IJM PLANTATIONS BERHAD Statement and Report on Corporate ... • Carried out ongoing skill and...

INTRODUCTIONSustainability will always be integral to the Group’s

business endeavours. This is reflected in our

continued commitment to deliver shared value for

our stakeholders through sustainable and responsible

stewardship in all aspects of our business. The Group’s

corporate responsibility (“CR”) blueprint of “Nurturing

Sustainability” focuses on four pillars for continuous

improvement in implementing best practices in

accordance with Bursa Malaysia’s CR framework.

These are categorised under Productivity and

Innovations, Care for Environment, Investor in People

and Returning to Community. These pillars mirror

the Bursa Malaysia’s CR framework that emphasis

on the Marketplace, Environment, Workplace and

Community. The Group’s CR framework is our mantra

or way of life as it continues to be immersed in

our business model and daily operations towards

producing palm oil products in a more responsible and

sustainable manner. By ingraining these intertwined

imperatives and a host of CR initiatives within our

people and business dealings, the Group is confident

of becoming an exemplary corporate player among

responsible oil palm plantation companies whilst

continuously exercising improvement initiatives.

As the Group rolls out existing CR initiatives while

introducing new ones, we are affirmed that our efforts

will bring forth tangible outcomes that will deliver

positive socio-environmental footprints and create

shared value for our relevant stakeholders.

Statement and Report on Corporate Responsibility and Sustainability

PRODUCTIVITY & INNOVATIONS

CARE FOR ENVIRONMENT

INVESTOR IN PEOPLE

RETURNING TO COMMUNITY

THE GROUP’S PILLARS OF SUSTAINABILITY

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• Businesssustainability

• Operationalbestmanagementpractices

• Sustainabilitycertification• Ethicalcodeofconduct• Procurementandstandardsforsuppliers• Facilitationpayments• Consumerawareness• Fairtrade• Internalcustomerservice• Drivinginnovations• Businessriskmanagement• CorporateGovernance• Stakeholderengagements

• Achievedcontinuityinbusinessprofitabilityagainstthebackdropofhighoilyieldof5.4mt/hainMalaysiaamidstchallengingcommoditybusinessrealities.

• ResearchimperativescarriedoutbytheGroup’sQuality,TrainingandResearchCentre(QTRC).ReviewoftheGroup’sstandardoperatingprocedurescoveringvariousaspectsofoperations.Collaborationswithexternalparties.

• QualityandsustainabilitycertificationsrangingfromHACCP,CoP,MSPOandISCC.• CodeofEthicsandCorporateGovernancerolledout.• Effectivetenderingprocedures.• Finance,administrativeandcontract(FAC)proceduresareinplace.• SupportingpromotionaleffortsbyMPOCandcontinuedwithmyriadofstakeholderengagementinitiatives.• Policiesinplace:CodeofEthicsandCorporateGovernance.• Continuedengagementsbetweenestates,millsandserviceproviderstoenhanceinternalcustomersatisfaction.• Enhancingcustomerservicewithexternalbuyersofpalmproducts.Meetingpalmproductqualityspecificationsandcustomerneeds.• Promotinginnovationsthroughoutoperationseg.focusedonmechanisationinestates.• Riskmanagementandinternalcontrolsareinplacewithregularreviews.• TheGroupwaspresentedwiththeMSWG’sTopPLC(Mid-cap)forCorporateGovernance2014.• Hostedatotalof28stakeholderengagementinreportingyear.

StatementandReportonMarketplace

StatementonCorporateGovernance

StatementonRiskManagementandInternalControl

ENVIRONMENT• Operationalenvironmentalfriendlypractices• Conservationofhighconservationvalueareas• Landclearingpolicy• FloraBiodiversity• FaunaBiodiversity

• Wastemanagement• 3Rs:Reduce,Reuse&Recycle• PollutionsControlandPrevention• Energyandclimatechange• Resourcestewardship• Wastemanagement• ‘Green’marketing• Environmentalmanagement• Operationaleco-efficiency

• Continuedresourcestewardshipandoperationalpracticesthatdeliverpositiveenvironmentalfootprints.• Maintainingandenhancingconservationsitessuchas“HundredAcreWood”,riparianreservesandfloodproneareas.• Zero-burninginallnewandreplantings.• Ongoingtreeplantingandrehabitationonriparianreserves.6,514treesaplingsplantedinRJSestate.• Promotingavianbiodiversityawarenessthrough2014BorneoBirdFestival.CrocodilerelocationwithSabahWildlifeDepartment.Continuedwithintegratedpestmanagement.

• Bestmanagementpracticesforwastemanagementinestatesandmills.• Quarterly‘GreeningSaturdays’inHQcollected900kgofwastefor3Rs.• Bestpracticesforspillsprevention,effluenttreatmentandzerodischargepractices.• Biogascaptureinpalmoilmill,biomassutilisationforpowergenerationandGHGmonitoring.• Continuedimplementationofrainharvesting,drip-irrigatednurseries,landirrigationwithtreatedeffluentandsoilerosioncontrol.• Bestmanagementpracticesinplaceforwastemanagementinestatesandmills,practicesinaccordancetolegalrequirements.• Sustainability-relatedcertificationrangingfromCoP,MSPOandISCCwithenvironmentalconsiderations.• Implementationofenvironmentalmanagementplansinoperatingunitsspearheadedbyin-housesustainabilityteam.• IntegratedpestmanagementandotheroperationalenvironmentalfriendlyBMPs.

StatementandReportonEnvironment&ResourceStewardship

WORKPLACE• Employeesengagement

• Respecthumanrights• Occupationalsafetyandhealth

• Provisionofhousingandamenities

• Workinghoursandminimumwage• Educationforguestworkerschildren• Diversityandinclusion• Payforperformance• Employeescompetency

• Competencytrainingsandretrainings• Talentattraction,retentionanddevelopment

• Carriedoutanemployeesengagementsurvey.Resultsshowedhighemployeeengagementscoreof91%(from82%in2011).ContinuedwithJCCsinoperatingunits.

• Policyinplace:HumanRightsPolicy.• Policyinplace:StatementonEnvironmental,SafetyandHealth,OSHAMonthcampaign,OSHawarenessandongoingtrainings,medicalsurveillanceandclinicsfacilitiesinplantations.

• Continuedtoinvestinqualityhousingandamenitiesforthebenefitoftheplantationcommunityincludingutilitiessuchastreatedwaterandelectricity.

• Policyinplace:HumanRightsPolicy.• Managing3Humana-IJMPlearningcentresinvolvingsome271children.• EmbeddedintheGroup’score-values(I-PETRIC-Q)andDiversity&InclusionPolicy.• Payforperformancewithlongtermincentiveplan(ESOS&ESGP)againsttheGroup’sprincipleof“shareddestiny”.• Carriedoutongoingskillandcompetencytrainingsthroughtrainingneedanalysis.PartnershipwithOUMinprovidingtertiarylearningopportunityinSugutRegion.

• Atotalof342differenttypesoftrainingswereorganisedcoveringthetrainingneedsofalllevelsofemployees.• ManagingintergenerationalshiftandempoweringGen-Ytoleadinoperationalunits.

StatementandReportonWorkplace

StatementandReportonMarkeplace

COMMUNITY• Stakeholderengagement• Localcommunities• SocialEquality• Communityhealthandsafety• Sportexcellenceforyouth• Focusonbreasthealthawareness

• Empoweringwomen• Education• Basichealthimperative• Collaborationwithlocaltertiaryinstitutions• Volunteerism

• HostedvariousstakeholderengagementincludingWalkwithCEOprogramme.• Extendedassistancetothesurroundingkampongcommunitiesinconstructingcommunityhall,roadsandbridges.• Policyinplace:HumanRightsPolicy.• CarriedouthealthoutreachandconservationawarenessinschoolsandruralvillagesinSugut/Paitan.• Focusedonyouthsportdevelopmentthroughrugbypartnershipinvolvingover80schoolsand2,500studentsinreportingyear.• CollaboratedwithNGOandemphasisongrass-rootbreasthealthawareness(BHA)targetingschools.Totalof150studentsparticipatedinBHAactivitiesorganised.

• Promotinggenderdiversitywithfemalegraduatesofferedinternshipandjobopportunitiesinplantation.• OfferedIJMscholarshipstodeservingstudentsforlocaltertiaryeducation.• Providingbasicmedicalandhealthassistancetoruralcommunities.• Provisionofattchmenttrainingsandinternshipsforstudentswithcareeropportunities.• Promotedvolunteerismamongemployeesinvariousinitiativesincludingblooddonationsandotheroutreachprojects.Totalof243pintsdonatedinreportingyearfrom11blooddonationcampaigns.

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PRODUCTIVITY & INNOVATIONS

CARE FOR ENVIRONMENT

INVESTOR IN PEOPLE

RETURNING TO COMMUNITY

IN LINE WITH BURSA MALAYSIA’S CORPORATE RESPONSIBILITY & SUSTAINABILITY FOCUS AREAS FOR THE PLANTATION SECTOR

THE GROUP’S CORREPONDING STATEMENTS AND REPORTS

THE GROUP’S CORPORATE RESPONSIBILITY INITIATIVES AND ACTIVITIES CARRIED OUT IN THE REPORTING YEAR

MARKETPLACE• Businesssustainability

• Operationalbestmanagementpractices

• Sustainabilitycertification• Ethicalcodeofconduct• Procurementandstandardsforsuppliers• Facilitationpayments• Consumerawareness• Fairtrade• Internalcustomerservice• Drivinginnovations• Businessriskmanagement• CorporateGovernance• Stakeholderengagements

• Achievedcontinuityinbusinessprofitabilityagainstthebackdropofhighoilyieldof5.4mt/hainMalaysiaamidstchallengingcommoditybusinessrealities.

• ResearchimperativescarriedoutbytheGroup’sQuality,TrainingandResearchCentre(QTRC).ReviewoftheGroup’sstandardoperatingprocedurescoveringvariousaspectsofoperations.Collaborationswithexternalparties.

• QualityandsustainabilitycertificationsrangingfromHACCP,CoP,MSPOandISCC.• CodeofEthicsandCorporateGovernancerolledout.• Effectivetenderingprocedures.• Finance,administrativeandcontract(FAC)proceduresareinplace.• SupportingpromotionaleffortsbyMPOCandcontinuedwithmyriadofstakeholderengagementinitiatives.• Policiesinplace:CodeofEthicsandCorporateGovernance.• Continuedengagementsbetweenestates,millsandserviceproviderstoenhanceinternalcustomersatisfaction.• Enhancingcustomerservicewithexternalbuyersofpalmproducts.Meetingpalmproductqualityspecificationsandcustomerneeds.• Promotinginnovationsthroughoutoperationseg.focusedonmechanisationinestates.• Riskmanagementandinternalcontrolsareinplacewithregularreviews.• TheGroupwaspresentedwiththeMSWG’sTopPLC(Mid-cap)forCorporateGovernance2014.• Hostedatotalof28stakeholderengagementinreportingyear.

StatementandReportonMarketplace

StatementonCorporateGovernance

StatementonRiskManagementandInternalControl

ENVIRONMENT• Operationalenvironmentalfriendlypractices• Conservationofhighconservationvalueareas• Landclearingpolicy• FloraBiodiversity• FaunaBiodiversity

• Wastemanagement• 3Rs:Reduce,Reuse&Recycle• PollutionsControlandPrevention• Energyandclimatechange• Resourcestewardship• Wastemanagement• ‘Green’marketing• Environmentalmanagement• Operationaleco-efficiency

• Continuedresourcestewardshipandoperationalpracticesthatdeliverpositiveenvironmentalfootprints.• Maintainingandenhancingconservationsitessuchas“HundredAcreWood”,riparianreservesandfloodproneareas.• Zero-burninginallnewandreplantings.• Ongoingtreeplantingandrehabitationonriparianreserves.6,514treesaplingsplantedinRJSestate.• Promotingavianbiodiversityawarenessthrough2014BorneoBirdFestival.CrocodilerelocationwithSabahWildlifeDepartment.Continuedwithintegratedpestmanagement.

• Bestmanagementpracticesforwastemanagementinestatesandmills.• Quarterly‘GreeningSaturdays’inHQcollected900kgofwastefor3Rs.• Bestpracticesforspillsprevention,effluenttreatmentandzerodischargepractices.• Biogascaptureinpalmoilmill,biomassutilisationforpowergenerationandGHGmonitoring.• Continuedimplementationofrainharvesting,drip-irrigatednurseries,landirrigationwithtreatedeffluentandsoilerosioncontrol.• Bestmanagementpracticesinplaceforwastemanagementinestatesandmills,practicesinaccordancetolegalrequirements.• Sustainability-relatedcertificationrangingfromCoP,MSPOandISCCwithenvironmentalconsiderations.• Implementationofenvironmentalmanagementplansinoperatingunitsspearheadedbyin-housesustainabilityteam.• IntegratedpestmanagementandotheroperationalenvironmentalfriendlyBMPs.

StatementandReportonEnvironment&ResourceStewardship

WORKPLACE• Employeesengagement

• Respecthumanrights• Occupationalsafetyandhealth

• Provisionofhousingandamenities

• Workinghoursandminimumwage• Educationforguestworkerschildren• Diversityandinclusion• Payforperformance• Employeescompetency

• Competencytrainingsandretrainings• Talentattraction,retentionanddevelopment

• Carriedoutanemployeesengagementsurvey.Resultsshowedhighemployeeengagementscoreof91%(from82%in2011).ContinuedwithJCCsinoperatingunits.

• Policyinplace:HumanRightsPolicy.• Policyinplace:StatementonEnvironmental,SafetyandHealth,OSHAMonthcampaign,OSHawarenessandongoingtrainings,medicalsurveillanceandclinicsfacilitiesinplantations.

• Continuedtoinvestinqualityhousingandamenitiesforthebenefitoftheplantationcommunityincludingutilitiessuchastreatedwaterandelectricity.

• Policyinplace:HumanRightsPolicy.• Managing3Humana-IJMPlearningcentresinvolvingsome271children.• EmbeddedintheGroup’score-values(I-PETRIC-Q)andDiversity&InclusionPolicy.• Payforperformancewithlongtermincentiveplan(ESOS&ESGP)againsttheGroup’sprincipleof“shareddestiny”.• Carriedoutongoingskillandcompetencytrainingsthroughtrainingneedanalysis.PartnershipwithOUMinprovidingtertiarylearningopportunityinSugutRegion.

• Atotalof342differenttypesoftrainingswereorganisedcoveringthetrainingneedsofalllevelsofemployees.• ManagingintergenerationalshiftandempoweringGen-Ytoleadinoperationalunits.

StatementandReportonWorkplace

StatementandReportonMarkeplace

COMMUNITY• Stakeholderengagement• Localcommunities• SocialEquality• Communityhealthandsafety• Sportexcellenceforyouth• Focusonbreasthealthawareness

• Empoweringwomen• Education• Basichealthimperative• Collaborationwithlocaltertiaryinstitutions• Volunteerism

• HostedvariousstakeholderengagementincludingWalkwithCEOprogramme.• Extendedassistancetothesurroundingkampongcommunitiesinconstructingcommunityhall,roadsandbridges.• Policyinplace:HumanRightsPolicy.• CarriedouthealthoutreachandconservationawarenessinschoolsandruralvillagesinSugut/Paitan.• Focusedonyouthsportdevelopmentthroughrugbypartnershipinvolvingover80schoolsand2,500studentsinreportingyear.• CollaboratedwithNGOandemphasisongrass-rootbreasthealthawareness(BHA)targetingschools.Totalof150studentsparticipatedinBHAactivitiesorganised.

• Promotinggenderdiversitywithfemalegraduatesofferedinternshipandjobopportunitiesinplantation.• OfferedIJMscholarshipstodeservingstudentsforlocaltertiaryeducation.• Providingbasicmedicalandhealthassistancetoruralcommunities.• Provisionofattchmenttrainingsandinternshipsforstudentswithcareeropportunities.• Promotedvolunteerismamongemployeesinvariousinitiativesincludingblooddonationsandotheroutreachprojects.Totalof243pintsdonatedinreportingyearfrom11blooddonationcampaigns.

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2015SUMMARY OF SOME CR RELATED ACTIVITIES CARRIED OUT IN REPORTING YEAR

Statement and Report on Corporate Responsibility and Sustainability(cont’d)

342

11

Total number of trainings organised

Total school students attended breast health awareness

Total number of blood donation campaigns

Total children of guest workers studying in

IJM education centres

Total number of stakeholder engagement activities

Total quantity of waste recycled at head office in Sandakan

Total number of forest saplings planted

Total pints of blood donated

243

80 2,500

150

28 6,514 900kg

271

Total schools involved in rugby sport excellence

Total number of students involved in rugby sport excellence

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STATEMENT AND REPORT ON MARKETPLACE

STATEMENT ON MARKETPLACE

The Group’s sustainability pillar covering the Marketplace encompasses ‘Productivity and Innovations’.

This focuses on our continued dedication to operate professionally and with integrity in our business

endeavours to deliver value for the shareholders. Our people are guided by our core values and work

culture which are assimilated into our daily works and other activities. The Group is committed to

adhere to all relevant and legal requirements, support fair and ethical business practices and put in

place best industry standards and practices. Effective control and monitoring systems such as risk

management, budgetary system, tendering procedures, finance and administrative procedures as well

as regular meetings and reviews are in place to ensure long term economic viability. We also continue

to participate and pursue quality and sustainability certifications in our operations and actively engage

with relevant stakeholders in constructive dialogues and collaborations.

MEOA members visiting the Hundred-Acre Wood

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EFFECTIVE INVESTOR RELATIONS

The Group believes in providing accurate information in a timely manner to the shareholders, potential investors, investing community and members of the public. As such, the role of investor relations is central in providing an effective two-way communication channel between the Group and the stakeholders. The Group’s Annual General Meeting remains as an important platform for open dialogue with shareholders. Apart from this, quarterly announcements to Bursa Malaysia, annual report and analyst briefings are also carried out. In addition, the Group also continues to maintain a corporate website to better serve the shareholders. In the reporting year, the Group was nominated to be among the top 10 in the Malaysian Investor Relations Association (MIRA) Awards for the categories under the Best Company, Best CEO, Best CFO and Best IR Website under the Malaysian Mid-cap PLCs. For additional details, refer to Statement on Corporate Governance in page 51.

STAKEHOLDER ENGAGEMENT

The Group recognises the importance of addressing sustainability issues relating to the production of palm oil products vis-à-vis other edible oils on a level playing field in the agriculture sector. The Group is affirmed that through proactive engagements with relevant stakeholders, an exchange of different views can be promoted. The Group also continues to proactively engage with the local surrounding communities. Key infrastructure for accessibility such as roads and bridges in and around the villages in the Meliau and Sugut Region have been regularly maintained and up kept by the Group. Annual meetings were also held to enhance two-way communication between the local communities and smallholders and the operating units.

Over the years, the Group has taken initiatives to host many stakeholders visiting the operations in order to share the Group’s palm oil supply-chain and socio-environmental footprints. Some of these engagements have evolved into constructive partnerships such as the Group’s ongoing collaboration with Borneo Child Aid, a social non government organisation (“NGO”) focused on education for the guest workers’ children. Many participants involved in our stakeholder engagements, including the annual “Walk with CEO” programme have been enthralled by their visit, stay and sharing of information and views. In the reporting year, the participating stakeholders included members from the Malaysian Estate Owners’ Association (MEOA), nature enthusiasts, journalists, analysts, academicians and visitors from the Peoples’ Government from China. The Group also collaborated with the Malaysian Palm Oil Council (MPOC) in a programme hosted by Nigel Marven, a renowned British wildlife TV presenter and a nature enthusiast who paired with a local chef, Anis Nabilah to produce a TV cooking show, “Eating Wild” which was featured on the Asian Food Channel.

Stakeholders Visiting the Group’s Operations in the Reporting Year

Foreign Visitors

6%

Local Communities

20%

Investors or Fund Analyst

4%

Industry Fraternity

16%

Customers

7%

Government & Regulators

18%

NGOs

16%

Academic Agency

13%

ANNUAL REPORT ON MARKETPLACE


Montfort school boys visit

to operations in Sandakan

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Mechanisation in crop evacuation

DRIVING INNOVATIONS

The Group is committed to leverage its best management practices and drive for innovations along its supply chain from the production of planting materials to palm oil milling processes. Manuals and other standard operating procedures are regularly reviewed to incorporate any revisions and new practices. In order to achieve higher productivity and address an increasing tight labour environment, the Group has put greater efforts into implementing effective and site-specific mechanisation. Although there are various machines already available in the market, the selected machines for use were tested at various sites including their adaptability and change management involving the people on the ground. In the process, time-motion-costs were studied and the modus operandi were fine-tuned. The Group continues to monitor closely and evaluate the performance of the motorised wheelbarrows for in-field crop evacuation. The net and crane system has been time-tested for implementation in the fields with suitable terrains. FFB collection bins with scissor lift systems which can be

used as mobile ramps are now more widely used in areas remotely located from the palm oil mills. Larger areas of coverage have started to incorporate mechanisation especially in in-field crop evacuation. The implementation of mechanisation in the operations is expected to improve work efficiency and delivering quality crops in a cost effective manner. On the milling aspect, the Group’s palm oil mills continue to strive to improve product quality and minimise losses by exploring several innovative modifications in the mill process flow. In the reporting year, Desa Talisai Palm Oil Mill won the IJM Group’s Innovation Ace Award for the amalgamation of a double threshing system in its process flow. The Group continues its biotechnology collaboration with a Bionexus company, ACGT Sdn Bhd on high yielding oil palm screening and biomarker projects. The Group’s Quality, Training and Research Centre (QTRC) also continued working together with the International Plant Nutrition Institute (IPNI) in laying out joint trials on best management practices in the estate operations.

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CERTIFICATION JOURNEY

Sustainability certification schemes have grown in popularity over the last decade as one of the many mechanisms to promote and demonstrate sustainable and responsible production of commodities including palm oil products. The Group has adopted a phased approach in its journey towards achieving certification for sustainability appreciating that there must be adequate and effective capacity building on the subject matter with greater awareness and buy-in across our people. The Group has since embarked on its certification path beginning with trial audits using MPOB Code of Practices (“CoPs”) certification in year 2009. The CoPs focused on the industry’s best management practices for the palm oil supply chain. Since then, the Group’s entire oil palm operations in Malaysia have been fully certified under the CoPs. These CoPs cover the oil palm estates, palm oil mills, kernel crushing plant and also the oil palm nursery. In the reporting year, Desa Talisai Palm Oil Mill successfully achieved the Malaysian Sustainable Palm Oil (MSPO) certification, a national level certificate for sustainable palm oil production. Apart from that,

Audit in process

the Group’s operations in Indonesia have also embarked with the Indonesian Sustainable Palm Oil (ISPO) certification scheme and are currently undergoing the audit processes for all the operating units. Concurrently, palm oil products and processes are also certified under quality management system such as Good Manufacturing Practice (GMP), Good Agricultural Practice, and Hazard Analysis Critical Control Point (HACCP).

As the Group moves forward, we have embarked on the next phase of certification which has acceptance at the international level, starting with the International Sustainability and Carbon Certification (“ISCC”) scheme. In the reporting year, Desa Talisai Palm Oil Mill and its internal estate supply base in Sandakan were successfully ISCC certified. The Group will continue to emphasise on capacity building and lay the preparations for more of its units to be certified under the various sustainability certification schemes.


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STATEMENT AND REPORT ON ENVIRONMENT

STATEMENT ON ENVIRONMENT

The Group’s sustainability pillar relating to the environment involves our stewardship to ‘Care for

Environment’. It relates to specific and relevant best management practices and initiatives which

promote environmental protection, conservation, biodiversity enhancement and other practices

that strive to deliver positive environmental footprints. Effectiveness of sustainable resource

management relating to soil, water, air and waste is a vital component leading to the production of

sustainable palm products. The Group’s sustained commitment in the “Hundred-Acre Wood” project

depicts a centre of excellence geared towards our continued green endeavours. The Group values

it’s affirming engagement with relevant stakeholders and aspires that effective engagement will lead

to greater understanding on the subject of sustainability.

Water catchment in Minat Teguh estate

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LAND USE AND CONSERVATION STEWARDSHIP

The commitment towards the protection of the environment has been embedded in the Group’s business model. One of the adopted strategies to manage and minimise the impacts of our agricultural activities towards the environment is through the protection of high conservation value (“HCV”) areas such as the riparian reserves, marginal soils, steep areas and also water bodies. HCV assessments have been conducted internally for all plantations and by external expertise especially for our plantations in Indonesia. Management plans are developed for the HCV sites and appropriate buffer zones are conserved. The Group continues to provide awareness through training of our people on the protection of these important conservation sites and ensure that all our agricultural activities adhered to the industry’s best management practices. The operating units have identified and demarcated the riparian and forest buffer zones in accordance to the legal requirements. There are strictly no chemical applications and with minimal intervention at these sites it allow for natural re-vegetation. Some of our staff in Malaysia were trained by the Sabah Wildlife Department to manage biodiversity and have volunteered as wildlife wardens.

There are more than 6,146 acres or 8% of the Group’s total land bank in Sabah which has been set aside for conservation related purposes. The mature areas have been reduced to 78.8% (2014: 80.3%) whilst the immature areas were increased to 7.5% of the total land bank in Sabah due to the on-going replanting activities

in the Sandakan region. The Group’s in-situ tree rehabilitation project including the planting of suitable forest tree saplings are on-going at selected conservation sites. This includes the planting of bongkul (Neonauclea subdita), jelutong (Dyera costulata) and mahogany (Swietenia spp.) In the reporting year, Rakanan Jaya South Estate has planted 6,514 bongkul tree saplings over 8 hectares in one of its flood prone areas. Villagers from the surrounding community were employed for the project. The management is closely monitoring the rehabilitation progress and continues to identify additional areas to be rehabilitated. The Group’s conservation site coined as ‘Hundred-Acre Wood’ continues to serve as the centre of excellence for conservation, education, recreational and training for our people and visiting stakeholders. In the reporting year, a crocodile relocation initiative was carried out at Minat Teguh estate with the assistance of Wildlife Rescue Team from the Sabah Wildlife Department. The Group continued to promote avian biodiversity and fauna conservation awareness in partnership with a NGO, Borneo Bird Club at the 2014 Borneo Bird Festival targeting especially on the schoolchildren. In the reporting year, the Group also collaborated with MPOC focusing on the discussions pertaining to the sustainability of the Malaysian palm oil industry and with the Sabah Forestry department in an Environmental Education Forum.

Rehabilitation works with suitable forest tree saplings

ANNUAL REPORT ON ENVIRONMENT


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RESOURCE STEWARDSHIP

The Group is committed to utilise and protect our available resources in a responsible and sustainable manner. With constant changes in the weather pattern, the Group has adopted a comprehensive environmental management system to manage our resources in our supply chain. This system comprises best management practices, standard operating procedures, adherence to relevant policies and regulatory requirements and periodic monitoring and review of our performance.

SOIL MANAGEMENT

The Group adopts industry’s BMP in managing soils that help to reduce soil erosion. This include proper frond stacking, planting of legume cover crops, implementing no blanket spraying and adopting an agronomic-based fertiliser recommendation programme. Vertiver (Chrysopogon zizaniodes) grass was also planted at various slopes to reduce erosion. The Group’s fertiliser programme is recommended by an in-house qualified agronomist based on a thorough analysis of leaf nutrient contents, yield-gap profiling and field observations. Practices such as systematic frond stacking, application of empty fruit bunches, biocompost and dried decanter cakes have been implemented to improve soil fertility in selected estate blocks.

The Group continues to embrace and implement integrated pest management practices (IPM). It involves a combination of different pest management techniques including an effective pest census and surveillance system to maintain the pest population below the acceptable thresholds while minimising the pesticide usage. In the reporting year, a total of 1,841 predator bugs bred by the in-house insectariums were released in the fields. Planting of beneficial plants such as Antigonon leptopus, Turnera subulata and Cassia cobanensis are encouraged for the proliferation of natural predatory bugs. In the reporting year, the Group has planted more than 3,500 polybags of beneficial plant in the operating units. Pheromone traps were used to control Oryctes rhinoceros beetles. The Group has also initiated a preliminary project to pursue breeding barn owls in Sabah to help in the control of rats.

WATER CONSERVATION

Oil palms and the operations are water-dependent and as such the water resources available have to be well managed to ensure minimum wastages. In the nursery management, the Group continues to expand and utilise the drip irrigation technology at the main nursery stage. This irrigation system is a precision irrigation method which can minimise wastages arising from spillages and soil surface evaporation. Protection of riparian reserves is one of the vital elements in the protection of the water sources. The Group protects and rehabilitates riparian reserves in compliance with the “Garispanduan JPS Bil.1 Tahun 2000” as well as “Seksyen 40 – Enakmen Sumber Air Negeri Sabah 1998”. In order to ensure better water security, all operating units have at least one water reservoir that doubles up as a water reserve as part of the risk management during prolonged drought seasons. Besides, all houses in the plantations are equipped with water storage tanks to harvest rain water for domestic consumption. Water is being treated before being channeled for domestic consumption. The water quality is closely monitored for conformance to the World Health Organisation (WHO) drinking water standard. The Group is prudent in managing the palm oil mill effluent (POME) generated from the palm oil milling process. POME is being treated before being channeled to the selected fields approved by DOE for land irrigation. The Group continuously monitors the performance of the effluent treatment systems and reduces the Biological Oxygen Demand (BOD) level through the latest effluent treatment technology. A membrane technology for tertiary effluent treatment is being used at Desa Talisai Palm Oil Mill. In the reporting year, Sabang Palm Oil Mill-2 was given a certificate of recognition by Department of Environment (“DOE”) for its consistency to maintain the treated effluent quality at low ppm.

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AIR QUALITY MANAGEMENT

‘Zero-burning’ policy is strictly adhered by the operations, both at the housing area and all land clearing sites such as at the replanting programmes at Sandakan region. The zero-burning policy has been incorporated into land clearing contracts involving external contractors. The management is vigilant on any fire hazards in the operations. Watch-towers are in place and employees are constantly briefed to be on fire-alert especially during the drought season. The air pollutant level from the palm oil processing plants is closely monitored through the Continuous Emission Monitoring System (CEMS) which is directly linked to the DOE. In order to ensure dust levels are minimal especially at the housing areas, various speed humps have been constructed at strategic places.

WASTE AND BY-PRODUCTS MANAGEMENT

The Group ensures that all waste generated such as biomass waste, scheduled waste, domestic waste, sewage and palm oil milling by-products and effluents are handled with care and in accordance to regulatory requirements. Types of wastes which are classified as scheduled waste are securely stored, labelled, recorded and disposed in accordance to the Environmental Quality Act 1974 (Scheduled Waste) Regulations, 2005. Domestic waste generated from the housing quarters are collected on a routine basis and disposed at the designated landfill sites which were carefully selected based on site topography and soil suitability to avoid water source contamination. The Group practices zero by-products discharge policy in the processing plants where palm oil milling by-products such as empty fruit bunches (EFB) and treated POME are recycled back to the field for mulching and irrigation purposes. EFB and POME also used to produce biocompost. Other by-products such as mesocarp fibres and fruit shells are fully utilised as boiler fuel to generate power and steam to minimise the usage of non-renewable fossil fuel. The Group continues to promote recycling activity. Recycling bins are provided at strategic places to encourage employees to embrace 3Rs of Reduce, Reuse and Recycle. Since 2010, quarterly recycling campaigns at our Sandakan head office coined “Greening Saturday” have been organized. To date, a total of 5.7 metric tonnes of recyclable items have been sent for recycling purposes. The funds collected were used for welfare activities for our employees.

Recycling in the operating units

Notice on burning policy in operating units


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CLIMATE CHANGE AND ENERGY MANAGEMENT

The Group has been proactively managing the greenhouse gas emissions (“GHG”) through an integrated approach which incorporates industry’s best practices while exploring new innovations to maximise the use of renewable energy. The generated biomass through the palm oil milling process is fully utilised as fuel in the generation of electricity and steam. The use of both renewable and non-renewable energy are closely monitored on a monthly basis and recorded under the energy monitoring plan. The Group continues to monitor and manage GHG at all operating units in Sabah benchmarked against available baseline information. Our palm oil mill in Indonesia is installed with a biogas capture plant while our mills in Malaysia are carrying out feasibility studies to match the gas produced and their successful utilisation.

Oil palm trees are known to possess high rates of net primary productivity and biomass growth which contribute to carbon sequestration from the estates. We have been monitoring the quantity of carbon sequestered by our operations since year 2006 using the methodology developed by MPOB. The total carbon sequestrated in the reporting year has reached more than 800,000 metric tonnes or 3% higher compared to the previous year with an average of 33 metric tonnes per planted hectare in

the Malaysian operations. In our Indonesian operations, as the trees mature, a total of 447,803 metric tonnes of carbon were sequestered, a 48% increment from the previous year. The total carbon sequestered in both the Malaysian and Indonesian operations is tabulated and shown in the figure below.

Total Carbon Sequestered from the Malaysian and Indonesian Operations (FY 2006 to FY 2015)

1,000

800

600

400

200

FY20

12

FY20

11

FY20

13

FY20

14

FY20

15

FY20

09

FY20

10

FY20

08

FY20

07

FY20

06

Tota

l Car

bon

Seq

ues

tere

d (M

T)

MALAYSIAN OPERATIONS INDONESIAN OPERATIONS

0

Biogas capture plant

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STATEMENT AND REPORT ON WORKPLACE

STATEMENT ON WORKPLACE

People as an asset are the key success element in an organisation in achieving sustainable business

goals. The Group remains focused on developing our people as depicted in our continued initiatives

placed under the Group’s sustainability pillar of “Investor in People”. It is our journey which places

the importance on the human-side of plantation geared towards building a high performing team

that embraces the Group’s core values of I-PETRIC-Q and the principle of shared destiny. The Group

is committed to providing equal opportunities for personal and career development alongside with

the provision of decent working and living environment. The Group continues to improve the living

environment of its people through progressive upgrading and building of new and quality houses and

other ancillary amenities. The Group also placed great importance on the welfare of our people and

ensures that they are also equipped with the competency skills and knowledge through continuous

learning, provision of better facilities as well as promoting sport excellence and cultural heritage.

We also engrained in our organisation the importance of occupational safety and health. The Group

also encourages our people to adopt a healthy and holistic work-life balance. We endeavour to make

our employees’ time at work as pleasant as possible by assimilating our core values and fostering

team-work and 1-IJMP family spirit.

Sumazau dance during Harvest Festival

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EMPLOYEE ENGAGEMENT

The Group is guided by its corporate I-PETRIC-Q core values of Integrity, Passion, Efficiency, Teamwork, Respect for Diversity, Innovation, Customer Focus and Quality. In the reporting year, an employee engagement survey, IJM “MyVoice” was conducted as a channel to collect voices from employees through a series of questionnaires. The year 2014 survey has shown a higher level of employee engagement with the positive score of 91% with 97% of our employees proud of being a part of the IJM family. The survey has also shown that our employees have a strong sense of pride and high level of support on the Group’s values and direction. Besides, there was a significantly higher favourable score on overall satisfaction level (up by 26%) while the percentage of staff with intention to stay has also increased by 34% as compared to the previous survey carried out in the year 2011. The Group will continue to actively engage with our people to work together and make our organisation a better place to work.

Townhall meetings or previously known as Roundtable meetings with the CEO-MD are held twice in a year. The meetings are important direct two-way communication channels and between the staff, executives and the top management of the company. Townhall meetings also provide the opportunity for the CEO-MD to present the Group’s overall performance, issues and sharing of strategies to drive the organisation forward. Leaders from the respective departments were also invited to present the latest initiatives to all their colleagues. At the selected meetings, group activities were organised to collect feedbacks and other improvement recommendations.

Joint Consultative Committees (JCC) have been established for years to promote open and positive communication between the employees and management. It is a fitting platform for the representatives of the workers to discuss and resolve related issues on the workplace and living environment. It is also an opportune platform for management to connect to people from all levels and to ensure issues are resolved in an open and constructive manner.

SAFE WORKPLACE

Occupational safety, health as well as cleanliness are of utmost importance at all times for our people and to protect others who may be affected by our business activities. The Group is committed to provide a safe workplace for all employees and determined to move towards a ‘Zero-Accident’ working culture. ‘Safety First’ working culture is the key driver for the implementation of the ‘Zero-Accident’ aspiration. In order to achieve this target, we have organised 281 safety and health related training sections in the reporting year. Among the job-related competency training are working at heights, working in confined spaces and first aid which were carried out by the National Institute of Occupational Safety and Health (NIOSH) and Red Crescent Society respectively. Apart from this, safety training and briefings are repeatedly performed for the workers to ensure that they carry out their tasks safely. In addition, OSHA week was organised in the operating units where safety campaigns and awareness talks are held to promote the safety awareness among the people. One of the campaigns organised in the reporting year was that on “Road Safety”, where all road users particularly the motorcyclists were briefed on the dos and don’ts of responsible road users.

The Group has a safety performance monitoring mechanism where audits and reviews are done regularly to monitor the safety and health performance on the ground. We continue to organise safety and health steering committee meetings that were spearheaded by top management and all heads of operating units. Safety audit findings and any latest issues or regulatory requirements imposed are discussed and briefed in the meetings. The safety performance of all the operating units are translated into appropriate safety and health related key performance indicators and closely monitored. In the reporting year, the Group’s safety performance has improved tremendously with a much lower reported number of accidents and first aid cases. Each operating unit has also formed its emergency response team (ERT) and were trained to attend to various types of emergencies. Trainings and re-fresher trainings on emergency response plans, emergency rescue simulations and fire fighting were organised in all the operating units.

Brainstorming session

ANNUAL REPORT ON WORKPLACE

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Risk assessments have been carried out for all workplaces to identify potential hazards and preventive measures to minimise the risks. Employees who have exposure to hazards at the workplace are well equipped with appropriate personal protective equipment. One of the accident preventive measures is to ensure that relevant warning signages, safe working procedures and safety information are clearly posted at the workplace. All our workers and staff who have exposure to health risks are sent for medical surveillance and audiometry tests annually. Apart from that, our workers who are exposed to chemicals are also being monitored by clinic assistants on their primary vital signs on a monthly basis.

The Group also places importance on the hygiene conditions at the housing sites, where scheduled ‘gotong-royong’ cleaning activities are conducted on a regular basis and fogging is carried out whenever needed. The management will ensure that the cleanliness of the living environment is well maintained through periodic spot-checks and cleanliness audits at the housing sites. Apart from this, health talks that promote healthy lifestyles and awareness on contagious diseases were held regularly in the operating units. Landscaping with assorted plants at various sites is also promoted with competitions for best landscaped houses.

RESPECT FOR HUMAN RIGHTS

Respect for human rights, human dignity and equality is one of the core business philosophies. The Group treats everyone equally and without discrimination. We respect internationally recognised human rights policies and comply with relevant legal requirements and regulations. The Group has established and adopted a Human Rights Policy which is available in both English and Bahasa Melayu. In addition, a social manual has been established to provide guidelines and mechanism to handle social issues raised within the organisation and externally. The manual is aimed to ensure the social practices are consistent with the spirit and intent of the Human Rights Policy. The manual also stipulates the grievance procedures in handling any complaints and disputes happening internally and externally in an effective, transparent and timely manner. Apart from that, a whistle blowing channel is also available at our corporate portal.

Gender Distribution in Sabah Operations

Female

26%

Male

74%

Gender Distribution in Indonesian Operations

Female

24%

Male

76%

RESPECT FOR DIVERSITY

The Group’s is committed to provide equal opportunities to all levels of employees and is non-discriminatory on the race, age, ethnicity, color, nation of origin and gender. These are embedded in the Human Rights Policy and Diversity & Inclusion Policy. However, there are large differences between the ratio of men and women employed in the plantation business. These differences are driven by our type of industry where it is predominantly male dominant.


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The gender distribution for staff and executives in both Sabah and the Indonesian operations are very similar where about 24-26% are female employees while the other 74%-76% are male employees. We are progressively empowering women in various levels of management.

We also continue to foster mutual respect and the appreciation of cultural diversity within our organisation. The Group respects and appreciates the many ethnicities that make up the 1-IJMP family. Various cultural events and festivals are celebrated together. One of the highlights is the celebration of the Harvest Festival (Ka’amatan Festival) in Sabah.

The age groups for our staff and executives in the Malaysian and Indonesian operations are summarised in the chart below. Most of our people in Sabah are in the age group of 35-53 years, while in Indonesia it is between 21-34 years. The management levels fall under the age band of 54-65 years and they continue to lead and mentor the junior management as we manage the intergenerational shift involving the Gen-Y.

NURTURING AND REWARDING OUR PEOPLE

Our people are our greatest asset in the company. Our human resource strategies are focused on three key areas, which are the identification, developing and retention of talent. We value everyone’s contribution in the organisation and strive to ensure equal opportunities for all. All employees are trained and re-trained under a structured training plan and programme based on their training needs. From technical and job based training to soft skills training, 206 employees have undergone training in the reporting year to enhance their competency levels. In 2014, the Group also initiated a partnership with the Open University of Malaysia to provide weekend Diploma courses for our staff and those from our neighbouring estates in the Sugut Region, thus providing tertiary education opportunities in the plantation.

The Group’s talent management and leadership development programme are focused on nurturing potential leaders under the supervision of their respective mentors. Existing talented people in the organisation are identified, guided by their senior mentors and empowered to lead in critical positions or responsibilities within the organisation. Regular meetings with brainstorming sessions have provided the people the platform for sharing information, harnessed their presentation skills as well as fostered their leadership skills, instilled greater team spirit while improving cross-functional cooperation. The Group rewards performance – rewarding our people based on their key performance indicators. The Group embraces the principle of “shared destiny” and has rolled out a long term incentive plan involving an employees share option scheme and a grant plan with the objective to reward performers, retain and motivate our people as well as to remain competitive in the job market.

Age Groups

300

250

200

150

100

50

INDONESIAN OPERATIONS MALAYSIAN OPERATIONS

No.

of

Em

plo

yees

54 – 6535 – 5321 – 34

Age Group

60%

Gen-Y Gen-X Baby Bloomer

41%

36%

53%

4% 6%

0

“Safety First” at workplace

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SPORTS AND CULTURAL EXCELLENCE

The Group encourages our employees to participate actively in various sports that promote sportsmanship and esprit-de-corps. Regular sports events were organised in the operating units during Labour Day and Merdeka Day celebrations. Friendly matches were also organised among and between the operating units as well as with external parties.

More than 70% of our staff and executives in Sabah are from various ethnic groups that are native to Borneo. Each of the ethnic groups are unique and are proud of their respective rich traditions and customs. The Group encourages our people to practice and promote their own culture and traditions and one of the important festivals that is widely celebrated by all ethnic groups in Sabah is the Pesta Ka’amatan (Harvest Festival) held in the month of May every year. This festival is organised by the Sugut region annually since year 2011 showcasing cultural performances, traditional sports competition, exhibitions that showcase respective ethnic group’s traditions and customs such as the costumes, food, medicinal plants and musical instruments. The annual highlight is the Unduk Ngadau (Harvest Festival Queen) pageant contests where all “Sumandak” young ladies will showcase their talent in their traditional costumes on the stage. Employees are able to appreciate and understand each other’s customs and traditions and thus enhance the esprit de corps among the people. Through this festivity, employees are able to better appreciate and understand each other’s traditions and customs and at the same time these traditions can be preserved and passed down to the younger generation.

EDUCATING CHILDREN

The Group continues its collaboration with a social NGO, Borneo Child Aid (HUMANA) to provide basic education for the guest workers’ children in the plantations. The Group refurnished these learning centres with necessary amenities and provides transportation for the children who are staying far from the learning centres. Currently, there are three purpose-built learning centres in the Group which can cater for more than 500 children and one unit, the Continuous Learning Center (CLC) caters for children above 12 years old. Our employees’ children with outstanding results were also rewarded to recognise their academic achievements.

QUALITY HOUSING AND AMENITIES

The Group continues to build and invest in quality houses and make sure that the amenities such as crèches, kindergartens, learning centres, sports facilities, community halls and clinics are in the best conditions for our employees who stay in the plantations. A polyclinic that was equipped with an X-ray machine is located at one the estates in the Sugut region namely the Excellent Challenger-2. The polyclinic is able to provide X-ray services and diagnostic facilities for the workers’ annual medical check-ups. Other basic utilities such as treated water and electricity are provided free for the employees working in the operating units.

Humana learning centre for

children of guest workers


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Housing and Amenities in Operating Units

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STATEMENT AND REPORT ON COMMUNITY

STATEMENT ON COMMUNITY

“Returning to Community” is another important aspect in the Group’s CR and sustainability

framework that focuses on sharing the prosperity of the organisation with external targeted groups

in our community. The Group aims not just to create employment opportunities but also to ensure

that its progress creates and maximises the shared economic value in the surrounding community

through the generation of potential spin-offs and other multiplying effects to their livelihood and

local economy. Several key social initiatives continued to be carried out and were further enhanced

in the reporting year which includes the promotion of sports excellence among youth, empowering

women in health awareness, rural outreach and promotion of volunteerism.

Schoolgirls learning breast self examination

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backgrounds in the more remote districts of Sabah. Today students from nearly 80 primary and secondary schools are involved. The engagement of foreign professional rugby coaches from Fiji, Samoa and New Zealand has added luster and new insights into the development of the game in Sabah. In 2014, the Group continues to support the junior rugby tournament. The key event was the IJMP/MSSS/SRU Rugby 10s, a state-wide school event that was successful to attract the participation of nearly 30 teams of different age-groups throughout Sabah. We have also guided and provided job opportunities for ex-rugby players in our plantations.

Youth rugby sports development

YOUTH SPORTS EXCELLENCE

The Group has embraced sports excellence among the youths through rugby as one of the avenues of creating shared values to realise the objective of “Returning to the Community”. The Group is inspired that the nature of the game provides for an affirmative character building and instilling team spirit in youths. The Group is involved in a tripartite collaboration with the Sabah Education Department and Sabah Rugby Union (through the Eagles Rugby Club Sandakan) to sustain this outreach effort which started back in 2002. Through a comprehensive and holistic approach, the Group has been able to reach out to over 2,500 students, many of whom are from less privileged

ANNUAL REPORT ON COMMUNITY

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EMPOWERING WOMEN IN BREAST HEALTH

For nearly a decade, the Group has been active in promoting public breast health awareness initially collaborating with the local hospital and subsequently with a NGO, Sandakan-Kinabalu Pink Ribbon in Sabah. In conjunction with Mothers’ Day celebrations in May 2015, the Group co-sponsored the ‘Reach to Recovery’ programme in Sandakan with the objective that the participants can reach out to more breast cancer patients. The annual ‘Pink October’ breast health awareness campaign was launched throughout the Group where awareness talks and clinical breast examination were carried out by qualified nurses in the operating units. During the reporting year, a breast health awareness talk was also conducted at SMK Elopura 2 in Sandakan with the participation of about 150 Form Six students.

RURAL OUTREACH

The support for the surrounding communities with basic medical and health assistance in the interior areas of the Sugut-Paitan region has become a norm in the Group. In-house medical assistants and nurses were involved in the outreach programme. In case of emergency cases, the in-house ambulance services were made available for the Groups’ employees and surrounding communities. The Group has also extended assistance to the surrounding kampong communities in constructing community hall, roads and bridges. In the reporting year, the Group assisted few villages, namely Kampung Linayukan and Kampung Ansuan in road maintenance and the supply of free building materials to Kampung Binanjar Baharu in the building of a community hall.

NURTURING TALENT

The Group in Malaysia works closely with local tertiary and vocational educational organisations such as the Universiti Malaysia Sabah, Sabah Skills Training Centre and Agricultural Vocational Training Centre – Lahad Datu. 31 youths were posted to various operating units for their internship programme. The Group has also participated in local job placement programmes organised by Government agencies to encourage local talent to pursue a career in the oil palm agribusiness sector. In our Indonesian operations, intensive cadetship training is on-going involving aspiring youths as estate and mill cadets. In promoting gender equality and empowering women in the plantation sector, female graduates were also offered internships, job opportunities and were successfully posted in our operations.

PROMOTING VOLUNTEERISM

The Group continues to provide opportunities and encourages its employees to actively participate in sports and other social volunteering outreach initiatives to realise that their efforts can create positive impacts in society. In the reporting year, several of the Group’s employees have been selected to represent the state and national rugby teams. During the annual ‘IJM Give Day Out’ in 2014, volunteers from the Group spent their weekend with hospitalised children at the local hospital; while others carried out ‘gotong-royong’ at the Sabah Society for the Deaf centre, Sandakan Cheshire Home and also an old folks home. The Group donated and sponsored in kind to the cause and objectives of non-profit organisations such as the hostel managed by the Montfort Youth Training Centre in Sandakan. In addition, the Group co-sponsored and provided volunteers for the annual Borneo Bird Festival. In the reporting year, we continued contributing to the local blood bank through eleven (11) blood donation campaigns resulting in a contribution of 243 pints of blood. The Group believes that these activities have positively contributed in encouraging our employees to live, embrace and share in the Group’s aspiration to share and give back to our surrounding community.

Fun activities with children at local hospital


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86 Directors’ReportandStatement

93 StatementsofComprehensiveIncome

94 BalanceSheets

96 ConsolidatedStatementofChangesinEquity

98 CompanyStatementofChangesinEquity

99 StatementsofCashFlows

101 SummaryofSignificantAccountingPolicies

116 NotestotheFinancialStatements

157 SupplementaryInformation

158 StatutoryDeclaration

159 IndependentAuditors’Report

Financial Statements

Directors’ Report and StatementTheDirectors have pleasure in presenting their report and statement togetherwith the auditedfinancial statements oftheGroupandoftheCompanyforthefinancialyearended31March2015.

PRINCIPAL ACTIVITIES

TheprincipalactivitiesoftheCompanyarethecultivationofoilpalms, investmentholding,tradingofcrudepalmoilandprovisionofmanagementservicestothesubsidiaries.TheprincipalactivitiesofthesubsidiariesarestatedinNote17tothefinancialstatements.

TherehavebeennosignificantchangesinthenatureoftheprincipalactivitiesoftheCompanyanditssubsidiariesduringthefinancialyear.

FINANCIAL RESULTS

GROUP COMPANY RM’000 RM’000

Netprofitforthefinancialyear 82,297 74,106

Attributableto:OwnersoftheCompany 90,422 74,106Non-controllinginterests (8,125) –

82,297 74,106

DIVIDENDS

Dividendspaidordeclaredsincetheendofthepreviousfinancialyearareasfollows:

RM’000

Inrespectofthefinancialyearended31March2014asreportedintheDirectors’ReportandStatementofthatyear:

Asingletierinterimdividendof7senpershare,on814,200,431ordinaryshares,paidon1July2014 56,994

On26May2015,theDirectorsdeclaredasingletierinterimdividendamountingto6senpershareinrespectofthefinancialyearended31March2015.Thesingletierinterimdividendwillbepaidon7July2015toeverymemberwhoisentitledtoreceivethedividendasat5.00p.m.on25June2015.

TheDirectorsdonotrecommendthepaymentofanyfinaldividendforthefinancialyearended31March2015.

RESERVES AND PROVISIONS

Allmaterialtransferstoorfromreservesorprovisionsduringthefinancialyeararedisclosedinthefinancialstatements.

SHARE CAPITAL

Duringthefinancialyear,theissuedandpaid-upordinarysharecapitaloftheCompanywasincreasedfromRM402,200,274toRM440,290,230bywayoftheissuanceof76,179,912newordinarysharesofRM0.50eacharisingfromtheexerciseofWarrants2009/2014attheexercisepriceofRM2.62pershareinaccordancewiththeDeedPolldated30September2009.

ThenewordinarysharesissuedrankparipassuinallrespectswiththeexistingordinarysharesoftheCompany.

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WARRANTS 2009/2014

TheWarrants2009/2014areconstitutedbyaDeedPolldated30September2009.

On 9 November 2009, the Company allotted 160,268,583 Rights Shares together with 80,134,149Warrants at an issuepriceofRM2.10perRightsShare,onarenounceablebasisoftwo(2)RightsSharesandone(1)Warrantforeveryeight(8)existingordinarysharesheldon15October2009.TheWarrants2009/2014werelistedontheMainMarketofBursaMalaysiaSecuritiesBerhadwitheffectfrom13November2009.

EachWarrant2009/2014entitlestheregisteredholdertosubscribeforone(1)newordinaryshareintheCompanyatanytimeonorafter9November2009uptothedateofexpiryon7November2014,atanexercisepriceofRM2.62inaccordancewiththeDeedPolldated30September2009.AnyWarrants2009/2014notexercisedatthedateofmaturitywilllapseandceasetobevalidforanypurpose.

TheordinarysharesissuedfromtheexerciseofWarrants2009/2014shallrankparipassuinallrespectswiththeexistingissued ordinary shares of the Company except that they shall not be entitled to any dividends, distributions or rights,theentitlementdateofwhichispriortothedateoftheallotmentofthenewsharesarisingfromtheexerciseofWarrants2009/2014.

Asat7November2014,896,603Warrants2009/2014remainedunexercisedandexpired.

DIRECTORS

TheDirectorsinofficesincethedateofthelastreportandstatementare:

TanSriDato’WongSeeWahJosephTekChoonYee+

Purushothamana/lKumaranM.Ramachandrana/lV.D.Nair*#+

TanSriDato’TanBoonSeng@KrishnanPushpanathana/lSAKanagarayar*#

Dato’SoamHengChoon*#+(Appointedw.e.f.6April2015)Dato’TehKeanMing*#+(Resignedw.e.f.5April2015)

* MembersofNominationandRemunerationCommittee# MembersofAuditCommittee+ MembersofSecuritiesandOptionsCommittee

DIRECTORS’ BENEFITS

Duringandattheendofthefinancialyear,noarrangementssubsistedtowhichtheCompanyisaparty,beingarrangementswiththeobjectorobjectsofenablingDirectorsoftheCompanytoacquirebenefitsbymeansoftheacquisitionofsharesin,ordebenturesof,theCompanyoranyotherbodycorporate,otherthanthesharesandoptionsoverordinarysharesoftheultimateholdingcompanyawardedundertheLongTermIncentivePlan.

Sincetheendofthepreviousfinancialyear,noDirectorhasreceivedorbecomeentitledtoreceiveabenefit(otherthantheremunerationshowninthefinancialstatementsoftheCompanyanditsrelatedcorporations)byreasonofacontractmadebytheCompanyorarelatedcorporationwiththeDirectororwithafirmofwhichheisamember,orwithacompanyinwhichhehasasubstantialfinancialinterest.

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DIRECTORS’ INTERESTS

AccordingtotheRegisterofDirectors’Shareholdings,particularsofinterestsofDirectorsinofficeattheendofthefinancialyear in shares, warrants and options over ordinary shares of the Company, its ultimate holding company and relatedcorporationsduringthefinancialyearareasfollows:

IJM Plantations Berhad

NUMBEROFORDINARYSHARESOFRM0.50EACH AT ATNAMEOFDIRECTORS 1.4.2014 ACQUIRED DISPOSED 31.3.2015

Direct interest:Purushothamana/lKumaran 782,500 175,000 80,000 877,500TanSriDato’TanBoonSeng@Krishnan 646,000 70,060 – 716,060

Indirect interest:M.Ramachandrana/lV.D.Nair 25,000(¹) – – 25,000(¹)

TanSriDato’TanBoonSeng@Krishnan 429,982(¹) 51,051 – 481,033(¹)

IJM Plantations Berhad

NUMBEROFWARRANTS2009/2014 AT AT DISPOSED/ EXPIRYDATENAMEOFDIRECTORS 1.4.2014 ACQUIRED EXERCISED 7.11.2014

Direct interest:Purushothamana/lKumaran 95,000 80,000 175,000 –TanSriDato’TanBoonSeng@Krishnan 70,060 – 70,060 –

Indirect interest:TanSriDato’TanBoonSeng@Krishnan 51,051(¹) – 51,051 –

Ultimate holding company– IJM Corporation Berhad

NUMBEROFORDINARYSHARESOFRM1.00EACH AT ATNAMEOFDIRECTORS 1.4.2014 ACQUIRED DISPOSED 31.3.2015

Direct interest:JosephTekChoonYee – 176,900 176,900 –Purushothamana/lKumaran 18,000 71,600 89,600 –TanSriDato’TanBoonSeng@Krishnan 2,999,180 1,424,348 1,250,000 3,173,528Dato’TehKeanMing 84,000 79,100 99,100 64,000

Indirect interest:M.Ramachandrana/lV.D.Nair 36,100(¹) – 3,100 33,000(¹)

TanSriDato’TanBoonSeng@Krishnan 389,036(¹) 1,050,000 1,300,000 139,036(¹)

Dato’TehKeanMing 91,000(¹) 39,800 15,000 115,800(¹)

Directors’ Report and Statement(cont’d)

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DIRECTORS’ INTERESTS (cont’d)


NUMBEROFWARRANTS2009/2014 AT AT DISPOSED/ EXPIRYDATENAMEOFDIRECTORS 1.4.2014 ACQUIRED EXERCISED 24.10.2014

Direct interest:Purushothamana/lKumaran 10,000 – 10,000 –TanSriDato’TanBoonSeng@Krishnan 1,424,348 – 1,424,348 –Dato’TehKeanMing 39,300 39,800 79,100 –

Indirect interest:TanSriDato’TanBoonSeng@Krishnan 1,050,000(¹) – 1,050,000 –Dato’TehKeanMing 39,800(¹) – 39,800 –


OPTIONSOVERORDINARYSHARESOFRM1EACH(“OPTIONS”) UNDEREMPLOYEESHAREOPTIONSCHEME(“ESOS”) PROVISIONAL NUMBEROFOPTIONS+ NUMBEROFOPTIONS AT AT AT ATNAMEOFDIRECTORS 1.4.2014 31.3.2015 1.4.2014 VESTED EXERCISED 31.3.2015

First ESOS Awardon 24.12.2012JosephTekChoonYee 105,000 52,500 61,600 49,400 111,000 –Purushothamana/lKumaran 105,000 52,500 61,600 49,400 61,600 49,400Dato’TehKeanMing 330,000 165,000 220,000 165,000 – 385,000

Second ESOS Awardon 24.12.2013JosephTekChoonYee 175,000 105,000 – 65,900 65,900 –Purushothamana/lKumaran 175,000 105,000 – 65,800 – 65,800Dato’TehKeanMing 550,000 330,000 – 220,000 – 220,000

Third ESOS Awardon 24.12.2014JosephTekChoonYee – 75,000 – – – –Dato’TehKeanMing – 220,000 – – – –

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DIRECTORS’ INTERESTS (cont’d)


PROVISIONALNUMBEROF ORDINARYSHARESOFRM1EACH (“SHARES”)UNDEREMPLOYEE SHAREGRANTPLAN(“ESGP”)+

PERFORMANCE++ RETENTION+++

NAMEOFDIRECTORS SHAREPLAN SHAREPLAN

First ESGP Awardon 15.04.2013JosephTekChoonYee 48,500 19,400Purushothamana/lKumaran 48,500 19,400TanSriDato’TanBoonSeng@Krishnan 196,500 50,600Dato’TehKeanMing 196,500 50,600

Second ESGP Awardon 15.04.2014JosephTekChoonYee 48,500 19,400Purushothamana/lKumaran 48,500 19,400Dato’TehKeanMing 196,500 50,600

Related company– IJM Land Berhad

NUMBEROFORDINARYSHARESOFRM1.00EACH AT DISPOSED/ ATNAMEOFDIRECTORS 1.4.2014 ACQUIRED TRANSFERRED 31.3.2015

Direct interest:Purushothamana/lKumaran 70,000 – 70,000# –TanSriDato’TanBoonSeng@Krishnan 1,245,010 – 1,245,010# –Dato’TehKeanMing 147,000 – 147,000# –

Indirect interest:M.Ramachandrana/lV.D.Nair 20,000(¹) – 20,000# –TanSriDato’TanBoonSeng@Krishnan 143,900(¹) – 143,900# –Dato’TehKeanMing 5,200(¹) 10,000 15,200# –

Notes:

(¹) Throughafamilymember

+ The vesting of the Options and/or Shares to the eligible Director is subject to the fulfillment of the relevant vestingconditionsasattherelevantvestingdates.

++ Thequantumofsharestobevestedmayvaryfrom0%to200%ofthenumberofsharesprovisionallyawarded

+++Thequantumofsharestobevestedmayvaryfrom0%to150%ofthenumberofsharesprovisionallyawarded

# Shares transferred to IJMCorporation Berhad (“IJM”) pursuant to the privatisation of IJM Land Berhad (“IJML”) by IJMundertakenbyway of a schemeof arrangementunder Section176of theCompaniesAct, 1965between IJMand allshareholdersofIJMLotherthanIJM

NoneoftheotherDirectorsinofficeattheendofthefinancialyearhadanyinterestinshares,warrants,optionsoverordinarysharesandsharegrantsoftheCompany,itsultimateholdingcompanyandrelatedcorporationsduringthefinancialyear.


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OTHER STATUTORY INFORMATION

BeforethefinancialstatementsoftheGroupandoftheCompanyweremadeout,theDirectorstookreasonablesteps:

(a) toascertaintheactiontakeninrelationtothewritingoffofbaddebtsandthemakingofallowancefordoubtfuldebtsandsatisfiedthemselvesthatallknownbaddebtshadbeenwrittenoffandnoallowancefordoubtfuldebtswerenecessary;and

(b) to ensure that any current assets, other thandebts,whichwereunlikely to realise their book values in theordinarycourseofbusinesshadbeenwrittendowntotheirestimatedrealisablevalues.

Atthedateofthisreportandstatement,theDirectorsarenotawareofanycircumstances:

(a) whichwouldrendertheamountswrittenoffforbaddebtsortheallowancefordoubtfuldebtsoftheGroupandoftheCompanyinadequatetoanymaterialextentorthevaluesattributedtocurrentassetsoftheGroupandoftheCompanymisleading;or

(b) whichhavearisenwhichrenderadherencetotheexistingmethodofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate;or

(c) nototherwisedealtwith in this reportandstatementor in thefinancial statements thatwould renderanyamountstatedinthefinancialstatementsoftheGroupandoftheCompanymisleading.

Intheintervalbetweentheendofthefinancialyearandthedateofthisreportandstatement:

(a) noitem,transactionorothereventofamaterialandunusualnaturehasarisenwhich,intheopinionoftheDirectors,wouldsubstantiallyaffecttheresultsoftheoperationsoftheGroupandoftheCompanyforthecurrentfinancialyear;or

(b) nochargehasarisenontheassetsofanycompanyintheGroupwhichsecurestheliabilityofanyotherpersonnorhasanycontingentliabilityariseninanycompanyintheGroup.

NocontingentorotherliabilityofanycompanyintheGrouphasbecomeenforceableorislikelytobecomeenforceablewithintheperiodoftwelvemonthsaftertheendofthefinancialyearwhich,intheopinionoftheDirectors,willormayaffecttheabilityoftheCompanyanditssubsidiariestomeettheirobligationswhentheyfalldue.

IntheopinionoftheDirectors:

(a) other than as disclosed in thefinancial statements, the results of the operations of theGroup andof theCompanyduring the financial year have not been substantially affected by any item, transaction or event of a material andunusualnature;

(b) thefinancial statementsof theGroupandof theCompanysetoutonpages93to157aredrawnupsoas togiveatrueandfairviewofthestateofaffairsoftheGroupandoftheCompanyasat31March2015andoftheresultsandcashflowsoftheGroupandoftheCompanyforthefinancialyearendedonthatdateinaccordancewiththeFinancialReportingStandardsinMalaysiaandtheprovisionsoftheCompaniesAct,1965;and

(c) theinformationsetoutinNote36tothefinancialstatementshavebeenpreparedinaccordancewiththeGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosurePursuanttoBursaMalaysiaSecuritiesBerhadListingRequirements,asissuedbytheMalaysianInstituteofAccountants.

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HOLDING COMPANY

TheDirectorsregardIJMCorporationBerhad,acompanyincorporatedinMalaysiaandlistedontheMainMarketofBursaMalaysiaSecuritiesBerhad,astheultimateholdingcompany.

AUDITORS

Theauditors,PricewaterhouseCoopers,haveexpressedtheirwillingnesstocontinueinoffice.

SignedonbehalfoftheBoardinaccordancewitharesolutionoftheDirectorsdated26May2015.

TAN SRI DATO’ WONG SEE WAH JOSEPH TEK CHOON YEEDirector Director

26May2015


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GROUP COMPANY 2015 2014 2015 2014 NOTE RM’000 RM’000 RM’000 RM’000

Revenue 4 667,666 646,981 165,594 188,222Costofsales 5 (428,439) (425,364) (73,424) (77,396)

Grossprofit 239,227 221,617 92,170 110,826Otherincomeandnetgains/(losses) 6 10,483 28,587 5,730 46Sellinganddistributionexpenses (82,955) (75,256) (6,717) (7,674)Administrativeexpenses (26,128) (21,865) (7,684) (5,576)

Operatingprofit 140,627 153,083 83,499 97,622Financecosts 7 (51,220) (44,000) – –

Profitbeforetax 8 89,407 109,083 83,499 97,622Incometaxexpense 11 (7,110) (25,992) (9,393) (7,974)

Net profit for the financial year 82,297 83,091 74,106 89,648

Othercomprehensiveincome:Itemsthatmaybereclassifiedsubsequently

toprofitorloss:–currencytranslationdifferencesarisingfrom–translationofnetinvestmentsinsubsidiaries (12,436) (53,472) – –

Changeintaxrate – 1,129 – 65

Total comprehensive income for the financial year 69,861 30,748 74,106 89,713

Netprofitattributableto:OwnersoftheCompany 90,422 88,640 74,106 89,648Non-controllinginterests (8,125) (5,549) – –

Net profit for the financial year 82,297 83,091 74,106 89,648

Totalcomprehensiveincomeattributableto:OwnersoftheCompany 78,071 36,587 74,106 89,713Non-controllinginterests (8,210) (5,839) – –

Total comprehensive income for the financial year 69,861 30,748 74,106 89,713

EarningspershareattributabletoownersoftheCompany(sen):

–Basic 12(a) 10.74 11.05–Diluted 12(b) 10.74 10.84

Statements of Comprehensive Incomeforthefinancialyearended31March2015

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ASSETS

NON-CURRENT ASSETSProperty,plantandequipment 14 791,675 715,490 135,705 133,615Landuserights 15 127,731 106,278 24,255 18,523Plantationexpenditure 16 997,428 869,971 254,591 253,956Interestsinsubsidiaries 17 – – 986,752 790,922Otherreceivable 19(b) 21,048 – – –Deposit 21 92,569 – – –Deferredtaxassets 26 33,037 10,327 – –

2,063,488 1,702,066 1,401,303 1,197,016

CURRENT ASSETSInventories 18 58,311 79,638 4,752 3,041Amountsduefromsubsidiaries 19(a) – – 15,377 31,997Tradeandotherreceivables 19(b) 62,637 92,244 900 1,470Derivativefinancialinstruments 20 382 627 – –Taxrecoverable 9,844 7,217 5,329 2,749Deposits,cashandbankbalances 21 375,438 343,976 101,374 50,833

506,612 523,702 127,732 90,090

TOTAL ASSETS 2,570,100 2,225,768 1,529,035 1,287,106

EQUITY AND LIABILITIES

Capital and reserves attributable to owners of the Company

Sharecapital 22 440,290 402,200 440,290 402,200Sharepremium 482,240 285,696 482,240 285,696Equitycontributionreserve 23 6,390 3,693 5,352 3,693Otherreserves 24 (60,897) (13,091) 4,945 40,400Retainedprofits 25 739,874 706,034 472,716 455,192

1,607,897 1,384,532 1,405,543 1,187,181Non-controllinginterests (9,942) (2,537) – –

Total equity 1,597,955 1,381,995 1,405,543 1,187,181

Balance Sheetsasat31March2015

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NON-CURRENT LIABILITIESDeferredtaxliabilities 26 164,719 161,812 34,893 34,844Retirementbenefits 27 2,394 1,557 – –Borrowings 28 503,576 472,924 – –Otherpayables 29(b) – – 17,199 16,541

670,689 636,293 52,092 51,385

CURRENT LIABILITIESBorrowings 28 211,059 138,216 – –Amountsduetosubsidiaries 29(a) – – 44,719 33,498Tradeandotherpayables 29(b) 89,950 68,794 26,681 15,042Currenttaxliabilities 447 470 – –

301,456 207,480 71,400 48,540

TOTAL LIABILITIES 972,145 843,773 123,492 99,925

TOTAL EQUITY AND LIABILITIES 2,570,100 2,225,768 1,529,035 1,287,106

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ATTRIBUTABLETOOWNERSOFTHECOMPANY EQUITY SHARE CONTRIBUTION OTHER RETAINED NON CAPITAL SHARE RESERVE RESERVES PROFITS CONTROLLING- TOTAL (NOTE22) PREMIUM (NOTE23) (NOTE24) (NOTE25) TOTAL INTERESTS EQUITY NOTE RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 April 2014 402,200 285,696 3,693 (13,091) 706,034 1,384,532 (2,537) 1,381,995

Comprehensiveincome:Netprofit/(loss)forthe

financialyear – – – – 90,422 90,422 (8,125) 82,297

Othercomprehensiveincome:Currencytranslation

differencesarisingfromtranslationofnetinvestmentsinsubsidiaries 24 – – – (12,351) – (12,351) (85) (12,436)

Totalcomprehensiveincomeforthefinancialyear – – – (12,351) 90,422 78,071 (8,210) 69,861

Transactionswithowners:Capitalcontributionby

ultimateholdingcompany 23 – – 2,697 – – 2,697 – 2,697Dividends 13 – – – – (56,994) (56,994) – (56,994)Issuanceofordinaryshares

pursuanttoexerciseofWarrants2009/2014 22 38,090 196,544 – (35,043) – 199,591 – 199,591

TransfertoretainedprofitsuponexpiryofWarrants2009/2014 24 – – – (412) 412 – – –

Issuanceofsharestonon-controllinginterest 17 – – – – – – 805 805

Totaltransactionswithowners 38,090 196,544 2,697 (35,455) (56,582) 145,294 805 146,099

At 31 March 2015 440,290 482,240 6,390 (60,897) 739,874 1,607,897 (9,942) 1,597,955

Consolidated Statement of Changes in Equityforthefinancialyearended31March2015

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ATTRIBUTABLETOOWNERSOFTHECOMPANY EQUITY SHARE CONTRIBUTION OTHER RETAINED NON CAPITAL SHARE RESERVE RESERVES PROFITS CONTROLLING- TOTAL (NOTE22) PREMIUM (NOTE23) (NOTE24) (NOTE25) TOTAL INTERESTS EQUITY NOTE RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 April 2013 400,862 278,793 – 39,993 673,715 1,393,363 2,903 1,396,266

Comprehensiveincome:Netprofit/(loss)forthe

financialyear – – – – 88,640 88,640 (5,549) 83,091

Othercomprehensiveincome:Currencytranslation

differencesarisingfromtranslationofnetinvestmentsinsubsidiaries 24 – – – (53,182) – (53,182) (290) (53,472)

Changeintaxrate 24 – – – 1,129 – 1,129 – 1,129

Totalothercomprehensiveincome – – – (52,053) 88,640 (52,053) (290) (52,343)

Totalcomprehensiveincomeforthefinancialyear – – – (52,053) 88,640 36,587 (5,839) 30,748


ultimateholdingcompany 23 – – 3,693 – – 3,693 – 3,693Dividends 13 – – – – (56,121) (56,121) – (56,121)Issuanceofordinaryshares

pursuanttoexerciseofWarrants2009/2014 22 1,338 6,903 – (1,231) – 7,010 – 7,010

Issuanceofsharestonon-controllinginterest 17 – – – – – – 399 399

Totaltransactionswithowners 1,338 6,903 3,693 (1,231) (56,121) (45,418) 399 (45,019)Redemptionofconvertible

cumulativeredeemablepreferencessharesinsubsidiaries 24 – – – 200 (200) – – –

At 31 March 2014 402,200 285,696 3,693 (13,091) 706,034 1,384,532 (2,537) 1,381,995

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EQUITY SHARE CONTRIBUTION OTHER RETAINED CAPITAL SHARE RESERVES RESERVES PROFITS TOTAL (NOTE22) PREMIUM (NOTE23) (NOTE24) (NOTE25) EQUITY NOTE RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 April 2014 402,200 285,696 3,693 40,400 455,192 1,187,181

Totalcomprehensiveincomeforthefinancialyear – – – – 74,106 74,106


ultimateholdingcompany 23 – – 1,659 – – 1,659Dividends 13 – – – – (56,994) (56,994)Issuanceofordinaryshares

pursuanttoexerciseofWarrants2009/2014 22 38,090 196,544 – (35,043) – 199,591

TransfertoretainedprofitsuponexpiryofWarrants2009/2014 24 – – – (412) 412 –

Totaltransactionswithowners 38,090 196,544 1,659 (35,455) (56,582) 144,256

At 31 March 2015 440,290 482,240 5,352 4,945 472,716 1,405,543

At 1 April 2013 400,862 278,793 – 41,566 421,665 1,142,886

Comprehensiveincome:Netprofitforthefinancialyear – – – – 89,648 89,648

Othercomprehensiveincome:Changeintaxrate 24 – – – 65 – 65

Totalcomprehensiveincomeforthefinancialyear – – – 65 89,648 89,713


ultimateholdingcompany 23 – – 3,693 – – 3,693Dividends 13 – – – – (56,121) (56,121)Issuanceofordinaryshares

pursuanttoexerciseofWarrants2009/2014 22 1,338 6,903 – (1,231) – 7,010

Totaltransactionswithowners 1,338 6,903 3,693 (1,231) (56,121) (45,418)

At 31 March 2014 402,200 285,696 3,693 40,400 455,192 1,187,181

Company Statement of Changes in Equityforthefinancialyearended31March2015

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OPERATING ACTIVITIESReceiptsfromcustomers 676,265 635,698 118,148 112,242Paymentstocontractors,suppliersandemployees (404,749) (442,067) (65,039) (77,144)Interestpaid (8,750) (5,627) – –Incometaxpaid (29,276) (27,497) (11,924) (9,329)

Netcashflowsgeneratedfromoperatingactivities 233,490 160,507 41,185 25,769

INVESTING ACTIVITIESSubscriptionofadditionalpreference

sharesinsubsidiaries – – – (10,700)Redemptionofpreferencesharesinsubsidiaries – – – 56,000Netrepaymentfromsubsidiaries – – 51,221 3,079Advancestosubsidiaries – – (180,603) –Additionstoproperty,plantandequipment (137,894) (81,503) (10,432) (6,341)Additionstolanduserights (26,935) (1,771) (6,492) (450)Additionstoplantationexpenditure (117,302) (78,350) (579) (560)Proceedsreceivedfromdisposalofanassociate

inpreviousyear – 1,851 – 1,851Proceedsfromdisposalofproperty,plant

andequipment 70 60 117 375Placementofdeposit (95,147) (163) – –Dividendsreceived – – 10,000 –Interestreceived 8,592 7,942 3,527 716

Netcashflows(usedin)/generatedfrominvestingactivities (368,616) (151,934) (133,241) 43,970

Statements of Cash Flowsforthefinancialyearended31March2015

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FINANCING ACTIVITIESIssuanceofordinarysharespursuanttoexercise

ofwarrants 199,591 7,010 199,591 7,010Drawdownoftermloansandshortterm

advancefacility 98,165 63,866 – –Repaymentoftermloansandshortterm

advancefacility (72,296) – – –Dividendspaid (56,994) (56,121) (56,994) (56,121)

Netcashflowsgeneratedfrom/(usedin)financingactivities 168,466 14,755 142,597 (49,111)

NET INCREASE IN CASH AND CASH EQUIVALENTS 33,340 23,328 50,541 20,628

FOREIGN EXCHANGE DIFFERENCES (4,456) (23,752) – –

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 342,536 342,960 50,833 30,205

CASH AND CASH EQUIVALENTS AT END OF YEAR 34 371,420 342,536 101,374 50,833

SIGNIFICANT NON-CASH TRANSACTION

Dividends from subsidiaries amounting to RM40,000,000 (2014: RM70,980,000) were offset against advances fromsubsidiaries.

Statements of Cash Flow(cont’d)

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Summary of Significant Accounting Policiesforthefinancialyearended31March2015

Thefollowingaccountingpolicieshavebeenappliedconsistentlytoalltheyearspresentedindealingwithitemswhichareconsideredmaterialinrelationtothefinancialstatements,unlessotherwisestated.

1 BASIS OF PREPARATION

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedinaccordancewiththeprovisionsoftheCompaniesAct,1965andFinancialReportingStandards(“FRS”).

TheGroupincludestransitioningentitiesandhaselectedtocontinuetoapplyFRSduringthecurrentandnextfinancialyear.TheGroupwillbeadoptingthenewIFRS-compliantframework,MalaysianFinancialReportingStandards(“MFRS”)with effect from1April 2017.UponadoptionofMFRS, theGroupwill be applyingMFRS1 “First-time adoptionofMFRS”.

Thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,unlessotherwiseindicatedinthissummaryofsignificantaccountingpolicies.

ThepreparationoffinancialstatementsinconformitywithFRSrequirestheuseofcertaincriticalaccountingestimatesandassumptions thataffect the reportedamountsofassetsand liabilitiesanddisclosureof contingentassetsandliabilities at the date of the financial statements, and the reported amounts of revenues and expenses during thereportedperiod. ItalsorequiresManagementtoexercisetheir judgement intheprocessofapplyingtheGroupandtheCompany’saccountingpolicies.Althoughtheseestimatesand judgementarebasedontheManagement’sbestknowledgeofcurrenteventsandactions,actualresultsmaydifferfromthoseestimates.

The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates aresignificanttothefinancialstatements,aredisclosedinNote2tothefinancialstatements.

(a) Amendmentstopublishedstandardsthatareeffective

The amendments to published standards that are effective for the Group’s and the Company’s financial yearbeginningonorafter1April2014andapplicabletotheGroupandtheCompanyareasfollows:

• AmendmentstoFRSs10,12&127“InvestmentEntities”

• AmendmenttoFRS132“OffsettingFinancialAssetsandFinancialLiabilities”

• AmendmenttoFRS139“NovationofDerivativesandContinuationofHedgeAccounting”

• ICInterpretation21,“Levies”

TheamendmentstopublishedstandardsdonotresultinasignificantchangetotheaccountingpoliciesanddonothaveamaterialimpactonthefinancialstatementsoftheGroupandoftheCompany.

(b) StandardsandamendmentstopublishedstandardsthatareapplicabletotheGroupandtheCompany,butarenotyeteffectiveandhavenotbeenearlyadopted

(i) TheamendmentstopublishedstandardsthataremandatoryfortheGroup’sandtheCompany’sfinancialyearbeginningonorafter1April2015andtheGroupandtheCompanyhavenotearlyadopted,areasfollows:

• AnnualimprovementstoFRSs2010-2012Cycle(effectivefrom1July2014),whichincludeAmendmentstoFRS2“Share-basedPayment”,FRS3“BusinessCombinations”,FRS8“OperatingSegments”,FRS13“FairValueMeasurement”,FRS116“Property,PlantandEquipment”,FRS124“RelatedPartyDisclosures”andFRS138“IntangibleAssets”

• AnnualimprovementstoFRSs2011–2013Cycle(effectivefrom1July2014),whichincludeAmendmentstoFRS1“First-timeAdoptionofFinancialReportingStandards”,FRS3“BusinessCombinations”,FRS13“FairValueMeasurement”andFRS140“InvestmentProperty”

• AmendmentstoFRS119“DefinedBenefitsPlans:EmployeeContributions”

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1 BASIS OF PREPARATION (cont’d)

(b) StandardsandamendmentstopublishedstandardsthatareapplicabletotheGroupandtheCompany,butarenotyeteffectiveandhavenotbeenearlyadopted(cont’d)

(ii) The new standard and amendments to published standards that are mandatory for the Group’s and theCompany’sfinancialyearbeginningonorafter1April2016whichtheGroupandtheCompanyhavenotearlyadopted,areasfollows:

• FRS14“RegulatoryDeferralAccounts”

• AmendmentstoFRS11“AccountingforAcquisitionsofInterestsinJointOperations”

• AmendmentstoFRS116andFRS138“ClarificationofAcceptableMethodsofDepreciationandAmortisation”

• AmendmentstoFRS10“ConsolidatedFinancialStatements”&FRS128“InvestmentinAssociatesandJointVentures”–“SaleorContributionofAssetsbetweenanInvestoranditsAssociateorJointVenture”

• AmendmenttoFRS127“SeparateFinancialStatements”–“EquitymethodinSeparateFinancialStatements”

• AnnualimprovementstoFRSs2012–2014Cycle,whichincludeAmendmentstoFRS5“Non-currentAssetsHeldforSaleandDiscontinuedOperations”,FRS7“FinancialInstruments:Disclosures”,FRS119“EmployeeBenefits”andFRS134“InterimFinancialReporting”

• AmendmentstoFRS101“PresentationofFinancialStatements”–“DisclosureInitiative”

• AmendmentstoFRS10,FRS12andFRS128“InvestmentEntities:ApplyingtheConsolidationException”

(iii) The new standard and amendments to published standards that are mandatory for the Group’s and theCompany’sfinancialyearbeginningonorafter1April2017whichtheGroupandtheCompanyhavenotearlyadoptedareasfollows*:

• AmendmentstoMFRS116“Property,PlantandEquipment”andMFRS141“Agriculture”–“Agriculture:BearerPlants”

• MFRS15“RevenuefromContractswithCustomers”

(iv) ThenewstandardthatismandatoryfortheGroup’sandtheCompany’sfinancialyearbeginningonorafter1April2018andtheGroupandtheCompanyhavenotearlyadoptedisasfollows*:

• MFRS9“Financialinstruments”willreplaceFRS139“FinancialInstruments:RecognitionandMeasurement”.

MFRS 9 retains but simplifies themixedmeasurementmodel in FRS 139 and establishes three primarymeasurementcategoriesforfinancialassets:amortisedcost,fairvaluethroughprofitorlossandfairvaluethroughothercomprehensive income(“OCI”).Thebasisofclassificationdependsontheentity’sbusinessmodelandthecontractualcashflowcharacteristicsofthefinancialasset.InvestmentsinequityinstrumentsarealwaysmeasuredatfairvaluethroughprofitorlosswithanirrevocableoptionatinceptiontopresentchangesinfairvalueinOCI(providedtheinstrumentisnotheldfortrading).Adebtinstrumentismeasuredatamortisedcostonlyiftheentityisholdingittocollectcontractualcashflowsandthecashflowsrepresentprincipalandinterest.

For liabilities, the standard retains most of the FRS 139 requirements. These include amortised costaccountingformostfinancialliabilities,withbifurcationofembeddedderivatives.Themainchangeisthat,incaseswherethefairvalueoptionistakenforfinancialliabilities,thepartofafairvaluechangeduetoanentity’sowncreditriskisrecordedinothercomprehensiveincomeratherthantheincomestatement,unlessthiscreatesanaccountingmismatch.

* ThesestandardsandamendmentstopublishedstandardswillbeadoptedontherespectiveeffectivedatesupontheadoptionoftheMFRSframework.

Summary of Significant Accounting Policies(cont’d)

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1 BASIS OF PREPARATION (cont’d)

(b) StandardsandamendmentstopublishedstandardsthatareapplicabletotheGroupandtheCompany,butarenotyeteffectiveandhavenotbeenearlyadopted(cont’d)

TheGroup is in theprocessofassessingthefull impactof theabovestandardsandamendmentstopublishedstandardsonthefinancialstatementsoftheGroupandtheCompanyintheyearofinitialapplication.

2 ECONOMIC ENTITIES IN THE GROUP

(a) Subsidiaries

Subsidiariesarethosecorporations,partnershipsorotherentities (includingstructuredentities)overwhichtheGrouphascontrol.TheGroupcontrolsanentitywhentheGroupisexposedto,orhasrightsto,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspowerovertheentity.

The existence and effect of potential voting rights are consideredwhenassessingwhether theGroup controlsanotherentity.Inassessingwhetherpotentialvotingrightscontributetocontrol,theGroupexaminesallfactsandcircumstances(includingthetermsofexerciseofthepotentialvotingrightsandanyothercontractualarrangementswhetherconsideredindividuallyorincombination)thataffectpotentialvotingrights.

SubsidiariesarefullyconsolidatedfromthedateonwhichcontrolistransferredtotheGroupandarede-consolidatedfromthedatethatcontrolceases.Subsidiariesareconsolidatedusingtheacquisitionmethodofaccounting,exceptforbusinesscombinationsinvolvingentitiesorbusinessesundercommoncontrolwithagreementdatesonorafter1January2006,whichareaccountedforusingthepredecessorbasisofaccounting.

Under theacquisitionmethodofaccounting, theconsiderationtransferred ismeasuredas the fairvalueof theassetsgiven,equityinstrumentsissuedandliabilitiesincurredtotheformerownersoftheacquireeorassumedat thedateof exchange.The consideration transferred includes the fair valueof anyassetor liability resultingfromacontingentconsiderationarrangement.Thecostsdirectlyattributabletotheacquisitionareexpensedasincurred.Identifiableassetsacquiredandliabilitiesandcontingentliabilitiesassumedinabusinesscombinationaremeasuredinitiallyattheirfairvaluesatthedateofacquisition.Theexcessoftheconsiderationtransferred,theamountofanynon-controllinginterestintheacquireeandtheacquisition-datefairvalueofanypreviousequityinterestintheacquireeoverthefairvalueoftheidentifiablenetassetsacquiredisrecognisedasgoodwill.Ifthetotalofconsiderationtransferred,non-controllinginterestrecognisedandpreviouslyheldinterestmeasuredislessthanthefairvalueofthenetassetsofthesubsidiaryacquiredinthecaseofabargainpurchase,thedifferenceisrecogniseddirectlyinprofitorloss.

Ifthebusinesscombinationisachievedinstages,theacquisitiondatefairvalueoftheacquirer’spreviouslyheldequityinterestintheacquireeisremeasuredtofairvalueatthesuccessiveacquisitiondatesateachstage,andthechangesinfairvalueistakenthroughprofitorloss.

Underthepredecessorbasisofaccounting,assetsandliabilitiesacquiredarenotrestatedtotheirrespectivefairvaluesbutatthecarryingamountsfromtheconsolidatedfinancialstatementsoftheultimateholdingcompanyof the Group and adjusted to ensure uniform accounting policies of the Group. The difference between anyconsiderationgivenandtheaggregatecarryingamountsoftheassetsandliabilities(asofthedateoftransaction)oftheacquiredentityisrecordedasareserve.Noadditionalgoodwillisrecognised.Theacquiredentity’sresults,assetsandliabilitiesareconsolidatedasifboththeacquirerandtheacquireehadalwaysbeencombined.Consequently,theconsolidatedfinancialstatementsreflectbothentities’fullyear’sresults.Thecorrespondingamountsforthepreviousyearreflectthecombinedresultsofbothentities.

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2 ECONOMIC ENTITIES IN THE GROUP (cont’d)

(a) Subsidiaries (cont’d)

Non-controllinginterestrepresentsthatportionoftheprofitorlossandnetassetsofasubsidiaryattributabletoequityintereststhatarenotowned,directlyorindirectlythroughsubsidiaries,bytheCompany.Itismeasuredon an acquisition-by-acquisition basis, either at the non-controlling interests’ share of the fair value of thesubsidiaries’ identifiable assets and liabilities or at the non-controlling interest’s proportionate share of therecognised amounts of acquiree’s identifiable net assets at the date of acquisition and the non-controllinginterests’shareofchangesinthesubsidiaries’equitysincethatdate.

Allearningsand lossesof thesubsidiaryareattributed to theownersof theCompanyand thenon-controllinginterests,even if theattributionof lossestothenon-controlling interests results inadebitbalance inthetotalequity.

All inter-company transactions, balances and unrealised gains on transactions between group companies areeliminatedexceptforcontractedfinishedgoodswhicharestatedatnetrealisablevalue.Unrealisedlossesarealsoeliminatedbut consideredan impairment indicatorof theasset transferred.Wherenecessary, adjustmentsaremadetothefinancialstatementsofsubsidiariestoensureconsistencyofaccountingpolicieswiththoseoftheGroup.

(b) Changes in ownership interests in subsidiaries without change of control

Transactions with non-controlling interests that do not result in loss of control are accounted for as equitytransactions – that is, as transactions with the owners in their capacity as owners. For purchases fromnon-controlling interests, thedifferencebetweenanyconsiderationpaidand the relevant shareof thecarryingvalueofnetassetsofthesubsidiaryacquiredisdeductedfromequity.Fordisposalstonon-controllinginterests,differencesbetweenanyproceedsreceivedandtherelevantshareofnon-controllinginterestsarealsorecognisedinequity.

(c) Disposal of subsidiaries

WhentheGroupceasestohavecontroloverasubsidiary,anyretainedinterestintheentityisre-measuredtoitsfairvalueatthedatewhencontrolislost,withthechangeincarryingamountrecognisedinprofitorloss.Thefairvalueistheinitialcarryingamountforthepurposesofsubsequentlyaccountingfortheretainedinterestasanassociate,jointventureorfinancialasset.Inaddition,anyamountspreviouslyrecognisedinothercomprehensiveincomeinrespectofthatentityareaccountedforasiftheGrouphaddirectlydisposedoftherelatedassetsandliabilities.Thismaymeanthatamountspreviouslyrecognisedinothercomprehensiveincomearereclassifiedtoprofitorloss.

3 PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION

Allproperty,plantandequipmentarestatedatcostoratvaluationlessaccumulateddepreciationandaccumulatedimpairment except for freehold land and capital work-in-progress which are not depreciated. Freehold land is notdepreciatedasithasaninfinitelife.Depreciationoncapitalwork-in-progresscommenceswhentheassetsarereadyfortheirintendeduse.

Cost includesexpenditurethatisdirectlyattributabletotheacquisitionoftheasset.Subsequentcostsareincludedintheasset’scarryingamountorrecognisedasaseparateasset,asappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheGroupandthecostoftheitemcanbemeasuredreliably.Thecarryingamountofthereplacedpartisderecognised.Allotherrepairsandmaintenancearerecognisedasexpensesinprofitorlossduringthefinancialyearinwhichtheyareincurred.


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3 PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION (cont’d)

Spares and parts, stand-by-equipment and servicing equipmentwhichmeets the definition of property, plant andequipmentareclassifiedunderproperty,plantandequipmentanddepreciatedaccordingly.

TheGroupamortisesplantationinfrastructuredevelopmentexpenditureinequalannualinstalmentsovertheperiodoftherespectiveleasesrangingfrom21to81years.Leaseholdlandsclassifiedasfinanceleasesareamortisedinequalinstalmentsovertheremainingperiodoftherespectiveleasesthatrangefrom72to883years.Otherproperty,plantandequipmentaredepreciatedonastraight-linebasistowrite-offthecostoftheassets,ortheirrevaluedamounts,totheirresidualvaluesovertheirestimatedusefullives.Theannualratesofdepreciationare:

Buildings 2to20%Plant,machineryandequipment 4to20%Motorvehicles 10to20%Officeequipment,furnitureandfittings 10to33.3%

Capitalwork-in-progresscomprisingmainlybuilding,plant,machineryandequipmentwhicharestatedatcostarenotdepreciateduntiltheassetsarereadyfortheirintendeduse.

TheDirectorshaveappliedthetransitionalprovisionsofInternationalAccountingStandards(“IAS”)16“Property,PlantandEquipment”,whichhasbeenadoptedby theMASB,whichallows theassets tobe statedat their last revaluedamounts lessaccumulateddepreciationandaccumulated impairment.Accordingly, thesevaluationshavenotbeenupdated.

The residual values and useful lives of property, plant and equipment are reviewed, and adjusted as appropriate,ateachbalancesheetdate.Theeffectsofanyrevisionoftheresidualvaluesandusefullivesareincludedinprofitorlossforthefinancialyearinwhichthechangesarise.

Ateachbalancesheetdate,theGroupassesseswhetherthereisanyindicationofimpairment.Whereanindicationofimpairmentexists,thecarryingvalueoftheassetisassessedandwrittendownimmediatelytoitsrecoverableamount.SeeaccountingpolicyNote6onimpairmentofnon-financialassets.

Gainsandlossesondisposalsaredeterminedbycomparingproceedswithcarryingamountsandareincludedinprofitorloss.Ondisposalofrevaluedassets,amountsintherevaluationreserverelatingtothoseassetsaretransferredtoretainedprofits.

4 PLANTATION EXPENDITURE

Plantation expenditure comprises new planting expenditure, estate administration, borrowing costs relating toqualifyingexpenditure, depreciationofproperty, plantandequipment, amortisationof landuse rightsandupkeepofplantationuptoitsmaturityandarestatedatcostorvaluation.Allexpenditureincurredsubsequenttomaturity,replantingexpenditureandupkeepandmaintenanceexpenditureincludingfertilisingcostsarechargedtoprofitorlosswhenincurred.

PlantationexpenditureoftheCompanyandofcertainsubsidiariesoftheGrouphadbeenrevaluedin1997.TheDirectorshavenotadoptedapolicyofregularrevaluationsofsuchassetsandnolatervaluationhasbeenrecorded.

5 INVESTMENTS

In the Company’s separate financial statements, investments in subsidiaries are carried at cost less accumulatedimpairment.Whereanindicationofimpairmentexists,thecarryingamountoftheinvestmentisassessedandwrittendownimmediatelytoitsrecoverableamount.SeeaccountingpolicyNote6onimpairmentofnon-financialassets.

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6 IMPAIRMENT OF NON-FINANCIAL ASSETS

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually forimpairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes incircumstancesindicatethatthecarryingvaluemaynotberecoverable.Animpairmentisrecognisedfortheamountbywhichthecarryingvalueoftheassetexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandvalue-in-use.Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashflows(cash-generatingunits).Non-financialassets,otherthangoodwill,thatsufferedimpairmentarereviewedforpossiblereversaloftheimpairmentateachreportingdate.

The impairment is charged toprofitor lossunless it reversesaprevious revaluation, inwhich case it is charged totherevaluationsurplus.Impairmentofgoodwillisnotreversed.Inrespectofotherassets,anysubsequentincreaseinrecoverableamountisrecognisedinprofitorlossunlessitreversesanimpairmentofarevaluedasset,inwhichcaseitistakentorevaluationsurplusreserve.

7 LEASES

Aleaseisanagreementwherebythelessorconveystothelesseeinreturnforapayment,orseriesofpayments,therighttouseanassetforanagreedperiodoftime.

Accounting as lessee

Financeleases

Leasesofproperty,plantandequipmentwheretheGroupassumessubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.

Financeleasesarecapitalisedatthelowerofthefairvalueoftheleasedassetsandtheestimatedpresentvalueoftheunderlyingleasepaymentsatthedateofinception.Eachleasepaymentisallocatedbetweentheliabilityandfinancechargessoastoachieveaperiodicconstantrateofinterestontheleaseprincipaloutstanding.Thecorrespondingrentalobligations,netoffinancecharges,areincludedinborrowings.Theinterestelementofthefinancechargeischargedtoprofitorlossovertheleaseperiodsoastoproduceaconstantperiodicrateofinterestontheremainingbalanceoftheliabilityforeachperiod.

Property,plantandequipmentacquiredunderfinanceleasecontractsisdepreciatedovertheusefullifeoftheasset.IfthereisnoreasonablecertaintythattheownershipwillbetransferredtotheGroup,theassetisdepreciatedovertheshorteroftheleasetermanditsusefullife.

Operatingleases

Leasesofassetswhereasignificantportionoftherisksandrewardsofownershipareretainedbythelessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleasesarechargedtoprofitorlossovertheleaseperiod.

8 LAND USE RIGHTS

Landuserightswhereasignificantportionoftherisksandrewardsisnotexpectedtopasstothelesseebytheendoftheleasetermistreatedasanoperatinglease.Landuserightsarecarriedatcostorsurrogatecarryingamountandareamortisedonastraightlinebasisovertheleaseterms.

Landuserightsareamortisedoverthelanduserightsperiodsrangingfrom30to50years.


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9 INVENTORIES

Inventoriesarestatedatthelowerofcostandnetrealisablevalue,otherthanforcontractedcrudepalmoil,crudepalmkerneloilandpalmkernelexpellerswhicharestatedatnetrealisablevalue.

Costcomprisestheoriginalcostofpurchaseplusthecostofbringingtheinventoriestotheir intendedlocationandcondition.Thecostsaredeterminedatweightedaveragebasisandincludethecostofrawmaterials,directlabourandaportionofproductionoverheads.

Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesale.

10 RECEIVABLES

(a) Trade receivablesareamountsdue fromcustomers forgoodssoldorservicesperformed in theordinarycourseofbusiness.Ifcollectionisexpectedinoneyearorless(orinthenormaloperatingcycleofthebusiness,iflonger),theyareclassifiedascurrentassets.Ifnot,theyarepresentedasnon-currentassets.

Trade receivables are recognised initially at fair value and subsequentlymeasured at amortised cost using theeffectiveinterestmethod,lessprovisionforimpairment.

(b) Advances for plasma schemes represent accumulated plantation development cost including borrowing costsandindirectoverheadslessrepaymentstodateandprovisionsforimpairment,whicharerecoverablefromplasmafarmers.SeeNote19(b)(iv)tothefinancialstatementsonreceivables.

IntheeventtheGrouportheCompanyprovidescorporateguaranteestotheplasmaschemestoobtainloansfromfinancialinstitutions,itwillbeaccountedforasafinancialguaranteecontract.SeeaccountingpolicyNote22onfinancialguaranteecontracts.

SeeaccountingpolicyNote19(d)onimpairmentoffinancialassets.

11 CASH AND CASH EQUIVALENTS

Forthepurposeofstatementsofcashflows,cashandcashequivalentscomprisecashinhand,depositsheldatcallwithbanks,othershortterm,highlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlessthatarenotrestrictedforuse,andbankoverdrafts.Bankoverdraftsifanyareincludedwithinborrowingsincurrentliabilitiesonthebalancesheets.

12 SHARE CAPITAL

(i) Classification

Ordinarysharesareclassifiedasequity.

(ii) Share issue costs

Externalcostsdirectlyattributabletotheissueofnewsharesareshownasadeductionfromthesharepremiumaccount.Inothercases,theyarechargedtoprofitorlosswhenincurred.

(iii) Dividends

Interim dividends on ordinary shares are recognised as liabilities when declared. Proposed final dividends areaccruedasliabilitiesonlyafterapprovalbyshareholders.

(iv) Warrant reserve

Proceeds from the issuance of warrants, net of issue costs, are credited to the warrant reserve which is non-distributableascashdividends.Warrantreserveistransferredtothesharepremiumaccountupontheexerciseofwarrantsandthewarrantreserveinrelationtounexercisedwarrantsattheexpiryofthewarrantsperiodwillbetransferredtoretainedprofits.

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13 BORROWINGS AND BORROWING COSTS

Borrowingsareinitiallyrecognisedatfairvalue,netoftransactioncostsincurred.Borrowingsaresubsequentlycarriedatamortisedcost;anydifferencebetweeninitialrecognisedamountandtheredemptionvalueisrecognisedinprofitorlossovertheperiodoftheborrowingsusingtheeffectiveinterestmethod,exceptforborrowingcostsincurredfortheacquisition,constructionorproductionofanyqualifyingassets.

General and specific borrowing costs, including exchange differences to the extent that they are regarded as anadjustmentto interestcosts,directlyattributabletotheacquisition,constructionorproductionofqualifyingassetswhichareassetsthatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,areaddedtothecostofthoseassets,untilsuchtimeastheassetsaresubstantiallyreadyfortheirintendeduseorsale.

Borrowing costs incurred on borrowings to finance the property, plant and equipment and plantation expenditureduringtheperiodthatisrequiredtocompleteandpreparetheassetforitsintendedusearecapitalisedaspartofthecostoftheassetandpresentedaspartofthecashflowsusedininvestingactivities.

Allotherborrowingcostsarechargedtoprofitorlossintheperiodinwhichtheyareincurred.

14 INCOME TAXES

Theincometaxexpensefortheperiodcomprisescurrentanddeferredtax.Taxisrecognisedinprofitorloss,excepttotheextentthatitrelatestoitemsrecognisedinothercomprehensiveincomeordirectlyinequity.Inthiscasethetaxisalsorecognisedinothercomprehensiveincomeordirectlyinequity,respectively.

Current taxexpense isdeterminedaccording to the tax lawsof each jurisdiction inwhich theGroupoperatesandincludes all taxes based upon the taxable profits, including withholding taxes payable by a foreign subsidiary ondistributionsofretainedprofitstocompaniesintheGroup.

Deferredtaxisrecognised,usingtheliabilitymethod,ontemporarydifferencesatthebalancesheetdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamounts inthefinancialstatements.Deferredtax liabilitiesarerecognisedforall taxabletemporarydifferencesanddeferredtaxassetsarerecognisedforalldeductibletemporarydifferencestotheextentthatitisprobablethattaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferencesorunusedtaxlossescanbeutilised.

Deferredtax isnot recognised if thetemporarydifferencearises fromgoodwillor fromthe initial recognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationand,atthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit.

Deferredtaxisrecognisedontemporarydifferencesarisingoninvestmentsinsubsidiaries,exceptwherethetimingofthereversalofthetemporarydifferencecanbecontrolledanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.

Deferredtax ismeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheasset isrealisedortheliabilityissettled,basedontaxratesthathavebeenenactedorsubstantivelyenactedatthebalancesheetdate.

Deferred tax is recognised inprofitor loss, exceptwhen itarises froma transactionwhich is recogniseddirectly inequity,inwhichcasethedeferredtaxisalsochargedorcrediteddirectlytoequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwill.

Deferredtaxassetsandliabilitiesareoffsetwhentheenterprisehasalegallyenforceablerighttooffsetandintendstosettleeitheronanetbasisortorealisetheassetandsettletheliabilitysimultaneously.

Taxbenefitsarisingfrombothreinvestmentallowanceandinvestmenttaxallowanceareonlyrecognisedasdeferredtaxassetswhenthetaxcreditsarebeingutilisedduringthereportingperiod.


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15 EMPLOYEE BENEFITS

(a) Short term employee benefits

TheGrouprecognisesaliabilityandanexpenseforbonusesbasedonaformulathattakesintoconsiderationtheprofit attributable to the owners of the Company after certain adjustments.TheGroup recognises a provisionwherethereisacontractualobligationorwherethereisapastpracticethathascreatedaconstructiveobligation.

Wages,salaries,bonusesandnon-monetarybenefitsareaccruedintheperiodinwhichtheassociatedservicesarerenderedbyemployeesoftheGroup.

(b) Post-employment benefits

TheGrouphasvariouspost-employmentbenefitschemesinaccordancewithlocalconditionsandpracticesinthecountriesinwhichitoperates.Thesebenefitplansareeitherdefinedcontributionplansordefinedbenefitplans.

A defined contribution plan is a pension planunderwhich theGrouppays fixed contributions into a separateentity(afund)andwillhavenolegalorconstructiveobligationstopayfurthercontributionsifthefunddoesnotholdsufficientassetstopayallemployeebenefitsrelatingtoemployeesserviceinthecurrentandpriorperiods.Adefinedbenefitplanisapensionplanthatdefinesanamountofpensionbenefittobeprovided,usuallydependentononeormorefactorssuchasage,yearsofserviceorcompensation.

(i) Defined contribution plan

TheGroup’s contributions to a defined contributionplan are charged to theprofit or loss in theperiod towhich they relate.Once the contributions have beenpaid, theGrouphas no further payment obligations.Prepaidcontributionsarerecognisedasanassettotheextentthatacashrefundorareductioninthefuturepaymentsisavailable.Asrequiredbylaw,companiesinMalaysiamakecontributionstothenationalpensionscheme,theEmployeesProvidentFund(“EPF”),whichisadefinedcontributionplan.

(ii) Defined benefit plan

Theliabilityinrespectofadefinedbenefitplanisthepresentvalueofthedefinedbenefitobligationatthebalancesheetdateminusthefairvalueofplanassets,togetherwithadjustmentsforactuarialgains/lossesandpastservicecosts.TheGroupdeterminesthepresentvalueofthedefinedbenefitobligationandthefairvalueofanyplanassetswithsufficientregularitysuchthattheamountsrecognisedinthefinancialstatementsdonotdiffermateriallyfromtheamountsthatwouldbedeterminedatthebalancesheetdate.

Theliabilityinrespectofadefinedbenefitplanisthepresentvalueofthedefinedbenefitobligationatthebalancesheetdate,togetherwithadjustmentsforactuarialgains/lossesandpastservicecosts.

The defined benefit obligation, calculated using the projected unit credit method, is determined byindependentactuaries,consideringtheestimatedfuturecashoutflowsusingmarketyieldsatbalancesheetdateongovernmentsecuritiesthathavematuritydatesapproximatingthetermsoftherelatedliability.

Actuarialgainsandlossesarisemainlyfromthechangesinactuarialassumptionsandexperienceadjustments.Suchgainsandlossesarecreditedorchargedtoequityinothercomprehensiveincomeintheperiodinwhichtheyarise.

Past service costs are recognised immediately in the profit or loss, unless the changes to the plan areconditionalontheemployeesremaininginserviceforaspecifiedperiodoftime(thevestingperiod).Inthiscase,thepastservicecostsareamortisedonastraight-linebasisoverthevestingperiod.

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15 EMPLOYEE BENEFITS (cont’d)

(c) Share-based compensation

TheCompany’sultimateholdingcompanyoperatesanequity-settledshare-basedcompensationplanunderwhichtheCompanyreceivesservicesfromemployeesasconsiderationforequityinstruments(shareoptionsandsharegrants)oftheultimateholdingcompany.Thefairvalueoftheemployeesservicesreceivedinexchangeforthegrantoftheshareoptionsandsharegrantsisrecognisedasanexpense.

Non-marketvestingconditionsareincludedinassumptionsaboutthenumberofshareoptionsandsharegrantsthatareexpectedtovest.Thetotalexpenseisrecognisedoverthevestingperiod,whichistheperiodoverwhichallofthespecifiedvestingconditionsaretobesatisfied.Attheendofthereportingperiod,theCompanyrevisesitsestimatesofthenumberofshareoptionsandsharegrantsthatareexpectedtovestbasedonthenon-marketvestingconditions. Itrecognisestheimpactoftherevisiontooriginalestimates, ifany, inprofitor lossoverthevesting period with a corresponding credit recognised in equity. The credit to equity is treated as a capitalcontributionastheultimateholdingcompanyiscompensatingtheCompany’semployeeswithnoexpensetotheCompany.

If the terms of an equity-settled share-based compensation plans are modified, at a minimum an expense isrecognisedasifthetermshadnotbeenmodified.Anadditionalexpenseisrecognisedforanymodificationthatincreasesthetotalfairvalueoftheshare-basedpaymentarrangement,orisotherwisebeneficialtotheemployee,asmeasuredatthedateofmodification.

WhentheultimateholdingcompanyrechargestheCompanyfortheequityinstrumentsgranted,therechargeistreatedasanadjustmenttothecapitalcontributionfromtheultimateholdingcompany.

16 CONTINGENT LIABILITIES

TheGroupdoesnotrecogniseacontingentliabilitybutdisclosesitsexistenceinthefinancialstatements.Acontingentliabilityisapossibleobligationthatarisesfrompasteventswhoseexistencewillbeconfirmedbytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsbeyondthecontroloftheGrouporapresentobligationthatisnot recognised because it is not probable that an outflow of resources will be required to settle the obligation.A contingent liability also arises in the extremely rare circumstance where there is a liability that cannot berecognisedbecauseitcannotbemeasuredreliably.Contingentliabilitiesdonotincludefinancialguaranteecontracts.(seeaccountingpolicyNote22onfinancialguaranteecontracts)

IntheacquisitionofsubsidiariesbytheGroupunderabusinesscombination,thecontingentliabilitiesassumedaremeasuredinitiallyattheirfairvaluesattheacquisitiondate,irrespectiveoftheextentofanynon-controllinginterest.

TheGrouprecognisesseparatelythecontingentliabilitiesoftheacquireesaspartofallocatingthecostofabusinesscombinationwheretheirfairvaluescanbemeasuredreliably.Wherethefairvaluescannotbemeasuredreliably,theresultingeffectwillbereflectedinthegoodwillarisingfromtheacquisitionsandtheinformationaboutthecontingentliabilitiesacquiredaredisclosedinthenotestothefinancialstatements.

Subsequent to the initial recognition, theGroupmeasures the contingent liabilities that are recognised separatelyat thedateofacquisitionat thehigherof theamount thatwouldbe recognised inaccordancewith theprovisionsofFRS137“Provisions,ContingentLiabilitiesandContingentAssets”andtheamount initiallyrecognisedless,whenappropriate,cumulativeamortisationrecognisedinaccordancewithFRS118“Revenue”.


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17 REVENUE RECOGNITION

RevenuecomprisesthefairvalueoftheconsiderationreceivedorreceivableforthesaleofgoodsandservicesintheordinarycourseoftheGroup’sactivities.RevenueisshownnetofsalestaxesanddiscountsandaftereliminatingsaleswithintheGroup.

The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that futureeconomic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities asdescribedbelow.Theamountofrevenueisnotconsideredtobereliablymeasurableuntilallcontingenciesrelatingtothesalehavebeenresolved.TheGroupbasesitsestimatesonhistoricalresults,takingintoconsiderationthetypeofcustomer,thetypeoftransactionandthespecificsofeacharrangement.

(i) Sale of goods

Revenue is recognisedupon transferof significant risksand rewardsofownership to thebuyer.Revenue isnotrecognised to theextentwhere thereare significantuncertainties regarding recoveryof the considerationdue,associatedcostsorthepossiblereturnofgoods.

(ii) Dividend income

Dividendincomeisrecognisedwhentheshareholders’righttoreceivepaymentisestablished.

(iii) Plantation advisory and management fee services

Revenueforservicesrenderedisrecognisednetofsalestaxuponperformanceofservices.

(iv) Interest income

Interestincomeisrecognisedonaccrualbasis,usingtheeffectiveinterestratemethod.

18 FOREIGN CURRENCIES

(a) Functional and presentation currency

ItemsincludedinthefinancialstatementsofeachoftheGroup’sentitiesaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(the“functionalcurrency”).ThefinancialstatementsarepresentedinRinggitMalaysia,whichistheCompany’sfunctionalandpresentationcurrencyandtheGroup’spresentationcurrency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currencyusing the exchange rates prevailingonthetransactiondates.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationatyear-endexchangeratesofmonetaryassetsandliabilitiesdenominatedinforeigncurrencies are recognised in profit or loss, except that exchange differences arising from foreign currencyborrowingstotheextentthattheyareregardedasanadjustmenttointerestcostsareclassifiedasborrowingcosts.

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18 FOREIGN CURRENCIES (cont’d)

(c) Group companies

Theresultsandfinancialpositionofallthegroupentities(noneofwhichhasthecurrencyofahyperinflationaryeconomy) that have a functional currency different from the presentation currency are translated into thepresentationcurrencyasfollows:

• Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of thatbalancesheet;

• Income and expenses for each statement of comprehensive incomepresented are translated at the averageexchange rates (unless this average is not a reasonable approximation of the cumulative effect of the ratesprevailingonthetransactiondates,inwhichcaseincomeandexpensesaretranslatedattherateonthedatesofthetransactions);and

• Allresultingexchangedifferencesarerecognisedasaseparatecomponentofothercomprehensiveincome.

Onconsolidation,exchangedifferencesarisingfromthetranslationofthenet investment inforeignoperationsaretakentoothercomprehensiveincome.Onthedisposalofaforeignoperation(thatis,adisposaloftheGroup’sentireinterestinaforeignoperation,oradisposalinvolvinglossofcontroloverasubsidiarythatincludesaforeignoperation),alloftheexchangedifferencesrelatingtothatforeignoperationrecognisedinothercomprehensiveincomeandaccumulated in theseparatecomponentofequityare reclassifiedtoprofitor loss. In thecaseofapartialdisposalthatdoesnotresultintheGrouplosingcontroloverasubsidiarythatincludesaforeignoperation,theproportionateshareofaccumulatedexchangedifferencesarere-attributedtonon-controllinginterestsandarenotrecognisedinprofitorloss.

Goodwillandfairvalueadjustmentsarisingontheacquisitionofaforeignentityaretreatedasassetsandliabilitiesoftheforeignentityandaretranslatedattheclosingrateatthedateofthebalancesheets.

19 FINANCIAL INSTRUMENTS

Financialinstrumentsarecontractsthatgiverisetobothafinancialassetofoneenterpriseandafinancialliabilityorequityinstrumentofanotherenterprise.

Afinancialassetisanyassetthatiscash,acontractualrighttoreceivecashoranotherfinancialassetfromanotherenterprise,acontractual right toexchangefinancial instrumentswithanotherenterpriseunderconditions thatarepotentiallyfavourable,oranequityinstrumentofanotherenterprise.

Afinancialliabilityisanyliabilitythatisacontractualobligationtodelivercashoranotherfinancialassettoanotherenterprise, or to exchange financial instruments with another enterprise under conditions that are potentiallyunfavourable.

(a) Classification

TheGroupclassifiesitsfinancialassetsinthefollowingcategories:atfairvaluethroughprofitorlossandloansandreceivables.Theclassificationdependsonthenatureoftheassetandthepurposeforwhichthefinancialassetswereacquired.Managementdeterminestheclassificationatinitialrecognition.

(i) Financial assets at fair value through profit or loss

Financialassetsat fairvalue throughprofitor lossarefinancialassetsheld for trading.Afinancialasset isclassifiedinthiscategoryifitisacquiredorincurredprincipallyforthepurposeofsellingintheshortterm.Derivativesarealsocategorisedasheldfortradingunlesstheyaredesignatedashedges.


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19 FINANCIAL INSTRUMENTS (cont’d)

(a) Classification (cont’d)

(ii) Loans and receivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Theyarepresentedascurrentassets,exceptforthoseexpectedtoberealisedlaterthan12monthsafterthebalancesheetsdatewhicharepresentedasnon-currentassets.TheGroup’sloansandreceivablescomprise‘tradeandotherreceivables’(otherthanprepaymentsandadvancesforlandacquisitionandplantationdevelopmentexpenditure)and‘deposits,cashandbankbalances’inthebalancesheets.

(b) Recognition and initial measurement

Regularpurchasesandsalesoffinancialassetsare recognisedon the trade-date, thedateonwhich theGroupcommitstopurchaseorselltheasset.

Financialassetsareinitiallyrecognisedatfairvalueplustransactioncostsexceptforfinancialassetsatfairvaluethroughprofitorloss,whicharerecognisedatfairvalue.Transactioncostsforfinancialassetsatfairvaluethroughprofitorlossareexpensedinprofitorloss.

(c) Subsequent measurement – gains and losses

Financialassetsatfairvaluethroughprofitorlossaresubsequentlycarriedatfairvalue.Loansandreceivablesaresubsequentlycarriedatamortisedcostusingtheeffectiveinterestmethod.

Changesinthefairvaluesoffinancialassetsatfairvaluethroughprofitorloss,includingtheeffectsofcurrencytranslation,interestanddividendincome,arerecognisedinprofitorlossintheperiodinwhichthechangesarise.

(d) Subsequent measurement – impairment of financial assets

TheGroupassessesateachbalancesheetdatewhetherthereisobjectiveevidencethatafinancialassetorgroupoffinancialassetsisimpairedandrecognisesanallowanceforimpairmentwhensuchevidenceexists.Afinancialassetoragroupoffinancialassets is impairedandimpairmentis incurredonly ifthere isobjectiveevidenceofimpairmentasaresultofoneormoreeventsthatoccurredaftertheinitialrecognitionoftheasset(a‘lossevent’)andthatlossevent(orevents)hasanimpactontheestimatedfuturecashflowsofthefinancialassetorgroupoffinancialassetsthatcanbereliablyestimated.

If any suchevidenceexists, theamountof the loss ismeasuredas thedifferencebetween theasset’s carryingamountandthepresentvalueofestimatedfuturecashflows(excludingfuturecreditlossesthathavenotbeenincurred)discountedat thefinancialasset’soriginaleffective interest rate.Thecarryingamountof theasset isreducedandtheamountofthelossisrecognisedinprofitorloss.

Thecarryingamountofthefinancialassetsisreducedbytheimpairmentlossdirectlyforallfinancialassetswiththeexceptionoftradereceivables,wherethecarryingamountisreducedthroughtheuseofanallowanceaccount.

Loans and receivables

Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterintobankruptcy,anddefaultorsignificantdelayinpaymentsareobjectiveevidencethatthesefinancialassetsareimpaired.

Whenareceivableisuncollectible,itiswrittenoffagainsttherelatedallowanceaccount.Suchreceivablesarewrittenoffafterallthenecessaryprocedureshavebeencompletedandtheamountofthelosshasbeendetermined.

If‘loansandreceivables’havevariableinterestrates,thediscountrateformeasuringanyimpairmentisthecurrenteffectiveinterestratedeterminedunderthecontract.Asapracticalexpedient,theGroupmaymeasureimpairmentonthebasisofaninstrument’sfairvalueusinganobservablemarketprice.

If,inasubsequentperiod,theamountoftheimpairmentdecreasesandthedecreasecanberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised,thereversalofthepreviouslyrecognisedimpairmentisrecognisedinprofitorloss.

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19 FINANCIAL INSTRUMENTS (cont’d)

(e) Derecognition

FinancialassetsarederecognisedwhentherightstoreceivecashflowsfromtheinvestmentshaveexpiredorhavebeentransferredandtheGrouphastransferredsubstantiallyallrisksandrewardsofownership.

(f) Financial liabilities

TheGroupclassifies itsfinancial liabilitiesasotherfinancial liabilities.Theclassificationdependsonthenatureof the liability and the purpose for which the financial liabilities were incurred. Management determines theclassificationatinitialrecognition.

Other financial liabilities

OtherfinancialliabilitiesoftheGroupcomprise‘borrowings’and‘tradeandotherpayables’.(SeeNote28and29tothefinancialstatements)

Whenotherfinancial liabilitiesarerecognisedinitially,theyaremeasuredatfairvalueplusdirectlyattributabletransactioncosts.

Subsequent to initial recognition, other financial liabilities aremeasured at amortised cost using the effectiveinterest method. Gains and losses are recognised in the statement of comprehensive income when the otherfinancialliabilitiesarederecognised,andthroughtheamortisationprocess.

Financial liabilities are derecognised when the obligation specified in the contract is discharged, cancelled orexpired.

(g) Offsetting financial instruments

Financialassetsandliabilitiesareoffsetandthenetamountpresentedonthebalancesheetwhenthereisalegallyenforceablerighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,orrealisetheassetandsettletheliabilitysimultaneously.

(h) Derivative financial instruments

Derivativesareinitiallyrecognisedatfairvalueonthedateaderivativecontractisenteredintoandaresubsequentlyre-measuredattheirfairvalue.

(i) Fair value estimation

Thefairvalueofcrudepalmoil(“CPO”)pricingswapcontractsisbasedonthecurrentbidpriceforidenticalassetsinthemarketatthebalancesheetdate.

The carrying valuesoffinancial assets andfinancial liabilitieswithamaturityperiodof less thanone year areassumedtoapproximatetheirfairvalues.

20 TRADE AND OTHER PAYABLES

Tradeandotherpayablesareobligationstopayforgoodsorservicesthathavebeenacquiredintheordinarycourseofbusinessfromsuppliers.

Tradeandotherpayablesareinitiallyrecognisedatfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

Tradeandotherpayablesareclassifiedascurrentliabilitiesifpaymentisduewithinoneyear,orinthenormaloperatingcycleofthebusinessiflonger.Ifnot,theyarepresentedasnon-currentliabilities.


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21 PROVISIONS

Provisionsarerecognisedwhen:

• theGrouphasapresentlegalorconstructiveobligationasaresultofpastevents;

• itisprobablethatanoutflowofresourceswillberequiredtosettletheobligation;and

• areliableestimateoftheamountcanbemade.

Provisionsaremeasuredatthepresentvalueoftheexpenditureexpectedtoberequiredtosettletheobligationusingapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheobligation.Theincreaseintheprovisionduetopassageoftimeisrecognisedasfinancecost.

22 FINANCIAL GUARANTEE CONTRACTS

FinancialguaranteecontractsarecontractsthatrequiretheGrouporCompanytomakespecifiedpaymentstoreimbursetheholderforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendue,inaccordancewiththetermsofthedebtinstrument.

Financial guarantee contracts are recognised as financial liability at the time the guarantee is issued. The liabilityis initially measured at fair value and subsequently at the higher of the amount determined in accordance withFRS137“Provisions,contingentliabilitiesandcontingentassets”andtheamountinitiallyrecognisedlessaccumulativeamortisation,whereappropriate.

Thefairvalueofafinancialguaranteeisdeterminedasthepresentvalueofthedifferenceinnetcashflowsbetweenthecontractualpaymentsunderthedebtinstrumentandthepaymentsthatwouldberequiredwithouttheguarantee,ortheestimatedamountthatwouldbepayabletoathirdpartyforassumingtheobligations.

When financial guarantees in relation to loans or payables of subsidiaries are provided by the Company for nocompensation,thefairvaluesareaccountedforascontributionsandrecognisedaspartofthecostofinvestmentinsubsidiaries.

23 SEGMENTAL INFORMATION

Operatingsegmentsarereportedinamannerconsistentwiththeinternalreportingprovidedtothechiefoperatingdecision-maker (“CODM”). The Management Committee (“MC”), who is responsible for allocating resources andassessingperformanceoftheoperatingsegments,hasbeenidentifiedastheCODM.

Segmentrevenue,expenses,assetsandliabilitiesarethoseamountsresultingfromtheoperatingactivitiesofasegmentthataredirectlyattributabletothesegmentandtherelevantportionthatcanbeallocatedonareasonablebasistothesegment.

Segmentrevenue,expenses,assetsandliabilitiesaredeterminedbeforeintragroupbalancesandintragrouptransactionsareeliminatedaspartoftheconsolidationprocess.

The profit before tax for each operating segment is presented at net of adjustment for any relevant intersegmenttransactions.

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1 GENERAL INFORMATION

Theprincipal activities of theCompanyare the cultivationof oil palms, investmentholding, tradingof crudepalmoilandprovisionofmanagementservicestothesubsidiaries.TheprincipalactivitiesofthesubsidiariesarestatedinNote17tothefinancialstatements.Therehavebeennosignificantchangesinthenatureoftheprincipalactivitiesduringthefinancialyear.

TheCompanyisapubliclimitedliabilitycompany,incorporatedanddomiciledinMalaysia,andislistedontheMainMarketofBursaMalaysiaSecuritiesBerhad.TheregisteredofficeoftheCompanyislocatedatthe2ndFloor,WismaIJM,JalanYongShookLin,46050PetalingJaya,SelangorDarulEhsan.TheprincipalplaceofbusinessoftheCompanyislocatedatWismaIJMPlantations,Lot1,JalanBandarUtama,Batu6,JalanUtara,90000Sandakan,Sabah.

TheultimateholdingcompanyisIJMCorporationBerhad,acompanyincorporatedinMalaysiaandlistedontheMainMarketofBursaMalaysiaSecuritiesBerhad.

Thefinancialstatementswereauthorisedfor issuebytheBoardofDirectors inaccordancewitharesolutionoftheDirectorson26May2015.

2 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

EstimatesandjudgementsarecontinuallyevaluatedbytheDirectorsandarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will,by definition, rarely equal the related actual results.The estimates andassumptions thathave a significant risk ofcausing a material adjustment to the carrying amounts of assets and liabilities within the next financial year areoutlinedbelow.

(a) Deferred tax assets

TheGroupreviewsthecarryingamountsofdeferredtaxassetsattheendofeachreportingperiodandreducesthesetotheextentthatitisnolongerprobablethatsufficienttaxableincomewillbeavailabletoallowallorpartof the deferred tax assets to be utilised.TheGroup’s assessment on the recognition of deferred tax assets ondeductibletemporarydifferencesandunutilisedtaxlossesisbasedonthelevelandtimingofforecastedtaxableincome of the subsequent reporting periods. This forecast is based on the Group’s past results and futureexpectationsoffreshfruitsbunchesandcrudepalmoilpricesandyields,estateoperationalcosts,financecostaswellasforeignexchangedifferences.However,thereisnocertaintythattheGroupwillgeneratesufficienttaxableincometoallowallorpartofthedeferredtaxassetstobeutilisedasdisclosedinNote26.

(b) Plantation expenditure

Therearecertainparcelsoflanduserightswheretheremainingperiodsarelessthan25years.Theassumptionoffurtherextensionofthelanduserightsperiodstobegrantedonthoselandsinvolvejudgementonthefuturedecisionby the local authority and the explicit termsand conditions imposedon the land titles. Basedon themanagement’sassessmentoftheassumedextensionofthelanduserights,managementisoftheviewthatthereisnoimpairmentindicatoroftheplantationexpenditure.

Notes to the Financial Statementsforthefinancialyearended31March2015

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3 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group’s financial risk management policy seeks to ensure that adequate financial resources are availablefor the development of theGroup’s businesseswhilstmanaging its interest rate (both fair value and cash flow),foreigncurrencyexchange,commodityprice,liquidityandcreditrisks.TheBoardofDirectorshassetthepoliciestomanageeachofthefinancialrisksandreviewthemregularlythroughoutthefinancialyear.TheGroup’sfinancialriskmanagementpoliciesaresummarisedasfollows:

(a) Market risk

(i) Cash flow interest rate risk

Cashflowinterestrateriskistheriskthatthefuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketinterestrates.Fairvalueinterestrateriskistheriskthatthevalueofafinancialinstrumentwillfluctuateduetochangesinmarketinterestrates.AstheGrouphasnosignificantinterest-bearingfinancialassets, the Group’s income and operating cash flows are substantially independent of changes in marketinterest rates.TheGroup’s interest-bearingfinancialassetsaremainly short-term innatureandhavebeenmostlyplacedinfixeddeposits.

TheGroup’sinterestrateriskarisesprimarilyfrominterest-bearingborrowingsatfloatingrateswhichexposetheGrouptocashflowinterestraterisk.TheGroupmanagesitsinterestrateexposurebymonitoringcloselyinterest ratemovementsandmaintainingthealternative toswap itsfloating rateborrowingstofixedrateborrowings.

IftheGroup’sborrowingsatvariableratesonwhicheffectivehedgeshavenotbeenenteredintochangesbythefollowingbasispoints,withallothervariablesbeingheldconstant,theeffectsonprofitbeforetaxwouldbeasfollows:

THEGROUP 2015 2014 RM’000 RM’000

Borrowingsbasedoncostoffunds(“COF”):–increaseby50basispoints – (245)–decreaseby50basispoints – 245

Borrowingsbasedonbenchmarkprimelendingrate(“LIBOR”):–increaseby50basispoints (3,703) (2,812)–decreaseby50basispoints 3,703 2,812

(ii) Foreign currency exchange risk

TheGroupmaintainsahedge,wheneverpossible,byborrowinginthecurrencyofthecountryinwhichtheinvestmentislocatedorbyborrowingincurrenciesthatmatchthefuturerevenuestreamtobegeneratedfromitsinvestments.Foreignexchangeexposuresintransactionalcurrenciesotherthanfunctionalcurrenciesoftheoperatingentitiesarekepttoanacceptablelevel.

TheGroupprincipallykeepscashandbankbalancesintheirrespectivefunctionalcurrenciesexceptforcertainfixeddepositswhichwerekeptincurrenciesotherthantheirrespectivefunctionalcurrencies(i.e.USDollarfixeddeposit).

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3 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont’d)

(a) Market risk (cont’d)

(ii) Foreign currency exchange risk (cont’d)

EntitiesintheGroupprimarilytransactintheirrespectivefunctionalcurrenciesexceptforcertainborrowingswhich were denominated in currencies other than their respective functional currencies (i.e. US Dollarborrowings).

CurrencyrisksasdefinedbyFRS7ariseonaccountofmonetaryassetsandliabilitiesbeingdenominatedinacurrencythatisnotthefunctionalcurrency.Asatbalancesheetdate,theGroup’sRinggitMalaysia(“RM”)andIndonesianRupiah(“IDR”)functionalcurrencyentitieshadUSDollar(“USD”)denominatednetmonetaryliabilities.TheeffectstotheGroup’sprofitbeforetaxiftheUSDhadstrengthened/weakenedby5%againstIDRandRMareasfollows:

GROUP 2015 2014 RM’000 RM’000

NetmonetaryliabilitiesdenominatedinUSD 557,057 611,140

EffectstoprofitbeforetaxiftheUSDhadstrengthened/weakenedagainstIDR:–strengthened (27,853) (28,111)–weakened 27,853 28,111

EffectstoprofitbeforetaxiftheUSDhadstrengthened/weakenedagainstRM:–strengthened – (2,446)–weakened – 2,446

As at balance sheet dates, there are no other significant monetary balances held by the Group and theCompanythataredenominatedinnon-functionalcurrency.

(iii) Commodity price risk

TheGroupisexposedtothepricevolatilityriskduetofluctuationinthepalmproductscommoditymarket.Tomanageandmitigatetheriskonpricevolatility,theGroupmonitorsthefluctuationofcrudepalmoilpriceonadailybasisandentersintophysicalforwardsellingcommoditycontractsorcrudepalmoilpricingswaparrangementsinaccordancewithguidelinessetbytheBoardofDirectors.

Ifaveragepricesforcrudepalmoilchangeby10%withallothervariablesbeingheldconstant,theeffectsonprofitbeforetaxwouldhavebeen:

GROUP 2015 2014 RM’000 RM’000

Effectstoprofitbeforetaxifcrudepalmoilprice–increasedby10% 26,101 26,815–decreasedby10% (26,101) (26,815)

Notes to the Financial Statements(cont’d)

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(a) Market risk (cont’d)

(iv) Crude palm oil swap contracts

Tomanageandmitigatetheriskonpricevolatilityduetofluctuationinthepalmproductscommoditymarket,theGroupenteredintocrudepalmoil(“CPO”)swapcontractswithreputablebanksinMalaysia,whichcanbenetsettledduringtheperiodofthecontracts.

Ifaveragepricesforcrudepalmoilchangeby10%withallothervariablesbeingheldconstant,theeffectsonprofitbeforetaxwouldhavebeen:

GROUP 2015 2014 RM’000 RM’000

Effectstoprofitbeforetaxifcrudepalmoilprice–increasedby10% (2,902) (4,733)–decreasedby10% 2,902 4,733

(b) Credit risk

CreditriskreferstotheriskthatacounterpartywilldefaultonitscontractualobligationsresultinginfinanciallosstotheGroup.Creditriskarisesfromdeposits,cashandbankbalanceswithfinancialinstitutions,derivativefinancialinstruments,aswellascreditexposurestocustomers,includingoutstandingreceivables.

TheGroup’screditriskisprimarilyattributabletotradereceivables,advancesforplasmaschemesandadvancestonon-controllinginterests.Fortradereceivables,theGrouptradesonlywithcreditworthythirdparties.ItistheGroup’spolicythatallcustomerswhowishtotradeoncredittermsaresubjecttocreditverificationprocedures.Theadvancesforplasmaschemesarerecoverableeitherthroughbank loansordirectrepaymentsfromplasmaschemes when these plasma areas mature. For the advances to non-controlling interests, the non-controllinginterestshavepledgedthesharesofthesubsidiariesasasecuritytotheGroup.Inaddition,receivablebalancesaremonitoredonanongoingbasis.TheGroup’sexposuretobaddebtsisnotsignificant.

TheGroup’sconcentrationofcreditriskiswithinthetradereceivables.Tomitigatethisrisk,theGrouponlytradeswiththeselectedpartieswhoareknowntobecreditworthy.TheCompany’screditriskiswithinamountsduefromsubsidiariesandisconsideredtobelow.

The credit risk of the Group’s other financial assets, which comprise cash and cash equivalents, arises fromdefaultof thecounterparty,withamaximumexposureequal to thecarryingamountof thesefinancialassets.However,theGroupadoptsthepolicyofdealingonlywithcounterpartiesofhighcredibility(i.e.banksandfinancialinstitutions).

The maximum exposure to credit risk for trade and other receivables is disclosed in Note 19 to the financialstatements.

(i) Financial assets that are neither past due nor impaired

Deposits, cash and bank balances that are neither past due nor impaired are mainly deposits with bankswithhighcredit-ratings.TradeandotherreceivablesthatareneitherpastduenorimpairedaresubstantiallycompanieswithnohistoryofdefaultwiththeGroup.

(ii) Financial assets that are past due but not impaired

ThereisnootherclassoffinancialassetsthatispastduebutnotimpairedexceptforcertaintradeandotherreceivablesasdisclosedinNote19tothefinancialstatements.

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(c) Liquidity risk

The Group actively manages its debt maturity profile, operating cash flows and the availability of funding soas toensurethatall refinancing, repaymentandfundingneedsaremet.Aspartof itsoverallprudent liquiditymanagement,theGroupmaintainssufficientlevelsofcashorcashconvertibleinvestmentstomeetitsworkingcapitalrequirements.Inaddition,theGroupstrivestomaintainavailablebankingfacilitiesofareasonableleveltoitsoverallfinancialposition.

ThetablebelowanalysesthefinancialliabilitiesoftheGroupandtheCompanyintorelevantmaturitygroupingsbased on the remaining period from the balance sheets date to the contractual maturity dates. The amountsdisclosedinthetablearethecontractualundiscountedcashflows.

LESSTHAN BETWEEN1 OVER 1YEAR AND5YEARS 5YEARS TOTAL

GROUP RM’000 RM’000 RM’000 RM’000

At 31 March 2015Shorttermadvancefacility 74,644 – – 74,644Termloans 146,583 515,982 – 662,565Tradeandotherpayables 89,950 – – 89,950Financialguaranteecontract – 5,865 16,109 21,974Depositswithalicensedbank(Note34(a)&(b)) 4,018 – – 4,018

315,195 521,847 16,109 853,151

At 31 March 2014Shorttermadvancefacility 116,130 – – 116,130Termloans 30,754 481,541 – 512,295Tradeandotherpayables 68,794 – – 68,794Financialguaranteecontract – 2,423 11,840 14,263

215,678 483,964 11,840 711,482

A subsidiaryof theCompanyhasprovided corporateguarantees for abank loanamounting toRM40.3million(2014:RM32.4million)toacooperative in Indonesia inrespectofplasmadevelopment.No loss isexpectedtoarise from these corporate guarantees. As at 31March 2015, RM22.0million (2014: RM14.3million) has beendrawndown.PTSinergiAgroIndustri,asubsidiaryoftheCompanyhaspledgedrestricteddepositsasdisclosedinNote34(a)tothefinancialstatementsassecurityinrespectofthesaidcorporateguaranteefacilityamountingtoRM1.9million.


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(c) Liquidity risk (cont’d)

LESSTHAN BETWEEN1 OVER 1YEAR AND5YEARS 5YEARS TOTAL

COMPANY RM’000 RM’000 RM’000 RM’000

At 31 March 2015Amountsduetosubsidiaries 44,719 – – 44,719Tradeandotherpayables 26,681 – – 26,681Financialguaranteecontract 146,583 515,982 – 662,565

217,983 515,982 – 733,965

At 31 March 2014Amountsduetosubsidiaries 33,498 – – 33,498Tradeandotherpayables 15,042 – – 15,042Financialguaranteecontract 30,754 481,541 – 512,295

79,294 481,541 – 560,835

TheCompanyhasguaranteedthetermloansforcertainsubsidiariesunderthetermsofthefinancialguaranteecontracts.Underthetermsofthefinancialguaranteecontracts,theCompanywillfulfilalltherepaymentobligationsonbehalfoftheguaranteedsubsidiariestothelendersuponfailureofthesubsidiariestomakepaymentswhentheybecomedue.Theriskofdefaultontherepaymentobligationsbythesubsidiariesisminimal.

ThecredittermsoffinancialliabilitiesaredisclosedinNotes28and29tothefinancialstatements.

(d) Capital risk

TheGroup considered equity capital andnet debt as its primarydefinitionof capital,which is further definedbelow.

TheGroup’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sabilitytocontinueasagoingconcernandtomaintainanoptimalcapitalstructuresoastomaximiseshareholdervalue.Inordertomaintainorachieveanoptimalcapitalstructure,theGroupmayadjustthedividendpayment,returncapitaltoshareholders,issuenewshares,buybackissuedshares,obtainnewfinancingfacilitiesordisposeassetstoreduceborrowings.

CertainoverseassubsidiariesoftheGrouparesubjecttoexternallyimposedcapitalrequirementsandforwhichtheGrouphascompliedwiththoserequirementsasdisclosedinNote28tothefinancialstatements.

ManagementmonitorscapitalbasedontheGroup’sgearingratio.Thegearingratioiscalculatedasnetdebtdividedbyequitycapital.Netdebtiscalculatedastotalborrowings(excludetradeandotherpayables)lesscashandcashequivalents.EquitycapitalisequivalenttocapitalandreservesattributabletoownersoftheCompany.TheGroupandtheCompanymonitorgearingratiosbasedonthetermsoftherespectiveloanagreement.Thegearingratioasat31March2015was21.4%(2014:19.4%).

(e) Fair value measurements

Thefollowingtablepresentsassetsandliabilitiesmeasuredatfairvalueandclassifiedbylevelofthefollowingfairvaluemeasurementhierarchy:

(a) quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities(Level1);

(b) inputsother thanquotedprices includedwithinLevel1 thatareobservable for theassetor liability,eitherdirectlyorindirectly(Level2);and

(c) inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs)(Level3).

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(e) Fair value measurements (cont’d)

LEVEL1 LEVEL2 LEVEL3 TOTAL RM’000 RM’000 RM’000 RM’000

2015The Group

AssetsDerivativefinancialInstruments(Note20) – 382 – 382

Totalassets – 382 – 382

2014The Group

AssetsDerivativefinancialInstruments(Note20) – 627 – 627

Totalassets – 627 – 627

4 REVENUE

GROUP COMPANY 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000

Saleof:–Crudepalmoil 547,289 546,970 – ––Crudepalmkerneloil 73,444 67,319 – ––Freshfruitbunches 31,121 16,113 105,097 106,585–Palmkernelexpellers 7,510 8,889 – ––Palmkernelandotherby-products 7,371 6,365 – ––Oilpalmseeds 792 1,107 792 1,107Plantationadvisoryfee 139 218 139 218Managementfeesfromsubsidiaries – – 9,566 9,332Dividendincomefromsubsidiaries – – 50,000 70,980

667,666 646,981 165,594 188,222


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5 COST OF SALES


Consistsof:–Plantingandoperationalcosts 207,146 192,050 47,807 52,882–Rawmaterials 165,748 184,286 – ––Amortisationoflanduserightsanddepreciation

ofproperty,plantandequipment 46,627 40,577 8,976 8,654–Replantingcost 8,904 8,352 8,904 8,352–Servicesrendered 14 99 7,737 7,508

428,439 425,364 73,424 77,396

6 OTHER INCOME AND NET GAINS/(LOSSES)


(a) OtherincomeandexpensesInterestincome 8,592 7,942 3,527 716Rentalincome 2,810 2,025 219 211Insuranceclaims 128 125 – 125Gainondisposalofproperty,plantandequipment 62 59 62 48Miscellaneousotherincome 1,961 1,570 1,453 964Propertyplantandequipmentscrapped (277) (44) (15) (11)Reversalofimpairmentofinvestments

insubsidiaries,(net) – – – (2,007)

13,276 11,677 5,246 46

(b) Other(losses)/gains–netFinancialassetsatfairvaluethroughprofitorloss:–Fairvaluegains/(losses)oncrudepalmoil

pricingswaps 6,099 (621) – –

Financialliabilitiesatamortisationcost:–Amortisationoffinancialguarantee – – 484 –

Forexexchange:–Realisedforeignexchangegains – 704 – ––Realisedforeignexchangelosses (1,183) – – ––Unrealisedforeignexchangelosses (7,709) – – ––Unrealisedforeignexchangegains – 16,827 – –

(8,892) 17,531 – –

10,483 28,587 5,730 46

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7 FINANCE COSTS


Interestexpenseon:–Termloans 10,318 8,760 – ––Shorttermadvancefacility 819 1,230 – –Foreignexchangedifferencesonborrowings 52,945 62,621 – –

64,082 72,611 – –

Less:Interestcapitalisedinplantationexpenditure(Note16(b)) (2,387) (4,363) – –

Less:Foreignexchangedifferencescapitalisedinplantationexpenditure(Note16(b)) (10,475) (24,248) – –

Totalfinancecostscapitalised (12,862) (28,611) – –

Recognisedinstatementofcomprehensiveincome 51,220 44,000 – –

8 PROFIT BEFORE TAX

(a) Thefollowingamountshavebeencharged/(credited)inarrivingatprofitbeforetax:


Employeebenefitsexpense(Note9) 96,813 84,893 32,662 34,882Non-ExecutiveDirectors’remuneration(Note10) 630 630 630 630Auditors’remuneration(Note8(b))–Currentyear 467 410 145 130–Underaccrualinrespectofprioryear 6 31 2 25Amortisationoflanduserights(Note15) 2,591 1,884 759 706Depreciationofproperty,plantand

equipment(Note14) 45,113 39,645 8,217 7,948Property,plantandequipmentscrapped 277 44 15 11Rentalofpremises 109 99 109 99Realisedforeignexchangegains (418) (704) – –Realisedforeignexchangelosses 1,601 – – –Unrealisedforeignexchangelosses 31,668 11,718 – –Unrealisedforeignexchangegains (23,959) (28,545) – –Reversalofimpairmentofinvestmentinsubsidiary – – – (11,000)Impairmentofinvestmentinsubsidiary – – – 13,007

(b) Auditors’remuneration–statutoryaudit


PricewaterhouseCoopersMalaysia 245 248 147 155Otherauditorsofsubsidiaries 228 193 – –

473 441 147 155


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9 EMPLOYEE BENEFITS EXPENSE


Salaries,wagesandbonus 109,918 99,047 27,436 29,326Contributionstodefinedcontributionplan 5,563 4,132 2,265 2,206Socialsecuritycontributions 962 1,090 126 123Shareoptionexpense 4,524 3,336 2,997 3,336Definedbenefitexpense(Note27) 499 169 – –

121,466 107,774 32,824 34,991Less:Expensescapitalisedinplantationexpenditure

(Note16(b)) (24,653) (22,881) (162) (109)

Recognisedinstatementofcomprehensiveincome(Note8) 96,813 84,893 32,662 34,882

Included in employee benefits expense of the Group and of the Company are Executive Directors’ remunerationamounting to RM2,696,000 (2014: RM2,213,000) and RM2,696,000 (2014: RM2,213,000) respectively as furtherdisclosedinNote10.

10 DIRECTORS’ REMUNERATION


Executive:Salariesandotheremoluments 1,790 1,571 1,790 1,571Contributionstodefinedcontributionplan 269 236 269 236Shareoptionexpense 637 406 637 406

2,696 2,213 2,696 2,213

Non-Executive:Fees(Note8) 630 630 630 630Otheremoluments 43 39 43 39

673 669 673 669

TotalDirectors’remuneration 3,369 2,882 3,369 2,882Benefits-in-kind 90 59 90 59

TotalDirectors’remunerationincludingbenefits-in-kind 3,459 2,941 3,459 2,941

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11 INCOME TAX EXPENSE


Currenttax:–Currentyear 26,795 27,420 9,346 8,051–(Over)/underaccrualinprioryears (169) (260) (2) 84

26,626 27,160 9,344 8,135

Deferredtax(Note26):–Relatingto(reversal)/originationoftemporarydifferences (19,516) (1,168) 49 (161)

Totalincometaxexpense 7,110 25,992 9,393 7,974

AreconciliationofincometaxexpenseapplicabletoprofitbeforetaxatthestatutoryincometaxratetoincometaxexpenseattheeffectiveincometaxrateoftheGroupandoftheCompanyisasfollows:


Profitbeforetax 89,407 109,083 83,499 97,622

TaxcalculatedattheMalaysiantaxrateof25%(2014:25%) 22,352 27,271 20,875 24,406Taxeffectsof:–Incomenotsubjecttotax (23,743) (5,763) (12,864) (17,883)–Utilisationofpreviouslyunrecognised

reinvestmentallowance – (351) – ––Utilisationofpreviouslyunrecognisedinvestment

taxallowance – (2,405) – ––Deferredtaxnotrecognised 5,501 7,566 – ––Changeintaxrate – (5,336) – (1,357)–Expensesnotdeductiblefortaxpurposes 3,169 5,270 1,384 2,724–(Over)/underaccrualofcurrenttaxinprioryears (169) (260) (2) 84

Incometaxexpense 7,110 25,992 9,393 7,974

12 EARNINGS PER SHARE

(a) Basic earnings per share

ThebasicearningspershareforthefinancialyeariscalculatedbydividingtheGroup’snetprofitattributabletoownersoftheCompanyforthefinancialyearbytheweightedaveragenumberofordinarysharesinissueduringthefinancialyear.TheweightedaveragenumberofordinarysharesinissueisderivedaftertakingintoaccounttheexerciseofWarrants2009/2014.

GROUP 2015 2014

NetprofitattributabletoownersoftheCompany(RM’000) 90,422 88,640

Weightedaveragenumberofordinarysharesinissue(‘000) 842,059 802,006

Basicearningspershare(sen) 10.74 11.05

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12 EARNINGS PER SHARE (cont’d)

(b) Diluted earnings per share

ThedilutedearningspershareoftheGroupiscalculatedbydividingtheGroup’snetprofitattributabletoownersoftheCompanyforthefinancialyearbytheweightedaveragenumberofordinarysharesinissue,adjustedtoassumetheconversionofalldilutivepotentialordinaryshares,i.e.Warrants2009/2014.Acalculationisdonetodeterminethenumberofsharesthatcouldhavebeenacquiredatmarketprice(determinedastheweightedaverageannualshare price of the Company’s shares) based on the monetary value of the subscription rights attached to theoutstandingWarrants2009/2014.

GROUP 2015 2014

NetprofitattributabletoownersoftheCompany(RM’000) 90,422 88,640

Weightedaveragenumberofordinarysharesinissue(’000) 842,059 802,006AdjustmentsforWarrants2009/2014(’000) – 16,067

Weightedaveragenumberofordinarysharesfordilutedearnings(’000) 842,059 818,073

Dilutedearningspershare(sen) 10.74 10.84

NoadjustmentwasmadeduringthefinancialyearduetotheexpiryoftheWarrants2009/2014.

13 DIVIDENDS

GROUPANDCOMPANY 2015 2014 GROSS GROSS DIVIDEND AMOUNTOF DIVIDEND AMOUNTOF PERSHARE DIVIDEND PERSHARE DIVIDEND SEN RM’000 SEN RM’000

Inrespectoffinancialyearended31March2014:–Singletierinterimdividendon

814,200,431ordinaryshares 7 56,994 – –

Inrespectoffinancialyearended31March2013:–Singletierinterimdividendon

801,731,836ordinaryshares – – 7 56,121

7 56,994 7 56,121

On26May2015,theDirectorsdeclaredasingletierinterimdividendamountingto6senpershareinrespectofthefinancialyearended31March2015.Thesingletierinterimdividendwillbepaidon7July2015toeverymemberwhoisentitledtoreceivethedividendasat5.00p.m.on25June2015.Theinterimdividendhasnotbeenrecognisedinthestatementofchangesinequityasitwasdeclaredsubsequenttothefinancialyearend.

The Directors do not recommend the payment of any final dividend for the financial year ended 31 March 2015(2014:Nil).

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14 PROPERTY, PLANT AND EQUIPMENT

PLANT, OFFICE, PLANTATION MACHINERY, EQUIPMENT, CAPITAL LEASEHOLD INFRA- EQUIPMENT FURNITURE WORK-IN- LAND STRUCTURE BUILDINGS ANDVEHICLES ANDFITTINGS PROGRESS TOTALGROUP NOTE RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 31 March 2015

Cost or ValuationAt1April2014

Atcost 56,913 307,663 207,739 370,115 23,500 59,146 1,025,076Atvaluation 30,141 – 4,802 3,668 – – 38,611

87,054 307,663 212,541 373,783 23,500 59,146 1,063,687Exchangedifferences – (2,884) (2,076) (2,333) (154) (1,321) (8,768)Additions – 40,797 2,220 15,477 3,524 75,876 137,894Disposals – – – (180) – – (180)Scrapped – – (307) (727) (3,208) – (4,242)Reclassifications – 2,080 15,978 1,618 4 (19,680) –

At 31 March 2015 87,054 347,656 228,356 387,638 23,666 114,021 1,188,391

Representing:Atcost 56,913 347,656 223,554 383,970 23,666 114,021 1,149,780Atvaluation 30,141 – 4,802 3,668 – – 38,611

At 31 March 2015 87,054 347,656 228,356 387,638 23,666 114,021 1,188,391

Accumulated depreciationAt1April2014 11,045 33,952 71,628 215,011 16,561 – 348,197Exchangedifferences – (456) (263) (936) (73) – (1,728)Depreciationchargefor

thefinancialyear 869 10,737 12,297 28,618 1,863 – 54,384

Recognisedinstatementofcomprehensiveincome 8 868 6,297 11,423 24,998 1,527 – 45,113

Capitalisedinplantationexpenditure 16(b) 1 4,440 874 3,620 336 – 9,271

Disposals – – – (172) – – (172)Scrapped – – (244) (526) (3,195) – (3,965)

At 31 March 2015 11,914 44,233 83,418 241,995 15,156 – 396,716

Net carrying amountAtcost 48,793 303,423 144,865 145,623 8,510 114,021 765,235Atvaluation 26,347 – 73 20 – – 26,440

At 31 March 2015 75,140 303,423 144,938 145,643 8,510 114,021 791,675


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14 PROPERTY, PLANT AND EQUIPMENT (cont’d)

PLANT, OFFICE, PLANTATION MACHINERY, EQUIPMENT, CAPITAL LEASEHOLD INFRA- EQUIPMENT FURNITURE WORK-IN- LAND STRUCTURE BUILDINGS ANDVEHICLES ANDFITTINGS PROGRESS TOTALGROUP NOTE RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 31 March 2014


Atcost 56,913 288,338 167,183 362,056 21,864 93,673 990,027Atvaluation 30,141 – 4,802 3,668 – – 38,611

87,054 288,338 171,985 365,724 21,864 93,673 1,028,638Exchangedifferences – (11,696) (4,971) (7,535) (422) (8,299) (32,923)Additions – 25,579 894 12,033 2,174 40,823 81,503Disposals – – – (483) (19) – (502)Scrapped – – (942) (451) (636) – (2,029)Writtenoff – – – (11,000) – – (11,000)Reclassifications – 5,442 45,575 15,495 539 (67,051) –

At 31 March 2014 87,054 307,663 212,541 373,783 23,500 59,146 1,063,687

Representing:Atcost 56,913 307,663 207,739 370,115 23,500 59,146 1,025,076Atvaluation 30,141 – 4,802 3,668 – – 38,611

At 31 March 2014 87,054 307,663 212,541 373,783 23,500 59,146 1,063,687

Accumulated depreciationAt1April2013 10,176 24,566 61,752 190,958 15,761 – 303,213Exchangedifferences – (425) (281) (1,502) (125) – (2,333)Depreciationchargefor

thefinancialyear 869 9,811 11,095 26,470 1,558 – 49,803

Recognisedinstatementofcomprehensiveincome 8 868 4,587 10,330 22,622 1,238 – 39,645

Capitalisedinplantationexpenditure 16(b) 1 5,224 765 3,848 320 – 10,158

Disposals – – – (483) (18) – (501)Scrapped – – (938) (432) (615) – (1,985)

At 31 March 2014 11,045 33,952 71,628 215,011 16,561 – 348,197

Accumulated impairmentAt1April2013 – – – 11,000 – – 11,000Writtenoff – – – (11,000) – – (11,000)

At 31 March 2014 – – – – – – –

Net carrying amountAtcost 49,403 273,711 140,731 158,729 6,939 59,146 688,659Atvaluation 26,606 – 182 43 – – 26,831

At 31 March 2014 76,009 273,711 140,913 158,772 6,939 59,146 715,490

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PLANT, OFFICE, PLANTATION MACHINERY, EQUIPMENT, CAPITAL LEASEHOLD INFRA- EQUIPMENT FURNITURE WORK-IN- LAND STRUCTURE BUILDINGS ANDVEHICLES ANDFITTINGS PROGRESS TOTALCOMPANY NOTE RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 31 March 2015


Atcost 48,188 59,190 59,467 15,805 11,683 1,566 195,899Atvaluation 4,521 – – – – – 4,521

52,709 59,190 59,467 15,805 11,683 1,566 200,420Additions – 1,081 841 1,743 1,267 5,500 10,432Disposals – – – (284) (14) – (298)Scrapped – – (59) (315) (52) – (426)Reclassifications – 37 4,057 48 – (4,142) –

At 31 March 2015 52,709 60,308 64,306 16,997 12,884 2,924 210,128

Representing:Atcost 48,188 60,308 64,306 16,997 12,884 2,924 205,607Atvaluation 4,521 – – – – – 4,521

At 31 March 2015 52,709 60,308 64,306 16,997 12,884 2,924 210,128

Accumulated depreciationAt1April2014 3,229 11,073 32,535 9,590 10,378 – 66,805Depreciationchargefor

thefinancialyear 436 1,767 3,928 1,646 495 – 8,272

Recognisedinstatementofcomprehensiveincome 8 434 1,758 3,895 1,637 493 – 8,217

Capitalisedinplantationexpenditure 16(b) 2 9 33 9 2 – 55

Disposals – – – (234) (9) – (243)Scrapped – – (50) (314) (47) – (411)

At 31 March 2015 3,665 12,840 36,413 10,688 10,817 – 74,423

Net carrying amountAtcost 45,264 47,468 27,893 6,309 2,067 2,924 131,925Atvaluation 3,780 – – – – – 3,780

At 31 March 2015 49,044 47,468 27,893 6,309 2,067 2,924 135,705


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PLANT, OFFICE, PLANTATION MACHINERY, EQUIPMENT, CAPITAL LEASEHOLD INFRA- EQUIPMENT FURNITURE WORK-IN- LAND STRUCTURE BUILDINGS ANDVEHICLES ANDFITTINGS PROGRESS TOTALCOMPANY NOTE RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 31 March 2014

Cost or valuationAt1April2013

Atcost 46,924 58,800 56,845 15,762 11,937 1,453 191,721Atvaluation 4,521 – – – – – 4,521

51,445 58,800 56,845 15,762 11,937 1,453 196,242Additions 1,264 390 203 1,286 169 3,029 6,341Disposals – – – (1,225) (38) – (1,263)Scrapped – – (441) (74) (385) – (900)Reclassifications – – 2,860 56 – (2,916) –

At 31 March 2014 52,709 59,190 59,467 15,805 11,683 1,566 200,420

Representing:Atcost 48,188 59,190 59,467 15,805 11,683 1,566 195,899Atvaluation 4,521 – – – – – 4,521

At 31 March 2014 52,709 59,190 59,467 15,805 11,683 1,566 200,420

Accumulated depreciationAt1April2013 2,805 9,376 29,065 9,041 10,332 – 60,619Depreciationchargefor

thefinancialyear 424 1,697 3,911 1,524 455 – 8,011

Recognisedinstatementofcomprehensiveincome 8 422 1,685 3,873 1,515 453 – 7,948

Capitalisedinplantationexpenditure 16(b) 2 12 38 9 2 – 63

Disposals – – – (905) (31) – (936)Scrapped – – (441) (70) (378) – (889)

At 31 March 2014 3,229 11,073 32,535 9,590 10,378 – 66,805

Net carrying amountAtcost 45,648 48,117 26,932 6,215 1,305 1,566 129,783Atvaluation 3,832 – – – – – 3,832

At 31 March 2014 49,480 48,117 26,932 6,215 1,305 1,566 133,615

Property,plantandequipmentoftheGroupandoftheCompanyincludeleaseholdland,buildingsandplantwhichwere last revalued in 1997 based on an open market value basis by firms of independent professional valuers.The Directors have applied the transitional provisions of International Accounting Standards (“IAS”) 16 “Property,plantandequipment”,whichhasbeenadoptedby theMASB,whichallows theseassets tobe statedat their lastrevaluedamountslessaccumulateddepreciation.Accordingly,thesevaluationshavenotbeenupdated.

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Hadtherevaluedproperty,plantandequipmentbeencarriedatthehistoricalcostmodel,thecarryingamountswouldhavebeenasfollows:


Leaseholdland 19,356 19,519 4,263 4,321Buildings 65 80 – –Plant 17 36 – –

19,438 19,635 4,263 4,321

15 LAND USE RIGHTS


CostAt1April2014/2013 126,682 130,750 24,172 23,722Additions 26,935 1,771 6,492 450Exchangedifferences (1,704) (5,839) – –

At 31 March 151,913 126,682 30,664 24,172

Accumulated amortisationAt1April2014/2013 20,404 16,564 5,649 4,941Exchangedifferences (227) (430) – –Amortisationforthefinancialyear 4,005 4,270 760 708

At 31 March 24,182 20,404 6,409 5,649

Net carrying amountAt 31 March 127,731 106,278 24,255 18,523

TheGroup’slanduserightswithacarryingvalueofRM39.3million(2014:RM31.3million)arestillintheprocessofbeingtransferredtotheGroup.

Theamortisationforthefinancialyearcomprises:


Recognisedinstatementofcomprehensiveincome(Note8) 2,591 1,884 759 706

Capitalisedinplantationexpenditure(Note16(b)) 1,414 2,386 1 2

4,005 4,270 760 708


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16 PLANTATION EXPENDITURE


Cost or valuationAt1April2014/2013

Atcost 701,238 619,629 234,058 233,433Atvaluation 168,733 168,733 19,898 19,898

869,971 788,362 253,956 253,331Exchangedifferences (11,005) (33,533) – –Additions 138,462 115,142 635 625

At31March 997,428 869,971 254,591 253,956

Representing:Atcost 828,695 701,238 234,693 234,058Atvaluation 168,733 168,733 19,898 19,898

997,428 869,971 254,591 253,956

(a) CertainplantationexpenditureoftheCompanyandcertainsubsidiarieswerelastrevaluedin1997basedonanopenmarketvaluebasisbyfirmsofindependentprofessionalvaluers.

Had the revalued plantation expenditure of the Group and of the Company been carried under the costmodel, the carrying amount would have been RM64,117,000 (2014: RM64,117,000) and RM12,864,000(2014:RM12,864,000)respectively.

(b) Plantationexpenditurecapitalisedduringthefinancialyearincludethefollowing:


Cash itemsEmployeebenefitsexpense(Note9) 24,653 22,881 162 109Retirementbenefits(Note27) 365 258 – –Paymentstocontractorsandsuppliers 89,897 50,848 417 451Financecosts(Note7) 2,387 4,363 – –

117,302 78,350 579 560

Non cash itemsAmortisationoflanduserights(Note15) 1,414 2,386 1 2Depreciationofproperty,plantand

equipment(Note14) 9,271 10,158 55 63Financecosts(Note7) 10,475 24,248 – –

21,160 36,792 56 65

Additions 138,462 115,142 635 625

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17 INTERESTS IN SUBSIDIARIES

COMPANY 2015 2014 RM’000 RM’000

Investmentsinsubsidiaries,atcostAt1April2014/2013–UnquotedsharesinMalaysia 849,308 755,308–UnquotedsharesoutsideMalaysia * *

849,308 755,308Add:Acquisitionofsharesinsubsidiaries – 150,000Less:Redemptionofconvertiblecumulativeredeemablepreferencesharesinsubsidiaries – (56,000)

At31March–UnquotedsharesinMalaysia 849,308 849,308–UnquotedsharesoutsideMalaysia * *

Less:Accumulatedimpairment–UnquotedsharesinMalaysia (74,927) (74,927)

774,381 774,381Amountsduefromsubsidiaries 194,688 –Financialguaranteeextendedtosubsidiaries 17,683 16,541

986,752 790,922

* BelowRM1,000

TheamountsduefromsubsidiariesweredenominatedinRinggitMalaysia,unsecured,interestfreeandhadnofixedtermsofrepayment.Theamountsduefromsubsidiarieswhichwereclassifiedasnon-currentwereconsideredaspartofthenetinvestmentinsubsidiaries.

In the previous financial year, an impairment assessment was performed for an investment in a subsidiary usingvalue-in-usecalculations.Thesecalculationsusedpost-taxcashflowprojectionsbasedonfinancialbudgetspreparedbymanagementatapost-taxdiscountrateof12.4%.Asaresult,theimpairmentofRM11,000,000hadbeenreversedasthesubsidiaryisexpectedtobeprofitableinfutureyears.

In thepreviousfinancial year, an impairmenton the investment cost amounting toRM13,007,000wasmadeonadormantsubsidiaryasa resultof thecarryingamountof the investmentexceeding the recoverableamountof thedormantsubsidiary.


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17 INTERESTS IN SUBSIDIARIES (cont’d)

(a) Detailsofsubsidiariesareasfollows:

COUNTRYOF EFFECTIVENAMEOFSUBSIDIARIES INCORPORATION PRINCIPALACTIVITIES EQUITYINTEREST 2015 2014 % %

Held by the Company:

AkrabPerkasaSdn.Bhd. Malaysia Dormant 100 100

BerakanMajuSdn.Bhd. Malaysia Cultivationofoilpalms 100 100

DesaTalisaiSdn.Bhd. Malaysia Investmentholding 100 100

DesaTalisaiPalmOilMillSdn.Bhd. Malaysia Dormant 100 100

DynasiveEnterpriseSdn.Bhd. Malaysia Investmentholding 100 100

ExcellentChallenger(M)Sdn.Bhd. Malaysia Cultivationofoilpalms 100 100

GunariaSdn.Bhd. Malaysia Investmentholding 100 100

IJMBiofuelSdn.Bhd. Malaysia Dormant 100 100

IJMEdibleOilsSdn.Bhd. Malaysia Palmoilandkernelmilling 100 100

MinatTeguhSdn.Bhd. Malaysia Investmentholding 100 100

RakananJayaSdn.Bhd. Malaysia Cultivationofoilpalms 100 100

RatusSempurnaSdn.Bhd. Malaysia Propertyholding 100 100

SabangMillsSdn.Bhd. Malaysia Dormant 100 100

SijasPlantationsSdn.Bhd. Malaysia Dormant 100 100

IJMPInvestments(M)Limited* Republicof Undermembers’ 100 100 ofMauritius voluntaryliquidation

Held by Minat Teguh Sdn. Bhd.:

PTPrimabahagiaPermai* Indonesia Cultivationofoilpalms 95 95

Held by PT Primabahagia Permai:

PTPrimaAlumga* Indonesia Cultivationofoilpalms 95 95

PTIndonesiaPlantationSynergy* Indonesia Cultivationofoilpalms 90 90 andmilling

Held by Gunaria Sdn. Bhd.:

PTSinergiAgroIndustri* Indonesia Cultivationofoilpalms 95 95

PTKaryaBaktiSejahteraAgrotama* Indonesia Cultivationofoilpalms 95 95

* AuditedbyafirmotherthanPricewaterhouseCoopers,Malaysia.

(b) Duringthecurrentfinancialyear,PTPrimabahagiaPermai(“PTPP”)issuedatotalof58,600newordinarysharesofapproximatelyRM274.90eachto itsnon-controlling interestsand immediateholdingcompany,MinatTeguhSdn.Bhd.(“MTSB”),awholly-ownedsubsidiaryoftheCompany,whichwassettledthroughasetoffagainstamountduetonon-controllinginterestsandMTSB.

(c) In the previous financial year, a wholly-owned subsidiary of the Company, Akrab Perkasa Sdn. Bhd. (“APSB”),redeemed fromtheCompanya totalof16,000,000preferencesharesofRM0.01eachata redeemablepriceofRM1.00pershareamountingtoRM16,000,000.

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17 INTERESTS IN SUBSIDIARIES (cont’d)

(d) Inthepreviousfinancialyear,awholly-ownedsubsidiaryoftheCompany,SabangMillsSdn.Bhd.(“SMSB”),redeemedfromtheCompanyatotalof40,000preferencesharesofRM1.00eachataredeemablepriceofRM1,000pershareamountingtoRM40,000,000.

(e) Inthepreviousfinancialyear,awholly-ownedsubsidiaryoftheCompany, IJMEdibleOilsSdn.Bhd. (“IJMEOSB”)issuedatotalof50,000newpreferencesharesofRM1.00eachtotheCompany,atapremiumofRM999pershare,foratotalconsiderationofRM50,000,000andwassettledthroughasetoffagainstamountduefromIJMEOSB.

(f) In the previous financial year, a wholly-owned subsidiary of the Company, Gunaria Sdn. Bhd. (“GSB”) issued atotalof35,000newpreferencesharesofRM1.00eachtotheCompany,atapremiumofRM999pershare,foratotal considerationofRM35,000,000ofwhichRM3,500,000wassettledvia cashand the remainingbalanceofRM31,500,000wasthroughasetoffagainstamountduefromGSB.

(g) Inthepreviousfinancialyear,awholly-ownedsubsidiaryoftheCompany,MinatTeguhSdn.Bhd.(“MTSB”)issuedatotalof65,000newpreferencesharesofRM1.00eachtotheCompany,atapremiumofRM999pershare,foratotalconsiderationofRM65,000,000ofwhichRM7,200,000wassettledviacashandtheremainingbalanceofRM57,800,000wasthroughasetoffagainstamountduefromMTSB.

(h) Inthepreviousfinancialyear,theCompanyannouncedthatawholly-owneddormantsubsidiary,IJMPInvestments(M) Limited was being wound-up by way of members’ voluntary winding-up pursuant to Section 137 of theInsolvencyAct2009,Mauritius.Thewindingupisstillinprogressduringthecurrentfinancialyear.

(i) Inthepreviousfinancialyear,PTKaryaBaktiSejahteraAgrotama(“PTKBSA”)issuedatotalof24,750newordinarysharesofapproximatelyRM322.21eachtoitsnon-controllinginterestsandimmediateholdingcompany,GunariaSdn.Bhd.(“GSB”),awholly-ownedsubsidiaryoftheCompany,whichwassettledthroughasetoffagainstamountduetonon-controllinginterestsandGSB.

18 INVENTORIES


Crudepalmoil 18,728 38,396 – –Fertilisersandchemicals 13,128 10,511 2,326 903Storesandspares 10,670 11,782 1,056 1,246Oilpalmnurseries 8,804 7,980 1,370 892Crudepalmkerneloil 3,264 6,334 – –Palmkernels 2,404 3,423 – –Palmkernelexpellers 877 1,212 – –Freshfruitbunches 436 – – –

58,311 79,638 4,752 3,041


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19 TRADE AND OTHER RECEIVABLES

(a) Amounts due from subsidiaries

COMPANY 2015 2014 RM’000 RM’000

Trade 4,443 6,978Nontrade–non-interestbearingadvances 10,934 25,019

15,377 31,997

TheamountsduefromsubsidiariesaredenominatedinRinggitMalaysia,unsecured,interestfreeandrepayableondemand.

Asat31March2015,noamountsduefromsubsidiaries(2014:Nil)werepastdueandimpaired.

(b) Trade and other receivables


Non-currentAmountsduefromnon-controllinginterests(Notev) 21,048 – – –

CurrentTrade receivablesThirdparties 20,934 29,533 3 22

Other receivablesOtherreceivables 14,771 7,544 17 28Amountsduefromnon-controllinginterests – 17,800 – –Advancesforplasmaschemes(Noteiv) 14,214 22,655 – –Prepayments 8,817 10,665 625 1,053Advancestoworkers 1,019 1,238 225 332Deposits 2,882 2,809 30 35

41,703 62,711 897 1,448

62,637 92,244 900 1,470

Totaltradeandotherreceivables 83,685 92,244 900 1,470

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19 TRADE AND OTHER RECEIVABLES (cont’d)

(b) Trade and other receivables (cont’d)

Tradeandotherreceivables(excludingdepositsandprepayments)isfurtheranalysedasfollows:


Neitherpastduenorimpaired (i) 69,286 78,770 245 382Pastduebutnotimpaired (ii) 2,700 – – –Impaired (iii) – – – –

71,986 78,770 245 382

Thecurrencyexposureprofileofthetradeandotherreceivablesisasfollows:

GROUP 2015 2014 RM’000 RM’000

UnitedStatesDollars 21,048 17,800

(i) Trade and other receivables that are neither past due nor impaired

The Group’s trading terms with its customers are mainly on credit periods ranging from 1 to 30 days(2014:5to30days).

Tradeandotherreceivables,thatareneitherpastduenorimpaired,aresubstantiallyfromcompanieswithagoodcollectiontrackrecordwiththeGroupandtheCompany.Basedonpastexperience,managementbelievesthatnoimpairmentisnecessaryinrespectofthesebalancesastheyarefullyrecoverable.

(ii) Trade and other receivables that are past due but not impaired

Asat31March2015,tradereceivablesandotherreceivablesoftheGroupofRM2.70million(2014:Nil)werepastduebutnotimpaired.Thisrelatedtocustomersforwhomthereisnorecenthistoryofdefaultandnoconcernonthecreditworthinessofthecounterparty.Thereisnoobjectiveevidencethatthereceivableisnotfullyrecoverable.Theageinganalysisofthereceivablesisasfollows:

THEGROUP 2015 2014 RM’000 RM’000

Upto6months 2,700 –Morethan6months – –

2,700 –

(iii) Trade and other receivables that are impaired

Asat31March2015,noreceivables(2014:Nil)wereimpairedandprovidedfor.


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19 TRADE AND OTHER RECEIVABLES (cont’d)

(b) Trade and other receivables (cont’d)

(iv) Advances for plasma schemes

GROUP 2015 2014 RM’000 RM’000

At1April2014/2013 22,655 14,513Additions 3,969 8,142Repayment (12,410) –

At31March 14,214 22,655

The Government of the Republic of Indonesia requires companies involved in plantation development toprovidesupporttodevelopandcultivateoilpalmlandsforlocalcommunitiesinoilpalmplantationsaspartoftheirsocialobligationwhichareknownas“Plasma”schemes.

In linewith this requirement, theGroup’s subsidiariesare involved in several cooperativeprograms for thedevelopmentandcultivationofoilpalmlandsforlocalcommunities.TheGroup’ssubsidiariessuperviseandmanagetheplasmaschemes.AdvancesmadebytheGroup’ssubsidiariestotheplasmaschemesintheformofplantationdevelopmentcostsarerecoverableeitherthroughbankloansobtainedbythecooperativesordirectrepaymentsfromplasmaschemeswhentheseplasmaareascomeintoproduction.

TheGrouphascarriedoutanassessmentontherecoverabilityofitstradeandotherreceivablebalancesandmanagementbelievesthatnoimpairmentisrequired.

(v) The amount due fromnon-controlling interests is denominated inUnited StateDollars.The amounts duefromnon-controllinginterestsareoperationalinnatureonfurtheranceoftheoverseassubsidiariesbusinessoperations.Theamountsduefromnon-controllinginterestsarecurrentlyinterestfree,securedovertherelatedsharesheldby thenon-controlling interests and repayable ondemand.Management reserves the right tochargeinterestinthefuture.Managementdoesnotintendtodemandforrepaymentoftheamountsowingbythenon-controllinginterestswithintheperiodoftwelvemonths.Asaresult,theamountswerereclassifiedasnoncurrentassetsduringthecurrentfinancialyear.

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20 DERIVATIVE FINANCIAL INSTRUMENTS

2015 2014 ASSETS LIABILITIES ASSETS LIABILITIESTHEGROUP RM’000 RM’000 RM’000 RM’000

Current:Crudepalmoil(“CPO”)swapcontracts 382 – 627 –

TheGroupenteredintoCPOswapcontractstomitigatetheexposuretofluctuationsofthepriceofcrudepalmoil.

ThefairvaluechangeisduetothedifferencebetweenfixedCPOpricesaspertheswapcontractsandtheaveragefutureCPOpricesquotedontheBursaMalaysiaDerivativeExchangeforthespecificcontractedperiod.

ThetermsoftheoutstandingCPOswapcontractsareasfollows:

CONTRACT NOTIONALAMOUNTANDCONTRACTEDPRIC EEFFECTIVEPERIOD

ContractA 250tonnespermonthatRM2,120permonth 1April2015to30September2015

ContractB 250tonnespermonthatRM2,260permonth 1April2015to31December2015

ContractC 250tonnespermonthatRM2,100permonth 1April2015to31March2016

ContractD 250tonnespermonthatRM2,165permonth 1April2015to31March2016

ContractE 250tonnespermonthatRM2,220permonth 1April2015to31March2016

ContractF 250tonnespermonthatRM2,245permonth 1March2015to30June2015

21 DEPOSITS, CASH AND BANK BALANCES


Non-currentDepositwithalicensedbank(Note34) 92,569 – – –

CurrentCashandbankbalances 71,726 36,642 874 4,433Depositswithlicensedbanks 303,712 307,334 100,500 46,400

375,438 343,976 101,374 50,833

468,007 343,976 101,374 50,833

TheeffectiveinterestratesperannumofdepositswithlicensedbanksasattheendofthefinancialyearfortheGroupandtheCompanyareasfollows:

GROUP COMPANY 2015 2014 2015 2014 % % % %

Depositswithlicensedbanks:RinggitMalaysia 2.55 – 3.15 2.55–3.0 3.05 – 3.15 2.85–3.0IndonesianRupiah 7.5 6.0–7.5 – –USDollar 2.4 – 3.1 3.0–3.25 – –

Depositswith licensedbanksof theGroupandof theCompanyhavematurityperiods ranging from2 to732days(2014:1to365days)and2to32days(2014:1to30days)respectively.

Bankbalancesaredepositsheldatcallwithbanksandearnnointerest.


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22 SHARE CAPITAL

GROUPANDCOMPANY NUMBEROFORDINARY NOMINAL SHARESOFRM0.50EACH VALUE 2015 2014 2015 2014 ’000 ’000 RM’000 RM’000

Authorised:Atbeginningandendoffinancialyear 2,000,000 2,000,000 1,000,000 1,000,000

Issuedandfullypaid:Atbeginningoffinancialyear 804,400 801,724 402,200 400,862

Issuanceofshares:–ExerciseofWarrants2009/2014 76,180 2,676 38,090 1,338

Atendoffinancialyear 880,580 804,400 440,290 402,200

(a) During the financial year, the issued and paid-up ordinary share capital of the Company was increased fromRM402,200,274 to RM440,290,230 byway of the issuance of 76,179,912 new ordinary shares of RM0.50 eacharisingfromtheexerciseofWarrants2009/2014attheexercisepriceofRM2.62pershare.

Inthepreviousfinancialyear,theissuedandpaid-upordinarysharecapitaloftheCompanywasincreasedfromRM400,862,468toRM402,200,274bywayoftheissuanceof2,675,612newordinarysharesofRM0.50eacharisingfromtheexerciseofWarrants2009/2014attheexercisepriceofRM2.62pershare.

ThenewordinarysharesissuedduringthefinancialyearrankparipassuinallrespectswiththeexistingordinarysharesoftheCompany.

(b) Warrants2009/2014

TheWarrants2009/2014areconstitutedbyaDeedPolldated30September2009.

On9November2009,theCompanyallotted160,268,583RightsSharestogetherwith80,134,149WarrantsatanissuepriceofRM2.10perRightsShare,onarenounceablebasisoftwo(2)RightsSharesandone(1)Warrantforeveryeight(8)existingordinarysharesheldon15October2009.TheWarrants2009/2014arewerelistedontheMainMarketofBursaMalaysiaSecuritiesBerhadwitheffectfrom13November2009.

EachWarrant2009/2014entitlestheregisteredholdertosubscribeforone(1)newordinaryshareintheCompanyatanytimeonorafter9November2009uptothedateofexpiryon7November2014,atanexercisepriceofRM2.62inaccordancewiththeDeedPolldated30September2009.AnyWarrants2009/2014notexercisedatthedateofmaturitywilllapseandceasetobevalidforanypurpose.

TheordinarysharesissuedfromtheexerciseofWarrants2009/2014shallrankparipassuinallrespectswiththeexistingissuedordinarysharesoftheCompanyexceptthattheyshallnotbeentitledtoanydividends,distributionsorrights,theentitlementdateofwhichispriortothedateoftheallotmentofthenewsharesarisingfromtheexerciseofWarrants2009/2014.

Asat7November2014,896,603Warrants2009/2014remainedunexercisedandexpired.

23 EQUITY CONTRIBUTION RESERVE

The equity contribution reserve represents the equity-settled share options of the ultimate holding company, IJMCorporationBerhadthataregrantedtocertainemployeesoftheGroup.Thereserveismadeupofthecumulativevalueofservicesreceivedfromemployeesrecordedoverthevestingperiodcommencingfromthegrantdateoftheshareoptionsandisreducedbytherechargebytheultimateholdingcompanyuponexpiryorexerciseoftheequitysettledshareoptionsbytheeligibleemployees.

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24 OTHER RESERVES

FOREIGN CURRENCY CAPITAL REVALUATION WARRANT TRANSLATION RESERVE RESERVE RESERVE RESERVE TOTALGROUP RM’000 RM’000 RM’000 RM’000 RM’000

At 1 April 2013 – 53,028 36,686 (49,721) 39,993Currencytranslationdifferences

arisingfromtranslationofnetinvestmentsinsubsidiaries – – – (53,182) (53,182)

TransfertosharepremiumuponexerciseofWarrants2009/2014 – – (1,231) – (1,231)

Redemptionofconvertiblecumulativeredeemablepreferencesharesinsubsidiaries 200 – – – 200

Changeintaxrate – 1,129 – – 1,129

At 31 March 2014 200 54,157 35,455 (102,903) (13,091)Currencytranslationdifferences

arisingfromtranslationofnetinvestmentsinsubsidiaries – – – (12,351) (12,351)

TransfertosharepremiumuponexerciseofWarrants2009/2014 – – (35,043) – (35,043)

TransfertoretainedprofitsuponexpiryofWarrants2009/2014 – – (412) – (412)

At 31 March 2015 200 54,157 – (115,254) (60,897)

REVALUATION WARRANT RESERVE RESERVE TOTALCOMPANY RM’000 RM’000 RM’000

At 1 April 2013 4,880 36,686 41,566TransfertosharepremiumuponexerciseofWarrants2009/2014 – (1,231) (1,231)Changeintaxrate 65 – 65

At 31 March 2014 4,945 35,455 40,400TransfertosharepremiumuponexerciseofWarrants2009/2014 – (35,043) (35,043)TransfertoretainedprofituponexpiryofWarrants2009/2014 – (412) (412)

At 31 March 2015 4,945 – 4,945

Thenatureandpurposeofeachcategoryofreserveareasfollows:

(a) Capital reserve

Thisrepresentstheamountsequivalenttothenominalvalueoftheconvertiblecumulativeredeemablepreferencesharesredeemedbycertainsubsidiaries.

(b) Revaluation reserve

Thisrepresentsthesurplusonrevaluationofplant,buildings,leaseholdlandandplantationexpenditure.


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24 OTHER RESERVES (cont’d)

(c) Warrant reserve

Proceeds from the issuance of warrants, net of issue costs, are credited to the warrant reserve which isnon-distributable.Warrantreserveistransferredtothesharepremiumaccountupontheexerciseofthewarrantsandthewarrantreserveinrelationtounexercisedwarrantsattheexpiry,willbetransferredtoretainedprofits.

(d) Foreign currency translation reserve

The foreign currency translation reserve is used to record exchange differences arising from the translation ofthefinancial statements of foreign entitieswhose functional currencies are different from that of theGroup’spresentationcurrency.ItisusedtorecordtheexchangedifferencesarisingfrommonetaryitemswhichformpartoftheGroup’snetinvestmentinforeignentities,wherethemonetaryitemisdenominatedineitherthefunctionalcurrencyofthereportingentityortheforeignentities.

25 RETAINED PROFITS

TheCompanymaydistributedividendsoutofitsentireretainedprofitsasat31March2015underthesingle-tiertaxsystem.

SubjecttotheagreementbytheInlandRevenueBoard,theCompanyhastaxexemptincometofrankthepaymentoftaxexemptdividendsuptoRM6,411,956(2014:RM6,411,956).

26 DEFERRED TAXATION

Deferredtaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttosetoffcurrenttaxassetsandcurrenttaxliabilitiesandwhenthedeferredtaxesrelatetothesametaxauthority.

Thefollowingamounts,determinedafterappropriateoffsetting,areshowninthebalancesheets:


Deferredtaxassets 33,037 10,327 – –Deferredtaxliabilities (164,719) (161,812) (34,893) (34,844)

(131,682) (151,485) (34,893) (34,844)

Atthebeginningoffinancialyear (151,485) (153,637) (34,844) (35,070)Credited/(charged)tostatementof

comprehensiveincome(Note11):–Deductibletemporarydifferencesonproperty,

plantandequipment (2,966) 1,926 91 (568)–Plantationexpenditure (14,534) (17,995) (140) 729–Unutilisedtaxlosses 37,016 17,237 – –

19,516 1,168 (49) 161

Credited/(charged)toequity:–Revaluationreserve – 1,129 – 65Exchangedifferences 287 (177) – –Others – 32 – –

Atendoffinancialyear (131,682) (151,485) (34,893) (34,844)

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26 DEFERRED TAXATION (cont’d)


Subjecttoincometax:Deferredtaxassets(beforeoffsetting):–Deductibletemporarydifferencesonproperty,

plantandequipment – 274 – 61–Revaluationofleaseholdland – – 125 125–Unutilisedtaxlosses 78,289 41,687 – –

78,289 41,961 125 186Offsetting (45,252) (31,634) (125) (186)

Deferredtaxassets(afteroffsetting) 33,037 10,327 – –

Deferredtaxliabilities(beforeoffsetting):–Property,plantandequipment (45,840) (43,133) (11,887) (12,039)–Plantationexpenditure (137,158) (123,340) (21,442) (21,302)–Revaluationofplantationexpenditure (25,022) (25,022) (1,689) (1,689)–Revaluationofleaseholdlandandproperty,

plantandequipment (1,951) (1,951) – –

(209,971) (193,446) (35,018) (35,030)Offsetting 45,252 31,634 125 186

Deferredtaxliabilities(afteroffsetting) (164,719) (161,812) (34,893) (34,844)

(a) ThefollowingareamountsofdeductibletemporarydifferencesonplantationexpenditureandunutilisedtaxlossesincertainMalaysiansubsidiariesforwhichnodeferredtaxassetisrecognisedinthebalancesheetswhereitisnotprobablethatthesesubsidiarieswillhavefutureprofitableoperations.


Deductibletemporarydifferencesonplantationexpenditure 343 343 – –

Unutilisedtaxlosses 733 733 – –

1,076 1,076 – –

Deferredtaxassetsnotrecognised 269 269 – –


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26 DEFERRED TAXATION (cont’d)

(b) TheunutilisedtaxlossesandothertemporarydifferencesinIndonesiansubsidiariesnotrecognisedasdeferredtaxassetsamountingtoRM52,269,000(2014:RM30,262,000)willexpireinthefollowingfinancialyears:

GROUP 2015 2014 RM’000 RM’000

Financialyear:2015 – 3,6292016 8,763 5,3512017 983 1,0072018 – –2019 20,041 20,2752020 22,482 –

52,269 30,262

Deferredtaxassetsnotrecognised 13,067 7,566

27 RETIREMENT BENEFITS

ThesubsidiariesinIndonesiaoperateanunfundeddefinedbenefitschemeforqualifiedpermanentemployeeswhoareeligibleundertheemploymentpolicy.Therearenoplanassetsoractualreturnsontheplanassets.Thelevelofbenefitsprovideddependsontheemployees’lengthofserviceandtheirsalaryinthefinalyearsleadinguptoretirement.

ThelatestactuarialvaluationsoftheplansinIndonesiawerecarriedouton31March2015byaqualifiedactuary.

Themovementsduringthefinancialyearintheamountsrecognisedinthebalancesheetsareasfollows:

GROUP 2015 2014 RM’000 RM’000

Atbeginningoffinancialyear 1,557 1,246Recognisedinstatementofcomprehensiveincome 499 169Capitalisedinplantationexpenditure(Note16(b)) 365 258Exchangedifferences (27) (116)

Atendoffinancialyear 2,394 1,557

Analysedas:Non-current 2,394 1,557

Theamountofunfundeddefinedbenefitsrecognisedinthebalancesheetsaredeterminedasfollows:

GROUP 2015 2014 RM’000 RM’000

Presentvalueofunfundeddefinedbenefitobligations 2,394 1,557

Liabilityinthebalancesheets 2,394 1,557

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27 RETIREMENT BENEFITS (cont’d)

Theamountsrecognisedinthestatementofcomprehensiveincomeareasfollows:

GROUP 2015 2014 RM’000 RM’000

Currentservicecost 367 148Interestcost 132 21

Totalunfundeddefinedbenefitplan(Note9) 499 169

Thechargetoprofitorlosswasincludedincostofsales.

Theexpensescapitalisedinplantationexpenditureduringthefinancialyearwereanalysedasfollows:

GROUP 2015 2014 RM’000 RM’000

Currentservicecost 285 220Interestcost 80 38

Totalunfundeddefinedbenefitplan(Note16) 365 258

TheprincipalassumptionsusedinrespectoftheGroup’sunfundeddefinedbenefitplanwereasfollows:

GROUP 2015 2014 % %

Discountrate 7 8Expectedrateofsalaryincreases 8 6

Basedonthesamemethodusedtoderivethepresentvalueofthedefinedbenefitobligationusingtheprojectedunitcreditmethod,itisestimatedthata1%changeintheprincipalassumptionswouldnothaveasignificantimpacttothedefinedbenefitobligationoftheGroup.

Throughthedefinedbenefitplan,theGroupisexposedtoanumberofrisks,andthemostsignificantriskisthechangeinbondyieldwherebyadecreaseincorporatebondyieldwillincreasetheplanliabilities.

Theweightedaveragedurationofthedefinedbenefitobligationis11.0yearsfortheGroup(2014:10.0years).

Theexpectedmaturityanalysisofundiscountedretirementbenefitisasfollows:

LESSTHAN 1TO 2TO OVER 1YEAR 2YEARS 5YEARS 5YEARS TOTALGROUP RM’000 RM’000 RM’000 RM’000 RM’000

2015Provisionfordefinedbenefitplan 124 204 827 107,133 108,288

2014Provisionfordefinedbenefitplan 100 84 289 62,150 62,623


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28 BORROWINGS

GROUP 2015 2014 RM’000 RM’000

UnsecuredCurrent 211,059 138,216Non-current 503,576 472,924

714,635 611,140

Thenetexposureofborrowingstocashflowinterestrateriskandtheperiodsinwhichtheborrowingsmatureareasfollows:

EFFECTIVE FLOATINGINTERESTRATE INTEREST RATEASAT TOTAL YEAREND CARRYING <1 1-2 2-3 3-4 4-5 >5 PERANNUM AMOUNT YEAR YEARS YEARS YEARS YEARS YEARSGROUP % RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 31 March 2015Termloan1 1.53 116,638 12,960 12,960 25,919 64,799 – –Termloan2 1.53 116,638 12,960 12,960 25,919 64,799 – –Termloan3 2.05 148,110 55,542 55,542 37,026 – – –Termloan4 2.05 148,110 55,542 55,542 37,026 – – –Termloan5 1.88 111,084 – – 27,771 55,542 27,771 –Shorttermadvancefacility2 1.20 74,055 74,055 – – – – –

714,635 211,059 137,004 153,661 185,140 27,771 –

At 31 March 2014Termloan1 1.52 115,751 11,575 11,575 11,575 23,150 57,876 –Termloan2 1.52 115,751 11,575 11,575 11,575 23,150 57,876 –Termloan3 2.12 132,286 – 49,607 49,607 33,072 – –Termloan4 2.12 132,286 – 49,607 49,607 33,072 – –Shorttermadvancefacility1 1.30 48,923 48,923 – – – – –Shorttermadvancefacility2 1.17 66,143 66,143 – – – – –

611,140 138,216 122,364 122,364 112,444 115,752 –

ThetermloansdrawndownbycertainsubsidiariesaredenominatedinUSDollars(“USD”)andaresecuredbywayofcorporateguaranteesbytheCompany.

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28 BORROWINGS (cont’d)

(a) Termloan1andtermloan2ofUSD35millioneachwasdrawndownbyPTPrimabahagiaPermaiandPTSinergiAgroIndustri,subsidiariesoftheGroup,tofinanceplantationdevelopmentcostsinIndonesiaandgeneralworkingcapitalrequirements.Thetermloansarerepayablebysemi-annualprincipal instalmentscommencingfromthethirdanniversaryandwillmatureattheseventhanniversaryfromthedateoffirstdrawdown.ThetermloansbearinterestatarateofLondonInterbankOfferedRate(“LIBOR”)plus1.2%perannum.

Thesetermloanscontaincovenantswhichrequirethesesubsidiariestomaintainatall timesaminimumDebtService Reserve Account (“DSRA”) equivalent to sixmonths of interest obligations under the term loans. As at31March2015, these subsidiarieshave compliedwith this covenantof the term loansbymaintainingafixeddepositofRM1million(2014:RM1million)eachwiththebank.

(b) Term loan 3 and term loan 4 of USD40 million each was drawndown by PT Prima Alumga and PT IndonesiaPlantationSynergy,subsidiariesoftheGroup,tofinanceplantationdevelopmentcostsinIndonesiaandgeneralworkingcapitalrequirements.Thetermloansarerepayableasfollows:

(i) USD30millionistoberepaidinfullattheendofthe36thmonthfromthedateoffirstdrawdown.

(ii) USD30millionistoberepaidby4quarterlyprincipalinstalmentsasfollows:

AMOUNTS REPAYMENTDATES

USD4million Datefalling39monthsafterfirstdrawdown




(iii) USD20millionistoberepaidby4equalquarterlyprincipalinstalmentsofUSD5millioneachwiththefirstprincipalrepaymentcommencingattheendofthe51monthsfromthedateofthefirstdrawdown.

ThefirstUSD30millionbears interestatarateofLIBORplus1.5%perannum.ThesecondUSD30millionbearsinterestatarateofLIBORplus1.65%perannum.ThefinalUSD20millionbears interestatarateofLIBORplus1.8%perannum.

The facility contains covenantswhich require these subsidiaries tomaintainpositivenetworth throughout thetenor of the term loans facility.Networth is definedas the sumof paid-up capital and retainedprofits. In theevent the subsidiaries are not able to maintain the positive networth, the subsidiaries are required to ensuretheir adjusted networth (which include non-trade advances from related companies and shareholders loans)are maintained at a minimum of USD 1 million. The facility also requires that the Group’s EBITDA to interestexpense shall not be less than 2.5 times at all times and these subsidiaries shall not declare any dividend orotherformsofdistributioninexcessof75%ofitsconsolidatednetprofits.EBITDAisdefinedasprofitbeforetax,interest,depreciationandamortisation.Besides,thefacilityalsorequirestheGroup’sleveragerationottoexceed1.0timeasatyearend.Leverageratioisdefinedastotalliabilitiesagainsttangiblenetworth.Asat31March2015,thesesubsidiariesandtheGrouphavecompliedwithallthecovenantsofthetermloans.

(c) Termloan5ofUSD30millionwasdrawndownbyPTSinergiAgroIndustri,subsidiaryoftheCompany,tofinanceitsmillconstructionplantationdevelopmentcostsinIndonesiaandgeneralworkingcapitalrequirementsduringthefinancialyear.Thetermloanisrepayablebyeightquarterlyprincipalinstalmentscommencingfromthethirdanniversaryandwillmatureatthefifthanniversaryfromthedateoffirstdrawdown.ThetermloansbearinterestatarateofLIBORplus1.55%perannum.


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28 BORROWINGS (cont’d)

(d) Shorttermadvancefacility1ofUSD15millionwasdrawndownbyasubsidiary,ExcellentChallenger(M)Sdn.Bhd.duringthepreviousyeartofinancegeneralworkingcapitalrequirements.Theshorttermadvancefacilitybearsinterestatarateofthebank’scostoffundsplus0.9%perannumandisrepayableondemand.Theshorttermadvancefacilitywasrepaidduringthefinancialyear.

(e) Shorttermadvancefacility2ofUSD20millionwasdrawndownbyasubsidiary,PTKaryaBaktiSejahteraArgotamaduringthepreviousfinancialyeartofinancegeneralworkingcapitalrequirements.TheshorttermadvancefacilitybearsinterestatarateofLIBORplus0.9%perannumandisrepayableondemand.

29 TRADE AND OTHER PAYABLES

(a) Amounts due to subsidiaries

COMPANY 2015 2014 RM’000 RM’000

CurrentNontrade–non-interestbearingadvances 44,719 33,498

TheamountsduetosubsidiariesaredenominatedinRinggitMalaysia,unsecured,interestfreeandrepayableondemand.

(b) Trade and other payables


Current

Trade payablesThirdparties 48,393 36,569 11,340 7,062

Other payablesOtherpayables 22,184 20,708 783 858Accruals 15,522 11,445 10,707 7,050Ultimateholdingcompany 3,778 – 3,778 –Fellowsubsidiary 73 72 73 72

41,557 32,225 15,341 7,980

89,950 68,794 26,681 15,042

Non-current

Other payablesFinancialguaranteecontract – – 17,199 16,541

Totaltradeandotherpayables 89,950 68,794 43,880 31,583

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29 TRADE AND OTHER PAYABLES (cont’d)

(b) Trade and other payables (cont’d)

(i) Trade and other payables

Tradeandotherpayablesarenon-interestbearingandthenormaltradecredittermsgrantedtotheGroupandtheCompanyrangefrom45to60days(2014:45to60days).

(ii) Amount due to a fellow subsidiary

The amount due to a fellow subsidiary is denominated in Ringgit Malaysia, interest free, unsecured andrepayableondemand.

(iii) Ultimate holding company

TheamountduetoultimateholdingcompanyisdenominatedinRinggitMalaysia,interestfree,unsecuredandrepayableondemand.

(iv) Financial guarantee contract

COMPANY 2015 2014 RM’000 RM’000

At1April2014/2013 16,541 15,784Foreignexchangedifferences – 757Additions 1,142 –Amortisationtoprofitandloss (484) –

At31March 17,199 16,541

ThefinancialguaranteecontractrepresentsthefairvalueofcorporateguaranteesextendedbytheCompanytoitssubsidiariesforfinancingoftheirtermloans.

30 COMMITMENTS


(a) Property,plantandequipment,landuserightsandplantationexpenditure:Approvedandcontractedfor 112,652 97,154 2,055 5,355Approvedbutnotcontractedfor 240,902 399,443 17,675 17,569

353,554 496,597 19,730 22,924

(b) LanduserightscommitmentsCommitmentsundernon-cancellable

landuserights:Expiringnotlaterthan1year 662 – 248 –Expiringlaterthan1yearbutnotlaterthan5years 2,645 – 990 –Expiringlaterthan5years 47,292 – 17,258 –

50,599 – 18,496 –

Apart fromincurringadditional landpremiumsfor landuserightsduringthefinancialyear, theGroupandtheCompanyhavealsoagreedtopayannualcommitmentsforlanduserightsuntiltheendoftherespectivelanduserightsperiods.


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31 SIGNIFICANT RELATED PARTY DISCLOSURES

(a) Inadditiontorelatedpartydisclosuresmentionedelsewhereinthefinancialstatements,setoutbelowareothersignificantrelatedpartytransactionsandbalances.Thefollowingtransactionswithrelatedpartieswerecarriedoutundertermsandconditionsnegotiatedamongsttherelatedparties:

RELATEDPARTIES RELATIONSHIP

IJMCorporationBerhad Ultimateholdingcompany

IJMPropertiesSdn.Bhd. Asubsidiaryoftheultimateholdingcompany


Transactionsduringthefinancialyear:

Ultimateholdingcompany:–Secretarialandinternalauditfees – 265 – 188–Capitalcontributionviashare-basedpayment 2,697 3,693 1,659 3,693–Managementfee 2,801 – 2,801 –

Subsidiaryoftheultimateholdingcompany:–Rentalincome 83 83 83 83

Non-controllinginterests:–Advancesto 3,248 1,514 – –

COMPANY 2015 2014 RM’000 RM’000

Subsidiaries:–Saleoffreshfruitbunches 105,097 106,585–Managementfeeincome 9,566 9,332–Recoveryofmanagementfeechargedbyultimateholdingcompany 62 ––Saleofproperty,plantandequipment 48 327–Purchaseofproperty,plantandequipment 73 1,536–Purchaseofcompost 127 44–Rentalincome 38 29–Netrepaymentfromsubsidiaries 51,221 3,079–Advancestosubsidiaries (180,603) –

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31 SIGNIFICANT RELATED PARTY DISCLOSURES (cont’d)

(b) Keymanagementcompensationduringthefinancialyear

Key management personnel comprise the Directors and certain management personnel of the Group, havingauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheGroupentitiesdirectlyorindirectly.


Wages,salariesandbonuses 5,358 6,578 1,790 1,571Definedcontributionplan 790 970 269 236Feesandotheremoluments 673 669 673 669Otheremployeebenefits 90 59 90 59Shareoptionexpense 1,134 724 637 406

8,045 9,000 3,459 2,941

Includedinthetotalkeymanagementcompensationis:

Directors’remunerationincludingbenefits-in-kind(Note10) 3,459 2,941 3,459 2,941

32 FINANCIAL INSTRUMENTS BY CATEGORY

LOANSANDRECEIVABLES 2015 2014 NOTE RM’000 RM’000

Group:

Assetsasperbalancesheets:Tradeandotherreceivables(excludingprepaymentsanddeposits) 19(b) 71,986 78,770Deposits,cashandbankbalances 21 468,007 343,976

Total 539,993 422,746

FAIRVALUETHROUGH PROFITORLOSS 2015 2014 NOTE RM’000 RM’000

Derivativefinancialinstruments 20 382 627

OTHERFINANCIAL LIABILITIESAT AMORTISEDCOST 2015 2014 NOTE RM’000 RM’000

Liabilitiesasperbalancesheets:Tradeandotherpayables 29(b) 89,950 68,794Shorttermadvancefacility 28 74,055 115,066Termloans 28 640,580 496,074

Total 804,585 679,934


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32 FINANCIAL INSTRUMENTS BY CATEGORY (cont’d)

LOANSANDRECEIVABLES 2015 2014 NOTE RM’000 RM’000

Company:

Assetsasperbalancesheet:Amountsduefromsubsidiaries 19(a) 15,377 31,997Tradeandotherreceivables(excludingprepayments,anddeposits) 19(b) 245 382Deposits,cashandbankbalances 21 101,374 50,833

Total 116,996 83,212

OTHERFINANCIAL FINANCIALGUARANTEE LIABILITIESAT CONTRACTS AMORTISEDCOST 2015 2014 2015 2014 NOTE RM’000 RM’000 RM’000 RM’000

Liabilitiesasperbalancesheet:Amountsduetosubsidiaries 29(a) – – 44,719 33,498Tradeandotherpayables 29(b) 17,199 16,541 26,681 15,042

Total 17,199 16,541 71,400 48,540

33 SEGMENTAL REPORTING

ManagementhasdeterminedtheoperatingsegmentsbasedonthereportsreviewedbytheManagementCommittee(“MC”)oftheGroupthatareusedtomakestrategicdecisionsforallocatingresourcesandassessingperformance.TheMCconsidersthebusinessfromacountryperspectiveandassessestheperformanceoftheoperatingsegmentsbasedonameasureofprofitbeforetaxation.TheGroupprincipallyoperatescultivationofoilpalmsandmillingoffreshfruitbuncheswhichisgeographicallylocatedinMalaysiaandIndonesia.

ThesegmentinformationprovidedtotheMCforthereportablesegmentsisasfollows:

MALAYSIA INDONESIA GROUP2015 RM’000 RM’000 RM’000

RevenueTotalrevenue 475,349 192,317 667,666

ResultsProfitbeforetax 123,690 (34,283) 89,407Incometaxexpense (7,110)

Netprofitforthefinancialyear 82,297

AssetsSegmentassets 1,083,347 1,443,872 2,527,219Unallocatedassets:–Deferredtaxassets 33,037–Taxrecoverable 9,844

Totalassets 2,570,100

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33 SEGMENTAL REPORTING (cont’d)

MALAYSIA INDONESIA GROUP2015 NOTE RM’000 RM’000 RM’000

LiabilitiesSegmentliabilities 43,738 763,241 806,979Unallocatedliabilities:–Deferredtaxliabilities 164,719–Currenttaxliabilities 447

Totalliabilities 972,145

Other informationCapitalexpenditure:–property,plantandequipment 14 20,432 117,462 137,894–landuserights 15 17,376 9,559 26,935–plantationexpenditure 16 677 137,785 138,462

Depreciationofproperty,plantandequipmentchargedtostatementofcomprehensiveincome 14 27,738 17,375 45,113

Amortisationoflanduserightschargedtostatementofcomprehensiveincome 15 1,585 1,006 2,591

MALAYSIA INDONESIA GROUP2014 RM’000 RM’000 RM’000

RevenueTotalrevenue 517,929 129,052 646,981

ResultsProfitbeforetax 114,765 (5,682) 109,083Incometaxexpense (25,992)

Netprofitforthefinancialyear 83,091

AssetsSegmentassets 1,075,800 1,132,424 2,208,224Unallocatedassets:–Deferredtaxassets 10,327–Taxrecoverable 7,217

Totalassets 2,225,768

LiabilitiesSegmentliabilities 180,638 500,853 681,491Unallocatedliabilities:–Deferredtaxliabilities 161,812–Currenttaxliabilities 470

Totalliabilities 843,773


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33 SEGMENTAL REPORTING (cont’d)

MALAYSIA INDONESIA GROUP2014 NOTE RM’000 RM’000 RM’000

Other informationCapitalexpenditure:–property,plantandequipment 14 14,573 66,930 81,503–landuserights 15 761 1,010 1,771–plantationexpenditure 16 625 114,517 115,142

Depreciationofproperty,plantandequipmentchargedtostatementofcomprehensiveincome 14 27,305 12,340 39,645

Amortisationoflanduserightschargedtostatementofcomprehensiveincome 15 1,405 479 1,884

RevenuesofapproximatelyRM418,532,000 (2014:RM474,743,000)arederived from2majorexternal customers inMalaysia.

Revenues of approximately RM80,903,000 (2014: RM60,047,000) are derived from 2 major external customers inIndonesia.

RevenuefromexternalcustomersreportedtotheMCismeasuredinamannerconsistentwiththatinthestatementofcomprehensiveincome.

RevenuefromoperatingsegmentsisdisclosedinNote4tothefinancialstatements.

TheamountsprovidedtotheMCwithrespecttototalassetsandtotalliabilitiesaremeasuredinamannerconsistentwiththatofthefinancialstatements.Theseassetsandliabilitiesareallocatedbasedonthegeographicaloperationsofthesegment.

– Segment assets comprise property, plant and equipment, land use rights, plantation expenditure, receivables,deposits,cashandbankbalances.

– Segmentliabilitiescomprisepayables,termloansandretirementbenefits.

TheMCevaluatestheperformanceoftheoperatingsegmentsexcludingtheforeignexchangegainsandlossesarisingfrom the intersegment loans denominated inUnited StateDollars.Thenet unrealised foreign exchange gains andlossesarisingfromtheintersegmentloanswereincludedintheGroup’scomprehensiveincomestatements.

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34 CASH AND CASH EQUIVALENTS

Cash and cash equivalents included in the Group’s and the Company’s statements of cash flows comprise thefollowing:


Cashandbankbalances 21 71,726 36,642 874 4,433Depositswithlicensedbanks 21 396,281 307,334 100,500 46,400

468,007 343,976 101,374 50,833Less:Restricteddepositswithlicensedbanks (a)&(b) (4,018) (1,440) – –Fixeddepositpledged (c) (92,569) – – –

371,420 342,536 101,374 50,833

(a) The restricteddepositwitha licensedbank relates toadepositbyPTSinergiAgro Industri, a subsidiaryof theCompany,whichwasassignedtothebankassecurityinrespectofacorporateguaranteefacilitytoacooperativeinIndonesiaasreferredtoinNote3(c)tothefinancialstatements.

(b) Termloan1andtermloan2containcovenantswhichrequirethesesubsidiariestomaintainatalltimesaminimumDebtServiceReserveAccount(“DSRA”)equivalenttosixmonthsof interestobligationsunderthetermloansasreferredtoinNote3(c)tothefinancialstatements.

(c) PT Primabahagia Permai (“PTPP”), a subsidiary of the Company had pledged a fixed deposit amounting toRM92,569,000 (equivalent to USD25 million) to an Indonesian bank to guarantee the payment to a turnkeycontractoruponcompletionandacceptanceofsatisfactorydeliveryoftheconstructionofamill.

35 SIGNIFICANT EVENT DURING THE FINANCIAL YEAR

Gunaria Sdn. Bhd. (“Gunaria”), a wholly-owned subsidiary of the Company, has on 21 November 2014 enteredinto aConditional Share SubscriptionAgreement (“CSSA”)withKL-Kepong PlantationHoldings Sdn. Bhd. (“KLKP”),awholly-owned subsidiaryofKuala LumpurKepongBerhad, and two (2) existing shareholders for subscriptionof25,600newsharesof IDR.1,000,000eachinPTPerindustrianSawitSinergi(“PTPSS”)foratotalcashconsiderationof IDR.25,600,000,000 (approximately RM6,900,000) (“the Proposed Subscription”). Pursuant to the CSSA, theshareholdingratioofGunaria,KLKPandtheexistingshareholderswillbe32:63:5.PTPSSwillbeajointventurevehicleofthepartiestoestablishanintegratedpalmoilrefinerycomplex,kernelcrushingplant,saleofrefinedorprocessedoilpalmproductsoritsderivative.Atthedateofthisreport,theProposedSubscriptionispendingcompletion.


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36 DISCLOSURE OF REALISED AND UNREALISED RETAINED PROFITS/(ACCUMULATED LOSSES)

ThefollowinganalysisispreparedinaccordancewiththeGuidanceonSpecialMatterNo.1,DeterminationofRealisedand Unrealised Profits or Losses in the context of disclosure pursuant to Bursa Malaysia Securities Berhad ListingRequirements,asissuedbytheMalaysianInstituteofAccountants(“MIAGuidance”)andthedirectiveofBursaMalaysiaSecuritiesBerhad.


Totalretainedprofits/(accumulatedlosses)oftheCompanyanditssubsidiaries:

–Realised 1,099,053 1,012,965 506,045 488,472–Unrealised(Note1) (292,292) (238,976) (33,329) (33,280)

Less:Consolidationadjustments(Note2) (66,887) (67,955) – –

Totalretainedprofits 739,874 706,034 472,716 455,192

Note1 The unrealised retained profits/(accumulated losses) are mainly deferred tax provisions, and translationgains/lossesonmonetaryitemsdenominatedinacurrencyotherthanthefunctionalcurrency.

Note2 Consolidationadjustmentsaremainlyeliminationofpre-acquisitionprofitsorlosses,fairvalueadjustmentsarisingfrombusinesscombinationsandnon-controllinginterests’shareofretainedprofitsoraccumulatedlosses.

Supplementary Information

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Statutory DeclarationpursuanttoSection169(16)ofTheCompaniesAct,1965

I,Purushothamana/lKumaran,beingtheDirectorprimarily responsible for thefinancialmanagementof IJMPlantationsBerhad,dosolemnlyandsincerelydeclarethat,tothebestofmyknowledgeandbelief,thefinancialstatementssetoutonpages93to157arecorrectandImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

PURUSHOTHAMAN A/L KUMARAN

SubscribedandsolemnlydeclaredatPetalingJayaon26May2015.

Beforeme:

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Independent Auditors’ ReporttothemembersofIJMPlantationsBerhad

REPORT ON THE FINANCIAL STATEMENTS

WehaveauditedthefinancialstatementsofIJMPlantationsBerhadonpages93to156whichcomprisethebalancesheetsasat31March2015oftheGroupandoftheCompany,andthestatementsofcomprehensiveincome,changesinequityandcashflowsoftheGroupandoftheCompanyfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes,assetoutonNotes1to35.

Directors’ Responsibility for the Financial Statements

TheDirectorsoftheCompanyareresponsibleforthepreparationoffinancialstatementssoastogiveatrueandfairviewinaccordancewithFinancialReportingStandardsandtherequirementsoftheCompaniesAct,1965inMalaysia.TheDirectorsarealsoresponsibleforsuchinternalcontrolastheDirectorsdeterminearenecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditors’ Responsibility

Our responsibility is toexpressanopinionon thesefinancial statementsbasedonouraudit.Weconductedouraudit inaccordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethicalrequirementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialstatements.Theproceduresselecteddependonourjudgement,includingtheassessmentofrisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror. Inmakingthoseriskassessments,weconsider internalcontrolrelevant to the Company’s preparation of financial statements that give a true and fair view in order to design auditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessof theCompany’s internal control.Anauditalso includesevaluating theappropriatenessofaccountingpoliciesusedandthe reasonableness of accounting estimatesmade by theDirectors aswell as evaluating the overall presentation of thefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

Inouropinion,thefinancialstatementsgiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasof31March2015andoftheirfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithFinancialReportingStandardsandtherequirementsoftheCompaniesAct,1965inMalaysia.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

InaccordancewiththerequirementsoftheCompaniesAct,1965inMalaysia,wealsoreportthefollowing:

(a) Inouropinion,theaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyanditssubsidiariesofwhichwehaveactedasauditorshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

(b) Wehaveconsideredthefinancialstatementsandtheauditors’reportsofallthesubsidiariesofwhichwehavenotactedasauditors,whichareindicatedinNote17tothefinancialstatements.

(c) We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company’sfinancialstatementsareinformandcontentappropriateandproperforthepurposesofthepreparationofthefinancialstatements of the Group and we have received satisfactory information and explanations required by us for thosepurposes.

(d) TheauditreportsonthefinancialstatementsofthesubsidiariesdidnotcontainanyqualificationoranyadversecommentmadeunderSection174(3)oftheAct.

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OTHER REPORTING RESPONSIBILITIES

The supplementary information setout inNote36onpage157 isdisclosed tomeet the requirementofBursaMalaysiaSecurities Berhad and is not part of the financial statements. The Directors are responsible for the preparation of thesupplementaryinformationinaccordancewithGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesinthecontextofDisclosurePursuanttoBursaMalaysiaSecuritiesBerhadListingRequirements,asissuedbytheMalaysianInstituteofAccountants(“MIAGuidance”)andthedirectiveofBursaMalaysiaSecuritiesBerhad.Inouropinion,thesupplementaryinformationisprepared,inallmaterialrespects,inaccordancewiththeMIAGuidanceandthedirectiveofBursaMalaysiaSecuritiesBerhad.

OTHER MATTERS

This report ismadesolely to themembersof theCompany,asabody, inaccordancewithSection174of theCompaniesAct,1965inMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

PRICEWATERHOUSECOOPERS LOH LAY CHOON(No.AF:1146) (No.2497/03/16(J))CharteredAccountants CharteredAccountant

KualaLumpur26May2015

Independent Auditors’ Report(cont’d)

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List of Propertiesasat31March2015

LOCATION

DESCRIPTION

AREA(HECTARES)

TENURE

YEAROFEXPIRY

YEAROF

REVALUATION(R)/ACQUISITION(A)

APPROX.AGEOF

BUILDINGS(YEARS)

NETBOOKVALUE

(RM’000)

SABAH

1. DesaTalisaiNorth&SouthEstateBeluran

OilPalmEstateandPalmOilMill

4,072 Leasehold 2082 R:1997A:2002

24 105,657

2. MinatTeguhEstateSandakan


2,834 Leasehold 2031to2887

R:1997A:2000,2004

16 82,376

3. MeliauEstateBeluran

OilPalmEstate 2,257 Leasehold 2032,20872094,2097

R:1997A:1998,2000,

2002

50,781

4. SijasEstateLabuk/Sugut

OilPalmEstateandSeedProduction,

Training&ResearchCentre

1,011 Leasehold 2087 R:1997A:2002

13 24,495

5. BerakanMajuEstateLabuk/Sugut

OilPalmEstate 3,010 Leasehold 2030to2098

A:1999 80,721

6. SabangEstateLabuk/Sugut



A:1999,2002 13 136,346

7. RakananJayaNorth&SouthEstateLabuk/Sugut

OilPalmEstate 4,919 Leasehold 2030to2099

A:1999,2001 119,630

8. ExcellentChallengerI&IIEstateLabuk/Sugut



A:1997,2008 7 155,640

INDONESIA

9. BulunganEastKalimantan

OilPalmEstate 16,149 Leasehold/Location

Permit

2043&2045

A:2008 183,710

10. KutaiTimurEastKalimantan


25,174 Leasehold/Location

Permit

2044&2045

A:2008,2012,2014

3 554,317

11. LampungSumatra

OilPalmEstate 10,513 Leasehold/Location

Permit

2021&2029

A:2010 174,065

OTHER PROPERTIES OWNED

12. WismaIJMPlantationsSandakan,Sabah

OfficeBuilding 6,155m2 Leasehold 2102 A:2000 15 4,810

13. IJMEdibleOilSungaiMowtasSandakan

KernelCrushingPlant 22 Leasehold 2034,2038to

2095,2100

A:1996,1997,2002&2003

12 21,478

Note:EstatesincludeLand,PlantationExpenditure,InfrastructureandBuildings

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AuthorisedShareCapital : RM1,000,000,000

Issuedandpaid-upCapital : RM440,290,230

ClassofShares : OrdinarySharesofRM0.50each

VotingRights

Onshowofhands : 1vote

Onapoll : 1voteforeachshareheld

REGISTER OF SUBSTANTIAL SHAREHOLDERS

NUMBEROFSHARES PERCENTAGEOF DIRECT INDIRECT ISSUEDCAPITAL

IJMCorporationBerhad 486,015,986 – 55.19%EmployeesProvidentFundBoard 103,808,862 – 11.79%

DISTRIBUTION OF SHAREHOLDINGS

NUMBEROF NUMBEROF PERCENTAGEOFRANGEOFSHAREHOLDINGS SHAREHOLDERS SHARES ISSUEDCAPITAL

Lessthan100 9,608 358,639 0.04%100to1,000 3,675 1,376,873 0.16%1,001to10,000 3,073 11,591,692 1.32%10,001to100,000 792 22,853,267 2.59%100,001tolessthan5%ofissuedshares 199 263,199,141 29.89%5%andaboveofissuedshares 2 581,200,848 66.00%

17,349 880,580,460 100.00%

Analysis of Shareholdingsasat30June2015

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THIRTY LARGEST SHAREHOLDERS

PERCENTAGEOF NUMBEROFSHARES ISSUEDCAPITAL

1. IJMCorporationBerhad 486,015,986 55.19%

2. CitigroupNominees(Tempatan)SdnBhd 95,184,862 10.81%EmployeesProvidentFundBoard

3. DesaPlusSdnBhd 37,000,000 4.20%

4. KumpulanWangPersaraan(Diperbadankan) 33,651,900 3.82%

5. SGPlantations(Sabah)SdnBhd 21,949,341 2.49%

6. SakilanDesaSdnBhd 18,426,694 2.09%

7. CitigroupNominees(Tempatan)SdnBhd 8,361,800 0.95%EmployeesProvidentFundBoard(Affin-HWG)

8. AMSECNominees(Tempatan)SdnBhd 6,000,000 0.68%LembagaKemajuanTanahNegeriSabah(SabahLandDevelopmentBoard)(8317-1101)

9. MalaysiaNominees(Tempatan)SendirianBerhad 5,487,300 0.62%GreatEasternLifeAssurance(Malaysia)Berhad(LGF)

10. MalaysiaNominees(Tempatan)SendirianBerhad 5,405,300 0.61%GreatEasternLifeAssurance(Malaysia)Berhad(LSF)

11. AmanahrayaTrusteesBerhad 5,040,250 0.57%AmanahSahamWawasan2020

12. MalaysiaNominees(Tempatan)SendirianBerhad 4,829,000 0.55%GreatEasternLifeAssurance(Malaysia)Berhad(LPF)

13. TokioMarineLifeInsuranceMalaysiaBhd 4,800,000 0.55%AsBeneficialOwner(PF)

14. AmanahrayaTrusteesBerhad 4,700,500 0.53%PublicIslamicSelectTreasuresFund

15. AmanahrayaTrusteesBerhad 4,455,700 0.51%PublicDividendSelectFund

16. HSBCNominees(Asing)SdnBhd 3,600,000 0.41%ExemptANforTheHongkongandShanghaiBankingCorporationLimited(HBAP-SGDIV-ACCL)

17. AmanahrayaTrusteesBerhad 3,257,200 0.37%PublicSavingsFund

18. AmanahrayaTrusteesBerhad 3,075,100 0.35%PublicIslamicDividendFund

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Analysis of Shareholdings(cont’d)

THIRTY LARGEST SHAREHOLDERS (cont’d)

PERCENTAGEOF NUMBEROFSHARES ISSUEDCAPITAL

19. MalaysiaNominees(Tempatan)SendirianBerhad 2,930,887 0.33%GreatEasternLifeAssurance(Malaysia)Berhad(DR)

20. MalaysiaNominees(Tempatan)SendirianBerhad 2,716,200 0.31%GreatEasternLifeAssurance(Malaysia)Berhad(PAR3)

21. CIMBCommerceTrusteeBerhad 2,604,800 0.30%PublicFocusSelectFund

22. CitigroupNominees(Tempatan)SdnBhd 2,552,300 0.29%BankNegaraMalaysiaNationalTrustFund(CIMB)

23. CitigroupNominees(Tempatan)SdnBhd 2,536,500 0.29%BankNegaraMalaysiaNationalTrustFund(HWANG)

24. AmanahrayaTrusteesBerhad 2,337,800 0.27%PBIslamicEquityFund

25. AmanahrayaTrusteesBerhad 2,321,700 0.26%AmanahSahamGemilangforAmanahSahamKesihatan

26. VelayuthanA/LTanKimSong 2,307,250 0.26%

27. HSBCNominees(Tempatan)SdnBhd 2,218,000 0.25%HSBC(M)TrusteeBhdforPertubuhanKeselamatanSosial(AFFHWG6939-403)

28. MalaysiaNominees(Tempatan)SendirianBerhad 1,887,600 0.21%GreatEasternLifeAssurance(Malaysia)Berhad(LEEF)

29. PertubuhanKeselamatanSosial 1,880,860 0.21%

30. AmanahrayaTrusteesBerhad 1,650,100 0.19%AmanahSahamNasional3Imbang

779,184,930 88.49%

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DIRECTORS’ SHAREHOLDINGS IN IJM PLANTATIONS BERHAD AS AT 30 JUNE 2015

NUMBEROFSHARES PERCENTAGEOFNAMEOFDIRECTORS DIRECT INDIRECT ISSUEDCAPITAL

TanSriDato’WongSeeWah – – –JosephTekChoonYee – – –PurushothamanA/LKumaran 877,500 – 0.100%M.RamachandranA/LV.D.Nair – 25,000(¹) 0.003%PushpanathanA/LS.A.Kanagarayar – – –TanSriDato’TanBoonSeng@Krishnan 716,060 481,033(¹) 0.136%Dato’SoamHengChoon – – –

Note:


DIRECTORS’ SHAREHOLDINGS IN IJM CORPORATION BERHAD AS AT 30 JUNE 2015

NUMBEROFSHARES PERCENTAGEOFNAMEOFDIRECTORS DIRECT INDIRECT ISSUEDCAPITAL

JosephTekChoonYee 63,100 – 0.004%PurushothamanA/LKumaran 122,500 – 0.007%M.RamachandranA/LV.D.Nair – 43,000(¹) 0.002%TanSriDato’TanBoonSeng@Krishnan 2,896,833 210,986(¹) 0.174%Dato’SoamHengChoon 311,950 – 0.017%

DIRECTORS’ INTERESTS UNDER THE EMPLOYEE SHARE OPTION SCHEME OF IJM CORPORATION BERHAD AS AT 30 JUNE 2015

OPTIONSOVERORDINARY SHARESOFRM1EACHUNDER EMPLOYEESHAREOPTIONSCHEME BALANCEPROVISIONAL NO.OFOPTIONSAWARD NAMEOFDIRECTORS NUMBEROFOPTIONS+ UNEXERCISED

FirstAwardon24.12.2012 JosephTekChoonYee 52,500 – PurushothamanA/LKumaran 52,500 – Dato’SoamHengChoon 57,750 134,700

SecondAwardon24.12.2013 JosephTekChoonYee 105,000 – PurushothamanA/LKumaran 105,000 65,800

ThirdAwardon24.12.2014 JosephTekChoonYee 75,000 – Dato’SoamHengChoon 467,500 –

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Analysis of Shareholdings(cont’d)

DIRECTORS’ INTERESTS UNDER THE EMPLOYEE SHARE GRANT PLAN OF IJM CORPORATION BERHAD AS AT 30 JUNE 2015

BALANCEPROVISIONALNUMBER OFORDINARYSHARESOF RM1EACHUNDEREMPLOYEE SHAREGRANTPLAN+

PERFORMANCE RETENTIONAWARD NAMEOFDIRECTORS SHAREPLAN++ SHAREPLAN+++

FirstAwardon15.04.2013 JosephTekChoonYee 24,250 9,700 PurushothamanA/LKumaran 24,250 9,700 TanSriDato’TanBoonSeng@Krishnan 98,250 25,300 Dato’SoamHengChoon 24,250 9,700

SecondAwardon15.04.2014 JosephTekChoonYee 48,500 19,400 PurushothamanA/LKumaran 48,500 19,400

ThirdAwardon15.04.2015 JosephTekChoonYee 48,500 19,400 PurushothamanA/LKumaran 48,500 19,400 Dato’SoamHengChoon 196,500 50,600

Notes:


+ ThevestingoftheOptionsand/orSharestotheeligibleDirectorsaresubjecttothefulfillmentoftherelevantvestingconditionsasattherelevantvestingdates

++ Thequantumofsharestobevestedmayvaryfrom0%to200%ofthenumberofsharesprovisionallyawarded

+++Thequantumofsharestobevestedmayvaryfrom0%to150%ofthenumberofsharesprovisionallyawarded

Exceptasdisclosedabove,noneoftheDirectorshadanyinterestinthesecuritiesoftheCompanyandtherelatedcompaniesoftheCompany.

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Notice of Annual General Meeting

NOTICE IS HEREBY GIVENthatthe30thAnnualGeneralMeeting(“AGM”)ofIJMPLANTATIONSBERHAD(133399-A)willbeheldattheVictorianBallroom,Level1,HolidayVillaHotel&SuitesSubang,9JalanSS12/1,47500SubangJaya,SelangorDarulEhsan,MalaysiaonFriday,21August2015,at3.00p.m.totransactthefollowingmatters:

1. Toreceivetheauditedfinancialstatementsfortheyearended31March2015togetherwiththereportsoftheDirectorsandAuditorsthereon.

2. ToelectretiringDirectorsasfollows:

(a) M.RamachandranA/LV.D.Nair

(b) PurushothamanA/LKumaran

(c) Dato’SoamHengChoon

(RESOLUTION 1)

(RESOLUTION 2)

(RESOLUTION 3)

3. To reappoint PricewaterhouseCoopers as Auditors and to authorise the Directors to fix theirremuneration.

(RESOLUTION 4)

4. Asspecialbusinesstoconsiderandpassthefollowingresolutions:

(a) RETENTION OF TAN SRI DATO’ WONG SEE WAH AS AN INDEPENDENT NON-EXECUTIVEDIRECTOR

“THATTanSriDato’WongSeeWahshallcontinuetoserveasanIndependentNon-ExecutiveDirector of the Company notwithstanding that his tenure as an independent director hasexceededacumulativetermofnine(9)years.”

(b) DIRECTORS’FEES

“THATtheDirectors’feesofRM630,000fortheyearended31March2015beapprovedtobedividedamongsttheDirectorsinsuchmannerastheymaydetermine.”

(c) AUTHORITYTOISSUESHARESUNDERSECTION132D

“THAT the Directors be and are hereby authorised, pursuant to Section 132D of theCompaniesAct1965,toallotandissuenotmorethantenpercent(10%)oftheissuedsharecapitaloftheCompanyatanytime,uponsuchtermsandconditionsandforsuchpurposesas theDirectors in theirabsolutediscretiondeemfitor inpursuanceofoffers,agreementsoroptions tobemadeorgrantedby theDirectorswhile thisapproval is in force, and thatthe Directors be and are hereby further authorised to make or grant offers, agreementsor options which would or might require shares to be issued after the expiration of theapprovalhereof.”

(d) PROPOSEDRENEWALOFSHAREBUY-BACKAUTHORITY

“THAT the Directors be and are hereby authorised to purchase the ordinary shares of theCompanythroughthestockexchangeofBursaMalaysiaSecuritiesBerhadatanytimeuponsuch terms and conditions as the Directors in their absolute discretion deem fit providedthat:

(i) theaggregatenumberofsharespurchased(whicharetobetreatedastreasuryshares)doesnotexceedtenpercent(10%)oftheissuedcapitaloftheCompany;and

(ii) thefundsallocatedforthepurchaseofsharesshallnotexceed itsretainedprofitsandsharepremiumaccount;

AND THAT the Directors be and are hereby further authorised to deal with the treasuryshares in their absolute discretion (which may be distributed as dividends, resold and/orcancelled)

(RESOLUTION 5)

(RESOLUTION 6)

(RESOLUTION 7)

(RESOLUTION 8)

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Notice of Annual General Meeting(cont’d)

ANDTHATsuchauthorityshallcontinuetobeinforceuntil:

(a) theconclusionofthenextAnnualGeneralMeeting(“AGM”);

(b) theexpirationoftheperiodwithinwhichthenextAGMisrequiredbylawtobeheld;or

(c) revokedorvariedinageneralmeeting;

whicheveroccursfirst.”

ByOrderoftheBoard

NG YOKE KIANCompanySecretaryMAICSA7018150

PetalingJaya30July2015

Notes:

1. RETIREMENT OF DIRECTORS

TheResolution1, if approved,will authorise the continuity inofficeof theDirector (who is over theageof 70 years)until thenextAGMpursuant toSection129(6)oftheCompaniesAct,1965.

AnannualassessmentontheeffectivenessofeachDirector(includingtheindependenceofIndependentNon-ExecutiveDirectors)hasbeenundertakenforthefinancialyearended31March2015.

2. RETENTION OF TAN SRI DATO’ WONG SEE WAH AS AN INDEPENDENT NON-EXECUTIVE DIRECTOR

TheResolution5,ifapproved,willauthorisethecontinuityofTanSriDato’WongSeeWahasanIndependentNon-ExecutiveDirectoroftheCompany.

TanSriWong,theIndependentNon-ExecutiveChairmanoftheCompany,willcompletethe9-yeartenureasanIndependentNon-ExecutiveDirectoron16August2015.BasedontheannualassessmentcarriedoutbytheNomination&RemunerationCommittee(“NRC”),theBoard isoftheopinionthatdespiteservingformorethannine(9)years,TanSriWongcontinuesexercisingstrongindependentjudgement.Hecontinuestoseekclarification,whennecessary, andexpresseshis viewsanddebates issuesobjectively, besides challengingManagementon important issues raisedat various formal andinformalmeetings.Furthermore,thein-depthanduptodateknowledgeoftheGroup’sbusinessoperationsandbusinessenvironmentpossessedbyTanSriWonghasandwouldcontinuetoenablehimtodischargetheroleasanIndependentDirectoreffectively.TheNRCandtheBoardrecognisethebenefitsoftheexperienceandstabilitybroughtbyTanSriWongduetohislong-serviceontheBoard,andasanactiveparticipantinthecorporatefraternity,whichservetheinterestoftheCompanyanditsshareholders.Assuch,theNRCandtheBoardwouldliketorecommendandretainTanSriWongasanIndependentDirectorandChairmanoftheCompany.

3. DIRECTORS’ FEES

TheResolution6,ifapproved,willauthorisethepaymentofDirectors’feespursuanttoArticle91oftheArticlesofAssociation.

4. AUTHORITY TO ISSUE SHARES UNDER SECTION 132D

TheResolution7,ifapproved,willempowertheDirectorstoissueupto10%oftheissuedsharecapitaloftheCompany,forpurposesoffundingfutureinvestmentprojects,workingcapital,acquisitionsand/orsoforth.Theapprovalisarenewalofgeneralmandateandissoughttoprovideflexibilityandavoidanydelayandcostinconveningageneralmeetingforsuchissuanceofsharesforfundraisingactivities,includingplacementofshares.Theauthorisation,unlessrevokedorvariedbytheCompanyatageneralmeeting,willexpireatthenextAGM.Atthisjuncture,thereisnodecisiontoissuenewshares.Shouldtherebeadecisiontoissuenewsharesaftertheauthorisationissought,theCompanywillmakeanannouncementoftheactualpurposeandutilisationofproceedsarisingfromsuchissuanceofshares.

5. SHARE BUY-BACK AUTHORITY

ThedetailsoftheproposalaresetoutintheShareBuy-backStatementdated30July2015,whichisdespatchedtogetherwiththeAnnualReport2015.

6. APPOINTMENT OF PROXY AND ENTITLEMENT OF ATTENDANCE

(i) aproxymaybutneednotbeamember;

(ii) amember,otherthananexemptauthorisednominee,isentitledtoappointuptotwo(2)proxies;

(iii) amember,whoisanauthorisednominee,mayappointuptotwo(2)proxiesinrespectofeachSecuritiesAccountheld;whereas,anexemptauthorisednomineemayappointmultipleproxiesinrespectofeachSecuritiesAccountheld;

(iv) amemberwhoappointsaproxymustdulyexecute theFormofProxy,and ifmore thanone (1)proxy isappointed, thenumberof shares toberepresentedbyeachproxymustbeclearlyindicated;

(v) acorporatememberwhoappointsaproxymustexecutetheFormofProxyundersealorthehandofitsofficerorattorneydulyauthorised;

(vi) thedulyexecutedFormofProxymustbedepositedattheRegisteredOfficebefore4.00p.m.on20August2015;

(vii) onlymemberswhosenamesappearintheRecordofDepositorsasat14 August 2015willbeentitledtoattendandvoteatthemeeting;and

(viii) theAnnualReport,ShareBuy-backStatement,andFormofProxyareavailablefordownloadatwww.ijm.com/plantation.

7. POLL VOTING

AlltheResolutionswillbeputtovotebypoll.

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I/We______________________________________________________________________________________________

NRIC/Passport/CompanyNo.:__________________________________MobilePhoneNo.:_________________________

CDSAccountNo.:___________________________________________NumberofSharesHeld:_____________________

Address:___________________________________________________________________________________________

__________________________________________________________________________________________________

beingamemberofIJM PLANTATIONS BERHAD(133399-A),herebyappoint:

(1) Nameofproxy:_________________________________________NRICNo.:________________________________

Address:_______________________________________________________________________________________

______________________________________________________________________________________________

_____________________________________________________ NumberofSharesRepresented:_______________

(2) Nameofproxy:_________________________________________NRICNo.:________________________________

Address:_______________________________________________________________________________________

______________________________________________________________________________________________

_____________________________________________________ NumberofSharesRepresented:_______________

or failinghim/her, theChairmanof themeeting, asmy/our proxy to vote forme/us and onmy/our behalf at the 30thAnnual General Meeting (“AGM”) of IJM PLANTATIONS BERHAD to be held at the Victorian Ballroom, Level 1, HolidayVillaHotel&SuitesSubang,9JalanSS12/1,47500SubangJaya,SelangorDarulEhsan,MalaysiaonFriday,21August2015,at3.00p.m.,andatanyadjournmentthereof,inthemannerindicatedbelow:

NO. RESOLUTIONS FOR AGAINST

1. ToreappointM.RamachandranA/LV.D.NairasDirectortoholdofficeuntilthenextAGM

2. ToreappointPurushothamanA/LKumaranasDirector

3. ToreappointDato’SoamHengChoonasDirector

4. ToreappointPricewaterhouseCoopersasAuditorsandtoauthorisetheDirectorstofixtheirremuneration

5. ToretainTanSriDato’WongSeeWahasanIndependentNon-ExecutiveDirector

6. ToapprovethepaymentofDirectors’feesofRM630,000

7. Toauthorisetheissuanceofupto10%oftheissuedsharecapitaloftheCompany

8. ToapprovetheProposedRenewalofShareBuy-BackAuthority

Please indicatewith“X”howyouwishyourvote tobecast. In theabsenceofspecific instruction,yourProxywillvoteorabstainashe/shethinksfit.

Signed(andsealed)this__________________dayof__________________2015

Signature(s):_______________________________________________________

Form of Proxy

Notes:

(i) aproxymaybutneednotbeamember;

(ii) amember,otherthananexemptauthorisednominee,isentitledtoappointuptotwo(2)proxies;

(iii) amember,whoisanauthorisednominee,mayappointuptotwo(2)proxiesinrespectofeachSecuritiesAccountheld;whereas,anexemptauthorisednomineemayappointmultipleproxiesinrespectofeachSecuritiesAccountheld;

(iv) amemberwhoappointsaproxymustdulyexecutetheFormofProxy,andifmorethanone(1)proxyisappointed,thenumberofsharestoberepresentedbyeachproxymustbeclearlyindicated;

(v) acorporatememberwhoappointsaproxymustexecutetheFormofProxyundersealorthehandofitsofficerorattorneydulyauthorised;

(vi) thedulyexecutedFormofProxymustbedepositedattheRegisteredOfficebefore4.00p.m.on20August2015;

(vii) onlymemberswhosenamesappearintheRecordofDepositorsasat14 August 2015willbeentitledtoattendandvoteatthemeeting;

(viii) theAnnualReport,ShareBuy-backStatement,andFormofProxyareavailablefordownloadatwww.ijm.com/plantation;and

(ix) alltheResolutionswillbeputtovotebypoll.

TheCompanySecretary

IJM PLANTATIONS BERHAD(133399-A)

2ndFloor,WismaIJMJalanYongShookLin46050PetalingJayaSelangorDarulEhsanMalaysia

stamp

Corporate Information

REGISTERED OFFICE

2nd Floor, Wisma IJM Jalan Yong Shook Lin 46050 Petaling Jaya Selangor Darul Ehsan MalaysiaTel : +603 7985 8288Fax : +603 7952 1200E-mail : [email protected] : www.ijm.com

SHARE REGISTRAR

Tricor Investor Services Sdn BhdLevel 17, The Gardens North TowerMid Valley CityLingkaran Syed Putra59200 Kuala LumpurMalaysiaTel : +603-2264 3883Fax : +603-2282 1886E-mail : [email protected] : www.my.tricorglobal.com

AUDITORS

PricewaterhouseCoopers (No. AF: 1146) Chartered Accountants Level 10, 1 Sentral Jalan Rakyat Kuala Lumpur Sentral 50706 Kuala Lumpur MalaysiaTel : +603 2173 1188Fax : +603 2173 1288Website : www.pwc.com/my

STOCK EXCHANGE LISTING

Main Market of Bursa Malaysia Securities Berhad since 2 July 2003BMSB Code : 2216Reuters Code : IJMP.KLBloomberg Code : IJMP MK

HEAD OFFICE

Wisma IJM PlantationsLot 1, Jalan Bandar Utama Mile 6, Jalan Utara 90000 Sandakan Sabah, MalaysiaTel +6089 667 721Fax +6089 667 728E-mail [email protected] www.ijm.com/plantation

(133399-A)

PRINCIPAL BANKERS

1. Malayan Banking Berhad2. United Overseas Bank

(Malaysia) Berhad3. Oversea-Chinese Banking

Corporation Limited4. CIMB Bank Berhad5. The Bank of Nova Scotia Berhad6. PT. Bank Mandiri (Persero), Tbk7. PT. Bank Danamon, Tbk8. PT. Bank CIMB Niaga, Tbk

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