivablesinthestatementsoffinancialposition. 2.23 Segment reporting Formanagementpurposes, theGroupisorganisedintooperatingsegmentsbasedontheirproductsandservices which are independentlymanaged by the respective segmentmanagers responsible for the performance of the respectivesegmentsundertheircharge.ThesegmentmanagersreportdirectlytothemanagementoftheCompany whoregularlyreviewthesegmentresultsinordertoallocateresourcestothesegmentsandtoassessthesegment performance.AdditionaldisclosuresoneachofthesesegmentsareshowninNote34,includingthefactorsusedto identifythereportablesegmentsandthemeasurementbasisofsegmentinformation. 2.24 Share capital and share issuance expenses AnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheGroupandtheCompany afterdeductingallofitsliabilities.Ordinarysharesareequityinstruments. Ordinarysharesarerecordedat theproceedsreceived,netofdirectlyattributable incremental transactioncosts. Ordinarysharesareclassifiedasequity. Dividendsonordinarysharesarerecognised inequity in theperiod in whichtheyaredeclared.

2.25 Contingencies Acontingentliabilityorassetisapossibleobligationorassetthatarisesfrompasteventsandwhoseexistencewillbe confirmedonlybytheoccurrenceornon-occurrenceofuncertainfutureevent(s)notwhollywithinthecontrolofthe Group. ContingentliabilitiesandassetsarenotrecognisedinthestatementsoffinancialpositionoftheGroup. 2.26 Fair value measurements TheGroupmeasuresitsfinancialinstruments,suchas,derivatives,atfairvalueateachreportingdate.Also,fair valuesoffinancialinstrumentsmeasuredatamortisedcostaredisclosedinNote31(b).



2. Summary of significant accounting policies (continued) 2.26 Fair value measurements (continued) Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransaction betweenmarketparticipantsatthemeasurementdate.Thefairvaluemeasurementisbasedonthepresumptionthat thetransactiontoselltheassetortransfertheliabilitytakesplaceeither: (i) Intheprincipalmarketfortheassetorliability,or (ii) Intheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetorliability. TheprincipalorthemostadvantageousmarketmustbeaccessibletobytheGroup. Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionsthatmarketparticipantswouldusewhen pricingtheassetorliability,assumingthatmarketparticipantsactintheireconomicbestinterest. A fair valuemeasurementofanon-financialasset takes into accountamarketparticipant’sability togenerate economicbenefitsbyusingtheassetinitshighestandbestuseorbysellingittoanothermarketparticipantthat wouldusetheassetinitshighestandbestuse. TheGroupusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataare available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservableinputs. Allassetsandliabilitiesforwhichfairvalueismeasuredordisclosedinthefinancialstatementsarecategorisedwithin the fairvaluehierarchy,describedas follows,basedon the lowest level input that is significant to the fairvalue measurementasawhole: Level1- Quoted(unadjusted)marketpricesinactivemarketsforidenticalassetsorliabilities Level2- Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurement is directly or indirectly observable Level3- Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurement is unobservable

Forassetsandliabilitiesthatarerecognisedinthefinancialstatementsonarecurringbasis,theGroupdetermines whethertransfershaveoccurredbetweenLevelsinthehierarchybyre-assessingcategorisation(basedonthelowest levelinputthatissignificanttothefairvaluemeasurementasawhole)attheendofeachreportingperiod. 2.27 Foreign currency (a) Functional and presentation currency TheindividualfinancialstatementsofeachentityintheGrouparemeasuredusingthecurrencyoftheprimary economicenvironment inwhich theentityoperates (“the functionalcurrency”).Theconsolidatedfinancial statementsarepresentedinRinggitMalaysia(“RM”),whichisalsotheCompany’sfunctionalcurrency. (b) Foreign currency transactions TransactionsinforeigncurrenciesaremeasuredintherespectivefunctionalcurrenciesoftheCompanyandits subsidiaries and are recorded on initial recognition in the functional currencies at exchange rates approximating those ruling at the transactiondates.Monetary assets and liabilitiesdenominated in foreign currencies are translatedat therateofexchangerulingat thereportingdate.Non-monetary itemsdenominated in foreign currencies that are measured at historical cost are translated using the exchange rates as at the dates of the initialtransactions. Exchange differences arising on the settlement ofmonetary items or on translatingmonetary items at the reportingdatearerecognisedinprofitorloss.



3. Significant accounting judgements and estimates ThepreparationoftheGroup’sfinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptions thataffectthereportedamountsofrevenues,expenses,assetsandliabilities,andthedisclosureofcontingentliabilitiesat the reportingdate.However,uncertaintyabout theseassumptionsandestimates could result inoutcomes that could requireamaterialadjustmenttothecarryingamountoftheassetorliabilityaffectedinthefuture. 3.1 Judgements made in applying accounting policies Therewere no significant judgementsmade in applying the accounting policies of theGroupwhichmayhave significanteffectsoftheamountsrecognisedinthefinancialstatements. 3.2 Key sources of estimation uncertainty The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that haveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthe nextfinancialyeararediscussedbelow. (a) Useful lives of plant and machinery Thecostofplantandmachineryforthemanufactureofwoodrelatedproductsisdepreciatedonastraight-line basisovertheassets’usefullives.Managementestimatestheusefullivesoftheseplantandmachinerytobe within5to17years.Thesearecommonlifeexpectanciesappliedintheindustry.Changesintheexpected level of usage and technological developments could impact the economic useful lives and the residual values oftheseassets,thereforefuturedepreciationchargescouldberevised.ThenetcarryingamountoftheGroup’s plantandmachineryatthereportingdateisdisclosedinNote14. (b) Deferred tax assets Deferredtaxassetsarerecognisedforallunabsorbedtaxlossesandunutilisedcapitalallowancestotheextent thatitisprobablethattaxableprofitwillbeavailableagainstwhichthelossesandcapitalallowancescanbe utilised.Significantmanagementjudgementisrequiredtodeterminetheamountofdeferredtaxassetsthatcan berecognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanning strategies. Assumptionsaboutgenerationoffuturetaxableprofitsdependonmanagement’sestimatesoffuturecashflows. These depend on estimates of future production and sales volume, operating costs, capital expenditure, dividendsandothercapitalmanagementtransactions.Judgementisalsorequiredaboutapplicationofincome taxlegislation.Thesejudgementsandassumptionsaresubjecttorisksanduncertainty,hencethereisapossibility thatchanges incircumstanceswillalterexpectations,whichmay impact theamountofdeferred taxassets recognised in the statement of financial position and the amount of unrecognised tax losses and capital allowances.ThecarryingamountoftheGroup’sdeferredtaxassetsatthereportingdateisdisclosedinNote18. (c) Impairment of loans and receivables TheGroupassessesateach reportingdatewhether there isanyobjectiveevidence thatafinancialasset is impaired.Todeterminewhetherthereisobjectiveevidenceofimpairment,theGroupconsidersfactorssuchas theprobabilityofinsolvencyorsignificantfinancialdifficultiesofthedebtoranddefaultorsignificantdelayin payments. Wherethereisobjectiveevidenceofimpairment,theamountandtimingoffuturecashflowsareestimated basedonhistoricallossexperienceforassetswithsimilarcreditriskcharacteristics.Thecarryingamountofthe Group’sloansandreceivablesatthereportingdateisdisclosedinNote21. (d) Defined benefit plan Thecostofdefinedbenefitpensionplanisdeterminedusingtheactuarialvaluations.Theactuarialvaluation involvesmakingassumptionsaboutdiscountrates,futuresalaryincreasesandmortalityrates.Allassumptions arereviewedateachreportingdate.ThecarryingamountsoftheGroup’sandoftheCompany’sdefinedbenefit planatthereportingdateandrelatedassumptionsaredisclosedinNote24.



3. Significant accounting judgements and estimates (continued) 3.2 Key sources of estimation uncertainty (continued) (e) Impairment of investments in subsidiaries and associates The Company assesses whether there are indicators of impairment for its investments in subsidiaries and associatesateachreportingdate.TheCompanycarriedouttheimpairmenttestbasedontheestimationofthe higherofthevalue-in-useorthefairvaluelesscosttosellofthecash-generatingunits(“CGU”)towhichthe investmentsinsubsidiariesandassociatesbelongto.EstimatingtherecoverableamountrequirestheCompany tomakeanestimateoftheexpectedfuturecashflowsfromtheCGUandalsotodetermineasuitablediscount rateinordertocalculatethepresentvalueofthosecashflows. The carrying amounts of the investments in subsidiaries and associates at the reporting date are disclosed in Note16andNote17respectively.

4. Revenue

Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Sale of goods 74,040 106,330 - - Rental income 59 24 728 728 Dividend income from subsidiaries - - 636 8,726 Management fees from subsidiaries - - 1,725 1,725

74,099 106,354 3,089 11,179 5. Interest income

Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Interestincomefrom: Loans and receivables 345 323 3 27 6. Dividend income

Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Dividendincomefrom: Available-for-salefinancialassets -Equityinstruments(quotedinMalaysia) 122 169 - -



7. Other income

Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Reversal of impairment losses on tradeandotherreceivables(Note21(a)) 136 - - - Sale of scrap and other products 17 16 - - Gainondisposalofproperty,plantandequipment 160 135 50 - Unrealisedgainonforeignexchange 56 48 - - Realised gain on foreign exchange 76 24 - - Discount received 6 15 6 10 ProfitfromAl-Mudharabah 25 20 1 - Insurance compensation 128 1,568 128 - Post-fillingforestinventorydevelopment 22 407 - - Miscellaneous 219 164 - -

845 2,397 185 10 8. Finance costs

Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Interestexpenseon: Hire purchase payables 137 90 18 10 Bankers’ acceptances 19 15 - - Overdrafts 114 26 - - Intercompany loans and advances - - 1 1 Loansandadvances: - holding company 929 263 886 199 - a corporate shareholder - 118 - 118

1,199 512 905 328 9. (Loss)/profit before tax Thefollowingitemshavebeenincludedinarrivingat(loss)/profitbeforetax:

Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Auditors’remuneration: -Currentyear 152 146 55 54 - Other services 20 65 20 65 Employeebenefitsexpense(Note10) 17,429 18,105 1,762 1,738 Non-executive directors’ remuneration excludingbenefits-in-kind(Note11) 1,061 932 506 495 Depreciationofproperty,plantandequipment(Note14) 4,397 4,550 329 293 Property,plantandequipmentwrittenoff 172 22 111 1 Impairment losses on trade and otherreceivables(Note21(a),(c)) 211 582 326 16,465 Sustainable forest management expenses 1,281 1,043 - - Rental of equipment 15 11 6 8 Rental of land and buildings 223 397 77 74 Impairment loss on inventories - 33 - -



10. Employee benefits expense

Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Wages and salaries 12,194 12,503 1,171 1,237 Social security contributions 184 178 11 11 Contributionstodefinedcontributionplan 1,567 1,560 192 163 Provisionforretirementbenefitsobligations(Note24) 999 630 106 34 Provisionforshort-termaccumulating compensated absences 95 97 12 25 Otherbenefits 2,390 3,137 270 268

17,429 18,105 1,762 1,738 11. Directors’ remuneration ThedetailsofremunerationreceivablebydirectorsoftheCompanyduringtheyearareasfollows: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Non-executive: Fees 299 271 184 176 Other emoluments 762 661 322 319

Total directors’ remuneration (excludingbenefits-in-kind)(Note9) 1,061 932 506 495 Estimatedmoneyvalueofbenefits-in-kind 26 26 - -

Total non-executive directors’ remuneration (includingbenefits-in-kind) 1,087 958 506 495

Total directors’ remuneration 1,087 958 506 495 Thenumberofdirectorsof theCompanywhose total remunerationduring thefinancialyear fellwithin the following bandsisanalysedbelow: Number of directors 2015 2014 Non-executive directors: BelowRM50,000 6 7 RM50,001-RM100,000 1 - RM200,001-RM250,000 1 1



12. Income tax (benefit)/expense Majorcomponentsofincometax(benefit)/expense Themajorcomponentsofincometax(benefit)/expensefortheyearsended31December2015and2014are: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Statements of profit or loss and other comprehensive income: Currentincometax: Malaysian income tax 177 5,916 - - Under/(over)provisioninrespectofpreviousyears 320 (5) - -

497 5,911 - - Deferredincometax(Note18): Reversal of temporary differences (1,389) (332) (323) (342) (Over)/underprovisioninrespectofpreviousyears (130) (30) (91) 260 (1,519) (362) (414) (82) Incometax(benefit)/expense recognisedinprofitorloss (1,022) 5,549 (414) (82)

Reconciliationbetweentax(benefit)/expenseandaccounting(loss)/profit Thereconciliationbetweentax(benefit)/expenseandtheproductofaccounting(loss)/profitmultipliedbytheapplicable corporatetaxratefortheyearsended31December2015and2014isasfollows: 2015 2014 RM’000 RM’000 Group (Loss)/profitbeforetax (3,555) 20,395 TaxatMalaysianstatutorytaxrateof25%(2014:25%) (889) 5,099 Adjustments: Income not subject to tax (34) (244) Non-deductible expenses 647 747 Deferred tax recognised at different tax rate 59 15 Utilisationofcurrentyearreinvestmentallowances (223) (70) Utilisationofunabsorbedcapitalallowancesandtaxlosses (716) - Deferred tax assets not recognised 170 102 Share of results of an associate (226) (65) Over provision of deferred tax in respect of previous years (130) (30) Under/(over)provisionofincometaxinrespectofpreviousyears 320 (5)

Incometax(benefit)/expenserecognisedinprofitorloss (1,022) 5,549



12. Income tax (benefit)/expense (continued)

Reconciliationbetweentax(benefit)/expenseandaccounting(loss)/profit(continued)

2015 2014 RM’000 RM’000 Company Loss before tax (1,961) (9,448) TaxatMalaysianstatutorytaxrateof25%(2014:25%) (490) (2,362) Adjustments: Income not subject to tax (191) (2,181) Deferred tax recognised at different tax rate 13 14 Deferred tax assets not recognised 153 - Non-deductible expenses 192 4,187 (Over)/underprovisionofdeferredtaxinrespectofpreviousyear (91) 260

Incometaxbenefitrecognisedinprofitorloss (414) (82) Currentincometaxiscalculatedatthestatutorytaxrateof25%(2014:25%)oftheestimatedassessable(loss)/profitfor theyear.Thedomesticstatutorytaxrateswillbereducedto24%fromthecurrentyear’srateof25%effectiveYearof Assessment2016.Thecomputationofdeferredtaxasat31December2015hasreflectedthischange. Taxsavingsduringthefinancialyeararisingfrom:

Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000

-Utilisationofcurrentyeartaxlosses 207 47 1 9 -Utilisationofpreviouslyunrecognisedtaxlosses - 315 - -

13. (Loss)/earnings per share

Basic(loss)/earningspershareamountsarecalculatedbydividing(loss)/profitfortheyearnetoftax,attributabletoowners oftheparentbyweightedaveragenumberofordinarysharesoutstandingduringthefinancialyear. Thefollowingreflectthe(loss)/profitandsharedatausedinthecomputationofbasicanddiluted(loss)/earningspershare fortheyearsended31December: Group 2015 2014 (Loss)/profitnetoftaxattributabletoownersoftheparent(RM’000) (2,533) 14,846 Weightedaveragenumberofordinarysharesinissue(‘000) 134,546 134,546 Basicanddiluted(loss)/earningspershare(sen) (1.88) 11.03 TheGrouphasnopotentialordinarysharesinissueasatthereportingdateandthereforethebasicandfullydiluted(loss)/ earningspersharearethesame.



14. Property, plant and equipment Furniture, fittings Land and Plant and and Motor Infra- buildings* machinery equipment vehicles structure Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Group Cost: At 1 January 2014 64,617 80,023 12,705 9,941 1,893 169,179 Additions 337 1,164 328 2,204 15 4,048 Disposals - (2,065) (119) (411) - (2,595) Writeoffs - (1,629) (121) - - (1,750)

At 31 December 2014 and 1 January 2015 64,954 77,493 12,793 11,734 1,908 168,882 Additions 63 2,493 116 931 - 3,603 Disposals - (1,789) - (597) - (2,386) Writeoffs - (516) (1) (239) - (756)

At 31 December 2015 65,017 77,681 12,908 11,829 1,908 169,343

Accumulated depreciation and impairment losses: At 1 January 2014 5,259 74,524 11,456 7,632 1,168 100,039 Depreciation charge fortheyear(Note9) 1,795 1,701 265 779 10 4,550 Disposals - (2,030) (119) (399) - (2,548) Writeoffs - (1,629) (99) - - (1,728)

At 31 December 2014 and 1 January 2015 7,054 72,566 11,503 8,012 1,178 100,313 Depreciation charge fortheyear(Note9) 1,821 1,331 277 958 10 4,397 Disposals - (1,759) - (476) - (2,235) Writeoffs - (462) (1) (121) - (584)

At 31 December 2015 8,875 71,676 11,779 8,373 1,188 101,891 Net carrying amount: At31December2014 57,900 4,927 1,290 3,722 730 68,569 At 31 December 2015 56,142 6,005 1,129 3,456 720 67,452



14. Property, plant and equipment (continued) * Land and building of the Group: Freehold Leasehold land land Building Total RM’000 RM’000 RM’000 RM’000 Group (continued) Cost: At 1 January 2014 409 48,911 15,297 64,617 Addition - - 337 337

At 31 December 2014 and 1 January 2015 409 48,911 15,634 64,954 Addition - - 63 63

At 31 December 2015 409 48,911 15,697 65,017 Accumulated depreciation: At 1 January 2014 - 3,483 1,776 5,259 Depreciationchargefortheyear - 1,183 612 1,795

At 31 December 2014 and 1 January 2015 - 4,666 2,388 7,054 Depreciationchargefortheyear - 1,183 638 1,821

At 31 December 2015 - 5,849 3,026 8,875 Net carrying amount: At31December2014 409 44,245 13,246 57,900 At 31 December 2015 409 43,062 12,671 56,142



14. Property, plant and equipment (continued) Furniture, Land and fittings and Motor building* equipment vehicles Total RM’000 RM’000 RM’000 RM’000 Company Cost: At 1 January 2014 8,099 807 768 9,674 Additions 193 43 193 429 Writeoffs - (15) - (15)

At 31 December 2014 and 1 January 2015 8,292 835 961 10,088 Additions - 12 322 334 Disposals - - (524) (524) Writeoffs - - (187) (187)

At 31 December 2015 8,292 847 572 9,711 Accumulated depreciation: At 1 January 2014 426 521 384 1,331 Depreciationchargefortheyear(Note9) 143 63 87 293 Writeoffs - (14) - (14)

At 31 December 2014 and 1 January 2015 569 570 471 1,610 Depreciationchargefortheyear(Note9) 146 57 126 329 Disposals - - (421) (421) Writeoffs - - (77) (77)

At 31 December 2015 715 627 99 1,441 Net carrying amount: At31December2014 7,723 265 490 8,478 At 31 December 2015 7,577 220 473 8,270 * Land and building of the Company: Leasehold land Building Total RM’000 RM’000 RM’000 Cost: At 1 January 2014 3,000 5,099 8,099 Addition - 193 193

At 31 December 2014 and 31 December 2015 3,000 5,292 8,292 Accumulated depreciation: At 1 January 2014 120 306 426 Depreciationchargefortheyear 39 104 143 At 31 December 2014 and 1 January 2015 159 410 569 Depreciationchargefortheyear 40 106 146 At 31 December 2015 199 516 715 Net carrying amount: At31December2014 2,841 4,882 7,723 At 31 December 2015 2,801 4,776 7,577



14. Property, plant and equipment (continued) Assetsheldunderfinancelease Duringthefinancialyear,theGroupandtheCompanyacquiredequipmentandmotorvehicleswithanaggregatecost ofRM1,616,000(2014:RM927,000)andRM249,000(2014:RM158,000)respectively,bymeansoffinancelease.The cashflowonacquisitionofproperty,plantandequipmentoftheGroupandtheCompanyamountedtoRM1,987,000 (2014:RM3,121,000)andRM85,000(2014:RM271,000)respectively. The net carrying amount of plant and machinery, equipment and motor vehicles held under finance leases at the reportingdatewereRM453,000(2014:RM417,000)andRM3,973,000(2014:RM2,623,000)oftheCompanyandthe Grouprespectively. Assets pledged as securities Inadditiontoassetsheldunderfinanceleases,theGroup’slandandbuildings,motorvehicles,furniture,fittings,equipment andplantandmachinery,withnetcarryingamountofRM33,939,000(2014:RM21,324,000)aremortgagedtosecurethe Group’sbankborrowings(Note23). 15. Goodwill 2015 2014 RM’000 RM’000 Cost: At1January/31December 613 613 Accumulated impairment: At1January/31December (613) (613) Net carrying amount: At31December - -

16. Investments in subsidiaries

Company 2015 2014 RM’000 RM’000 Unquotedshares,atcost 118,824 118,824 Less:Accumulatedimpairmentlosses (73,817) (73,817)

45,007 45,007 Provisionforfinancialguarantee 14 14

45,021 45,021



16. Investments in subsidiaries (continued) Country of Proportion (%) of Names incorporation Principal activities ownership interest 2015 2014 Held by the Company: GoldenPharosDoorsSdn.Bhd. Malaysia Inactive. 100 100 GoldenPharosGlassSdn.Bhd. Malaysia Manufacturingand 100 100 tradingofglass. GoldenPharosOverseasSalesSdn.Bhd. Malaysia Inactive. 100 100 GoldenPharosOverseasSdn.Bhd.** Malaysia Dormant. 100 100 PermintTimberCorporationSdn.Bhd. Malaysia Investmentholding. 100 100 GoldenPharosFiberSdn.Bhd. Malaysia Dormant. 100 100

Held through Permint Timber Corporation Sdn. Bhd.: PesamaTimberCorporationSdn.Bhd. Malaysia Sawmilling,harvesting, 100 100 moulding,fingerjoint, furnitureandkilndrying. PesakaTrengganuBerhad Malaysia Sawmilling. 100 100 PermintPlywoodSdn.Bhd. Malaysia Rentalofbuildings, 100 100 plant and machinery and selling of logs KumpulanPengurusanKayu-Kayan Malaysia Harvestingandsustainable 100 100 TrengganuSdn.Bhd. forestmanagement. GPTropicalFurnitureSdn.Bhd. Malaysia Dormant. 50.39^ 50.39^

* equalstotheproportionofvotingrightsheld. ** Thissubsidiaryholds19%equityinterestinPrestigeDoorsPLC,acompanyincorporatedintheUnitedKingdom. ^ Proportion(%)ofownershipinterestheldbynon-controllinginterestis49.61%(2014:49.61%).Thenon-controlling interestofthesubsidiaryisnotsignificanttotheGroup.Thus,nodisclosureofsummarisedfinancialinformationof thesubsidiaryisrequired.



17. Investments in associates

Group 2015 2014 RM’000 RM’000 Unquotedordinaryshares,atcost 3,981 3,981 Unquotedpreferenceshares,atcost 7,764 7,764

11,745 11,745 Shareofpost-acquisitionreserves/(losses) 831 (75)

12,576 11,670 Less:Accumulatedimpairmentlosses (11,407) (11,407)

1,169 263

Representedby: Share of net tangible assets 1,169 263

Detailsoftheassociatesareasfollows: Country of Proportion (%) of Names incorporation ownership interest Principal activities 2015 2014 KonsortiumPerumahan Malaysia 35 35 Housingdevelopment. RakyatTerengganuSdn.Bhd. KemamanFurniture Malaysia 43.59 43.59 Dormant. IndustriesSdn.Bhd. PesamaRenors(M)Sdn.Bhd. Malaysia 25 25 Dormant. GPBSeabridgeInternational,Inc.+ UnitedStates of America 20 20 Dormant. + AuditedbyafirmofauditorsotherthanErnst&Young. KonsortiumPerumahanRakyatTerengganuSdn.Bhd. Thesummarisedfinancialinformationoftheassociate,notadjustedfortheproportionofownershipinterestheldbythe Group,isasfollows: (i) Summarisedstatementoffinancialposition 2015 2014 RM’000 RM’000 Assets and liabilities: Total assets 19,223 17,335

Total liabilities (15,884) (16,584)



17. Investments in associates (continued)

Thesummarisedfinancialinformationoftheassociate,notadjustedfortheproportionofownershipinterestheldbythe Group,isasfollows(continued): (ii) Summarisedstatementofcomprehensiveincome 2015 2014 RM’000 RM’000 Results: Revenue 14,047 11,564

Profitfortheyear 2,588 1,425 (iii) Reconciliation of the summarised financial information presented above to the carrying amount of theGroup’s interest in associate 2015 2014 RM’000 RM’000 Netassetsat1January 751 (674) Profitfortheyear 2,588 1,425

Netassetsat31December 3,339 751 Interest in associate 35% 35%

1,169 263

18. Deferred tax

Deferredincometaxasat31Decemberrelatestothefollowing: As at Recognised As at Recognised As at 1 January in profit 31 December in profit 31 December 2014 or loss 2014 or loss 2015 RM’000 RM’000 RM’000 RM’000 RM’000 (Note 12) (Note 12) Group Deferred tax liabilities: Property,plantandequipment 8,332 (366) 7,966 (180) 7,786

Deferred tax assets: Provisionsandretirementbenefitobligations (1,460) 39 (1,421) (832) (2,253) Unutilisedtaxlosses,unabsorbedreinvestment allowancesandunabsorbedcapitalallowances (4,784) (35) (4,819) (507) (5,326)

(6,244) 4 (6,240) (1,339) (7,579)

2,088 (362) 1,726 (1,519) 207

Company

Deferred tax liabilities: Property,plantandequipment 1,305 (68) 1,237 (28) 1,209 Deferred tax assets: Provisionsandretirementbenefitobligations (54) (10) (64) (43) (107) Unutilisedtaxlossesandunabsorbed capitalallowances (755) (4) (759) (343) (1,102)

(809) (14) (823) (386) (1,209)

496 (82) 414 (414) -



18. Deferred tax (continued) Presented after offsetting as follows:

Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Deferred tax assets (505) (211) - - Deferred tax liabilities 712 1,937 - 414 207 1,726 - 414 Unutilisedtaxlosses,unabsorbedcapitalallowancesandunabsorbedreinvestmentallowances

Atthereportingdate,theGrouphasunutilisedtaxlosses,unabsorbedcapitalallowancesandunabsorbedreinvestment allowances of approximately RM127,232,000 (2014: RM181,597,000), RM11,250,000 (2014: RM14,004,000) and RM2,601,000(2014:RM2,601,000)respectivelythatareavailableforoffsetagainstfuturetaxableprofitsofthecompanies inwhichthelossesarose,forwhichnodeferredtaxassetisrecognisedduetouncertaintyofitsrecoverability. Section44(5A)andParagraph75AofSchedule3oftheMalaysiaIncomeTaxAct1967whichbecameeffectiveinYearof Assessment2006 restricts theutilisationof unutilised tax losses andunabsorbedcapital allowanceswhere there is a substantial change in theordinary shareholder of a company.The test for determiningwhether there is a substantial change inshareholders iscarriedoutbycomparing theshareholderson the lastdayof thebasisperiod inwhich the unabsorbed losses/capital allowances were ascertainedwith those on the first day of the basis period in which the unabsorbedlosses/capitalallowancesaretobeutilised. PursuanttoguidelinesissuedbytheMalaysiantaxauthoritiesin2008,theMinistryofFinancehasexemptedallcompanies fromtheprovisionofSection44(5A)andParagraph75AofSchedule3exceptdormantcompanies. 19. Investment securities

Group 2015 2014 RM’000 RM’000 Non-current Available-for-salefinancialassets,atfairvalue QuotedinMalaysia -Equityinstruments 5,654 6,720 -Unittrust AmanahSahamDarulIman(“ASDI”) 1,018 1,038 Total investment securities 6,672 7,758 Noneofthesefinancialassetsareimpaired.

20. Inventories

Group 2015 2014 RM’000 RM’000 Cost Rawmaterials 7,028 11,862 Work-in-progress 136 305 Finishedgoods 129 232 Consumablematerials 528 655 7,821 13,054

During the financial year, the amount of inventories recognised as an expenses in cost of sales of the Group was RM33,520,000(2014:RM30,651,000).

Inprioryear,theGrouphasmadeaprovisionforimpairmentofinventoriesamountingtoRM33,000.



21. Trade and other receivables

Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Trade receivables Third parties 22,709 23,780 - - Less:Allowanceforimpairment Third parties (11,912) (12,093) - -

Tradereceivables,net 10,797 11,687 - - Other receivables Amounts due from subsidiaries - - 79,432 79,301 Loans to subsidiaries - - 4,665 4,665 Amounts due from associates 5,143 5,113 - - Deposits 1,625 2,076 24 24 GoodsandServicesTax (“GST”)receivable 24 - - - Sundry receivables 8,243 8,554 7,042 7,014

15,035 15,743 91,163 91,004 Less:Allowanceforimpairment Amounts due from subsidiaries - - (76,361) (76,035) Loans to subsidiaries - - (4,665) (4,665) Amounts due from associates (5,113) (5,113) - - Sundry receivables (7,846) (7,736) (7,000) (7,000)

(12,959) (12,849) (88,026) (87,700)

Otherreceivables,net 2,076 2,894 3,137 3,304 Total trade and other receivables 12,873 14,581 3,137 3,304 Less:GSTreceivable (24) - - - Add:Cashandbankbalances(Note22) 18,511 19,883 244 632

Total loans and receivables 31,360 34,464 3,381 3,936 (a) Trade receivables Tradereceivablesarenon-interestbearingandaregenerallyon30to90day(2014:30to90day)terms.Theyare recognisedattheiroriginalinvoiceamountswhichrepresenttheirfairvaluesoninitialrecognition. IncludedintradereceivablesisanamountofRM4,995,000(2014:RM4,995,000)duefromaffiliatedcompanies. AffiliatedcompaniesrefertocompaniesrelatedtoGoldenPharosBerhad’sassociates.



21. Trade and other receivables (continued)

(a) Trade receivables (continued) Ageing analysis of trade receivables TheageinganalysisoftheGroup’stradereceivablesisasfollows: Group 2015 2014 RM’000 RM’000 Neither past due nor impaired 8,463 3,374

1to30dayspastduenotimpaired 1,169 3,661 31to60dayspastduenotimpaired 338 2,483 61to90dayspastduenotimpaired 595 893 91to120dayspastduenotimpaired 16 999 Morethan121dayspastduenotimpaired 216 277

2,334 8,313 Impaired 11,912 12,093

22,709 23,780 Receivables that are neither past due nor impaired Tradeandother receivables thatareneitherpastduenor impairedarecreditworthydebtorswithgoodpayment recordswiththeGroup. Noneof theGroup’s tradereceivables thatareneitherpastduenor impairedhavebeenrenegotiatedduring the financialyear.

Receivables that are past due but not impaired TheGrouphastradereceivablesamountingtoRM2,334,000(2014:RM8,313,000)thatarepastdueatthereporting datebutnotimpaired. Atthereportingdate,tradereceivablesarisingfromexportsalesamountingtoRMNil(2014:RM26,000)havebeen arrangedtobesettledvialettersofcreditissuedbyreputablebanksincountrieswherethecustomersarebased.The remainingbalanceofreceivablesthatarepastduebutnotimpairedareunsecuredinnature. Basedonpastexperienceandnoadverseinformationtodate, thedirectorsof theGroupareoftheopinionthat noallowanceforimpairmentisnecessaryinrespectofthesebalancesastherehasnotbeenasignificantchangein thecreditqualityandthebalancesarestillconsideredfullyrecoverable. Receivables that are impaired TheGroup’stradereceivablesthatareimpairedatthereportingdateandthemovementoftheallowanceaccounts usedtorecordtheimpairmentareasfollows: Group Individually impaired 2015 2014 RM’000 RM’000 Trade receivables-nominal amount 11,912 12,093 Less:Allowanceforimpairment (11,912) (12,093)

- -



21. Trade and other receivables (continued)

(a) Trade receivables (continued)

Receivablesthatareimpaired(continued) Movementinallowanceaccounts: Group 2015 2014 RM’000 RM’000 At1January 12,093 11,539 Chargefortheyear(Note9) 101 559 Written off (146) (5) Reversalofimpairmentlosses(Note7) (136) -

At31December 11,912 12,093 Trade receivables that are individually determined to be impaired at the reporting date relate to debtors that are in significantfinancialdifficultiesandhavedefaultedonpayments.Thesereceivablesarenotsecuredbyanycollateralor creditenhancements. (b) Related party balances Amountsduefromsubsidiariesareunsecured,non-interestbearingandrepayableondemand. Loanstosubsidiariesareunsecured,bearinterestrangingfrom2.5%to4.0%perannum(2014:2.5%to4.0%per annum)andrepayableondemand. Amountsduefromassociatesareunsecured,non-interestbearingandrepayableondemand. (c) Other receivables

Other receivables that are impaired Atthereportingdate,theGroupandtheCompanyhaveprovidedallowancesofRM12,959,000(2014:RM12,849,000) andRM88,026,000(2014:RM87,700,000)respectively,forotherreceivables. Movementinallowanceaccounts: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 At1January 12,849 13,288 87,700 71,235 Chargefortheyear(Note9) 110 23 326 16,465 Written off - (462) - -

At31December 12,959 12,849 88,026 87,700



22. Cash and bank balances

Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Cashinhandandatbanks 10,580 7,982 244 632 Depositswithlicensedbanks 7,931 11,901 - -

18,511 19,883 244 632 Cashatbanksearninterestatfloatingratesbasedondailybankdepositrates.Depositsaremadeforvaryingperiodsof betweenonedayto365daysdependingontheimmediatecashrequirementsof theGroup,andearninterestsat the respectivedepositrates.Theweightedaverageeffectiveinterestrateasat31December2015fortheGroupwas3.0% (2014:3.0%)perannum. DepositswithlicensedbanksoftheGroupamountingtoRM600,000(2014:RM600,000)arepledgedassecuritiesfor borrowings(Note23).

Forthepurposeofthestatementsofcashflows,cashandcashequivalentscomprisethefollowingatthereportingdate: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Cashandshort-termdeposits 18,511 19,883 244 632 Less:Bankoverdrafts(Note23) - (950) - - Depositswithlicensedbanks (1,034) (1,034) - -

Cashandcashequivalents 17,477 17,899 244 632 23. Borrowings Group Company Maturity 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Current Secured: Bankers’ acceptances On demand 350 303 - - Exportbills Ondemand - - - - Obligationsunderfinance leases(Note29(b)) 2016 787 565 82 88 Bankoverdrafts(Note22) Ondemand - 950 - -

1,137 1,818 82 88

Non-current Secured: Obligationsunderfinance leases(Note29(b)) 2017-2021 1,657 1,190 283 228 Total borrowings 2,794 3,008 365 316



23. Borrowings (continued) Theremainingmaturitiesoftheborrowingsasat31December2015areasfollows: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Ondemandorwithinoneyear 1,137 1,818 82 88 Morethan1yearandlessthan2years 724 504 82 89 Morethan2yearsandlessthan5years 933 686 201 139

2,794 3,008 365 316

Bank overdrafts Secured: -BFR+1%perannum BankoverdraftsaredenominatedinRMandaresecuredbyafloatingchargeovercertainproperty,plantandequipment (Note14),corporateguaranteeprovidedbytheCompany(Note25)andshort-termdepositswithlicensedbanks(Note22). Bankers’ acceptances Theweightedaverageinterestratesatthereportingdateforbankers’acceptanceswas4.13%(2014:5.16%)perannum. Thebankers’acceptancesaresecuredbycorporateguaranteeprovidedbytheholdingcompany. Obligationsunderfinanceleases

Theseobligationsaresecuredbyachargeovertheleasedassets(Note14).Theaveragediscountrateimplicitintheleasesis6.5%(2014:5.9%)perannum.

24. Retirement benefit obligations

The Group operates an unfunded, defined benefit Retirement Benefit Scheme for eligible employees. The Group’s obligations under this Scheme are determined based on triennial actuarial valuation using the projected unit credit method.ThelatestactuarialvaluationofthisSchemewascarriedoutasat31December2015. Theamountsrecognisedinthestatementsofprofitorlossandothercomprehensiveincomeareasfollows: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Chargedtoprofitorloss: Currentservicecost 432 308 39 23 Pastservicecost 162 - 47 - Interest cost 405 322 20 11

Totalincludedinemployeebenefitsexpense(Note10) 999 630 106 34 Recognisedinothercomprehensiveincome: Netlossonremeasurementofdefined benefitobligations (1,500) - (89) -

(501) 630 17 34



24. Retirement benefit obligations (continued) Theamountsrecognisedinthestatementsoffinancialpositionaredeterminedasfollows: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Presentvalueofunfunded definedbenefitobligations 8,545 6,281 431 236 Changesinpresentvalueofdefinedbenefitobligationsareasfollows: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 At1January 6,281 5,749 236 202 Recognisedinprofitorloss(Note10) 999 630 106 34 Recognisedinothercomprehensiveincome: -Netlossonremeasurementofdefined 1,500 - 89 - benefitobligations Benefitspaid (235) (98) - -

At31December 8,545 6,281 431 236 Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Analysed as: Current 508 281 - - Non-current Laterthan1yearbutnotlaterthan2years 389 698 - - Laterthan2yearsbutnotlaterthan5years 1,785 2,306 36 33 Laterthan5years 5,863 2,996 395 203

8,037 6,000 431 236

8,545 6,281 431 236

IncalculatingthedefinedbenefitobligationsandtherelatedcurrentservicecostandpastservicecostusingtheProjected Unit Credit Method for the Group and the Company, the following assumptions were used.The assumptions were calculatedonaweightedaveragebasis. 2015 2014 % % Discount rate 5.5 5.8 Expectedrateofsalaryincrease 5.0 5.0



24. Retirement benefit obligations (continued) Thesensitivityofthedefinedbenefitobligationtochangesintherelevantactuarialassumptionsisasfollows: Group Company Defined benefit Defined benefit obligations obligations Increase Decrease Increase Decrease RM’000 RM’000 RM’000 RM’000 2015 Discountrate(1%ofmovement) (668) 757 (46) 53 Expectedrateofsalaryincrease(1%ofmovement) 753 (677) 53 (47) 25. Trade and other payables

Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Current Trade payables Third parties 3,077 4,096 - - Other payables Accruals 7,411 8,732 45 26 GoodsandServicesTax(“GST”)payable 90 - 28 - Sundry payables 2,950 2,929 780 775 Amount due to holding company 14,153 14,277 11,000 10,871 Amount due to a corporate shareholder 640 640 640 640 Amounts due to subsidiaries - - 17,166 17,321

25,244 26,578 29,659 29,633

28,321 30,674 29,659 29,633 Non-current Other payable Financialguarantee - - - 1 Total trade and other payables 28,321 30,674 29,659 29,634 Less:GSTpayable (90) - (28) - Add:Borrowings(Note23) 2,794 3,008 365 316

Totalfinancialliabilitiescarriedatamortisedcost 31,025 33,682 29,996 29,950 (a) Trade payables

Theseamountsarenon-interestbearing.Tradepayablesarenormallysettledon60day(2014:60day)terms. (b) Other payables Theseamountsarenon-interestbearing.Otherpayablesarenormallysettledonanaveragetermofthreemonths (2014:averagetermofthreemonths).



25. Trade and other payables (continued) (c) Amount due to holding company

Theamountduetoholdingcompanyisunsecured,bearsinterestat4%(2014:4%)perannumandhasnofixed termsofrepayment. (d) Amounts due to a corporate shareholder The amount due to a corporate shareholder relates to advances for working capital purposes named as Al- Mudharabah. Theseadvancesbearinterestat5%(2014:5%)perannum,arerepayablewithinfour(4)years(inclusiveofone(1) yeargraceperiod)startingfrom13July2012andaresecuredbythecorporateguaranteeissuedbytheCompany.In prioryear, theCompanyhadcommitted toanearly settlementof theseadvancesand in return, ithasobtained approvalforawaiverofinterestasdisclosedinNote27tothefinancialstatements. (e) Amounts due to subsidiaries Theamountsduetosubsidiariesareunsecured,non-interestbearingandrepayableondemand.Theamountsdue to subsidiariesare in relation to fundsplacedbycertainsubsidiaries in thePoolFundAccountmanagedby the Company.TheFundistobeusedforworkingcapitalrequirementsbythecompanieswithintheGroup. (f) Financial guarantee ThisamountrelatestoacorporateguaranteeprovidedbytheCompanytobanksforRM350,000(2014:RM303,000) borrowings(Note23)takenbysubsidiaries. 26. Share capital and share premium

Group and Company Number of ordinary share of RM0.50 each Amount 2015 2014 2015 2014 ‘000 ‘000 RM’000 RM’000 Authorised share capital At1January/31December 200,000 200,000 100,000 100,000 Number of ordinary share of RM0.50 each Amount Total Share Share share capital capital capital (Issued and (Issued and Share and share fully paid) fully paid) premium premium ‘000 RM’000 RM’000 RM’000 At1January2014/31December2015 134,546 67,273 625 67,898 TheholdersofordinarysharesareentitledtoreceivedividendsasandwhendeclaredbytheCompany.Allordinaryshares carryonevotepersharewithoutrestrictionsandrankequallywithregardtotheCompany’sresidualassets.



27. Other reserves

Equity Reserve contribution Fair value arising from adjustment from owners reserve merger Total RM’000 RM’000 RM’000 RM’000 Group At 1 January 2014 200 6,546 (22,718) (15,972)

Other comprehensive loss: Available-for-salefinancialassets -Lossonfairvaluechanges - (1,230) - (1,230)

At 31 December 2014 and 1 January 2015 200 5,316 (22,718) (17,202)

Other comprehensive loss: Available-for-salefinancialassets -Lossonfairvaluechanges - (1,085) - (1,085)

Transactionwithowners: -Waiverofamountduetoashareholder 1,062 - - 1,062

At 31 December 2015 1,262 4,231 (22,718) (17,225)

2015 2014 RM’000 RM’000 Company Equity contribution from owners

At 1 January 200 200

Transaction with owners: - Waiver of amount due to a shareholder 767 -

At 31 December 967 200 (a) Equity contribution from owners Theamountrepresentswaiverofamountsduetoshareholders. (b) Fair value adjustment reserve Fairvalueadjustmentreserverepresentsthecumulativefairvaluechanges,netoftax,ofavailable-for-salefinancial assetsuntiltheyaredisposedoforimpaired. (c) Reserve arising from merger Reservearisingonmergerrepresentsthedifferencebetweenthenominalvalueofthesharesissuedasconsideration fortheacquisitionofPermintTimberCorporationSdn.Bhd.anditssubsidiariesandthenominalvalueoftheshares transferredfortheseinvestments.



28. Related party transactions (a) Inadditiontotherelatedpartyinformationdisclosedelsewhereinthefinancialstatements,thefollowingsignificant transactionsbetweentheCompanyandrelatedpartiestookplaceattermsagreedbetweenthepartiesduringthe financialyear: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Rental income from land and building chargedtoasubsidiary(Note4) - - (728) (728) Managementfeeschargedtosubsidiaries(Note4) - - (1,725) (1,725) Dividendincomefromsubsidiaries(Note4) - - (636) (8,726) Interestexpenseonloansandadvances: -holdingcompany(Note8) 929 263 886 199 -acorporateshareholder(Note8) - 118 - 118 Building rental charged by a related company - - 48 48 Interest expense on amounts due to subsidiaries(Note8) - - 1 1 (b) Compensationofkeymanagementpersonnel Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Short-termemployeebenefits 2,718 2,639 920 995 Definedcontributionplan 400 357 125 116 Definedbenefitplan 209 126 33 11

3,327 3,122 1,078 1,122 Includedincompensationofkeymanagementpersonnelis: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Directors’remuneration(Note11) 1,061 932 506 495 29. Commitments (a) Capital commitments Capitalexpenditureasatreportingdateisasfollows: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Approvedandcontractedfor: Motor vehicle - - 60 - Approvedbutnotcontractedfor: Plantandmachinery 423 1,991 - - Motor vehicles 350 890 - -

773 2,881 60 -



29. Commitments (continued) (b) Finance lease commitments TheGroupand theCompanyhavefinance leases for certain itemsof plant andequipment andmotor vehicles (Note14).Theseleasesdonothavetermsofrenewal,buthavepurchaseoptionsatnominalvaluesattheendofthe leaseterm.

Futureminimumleasepaymentsunderfinance leases togetherwith thepresentvalueof thenetminimumlease paymentsareasfollows: Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Minimum lease payments: Notlaterthan1year 831 655 92 101 Morethan1yearandlessthan2years 833 567 92 98 Morethan2yearsandlessthan5years 1,109 755 224 144

Total minimum lease payments 2,773 1,977 408 343 Less:Amountsrepresentingfinancecharges (329) (222) (43) (27)

Presentvalueofminimumleasepayments 2,444 1,755 365 316 Present value of payments: Notlaterthan1year 787 565 82 88 Morethan1yearandlessthan2years 724 503 82 89 Morethan2yearsandlessthan5years 933 687 201 139

Presentvalueofminimumleasepayments 2,444 1,755 365 316 Less:Amountduewithin12months(Note23) (787) (565) (82) (88)

Amountdueafter12months(Note23) 1,657 1,190 283 228

Thehirepurchaseandleaseliabilitiesboreanaverageinterestrateatthereportingdateof6.5%(2014:5.9%)per annum.TheGroupandtheCompanyhavefinanceleasesandhirepurchasecontractsforcertainitemsofplantand machineryandmotorvehicles(seeNote23). 30. Contingent liability (unsecured) Legal claim One(1)lawsuithadbeenfiledinprioryearsbythirdpartiesagainsttheCompanyforcompensationclaimamountingto RM38,985forallegedbreachofcontract.Inprioryear,thecasehadbeenwithdrawnbythethirdparties.



31. Fair value of financial instruments (a) Fairvalueoffinancialinstrumentsbyclassesthatarenotcarriedatfairvalueandwhosecarryingamountsarenot reasonableapproximationoffairvalue. Group Company Carrying Fair Carrying Fair Note amount value amount value RM’000 RM’000 RM’000 RM’000 2015 Financial liabilities: Borrowings(non-current) -Obligationsunderfinanceleases 29(b) 1,657 1,978 283 292 2014 Financial liabilities: Borrowings(non-current) -Obligationsunderfinanceleases 29(b) 1,190 1,121 228 234 (b) Determinationoffairvalue Financialinstrumentsthatarenotcarriedatfairvalueandwhosecarryingamountsarereasonableapproximationof fair value Thefollowingareclassesoffinancialinstrumentsthatarenotcarriedatfairvalueandwhosecarryingamountsare reasonableapproximationoffairvalue: Note Tradeandotherreceivables(current) 21 Borrowings(current) 23 Tradeandotherpayables(current) 25 Thecarryingamountsofthesefinancialassetsandliabilitiesarereasonableapproximationoffairvaluesduetotheir short-termnature. Thecarryingamountsofthecurrentportionofborrowingsarereasonableapproximationsoffairvaluesduetothe insignificantimpactofdiscounting. Amountsduefrom/tosubsidiariesandassociatesandloansto/fromsubsidiaries The fairvaluesof thesefinancial instrumentsareestimatedbydiscountingexpected futurecashflowsatmarket incrementallendingrateforsimilartypesoflending,borrowingorleasingarrangementsatthereportingdate. Quotedequityinstruments Fairvalueisdetermineddirectlybyreferencetotheirpublishedmarketbidpriceatthereportingdate. Financialguarantee Fairvalue isdeterminedbasedonprobabilityweighteddiscountedcashflowmethod.Theprobabilityhasbeen estimatedandassignedforthefollowingkeyassumptions: - Thelikelihoodoftheguaranteedpartydefaultingwithintheguaranteedperiod; - The exposure on the portion that is not expected to be recovered due to the guaranteed party’s default; - Theestimatedlossexposureifthepartyguaranteedweretodefault.



31. Fair value of financial instruments (continued) (c) Valuationoffinancialinstruments

Thetablebelowanalysesfinancialinstruments,measuredatfairvalueattheendofthereportingdate,bythelevel inthefairvaluehierarchyintowhichthefairvaluemeasurementiscategorised: Level 1 Note RM’000 Group 31 December 2015 Financial asset: Investmentsecurities:Available-for-sale 19 6,672 31 December 2014 Financial asset: Investmentsecurities:Available-for-sale 19 7,758 32. Financial risk management objectives and policies TheGroupandtheCompanyareexposedtofinancialrisksarisingfromtheiroperationsandtheuseoffinancialinstruments. Thekeyfinancialrisksincludecreditrisk,liquidityrisk,interestraterisk,foreigncurrencyriskandmarketpricerisk. It is,andhasbeen throughout thecurrentandpreviousfinancialyear, theGroup’spolicy thatnoderivativesshallbe undertakenexceptfortheuseashedginginstrumentswhereappropriateandcost-efficient.TheGroupandtheCompany donotapplyhedgeaccounting. ThefollowingsectionsprovidedetailsregardingtheGroup’sandCompany’sexposuretotheabove-mentionedfinancial risksandtheobjectives,policiesandprocessesforthemanagementoftheserisks. (a) Credit risk Creditriskistheriskoflossthatmayariseonoutstandingfinancialinstrumentsshouldacounterpartydefaultonits obligations.TheGroup’sandtheCompany’sexposuretocreditriskarisesprimarilyfromtradeandotherreceivables. Forotherfinancialassets(includinginvestmentsecuritiesandcashandbankbalances),theGroupandtheCompany minimisecreditriskbydealingexclusivelywithhighcreditratingcounterparties. TheGroup’sobjectiveistoseekcontinualrevenuegrowthwhileminimisinglossesincurredduetoincreasedcredit riskexposure.TheGrouptradesonlywithrecognisedandcreditworthythirdparties.ItistheGroup’spolicythatall customerswhowishtotradeoncredittermsaresubjecttocreditverificationprocedures.Inaddition,receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant.

TheGroupdoesnothaveanysignificantexposuretoanyindividualcustomerorcounterpartynordoesithaveany majorconcentrationofcreditriskrelatedtoanyfinancialinstruments.



32. Financial risk management objectives and policies (continued)

(a) Credit risk (continued)

Exposuretocreditrisk TheGroupdeterminesconcentrationsofcreditriskbymonitoringthecountryandindustrysectorprofileofitstrade receivablesonanongoingbasis.ThecreditriskconcentrationprofileoftheGroup’stradereceivablesatthereporting dateareasfollows: Group 2015 2014 RM’000 % of total RM’000 % of total By industry sectors: Harvesting,sawmillingandkilndryingoftimber 2,248 20% 2,199 17% Manufacturing 8,548 79% 9,415 78% Others 63 1% 73 5%

10,859 100% 11,687 100% Financialassetsthatareneitherpastduenorimpaired InformationregardingtradeandotherreceivablesthatareneitherpastduenorimpairedisdisclosedinNote21. Depositswithbanksandotherfinancialinstitutions,andinvestmentsecuritiesthatareneitherpastduenorimpaired areplacedwithorenteredintowithreputablefinancialinstitutionsorcompanieswithhighcreditratingsandno historyofdefault.

Financialassetsthatareeitherpastdueorimpaired InformationregardingfinancialassetsthatareeitherpastdueorimpairedisdisclosedinNote21. (b) Liquidity risk LiquidityriskistheriskthattheGrouportheCompanywillencounterdifficultyinmeetingfinancialobligationsdue toshortageoffunds.TheGroup’sandtheCompany’sexposuretoliquidityriskarisesprimarilyfrommismatchesof thematuritiesoffinancialassetsandliabilities.TheGroup’sandtheCompany’sobjectiveistomaintainabalance betweencontinuityoffundingandflexibilitythroughtheuseofstand-bycreditfacilities. Analysis of financial instruments by remaining contractual maturities ThetablebelowsummarisesthematurityprofileoftheGroup’sandtheCompany’sliabilitiesatthereportingdate basedoncontractualundiscountedrepaymentobligations. 2015 RM’000 On demand or within One to one year five years Total Group Financialliabilities: Trade and other payables 28,321 - 28,321 Borrowings 1,181 1,942 3,123

Totalundiscountedfinancialliabilities 29,502 1,942 31,444




(b) Liquidity risk (continued)

Analysis of financial instruments by remaining contractual maturities (continued)

2015 RM’000 On demand or within One to one year five years Total Company Financialliabilities: Trade and other payables 29,659 - 29,659 Borrowings 92 316 408

Totalundiscountedfinancialliabilities 29,751 316 30,067

2014 RM’000 On demand or within One to one year five years Total Group Financialliabilities: Tradeandotherpayables 30,674 - 30,674 Borrowings 1,908 1,322 3,230

Totalundiscountedfinancialliabilities 32,582 1,322 33,904 Company Financialliabilities: Tradeandotherpayables 29,633 1 29,634 Borrowings 101 242 343

Totalundiscountedfinancialliabilities 29,734 243 29,977 (c) Interest rate risk Interestrateriskistheriskthatthefairvalueorfuturecashflowsoffinancialinstrumentwillfluctuatebecauseof changesinmarketinterestrates.AstheGroupandCompanyhavenosignificantinterest-bearingfinancialassets, theGroup’sandtheCompany’sincomeandoperatingcashflowsaresubstantiallyindependentofchangesinmarket interestrates.

TheGroup’sand theCompany’s interest-bearingfinancialassetsaremainly short term innatureandhavebeen mostlyplacedinfixeddeposits. TheGroup’sinterestrateriskarisesprimarilyfrominterest-bearingborrowings.Borrowingsatfloatingratesexpose theGrouptocashflowinterestraterisk.TheGroupmanagesitsinterestrateexposurebymaintainingamixoffixed andfloatingrateborrowings.BorrowingsobtainedatfixedratesexposetheGrouptofairvalueinterestraterisk. Theinformationonmaturitydatesandeffectiveinterestratesoffinancialassetsandliabilitiesaredisclosedintheir respectivenotes.




(c) Interest rate risk (continued)

Sensitivity analysis for interest rate risk Attheendofthereportingyear,ifRinggitMalaysia(“RM”)interestrateshadbeen10(2014:10)basispointshigher withallothervariablesheldconstant,theGroup’slossnetoftax(2014:profitnetoftax)wouldhavebeenRMNil (2014:RM1,000)lower,arisingmainlyasaresultofhigherinterestexpenseonfloatingrateloansandborrowings. The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable marketenvironment.

(d) Foreign currency risk Foreigncurrencyriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecause ofchangesinforeignexchangerates. TheGrouphastransactionalcurrencyexposurearisingfromsalesorpurchasesthataredenominatedinacurrency otherthantherespectivefunctionalcurrenciesofGroupentities,primarilyRM.Theforeigncurrenciesinwhichthese transactionsaredenominatedaremainlyUnitedStatesDollars(“USD”). ThenetunhedgedfinancialassetsandfinancialliabilitiesoftheGroupthatarenotdenominatedintheirfunctional currenciesareasfollows:

2015 2014 RM RM Financial assets Trade and other receivables 666,551 613,279

(e) Market price risk

MarketpriceriskistheriskthatthefairvalueorfuturecashflowsoftheGroup’sfinancialinstrumentswillfluctuate becauseofchangesinmarketprices(otherthaninterestorexchangerates). TheGroupisexposedtoequitypriceriskarisingfromitsinvestmentinquotedequityinstruments.Thequotedequity instruments inMalaysia are listed on the BursaMalaysia Securities Berhad.These instruments are classified as available-for-salefinancialassets.TheGroupdoesnothaveexposuretocommoditypricerisk,other thantimber price. 33. Capital management TheprimaryobjectiveoftheGroup’scapitalmanagementistoensurethatitmaintainsastrongcreditratingandhealthy capitalratiosinordertosupportitsbusinessandmaximiseshareholdervalue. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. Tomaintainoradjustthecapitalstructure,theGroupmayadjustthedividendpaymenttoshareholders,returncapitalto shareholdersorissuenewshares.Nochangesweremadeintheobjectives,policiesorprocessesduringtheyearsended 31December2015and31December2014. TheGroupmonitorscapitalusingagearingratio,whichisnetdebtdividedbytotalcapitalplusnetdebt.TheGroup includeswithinnetdebt,loansandborrowings,tradeandotherpayables,lesscashandbankbalances.Capitalincludes equityattributabletotheownersoftheparentlessfairvalueadjustmentreserve.



33. Capital management (continued)

Group Company Note 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Borrowings 23 2,794 3,008 365 316 Tradeandotherpayables 25 28,321 30,674 29,659 29,634 Less:Cashandbankbalances 22 (18,511) (19,883) (244) (632)

Net debt 12,604 13,799 29,780 29,318

Equityattributabletothe ownersoftheparent 82,728 86,784 26,220 27,089 Less:Fairvalueadjustmentreserve 27 (4,231) (5,316) - -

Total capital 78,497 81,468 26,220 27,089 Capitalandnetdebt 91,101 95,267 56,000 56,407 Gearingratio 14% 14% 53% 52% 34. Segment information

Formanagementpurposes,theGroupisorganisedintobusinessunitsbasedontheirproductsandservices,andhasthree reportableoperatingsegmentsasfollows: (i) Harvesting,sawmillingandkilndryingoftimber; (ii) Manufacturing-manufacturingandtradingofglass;and (iii) Others-includinginvestmentholding,marketinganddistributionagentandtradingofwoodendoors,noneofwhich areofasufficientsizetobereportedseparately. Exceptasindicatedabove,nooperatingsegmentshavebeenaggregatedtoformtheabovereportableoperatingsegments. Management monitors the operating results of its business units separately for the purpose of making decisions about resourceallocationandperformanceassessment.Segmentperformance isevaluatedbasedonoperatingprofitor loss which, incertainrespectsasexplainedin the tablebelow, ismeasureddifferently fromoperatingprofitor loss in the consolidatedfinancialstatements.Groupfinancing(includingfinancecosts)andincometaxesaremanagedonagroup basisandarenotallocatedtooperatingsegments.



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ions

fin

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al st

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ents

20

15

201

4

201

5

201

4

201

5

201

4

201

5

201

4

2

015

2

014

RM

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RM

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R

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RM’0

00

RM’0

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RM’0

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RM

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R

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Not

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RM

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R

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Re

venu

e

Externalcustomers

42,2

85

74,830

28,

131

31,317

3,6

83

207

-

-

7

4,09

9

106,354

Inte

r-seg

men

t 1

8,30

0

20,356

-

-

4,6

49

19,748

(22,

949)

(40,104)

A

-

-

To

tal r

even

ue

60,5

85

95,186

28,1

31

31,317

8,3

32

19,955

(22,

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4,09

9

106,354

Re

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In

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com

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4

237

78

52

3

34

-

-

3

45

323

Div

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com

e 1

22

169

-

-

2,1

47

17,247

(2,1

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(17,247)

A

122

169

Dep

reci

atio

n

2,16

7

1,995

1,4

19

1,779

811

776

-

-

4

,397

4,550

Oth

er n

on-c

ash

expe

nses

(4

9)

572

417

421

513

16,781

424

(16,465)

B

1,3

05

1,309

Segm

ent(loss)/profit

(3,8

44)

22,322

71

379

1,7

41

(1,955)

(1,5

23)

(351)

C

(3,5

55)

20,395

As

sets

Ad

ditio

ns to

no

n-cu

rrent

ass

ets

489

2,500

2,7

80

1,118

334

430

-

-

D

3,6

03

4,048

Se

gmen

t ass

ets

109,

129

121,179

22,

656

22,303

112

,466

110,865

(121

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)(125,629)

E

123

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128,718

Se

gmen

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41,9

62

47,914

8,5

68

7,352

165

,636

166,352

(175

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)(179,684)

F

40,

475

41,934



34. Segment information (continued) Notes Natureofadjustmentsandeliminationstoarriveatamountsreportedintheconsolidatedfinancialstatements A Inter-segmentrevenuesandexpensesareeliminatedonconsolidation. B Othernon-cashexpensesconsistofthefollowingitemsaspresentedintherespectivenotestothefinancial statements:

Note 2015 2014 RM’000 RM’000 Impairmentlossesontradeandotherreceivables 9 211 582 Provisionforshort-termaccumulatingcompensatedabsences 10 95 97 Provisionforretirementbenefitsobligations 10 999 630

1,305 1,309 C Thefollowingitemsare(deductedfrom)/addedtosegmentprofittoarriveat“profit/(loss)beforetax”presented intheconsolidatedstatementofprofitorlossandothercomprehensiveincome: 2015 2014 RM’000 RM’000 Dividend (2,147) (17,247) (Reversalof)/impairmentlossesontradeandotherreceivables (424) 16,465 Share of results of associate 906 263 Loss from intercompany sales 142 168

(1,523) (351) D Additionstonon-currentassetsconsistof: 2015 2014 RM’000 RM’000

Property,plantandequipment(Note14) 3,603 4,048 E The following itemsarededucted fromsegmentassets toarriveat totalassets reported in theconsolidated statementoffinancialposition: 2015 2014 RM’000 RM’000 Inter-segment assets (121,048) (125,629)



34. Segment information (continued) F Thefollowingitemsareaddedto/(deductedfrom)segmentliabilitiestoarriveattotalliabilitiesreportedinthe consolidatedstatementoffinancialposition: 2015 2014 RM’000 RM’000 Deferred tax liabilities 2 37 Inter-segment liabilities (175,693) (179,721)

(175,691) (179,684) Geographicalinformation Revenuebasedonthegeographicallocationofcustomersisasfollows: Revenue 2015 2014 RM’000 RM’000 Malaysia 69,721 102,992 UnitedKingdom 1,321 949 Other regions 3,057 2,413

74,099 106,354

35. Subsequent event On28January2016,PermintPlywoodSdn.Bhd.(“PPSB”),awholly-ownedsubsidiaryofPermintTimberCorporation Sdn.Bhd.whichinturnisawholly-ownedsubsidiaryoftheCompanyhasacquired3ordinarysharesofRM1.00each, representing60%oftheissuedandpaid-upsharecapitalofGPDynamicVentureSdn.Bhd.(“GPDVSB”or“thejoint venturecompany”),ajointventurecompanyofPPSBandCymaoPlywoodSdn.Bhd.(“CPSB”)fromanon-relatedthird partyforatotalcashconsiderationofRM3.00. Thereafter,on11February2016,PPSBhassubscribedfor959,997newordinarysharesofRM1.00eachforatotalcash considerationofRM959,997.Accordingly,thetotalinvestmentofPPSBhasincreasedtoRM960,000,representing60% oftheissuedandfullypaidupcapitalofGPDVSB. GPDVSBwasincorporatedon29December2015andiscurrentlydormant.TheauthorisedsharecapitalofGPDVSB isRM10,000,000dividedinto10,000,000ordinarysharesofRM1.00eachandtheissuedandfullypaid-upsharecapital is RM1,600,000 divided into 1,600,000 ordinary shares of RM1.00 each.The remaining 640,000 ordinary shares of RM1.00eachor40%oftheissuedandfullypaid-upcapitalofGPDVSBisheldbyCPSB. 36. Authorisation of financial statements for issue Thefinancialstatementsfortheyearended31December2015wereauthorisedforissueinaccordancewitharesolution ofthedirectorson11April2016.



37. Supplementary information - Breakdown of realised and unrealised profits or losses Thebreakdownoftheretainedearnings/(accumulatedlosses)oftheGroupandoftheCompanyasat31December2015 and31December2014intorealisedandunrealisedlossesispresentedinaccordancewiththedirectiveissuedbyBursa MalaysiaSecuritiesBerhaddated25March2010and20December2010,prepared inaccordancewith theGuidance onSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosurePursuantto BursaMalaysiaSecuritiesBerhadListingRequirements,asissuedbytheMalaysianInstituteofAccountants. Group Company 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 TotalaccumulatedlossesoftheCompany and its subsidiaries - Realised (196,751) (189,696) (42,645) (40,595) -Unrealised (150) (1,678) - (414)

(196,901) (191,374) (42,645) (41,009) Total accumulated losses from associates - Realised (10,576) (11,482) - -

(207,477) (202,856) (42,645) (41,009) Less:Consolidationadjustments (239,532) (238,944) - -

Totalretainedearnings/(accumulatedlosses) asperfinancialstatements 32,055 36,088 (42,645) (41,009)


Analysis of Shareholdings - as at 31 March 2016Analisa Pegangan Saham - pada 31 Mac 2016

Authorised Share Capital RM100,000,000Modal Saham Dibenarkan

Issued and Fully Paid Capital RM67,273,258Modal Saham Berbayar

Class of Share Ordinary Shares of RM0.50 eachJenis Saham Saham Biasa bernilai RM0.50 setiap satu

DISTRIBUTION OF SHAREHOLDINGS AS AT 31 MARCH 2016AGIHAN PEGANGAN SAHAM PADA 31 MAC 2016

No. of % Over No. of % Over TotalCategory Shares Total Shares % Holders ShareholdersKategori Bilangan Jumlah Saham Bilangan % Jumlah Keseluruhan Saham Keseluruhan Pemegang Saham Pemegang Saham

1 -99 1,014 0.000 47 1.411 100 - 1,000 1,139,960 0.847 1,175 35.285 1,001 - 10,000 6,796,159 5.051 1,601 48.078 10,001 - 100,000 13,345,001 9.918 442 13.273 100,001 - 6,727,324 (*) 15,426,500 11.465 62 1.8616,727,325 and above / 97,837,881 72.716 3 0.090dan ke atas (**)

Grand Total /Jumlah Keseluruhan 134,546,515 100.00 3,330 100.00 Remark: * less than 5% of issued shares Catatan: *Kurang daripada 5% saham terbitan** 5% and above of issued shares ** 5% dan ke atas saham terbitan

SUBSTANTIAL SHAREHOLDERS AS AT 31 MARCH 2016PEMEGANG SAHAM UTAMA PADA 31 MAC 2016

Name No. of share %Nama Bilangan Pegangan % Saham TERENGGANU INCORPORATED SDN BHD 86,365,281 64.189LEMBAGA TABUNG AMANAH WARISAN 11,472,600 8.526NEGERI TERENGGANU

TOTAL / JUMLAH 97,837,881 72.716

Name of Directors / Nama Pengarah No. of Shares / Bilangan Pegangan

Dato’ Sri Haji Abdul Rahman Bin Bakar 0

Dato’ Haji Osman Bin Muda 0

Dato’ Haji Wan Nawawi Bin Haji Wan Ismail 0

Dato’ Sabri Bin Mohd Noor 0

Dato’ Haji Mohamad Nor Bin Ibrahim 0

Haji Jusoh Bin Ali 0

Rosli Bin Abd Rahman 0


List of Top Shareholders/ Depositors as at 31 March 2016Senarai Tiga Puluh Pemegang Saham Terbesar pada 31 Mac 2016

NAME NORMAL HOLDINGS %NAMA PEGANGAN SAHAM %

1 TERENGGANU INCORPORATED SDN BHD 72,931,281 54.205 2 TERENGGANU INCORPORATED SDN BHD 13,434,000 9.984 3 LEMBAGA TABUNG AMANAH WARISAN NEGERI TERENGGANU 11,472,600 8.526 4 MAYBANK NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR TAY ONG NGO @ TAY BOON FANG 1,925,400 1.431 5 LIM KOOI FUI 1,158,700 0.861 6 LIM KOOI FUI 605,000 0.449 7 RHB CAPITAL NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR WENDY LEE YOKE PENG (CEB) 600,000 0.445 8 TAY BOON TECK 510,000 0.379 9 KHOO KAY LEONG 455,200 0.338 10 CHIA PHAY CHENG 450,000 0.334 11 SYED OMAR SHAHABUDDIN BIN SYED ABDULLAH 400,000 0.297 12 TAY ONG NGO @ TAY BOON FANG 330,000 0.245 13 TAN BON TIONG 305,500 0.227 14 CHUA KENG KIONG 300,000 0.222 15 OOI SAY HUP 292,100 0.217 16 GAN KHO @ GAN HONG LEONG 290,000 0.215 17 CHEONG PANG KWAN 287,000 0.213 18 CITIGROUP NOMINEES (ASING) SDN BHD EXEMPT AN FOR OCBC SECURITIES PRIVATE LIMITED (CLIENT A/C-NR) 280,000 0.208 19 MAYBANK NOMINEES (TEMPATAN) SDN BHD KENNETH KOH BENG HOCK 280,000 0.208 20 AMSEC NOMINEES (ASING) SDN BHD DBS VICKERS SECS (S) PTE LTD FOR LIM KIEN JHEE 276,000 0.205 21 MAYBANK NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR TAN PUAY SENG 270,000 0.200 22 MAYBANK SECURITIES NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR CHEANG CHEE LEONG (MARGIN) 250,000 0.185 23 TA NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR KOONG KAT LONG 250,000 0.185 24 PUBLIC NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR TAN KAI KUI (E-PDG) 215,000 0.159 25 PUBLIC NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR TAN KAI YING (E-PDG) 207,000 0.153 26 AFFIN HWANG NOMINEES (TEMPATAN) SDN. BHD. PLEDGED SECURITIES ACCOUNT FOR ESA BIN MOHAMED 200,000 0.148 27 MAYBANK SECURITIES NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR LEONG CHEE KWONG (REM 825) 200,000 0.148 28 CITIGROUP NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR ANG POH ENG (472497) 195,800 0.145 29 LOW TIK KHUAN 184,000 0.136 30 RHB NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR TAN PUAY SENG (32124M) 178,800 0.132

Total / Jumlah 108,733,381 Total No of Depositors / Jumlah Pendeposit 30 Total Percentage (%) / Jumlah Peratus (%) 80.814


Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN THAT the Twenty-Ninth Annual General Meeting of the Company will be held at Gamelan 3, Primula Beach Hotel, Jalan Persinggahan, 20400 Kuala Terengganu, Terengganu on Monday, 30th May 2016 at 10:30 a.m. for the following purposes:

1. To receive the Audited Financial Statements for the financial year ended 31 December 2015 together with the Reports of the Directors and Auditors thereon. (Please refer to the Explanatory Notes to the Agenda)

2. To re-elect the following directors retiring in accordance with Article 102 of the Articles of Association of the Company:

(a) YBhg Dato’ Sri Abdul Rahman Bin Bakar (Ordinary Resolution 1)(b) YB Dato’ Sabri Bin Mohd Noor (Ordinary Resolution 2)

3. To re-appoint Messrs Ernst & Young as the Auditors of the Company and to authorise the Board of Directors to fix their remuneration. (Ordinary Resolution 3)

AS SPECIAL BUSINESS:

To consider and if thought fit, to pass the following resolutions:

4. Directors’ Fees

“THAT the payment of Directors’ Fees of RM197,113.10 for the financial year ended 31 December 2015 be approved. (Ordinary Resolution 4)

5. Authority to Allot and Issue Shares Pursuant to Section 132D of the Companies Act, 1965

“THAT pursuant to Section 132D of the Companies Act 1965, the Directors be and are hereby empowered to issue shares in the Company, at any time and upon such terms and conditions and for such purposes as the Directors may, in their absolute discretion deem fit, provided that the aggregate number of shares issued pursuant to this resolution in any one financial year does not exceed ten percent (10%) of the issued capital of the Company for the time being and that the Directors be and are also empowered to obtain approval for the listing of and quotation for the additional shares so issued on Bursa Malaysia Securities Berhad and that such authority shall continue in force until the conclusion of the next Annual General Meeting of the Company.” (Ordinary Resolution 5)

6. Proposed Amendments to the Articles of Association of the Company

“THAT the following Articles of Association of the Company be hereby amended:

Existing Article

Article 164

The Directors shall from time to time in accordance with Section 169 of the Act cause to be prepared and laid before the Company in general meeting such as statement of financial position, statement of comprehensive income and reports as are referred to in the section. The interval between the close of a financial year of the Company and the issue of annual audited financial statements together with, the directors’ and auditors’ report shall not exceed four (4) months, or such shorter period as may be prescribed by The Exchange. A copy of each such documents shall not be less than twenty-one (21) days before the date of the meeting be sent to every member, and every debentures holder of the Company under the provisions of the Act or of these Articles. Such documents may be in printed form or in electronic format. The requisite number of copies of each such document as may be required by The Exchange shall at the same time be likewise sent to The Exchange: Provided that this Article shall not require a copy of these documents to be sent to any person of whose address the Company is not aware but any member to whom a copy of these documents has not been sent shall be entitled to receive a copy free of charge on application at the office. In the event that the annual report is sent in electronic format and a member requires a printed form of such documents, the Company shall send such documents to the member within four (4) market days from the date of receipt of the members’ request or such other period as may be prescribed by The Exchange.

Proposed Amended Article

Article 164

The Directors shall from time to time in accordance with Section 169 of the Act cause to be prepared and laid before the Company in general meeting such as statement of financial position, statement of comprehensive income and reports as are referred to in the section. The interval between the close of a financial year of the Company and the issue of annual audited financial statements together with, the directors’ and auditors’ report shall not exceed four (4) months, or such shorter period as may be prescribed by The Exchange. A copy of each such documents shall not be less than twenty-one (21) days before the date of the meeting be sent to every member, and every debentures holder of the Company under the provisions of the Act or of these Articles. Such documents may be in printed form or in electronic format. The requisite number of copies of each such document as may be required by The Exchange shall at the same time be likewise sent to The Exchange: Provided that this Article shall not require a copy of these documents to be sent to any person of whose address the Company is not aware but any member to whom a copy of these documents has not been sent shall be entitled to receive a copy free of charge on application at the office. In the event that the annual report is sent in electronic format and a member requires a printed form of such documents, the Company shall send such documents to the member within four (4) market days from the date of receipt of the members’ request or such other period as may be prescribed by The Exchange.”

7. To transact any other business of which due notice shall have been given.

By Order of the Board

Suhairi bin Sulong(MIA No. 16392)Company SecretaryKuala Terengganu29 April 2016

(Special Resolution 1)


Notes:

1. A member of the Company entitled to attend and vote at the meeting is entitled to appoint not more than two (2) proxies or in the case of a corporation, to appoint a representative to attend and vote in his place.

2. A proxy need not be a member of the Company and the provisions of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company.

3. Where a member of the Company is an authorised nominee as defined under the Security Industry (Central Depositories) Act 1991, it may appoint not more than two (2) proxies in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one (1) 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. Where the authorised nominee appoint two (2) proxies or where an exempt authorised nominee appoint two (2) or more proxies to attend the same meeting, the authorised nominee or exempt authorised nominee shall specify the proportion of shareholdings to be represented by each proxy.

4. In every notice calling a meeting of the Company there shall appear with reasonable prominence a statement that a member entitled to attend and vote is entitled to appoint not more than two (2) proxies to attend and vote instead of him. Where a member appoints two (2) proxies to attend the same meeting, the member shall specify the proportion of his shareholdings to be represented by each proxy. A 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.

5. The Form of Proxy must be signed by the appointor or his attorney duly authorised in writing or if the appointor is a corporation either under common seal or under the hand of an attorney or an officer duly authorised.

6. Any alteration in the Form of Proxy must be initialled.

7. The Form of Proxy must be deposited at Tricor Investor & Issuing House Services Sdn Bhd, Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, not less than forty eight hours before the time appointed for holding the meeting or adjourned meeting.

8. For the purpose of determining who shall be entitled to attend and vote at the Meeting, the Company shall be requesting Bursa Malaysia Depository Sdn Bhd to make available to the Company a Record of Depositors as at 24 May 2016 and only a depositor whose name appears on such Record of Depositors shall be entitled to attend the meeting.

Explanatory Notes on Special Business:

Item 1 of the Agenda

This item is meant for discussion only. The provisions of Section 169 of the Companies Act, 1965 require that the audited financial statements and the Reports of the Directors and Auditors thereon be laid before the Company at its Annual General Meeting. As such this Agenda item is not a business which requires a motion to be put to vote by shareholders. Item 4 of the Agenda – Ordinary Resolution 4Directors’ Fees

The Ordinary Resolution 4 proposed under item 4 is in accordance with Article 110 of the Company’s Articles of Association, if passed, will authorise the payment of directors’ fees to directors of the Company for their services as directors during the financial year ended 31 December 2015.

Item 5 of the Agenda – Ordinary Resolution 5Authority to Allot and Issue Shares Pursuant to Section 132D of the Companies Act, 1965

The Ordinary Resolution 5 proposed under item 5 is a renewal of the Section 132D mandate obtained from the Shareholders of the Company at the previous Annual General Meeting and, if passed, will empower the Directors to issue shares in the Company up to an amount not exceeding in total ten percent (10%) of the issued share capital of the Company in order to avoid any delay and cost involved in convening a general meeting to approve such issue of shares. This authority, unless revoked or varied at a general meeting, will expire at the conclusion of the next Annual General Meeting of the Company. The Directors did not allot or issue any shares under the same mandate granted last year. Should the mandate be exercised, the Directors will utilise the proceeds raised for possible fund raising exercises including but not limited to further placement of shares for the purpose of funding current and/or future investment projects, working capital and/or acquisitions.

Item 6 of the Agenda – Special Resolution 1Proposed Amendments to the Articles of Association of the Company

The proposed amendments to the Articles of Association of the Company is to bring the Articles of Association of the Company to be in line with the amendments to the Main Market Listing Requirements of Bursa Malaysia Securities Berhad and to enhance administrative efficiency.

Notice of Annual General Meeting (continued)


Statement Accompanying Notice of Annual General Meeting

There is no person seeking election at the Annual General Meeting.

[This Page has inTenTionally Been lefT Blank]

Name of Proxy NRIC No. No. of shares to be represented by proxy %

1.

2.

PROxY FORM

I/We

Company No./NRIC No. (new) (old)

of

being a member of GOLDEN PHAROS BERHAD hereby appoint

NRIC No (new) (old) or failing him/her

NRIC No (new) (old)

of

or failing him/her the Chairman of the Meeting as my/our proxy to vote for me/us on my/our behalf at the 29th Annual General Meeting of the Company to be held at Gamelan 3, Primula Beach Hotel, Jalan Persinggahan, 20400 Kuala Terengganu, Terengganu Darul Iman on Monday, 30th May 2016 at 10:30 a.m and at any adjournment thereof.

( Full name as per NRIC in capital letters)

( Full Address)

(Full address)

Notes:

1. A member of the Company entitled to attend and vote at the meeting is entitled to appoint not more than two (2) proxies or in the case of a corporation, to appoint a representative to attend and vote in his place.

2. A proxy need not be a member of the Company and the provisions of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company.

3. Where a member of the Company is an authorised nominee as defined under the Security Industry (Central Depositories) Act 1991, it may appoint not more than two (2) proxies in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one (1) 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. Where the authorised nominee appoint two (2) proxies or where an exempt authorised nominee appoint two (2) or more proxies to attend the same meeting, the authorised nominee or exempt authorised nominee shall specify the proportion of shareholdings to be represented by each proxy.

4. In every notice calling a meeting of the Company there shall appear with reasonable prominence a statement that a member entitled to attend and vote is entitled to appoint not more than two (2) proxies to attend and vote instead of him. Where a member appoints two (2) proxies to attend the same meeting, the member shall specify the proportion of his shareholdings to be represented by each proxy. A 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.

5. The Form of Proxy must be signed by the appointor or his attorney duly authorised in writing or if the appointor is a corporation either under common seal or under the hand of an attorney or an officer duly authorised.

6. Any alteration in the Form of Proxy must be initialled.

7. The Form of Proxy must be deposited at Tricor Investor & Issuing House Services Sdn Bhd, Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, not less than forty eight hours before the time appointed for holding the meeting or adjourned meeting.

8. For the purpose of determining who shall be entitled to attend and vote at the Meeting, the Company shall be requesting Bursa Malaysia Depository Sdn Bhd to make available to the Company a Record of Depositors as at 24 May 2016 and only a depositor whose name appears on such Record of Depositors shall be entitled to attend the meeting.

GOLDEN PHAROS BERHAD (152205-W)(Incorporated in Malaysia)

(Where two (2) proxies are appointed, please indicate the proportion of your shareholdings to be represented by each proxy.)My/Our proxy is to vote as indicated with an “X” below:If no specific discretion as to voting is given, the proxy will vote or abstain from voting at his discretion:

Dated ________ day of ___________________ 2016

Number of shares held *CDS Account No.

*Applicable for shares under nominee account only

___________________________________Signature of Member/Common Seal

ORDINARY RESOLUTIONS For Against

1. To re-elect YBhg Dato’ Sri Abdul Rahman Bin Bakar as Director.

2. To re-elect YB Dato’ Sabri Bin Mohd Noor as Director.

3. To re-appoint Messrs Ernst & Young as the Auditors of the Company and to authorise the Board of Directors to fix their remuneration.

4. To approve payment of Directors’ Fees.

5. To authorise the Directors to allot and issue shares pursuant to Section 132D of the Companies Act, 1965.

SPECIAL RESOLUTION

1. Proposed Amendments to the Articles of Association of the Company.

STAMP

FOLD HERE

FOLD HERE

Golden Pharos BerhadUnit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3,Bangsar South, No. 8, Jalan Kerinchi,59200 Kuala Lumpur


DENGAN INI DIBERITAHU BAHAWA Mesyuarat Agung Tahunan Syarikat yang ke Dua Puluh Sembilan akan diadakan di Gamelan 3, Primula Beach Hotel, Jalan Persinggahan, 20400 Kuala Terengganu, Terengganu pada hari Isnin, 30 Mei 2016 pada jam 10:30 pagi, untuk tujuan-tujuan berikut:

ArtikelAsal

Artikel 164

Para Pengarah hendaklah dari semasa ke semasa, selaras dengan Akta pada Seksyen 169 menyediakan dan membentangkan kepada Syarikat dalam mesyuarat agung tahunannya, penyata kedudukan kewangan, penyata pendapatan komprehensif dan laporan-laporan seperti yang dirujuk dalam seksyen itu. Selang antara penutupan tahun kewangan Syarikat dan ketersediaan penyata kewangan tahunan yang telah diaudit bersama-sama dengan laporan pengarah dan juruaudit hendaklah tidak melebihi empat (4) bulan atau tempoh yang lebih singkat sebagaimana yang ditetapkan oleh Bursa. Salinan setiap dokumen itu hendaklah tidak kurang daripada dua puluh satu (21) hari sebelum tarikh mesyuarat dihantar kepada semua ahli, dan setiap pemegang debentur Syarikat di bawah peruntukan-peruntukan dalam Akta atau Artikel. Dokumen-dokumen tersebut boleh disediakan di dalam bentuk bercetak atau format elektronik. Salinan bagi setiap dokumen sebagaimana yang dikehendaki oleh Bursa hendaklah pada masa yang sama dihantar ke Bursa: Dengan syarat bahawa Artikel ini tidak menghendaki salinan dokumen-dokumen ini dihantar kepada mana-mana orang yang alamatnya tidak diketahui oleh Syarikat tetapi mana-mana ahli yang kepadanya suatu salinan dokumen-dokumen ini belum dihantar berhak menerima satu salinan secara percuma apabila permohonan dibuat di pejabat. Sekiranya laporan tahunan dihantar dalam format elektronik dan ahli memerlukan dokumen dalam bentuk bercetak, Syarikat hendaklah menghantar dokumen itu kepada ahli dalam tempoh empat (4) hari pasaran dari tarikh penerimaan permintaan daripada ahli itu atau apa-apa tempoh lain sebagaimana yang ditetapkan oleh Bursa.

CadanganPindaanArtikel

Artikel 164

Para Pengarah hendaklah dari semasa ke semasa, selaras dengan Akta pada Seksyen 169 menyediakan dan membentangkan kepada Syarikat dalam mesyuarat agung tahunannya, penyata kedudukan kewangan, penyata pendapatan komprehensif dan laporan-laporan seperti yang dirujuk dalam seksyen itu. Selang antara penutupan tahun kewangan Syarikat dan ketersediaan penyata kewangan tahunan yang telah diaudit bersama-sama dengan laporan pengarah dan juruaudit hendaklah tidak melebihi empat (4) bulan atau tempoh yang lebih singkat sebagaimana yang ditetapkan oleh Bursa. Salinan setiap dokumen itu hendaklah tidak kurang daripada dua puluh satu (21) hari sebelum tarikh mesyuarat dihantar kepada semua ahli, dan setiap pemegang debentur Syarikat di bawah peruntukan-peruntukan dalam Akta atau Artikel. Dokumen-dokumen tersebut boleh disediakan di dalam bentuk bercetak atau format elektronik. Salinan bagi setiap dokumen sebagaimana yang dikehendaki oleh Bursa hendaklah pada masa yang sama dihantar ke Bursa: Dengan syarat bahawa Artikel ini tidak menghendaki salinan dokumen-dokumen ini dihantar kepada mana-mana orang yang alamatnya tidak diketahui oleh Syarikat tetapi mana-mana ahli yang kepadanya suatu salinan dokumen-dokumen ini belum dihantar berhak menerima satu salinan secara percuma apabila permohonan dibuat di pejabat. Sekiranya laporan tahunan dihantar dalam format elektronik dan ahli memerlukan dokumen dalam bentuk bercetak, Syarikat hendaklah menghantar dokumen itu kepada ahli dalam tempoh empat (4) hari pasaran dari tarikh penerimaan permintaan daripada ahli itu atau apa-apa tempoh lain sebagaimana yang ditetapkan oleh Bursa.

(Rujuk Nota Penjelasan kepada Agenda)

(Resolusi Biasa 1)

(Resolusi Biasa 2)

(Resolusi Biasa 3)

(Resolusi Biasa 4)

(Resolusi Biasa 5)

1. Untuk menerima Penyata-penyata Kewangan yang telah diaudit bagi tahun berakhir 31 Disember 2015 berserta Laporan para Pengarah dan Juruaudit mengenainya.

(Resolusi Khas 1)7. Untuk mempertimbangkan lain-lain urusan biasa di mana notis yang sepatutnya telah diterima.

Dengan Perintah Lembaga Pengarah

Suhairi bin Sulong(MIA No. 16392)Setiausaha SyarikatKuala Terengganu29 April 2016

Notis Mesyuarat Agung Tahunan

2. Untuk melantik Pengarah-pengarah berikut yang bersara menurut Artikel 102, Tataurusan Pertubuhan Syarikat:

(a) YBhg Dato’ Sri Abdul Rahman Bin Bakar

(b) YB Dato’ Sabri Bin Mohd Noor

3. Untuk melantik semula Tetuan Ernst & Young sebagai Juruaudit Syarikat dan memberi kuasa kepada para Pengarah untuk menetapkan bayaran mereka

SEBAGAI URUSAN KHAS:

Untuk mempertimbangkan dan meluluskan jika difikir sesuai, resolusi-resolusi di bawah:

4. Yuran Pengarah

“BAHAWA bayaran yuran Pengarah sebanyak RM197,113.10 untuk tahun kewangan berakhir 31 Disember 2015 diluluskan.”

5. KuasauntukmemperuntukandanmenerbitkansahammenurutSeksyen132DAktaSyarikat,1965

“BAHAWA menurut Seksyen 132D Akta Syarikat, 1965, para Pengarah dengan ini diberikan kuasa untuk menerbitkan saham Syarikat ini, pada bila-bila masa dan berdasarkan terma dan syarat dan bertujuan sebagaimana para Pengarah, dalam pertimbangan mutlak mereka fikirkan sesuai, tertakluk pada bilangan agregat saham yang diterbitkan menurut resolusi ini dalam mana-mana tahun kewangan tidak melebihi sepuluh peratus (10%) daripada modal terbitan Syarikat pada waktu itu dan para Pengarah juga diberi kuasa untuk mendapatkan kelulusan bagi penyenaraian dan sebut harga untuk saham-saham tambahan yang diterbitkan di Bursa Malaysia Securities Berhad dan kuasa tersebut akan berkuatkuasa sehingga penggulungan Mesyuarat Agung Tahunan Syarikat yang berikutnya.”

6. CadanganPindaanKeAtasTataurusanPertubuhanSyarikat

“BAHAWA Tataurusan Pertubuhan Syarikat adalah dengan ini dipinda:


Nota-nota:

1. Seorang ahli berhak menghadiri dan mengundi dalam mesyuarat ini berhak melantik tidak lebih dari dua (2) proksi atau sekiranya pelantik adalah sebuah perbadanan, berhak melantik seorang wakil untuk menghadiri dan mengundi bagi pihak dirinya.

2. Seorang proksi tidak semestinya seorang ahli Syarikat dan peruntukan Seksyen 149(1)(b) Akta Syarikat 1965, tidak akan dikenakan ke atas Syarikat.

3. Di mana ahli Syarikat adalah nomini yang dibenarkan sebagaimana definasi di bawah Akta Industri Sekuriti (Central Depositories), 1991, beliau boleh melantik tidak lebih dari dua (2) proksi bagi setiap akaun sekuriti yang dipegangnya dengan saham biasa Syarikat berada dalam kedudukan kredit dalam akaun sekuriti tersebut. Di mana ahli Syarikat adalah nomini berkecuali yang dibenarkan di mana memegang saham biasa Syarikat untuk beberapa pemunya di dalam satu (1) akaun sekuriti (“akaun omnibus”), tiada had kepada bilangan proksi yang akan dilantik oleh nomini berkecuali yang dibenarkan ke atas setiap akaun omnibus yang dipegangnya. Di mana nomini yang dibenarkan melantik dua (2) proksi atau di mana nomini berkecuali yang dibenarkan melantik dua (2) atau lebih proksi untuk hadir mesyuarat yang sama, nomini yang dibenarkan atau nomini berkecuali yang dibenarkan perlu menyatakan kadar pegangan sahamnya yang diwakili oleh setiap proksi.

4. Dalam setiap notis memanggil mesyuarat Syarikat akan tertera satu pernyataan bahawa ahli yang layak untuk hadir dan mengundi berhak untuk melantik tidak lebih dari dua (2) orang proksi untuk hadir dan mengundi bagi pihak dirinya. Jika ahli melantik dua (2) proksi untuk hadir mesyuarat yang sama, maka ahli perlu menyatakan kadar pegangan sahamnya yang diwakili oleh setiap proksi. Proksi yang dilantik untuk hadir dan mengundi di mesyuarat Syarikat akan mempunyai hak yang sama sebagai ahli untuk bercakap di mesyuarat.

5. Surat perlantikan proksi hendaklah ditandatangani oleh pelantik atau wakil kuasa yang dilantik secara bertulis atau sekiranya pelantik adalah sebuah perbadanan, sama ada disempurnakan dengan cop mohornya atau disempurnakan oleh wakil kuasa atau pegawai yang dilantik di bawah surat wakil kuasa.

6. Sebarang pembetulan ke atas surat perlantikan proksi hendaklah diparap.

7. Surat perlantikan proksi mesti diserahkan ke Tricor Investor & Issuing House Services Sdn Bhd, Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, tidak lewat dari 48 jam sebelum waktu yang ditetapkan bagi mengadakan mesyuarat tersebut atau sebarang penundaannya.

8. Bagi tujuan untuk menentukan ahli yang layak untuk hadir dan mengundi di Mesyuarat, Syarikat perlu memohon Bursa Malaysia Depository Sdn Bhd untuk mengemukakan kepada Syarikat Rekod Pendeposit pada 24 Mei 2016 dan hanya pendeposit yang namanya tertera di atas Rekod Pendeposit tersebut layak untuk menghadiri mesyurat.

NotaPenjelasanUntukUrusanKhas:

Perkara1padaAgenda

Perkara ini hanyalah untuk perbincangan sahaja. Peruntukan pada Seksyen 169, Akta Syarikat 1965 menghendaki bahawa Penyata Kewangan yang telah diaudit berserta Laporan para Pengarah dan Juruaudit mengenainya dibentangkan kepada Syarikat dalam Mesyuarat Agung Tahunan. Oleh itu, perkara pada Agenda ini bukan urusan yang memerlukan usul untuk diundi oleh pemegang saham.

Perkara4padaAgenda–ResolusiBiasa4Yuran Pengarah

Resolusi Biasa 4 yang dicadangkan di bawah perkara 4 adalah sejajar dengan Artikel 110 Tataurusan Pertubuhan Syarikat, jika diluluskan, akan memberi kuasa untuk pembayaran yuran pengarah kepada Pengarah-Pengarah Syarikat atas perkhidmatan mereka sebagai pengarah dalam tahun kewangan yang berakhir 31 Disember 2015.

Perkara5padaAgenda–ResolusiBiasa5KuasauntukmemperuntukandanmenerbitkansahammenurutSeksyen1322DAktaSyarikat,1965

Resolusi Biasa 5 yang dicadangkan di bawah perkara 5 adalah pembaharuan bagi Seksyen 132D mandat yang diluluskan oleh ahli Syarikat dalam Mesyuarat Agung Tahunan tahun lepas, jika diluluskan, akan memberi kuasa kepada para Pengarah untuk menerbitkan saham dalam Syarikat sehingga satu jumlah yang tidak melebihi 10 peratus (10%) daripada modal terbitan Syarikat bagi mengelak sebarang penangguhan dan kos pembiayaan dalam menjalankan mesyuarat agung untuk meluluskan penerbitan saham-saham berkenaan. Kuasa ini, kecuali dibatalkan atau dipinda pada mesyuarat agung, akan tamat tempohnya pada penggulungan Mesyuarat Agung Tahunan Syarikat yang berikutnya. Para Pengarah tidak memperuntukan saham atau menerbitkan saham dibawah mandat yang diperolehi pada tahun lepas. Sekiranya mandat dilaksanakan, para Pengarah akan menggunakan perolehan yang dijana untuk kemungkinan perlaksanaan peningkatan dana termasuk tetapi tidak terhad kepada peruntukan tambahan saham bagi tujuan untuk membiayai projek pelaburan semasa dan/atau hadapan, modal kerja dan/atau pengambilalihan.

Perkara6padaAgenda–ResolusiKhas1CadanganPindaanKeAtasTataurusanPertubuhanSyarikat

Pindaan yang dicadangkan ke atas Tataurusan Pertubuhan Syarikat adalah untuk menjadikan Tataurusan Pertubuhan Syarikat sejajar dengan pindaan kepada Keperluan Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad dan untuk meningkatkan kecekapan pentadbiran.

Notis Mesyuarat Agung Tahunan (sambungan)


Penyata Mengiringi Notis Mesyuarat Agung Tahunan

Tiada individu yang menawarkan diri untuk dipilih pada Mesyuarat Agung Tahunan.

[This Page has inTenTionally Been lefT Blank]

Nama Proksi No K.P. Jumlah saham yang diwakili oleh proksi %

1.

2.

BORANG PROKSI

Saya/Kami

No. Syarikat /No. K.P. (Baru) (Lama)

beralamat di

adalah ahli GOLDEN PHAROS BERHAD dengan ini melantik

No. K.P. (Baru) (Lama) atau sebagai penggantinya

No. K.P. (Baru) (Lama)

beralamat di

atau sebagai penggantinya Pengerusi mesyuarat sebagai proksi saya/kami untuk pengundian saya/kami dan bagi pihak saya/kami di Mesyuarat Agung Tahunan Syarikat Ke Dua Puluh Sembilan, yang akan diadakan di Gamelan 3, Primula Beach Hotel, Jalan Persinggahan, 20400 Kuala Terengganu, Terengganu Darul Iman pada Isnin, 30 Mei 2016 jam 10:30 pagi dan pada sebarang penangguhannya.

( Nama Penuh Pada K.P)

( Alamat Penuh)

( Alamat Penuh)

Nota-Nota:1. Seorang ahli berhak menghadiri dan mengundi dalam mesyuarat ini berhak melantik tidak lebih dari dua (2) proksi atau sekiranya pelantik adalah sebuah perbadanan, berhak

melantik seorang wakil untuk menghadiri dan mengundi bagi pihak dirinya.2. Seorang proksi tidak semestinya seorang ahli Syarikat dan peruntukan Seksyen 149(1)(b) Akta Syarikat 1965, tidak akan dikenakan ke atas Syarikat.3. Di mana ahli Syarikat adalah nomini yang dibenarkan sebagaimana definasi di bawah Akta Industri Sekuriti (Central Depositories), 1991, beliau boleh melantik tidak lebih

dari dua (2) proksi bagi setiap akaun sekuriti yang dipegangnya dengan saham biasa Syarikat berada dalam kedudukan kredit dalam akaun sekuriti tersebut. Di mana ahli Syarikat adalah nomini berkecuali yang dibenarkan di mana memegang saham biasa Syarikat untuk beberapa pemunya di dalam satu (1) akaun sekuriti (“akaun omnibus”), tiada had kepada bilangan proksi yang akan dilantik oleh nomini berkecuali yang dibenarkan ke atas setiap akaun omnibus yang dipegangnya. Di mana nomini yang dibenarkan melantik dua (2) proksi atau di mana nomini berkecuali yang dibenarkan melantik dua (2) atau lebih proksi untuk hadir mesyuarat yang sama, nomini yang dibenarkan atau nomini berkecuali yang dibenarkan perlu menyatakan kadar pegangan sahamnya yang diwakili oleh setiap proksi.

4. Dalam setiap notis memanggil mesyuarat Syarikat akan tertera satu pernyataan bahawa ahli yang layak untuk hadir dan mengundi berhak untuk melantik tidak lebih dari dua (2) orang proksi untuk hadir dan mengundi bagi pihak dirinya. Jika ahli melantik dua (2) proksi untuk hadir mesyuarat yang sama, maka ahli perlu menyatakan kadar pegangan sahamnya yang diwakili oleh setiap proksi. Proksi yang dilantik untuk hadir dan mengundi di mesyuarat Syarikat akan mempunyai hak yang sama sebagai ahli untuk bercakap di mesyuarat.

5. Surat perlantikan proksi hendaklah ditandatangani oleh pelantik atau wakil kuasa yang dilantik secara bertulis atau sekiranya pelantik adalah sebuah perbadanan, sama ada disempurnakan dengan cop mohornya atau disempurnakan oleh wakil kuasa atau pegawai yang dilantik di bawah surat wakil kuasa.

6. Sebarang pembetulan ke atas surat perlantikan proksi hendaklah diparap.7. Surat perlantikan proksi mesti diserahkan ke Tricor Investor & Issuing House Services Sdn Bhd, Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar

South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, tidak lewat dari 48 jam sebelum waktu yang ditetapkan bagi mengadakan mesyuarat tersebut atau sebarang penundaannya.8. Bagi tujuan untuk menentukan ahli yang layak untuk hadir dan mengundi di Mesyuarat, Syarikat perlu memohon Bursa Malaysia Depository Sdn Bhd untuk mengemukakan

kepada Syarikat Rekod Pendeposit pada 24 Mei 2016 dan hanya pendeposit yang namanya tertera di atas Rekod Pendeposit tersebut layak untuk menghadiri mesyurat.

GOLDEN PHAROS BERHAD (152205-W)(Diperbadankan di Malaysia)

(Di mana dua (2) proksi dilantik, sila nyatakan jumlah peratusan saham yang diwakili oleh setiap proksi)Proksi saya/kami akan mengundi dengan memangkah “X” seperti di bawah:Jika tiada arahan khusus tentang pengundian diberikan, proksi akan mengundi atau tidak mengundi atas budi bicaranya.

Bertarikh ________ haribulan ___________________ 2016

*Berkaitan dengan saham dibawah akaun calon sahaja

___________________________________Tandatangan Pemegang Saham/ Meterai

RESOLUSI BIASA SETUJU TIDAK SETUJU

1. Untuk melantik semula YBhg Dato’ Sri Abdul Rahman Bin Bakar sebagai Pengarah Syarikat.

2. Untuk melantik semula YB Dato’ Sabri Bin Mohd Noor sebagai Pengarah Syarikat.

3. Untuk melantik semula Tetuan Ernst & Young sebagai Juruaudit Syarikat dan memberi kuasa kepada para Pengarah untuk menetapkan bayaran mereka.

4. Yuran Pengarah.

5. Untuk memberi kuasa kepada para Pengarah menerbitkan saham menurut Seksyen 132D Akta Syarikat, 1965.

RESOLUSI KHAS

1. Cadangan Pindaan ke atas Tataurusan Pertubuhan Syarikat.

Bilangan saham yang dipegang

*CDS Akaun No.

SETEM

Golden Pharos BerhadUnit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3,Bangsar South, No. 8, Jalan Kerinchi,59200 Kuala Lumpur

LIPAT DI SINI

LIPAT DI SINI

Company DirectoryDirektoriSyarikat

HeadOfficeIbu Pejabat

Golden Pharos Berhad66-2, Taman Seri Intan,

Jalan Sultan Omar,20300 Kuala Terengganu,Terengganu Darul Iman,

Malaysia Tel : (609) 630 1330 Fax : (609) 631 0617

SubsidiariesSyarikat-syarikatSubsidiari

Kumpulan Pengurusan Kayu-Kayan Trengganu Sdn Bhd

(56141-K)Jalan Kalsium Bandar Bukit Besi,

23200 Dungun,Terengganu Darul Iman,

MalaysiaTel : (609) 833 7245Fax : (609) 833 7023

Golden Pharos Glass Sdn Bhd (265409-W)

Lot 7, Jalan Perak, Kawasan Perusahaan,42500 Teluk Panglima Garang,

Kuala Langat,Selangor Darul Ehsan,

MalaysiaTel : (603) 3122 6115Fax : (603) 3122 6117

Golden Pharos Doors Sdn Bhd (223569-A)

66-2, Taman Seri Intan, Jalan Sultan Omar,20300 Kuala Terengganu,Terengganu Darul Iman,

MalaysiaTel : (609) 630 1330Fax : (609) 631 0617

Pesama Timber Corporation Sdn Bhd (16330-U)

Kawasan Perindustrian Jakar,24000 Kemaman,

Terengganu Darul Iman,Malaysia

Tel : (609) 859 1122Fax : (609) 859 4544

PesakaTrengganuBerhad(6267-H)

Kilang Papan Pesaka,Bandar Bukit Besi,23200 Dungun,

Terengganu Darul Iman,Malaysia

Tel : (609) 833 7232Fax : (609) 833 7231

PermintPlywoodSdnBhd(70007-K)

Kawasan PerindustrianBandar Al-Muktafi Billah Shah,

23400 Dungun,Terengganu Darul Iman,

MalaysiaTel : (609) 630 1330Fax : (609) 631 0617

GOLDEN PHAROS BERHAD(152205-W)

66-2, Taman Seri IntanJalan Sultan Omar

20300 Kuala TerengganuTerengganu Darul Iman, Malaysia

Tel : (+609) 630 1330Fax : (+609) 631 0617

www.goldenpharos.com

2015 - malaysiastock.biz may - tempered glass plant set up at telok panglima garang industrial site,...

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