MHC - Annual Report 2020 (Bursa)

[196001000393 (4060-V)]
(Incorporated in Malaysia)
2020
Annual Report
[196001000393 (4060-V)]
Contents
02 Notice of Annual General Meeting
05 Corporate Information
06 Corporate Structure
07 Profile of Directors
11 Profile of Key Senior Management
13 Chairman’s Statement
15 Penyataan Pengerusi
17 Five-Year Financial Highlights
18 Five-Year Plantation Statistics
19 Management’s Discussion and Analysis
24 Sustainability Statement
34 Corporate Governance Overview Statement
44 Statement of Directors’ Responsibility
45 Statement on Risk Management and
Internal Control
50 Audit Committee Report
52 Additional Compliance Information
53 List of Properties
Financial Statements
58 Directors’ Report
63 Statement by Directors & Statutory Declaration
64 Independent Auditors’ Report
to the Members of MHC Plantations Bhd
71 Statements of Profit or Loss and Other Comprehensive Income
72 Statements of Financial Position
73 Statements of Changes in Equity
76 Statements of Cash Flows
79 Notes to the Financial Statements
163 Statement of Shareholdings
Form of Proxy
[196001000393 (4060-V)]
Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN that the Sixty-First (61st) Annual General Meeting (“AGM”) of the Company will
be held at Kompleks Pejabat Behrang 2020, Jalan Persekutuan 1, 35900 Tanjung Malim, Perak, Malaysia on
Monday, 31 May 2021 at 11.30 a.m. for the following purposes:
AGENDA
ORDINARY
AS ORDINARY BUSINESS: RESOLUTION NO.
1. To receive the Audited Financial Statements for the financial year ended Please refer to
31 December 2020, together with the Directors’ and Auditors’ Reports thereon. Note 1

2. To approve the payment of Directors’ benefits payable to Non-Executive Directors 1
up to RM162,000 from 61st AGM until the next AGM of the Company.

3. To re-elect the following Directors retiring in accordance with the Company’s
Constitution:
3.1 Puan Wan Salmah Binti Wan Abdullah 2
3.2 Mr. Heng Beng Fatt 3

Annual Report 2020
4. To re-appoint Messrs PKF as Auditors of the Company to hold office until the next 4
AGM and to authorise the Directors to fix their remuneration.
As SPECIAL BUSINESS, to consider and, if thought fit, with or without any modification,
2 to pass the following resolutions:
5. RETENTION OF INDEPENDENT NON-EXECUTIVE DIRECTORS UNTIL THE

NEXT AGM IN ACCORDANCE WITH THE MALAYSIAN CODE OF CORPORATE
GOVERNANCE (“MCCG”)
5.1 That Mr. Chan Kam Leong, who has served as an Independent Non- 5
Executive Director of the Company for a cumulative term of more than
twelve (12) years to continue to act as an Independent Non-Executive
Director of the Company.
5.2 That subject to her re-election as a Director of the Company under Ordinary 6
Resolution 2, Puan Wan Salmah Binti Wan Abdullah, who has served as
an Independent Non-Executive Director of the Company for a cumulative
term of more than nine (9) years to continue to act as an Independent
Non-Executive Director of the Company.
6. PROPOSED AUTHORITY TO ALLOT AND ISSUE SHARES IN GENERAL 7

PURSUANT TO SECTION 76 OF THE COMPANIES ACT, 2016
“THAT pursuant to Section 76 of the Companies Act, 2016, the Directors be and
are hereby empowered to allot and issue shares in the Company at any time
and from time to time until the next AGM and upon such terms and conditions
and for such purposes as the Directors may, in their absolute discretion, deem
fit provided the aggregate number of shares to be issued does not exceed ten
per centum (10%) of the total number of issued shares of the Company at the
time of issue, subject always to the Constitution of the Company and approval
for the listing of and quotation for the additional Shares so issued on the Bursa
Malaysia Securities Berhad (“Bursa Securities”) and other relevant bodies where
such approval is necessary.”
[196001000393 (4060-V)]
Notice of Annual General Meeting (cont’d)
7. To transact any other business of which due notice shall have been given in
accordance with the Companies Act, 2016.
FURTHER NOTICE IS HEREBY GIVEN THAT only members whose names appear on the Record of Depositors
as at 21 May 2021 shall be entitled to attend the AGM or appoint proxies in his/her stead or in the case of a
corporation, a duly authorised representative to attend and to vote in his/her stead.
By Order of the Board
CHAN EOI LENG

(SSM PC No. 202008003055)
(MAICSA 7030866)
Chartered Secretary
Ipoh, Perak Darul Ridzuan, Malaysia

30 April 2021
Annual Report 2020

Notes:
1. PROXY
A member, other than an exempt authorised nominee is entitled to appoint one (1) or two (2) proxies to attend 3
and vote instead of him/her. A proxy must be 18 years and above and need not be a member of the Company.
Where a member appoints two (2) proxies, the appointments shall be invalid unless he/she specifies the proportions
of his/her holdings to be represented by each proxy.
Where a member of the Company is an Exempt Authorised Nominee which holds ordinary shares in the Company
in an Omnibus Account, there is no limit to the number of proxies which the Exempt Authorised Nominee may
appoint in respect of each Omnibus Account it holds but the proportion of holdings to be represented by each
proxy must be specified.
The instrument appointing a proxy shall be in writing under the hand of the appointer or his/her attorney duly
authorised in writing or if the appointer is a corporation, either under the corporation’s seal or under the hand of
an officer or attorney duly authorised. If under the hand of attorney/authorised officer, the Power of Attorney or
Letter of Authorisation must be attached.
The instrument appointing a proxy must be deposited at the Share Registrar’s office of the Company, Boardroom
Share Registrars Sdn. Bhd. at 11th Floor, Menara Symphony, No. 5, Jalan Professor Khoo Kay Kim, Seksyen 13,
46200 Petaling Jaya, Selangor, Malaysia not less than 48 hours before the time appointed for holding the Meeting
or adjourned Meeting either by hand, post, courier or electronic mail to [email protected]
or fax (603)78904670 before the Form of Proxy lodgement cut-off time as mentioned above, otherwise the
instrument of proxy should not be treated as valid.
For verification purposes, members and proxies are required to produce their original identity card at the registration
counter. No person will be allowed to register on behalf of another person even with the original identity card of
that other person.
2. AUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020
Agenda 1 is meant for discussion only as Section 340(1)(a) of the Companies Act, 2016 only requires the Audited
Financial Statements to be laid before the Company at the AGM and do not require shareholders’ approval. Hence,
this Agenda is not put forward for voting.
[196001000393 (4060-V)]
Notice of Annual General Meeting (cont’d)
Notes: (cont’d)
3. DIRECTORS’ BENEFITS TO NON-EXECUTIVE DIRECTORS

Section 230(1) of the Companies Act, 2016 provides amongst others, that “fees” of the Directors and “any
benefits” payable to Directors of a listed company and its subsidiaries shall be approved at a general meeting.
Pursuant thereto, shareholders’ approval is sought for this payment in Ordinary Resolution 1 for Payment of
Directors’ benefits to Non-Executive Directors from 61st AGM until the next AGM of the Company.
The Directors’ benefits payable to the Non-Executive Directors from 61st AGM until the next AGM of the Company
are calculated based on the current composition of the Board and Board Committees and the number of meetings
scheduled for the Board and Board Committees.
4. RETENTION OF INDEPENDENT NON-EXECUTIVE DIRECTORS

Practice 4.2 of the MCCG provides that shareholders’ approval be sought in the event that the Company intends
for an Independent Director who has served in the capacity for more than nine (9) years, to continue to act as
Independent Director of the Company.
The Board is recommending to the shareholders for Mr. Chan Kam Leong and Puan Wan Salmah Binti Wan
Abdullah who have served as Independent Non-Executive Directors of the Company for a cumulative term of more
than twelve (12) years and eleven (11) years respectively to continue to act as Independent Non-Executive Directors
Annual Report 2020
of the Company.
The Board through the Nomination Committee had assessed and endorsed that Mr. Chan Kam Leong and Puan
Wan Salmah Binti Wan Abdullah be retained as Independent Non-Executive Directors of the Company as they
have continued to display high level of integrity and are objective in their judgement and decision-making in the
4 best interest of the Company, shareholders and stakeholders and are able to express unbiased views without any
influence. The detailed justifications are as set out in the Corporate Governance Overview Statement.
Pursuant to the MCCG, the Company would use two-tier voting process in seeking shareholders’ approval to retain
Mr. Chan Kam Leong.
5. PROPOSED AUTHORITY TO ALLOT AND ISSUE SHARES IN GENERAL PURSUANT TO SECTION 76 OF THE
COMPANIES ACT, 2016
The Company had, during its Sixtieth (60th) AGM held on 23 July 2020, obtained its shareholders’ approval for
the general mandate for issuance of shares pursuant to Section 76 of the Act. As at the date of this notice, the
Company did not issue any shares pursuant to this mandate obtained.
The proposed Ordinary Resolution 7 is a renewal of the general mandate for issuance of shares by the Company
under Section 76 of the Companies Act, 2016. The mandate, if passed, will empower the Directors from the date
of the above AGM until the next AGM, to allot and issue up to a maximum of 10% of the total number of issued
shares of the Company at the time of issue (other than bonus or rights issue) for such purposes as they consider
would be in the best interest of the Company. This would eliminate any delay arising from and cost involved in
convening a general meeting to obtain approval of the shareholders for such issuance of shares. This authority will
unless revoked or varied by the Company at a general meeting, will expire at the next AGM of the Company.
This authority will provide flexibility to the Company for any possible fund raising activities, including but not limited
to further placing of shares for purpose of funding investment project(s), working capital and/or acquisition. At
this juncture, there is no decision to issue new shares. If there should be a decision to issue new shares after the
general mandate is sought, the Company will make an announcement in respect thereof.
ANNUAL REPORT 2020, CORPORATE GOVERNANCE REPORT 2020

The Annual Report 2020 and Corporate Governance Report 2020 may be downloaded at www.mhc.com.my
[196001000393 (4060-V)]
Corporate Information
DIRECTORS PRINCIPAL PLACE OF BUSINESS

Dato’ Seri Mah King Seng Kompleks Pejabat Behrang 2020
(Executive Chairman) Jalan Persekutuan 1
Tan Sri Dr. Mah King Thian 35900 Tanjung Malim
(Managing Director) Perak Darul Ridzuan
Chan Kam Leong Malaysia
(Independent Non-Executive Director) Tel. No. +605-4590001/2
Wan Salmah Binti Wan Abdullah Fax No. +605-4590003
Website: http://www.mhc.com.my
(Independent Non-Executive Director)
Heng Beng Fatt
SHARE REGISTRAR
(Independent Non-Executive Director) Boardroom Share Registrars Sdn. Bhd.
Mah Li-Na 11th Floor, Menara Symphony
(Alternate Director to Dato’ Seri Mah King Seng) No. 5, Jalan Prof. Khoo Kay Kim
Dr. Jordina Mah Siu Yi Seksyen 13
(Alternate Director to Tan Sri Dr. Mah King Thian) 46200 Petaling Jaya
Selangor Darul Ehsan
AUDIT COMMITTEE Malaysia
Chan Kam Leong (Chairman) Tel. No. +603-78904700
Annual Report 2020

Wan Salmah Binti Wan Abdullah Fax No. +603-78904670
Heng Beng Fatt
COMPANY SECRETARY
EXECUTIVE COMMITTEE Chan Eoi Leng
Datin Seri Ooi Ah Thin (Chairperson) (SSM PC No. 202008003055)
5
Dato’ Seri Mah King Seng (MAICSA 7030866)
Tan Sri Dr. Mah King Thian
AUDITORS
Messrs PKF
NOMINATING COMMITTEE
Lot 23-1 & 25-1, 1st Floor
Chan Kam Leong (Chairman) Lintas Plaza
Wan Salmah Binti Wan Abdullah Lorong Lintas Plaza
Heng Beng Fatt 88300 Kota Kinabalu
Sabah
REMUNERATION COMMITTEE Malaysia
Tan Sri Dr. Mah King Thian (Chairman) Tel. No. 088-266723
Chan Kam Leong Fax No. 088-267721
Wan Salmah Binti Wan Abdullah
PRINCIPAL BANKERS
COMMITTEE TO REVIEW Ambank (M) Berhad
PRESS OR PUBLIC ANNOUNCEMENTS Malayan Banking Berhad
Dato’ Seri Mah King Seng Public Bank Berhad
Tan Sri Dr. Mah King Thian RHB Bank Berhad
STOCK EXCHANGE LISTING

REGISTERED OFFICE
Main Market of Bursa Malaysia Securities Berhad
55A Medan Ipoh 1A
Stock Code : 5026
Medan Ipoh Bistari
Stock Short Name : MHC
31400 Ipoh
Perak Darul Ridzuan COUNTRY OF INCORPORATION
Malaysia Malaysia
Tel. No. +605-5474833
Fax No. +605-5474363
[196001000393 (4060-V)]
Corporate Structure
100% Champion Point Majuperak Sawit

Sdn. Bhd. 100%
Sdn. Bhd.
100% Majuperak Plantation Sharikat Muzwin

Sdn. Bhd. 99.36%
Bersaudara Sdn. Bhd.
100% Yew Lee Holdings 100% Hutan Melintang

Sdn. Berhad Plantations Sdn. Berhad
4.60% Ladang Cepat-KPD 60%

20%
Sdn. Bhd.
95.40% Anson Oil Industries 100% Ayu Sempurna Sdn. Bhd.

Sdn. Bhd.
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100% Sungguh Mulia Sdn. Bhd.
100% Mah Hock Company

Sendirian Berhad 100% Prima Semasa Sdn. Bhd.
100% Bakara Sdn. Bhd.

6 25% 100% Libarran Island Resort Sdn. Bhd. 100% Minelink Sdn. Bhd.
100% Kovusak Sdn. Bhd.

75% Telok Anson Hotel
Sdn. Berhad 100% Sri Likas Mewah Sdn. Bhd. 100% Ultisearch Trading Sdn. Bhd.
100% Razijaya Sdn. Bhd.

100% Ayu Gemilang
Sdn. Bhd. 100% Wong Tet-Jung Plantations Sdn .Bhd. 100% Suara Baru Sdn. Bhd.
Cepatwawasan Group 100% Syarikat Melabau Sdn. Bhd. 100% Gelang Usaha Sdn. Bhd.
38.50%
Berhad
100% Swifturn Sdn. Bhd.
100% Cepatwawasan Sdn. Bhd. 100% Jutategak Sdn. Bhd.
100% Liga Semarak Sdn. Bhd.

51%
100% Tentu Cergas Sdn. Bhd.
49% Prolific Yield Sdn. Bhd. 100% Tentu Bernas Sdn. Bhd.
100% Power Precint Sdn. Bhd.

100% Cash Nexus (M) Sdn. Bhd.
Legend 30%
Plantation 70% Cash Horse (M) Sdn. Bhd.
66.13% Timah Resources Limited

Investment Holding
49%
Property Development
Plantation / Quarry 100% Magnum Kapital Sdn. Bhd. 51% Mistral Engineering Sdn. Bhd.
Palm oil mill / plantation 100% Hikayat Anggun Sdn. Bhd.
Power generation 100% Aspenglade Sdn. Bhd.
Dormant 100% Ekuiti Etika Sdn. Bhd.

[196001000393 (4060-V)]
Profile of Directors
Dato’ Seri Mah King Seng Tan Sri Dr. Mah King Thian
Executive Chairman Managing Director
Aged 62, Male, Malaysian Aged 57, Male, Malaysian
• Dato’ Seri Mah King Seng joined the Board • Tan Sri Dr. Mah King Thian joined the Board
of Directors on 20 September 1978. He was of Directors on 28 December 1992. He is
appointed as an Executive Chairman on 13 currently the Managing Director responsible
July 2005. for the Group’s operations, corporate and
• He is also a member of the Executive legal affairs, accounting and finance.
Committee and the Committee for the review • He is also a member of the Executive
of press releases or public announcements. Committee, the Chairman of the Remuneration
• He joined the Company in 1978 after Committee and the Committee for the review
graduating from the University of Minnesota, of press releases or public announcements.
United States of America with a degree • He graduated from Monash University,
in Agricultural Science and has been with Australia with a Bachelor of Economics
the Group since then, garnering more than Degree majoring in Accounting in 1986 and
twenty years’ experience in managing the also a Bachelor of Laws Degree in 1987. He
operations of the Group’s estates, mills and was subsequently admitted and enrolled as
hotel. In 1980, he attended the Palm Oil Mill an Advocate and Solicitor of the High Court
Annual Report 2020

Engineer/Executive Training course on palm of Malaya in 1989, and he then joined the
oil mill operations organised by the Malaysian Company in the same year. He is also a Fellow
Oil Palm Growers Council. He subsequently Member of Certified Practising Accountant
obtained his Bachelor of Law Degree in 1985 Australia (FCPA).
from the University of Buckingham, United • In 2018, Tan Sri Dr. Mah King Thian successfully
Kingdom and was admitted and enrolled as 7
completed his postgraduate study on oil
an Advocate and Solicitor of the High Court palm renewable energy businesses and was
of Malaya in 1990. conferred the degree of Doctor of Philosophy
• He is a Director of Behrang 2020 Sdn. Bhd. and (PhD) by the Liverpool Business School in the
several other private limited companies. He is United Kingdom.
also the Managing Director of Cepatwawasan • He is a Director of Behrang 2020 Sdn. Bhd.
Group Berhad, a company listed on the and several other private limited companies.
Main Market of Bursa Securities. He is also He is also the Executive Chairman of
the Managing Director of Timah Resources Cepatwawasan Group Berhad, a company
Limited, an Australian incorporated company listed on the Main Market of Bursa Securities.
listed on the Australian Securities Exchange. He is also the Executive Chairman of Timah
• He is a son of Datin Seri Ooi Ah Thin who is a Resources Limited, an Australian incorporated
Director and substantial shareholder of Dato company listed on the Australian Securities
Mah Pooi Soo Realty Sdn. Bhd. (“DMR”), a Exchange.
major shareholder of the Company, and the • He is a son of Datin Seri Ooi Ah Thin who is a
elder brother of Tan Sri Dr Mah King Thian, Director and substantial shareholder of Dato
the Managing Director of the Company, who Mah Pooi Soo Realty Sdn. Bhd. (“DMR”), a
is also a Director and substantial shareholder major shareholder of the Company, and the
of DMR. younger brother of Dato’ Seri Mah King Seng,
• Dato’ Seri Mah King Seng is also a Director the Executive Chairman of the Company, who
and substantial shareholder of DMR. He is is also a Director and substantial shareholder
deemed interested in certain recurrent related of DMR.
party transactions carried out in the ordinary • Tan Sri Dr. Mah King Thian, is also a Director
course of business between the Company and and substantial shareholder of DMR. He
its Group with the DMR group and certain is deemed interested in certain recurrent
privately owned companies. related party transactions carried out in the
• He attended all the Board Meetings held ordinary course of business between the
during the financial year. Company and its Group with the DMR group
and certain privately owned companies.
• He attended all the Board Meetings held
during the financial year.
[196001000393 (4060-V)]
Profile of Directors (cont’d)
Mr. Chan Kam Leong Puan Wan Salmah Binti Wan Abdullah
Independent Non-Executive Director Independent Non-Executive Director
Aged 80, Male, Malaysian Aged 67, Female, Malaysian
• Mr. Chan Kam Leong was appointed to the • Puan Wan Salmah Binti Wan Abdullah was
Board on 21 October 2008 and is currently appointed to the Board on 10 July 2009 as
an Independent Non-Executive Director of the an Independent Non-Executive Director of the
Company. Company.
• He is the Chairman of the Audit Committee • She is also a member of the Audit Committee,
and Nominating Committee. He is also a Nominating Committee and Remuneration
member of the Remuneration Committee of Committee of the Company.
the Company. • She graduated from University Sains Malaysia
• He holds the qualifications of Bachelor of with a Bachelor of Social Science (Hons).
Science (Eng), Master of Science (Construction She has more than 20 years’ experience
Management), Professional Engineer, in property development and land related
Malaysia as well as Chartered Engineer, matters. She began her career working with
United Kingdom (UK). He is also members Perbadanan Kemajuan Negeri Perak (PKNP)
of The Institution of Civil Engineers, UK, The as a Project Officer and was promoted to
Annual Report 2020
Institution of Structural Engineers, UK, The Director of Land and Property and Director
Institution of Engineers, Malaysia (IEM) and of Land and Industrial Estate Development in
The Association of Consulting Engineers, 1995. She was also appointed as a Director
Malaysia. of some of the subsidiaries of PKNP. She had
8 • He had worked three years each in Kuala previously served as a Director of Majuperak
Lumpur and Singapore and three and a half Holdings Berhad from 1995 to June 2008.
years in London before founding K.L. Chan & • She does not have any family relationship with
Associates, of which he is still a partner. He any other Director and/or major shareholder
has more than forty-five years of experience of the Company and has no conflict of interest
in civil and structural engineering consultancy. with the Company.
He was also the winner of the TAN SRI HJ. • She attended all the Board Meetings held
YUSOFF PRIZE in 2007 for publishing an during the financial year.
outstanding paper in the IEM Journal.
• He is a Director of Cepatwawasan Group
Berhad, a company listed on the Main Market
of Bursa Securities.
• He does not have any family relationship with
any other Director and/or major shareholder
of the Company and has no conflict of interest
with the Company.
during the financial year.
[196001000393 (4060-V)]
Mr. Heng Beng Fatt Ms. Mah Li-Na

Independent Non-Executive Director Alternate Director to Dato’ Seri Mah King Seng
Aged 57, Male, Malaysian Aged 31, Female, Malaysian
• Mr. Heng Beng Fatt was appointed to the • Ms. Mah Li-Na was appointed to the Board
Board on 23 July 2010 as a Non-Independent on 7 March 2018 as an Alternate Director to
Non-Executive Director of the Company. On Dato’ Seri Mah King Seng.
10 August 2017, he was re-designated as • She initially graduated from the University
Independent Non-Executive Director. of Melbourne, Australia with a Bachelor of
• He is also a member of the Audit Committee Commerce, majoring in Accounting and
and Nominating Committee of the Company. Finance in 2010. Thereafter, she joined the
• He holds the qualification of Master of Chinese Language Programme in Tsinghua
Business Administration, University of Bath University, Beijing, China to enhance her
and is a member of the Malaysian Institute of fluency in Mandarin.
Accountants. • She went on to pursue her second degree,
• He has vast experience in accounting, finance, Bachelor of Laws with the University of
administration, business development and London and completed with a Second Upper
corporate affairs, having served in various Class Honours in 2016.
Annual Report 2020

capacities during his tenure with Golden • She has previously interned with KPMG
Screen Cinemas Sdn. Bhd. (“GSC”) namely as Malaysia, Forensics Accounting Department
Human Resources and Admin Manager (1998- in 2009, then proceeded to join the company
2000), Business Development Manager (1997- as an Associate in 2012. During her tenure
1998), Finance and Admin Manager (1995- there, she participated in investigations of 9
1997) and Accountant (1993-1995). He also financial frauds and was involved in the
served as an Accountant at Avery Malaysia preparation of the KPMG Fraud Survey Report
(1992-1993) and Ernst & Young (1988-1992). then.
Currently, he is the Chief Operating Officer, • She is an Alternate Director of Cepatwawasan
Malaysia for GSC. Group Berhad, a company listed on the Main
• He also serves on the Board of Enterprise Market of Bursa Securities and an Alternate
Advance System Intelligence Sdn. Bhd. and Director of Timah Resources Limited, an
as a committee member for the Malaysian Australian incorporated company listed on
Association of Film Exhibitors. the Australian Securities Exchange. She is also
• He does not have any family relationship with currently with Cepatwawasan Group Berhad
any other Director and/or major shareholder as Management Accountant and assists
of the Company and has no conflict of interest the Managing Director of Cepatwawasan
with the Company. Group Berhad, Dato’ Seri Mah King Seng in
management duties.
during the financial year. • She is the daughter of Dato’ Seri Mah King
Seng who is a Director and substantial
shareholder of Dato Mah Pooi Soo Realty
Sdn. Bhd. (“DMR”), a major shareholder
of the Company and the granddaughter of
Datin Seri Ooi Ah Thin, who is also a Director
and substantial shareholder of DMR.
[196001000393 (4060-V)]
Dr. Jordina Mah Siu Yi

Alternate Director to Tan Sri Dr. Mah King Thian
Aged 29, Female, Malaysian
• Dr. Jordina Mah Siu Yi was appointed to the Board on 7 March 2018 as an Alternate Director to Tan
Sri Dr. Mah King Thian.
• She obtained her Bachelor of Medicine and Bachelor of Surgery (MBChB) from the University of
Glasgow, United Kingdom (UK) in 2016. Upon graduation, she forwent her training post in the
NHS Hospitals in Durham, UK to pursue a corporate career. In anticipation of her current role, she
subsequently embarked on her postgraduate studies in Law in the UK, and successfully completed
her Bar Professional Training Course (BPTC) at CITY, University of London in July 2019. She has been
admitted to Lincoln’s Inn as a Barrister of England and Wales.
• She is an Alternate Director of Cepatwawasan Group Berhad, a company listed on the Main Market
of Bursa Securities and an Alternate Director of Timah Resources Limited, an Australian incorporated
company listed on the Australian Securities Exchange.
• She is the eldest daughter of Tan Sri Dr. Mah King Thian who is a Director and substantial shareholder
of Dato Mah Pooi Soo Realty Sdn. Bhd. (“DMR”), a major shareholder of the Company and the
granddaughter of Datin Seri Ooi Ah Thin, who is also a Director and substantial shareholder of DMR.
Annual Report 2020
• She has co-authored papers in international medical journals. Previously, she interned at World
Vision Australia in Melbourne, Messrs Wong Kian Kheong, Advocates & Solicitors in Kuala Lumpur
and the University Malaya Medical Centre.
10
CONVICTIONS FOR OFFENCES
None of the Directors has been convicted of any offence within the past five (5) years and there were no
public sanctions or penalties imposed by the relevant regulatory bodies during the financial year ended
31 December 2020.
[196001000393 (4060-V)]
Profile of Key Senior Management
Dato’ Seri Mah King Seng

Executive Chairman
Aged 62, Male, Malaysian
• Refer to the Profile of Directors on page 7.
Tan Sri Dr. Mah King Thian

Managing Director
• Refer to the Profile of Directors on page 7.
Mr. Soong Swee Koon

Chief Operating Officer
• Mr. Soong Swee Koon is a qualified engineer with a Steam Engineers Certificate of Competency (First
Grade).
• He started his career in power generation with Perak Hydro Electric Power Company (UK firm) in 1974.
Annual Report 2020

In the following years, he specialised in power generation, Hydro and Steam Thermal Power Plants, and
maintenance and workshop overhaul of Cummins Diesel Engines and generators. From 1980 to 1996, he
worked as an engineer in United Plantations Berhad. The palm oil mill under Mr. Soong’s management
was the winner of the Anugerah Award for Best Palm Oil Mill in Malaysia (2nd Place from year 1990-
1995). 11
• He served as senior engineer, technical advisor, project manager and regional consultant to a number of
energy companies from 1996 to 2010.
• He joined the Company in 2010 as Group Engineer and was appointed as Chief Operating Officer of
the Company on 15 November 2012. He is also the Executive Director of Timah Resources Limited, an
Australian incorporated company listed on the Australian Securities Exchange.
• He does not have any family relationship with any Director and/or major shareholder of the Company and
has no conflict of interest with the Company.
• He has not been convicted of any offence within the past five (5) years and there were no public sanctions
or penalties imposed by the relevant regulatory bodies during the financial year ended 31 December
2020.
Mr. Muthusamy A/L P. Karuppaiah

Group General Manager of Subsidiary of MHC, Cepatwawasan Group Berhad
• Mr. Muthusamy A/L P. Karuppaiah was appointed as Group General Manager of Cepatwawasan Group
Berhad on 20 February 2014.
• He obtained his Diploma in Agriculture in 1979 and also a Diploma in Oil Palm & Technology (Milling)
in 2002. He is a planter with wide experience in the industry. He spent 24 years in United Plantations
Berhad, holding various positions from Cadet Assistant to Plantation Manager before he joined MHC
as Senior Manager. After 2 years in MHC, he joined IJM Plantations Berhad as Senior Manager for
Indonesia Operations. He then joined Cepatwawasan Group Berhad in 2009 as Plantation Controller and
was promoted to his current position in 20 February 2014.
• He does not have any directorship in public companies and listed issuers.
• He does not have any family relationship with any Director and/or major shareholder of the Company,
and has no conflict of interest with the Company.
2020.
[196001000393 (4060-V)]
Profile of Key Senior Management (cont’d)
Mr. Chan Kim Meng

Group Accountant
• Mr. Chan Kim Meng holds a professional accounting qualification from the Association of Chartered
Certified Accountants (ACCA), United Kingdom. He is also a member of the Malaysian Institute of
Accountants.
• Prior to joining the Company, he pursued a career in accountancy in the public accounting firm of Ernst
& Young for 9 years.
• He has wide working experience in the field of accounting and corporate finance.
• He joined the Company in 2006 as Group Accountant.
• He does not have any directorship in public companies and listed issuers.
• He does not have any family relationship with any Director and/or major shareholder of the Company and
has no conflict of interest with the Company.
2020.
Annual Report 2020
12
[196001000393 (4060-V)]
Chairman’s Statement
On behalf of the Board of Directors (“Board”) of MHC Plantations Bhd., I am pleased to present to you the
Annual Report of the Group and the Company for the financial year ended 31 December 2020.
Group Performance
The Group recorded a revenue of RM354.74 million and a profit before tax of RM31.20 million for the
financial year ended 31 December 2020 (“FY2020”). This was a significant increase compared to the revenue
and profit of RM308.00 million and RM9.40 million respectively for the financial year ended 31 December
2019 (“FY2019”).
The increases in revenue and profit before tax were mainly due to:
a) Increases in selling prices of crude palm oil (“CPO”), palm kernel (“PK” or “Kernel”) and fresh fruit bunches
(“FFB”) by 31%, 30% and 32% respectively; and
b) Increase in segment contribution by Power Plant as a result of higher sales and higher average selling price
of empty fruit bunches (“EFB”) oil by 11% and 62% respectively.
The highlights of the Group performance are stated below:
Annual Report 2020

Average selling price per tonne:-

FY2020 FY2019 Difference
RM RM (%)
13
CPO 2,712 2,071 31%
Kernel 1,597 1,231 30%
FFB 494 374 32%
Production:-

MT MT (%)
CPO 87,349 104,000 -16%

Kernel 22,966 26,883 -15%
FFB 149,702 161,181 -7%
Extraction rate:-

(%) (%) (%)
CPO 19.50 19.57 0%

Kernel 5.13 5.06 1%

MWh MWh (%)
Electricity Export 69,474 71,285 -3%

[196001000393 (4060-V)]
Chairman’s Statement (cont’d)
Dividend
On 7 April 2021, the Board approved a single-tier interim dividend of 2.0 sen per ordinary share for the
financial year ending 31 December 2021.
Furthermore, I am pleased to announce that the Board has approved a one-off payment of an additional
special dividend of 2.0 sen per ordinary share for the financial year ending 31 December 2021.
The rationale for the payment of a special dividend was:

1. To reward our loyal shareholders for keeping faith in MHC Plantations Bhd despite the uncertain economic
situation; and
2. To hopefully help in mitigating any difficulties our shareholders might currently be facing as a result of the
economic turmoil caused by COVID-19.
COVID-19
As is the case with other businesses, the Covid-19 global pandemic has presented significant challenges to our
operations. Despite this, I am pleased to inform you that we have adapted well to the difficulties faced and
thus continue to remain viable.
Since 18 March 2020, the Malaysian Government has imposed different stages of Movement Control Order
Annual Report 2020
(“MCO”) as a means of curbing the spread of the virus in the country. Inevitably, the MCO has intermittently
disrupted our operations during the year. With strict Standard Operating Procedures in place, we have been
able to maintain negligible Covid-19 positive cases amongst our workforce. We recognise the serious threat
and danger that the virus poses and we strive to keep our employees safe at all times.
14
As part of our COVID-19 relief efforts, the Group contributed a total sum of RM120,000.00 towards the
purchase of personal protective equipment (“PPE”) and essential medical supplies for the healthcare workers
of Tanjong Malim and Teluk Intan.
Prospect and Outlook
The Group expects CPO prices to remain firm in 2021 in view of supply tightness on a low inventory level and
the expected recovery in export demand.
The international travel restriction that was implemented as part of COVID-19 measures has led to a shortage
of foreign labour in the Malaysian palm oil industry. The Group is working to overcome this issue and will also
continue to focus on the maturity profile of its oil palm trees. For the past few years, we have undertaken an
accelerated replanting programme to accomplish this aim.
On the whole, the Board is confident that, barring any unforeseen circumstances, the Group will continue to
perform satisfactorily for the financial year 2021.
Acknowledgement
I wish to thank the Management and Staff for their dedicated services and contributions during the year.
To all our valued suppliers, customers, bankers, business associates and advisers, thank you very much for your
commitment and assistance to the Group.
And finally, to all our highly valued shareholders, please accept my heartfelt thanks for your unwavering and
continuous support.

Executive Chairman
[196001000393 (4060-V)]
Penyataan Pengerusi
Bagi pihak Lembaga Pengarah MHC Plantations Bhd., saya dengan sukacitanya menyampaikan Laporan
Tahunan Kumpulan dan Syarikat bagi tahun kewangan berakhir 31 Disember 2020.
Prestasi Kumpulan
Kumpulan mencatatkan pendapatan sebanyak RM354.74 juta serta keuntungan sebelum cukai sebanyak
RM31.20 juta bagi tahun kewangan berakhir 31 Disember 2020 (“TK2020”). Ini adalah satu peningkatan yang
ketara berbanding dengan pendapatan dan keuntungan sebelum cukai masing-masing sebanyak RM308.00
juta dan RM9.40 juta bagi tahun kewangan berakhir 31 Disember 2019 (“TK2019”).
Pendapatan dan keuntungan sebelum cukai masing-masing telah meningkat disebabkan terutamanya oleh
kenaikan dalam:
a) Harga Minyak Sawit Mentah (“CPO”), Kernel (“PK”) dan Buah Tandan Segar (“FFB”) masing-masing
sebanyak 31%, 30% dan 32%; dan
b) Peningkatan sumbangan oleh bahagian logi janakuasa daripada kenaikan jualan dan harga purata jualan
Minyak Tandan Buah Kosong (“EFB”) yang lebih tinggi masing-masing sebanyak 11% dan 62%.
Sorotan penting prestasi Kumpulan Syarikat adalah seperti berikut:
Harga purata jualan per tan metrik:-
Annual Report 2020

TK2020 TK2019 Perbezaan
RM RM (%)

CPO 2,712 2,071 31% 15
Kernel 1,597 1,231 30%
FFB 494 374 32%
Pengeluaran:-

MT MT (%)
CPO 87,349 104,000 -16%

Kernel 22,966 26,883 -15%
FFB 149,702 161,181 -7%
Kadar Pengekstrakan:-

% % (%)
CPO 19.50 19.57 0%

Kernel 5.13 5.06 1%

MWh MWh (%)
Eksport Elektrik 69,474 71,285 -3%

[196001000393 (4060-V)]
Penyataan Pengerusi (samb)
Dividen
Pada 7 April 2021, Lembaga Pengarah telah meluluskan dividen interim pertama sebanyak 2.0 sen sesaham
untuk tahun kewangan berakhir 31 Disember 2021.
Selain itu, saya dengan sukacitanya mengumumkan bahawa Lembaga Pengarah telah meluluskan pembayaran
sekali sahaja dividen tambahan sebanyak 2.0 sen sesaham untuk tahun kewangan berakhir 31 Disember 2021.
Bayaran khas ini dibuat atas 2 sebab:

1. Sebagai penghargaan kepada pemegang-pemegang saham setia kami kerana terus mempercayai MHC
Plantations Bhd dalam keadaan ekonomi yang tidak menentu; dan
2. Diharap dapat meringankan sebarang kesulitan semasa yang dihadapi oleh pemegang-pemegang saham
kami dalam kemerosotan ekonomi yang disebakan oleh COVID-19.
COVID-19
Seperti halnya perniagaan lain, pandemi global Covid-19 telah memberikan cabaran yang besar bagi operasi
kami. Walaupun begitu, saya dengan senang hati memberitahu bahawa kami telah menyesuaikan diri dengan
kesukaran yang dihadapi dan dengan demikian terus kekal berdaya maju.
Sejak 18 Mac 2020, Kerajaan Malaysia telah mengenakan berbagai tahap Perintah Kawalan Pergerakan
(“PKP”) sebagai langkah untuk mengawal penyebaran virus tersebut di negara ini. Memang tidak dapat
Annual Report 2020
dielak, PKP telah mengganggu operasi kami dari masa ke semasa pada tahun ini. Dengan Prosedur Operasi
Standard yang ketat, bilangan kes positif Covid-19 dikalangan pekerja kita telah dapat dikekalkan ditahap
yang kecil. Kami menyedari ancaman dan bahaya serius yang ditimbulkan oleh virus ini dan kami berusaha
untuk menjaga keselamatan pekerja kami setiap saat.
16
Sebagai sebahagian dari usaha bantuan COVID-19 kita, Kumpulan telah menderma sejumlah RM120,000
untuk pembelian peralatan pelindung diri (“PPE”) serta bekalan perubatan penting untuk pekerja-pekerja
kesihatan di Tanjong Malim dan Teluk Intan.
Prospek dan Pandangan
Kumpulan menjangkakan harga CPO akan tetap kukuh pada tahun 2021 memandangkan kesempitan
penawaran pada tahap inventori yang rendah dan jangkaan pemulihan permintaan eksport.
Sekatan perjalanan antarabangsa yang dilaksanakan sebagai langkah-langkah kawalan COVID-19 telah
menyebabkan kekurangan tenaga kerja asing dalam industri minyak sawit Malaysia. Kumpulan sedang
berusaha mengatasi masalah ini dan akan terus memberi tumpuan kepada profil kematangan pokok-pokok
sawitnya. Untuk beberapa tahun kebelakangan ini, kami telah menjalankan program penanaman semula
yang dipercepatkan untuk mencapai matlamat ini.
Secara keseluruhannya, Lembaga yakin bahawa, melainkan sebarang keadaan yang tidak dijangka, Kumpulan
akan terus menunjukkan prestasi yang memuaskan untuk tahun kewangan 2021.
Penghargaan
Saya ingin mengambil kesempatan ini untuk merakamkan ribuan terima kasih yang tidak terhingga kepada
pihak pengurusan dan semua kakitangan atas khidmat dan dedikasi mereka sepanjang tahun 2020.
Terima kasih juga kepada semua pembekal dan pelanggan, rakan perniagaan, penasihat dan pihak bank atas
komitmen dan bantuan yang telah diberikan.
Sebagai akhir kata, kepada semua pemegang saham yang dihargai, terima kasih yang tidak terhingga saya
ucapkan di atas sokongan anda semua. Saya berharap semoga anda semua akan dirahmati dengan kejayaan
dan kemakmuran di masa hadapan.

Pengerusi Eksekutif
[196001000393 (4060-V)]
Five-Year Financial Highlights
2020 2019 2018 2017 2016

RM’000 RM’000 RM’000 RM’000 RM’000

INCOME STATEMENT
Revenue 354,739 308,003 350,298 401,806 331,473
Profit before tax 31,199 9,400 9,817 41,006 26,394
Profit attributable to
owners of the Company 13,674 2,501 3,975 15,408 8,433

FINANCIAL POSITION
ASSETS
Property, plant and equipment 507,400 518,050 516,347 517,635 532,106
Investment properties 45,264 49,924 49,250 49,250 48,062
Investment in securities 338 395 388 559 528
Land use rights - - 1,910 1,938 1,966
Deferred tax assets 6,777 7,560 5,767 9,855 8,820
Goodwill on consolidaion 43,867 43,867 43,867 43,867 43,867
Current assets 95,850 86,804 89,835 107,978 100,274
Total assets 699,496 706,600 707,364 731,082 735,623

EQUITY
Annual Report 2020

Share capital 196,544 196,544 196,544 196,544 196,544
Reserves 54,322 43,361 44,022 44,372 31,986
Equity attributable to
owners of the Company 250,866 239,905 240,566 240,916 228,530
Non-controlling interest 253,568 249,235 251,651 256,230 244,334
17
Total equity 504,434 489,140 492,217 497,146 472,864

LIABILITIES
Deferred tax liabilities 48,913 48,657 44,708 46,488 44,315
Borrowings 46,866 55,163 64,047 66,013 87,531
Other non-current liabilities - - 267 267 267
Lease liabilities 3,876 3,689 - - -
Current liabilities 95,407 109,951 106,125 121,168 130,646
Total liabilities 195,062 217,460 215,147 233,936 262,759
Total equity and liabilities 699,496 706,600 707,364 731,082 735,623

FINANCIAL INDICATORS
Basic earning per share (sen) 6.96 1.27 2.02 7.84 4.29
Net dividend per share (sen) 1.50 1.50 2.00 1.50 1.50
Net assets per share (RM) 1.28 1.22 1.22 1.23 1.16
Basic earning per share (sen)

Revenue (RM’000) Total equity (RM’000) 6.96
2020
354,739 504,434 Net dividend per share (sen)

Total assets (RM’000) Total liabilities (RM’000) 1.50
699,496 195,062 Net assets per share (RM)
1.28
[196001000393 (4060-V)]
Five-Year Plantation Statistics
Group
2020 2019 2018 2017 2016
Oil Palm
Production:
Fresh fruit bunches (mt) 149,702 161,181 161,101 171,219 162,202
Crude palm oil (mt) 87,349 104,000 111,702 99,109 85,095
Palm kernel (mt) 22,966 26,883 29,720 25,914 21,334

Average selling price:
Fresh fruit bunches (RM/mt) 494 374 408 536 513
Crude palm oil (RM/mt) 2,712 2,071 2,226 2,756 2,592
Palm kernel (RM/mt) 1,597 1,231 1,748 2,475 2,527

Yield per matured hectare (mt) 16.02 18.14 16.94 18.03 17.03
Oil extraction rate % 19.50 19.57 19.45 19.55 19.72
Palm kernel rate % 5.13 5.06 5.18 5.11 4.94

Planted Oil Palm Area
Annual Report 2020
(Weighted average hectares): 11,256 11,403 11,405 11,415 11,415

Mature 9,344 8,887 9,508 9,494 9,524
18
Immature 1,912 2,516 1,897 1,921 1,891
Total planted area 11,256 11,403 11,405 11,415 11,415
12000
11000
10000
9000
8000
7000
6000
5000
4000
3000
11,415
11,415
11,405
11,403
11,256
2000
1000
0
2016 2017 2018 2019 2020
TOTAL PLANTED AREA

[196001000393 (4060-V)]
Management’s Discussion and Analysis
DESCRIPTION OF OUR GROUP’S BUSINESS
MHC Plantations Bhd. (“MHC”) was incorporated on 31 December 1960 (hereinafter MHC and its subsidiaries
are collectively referred to as the “Group”).
The principal activities of the Company consist of cultivation of oil palm, investment holding and the operation
of a hotel. The principal activities of the subsidiary companies consist of cultivation of oil palm, operation of
quarry, milling and sales of oil palm products including crude palm oil (“CPO”) and palm kernel (“Kernel”),
letting of oil palm fresh fruit bunches (“FFB”) collection center, investment holding, power generation, and
property development.
As at 31 December 2020, the Group has a landbank of about 25,500 acres in Sabah and 7,600 acres in
Peninsular Malaysia. The Group owns one oil mill in Sabah and one in Peninsular Malaysia, with a total milling
capacity of 135 metric tonnes per hour. In addition, the Group has ventured into oil palm renewable energy by
investing in and operating a 12 Megawatt Biomass Power Plant (“Biomass Plant”) and a 4.0 Megawatt Biogas
Power Plant (“Biogas Plant”), both in Sandakan, Sabah. The Group has also upgraded its existing Biogas Power
Plant in Teluk Intan to connect it to the grid to export renewable power up to 1 MW to Tenaga Nasional
Berhad starting on 8 August 2019 at a Feed-in Tariff (“FiT”) rate of RM0.4669/kWh.
FINANCIAL REVIEW
Annual Report 2020

Revenue and Profit Before Taxation
The Group recorded a revenue of RM354.74 million and a profit before tax of RM31.20 million for the
financial year ended 31 December 2020 (“FY2020”). This was a significant increase compared to the revenue 19
and profit of RM308.00 million and RM9.40 million respectively for the financial year ended 31 December
2019 (“FY2019”).
The increases in revenue and profit before tax were mainly due to:
a) Increases in selling prices of CPO, PK and FFB by 31%, 30% and 32% respectively; and
b) Increase in segment contribution by Power Plant as a result of higher sales and higher average selling
price of EFB oil by 11% and 62% respectively.
Average selling price per metric tonne (“MT”):-

RM RM (% %)

CPO 2,712 2,071 31%
Kernel 1,597 1,231 30%
FFB 494 374 32%
Electricity/kWh 0.3901 0.3700 5%
EFB Oil 2,306 1,423 62%
Sales Volume:-

(% %)
CPO (MT) 87,753 106,116 -17%

Kernel (MT) 23,098 26,922 -14%
FFB (MT) 65,339 43,191 51%
Electricity (MWh) 69,474 71,285 -3%
EFB Oil (MT) 8,069 7,238 11%
[196001000393 (4060-V)]
Management’s Discussion and Analysis (cont’d)
FINANCIAL REVIEW (cont’d)
Revenue and Profit Before Taxation (cont’d)
Performance of the respective operating business segments as compared to the previous financial year is
appended and analysed as follows:
(i) Plantation – The increase in Segment profit by RM14.69 million (>100%) from RM5.69 million to RM20.38
million was mainly due to an increase in average FFB selling price by 32% despite a decrease in FFB
production by 7%.
(ii) Oil Mill – The decrease in Segment profit by RM0.45 million (4%) from RM11.13 million to RM10.68
million was mainly due to a lower mill OER margin and lower FFB processed during the financial year.
(iii) Power Plant – The increase in Segment profit by RM7.04 million (80%) from RM8.81 million to RM15.85
million was mainly due to higher sales and higher average selling price of EFB oil by 11% and 62%
respectively.
Other Income
Annual Report 2020
Other income decreased by 15% from RM4.71 million to RM4.02 million mainly due to a decrease in fair value
gain on biological assets by RM0.83 million.
20 Finance Cost
Finance cost decreased by 32% from RM7.05 million to RM4.81 million in line with the decreases in bank
borrowings and interest rate.
Taxation
The effective tax rate for the financial year 2020 was higher than the statutory tax rate of 24% principally
because certain deferred tax assets were not recognised on business loss for the current year and certain
expenses were disallowed for tax purposes.
Profit Attributable to Equity Holders of the Company
Profit attributable to equity holders of the Company and earnings per share of the Group increased by 445%
year-on-year to RM13.67 million and 6.96 sen respectively.
Cash Flow
In FY2020, the Group generated higher net cash from operating activities of RM53.15 million as compared to
RM40.44 million in the previous financial year.
The net cash used in investing activities amounted to RM15.06 million in FY2020, primarily relating to the
Group’s capital expenditure requirements.
The net cash used in financing activities in FY2020 amounted to RM27.82 million, primarily relating to the
repayment of bank borrowings and payment of final dividend to shareholders.
Overall, the Group registered an increase in cash and cash equivalents of RM10.27 million during the year,
bringing total cash and cash equivalents to RM27.99 million as at 31 December 2020.
[196001000393 (4060-V)]
OPERATIONAL REVIEW
Plantation Operations
As at 31 December 2020, the Group’s total plantation land stands at approximately 13,400 hectares, of which
84% or 11,256 hectares are planted with oil palms. From the total planted area, approximately 83% or 9,372
hectares are mature, while the remaining 17% or 1,884 hectares are immature. The Group recorded a total
FFB production of 149,702 MT (2019 – 161,181 MT). The average yield per hectare for the year under review
was lower at 16.02 MT/hectare as compared to 18.14 MT/hectare in 2019. The decrease in yield per hectare
for the year under review was mainly due to the reduced yield patterns in the Sabah region and acute labour
shortages, as well as restrictions in FFB harvesting activities during COVID-19 lockdown which resulted in some
crop losses. The Group expects the yield to improve in the coming years with the 2,100 hectares of young
mature palm going into prime age.
For productivity improvement, the Group will continue to enhance human capital development by providing
comprehensive training to employees, and mechanisation of key processes in the estates, including harvesting,
in-field collection and crop evacuation.
The age profile of the developed area is shown below:
Annual Report 2020

Particulars Hectare % Oil Palm Age Profile
0 – 3 years (Immature) 1,884 17
4 – 7 years (Young) 2,100 19 21
8 – 18 years (Prime) 3,621 32
Prime
> 19 years (Past Prime) 3,651 32 Young 3,621 ha, 32%
2,100 ha, 19%
Total 11,256 100
Immature
1,884 ha, 17%
Past Prime
Milling Operations 3,651 ha, 32%
The Group operates one oil mill in Sabah and one in Peninsular
Malaysia, with a total milling capacity of 135 MT per hour.
During the year under review, the Group’s mills processed
a total FFB quantity of 0.45 million MT as compared to 0.53
million MT in the previous financial year. The decrease in FFB
processed by 15% was mainly due to poorer FFB production Immature (0-3 years)
in the Sandakan region and a substantial volume of the
internal FFB from the Sugut region being diverted to a nearby Past Prime (> 19 years)
external mill that offered a higher profit margin as a result of
Young (4-7 years)
saving on transport and higher FFB buying price. Hence, total
CPO produced by the mills during the year under review was Prime (8-18 years)
87,349 MT, representing a decrease of 16% as compared
to 104,000 MT in the previous financial year. Similarly, total
kernel production decreased by 15% at 22,966 MT (2019 :
26,883 MT).
The Group’s oil extraction rate (“OER”) slightly decreased to 19.50% in 2020 as compared to 19.57% in 2019,
while kernel extraction rate (“KER”) increased to 5.13% in 2020 from 5.06% in 2019.
The Group constantly adopts good milling practices with the aim towards improving the OER, KER, and
productivity and efficiency.
[196001000393 (4060-V)]
OPERATIONAL REVIEW (cont’d)
Power Plant Operations
The Group operates a renewable energy division consisting of a 12 Megawatt Biomass Plant and a 4.0
Megawatt Biogas Plant, both in Sandakan and a 2.4 Megawatt Biogas Power Plant in Teluk Intan.
The 12 Megawatt Biomass Plant generates renewable electricity using oil palm Empty Fruit Bunches (“EFB”) as
primary fuel with oil palm shells and mesocarp fibres as secondary fuels. The Group obtained the FiT Approval
from the Sustainable Energy Development Authority Malaysia (“SEDA”) on 12 May 2014 to sell renewable
electricity to Sabah Electricity Sdn. Bhd. (“SESB”) at the FiT rate of RM0.3486/kWh for 16 years commencing
from 1 January 2015.
The two Biogas Plants generate renewable electricity by capturing the methane gas from palm oil mill effluent
(“POME”), thereby mitigating the emission of greenhouse gases. There is also Zero discharge to the river, as
the final discharge from the biogas plant is released through a system of drip irrigation for land application.
On 18 February 2015, the Group obtained the FiT Approval from SEDA for the 4.0 Megawatt Biogas Plant
to sell renewable electricity to SESB for 16 years commencing from 15 February 2017. The Group has also
obtained the FiT Approval from SEDA on 5 May 2017 for the 2.4 Megawatt Biogas Plant in Teluk Intan to sell
Annual Report 2020
renewable electricity up to 1MW to Tenaga Nasional Berhad (“TNB”) at the FiT rate of RM0.4669/kWh for 16
years commencing from 3 July 2019.
The Group recognises that fuel and system stability are the two main success factors for a renewable energy
22 power plant. The Group has adopted a strict fuel policy to control the quantity and quality of its fuel. Several
system upgrading and modification works have been carried out on our power plants to improve the efficiency
and stability of power production.
The introduction of different stages of Covid-19 Movement Control Order (“MCO”) by the Government during
the year has the following impact on the Power Plant Segment:-
1) Lower processing activity of our oil mill during the MCO period has reduced the supply of feedstock for
our Biogas Power Plant in Sandakan; and
2) Late delivery of essential spare parts and provision of engineering support during the MCO period has
significantly delayed some of the maintenance and repair of our Biomass and Biogas Plants in Sandakan.
Due to these factors, the Group’s power plants generated and exported 69,474 MWh during the yaer under
review, representing a decrease of 3% as compared to 71,285 MWh in the previous financial year.
COVID-19
As is the case with other businesses, the Covid-19 global pandemic has presented significant challenges to
our operations. Despite this, our Group has adapted well to the difficulties faced and thus continue to remain
viable.
Since 18 March 2020, the Malaysian Government has imposed different stages of Movement Control Order
(“MCO”) as a means of curbing the spread of the virus in the country. Inevitably, the MCO has intermittently
disrupted our operations during the year. With strict Standard Operating Procedures in place, we have been
able to maintain negligible Covid-19 positive cases amongst our workforce. We recognise the serious threat
and danger that the virus poses and we strive to keep our employees safe at all times.
[196001000393 (4060-V)]
OPERATIONAL REVIEW (cont’d)
PROSPECT
The Group expects CPO prices to remain firm in 2021 in view of supply tightness on a low inventory level and
the expected recovery in export demand.
The international travel restriction that was implemented as part of COVID-19 measures has led to a shortage
of foreign labour in the Malaysian palm oil industry. The Group is working to overcome this issue and will also
continue to focus on the maturity profile of its oil palm trees. For the past few years, we have undertaken an
accelerated replanting programme to accomplish this aim.
On the whole, the Board is confident that, barring any unforeseen circumstances, the Group will continue to
perform satisfactorily for the financial year 2021.
Annual Report 2020

23
[196001000393 (4060-V)]
Sustainability Statement
ABOUT THIS STATEMENT
We are pleased to present the Group Sustainability Statement for the year 2020. It has been prepared in
accordance with Bursa Malaysia Securities Berhad’s Sustainability Reporting Guidelines (2nd edition).
The period covered is the 12 months ended 31 December 2020, and where applicable, historical data from
the preceding year has been included for comparison.
The scope of this report covers the environmental, social and economic performances of the Group’s operations
in Malaysia.
The Group recognises the value of Sustainability and understand its importance in generating and sustaining
short and long term value for the Group and its stakeholders.
Our commitment to Sustainability encompasses on-going efforts to maintain a healthy balance between
economic, social and environmental responsibilities, and also includes interests towards our stakeholders for
a better future.
Annual Report 2020
SUSTAINABILITY GOVERNANCE STRUCTURE
The Chief Operating Officer (“COO”) is primarily responsible for providing overall direction, leading strategic
decision-making and driving execution for all of the Group’s sustainability related matters. The Board of
24 Directors, entrusted with oversight of the Group’s sustainability practices, is kept informed and regularly
updated on the progress of sustainability matters and any issues arising therefrom.
The Group has established a sustainability governance structure as depicted below:-
Committee Responsibilities
Board of Directors • Approve and monitor the development of Management’s corporate

sustainability strategies, policies and performance
Chief Operating Officer • Responsible for providing overall direction, leading strategic decision-
making and driving execution for all of the Group’s sustainability
related matters.
Sustainability Committee • Lead the implementation of sustainability strategies and policies

within their respective departments;
• Monitor and provide regular updates to the GGM regarding their

department’s sustainability performance, based on the strategic
direction set out by the Board;
• Identify, assess, evaluate, manage and report material sustainability

risks and opportunities relevant to the Group’s operations for
approval; and
• Facilitate sustainability disclosures as required by laws and

regulations, and subsequently recommend them for approval.
The Sustainability Policy of the Group can be found on the Company’s website at www.mhc.com.my
[196001000393 (4060-V)]
Sustainability Statement (cont’d)
MATERIALITY
The Group, when conducting its materiality analysis exercise, took into consideration the views and responses
of all its stakeholders. It has deliberated over the various environmental, economic and social aspects of its
operation whilst simultaneously taking into account their respective impact and risks. By doing this, the Group
has also discovered opportunities for future success and continued growth.
From the evaluation of the Group’s Sustainability Risk and Opportunities, the Group has maintained
commitment to the Thirteen (13) key sustainability issues identified and discussed in the previous year’s
Sustainability report. At the time, these issues were assessed as being of high concern to stakeholders and
of high significance to the Group, and we have remained committed to them throughout the entirety of
2020. These material issues have been prioritized through our materiality assessment process. Material issues
identified are then assessed to establish if proper policies and procedures are implemented to manage and
monitor these issues.
The 13 key sustainability issues are listed below:-
KEY SUSTAINABILITY MATTERS SUSTAINABILITY FRAMEWORK

Economic Performance MARKET PLACE
Annual Report 2020

Governance and Business Ethics
Regulatory compliance
Sustainability Certification
25
Stakeholder Engagement
Water Management ENVIRONMENT
Energy
Greenhouse Gas (GHG) Emission
Training and Education WORKPLACE
Labour Relations and Human rights
Occupational Safety and Health
Employee Retention & Engagement
Community Care and CSR initiatives COMMUNITY
STAKEHOLDER ENGAGEMENT
The Group recognises that the engagement and feedback of its stakeholders are an integral part of its
sustainability strategies and initiatives.
The stakeholders engagement process involves both formal and informal approaches. The following table
provides an overview of the efforts undertaken by the Group to further the engagement of its stakeholders.
Stakeholder Modes of Engagement Key Areas of Interest

Employees • Meetings • Safety and health issues and practices
• Internal communications • Employee engagement
• Training sessions • Wages and remuneration
• Morning muster • Suggestions and areas for
• Events and functions improvement
• Annual appraisals
[196001000393 (4060-V)]
STAKEHOLDER ENGAGEMENT (cont’d)
Stakeholder Modes of Engagement Key Areas of Interest

Smallholders and • Formal and informal meetings • MSPO certification program for
local communities • Corporate social oil palm cultivation
responsibility events • Employment opportunities
• Complaints and grievances
Customers • One-to-one meetings • Product quality
• Phone calls • Compliance with sustainability
• Site visits standards
• Contract negotiation • Supply chain and traceability
of product
• Price competitiveness
Government and • Two-way dialogue through • Compliance of relevant regulatory
Regulators forums and workshops requirements
• One-to-one meetings
• Site visits and inspections
Annual Report 2020
• Events and seminars

Shareholders and • Quarterly reporting • Operational performance
investors • Annual General Meeting • Good corporate governance
• As and when needed • Business strategy
26
Contractors and Suppliers • One-to-one meetings • Company’s policies and governance
• Tender and bidding process • Sustainability related matters
• Visits • Payment terms and timeliness
• Product/technology trial
• Contract negotiations
Investor and Shareholder Relations
The Board recognises the importance of timely dissemination of information. We strive to keep our shareholders
and investing community well informed of all major developments in the Group. A periodic overview of the
Group’s performance and operation is provided to shareholders and the investing public via announcements,
disclosures in the Annual Report and quarterly release of financial results.
The Company uses the Annual General Meeting (AGM) as a forum for dialogue and interaction with all its
shareholders. The Board of directors and key members of the management team are available to answer any
questions raised.
The Company’s website at www.mhc.com.my contains vital information concerning the Group and it is
updated on a regular basis. Shareholders are able to pose questions to the Company through the website.
[196001000393 (4060-V)]
MARKET PLACE
Governance and Business Ethics
Our business conduct shall be guided by honesty, integrity and a commitment to excellence. We are committed
to promoting responsible practices among our business partners and showing care for the wellbeing of our
customers. The group upholds the principles of good corporate governance in line with the expectations of
our stakeholders and investors, whilst adhering to the rules and regulations of the law. The Group’s practices,
alongside our continuous improvements and commitment to corporate governance, is further elaborated on
in the ‘Statement on Corporate Governance’ found in this Annual Report.
In keeping with good corporate governance and as per the Group’s Whistleblowing Policy (Policy), all
our employees and workers are encouraged to raise genuine concerns regarding any improper conduct.
Wrongdoings include, but are not limited to, any breaches of trust, corruption, fraud, waste and/or
misappropriation of Group resources, abuses of power or position, sexual harassment, endangerment of the
health and safety of employees or the public and any attempt to conceal or suppress information relating to
the above.
The Group’s Code of Conduct and Ethics, Whistleblowing Policy and other Corporate Governance policies
Annual Report 2020

which are listed below are accessible through the Group’s website at www.mhc.com.my.
The Malaysian Anti-Corruption Commission (Amendment) Bill 2018 was gazetted on 4 May 2018 as the
MACC Amendment Act 2018. The enforcement of provisions on corporate liability became effective on 1st
June 2020. This new provision establishes a new statutory corporate liability offence of corruption that applies 27
not only to commercial organisations but also to any persons associated with them. Individuals may be held
liable for the same offence as their organisation, unless the relevant persons can prove otherwise. The Group
has formulated policies and procedures, which will be reviewed regularly, to mitigate the potential risks.
The Group’s Anti-Bribery and Corruption Policy Policy are accessible through the Group’s website at
www.mhc.com.my.
Malaysian Sustainable Palm Oil Certification (“MSPO”)
MSPO is a mandatory national sustainability certification scheme for the oil palm industry in Malaysia, covering
the entire supply chain from oil palm plantations to downstream facilities. All oil palm industry players in
Malaysia are mandated to be certified under the MSPO certification scheme by the end of 2019.
All our palm oil mills and estates have completed MSPO certification. In addition, our oil mills in Teluk Intan
and Sandakan were also certified under the MSPO Supply Chain Certification (“SCCS”) on 21 December
2019 and 9 March 2020 respectively. This further reinforces our sustainability credentials with customers and
enhances confidence in our sustainably managed business.
Economic Performance
The Group recorded revenue of RM354.74 million and profit before tax of RM31.20 million for the financial
year ended 31 December 2020 as compared to RM308.00 million and RM9.40 million respectively in the
previous financial year. Further details of the Group’s economic performance for FY2020 can be found in the
Financial Statement in this Annual Report.
[196001000393 (4060-V)]
Value Distribution
The direct economic value generated and distributed by the Group for 2020 is tabulated below:

2020 2019
RM’000 RM’000
Employee wages and benefits 37,193 38,678

Payment to Government 19,017 17,064
Payment to Shareholders (Dividend) 2,948 2,948
CSR contribution 652 621
Procurement Practices
We make every effort to ensure that our materials are sourced from local suppliers, so as to empower and
boost local communities. The Group sources all our purchases locally and did make any direct purchases from
outside Malaysia throughout 2020.
Annual Report 2020
ENVIRONMENT
The Group strives to achieve a sustainable long term balance between meeting its business goals and preserving
the environment. It recognises that the continued health of ecosystems is an integral part of sustaining its
28
business. Hence, conservation and preservation of the environment remains a priority of the Group.
Conservation and Biodiversity
Our objective is to conduct operations under the best principles of agriculture. We strive to be compatible
with the natural environment and are in full support of Integrated Pest Management techniques and Best
Management Practices for existing plantations on peat. We also promote the conservation and development
of biodiversity within our plantations.
The Group does not operate or develop within international or nationally designated protected areas. As such,
we do not conduct development on High Carbon Stock Forests (HCS) or High Conservation Value Forest Areas
(HCV) and we have no new development on Peat Land. To strengthen our commitment to No Deforestation,
we endeavor to maintain an open and dynamic approach towards continuous improvement in respect of HCS
and HCV.
HCV areas considered socially valuable have signboards erected to create awareness for the surrounding
community. These boards include prohibitions on encroachment, trapping, hunting and fishing as well as
prohibiting outsiders from trespassing with the intent of damaging these areas.
As of December 2020, a total of 162 hectares of land have been declared as Conservation and HCV areas
within the Group.
The Group is also committed to the practices of sound soil management. Examples of our efforts include:
• Annual leaf nutrient analyses to determine amount and appropriate composition and of soil nutrients;
• Systematic application of empty fruit bunches to fields as a means of fertilization; and
• The planting of leguminous cover crops.
We also work to mitigate the water footprint related to our operations and this is further detailed below
under ‘Water Management’
[196001000393 (4060-V)]
ENVIRONMENT (cont’d)
Greenhouse Gas (GHG) Emission
To mitigate Greenhouse Gas emissions, the Group constructed and operates two Biogas Power Plants (“Biogas
Plant”) as well as a Biomass Power Plant (“Biomass Plant”). These Power Plants generate green power for use
in our operations and any surplus is exported to the electrical grid.
Methane emissions from the treatment of palm oil mill effluent (“POME”) are a large contributor to operational
GHG emissions. The two biogas plants commissioned by the Group, one in Sandakan and one in Teluk
intan, capture methane and mitigate GHG emissions. Together, they contribute to a total GHG reduction of
approximately 350,000MT of CO2 per year.
Additionally, our oil mill recycles the POME residual solids, namely belt press solid and decanter cake, into
organic fertilisers which are then reapplied to our estates. This helps preserve the environment by decreasing
the application of chemical fertilisers whilst also reducing the Group’s cost on fertilisers.
Water Management
Annual Report 2020

The Group’s water management involves measures taken to preserve and protect waterways, whilst optimizing
water usage.
The Group adopts a zero discharge policy regarding Palm Oil Mill Effluent (“POME”). To prevent POME entry
into waterways, it is first polished in the Biogas Plant before it is discharged via land irrigation. 29
Measures and practices that have been implemented by the Group include:-
i. optimising water usage in nurseries through drip-irrigation;

ii. land irrigation and application with treated POME;
iii. installing watergates at strategic locations along drains to keep an optimum water table level in the estate;
iv. increasing water reservoirs and storage tanks for rainwater harvesting in the housing sites; and
v. riparian zones or areas which are identified and maintained to avoid runoff from cultivated land into the
natural waterways.
For the year 2020, the Group’s palm oil mill maintained a water consumption (in unit of mt per mt of fruit
fresh bunches processed) of 1.74 MT water per MT of FFB processed. This was a decrease compared to the
1.81 water per MT of FFB processed in the year 2019.
Energy Consumption
At our Estates
Fossil fuels are primarily used by mechanised equipment, agricultural machinery and vehicles for the operation
of our estates.
In 2020, total diesel fuel consumption by our estates and housing quarters was approximately 1.83 million
(2019-1.82 million) litres.
Presently, two (2) estates have installed solar panels to generate power for the houses located away from
the main complex. The Group will continue to explore installing additional solar panels in other estates still
dependant on diesel-powered generation (as their main source of power supply).
[196001000393 (4060-V)]
ENVIRONMENT (cont’d)
Energy Consumption (cont’d)
At our Oil Mills
The main source of power for our palm oil mill operation is derived from renewable energy. The fuel used in
the boilers is biomass-fiber and shell from oil palm fruit bunches.
In 2020, most of the energy consumption in our oil mills, amounting to almost 85% (2019 – 95%), came from
renewable sources.
Zero Burning Policy
The Group maintains a strict Zero Burning Policy in relation to all new planting, re-planting and other related
development.
Integrated Pest Management

Annual Report 2020
We have adopted environmentally friendly techniques and used them to innovate our Integrated Pest
Management System. The Group favours an integrated pest management approach which includes the
deployment of biological control instead of widespread pesticide use for pest control. The placement of
pheromone traps to capture rhinoceros beetles are among the methods that have proven effective in reducing
30 pest damage to our crops over the years. We also plan to introduce barn owls in our estates to suppress rat
populations.
Substitution of chemical fertilizers with nutrient-rich organic matter such as empty fruit bunches and treated
POME are also a common practice in our estates.
Since 2011, the Group has not purchased Paraquat herbicide due to concerns raised over its potential to harm
workers. In adhering to government regulations, only chemicals approved by the Pesticides Board are used
in the estate.
Biomass Recycling
In accordance with the Group’s biomass recycling best practices, empty fruit bunches (“EFB”) are extensively
used in our estates. The benefits of EFB application on plantation land are well documented, especially for
moisture retention and for increasing organic matter in soil leading to better nutrient utilisation and uptake.
WORK PLACE
Fair Employment Practices
The Group considers its employees to be one of its greatest assets and recognise them as major contributors
to its success.
The Group advocates fair employment policies and practices. It is committed to equal employment opportunities
without discrimination in regard to gender, age, religion, race, ethnicity, and origin. We do not use forced
labour nor do we approve of the practice of child labour. We do not tolerate any involvement in human
trafficking.
[196001000393 (4060-V)]
WORK PLACE (cont’d)
Fair Employment Practices (cont’d)
The equality policy is embedded in all workplace procedures, starting from the recruitment process. A
Sexual Harassment Policy is also in place to ensure female employees and workers are protected from sexual
harassment and any form of violence in the workplace.
In addition, we have a formal grievance mechanism in place so that complaints of mistreatment and abuse
can be reported. The mechanism covers complaints on labour practices and human rights and also comes with
a remediation process. Guidelines on the complaint and grievance procedure has been established as part of
the Group’s Employment Policy.
Employees Wages and Welfare
The Group complies with the minimum wages stipulated by the Minimum Wages Order 2018. The Group
believes that its people should be fairly rewarded and recognised. The basis of recognition is not limited solely
to work performance but also includes other aspects such as behaviour at work, creativity and involvement
in the Group’s activities. Our reward philosophy covers basic salary, benefits, short-term variable bonuses as
Annual Report 2020

well as promotion.
We are to dedicated to having a comfortable environment for our workers and their dependents to work
and live in. To this end, a comprehensive range of amenities is provided at the Group’s operating units.
This includes housing, water and electricity supply, healthcare, places of worship, childcare facilities and 31
other recreational amenities. The Group continues to upgrade these amenities to ensure compliance with
“Workers” Minimum Standards of Housing and Amenities Act 1990 (Act 446).
Occupational Safety and Health
The Group is committed to providing a safe and healthy working environment for all employees and contractors
engaged at work. To maintain conditions, an Occupational Safety & Health (OSH) Policy is in place that
governs the entirety of the Group. We also have Safety and Health Committees (consisting of management
and employee representatives) based in all our estates and oil mills.
The Group’s Safety and Health Officer (SHO) makes periodic workplace inspections to ensure safety protocols
are implemented in compliance with legislative requirements. Workers are provided with safety equipment
as befits their job responsibilities and they are given working procedures to follow. The codes of health and
safety regarding practices and procedures are strictly adhered to at all times by all parties concerned. Safety
operating procedures and system checks for all processes and equipment are in place and product quality
standards are stringently maintained in a responsible manner.
Our target is to always maintain zero fatalities at the workplace. There have been zero fatalities at the
workplace in the whole Group for the past 12 months and the Lost Time Injury Frequency Rate (LTIFR) is at
6.71.
LTIFR represents the number of accidents with lost days for every (1) million-man hours worked.
Every accident is formally investigated to determine the root cause and to prevent the recurrence of such
incidents.
[196001000393 (4060-V)]
WORK PLACE (cont’d)
Protecting Our Employees during COVID-19
The Group established SOPs and precautionary practices to guide operations during the Covid-19 pandemic.
A strict compliance of wearing face masks, observing physical distancing and sanitisation of work place areas
are some of the measures taken by the Group. The Group will continue to take precautionary measures
and monitor the situation closely, and will do whatever is necessary to protect its employees whilst ensuring
business continuity.
Training
Our human capital development programmes include in-house and external training, seminars and the
provision of information/knowledge sharing platforms to encourage shared knowledge and communication.
In addition to the above, the Group has carried out internal training throughout the year at each of its
operating units. Training topics included personal protective equipment (PPE), chemical handling, hazard
guidance, vehicle competency, safety work procedures and safe handling of tools & equipment at mechanical/
vehicle workshops.
Annual Report 2020
Recruitment and Employee Retention
32 The Group faces challenges from the shortage of foreign labour in the palm oil industry. This is partly due to
strict entry rules into Malaysia but also the result of improving job opportunities in workers’ home countries
such as Indonesia.
The Group also finds it difficult to attract and retain younger employees due to the remote location of the
plantation and the nature of the plantation tasks.
The Group mitigates high employee turnover and job dissatisfaction through comprehensive employee
benefits, competitive remuneration, training and personal development, and a conducive working culture.
To mitigate the risk of labour shortages, we are continuously devising ways to increase efficiency and
productivity whilst looking into methods of mechanization.
COMMUNITY
The Group cares about the well-being of the community. We believe in sharing and giving back to communities
to promote their growth and also to improve the overall well-being of their people.
The Group contributes to the local community through Dato’ Seri Mah Pooi Soo Benevolent Fund (“the Fund”)
which is a charitable organisation funded by the Group.
The Fund is dedicated to the advancement of education and religion, relief of poverty and other purposes
beneficial for the community.
As part of our COVID-19 relief efforts, the Group contributed a total sum of RM120,000.00 towards the
purchase of personal protective equipment (“PPE”) and essential medical supplies for the healthcare workers
of Tanjong Malim and Teluk Intan.
[196001000393 (4060-V)]
COMMUNITY (cont’d)
Our COO and Manager with the

team at Teluk Intan Hospital.
Annual Report 2020

33
Our COO and Manager with the

team at Daerah Mualim (To be
distributed to Hospital Slim River,
Klinik Kesihatan Slim River and
Klinik Kesihatan Tanjung Malim).
The Group is working with the Borneo Child Aid Society, Sabah (Humana) in Sandakan to provide basic
education and care for children of foreign plantation workers, who are unable to enrol in Malaysian national
schools. The Cepatwawasan-Humana Education Resource Centre currently has 73 (2019:149) students - the
majority consists of our workers’ children but the school also includes children from nearby communities. The
Group has also built a new learning centre at its estate in Beaufort, Sabah. Once again, this centre is directed
at plantation workers’ children who are unable to attend Malaysian national schools. This centre offers classes
based on the Indonesian curriculum in preparation for the children’s future repatriation to their home country.
In 2020, the number of students attending this learning centre was 58 (2019 – 52).
The Group is partnering with Yayasan Orang Asli Perak to provide basic education and care for the children
of Orang Asli at Pusat Kecemerlangan Pendidikan Orang Asli Perak, located between Simpang Pulai and
Cameron Highlands.
The Group also contributed to the establishment of a Bistari IT Centre at the Pusat Kecemerlangan Pendidikan
Orang Asli Perak. This IT College is intended to improve the living standard of Orang Asli by providing them
skills training in the fields of computer science, business management and engineering in welding (Oil & Gas).
This Statement is made in accordance with the resolution of the Board of Directors passed on 23 February
2021.
[196001000393 (4060-V)]
Corporate Governance Overview Statement
Introduction
The Board of Directors (“the Board”) recognises the importance of adopting high standards of corporate
governance throughout the Company and the Group as a fundamental part of discharging its responsibilities to
protect and enhance long term shareholders value and the Group’s financial performance, whilst considering
the interests of other shareholders.
This Corporate Governance Overview Statement (“Statement”) sets out how the Company has applied
the Principles of the Code and observed the Recommendations supporting the Principles and is to be read
together with the Corporate Governance Report 2020 (“CG Report”) which is available on the Company’s
corporate website at www.mhc.com.my as well as announcement on the website of Bursa Malaysia Securities
Berhad (“Bursa Securities”) and in conjunction with the other statements in the Annual Report (for example,
Statement on Risk Management and Internal Control and Sustainability Statement).
The CG Report provides the details on how the Company has applied the following three (3) principles which
are set out in the MCCG during the financial year 2020:
(a) Board leadership and effectiveness;

(b) Effective audit and risk management; and
Annual Report 2020
(c) Integrity in corporate reporting and meaningful relationship with stakeholders.
The Group’s Governance Framework
34
Stakeholders
Company Board of
Secretary (ies) Directors
Committee
Executive Audit Nominating Remuneration to Review
Committee Committee Committee Committee Press or Public
Announcements
Risk
Management
Committee
[196001000393 (4060-V)]
Corporate Governance Overview Statement (cont’d)
Principle A : Board Leadership and Effectiveness
Principal Responsibilities of the Board
The Board is led by the Executive Chairman and is supported by an experienced and dynamic Board members
with a wide range of expertise, who play an important role in the stewardship of the direction and operations
of the Group.
The Board assumes full responsibilities for the overall performance of the Company and its subsidiaries by
setting the policies, short term and long term plans, establishing goals and monitoring the achievement of the
goals through strategic action plans and careful stewardship of the Group’s assets and resources. It focuses
on financial performance and crucial business issues, like principal risks and their management, succession
planning for senior management, investor relations programme and shareholders communication policy,
systems for internal control and compliance with laws and regulations.
Board Charter
The Board has a Board Charter which sets out the functions reserved for the Board and those delegated to
Management in the Board Charter (the “Charter”) which serves as a reference point for Board’s activities.
The Charter provides guidance for Directors and Management on the responsibilities of the Board and its
Committees, and requirements of Directors to ensure consistency with the Board’s strategic intent as well as
Annual Report 2020

relevant standards of corporate governance. The terms of the Charter are made available on the Company’s
website at www.mhc.com.my.
Along with good governance practices and in order to enhance transparency and accountability, the Board
has in place the following policies and procedures, full details of which are made available on the Company’s 35
website at www.mhc.com.my:
- Board Charter and Code of Conduct

- Code of Conduct and Ethics
- Shareholder’s Rights relating to General Meetings
- Whistleblowing Policy and Procedure
- Anti-Bribery and Corruption Policy
- Sustainability Policy
- Remuneration Policy and Procedures
Board Composition and Independence
The Board, led by the Executive Chairman, currently comprises five (5) members who bring with them a wide
mix of knowledge, business acumen, industry expertise and financial experience which are invaluable assets
required in their thorough examination and deliberations of the various key issues and matters involving the
Group. A brief description of the background of each Director is presented under the Directors’ profile section
of this Annual Report.
The Board is appropriately balanced to reflect the interest of substantial shareholders. As such, the Board
is satisfied that the current Board composition fairly represents and protects the interest of the minority
shareholders in the Company. The Independent Directors play a key role in providing unbiased views and
impartiality to the Board’s deliberation and decision-making process. In addition, the Independent Directors
ensure that matters and issues brought to the Board are given due consideration, fully discussed and examined,
taking into account the interest of all stakeholders in the Group. The assessment on independence of the
Directors based on the provisions of the Listing Requirements covers a series of objective tests and is carried
out before the appointment of the Independent Directors. Furthermore, the Board with assistance from the
Nominating Committee will undertake to carry out annual assessment of the effectiveness of the Independent
Non-Executive Directors and consider whether the Independent Non-Executive Directors can continue to bring
independent and objective judgement to the Board deliberations. Any Director who considers that he has or
may have a conflict of interest or a material personal interest or a direct or indirect interest or relationship that
could reasonably be considered to influence in a material way the Director’s decision in any matter concerning
the Company, is required to immediately disclose to the Board.
[196001000393 (4060-V)]
Principle A : Board Leadership and Effectiveness (cont’d)
Board Composition and Independence (cont’d)
The Board comprises five (5) members, of whom two (2) are Executive Directors and three (3) are Independent
Non-Executive Directors. The Company has thus satisfied Paragraph 15.02(1) of the Main Market Listing
Requirements (“MMLR”) of Bursa Securities, which requires that at least two or one-third of the Board
members, whichever is the higher, comprises Independent Non-Executive Directors.
The Company has taken note of Principle 4.2 of the Code that the tenure of an Independent Director should
not exceed a cumulative term of nine (9) years. Upon completion of nine (9) years, an Independent Director
may continue to serve on the Board subject to the director’s re-designation as a Non-Independent Director.
However, the Company does not have term limit policy for independent directors but the Nominating
Committee annually assesses the independence of the Directors based on the criteria stipulated in paragraph
1.01 of the Listing Requirements. Thus, the Board must justify and seek Shareholders’ approval at an Annual
General Meeting (“AGM”) in the event it retains the director as an Independent Director beyond nine (9)
years. If the Board continues to retain the Independent Director after the 12th year, the Board shall seek
Shareholders’ approval at an AGM through a two-tier voting process.
The Board shall examine the composition and size of the Board from time to time to ensure its effectiveness.
Annual Report 2020
In this regard, the Board through its Nominating Committee (NC) conducts an annual review of its size and
composition, to determine if the Board has the right size and sufficient diversity with independence elements
that fit the Company’s objectives and strategic goal.
36 Foster Commitment
Each Director does not hold more than five (5) directorships in public listed companies to ensure that they
have sufficient time to focus and discharge their duties and responsibilities. The Board is satisfied with the time
and level of commitment given by the Non-Executive Directors towards fulfilling their roles and responsibilities
as Directors of the Company during the financial year ended 31 December 2020.
Board Meetings
The Board meets four (4) times a year on a scheduled basis with additional meetings held when specific
urgent or important matters are required to be considered and decided between the scheduled meetings. A
total of four (4) Board Meetings were held during the financial year. All the Directors have complied with the
minimum attendance at Board Meetings as stipulated by Bursa Securities during the financial year as follows:
No Name of Directors Meeting Attendance

1 Dato’ Seri Mah King Seng 4/4
2 Tan Sri Dr. Mah King Thian 4/4
3 Mr. Chan Kam Leong 4/4
4 Puan Wan Salmah Binti Wan Abdullah 4/4
5 Mr. Heng Beng Fatt 4/4
6 Ms. Mah Li-Na
(Alternate Director to Dato’ Seri Mah King Seng) 4/4
7 Dr. Jordina Mah Siu Yi
(Alternate Director to Tan Sri Dr. Mah King Thian) 4/4
[196001000393 (4060-V)]
Gender Diversity Policy
The Company does not have a policy on gender diversity but the Board endeavours to have at least one (1)
woman Director participating on the Board at all times. The Board also endeavours to have diversity in its
workforce in terms of experience, qualification, ethnicity and age. The Board recognise the value of female
member of the Board. Currently, the Board has one female Director, Puan Wan Salmah Binti Wan Abdullah.
Re-appointment and Re-election of Directors
In accordance with the Company’s Constitution, all Directors who were appointed by the Board are subject
to re-election at the first opportunity after their appointment and at least one third (1/3) of the remaining
Directors are subject to re-election by rotation at each AGM. The Constitution also provide that all Directors
shall retire at least once in three (3) years and in accordance with the MMLR of Bursa Securities.
Where any Director is required to retire from office, the Nominating Committee reviews the composition of
the Board and decides whether to recommend such Director for re-election taking into account the Director’s
attendance at meetings, participation, contribution and time commitment.
Puan Wan Salmah Binti Wan Abdullah and Mr. Heng Beng Fatt will be retiring by rotation at the forthcoming
Annual Report 2020

AGM to be held on 31 May 2021 and being eligible, offered themselves for re-election. At the recommendation
of the Nominating Committee and as approved by the Board, they will be seeking re-election as Directors at
the 2021 AGM.
Continuous Training of Directors 37
Directors are expected to devote sufficient time to update their knowledge and enhance their skills through
appropriate continuing education programmes, so as to enable them to sustain their active participation in
the Board’s deliberations. Hence, the Board recognises and has undertaken an assessment of the training
needs of each Director to continue developing their skills and knowledge. All Directors have complied with
the Continuous Training Programme prescribed by Bursa Securities. However, every Director is encouraged to
evaluate their own training needs and undergo continuous training to equip himself with enhanced knowledge
and effectively contribute his duties to the Board.
During the financial year, the Directors have attended several conferences, seminars and training programmes
as follows:
• Panel Discussion on Covid-19 hosted by the Malaysian Health Ministry

• Towards a Resilient and Sustainable Food Security for Malaysia in Challenging Times
• Malaysia Budget 2021
• Technical Talk on Industrial Revolution (IR) 4.0 – Transformation to Smart Factory in Manufacturing: Are
you ready for it?
• MACC Gap Assessment Workshop
• Harnessing Recovery Path to the Next Normal
• An Introduction to Integrated Reporting
• Resilience in a Crisis
• Important Industrial & Higher Court Decisions of 2019
• Dialogue on S17A Corporate Liability and Adequate Procedures by MICG
• Expert Insight - Palm & Kernel Oil Prices Outlook Off Target - Get More Precise from REAL EXPERT
The Company Secretary keep the Directors informed of the relevant external training programmes.
The Company Secretary circulated from time to time the relevant guidelines on statutory and regulatory
requirements to the Directors.
The Board will continuously evaluate and determine the training needs of its members to assist them in the
discharge of their duties as Directors.
[196001000393 (4060-V)]
Qualified and Competent Company Secretary
The Board believes that the current Company Secretary is capable of carrying out her duties to ensure
effective functioning of the Board. The Company Secretary ensure that all Board and Board Committee
meetings are properly convened and that records of the deliberations, proceedings and resolutions passed
are properly recorded and statutory registers are properly maintained at the registered office of the Company.
She constantly keep herself abreast of the evolving capital market environment, regulatory changes and
developments in corporate governance by attending the relevant training programmes/conferences.
Access to Information and Advice
The Board has access to information within the Group and the advice and services of the Company Secretary.
The Directors may obtain independent professional advice to enhance their duties whenever necessary at the
Company’s expense, subject to approval by the Chairman or the Board and depending on the quantum of
the fees involved.
The Board members are provided with all meeting materials including updates on operational, financial and
corporate issues as well as minutes of meetings of the various Board Committees at least five (5) days prior to
Annual Report 2020
the meetings to enable Directors to obtain further explanations/clarifications, if necessary, in order to ensure
the effectiveness of the proceeding of the meetings.
Board Committees
38
The Board is assisted by the following Sub-Committees in the discharge of its duties and responsibilities:
Audit Committee (“AC”)

Executive Committee (“EC”)
Nominating Committee (“NC”)
Remuneration Committee (“RC”)
Committee for the review of press releases or public announcements
AC
The AC was established on 27 September 2000 to support the Board of Directors in overseeing the processes
for production of financial data and reviewing the financial reports and the internal controls of the Company.
Details of the composition and summary of work of the AC are set out in the AC Report on pages 50 to 51
of this Annual Report.
EC
The EC was set up on 24 May 2001 to act on behalf of the Board on matters concerning administration,
operations, capital expenditure, debt approvals and investments. It meets at regular intervals to review the
operations, budget and investment strategy. It has three (3) members comprising the Executive Chairman, the
Managing Director and a Senior Executive:
1) Datin Seri Ooi Ah Thin (Senior Executive) - Chairperson

2) Dato’ Seri Mah King Seng (Executive Chairman)
3) Tan Sri Dr. Mah King Thian (Managing Director)
NC
The role of the NC is to assist the Board in ensuring that the Board comprises individuals with the requisite
skills, knowledge, professional expertise and character.
[196001000393 (4060-V)]
Board Committees (cont’d)
NC (cont’d)
The NC comprises exclusively Non-Executive Directors who are independent. Currently, the members are as
follows:
1) Mr. Chan Kam Leong (Chairman, Independent Non-Executive)

2) Puan Wan Salmah Binti Wan Abdullah (Independent Non-Executive)
3) Mr. Heng Beng Fatt (Independent Non-Executive)
The NC meets as and when necessary. One (1) meeting was held during the financial year ended 31 December
2020.
The nomination and election process of board members can be found on the Company’s website at www.
mhc.com.my.
Annual Report 2020

The activities of the NC during the financial year are as follows:
- Reviewed the mix of skills, independence, experience and other qualities of the Board.
- Reviewing the terms of office and performance of the AC, NC and the RC.
- Reviewed and recommended to the Board to put for the proposal for the re-election of Directors at the 39
forthcoming AGM of the Company.
- Assessed the independence of the Independent Directors.
- Reviewed and recommended the continuation in office of an Independent Non-Executive Director for
Mr. Chan Kam Leong and Puan Wan Salmah Binti Wan Abdullah who have served as Independent Non-
Executive Directors of the Company for a cumulative term of more than nine (9) years;
- Reviewed the annual assessment of the effectiveness of the Board, committees and individual Directors
with the following criteria used:
Audit Committee
i) Quality and Composition;
ii) Skills and Competencies; and
iii) Meeting Administration and Conduct.
Board of Directors
i) Board Roles and Responsibilities
ii) The Board Operations and the Company Senior Management
iii) Board Meetings and Facilities
iv) Board Composition
v) Board Committees
At the NC meeting held on 17 November 2020, the NC had conducted and carried out an annual assessment
of the Board and its individual members, the AC and its members, and the RC and its members, including
assessing in the area of board diversity, composition and governance, decision-making and Boardroom
activities, skills and contribution of each director. The NC was satisfied with the current board size and the
effectiveness of the Board/Board Committees and thus, no recommendation on the change of composition
of the Board is made. All assessments and evaluations out by the NC in discharging its functions have been
properly documented.
[196001000393 (4060-V)]
Board Committees (cont’d)
RC
The RC comprises the following three (3) members:
1) Tan Sri Dr. Mah King Thian (Chairman, Managing Director)

2) Mr. Chan Kam Leong (Member, Independent Non-Executive)
3) Puan Wan Salmah Binti Wan Abdullah (Member, Independent Non-Executive)
The RC meets as and when necessary. One (1) meeting was held during the financial year ended 31 December
2020.
The RC provides remuneration packages which are sufficient and necessary to attract, retain and motivate
Executive Directors and Senior Management to run the Company. The remuneration of Non-Executive Directors
is linked to their experience and level of responsibilities undertaken by them.
The Board has a Remuneration Policy and Procedure which facilitates the RC to review, consider and recommend
to the Board for decision on the remuneration packages of the Executive Directors and Senior Management.
Annual Report 2020
The Remuneration Policy and Procedure can be found on the Company’s website at www.mhc.com.my.
Committee for the Review of Press Releases or Public Announcements

40
The Committee for the review of press releases or public announcements, comprising the Executive Chairman,
Dato’ Seri Mah King Seng, and the Managing Director, Tan Sri Dr. Mah King Thian, is responsible for making
timely dissemination of information to the shareholders and investing public and ensuring that the information
released is factual, clear, accurate and not false or misleading.
Remuneration of Directors and Key Senior Management Personnel
The Company’s framework on Directors’ remuneration has the underlying objectives of attracting and
retaining Directors of high calibre needed to run the Group successfully. In the case of the Executive Directors,
the various components of the remuneration are structured so as to link rewards to corporate and individual
performance. In the case of Non-Executive Directors, the level of remuneration reflects the expertise, experience
and level of responsibilities undertaken by a particular Non-Executive Director concerned.
The Company has identified the Chief Operating Officer, Group General Manager of the Company’s subsidiary
namely Cepatwawasan Group Berhad and Group Accountant who are the most senior management personnel
outside the Board as its key senior management personnel.
The objective of the Group’s remuneration policies is to provide fair and competitive remuneration to its Board
and senior management personnel in order for the Company to benefit by attracting and retaining a high
quality team.
The Company pays its Non-Executive Directors allowances based on attendance of meetings and level of
responsibilities.
The Company provides Directors’ and Officers’ Liability Insurance and may provide an indemnity to the fullest
extent permitted by the Companies Act, 2016, and the cost of such Liability Insurance is set out in the
Directors’ Report.
[196001000393 (4060-V)]
Remuneration of Directors and Key Senior Management Personnel (cont’d)
The details of the remuneration of Directors comprising remuneration received/receivable from the Group
and Company during the financial year are as follows:

Benefits-
Salary Fees Bonus Allowance in-kind EPF Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group
Executive Directors
Dato’ Seri Mah King Seng 1,126 - 292 40 - 170 1,628
Tan Sri Dr. Mah King Thian 1,126 - 292 69 24 170 1,681
Total 2,252 - 584 109 24 340 3,309
Annual Report 2020

Non-Executive Directors
Mr. Chan Kam Leong - 53 - 46 - - 99
Puan Wan Salmah Binti
Wan Abdullah - - - 46 - - 46 41
Mr. Heng Beng Fatt - - - 46 - - 46
- 53 - 138 - - 191
Alternate Director
Ms. Mah Li-Na 86 - 21 - - 13 120
Dr. Jordina Mah Siu Yi 43 - - - - 6 49
129 - 21 - - 19 169
Company
Executive Directors
Dato’ Seri Mah King Seng - - - - - - -
Tan Sri Dr. Mah King Thian 240 - 65 - - 37 342
Total 240 - 65 - - 37 342

Non-Executive Directors
Mr. Chan Kam Leong - - - 46 - - 46
Puan Wan Salmah Binti
Wan Abdullah - - - 46 - - 46
Mr. Heng Beng Fatt - - - 46 - - 46
- - - 138 - - 138
[196001000393 (4060-V)]
Principle B : Effective Audit and Risk management
Risk Management and Internal Control Framework
The Board has a Group Risk Management Committee (RMC) that comprises the Managing Director and senior
management to review the risk management framework and assess the various types of risks which might
have an impact on the profitable operation of the Group’s business. This includes operational, market, legal
and environmental risks. The key features of the risk management framework are set out in the Statement on
Risk Management and Internal Control on Pages 45 to 49 of this Annual Report.
In accordance with the Code and the MMLR of Bursa Securities, the Board has an internal audit function
which reports directly to the AC. The function is currently outsourced to an independent professional firm. The
AC had also undertook an annual assessment of the quality of the internal auditor based on an assessment
questionnaire, and no material issue and major deficiency had been noted which pose a high risk to the overall
system of internal control under review.
Details on scope of work performed during the financial year under review are provided in the AC Report set
out on Pages 50 to 51 of this Annual Report.
Annual Report 2020
Assessment of Suitability and Independence of External Auditors (EA)
The AC had deliberated the outcome of the Evaluation of the EA including the assessment of the
Engagement Teams’ qualification, credentials and experience, particularly in the financial service sector, the
42 firms’ competitive advantage with global network resources, their audit work approach, and their ability
to provide value added and service as well as to perform the work within MHC’s timeline. Messrs PKF had
also confirmed their independence throughout the conduct of the audit engagement with the Company in
accordance with the independence criteria set out by the International Federation of Accountants and the
Malaysian Institute of Accountants.
A statement by the Directors of their responsibilities in preparing the financial statements is set out on Page
44 of this Annual Report.
Relationship with the Auditors
The Board has a formal and transparent arrangement with its external auditors to meet their professional
requirements. The auditors have continued to highlight to the AC and Board of Directors matters that require
the Board’s attention. The AC will have a private session with the external auditors without the presence of
any executive of the Group at least twice (2) a year. In addition, the external auditors are invited to attend
the Company’s AGM.
The role of the AC in relation to the external auditors is set out in the Report of AC on Pages 50 to 51 of this
Annual Report.
[196001000393 (4060-V)]
Principle C : Integrity in Corporate Reporting and Meaningful relationship with Stakeholders
Investor Relations and Communication
The Board recognises the importance of timely dissemination of information to its shareholders to keep them
well informed of all major developments of the Group. Disclosures in the Annual Report, announcements and
releases of the quarterly financial results provide the shareholders and the investing public with a periodic
overview of the Group’s performance and operations.
The Company uses the AGM as a forum for dialogue and interaction with all its shareholders. Shareholders
are encouraged to attend and participate in the AGM. They will be given the opportunity to seek clarification
on any matters pertaining to the Company’s affairs and performance, as the Directors and the representatives
of the External Auditors will be present to answer any questions that they may have.
The Board has identified Mr. Chan Kam Leong, the Independent Non-Executive Director, as the Liaison Director
to whom the shareholders, management and others may convey their concerns.
Shareholders may also contact the Company Secretary at any time for information.
Annual Report 2020

The Company’s website at www.mhc.com.my contains vital information concerning the Group which is
updated on a regular basis and shareholders are able to put questions to the Company through the website.
Poll Voting
43
In line with the MMLR, all resolutions set out in the Notice of AGM will be voted by poll and a scrutineer will
be appointed to validate the vote cast. Poll voting more accurately and fairly reflects shareholders’ views as
every vote is recognised thus enforcing greater shareholders’ rights.
Compliance with the Code
The Group has complied with the Principles of Corporate Governance as contained in the Code except for the
following exception that, in the opinion of the Directors, adequately suit the circumstances:
• Practice 4.5 (The board discloses in its annual report the company’s policies on gender diversity, its targets
and measures to meet those targets. For Large Companies, the board must have at least 30% women
directors.)
• Practice 4.6 (In identifying candidates for appointment of directors, the board does not solely rely on
recommendations from existing board members, management or major shareholders. The board utilises
independent sources to identify suitably qualified candidates.)
• Practice 7.2 (The board discloses on a named basis the top five senior management’s remuneration
component including salary, bonus, benefits-in-kind and other emoluments in bands of RM50,000.)
The explanation for departure is further disclosed in the Corporate Governance Report.
The Statement and Corporate Governance Report were approved by the Board of Directors of MHC on
23 February 2021.
[196001000393 (4060-V)]
Statement of Directors’ Responsibility

for Preparing the Audited Financial Statements
The Directors are required by the Companies Act, 2016 to prepare financial statements for each financial year
which give a true and fair view of the state of affairs of the Group and of the Company as at the end of the
financial year and of their results and cash flows for the financial year then ended.
In preparing the financial statements, the Directors have:

• selected appropriate accounting policies and applied them consistently;
• made judgements and estimates that are reasonable and prudent;
• stated whether applicable accounting standards have been followed and made a statement to that
effect in the financial statements, subject to any material departures being disclosed and explained in the
financial statements; and
• prepared the financial statements on a going concern basis.
The Directors are responsible for ensuring that proper accounting records are kept so as to enable disclosure of
the accounts, financial position and other financial reports of the Group and of the Company are prepared in
accordance with the applicable approved accounting standards in Malaysia and comply with the requirement
of the Companies Act, 2016.
Annual Report 2020
They are responsible for taking reasonable steps to safeguard the assets of the Group and of the Company
for the prevention and detection of fraud and other irregularities. The Board of Directors is satisfied that the
Group has applied the appropriate accounting policies and standards consistently in the preparation of the
44
financial statements for the financial year ended 31 December 2020.
[196001000393 (4060-V)]
Statement on Risk Management and Internal Control
INTRODUCTION
The Board of Directors (“the Board”) is pleased to present the Group’s Statement on Risk Management and
Internal Control for the financial year ended 31 December 2020 which is made in compliance with Paragraph
15.26(b) of the Bursa Malaysia Securities Berhad’s (Bursa Malaysia) Main Market Listing Requirements and is
guided by “Statement on Risk Management and Internal Control: Guidelines for Directors and Listed Issuers”
endorsed by Bursa Malaysia.
BOARD’S RESPONSIBILITY
The Board acknowledges its responsibility for establishing an efficient and effective sound risk management
framework and internal control system. The Board ensures the Group’s key areas of risk are managed within
an acceptable risks profile. There is an on-going review process for identifying, evaluating, responding to and
managing significant risk faced by the Group to ensure the adequacy and integrity of the system.
In view of the limitations that are inherent in any system of internal control, this system is designed to manage
key risks, rather than eliminate the risk of failure to achieve corporate objectives. Accordingly, the system can
Annual Report 2020

only provide reasonable but not absolute assurance against material misstatement, operational failures, fraud
or loss.
45
RISK POLICY
The Group recognises its primary responsibility is to ensure the long term viability of the Group. The Group
recognises that the risk is an integral and unavoidable component of its business and is characterised by
threats and opportunities. The Group fosters a risk-aware corporate culture in all decision making. Our policy,
therefore, is to achieve a proper balance between risk incurred and potential returns to shareholders and
stakeholders.
RISK MANAGEMENT FRAMEWORK AND CONTROL SELF-ASSESSMENT
The Board has put in place a risk management framework and ongoing process to assess the various types
of risks, which might have an impact on the profitable operation of the Group’s business. These include
operational risk, market risk, legal risk and environmental risk. After the review and taking into consideration
the nature of the Group’s business, the Directors are of the view that the Group is not materially exposed to
legal and environmental risks and therefore have concluded to focus on the operational risks relevant to the
business. Although there is exposure to market risk as a result of price fluctuations in the commodity market,
the Directors consider these as movements in market forces inherent in the industry in which the Group
operates.
The Board has established a formal Group Risk Management Committee that comprises the Managing Director
and senior management. The Group Risk Management Committee is entrusted with the responsibilities of
identifying and evaluating various critical risks that are considered likely to affect the profitable operation of
the business units in the Group.
[196001000393 (4060-V)]
Statement on Risk Management and Internal Control (cont’d)
The key risk management processes for the main risk areas of the Group are as follows:
Risk Area Risk Management Process
Business/Operation Risks - Relevant discussions have been held with the operational managers
on the major risks affecting the business operations of the Group.
As a result, a database of all major risks and controls, and subsequent
actions taken was compiled to produce a divisional risk profile of the
business units evaluated under the risk management plan.
- Business/Operation Heads are provided with reports to enable them
to review, discuss and monitor the risk profiles and implementation
of action plans.
- The Group implemented attractive remuneration schemes to attract
and retain a skilled workforce to meet existing and future needs.
- The Group is upgrading the living quarters of guest workers omplete
with amenities including electricity and water, medical care, crèche,
Annual Report 2020
recreational and sports facilities in phases to attract and retain

skilled workforce.
- To cope with the adverse climatic conditions affecting oil palms, the
plantation division strictly follows the requirements of the planting
46
manual, employs good agricultural practices, and adopts water
conservation and irrigation measures to sustain high production
yields.
- The Group is continuously devising ways to mechanise and increase
efficiency and productivity to mitigate the risk of labour shortages.
[196001000393 (4060-V)]
The key risk management processes for the main risk areas of the Group are as follows: (cont’d)
Risk Area Risk Management Process
Financial Risks - The key financial risks of the Group include credit risk and liquidity
risk.
- Credit risks arise from the inability to recover debts in a timely
manner which may adversely affect the Group’s profitability,
cash flows and funding. The Group minimises such exposures by
assessing the creditworthiness of potential customers, closely
monitoring collections and overdue debts, and effectively utilising
credit to keep leverage at a comfortable level.
- The Group trades only with recognised and creditworthy customers.
It is the Group’s policy that all customers who wish to trade on
credit terms are subject to credit verification procedures. In addition,
receivables balances are monitored on an going basis and the
Group’s exposure to bad debts is very minimal. The Group usually
Annual Report 2020

trades only with recognised and creditworthy customers in which
there is no requirement for collateral. Liquidity risk is the risk that
the Group will encounter difficulty in meeting financial obligations
due to shortage of funds. The Group’s exposure to liquidity risk
47
arises primarily from mismatches of maturities of financial assets
and liabilities. The Group actively manages their debt maturity
profile, operating cash flows and the availability of funding so as
to ensure that all refinancing, repayment and funding needs are
met. As part of its overall prudent liquidity management, the Group
maintains sufficient levels of cash or cash convertible investments to
meet its working capital requirements.
COVID-19 - The Group established SOPs and precautionary practices to guide

operations during the Covid-19 pandemic. A strict compliance of
wearing face mask, observing physical distancing and sanitisation of
work place area are some of the measures taken by the Group. The
Group will continue to take precautionary measures and monitor
the situation closely, and will do whatever is necessary to protect its
employees whilst ensuring business continuity.
[196001000393 (4060-V)]
INTERNAL AUDIT FUNCTION
The Board recognises that effective monitoring on a continuous basis is a vital component of a sound internal
control system. In this respect, the Board through the Audit Committee regularly receives and reviews reports
on internal control from its internal audit function.
The internal audit function is outsourced to a professional services firm which reports directly to the Audit
Committee. The Internal Audit Function adopts a risk-based approach with focus on effective risk management
practices. The scope of work covered by the internal audit function is determined by the Audit Committee
after careful consideration and discussion of the audit plan with the Board. Observations from internal audits
were presented to the Audit Committee together with management’s response and proposed action plans
for its review. The action plans were then followed up during subsequent internal audits with implementation
status reported to the Audit Committee. The costs incurred for the Internal Audit function for the financial
year ended 31 December 2020 totalled RM23,600.
OTHER KEY ELEMENTS OF INTERNAL CONTROL

Annual Report 2020
Other key elements of the Group’s internal control are as follows:
• The Board of Directors reviews the operational and financial performance of the Group every quarter
48
and management meetings are conducted regularly at head office and operating division level. The
Executive Committee (“EXCO”) is aware of the significant issues identified in those meetings, and when
necessary the EXCO shall be involved in resolving those issues. The Group has been restructured in such
a way that duties are properly segregated to ensure safe custody of the Group’s assets and to provide
clear and transparent reporting lines.
• Timely preparation of quarterly operational and financial reports to the Board and monthly financial
reports to Senior Management for review.
• Existence of an organisational structure with clear delegation of responsibilities.
• The Company has implemented a system of controls as set out in the Operations Manual. The Board
will review from time to time and update the financial authority limits set out therein as and when
necessary.
• A detailed budgeting process takes place annually, where each business unit prepares its budget for
the following financial year and the budget is then reviewed by the Managing Director, after which the
budget is submitted to the Board for formal approval.
• Regular visits to the Operating Centres by the Managing Director and senior management whenever
appropriate.
• Proposals for major capital expenditure and investment by the Group are reviewed and approved by
the Board of Directors. All other purchases and payments are approved according to formalised limits
of authority.
• The Remuneration Committee evaluates and reviews the remuneration packages of the executive
directors and senior management.
• The Audit Committee reviews the internal audit plan for the year, and reviews and holds discussions on
the actions taken on internal control issues identified in the reports prepared by the Internal Auditor.
• Regular management meetings.
[196001000393 (4060-V)]
ADEQUACY AND EFFECTIVENESS OF THE GROUP’S RISK MANAGEMENT AND INTERNAL CONTROL
SYSTEM
The Board has reviewed the adequacy and effectiveness of the Group’s risk management and internal control
system for the year under review and up to the date of approval of this statement for inclusion in the Annual
Report, and is of the view that the risk management and internal control system is satisfactory and there were
no material internal control failures nor have any of the reported weaknesses resulted in material losses or
contingencies during the financial year under review.
For the period under review, the Managing Director and the Group Accountant have provided assurance to
the Board that to the best of their knowledge, the Group’s risk management and internal control system are
operating adequately and effectively in all material aspects.
REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS
In accordance with paragraph 15.23 of the Bursa Malaysia Securities Berhad Main Market Listing Requirements,
the external auditors have reviewed this Statement for inclusion in the Annual Report of the Group for the
Annual Report 2020

year ended 31 December 2020 and reported to the Board that nothing has come to their attention that
caused them to believe that the Statement which is intended to be included in the annual report is not
prepared, in all material respects, in accordance with the disclosures required by paragraphs 41 and 42 of
the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers, nor is the 49
Statement factually inaccurate.
This Statement on Risk Management and Internal Control is made in accordance with the resolution of the
Board dated 23 February 2021.
[196001000393 (4060-V)]
Audit Committee Report
The Board of Directors (“Board”) of MHC Plantations Bhd is pleased to present the report of the Audit
Committee (“AC”) for the financial year ended 31 December 2020 in compliance with Paragraph 15.15 of the
Main Market Listing Requirement (“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”).
Members of the Committee
The AC comprises the following three (3) members, all of whom are Non-Executive Directors with all of them
being Independent Directors, which complies with Paragraph 15.09(1) of the MMLR of Bursa Securities:
Mr. Chan Kam Leong – Chairman, Independent Non-Executive Director

Puan Wan Salmah Binti Wan Abdullah – Member, Independent Non-Executive Director
Mr. Heng Beng Fatt – Member, Independent Non-Executive Director
One of the members, Mr. Heng Beng Fatt is a member of the Malaysian Institute of Accountants which
complies with Paragraph 15.09(1)(c)(i) of the MMLR of Bursa Securities and is in line with Practice 8.1 under
the Malaysian Code on Corporate Governance (“the Code”). No Alternate Director is appointed as a member
of the AC.
The detailed profiles of all the members of the AC are shown in the Directors’ Profile.
Annual Report 2020
Number of Meetings and Details of Attendance
The AC met four (4) times during the financial year ended 31 December 2020 to conduct and discharge
its functions in accordance with its Terms of Reference. The Group Accountant and representatives of the
50 internal and external auditors were invited to attend the AC meetings conducted during the financial year.
The attendance record of each member is as follows:
Audit Committee Members Number of Meetings Attended

Mr. Chan Kam Leong 4 of 4
Puan Wan Salmah Binti Wan Abdullah 4 of 4
Mr. Heng Beng Fatt 4 of 4
The terms of reference of Audit Committee can be found at the Company’s website at www.mhc.com.my
Summary of Work For the Financial Year
The works of the AC during the financial year are as summarised below:
(a) Reviewed the unaudited quarterly Group results prior to recommending them to the Board for approval
for announcement to Bursa Securities;
(b) The AC has received a special notice dated 22 June 2020 from Dato’ Mah Pooi Soo Realty Sdn. Bhd.
(“MPSR”) of their intention to nominate Messrs PKF for appointment as Auditors of MHC, to replace
the outgoing Auditors, Messrs Ernst & Young PLT who have expressed that they did not wish to seek
for re-appointment.
The AC having assessed the qualification and capabilities of several audit firms (including their reputation
and credentials and experience, firm’s competitive advantage, qualification and independence of its
professional), then recommended to the Board for the appointment of Messrs PKF as the new Auditors,
in place of Messrs Ernst & Young PLT for shareholders’ approval;
(c) Reviewed prior to the commencement of audit, the external auditors’ scope of engagement, their audit
plan and approach and their request for any increase in audit fees;
(d) Reviewed and discussed with the external auditors the updates or new developments on accounting
standards issued by the Malaysian Accounting Standards Board and the Company’s compliance with
the applicable standards;
[196001000393 (4060-V)]
Audit Committee Report (cont’d)
Summary of Work For the Financial Year (cont’d)
(e) Reviewed with the external auditors the results of their audit, their audit report and management
letters relating to the audit, their internal control recommendations in respect of control weaknesses
noted in the course of their audit and the management’s responses thereto. The Committee also
appraised the adequacy of actions and measures subsequently taken by the management to address
the issues and recommended, where relevant, further improvement measures;
(f) Reviewed the draft audited financial statements prior to recommending the same to the Board for
approval;
(g) Reviewed the statement on risk management and internal control before recommending to the Board
for approval for inclusion in the Annual Report;
(h) Considered the proposals received for the internal audit function and recommended the re-appointment
of the internal auditors;
(i) Reviewed the related party transactions that had arisen prior to recommending them to the Board for
approval;
(j) Reviewed the internal auditor’s reports, their recommendations and the management responses.
Annual Report 2020

Improvement actions in the area of internal controls, systems and efficiency enhancements suggested
by the internal auditor were discussed together with management;
(k) Carried out an annual review of the performance of the Internal Auditor, including assessment of their
suitability and independence in performing their obligation; and
51
(l) Followed up on the implementation actions taken by management in respect of the internal auditor’s
recommendations.
Internal Audit Function
The Group’s internal audit function is carried by an independent external firm of professional Internal Auditors,
namely KPMG Management & Risk Consulting Sdn Bhd. The Internal Audit Function adopts a risk-based
approach with focus on effective risk management practices. The role of the internal audit function, which
reports directly to the AC, is to support the AC by providing it with independent and objective reports on
the adequacy and effectiveness of the system of internal control and the extent of compliance with the
procedures and by recommending ways to rectify shortfall and improve the existing control environment
in relation to the Group’s operations. It submits its findings and recommendations to the AC and senior
management of the Group.
During the financial year under review, the Internal Audit conducted a series of audit assignments on
operating segments of the Group. Internal audit activities carried out for the financial year include, inter alia,
the following:
• FFB harvesting and collections;

• Security and upkeep of estate; and
• Job contracting and general purchases
The audit report incorporating the internal auditors’ findings and recommendations with regard to the system
operations and control weaknesses noted in the course of their audit and the management’s responses
thereto were subsequently submitted to the AC. The action plans were then followed up during subsequent
internal audits with implementation status reported to the AC for their attention.
The cost incurred for the internal audit function of the Group for the financial year ended 31 December 2020
was RM23,600.
[196001000393 (4060-V)]
Additional Compliance Information

Pursuant to the Listing Requirements of Bursa Malaysia Securities Berhad
for the year ended 31 December 2020
- Utilisation of Proceeds
The Company did not raise any funds through any corporate proposal during the financial year.
- Auditors’ Remuneration
The audit fee and non-audit fee paid and payable to the External Auditors by the Group and of the
Company for the financial year ended 31 December 2020 are as follows:
Group Company
RM RM
Audit fee 317,000 55,000

Non-Audit fee 52,000 7,500

369,000 62,500
Annual Report 2020
- Material Contracts awarded to Directors and Substantial Shareholders
52
There were no material contracts entered into by the Company and its subsidiaries involving directors
and major shareholders’ interests still subsisting at the end of the financial year except for those disclosed
under related party transaction on page 142 to 144 of this Annual Report.

- Contracts Relating to Loans
There were no contracts relating to loans entered into by the Company and its subsidiaries involving
directors’ and major shareholders’ interests during the financial year ended 31 December 2020.
- Recurrent Related Party Transactions
The Company incurs related party transaction in the ordinary course of business with a private company
connected to certain directors. The total amount involved falls below the threshold requiring announcements
and/or shareholders’ mandate.
[196001000393 (4060-V)]
List of Properties
as at 31 December 2020
Net Book
Value
As At
Location of Property Year of Land 31.12.2020 Date of last
Peninsular Malaysia Tenure Expiry Area Description RM’000 Revaluation ®

1 MHC Plantations Bhd. Grant in perpetuity N/A 849.8 acres Oil palm estate 3,626 1998
Lot Nos. 2768, 3502, 3537, 4471,
4475, 5228, 5229, 5936, 9249 to
9295 (incl.), 12657 and 12658,
Mukim of Durien Sebatang,
District of Hilir Perak,
Perak Darul Ridzuan

2 MHC Plantations Bhd. Grant in perpetuity N/A 702.6 acres Oil palm estate 3,005 1998
Lot Nos. 2327, 5299, 5300, 8275
and 16413, Mukim of Durien
Sebatang, District of Hilir Perak,
Perak Darul Ridzuan

3 MHC Plantations Bhd. Leasehold 999 years 21.02.2883 10,142 sq. feet 6½-storey commercial 935 1998
Lot Nos. 3318, 3319, 3342 to structure partly used
3345 (incl.), Town of Teluk Intan, as a hotel known as
Annual Report 2020

District of Hilir Perak, Hotel Anson and partly
Perak Darul Ridzuan as office premises

4 MHC Plantations Bhd. Grant in perpetuity N/A 2,325 sq. feet 3-storey commercial 1,250 2020
Lot No. 4453, Town of Teluk Intan, shophouse
Perak Darul Ridzuan 53

5 Anson Oil Industries Sdn. Bhd. Leasehold 99 years 28.02.2111 992.3 acres Oil palm estate 4,147 1998
Lot No. PT 6438, Mukim of
Changkat Jong, District of
Hilir Perak, Perak Darul Ridzuan

6 Anson Oil Industries Sdn. Bhd. Leasehold 99 years 27.02.2111 906.9 acres Oil palm estate 3,249 1998
Lot No. 8859, Mukim of
Hutan Melintang, District of

7 Anson Oil Industries Sdn. Bhd. Grant in perpetuity N/A 464 sq. metre 1½-storey 674 2020
Lot Nos. 26798, Mukim Durian semi-detached factory
Sebatang, Daerah Hilir Perak,
Perak Darul Ridzuan
8 Majuperak Plantation Sdn. Bhd. Leasehold 99 years 26.08.2090 1,000.5 acres Oil palm estate 3,034 1998
Lot No. 10471, Mukim of Hutan
Melintang, District of Hilir Perak,
Perak Darul Ridzuan
9 Sharikat Muzwin Bersaudara Leasehold 99 years 07.03.2111 1,000.0 acres Oil palm estate 2,675 1998
Sdn. Bhd.
Hutan Melintang, District of
10 Yew Lee Holdings Sdn. Berhad Leasehold 99 years 27.02.2111 969.0 acres Oil palm estate 2,583 1998
Changkat Jong, District of
[196001000393 (4060-V)]
List of Properties
as at 31 December 2020 (cont’d)
Net Book
Value
As At
Peninsular Malaysia Tenure Expiry Area Description RM’000 Revaluation ®
11 Hutan Melintang Plantations Leasehold 99 years 28.02.2111 978.9 acres Oil palm estate 4,773 1998
Sdn. Berhad
Lot No. PT 8861, Mukim of Hutan
Melintang, District of Hilir Perak,
Perak Darul Ridzuan
12 Champion Point Sdn. Bhd. Grant in perpetuity N/A 188.88 acres Oil palm estate 2,645 1998
Lot Nos. 10065, 10066,
10068, 10069, 10071-10075
(Incl.), PT 30768, PT 30769,
Mukim of Durien Sebatang,
Perak Darul Ridzuan
13 Mah Hock Company Grant in perpetuity N/A 20.43 acres Oil palm estate 1,434 N/A
Sendirian Berhad
Lot Nos. PT 30770 and
Annual Report 2020
PT 30766, Mukim of Durien

Sebatang, District of Hilir Perak,
Perak Darul Ridzuan
54
[196001000393 (4060-V)]
List of Properties
Net Book
Value
As At
Sabah Tenure Expiry Area Description RM’000 Revaluation ®

14 Prolific, Wong Tet-Jung Plantations Leasehold 99 years 2069 39.752 hectares Oil Palm Plantation 8,720 N/A
Off KM 63.7, 2070 30.607 hectares & Oil Mill
Sandakan-Lahad Datu Highway 2074 8.010 hectares
2075 207.903 hectares
2076 9.967 hectares
2077 24.460 hectares
2082 6.463 hectares
Perpetuity
(Sublease 99 years) 2097 6.435 hectares
Kolapis-Beluran Area Leasehold 99 years 2073 2.250 hectares Plantable Reserve
District of Labuk Sugut 408.637 hectares

Prolific Yield Under Sub Division 2081 167.22 Sq. M Double Storey 119 N/A
Lot 38, Block C Leasehold 99 years Terrace Shoplot
Taman Indah Jaya Phase 4A, (Parent title
Mile 4, Jalan Utara, Sandakan TL077552035)
Annual Report 2020

15 Melabau, Suara Baru, Gelang Usaha Leasehold 99 years 2069 27.480 hectares Oil Palm Plantation 552 N/A
0.2 Km East of KM 96, 2078 17.110 hectares Oil Palm Plantation 19,406 N/A
Sandakan-Lahad Datu Highway 2079 260.780 hectares & Quarry
2080 202.303 hectares
2081 136.615 hectares 55
2085 252.660 hectares
2095 4.993 hectares
2093 154.700 hectares
Perpetuity
(Sublease 99 years) 2075 316.549 hectares
2080 136.763 hectares
2093 5.751 hectares
KM 28, Jalan Labuk Leasehold 99 years 2065 1.842 hectares Plantable Reserve
1,644.396 hectares
16 Sri Likas Mewah, Ultisearch Trading Leasehold 99 years 2085 10.120 hectares Oil Palm Plantation 3,054 N/A
2.6 KM north of KM 31, 2094 386.100 hectares
Sukau Road 2096 168.700 hectares
612.670 hectares

17 Bakara Leasehold 99 years 2085 150.300 hectares Oil Palm Plantation 2,910 N/A
Bukit Garam/Sg. Lokan 2087 400.000 hectares
Off KM 76.5,
Sandakan-Lahad Highway 550.300 hectares

18 Cepatwawasan & Kovusak Leasehold 99 years 2061 992.700 hectares Oil Palm Plantation 21,858 N/A
KM 4.5, Jalan Beluran 2071 133.550 hectares
1,610.85 hectares

19 Razijaya & Sungguh Mulia Leasehold 99 years 2098 362.200 hectares Oil Palm Plantation, 12,612 N/A
Sungai-Sungai Locality, Quarry &
99 KM North-West of Sandakan Plantable Reserve
[196001000393 (4060-V)]
List of Properties
Net Book
Value
As At
Sabah Tenure Expiry Area Description RM’000 Revaluation ®

20 Prima Semasa Leasehold 99 years 2094 2,997.000 hectares Oil Palm Plantation 32,859 N/A
Sonsogon Suyad, Paitan Locality & Plantable Reserve
105 KM North-West of Sandakan

21 Cepatwawasan, Tentu Bernas, Leasehold 99 years 2097 242.800 hectares Oil Palm Plantation 4,714 N/A
Tentu Cergas, Liga Semarak & 2098 145.710 hectares & Plantable Reserve
Jutategak 2099 48.550 hectares
Sg. Kawananan Locality 2100 48.520 hectares
113 KM North-West of Sandakan 485.580 hectares
22 Ladang Cepat-KPD Leasehold 99 years 2087 1,595.860 hectares Oil Palm Plantation 22,340 N/A
85 KM South-West of Beaufort
23 Cepatwawasan Group Berhad Leasehold 99 years 2106 564.386 Sq. M Three Storey 743 N/A
Lot 70, Block 6, Prima Square Shop/Office
Mile 4, North Road, Sandakan
Annual Report 2020
24 Cepatwawasan Group Berhad Leasehold 99 years 2081 106.500 Sq. M Eight Storey 118 N/A
Unit no. F-7-2, Level 7, Block F Apartment
Utama Court, Phase 2, Mile 6
North Road, Sandakan

56 25 Cepatwawasan Group Berhad Leasehold 99 years 2081 106.500 Sq. M Eight Storey 119 N/A
Unit no. F-8-2, Level 8, Block F Apartment
Utama Court, Phase 2, Mile 6
North Road, Sandakan

Unit no. B1-10-1, Condominium
Sri Utama Condominiums

Unit no. B1-10-3, Condominium
Sri Utama Condominiums
28 Mistral Engineering Leasehold 99 years 2074 3.115 hectares Biogas power plant 3,397 N/A
Off KM 63.7,
Sandakan-Lahad Datu Highway

29 Cash Horse Leasehold 99 years 2074 7.070 hectares Biomass power plant 11,420 N/A
Off KM 63.7,
Sandakan-Lahad Datu Highway
[196001000393 (4060-V)]
List of Properties
Net Book
Value
As At
Kuala Lumpur Tenure Expiry Area Description RM’000 Revaluation ®

30 Minelink Freehold - 896.976 Sq. M High-end residential 7,339 2020
HS (D) 118739, No. PT 9103 property
Damansara Heights
Mukim of Kuala Lumpur

Minelink Freehold - 877.693 Sq. M High-end residential 7,181 2020
Damansara Heights

Damansara Heights

Damansara Heights
Annual Report 2020

Damansara Heights
57
Damansara Heights
[196001000393 (4060-V)]
Directors’ Report
The Directors hereby submit their report and the audited financial statements of the Group and of the
Company for the financial year ended 31 December 2020.

Principal activities
The principal activities of the Company are oil palm cultivation, investment holding and the operation of a
hotel.
The principal activities of the subsidiaries are set out in Note 17 to the financial statements.

Results

Group Company
RM RM
Profit for the financial year attributable to:

Owners of the Company 13,673,659 7,745,366
Annual Report 2020
Non-controlling interests 8,830,652 -

22,504,311 7,745,366
58
Reserves and provisions
There were no material transfers to or from reserves and provisions during the financial year except as
disclosed in the financial statements.

Dividends
Since the end of the previous financial year, the Company declared single-tier interim dividend of 1.5 sen per
ordinary share totalling RM2,948,160 in respect of the financial year ended 31 December 2020 and paid on
12 June 2020.
On 7 April 2021, the Directors approved an single-tier interim dividend of 2.0 sen per ordinary share in
respect of the next financial year ending 31 December 2021 on 196,543,970 ordinary shares, amounting to
a dividend payable of RM3,930,879 payable on 21 May 2021. Furthermore, the Directors also approved a
one-off payment of an additional special dividend of 2.0 sen per ordinary share for the financial year ending
31 December 2021.
The rationale for the payment of a special dividend was:
1. To reward our loyal shareholders for keeping faith in MHC Plantations Bhd despite the uncertain economic
situation; and
2. To hopefully help in mitigating any difficulties our shareholders might currently be facing as a result of the
economic turmoil caused by COVID-19.
The financial statements for the current financial year do not reflect this proposed dividend. Such dividend
will be accounted for in shareholders’ equity as an appropriation of retained profits in the next financial year
ending 31 December 2021.
[196001000393 (4060-V)]
Directors’ Report (cont’d)
Directors
The Directors who have held office during the financial year and up to the date of this report are:

Dato’ Seri Mah King Seng*
Tan Sri Dr. Mah King Thian*
Chan Kam Leong
Wan Salmah Binti Wan Abdullah
Heng Beng Fatt
Mah Li-Na (Alternate Director to Dato’ Seri Mah King Seng)
Dr. Jordina Mah Siu Yi (Alternate Director to Tan Sri Dr. Mah King Thian)
* These Directors are also Directors of the subsidiaries of the Company.
Pursuant to Section 253 of the Companies Act, 2016 in Malaysia, the Directors of subsidiaries during the
financial year and up to the date of this report, who are not also the Directors of the Company, are as follows:
Choong Pak Wan

Datin Seri Ooi Ah Thin
Annual Report 2020

Datuk Chua Kim Yin
Datuk Palpanaban a/l Devarajoo (D.P. Naban)
Derrick Martin De Souza
Jack Tian Hock Tan
Koh Zheng Kai 59
Lee Chong Hoe
Mustapha Bin Mohamed
Ng Choo Beng
Soong Swee Koon
Lee Nyuk Choon @ Jamilah Ariffin
Andree Alexander Funk
Directors’ interests in shares
The holdings and deemed holdings in the ordinary shares of the Company and its related corporations (other
than wholly-owned subsidiaries) of those who were Directors at the end of the financial year, as recorded in
the Register of Directors’ Shareholding kept under Section 59 of the Companies Act, 2016 in Malaysia are as
follows:
Number of ordinary shares
At At
Name of Director 1.1.2020 Bought Sold 31.12.2020

The Company

Direct interest:

Dato’ Seri Mah King Seng 338,948 - - 338,948
Tan Sri Dr. Mah King Thian 93,248 - - 93,248
Chan Kam Leong 154,800 80,000 - 234,800
Mah Li-Na 1,000 - - 1,000
[196001000393 (4060-V)]
Directors’ interests in shares (cont’d)
Number of ordinary shares

At At
Name of Director 1.1.2020 Bought Sold 31.12.2020

The Company

Deemed interest

Dato’ Seri Mah King Seng 90,189,024 - - 90,189,024
Tan Sri Dr. Mah King Thian 90,188,024 - - 90,188,024
Chan Kam Leong # 708,294 - - 708,294
# Interest by virtue of shares held by spouse.
Directors’ interests in shares

Annual Report 2020
By virtue of their interests in the Company, Dato’ Seri Mah King Seng and Tan Sri Dr. Mah King Thian are
deemed to have interests in shares in its related corporations during the financial year to the extent of the
Company’s interest in accordance with Section 8 of the Companies Act, 2016.
The other Directors who held office at the end of the financial year did not have any interest in shares in the
60
Company and its subsidiary companies.
Directors’ benefits
Since the end of the previous financial year, no Director of the Company has received nor become entitled
to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or
due and receivable by Directors as disclosed in the financial statements or the fixed salary of a full-time
employee of the Company or related corporations) by reason of a contract made by the Company or a related
corporation with the Director or with a firm of which the Director is a member, or with a company in which
the Director has a substantial financial interest, except as disclosed in Note 32 to the financial statements.
There were no arrangements during and at the end of the financial year, which had the object of enabling the
Directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of the
Company or any other body corporate.
Directors’ remuneration
The remuneration paid to or receivable by the Directors of the Group and Company during the financial year
is amounted to RM5,437,252 and RM479,600 respectively.
[196001000393 (4060-V)]
Indemnity and insurance for Directors, officers and auditors
During the financial year, the Company has in force a Directors’ and officers’ liability insurance under which the
Directors are indemnified up to a limit of RM2.5 million in respect of all costs, charges, expenses or liabilities
which they may incur in or about the execution of their duties to the Group or as a result of duties performed
by the Directors on behalf of the Group. Such indemnity remain in force as at the end of the financial year.
The total insurance premium paid for directors and officers of the Group is RM4,725.
There was no indemnity given to or liability insurance effected for the auditors of the Group and of the
Company during the financial year.
Subsidiaries
The details of the Company’s subsidiaries are disclosed in Note 17 to the financial statements.
Issues of shares and debentures
Annual Report 2020

The Company did not issue any new shares or debentures during the financial year.
Options granted over unissued shares

61
No options were granted to any person to take up unissued shares of the Company during the financial year.
Other statutory information

Before the financial statements of the Group and of the Company were made out, the Directors took
reasonable steps to ascertain that:

(i) all known bad debts had been written off and adequate allowance had been made for doubtful debts;
and

(ii) all current assets have been stated at the lower of cost and net realisable value.
At the date of this report, the Directors are not aware of any circumstances:

(i) which would render it necessary to write off any bad debts, or the amount of the allowance for doubtful
debts in the financial statements of the Group and of the Company inadequate to any substantial
extent; or

(ii) which would render the value attributed to the current assets in the financial statements of the Group
and of the Company misleading; or
(iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of
the Group and of the Company misleading or inappropriate; or

(iv) not otherwise dealt with in this report or the financial statements, which would render any amount
stated in the financial statements of the Group and of the Company misleading.
[196001000393 (4060-V)]
Other statutory information (cont’d)

As at the date of this report, there does not exist:

(i) any charge on the assets of the Group and of the Company that has arisen since the end of the financial
year which secures the liabilities of any other person; or

(ii) any contingent liability in respect of the Group and of the Company that has arisen since the end of the
financial year.
No contingent liability or other liability of the Group and of the Company has become enforceable, or is likely
to become enforceable within the period of twelve (12) months after the end of the financial year which, in
the opinion of the Directors, will or may substantially affect the ability of the Group and of the Company to
meet their obligations as and when they fall due.
In the opinion of the Directors, the financial performance of the Group and of the Company for the financial
year ended 31 December 2020 have not been substantially affected by any item, transaction or event of a
material and unusual nature nor has any such item, transaction or event occurred in the interval between the
end of the financial year and the date of this report.
Annual Report 2020
Significant and subsequent events
62 Details of significant and subsequent events are disclosed in Note 38 to the financial statements.
Auditors

The auditors, PKF, have indicated their willingness to continue in office.
During the financial year, the total amount of fees paid to or receivable by the auditors as remuneration
for their services as auditors of the Group and the Company are amounted to RM382,342 and RM55,000
respectively.
Signed on behalf of the Board

in accordance with a resolution of the Directors,

Tan Sri Dr. Mah King Thian Dato’ Seri Mah King Seng
Director Director
Dated 20 April 2021

[196001000393 (4060-V)]
Statement by Directors
Pursuant to Section 251(2) of the Companies Act 2016
In the opinion of the Directors, the accompanying financial statements set out on pages 71 to 162 are drawn
up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards
and the requirements of the Companies Act, 2016 in Malaysia so as to give a true and fair view of the financial
positions of the Group and of the Company as at 31 December 2020 and of their financial performances and
cash flows for the financial year ended on that date.
Signed on behalf of the Board in accordance with a resolution of the Directors,

Tan Sri Dr. Mah King Thian Dato’ Seri Mah King Seng
Director Director

Dated 20 April 2021
Annual Report 2020

Statutory Declaration
Pursuant to Section 251(1)(b) of the Companies Act 2016 63
I, CHAN KIM MENG, being the Officer primarily responsible for the financial management of MHC PLANTATIONS
BHD., do solemnly and sincerely declare that to the best of my knowledge and belief, the accompanying
financial statements set out on pages 71 to 162 are in my opinion correct, and I make this solemn declaration
conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act,
1960 in Malaysia.
Subscribed and solemnly declared by )

the abovenamed CHAN KIM MENG )
at Ipoh in the State of Perak )
Darul Ridzuan on 20 April 2021 )

CHAN KIM MENG
CA No. 20736
Before me,
Kong Wai Ngee (A213)

Pesuruhjaya Sumpah
COMMISSIONER FOR OATHS
[196001000393 (4060-V)]
Independent Auditors’ Report

to the members of MHC Plantations Bhd.
(Incorporated in Malaysia)
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the financial statements of MHC PLANTATIONS BHD., which comprise the statements of
financial position as at 31 December 2020 of the Group and of the Company, and the statements of profit or
loss and other comprehensive income, statements of changes in equity and statements of cash flows of the
Group and of the Company for the financial year then ended, and notes to the financial statements, including
a summary of significant accounting policies, as set out on pages 71 to 162.
In our opinion, the accompanying financial statements give a true and fair view of the financial positions
of the Group and of the Company as at 31 December 2020, and of their financial performances and their
cash flows for the financial year then ended in accordance with Malaysian Financial Reporting Standards,
International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia.
Basis for Opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International
Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’
Annual Report 2020
Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence and Other Ethical Responsibilities

64
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional
Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities
in accordance with the By-Laws and the IESBA Code.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial statements of the Group and of the Company for the current financial year. These matters
were addressed in the context of our audit of the financial statements of the Group and of the Company as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our
report.
[196001000393 (4060-V)]

(Incorporated in Malaysia) (cont’d)
Key Audit Matters (cont’d)
Area of focus How our audit addressed the key audit matter
Impairment testing of property, plant and

equipment
As highlighted in Note 15 to the financial statements, Our audit procedures included, among others:
the carrying value of property, plant and equipment
of the Group was RM507 million as at 31 December • obtaining the valuation reports prepared by the
2020. independent valuers engaged by the Group;
The market capitalisation of the Group which • reviewing these reports for appropriateness of
amounted to RM156,252,456 as of 31 December the methodology used and the reasonableness
2020 is lower than the net tangible assets of the of the assumptions used; and
Group of RM460,566,530, gives indication that the
carrying amounts of property, plant and equipment • assessing the competency, capabilities and
of the subsidiaries of the Group may potentially be objectivity of these independent valuers
higher than their recoverable amounts and therefore engaged by the Group.
Annual Report 2020

a formal estimate of their recoverable amounts may
be required for impairment testing.
In carrying out the impairment testing of the property,

plant and equipment, the Group considered whether 65
the market capitalisation to book value shortfall can
be reasonably related to specific subsidiaries or cash
generating units within the Group. The Group has
identified a few loss making subsidiaries exhibiting
indicators of impairment and accordingly performed
impairment testing on the property, plant and
equipment of these subsidiaries.
The Group has engaged independent valuers to

determine the recoverable amounts of property,
plant and equipment of the subsidiaries that are
exhibiting impairment indicators. These independent
valuers use industry/market accepted valuation
methodology and approaches to determine
the fair value of the underlying asset. Due to
the measurement of fair value being inherently
judgemental and the carrying value of these assets
being material to the Group, we have considered
this to be a key audit matter.
[196001000393 (4060-V)]

Impairment testing of goodwill
the carrying value of goodwill of the Group was
RM43 million as at 31 December 2020. FVLCD
In accordance with paragraph 10 of MFRS 136 • obtaining the valuation reports prepared by the
Impairment of Assets, goodwill is required to be independent valuers engaged by the Group;
tested for impairment annually by comparing its
carrying amount with its recoverable amount, • reviewing these reports for appropriateness of
irrespective of whether there is any indication that it the methodology used and the reasonableness
may be impaired. of the assumptions used; and
The Group estimated the recoverable amounts • assessing the competency, capabilities and
of the cash generating units (“CGUs”) to which objectivity of these independent valuers
Annual Report 2020
goodwill is allocated based on either fair value less engaged by the Group.
costs of disposal (“FVLCD”) or value in use (“VIU”).
For FVLCD, the Group engaged independent valuers VIU
to determine the recoverable amount of certain
66 significant property, plant and equipment relating to • assessing whether the assumptions on which the
the CGUs that are exhibiting impairment indicators. cash flow projections are based are consistent
These independent valuers use industry/market with past actual outcomes, in particular the
accepted valuation methodology and approaches to assumptions about estimated future sales
determine the fair value of the underlying asset. Due volumes, prices, operating costs, terminal value
to the measurement of fair value being inherently and possible variations in the timing of those
judgemental and the carrying value of these assets future cash flows;
being material to the Group, we have considered
this to be a key audit matter. • assessing the discount rate used to determine
the present value of the cash flows;
Estimating the VIU involves estimating the future
cash inflows and outflows that will be generated by • testing the mathematical accuracy of the
the CGUs and discounting them at an appropriate impairment assessment; and
rate. Significant judgements are required in
determining the assumptions to be used to estimate • performing stress test and sensitivity analysis
the VIU of the CGUs as these assumptions are around the key inputs that are expected to be
affected by expected future demand and economic most sensitive to the recoverable amount.
conditions, which include estimates of future sales
volumes, prices, operating costs, terminal value and
the discount rate to use.
[196001000393 (4060-V)]

Classification between property, plant and

equipment or IC Int. 12 Service Concession
Arrangement (“IC 12”) for biomass and biogas
power plants
during the current financial year, the Group
retrospectively restated its recognition of the biomass • obtaining the Group’s reassessment of the
and biogas power plants under the subsidiaries, REPPA and evaluating the appropriateness
Cash Horse (M) Sdn. Bhd. (“CHSB”) and Mistral of their consideration of relevant terms and
Engineering Sdn. Bhd. (“MESB”) respectively from conditions of the REPPA for determining if the
IC 12 under financial assets to plant and equipment grantor has any control of the power plants
under MFRS 116 Property, Plant and Equipment after the end of the REPPA and agreed with
(“MFRS 116”). This retrospective restatement their conclusion that the grantor has no right or
resulted in an adjustment as at 31 December 2019 option to purchase the power plants at the end
which, in aggregate, increased the carrying amount of the REPPA;
of property, plant and equipment by RM114 million
Annual Report 2020

and reduced the receivables by RM144 million with • evaluating the commercial rationale of the
the resulting differences debited to retained profits, Group’s assessment of its capability to operate
net of tax effects. the power plants for a remaining nine (9) years
after the end of the REPPA;
In affecting this adjustment, the Group reassessed 67
whether it has control over significant residual values • evaluating and challenging where necessary the
of the power plants after the end of the Renewable key inputs and assumptions used by the Group
Energy Power Purchase Agreement (“REPPA”) term in the forecasted profitability and consulted with
in accordance with the relevant provisions of IC 12. a power plant consultant on critical technical
and scientific aspects of the power plants and
Firstly, the Group reassessed the facts surrounding obtaining the necessary corroborative evidence;
the control over the power plants after the end of
the REPPA term by scrutinising the relevant terms • evaluating the reasonableness of the
and conditions of the said agreement. quantitative threshold determined by the Group
in concluding for significant residual value;
Based on this reassessment, the Group concluded
that the grantor has no right or option to purchase • performing sensitivity analysis by using a range
the power plants at the end of the REPPA and of possible variations on the key inputs and
therefore, ceases to have control over these power parameters used in the forecasted profitability
plants thereon. The Group could then unconditionally and determining if there is sufficient headroom;
determine the manner of recovering their residual and
values, i.e. from disposal or continued usage.
• evaluating the Group’s assessment of the terms
Secondly, the Group forecasted the profitability from and conditions of the REPPA and availability
continued use of the power plants for nine (9) years of objective measurement for the recognition
after the end of the REPPA to determine whether criteria for property, plant and equipment of
it can benefit from significant residual value from future benefits and reliable measurement.
its control over the power plants after the end of
the REPPA. Key inputs and assumptions used by
the Group in developing the forecast include value
from internal usage of electricity produced, value
from sale of by-products, useful life of the power
plants, discount rate, overhaul and repair costs.
The Group developed a quantitative threshold for
the forecasted profitability to determine if there is
significant residual value after the REPPA.
[196001000393 (4060-V)]

Classification between property, plant and

equipment or IC Int. 12 Service Concession
Arrangement (“IC 12”) for biomass and biogas
power plants (cont’d)
On completion of the above reassessment exercise,

the Group concluded that the power plants do
not meet the criteria to be recognised under IC 12
and should perform assessment for recognition for
MFRS 116 under property, plant and equipment
based on its control over their future economic
benefits and reliable measurement. Based on the
Group’s assessment of the terms and conditions of
the REPPA, it concluded there is future economic
benefits as the grantor is contracted to purchase a
significant minimum electricity supply from the Group
over the REPPA term and is subject to significant
Annual Report 2020
compensation if failing to do so. The power plants

are also assessed to be reliably measured based on
their contracted construction costs.
68
Deferred tax assets
Deferred tax asset of the Group with a carrying Our audit procedures included, among others:
amount of RM6.8 million as at 31 December 2020 is
associated with the biogas power plant operation of • obtaining management forecast on future
Mistral Engineering Sdn Bhd (“MESB”). Management taxable profits and held discussions with
has used significant judgement and estimates in management on their judgements and
determining the sufficiency of future taxable profits assumptions in arriving at the forecast;
to utilise the deferred tax asset. Therefore, we had
determined the realisability of the deferred tax asset • examining the inputs used in the forecast such
to be a key audit matter. as price and quantity of electricity sale and
evaluating its reasonableness based on the
As the generation of electricity and resulting historical normalised level of crude palm oil and
profitability of the biogas power plant of MESB kernel oil processing, trend of electricity tariff
is dependent on sufficiency of liquid waste from rates, impact of latest developments affecting
processing of crude palm oil and kernel oil by the the palm oil industry and its ability to cope and
palm oil mill, management considered various others;
factors to forecast future level of crude palm oil and
kernel oil processing to support the biogas power • performing sensitivity analysis on possible
plant. These factors include sufficiency of oil palm variations to the values of inputs used by
crops, market demand of crude palm oil and kernel management in their forecast and challenging
oil and anticipated future prices of the commodities. where necessary on certain judgements used in
Based on historical results of normalised level of arriving at these values; and
crude palm oil and kernel oil processed, current
market trends and susceptibility of the industry to • considering if management had disregarded
global developments, management has forecasted any contradictory evidence in forecasting the
sufficient future taxable profits to utilise the deferred future taxable profits.
tax asset.
[196001000393 (4060-V)]

Information Other than the Financial Statements and Auditors’ Report Thereon
The Directors of the Company are responsible for the other information. The other information comprises the
information included in the annual report, but does not include the financial statements of the Group and of
the Company and our auditors’ report thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company, our responsibility
is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Statements
The Directors of the Company are responsible for the preparation of financial statements of the Group and
of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards,
International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia.
Annual Report 2020

The Directors are also responsible for such internal control as the Directors determine is necessary to enable
the preparation of financial statements of the Group and of the Company that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements of the Group and of the Company, the Directors are responsible for 69
assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless the Directors either
intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to
do so.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and
of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and
International Standards on Auditing will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards
on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit.
We also:
(i) Identify and assess the risks of material misstatement of the financial statements of the Group and of
the Company, whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
(ii) Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s and the Company’s internal control.
[196001000393 (4060-V)]

Auditors’ Responsibilities for the Audit of the Financial Statements (cont’d)
(iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors.
(iv) Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s or the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditors’ report to the related disclosures in the financial statements of the Group and of the
Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditors’ report. However, future events or
conditions may cause the Group or the Company to cease to continue as a going concern.
(v) Evaluate the overall presentation, structure and content of the financial statements of the Group and of
the Company, including the disclosures, and whether the financial statements of the Group and of the
Company represent the underlying transactions and events in a manner that achieves fair presentation.
(vi) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial statements of the Group. We
are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
Annual Report 2020
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
70
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the financial statements of the Group and of the Company for the current financial year and
are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that
a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 2016 in Malaysia, we report that the subsidiary
of which we have not acted as auditors, is disclosed in Note 17 to the financial statements.
Other Matter
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the
Companies Act, 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other
person for the content of this report. The financial statements of the Group and of the Company as at 31
December 2019, were audited by another auditor whose report dated 3 June 2020, expressed an unmodified
opinion.
PKF CHAU MAN KIT

AF 0911 02525/03/2022 J
Chartered Accountants Chartered Accountant
Kota Kinabalu
Dated 20 April 2021

[196001000393 (4060-V)]
Statements of Profit or Loss and Other Comprehensive Income

for the financial year ended 31 December 2020
Group Company
Restated
2020 2019 2020 2019
Note RM RM RM RM
Revenue 5 354,738,534 308,002,807 4,603,062 3,912,785

Cost of sales (306,312,714) (281,612,176) (3,132,554) (3,499,582)

Gross profit 48,425,820 26,390,631 1,470,508 413,203
Other operating income 6 4,021,681 4,707,259 425,199 386,318
Administrative expenses (12,886,547) (13,062,723) (1,764,440) (2,391,422)
Other operating expenses 7 (3,583,326) (1,596,757) (9,779) -
Profit/(Loss) from operations 10 35,977,628 16,438,410 121,488 (1,591,901)

Finance costs 11 (4,809,311) (7,047,237) (646,774) (786,995)
Income from investments 12 30,385 8,963 7,693,220 6,014,945
Profit before taxation 31,198,702 9,400,136 7,167,934 3,636,049

Income tax expense 13 (8,694,391) (5,724,998) 577,432 9,817
Profit for the financial year 22,504,311 3,675,138 7,745,366 3,645,866
Annual Report 2020

Other comprehensive income
Item that will not be reclassified
subsequently to profit or loss:

Net fair value (loss)/gain on
financial assets at fair value 71
through other comprehensive
income (“FVOCI”) 18 (56,279) 6,772 (30,640) 10,648
Exchange differences on
translation of a foreign
operation 280,254 (86,598) - -
Other comprehensive income/

(loss) for the financial year,
net of tax 223,975 (79,826) (30,640) 10,648

Total comprehensive income
for the financial year 22,728,286 3,593,312 7,714,726 3,656,514

Profit attributable to:
Owners of the Company 13,673,659 2,500,648 7,745,366 3,645,866
Non-controlling interests 8,830,652 1,174,490 - -

22,504,311 3,675,138 7,745,366 3,645,866

attributable to:
Owners of the Company 13,684,977 2,453,114 7,714,726 3,656,514
Non-controlling interests 9,043,309 1,142,198 - -
22,728,286 3,595,312 7,714,726 3,656,514
Earnings per share

attributable to owners of the
Company (sen per share)
Basic 14 6.96 1.27

Net dividend per share 1.50 1.50

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
[196001000393 (4060-V)]
Statements of Financial Position

as at 31 December 2020
Group Company
Restated Restated
31.12.2020 31.12.2019 1.1.2019 31.12.2020 31.12.2019
ASSETS Note RM RM RM RM RM
Non-current assets
Property, plant and equipment 15 507,399,518 518,049,746 516,347,492 12,277,309 12,445,606
Investment properties 16 45,263,826 49,923,826 49,250,000 1,250,000 1,250,000
Investments in subsidiary
companies 17 - - - 209,110,320 209,070,973
Investments in securities 18 338,426 394,505 387,730 204,917 235,557
Land use rights - - 1,910,383 - -
Deferred tax assets 19 6,777,164 7,559,794 5,767,254 - -
Goodwill on consolidation 20 43,867,118 43,867,118 43,867,118 - -

603,646,052 619,794,989 617,529,977 222,842,546 223,002,136

Current assets
Inventories 21 18,533,387 25,355,182 30,691,009 210,336 186,371
Biological assets 22 3,264,016 2,737,438 1,386,106 311,886 213,058
Trade and other receivables 23 23,025,573 20,124,563 16,552,391 3,260,540 1,234,291
Tax recoverable 847,789 1,503,106 3,391,648 3,145 3,145
Short-term investments 24 17,573,020 16,319,942 14,421,004 13,453 12,174
Annual Report 2020
Cash and bank balances 25 32,606,598 20,764,536 23,392,160 959,148 1,217,889

95,850,383 86,804,767 89,834,318 4,758,508 2,866,928
TOTAL ASSETS 699,496,435 706,599,756 707,364,295 227,601,054 225,869,064

72
EQUITY AND LIABILITIES

Equity attributable to owners
of the Company
Share capital 26 196,543,970 196,543,970 196,543,970 196,543,970 196,543,970
Reserve 27 54,322,154 43,360,858 44,021,803 16,651,923 11,885,357
250,866,124 239,904,828 240,565,773 213,195,893 208,429,327

Non-controlling interests 253,567,524 249,235,143 251,650,796 - -
Total equity 504,433,648 489,139,971 492,216,569 213,195,893 208,429,327

Non-current liabilities
Hire purchase payables - - 2,534,373 - -
Loans and borrowings 28 46,866,635 55,163,121 61,513,129 - -
Deferred tax liabilities 19 48,912,939 48,656,715 44,708,818 - 577,432
Lease rental payable - - 267,050 - -
Lease liabilities 29 3,876,457 3,688,674 - - 9,599

99,656,031 107,508,510 109,023,370 - 587,031
Current liabilities
Trade and other payables 30 26,322,193 31,799,478 29,445,694 1,795,562 1,729,065
Hire purchase payables - - 1,000,195 - -
Loans and borrowings 28 65,238,153 76,100,008 75,629,178 12,600,000 15,100,000
Lease liabilities 29 1,228,830 1,143,304 - 9,599 23,641
Taxation 2,617,580 908,485 49,289 - -

95,406,756 109,951,275 106,124,356 14,405,161 16,852,706
Total liabilities 195,062,787 217,459,785 215,147,726 14,405,161 17,439,737

TOTAL EQUITY AND LIABILITIES 699,496,435 706,599,756 707,364,295 227,601,054 225,869,064
Attributable to owners of the Company
Non - distributable Distributable
Foreign
Fair value currency Non-
Share Capital Other Revaluation adjustment translation Capital Retained controlling Total
capital reserve reserve reserve reserve reserve reserve profits Sub-total interests equity
Group Note RM RM RM RM RM RM RM RM RM RM RM

At 1 January 2019
- As previously reported 196,543,970 5,736,883 (32,099,847) 789,026 45,088 (289,423) 8,169 77,313,239 248,047,105 266,956,202 515,003,307
- Prior year adjustments 39 - - - - - - - (7,481,332) (7,481,332) (15,305,406) (22,786,738)

Statements of Changes in Equity

At 1 January 2019,

as restated 196,543,970 5,736,883 (32,099,847) 789,026 45,088 (289,423) 8,169 69,831,907 240,565,773 251,650,796 492,216,569
Profit for the financial
[196001000393 (4060-V)]
year - - - - - - - 2,500,648 2,500,648 1,174,490 3,675,138
Other comprehensive
loss - - - - 6,772 (54,306) - - (47,534) (32,292) (79,826)

Total comprehensive
income for the
financial year - - - - 6,772 (54,306) - 2,500,648 2,453,114 1,142,198 3,595,312
Effect of subsidiary
treasury share
transaction - - (165,899) - - - - - (165,899) (103,814) (269,713)

Transactions with
owners of the
Company

- Dividend on ordinary
shares 31 - - - - - - - (2,948,160) (2,948,160) - (2,948,160)
shares to non-
controlling interests - - - - - - - - - (3,454,037) (3,454,037)

Total transactions with
owners of the
Company - - - - - - - (2,948,160) (2,948,160) (3,454,037) (6,402,197)

At 31 December 2019
as restated 196,543,970 5,736,883 (32,265,746) 789,026 51,860 (343,729) 8,169 69,384,395 239,904,828 249,235,143 489,139,971
73
Annual Report 2020

74
Annual Report 2020

Non - distributable Distributable
Foreign
Fair value currency Non-
Share Capital Other Revaluation adjustment translation Capital Retained controlling Total
capital reserve reserve reserve reserve reserve reserve profits Sub-total interests equity
Group Note RM RM RM RM RM RM RM RM RM RM RM

At 1 January 2020,
as restated 196,543,970 5,736,883 (32,265,746) 789,026 51,860 (343,729) 8,169 69,384,395 239,904,828 249,235,143 489,139,971

Profit for the financial
year - - - - - - - 13,673,659 13,673,659 8,830,652 22,504,311
for the financial year ended 31 December 2020 (cont’d)

Other comprehensive
income - - - - (56,279) 67,597 - - 11,318 212,657 223,975
[196001000393 (4060-V)]
Total comprehensive

income for the
financial year - - - - (56,279) 67,597 - 13,673,659 13,684,977 9,043,309 22,728,286
Effect of subsidiary
treasury share
transaction - - (115,780) - - - - (49,795) (165,575) (670,434) (836,009)
Effect of acquisition
of non-controlling
interest - - - - - - - 390,054 390,054 (390,054) -

Transactions with
owners of the
Company

- Dividend on
ordinary shares 31 - - - - - - - (2,948,160) (2,948,160) - (2,948,160)
shares to non-
controlling interests - - - - - - - - - (3,650,440) (3,650,440)

Total transactions with
owners of the Company - - - - - - - (2,948,160) (2,948,160) (3,650,440) (6,598,600)

At 31 December 2020 196,543,970 5,736,883 (32,381,526) 789,026 (4,419) (276,132) 8,169 80,450,153 250,866,124 253,567,524 504,433,648

Non-distributable Distributable
Fair value
Share capital adjustment reserve Retained profits Total equity
Company Note RM RM RM RM
At 1 January 2019 196,543,970 (60,167) 11,237,170 207,720,973
Profit for the financial year - - 3,645,866 3,645,866

Other comprehensive income - 10,648 - 10,648


for the financial year - 10,648 3,645,866 3,656,514
[196001000393 (4060-V)]
Transaction with owners

of the Company
- Dividend on ordinary shares 31 - - (2,948,160) (2,948,160)

At 31 December 2019 196,543,970 (49,519) 11,934,876 208,429,327
Profit for the financial year - - 7,745,366 7,745,366

Other comprehensive loss - (30,640) - (30,640)

for the financial year - (30,640) 7,745,366 7,714,726
Transaction with owners
of the Company
- Dividend on ordinary shares 31 - - (2,948,160) (2,948,160)

At 31 December 2020 196,543,970 (80,159) 16,732,082 213,195,893
75
Annual Report 2020

[196001000393 (4060-V)]
Statements of Cash Flows

Group Company
Restated
2020 2019 2020 2019
RM RM RM RM

Cash flows from operating activities

Adjustments for:
Allowance for expected credit losses - 71,455 - -
Bad debts written off 269,363 119,053 - -
Deposit written off 39,000 - - -
Depreciation of property,
plant and equipment 29,980,615 29,499,354 759,571 765,365
Dividend income (30,385) (8,963) (7,693,220) (6,014,945)
Fair value gain on biological assets (526,578) (1,351,332) (98,828) (139,558)
(Gain)/Loss on disposal of property,
plant and equipment (20,998) (272,555) 4,000 (2,440)
Annual Report 2020
Interest expense 4,809,311 7,047,237 646,774 786,995

Interest income (621,501) (758,993) (60,623) (47,731)
Inventories written off 1,625,990 - - -
Loss on disposal of investment
76 properties 260,000 - - -
Property, plant and equipment
written off 205,083 64,882 5,779 -
Reversal of allowance for expected
credit losses (46,011) (161,738) - -
Unrealised gain on foreign exchange - (18,724) - -

Operating profit/(loss) before
working capital changes 67,142,591 43,629,812 731,387 (1,016,265)
Change in inventories 5,195,805 5,335,827 (23,965) (31,260)
Change in receivables (3,163,362) (2,856,346) (647) (176,894)
Change in payables (5,477,285) 1,624,852 66,497 64,093
Change in subsidiaries’ accounts - - (2,025,602) (264,372)

Cash from/(used in) operations 63,697,749 47,734,145 (1,252,330) (1,424,698)
Income tax paid (5,726,222) (821,904) - -
Income tax refunded 435,097 - - -
Interest paid (5,874,519) (7,228,269) (646,774) (786,995)
Interest received 621,501 758,993 60,623 47,731

Net cash from/(used in) operating
activities 53,153,606 40,442,965 (1,838,481) (2,163,962)

(forward)
[196001000393 (4060-V)]

Group Company
Restated
2020 2019 2020 2019
RM RM RM RM

Cash flows from investing activities
Acquisition of property, plant and
equipment* (17,227,857) (26,941,086) (607,053) (402,311)
Acquisition of investment property** - (673,826) - -
Acquisition of investment in securities (200) - - -
Dividend received 30,385 8,963 7,693,220 6,014,945
Increase in investment in a subsidiary - - (39,347) -
Net change in short-term
investment (1,253,078) (1,898,938) (1,279) 44,314
Placement of fixed deposits with
licensed banks (1,287,815) (105,795) (7,697) (16,352)
Proceeds from disposal of property,
plant and equipment 277,693 365,219 6,000 4,800
Proceeds from disposal of investment
Annual Report 2020

property 4,400,000 - - -

Net cash (used in)/from investing
activities (15,060,872) (29,245,463) 7,043,844 5,645,396
77
Cash flows from financing activities

Acquisition of subsidiary’s treasury
shares (836,009) (269,713) - -
Dividend paid to equity holders
of the Company (2,948,160) (2,948,160) (2,948,160) (2,948,160)
Dividend paid to non-controlling
interests (3,650,440) (3,454,037) - -
Drawdown of revolving credit 16,450,000 10,500,000 (2,500,000) -
Drawdown of term loan - 16,400,000 - -
Repayment of lease liabilities (1,225,791) (1,296,293) (23,641) (38,267)
Repayment of revolving credit (21,400,000) (10,300,000) - -
Repayment of term loan (14,208,341) (22,479,178) - -

Net cash used in financing
activities (27,818,741) (13,847,381) (5,471,801) (2,986,427)

Net increase/(decrease) in cash
and cash equivalents 10,273,993 (2,649,879) (266,438) 495,007
Effect of exchange rate fluctuations 280,254 (83,540) - -

Cash and cash equivalents at
beginning of financial year 17,431,705 20,165,124 821,847 326,840

Cash and cash equivalents at end
of financial year (Note 25) 27,985,952 17,431,705 555,409 821,847

(forward)
[196001000393 (4060-V)]

Non-cash transactions
* Acquisition of property, plant and equipment
During the financial year, the Group and the Company acquired property, plant and equipment inclusive
of interest capitalized of RM1,065,208 and RMNil (2019: RM181,032 and RMNil) with an aggregate
cost of RM19,792,165 and RM607,053 (2019: RM27,931,529 and RM402,311) of which RM1,499,100
and RMNil (2019: RM809,411 and RMNil) were acquired by means of hire purchase. Cash payments of
RM17,227,857 and RM607,053 (2019: RM26,941,086 and RM402,311) were made to acquire property,
plant and equipment.
** Acquisition of investment property
During the financial year, the Group acquired investment property with an aggregate cost of RMNil
(2019: RM673,826) by way of cash payments.
Reconciliation of liabilities arising from financing activities:
Group Cash Non-cash

Annual Report 2020
1 January flows changes 31 December

2020 RM RM RM RM
Loans and borrowings 131,263,129 (19,158,341) - 112,104,788

78 Lease liabilities 4,831,978 (1,225,791) 1,499,100 5,105,287
136,095,107 (20,384,132) 1,499,100 117,210,075
2019

Lease liabilities 5,318,860 (1,296,293) 809,411 4,831,978

142,461,167 (7,175,471) 809,411 136,095,107

Company Cash Non-cash

1 January flows changes 31 December
2020 RM RM RM RM


2019
Loans and borrowings 15,100,000 - - 15,100,000
[196001000393 (4060-V)]
Notes to the Financial Statements

1. General information
The Company is a public limited liability company that is incorporated and domiciled in Malaysia, and is
listed on the Main Market of Bursa Malaysia Securities Berhad. The principal activities of the Company
are oil palm cultivation, investment holding and the operation of a hotel. The principal activities of the
subsidiaries are set out in Note 17 to the financial statements.
The registered office and principal place of business of the Company are located at 55A, Medan Ipoh
1A, Medan Ipoh Bestari, 31400 Ipoh, Perak Darul Ridzuan and Kompleks Pejabat Behrang 2020, Jalan
Persekutuan 1, 35900 Tanjung Malim, Perak Darul Ridzuan respectively.
These financial statements were authorised for issue by the Directors in accordance with a resolution of
the Board of Directors dated
2. Basis of preparation
(a) Statement of compliance
Annual Report 2020

The financial statements of the Group and of the Company have been prepared in accordance
with the Malaysian Financial Reporting Standards (“MFRSs”) issued by Malaysian Accounting
Standards Board (“MASB”), International Financial Reporting Standards (“IFRSs”) and the
requirements of the Companies Act, 2016 in Malaysia.
79
(b) Basis of measurement
The significant accounting policies adopted by the Group and the Company are consistent with
those adopted in previous financial year unless otherwise stated.
The financial statements of the Group and of the Company are prepared under the historical cost
convention, unless otherwise indicated in the summary of significant accounting policies.
(c) Functional and presentation currency
The financial statements are prepared in Ringgit Malaysia (RM) which is the Company’s functional
currency. Each entity in the Group determines its own company’s functional currency and items
included in the financial statements of each entity are measured using that functional currency.
(d) Adoption of new and revised MFRS
During the financial year, the Group and the Company have adopted the following new standards
and amendments to standards issued by the MASB that are mandatory for current financial year:
• Amendments to MFRS 3: Definition of a Business

• Amendments to MFRS 9, MFRS 139 and MFRS 7: Interest Rate Benchmark Reform
• Amendments to MFRS 101 and MFRS 108: Definition of Material
• Amendments to MFRS 101: Classification of Liabilities as Current or Non-current – Deferral
of Effective Date
The adoption of the amendments to standards did not have any significant impact on the
financial statements of the Group and of the Company.
[196001000393 (4060-V)]

2. Basis of preparation (cont’d)
(e) Standards issued but not yet effective
Certain new accounting standards and interpretations have been issued but not yet effective for
31 December 2020 reporting periods and have not been early adopted by the Group and the
Company. These standards are not expected to have a material impact on the Group and the
Company in the current or future reporting periods.
3. Significant accounting judgements and estimates
The preparation of the Group’s and the Company’s financial statements requires management to make
judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets
and liabilities, and the disclosure of contingent liabilities at the reporting date. However, uncertainty
about these assumptions and estimates could result in outcomes that could require a material adjustment
to the carrying amount of the asset or liability affected in the future periods.
(a) Judgements made in applying accounting policies

Annual Report 2020
In the process of applying the Group’s and the Company’s accounting policies, management
has made the following judgement, apart from those involving estimations, which could have a
significant effect on the amounts recognised in the consolidated financial statements.
80
(i) Operating segments
The segments disclosed in Note 37 to the financial statements have been determined by
distinguishing the business activities from which the Group earns revenues and incurs
expenses. The economic characteristics of the operating segments have been reviewed
and operating segments have been grouped based on the reporting to the chief operating
decision maker.
(ii) Classification of biomass and biogas power plants under property, plant and
equipment
The retrospective adjustment highlighted in Note 39 restating the biomass and biogas
power plants from financial asset to property, plant and equipment involved significant
judgement by the Group to determine they have control over significant residual value
of the power plants at the expiry of the existing power purchase agreements with the
grantor.
In making this judgements the Group assessed the relevant terms and conditions of the
agreements and concluded the grantor has no right or option to acquire the power plants
when the expiry of the agreements take effect.
Estimation and assumptions considered by the Group in determining significant residual

value include commercial feasibility on internal use of the power plants, value of sale of
by-products, useful life, discount rate and future overhaul costs.

[196001000393 (4060-V)]

3. Significant accounting judgements and estimates (cont’d)
(b) Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at
the reporting date that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below:
(i) Depreciation of property, plant and equipment
The estimates for the residual values, useful lives and related depreciation charges for
the property, plant and equipment are based on commercial factors which could change
significantly as a result of technical innovations and competitors’ actions in response to the
market conditions.
The Group and the Company anticipate that the residual values of their property, plant
and equipment will be insignificant. As a result, residual values are not being taken into
consideration for the computation of the depreciable amount. The management estimates
the useful lives of the property, plant and equipment to be within five (5) to ninety-nine
Annual Report 2020

(99) years. Changes in the expected level of usage and technological development could
impact the economic useful lives and the residual values of these assets, therefore future
depreciation charges could be revised.
(ii) Income taxes 81
There are certain transactions and computations for which the ultimate tax determination
may be different from the initial estimate. The Group and the Company recognise tax
liabilities based on its understanding of the prevailing tax laws and estimates of whether
such taxes will be due in the ordinary course of business. Where the final outcome of these
matters is different from the amounts that were initially recognised, such difference will
impact the income tax and deferred tax provisions in the year in which such determination
is made.
(iii) Impairment of property, plant and equipment
The Group and the Company review their carrying amounts of property, plant and
equipment at each reporting date to assess whether there is any indication of impairment.
If any such indication exists, the Group and the Company make an estimate of the asset’s
recoverable amount. An asset’s recoverable amount is the higher of an asset’s fair value
less costs of disposal (“FVLCD”) and its value in use (“VIU”).
The Group and the Company estimate the recoverable amounts of the cash-generating
unit (“CGU”) based on FVLCD and VIU. Estimating the VIU involves estimating the future
cash inflows and outflows that will be generated by the CGUs and discounting them at an
appropriate rate. In estimating the recoverable amounts of FVLCD, the Directors relied on
independent professional valuers.
[196001000393 (4060-V)]

(b) Key sources of estimation uncertainty (cont’d)
(iv) Impairment of goodwill
Goodwill is tested for impairment annually and at other times when such indicators exist.
Impairment exists when the carrying value of an asset or CGU exceeds its recoverable
amount, which is the higher of its FVLCD and its VIU. This requires an estimation of the
recoverable amounts of the CGUs to which goodwill is allocated.
Estimating a VIU amount requires management to make an estimate of the expected

future cash flows from the CGU and also to choose a suitable discount rate in order to
calculate the present value of those cash flows. Further details of the carrying value, key
assumptions applied in the impairment assessment of goodwill and sensitivity analysis to
changes in the assumptions are disclosed in Note 20 to the financial statements.
(v) Biological assets

Annual Report 2020
The Group and the Company carry their biological assets at fair value with changes in
fair value being recognised in profit or loss. The determination of the fair value of the
biological assets requires the use of estimates on the projected harvest quantities and
market price of fresh fruit bunches (“FFB”) as at the reporting date. The carrying amount
82 and key assumptions used to determine the fair value of the biological assets are further
disclosed in Note 22 to the financial statements.
(vi) Carrying value of investments in subsidiaries
Investments in subsidiaries are reviewed for impairment annually in accordance with its
accounting policy as disclosed in Note 4(n)(ii) to the financial statements, or whenever
events or changes in circumstances indicate that the carrying value may not be recoverable.
Significant judgment is required in the estimation of the present value of future cash flows
generated by the subsidiaries, which involves uncertainties and are significantly affected by
assumptions and judgments made regarding estimates of future cash flows and discount
rates. Changes in assumptions could significantly affect the carrying value of investments
in subsidiaries.
(vii) Deferred tax assets and liabilities
Deferred tax implications arising from the changes in corporate income tax rates are
measured with reference to the estimated realisation and settlement of temporary
differences in the future periods in which the tax rates are expected to apply, based on
the tax rates enacted or substantively enacted at the reporting date. While management’s
estimates on the realisation and settlement of temporary differences are based on the
available information at the reporting date, changes in business strategy, future operating
performance and other factors could potentially impact on the actual timing and amount
of temporary differences realised and settled. Any difference between the actual amount
and the estimated amount would be recognised in the statement of profit or loss and
other comprehensive income in the period in which actual realisation and settlement
occurs.
[196001000393 (4060-V)]

(b) Key sources of estimation uncertainty (cont’d)
(vii) Deferred tax assets and liabilities (cont’d)
Deferred tax assets are recognised for all deductible temporary differences, unutilised tax
credits and unutilised tax losses to the extent that it is probable that taxable profit will be
available against which these items can be utilised. Significant management judgement is
required to determine the amount of deferred tax assets that can be recognised, based
upon the likely timing and level of future taxable profits together with future tax planning
strategies. The carrying amount of recognised and unrecognised deferred tax assets are
disclosed in Note 19 to the financial statements.
Assumptions about generation of future taxable profits would depend on the achievability
of projected profits and this requires judgement of the management. These assumptions
and judgement are subject to risks and uncertainty, hence there is possibility that changes
in circumstances will alter expectations, which may impact on the amount of deferred tax
assets recognised.
Annual Report 2020

(viii) Impairment of financial assets
The loss allowances for financial assets are based on assumptions about risk of default
and expected loss rates. The Group uses judgement in making these assumptions and 83
selecting the inputs to the impairment calculation, based on the Group’s past history,
existing market conditions as well as forward looking estimates at the end of each
reporting period.
(ix) Leases
The measurement of the right-of-use asset and lease liability for leases where the Group
and the Company are lessee requires the use of judgements and assumptions, such as
lease term and incremental borrowing rate. In determining the lease term, the Group
and the Company consider all facts and circumstances that create an economic incentive
to exercise an extension option. Extension options are only included in the lease term
if the lease is reasonably certain to be extended. The incremental borrowing rate is the
interest rate that the Group and the Company would have to pay to borrow over a similar
term, the funds necessary to obtain an asset of a similar value to the right-of-use asset
in a similar economic environment. Therefore, the incremental borrowing rate requires
estimation, particularly when no observable rates are available or when they need to be
adjusted to reflect the terms and conditions of the lease. The Group and the Company
estimate the incremental borrowing rate using observable inputs when available and is
required to make certain entity-specific estimates.
[196001000393 (4060-V)]

4. Significant accounting policies
(a) Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and
its subsidiaries as at the reporting date. The financial statements of the subsidiaries used in the
preparation of the consolidated financial statements are prepared for the same reporting date
as the Company.
(i) Subsidiaries
Subsidiaries are entities controlled by the Company. The financial statements of subsidiaries
are included in the consolidated financial statements from the date that control commences
until the date that control ceases.
Control exists when the Company is exposed, or has rights, to variable returns from its
involvement with the entity and has the ability to affect those returns through its power
over the entity.
Annual Report 2020
The Company considers it has de facto power over an investee when, despite not having
the majority of voting rights, it has the current ability to direct the activities of the investee
that significantly affect the investee’s return. Potential voting rights are considered when
assessing control only when such rights are substantive.
84
Investments in subsidiaries are measured in the Company’s statement of financial position
at cost less any impairment losses, unless the investment is classified as held for sale or
distribution. The cost of investments includes transaction costs.
(ii) Business combinations
Business combinations are accounted for using the acquisition method from the acquisition
date, which is the date on which control is transferred to the Group.
For new acquisitions, the Group measures the cost of goodwill at the acquisition date as:
• the fair value of the consideration transferred; plus

• the recognised amount of any non-controlling interests in the acquiree; plus
• if the business combination is achieved in stages, the fair value of the existing equity
interest in the acquiree; less
• the net recognised amount (generally fair value) of the identifiable assets acquired
and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in profit
or loss.
For each business combination, the Group elects whether it measures the non-controlling
interests in the acquiree either at fair value or at the proportionate share of the acquiree’s
identifiable net assets at the acquisition date.
Transaction costs, other than those associated with the issue of debt or equity securities,
that the Group incurs in connection with a business combination are expensed as incurred.
[196001000393 (4060-V)]

4. Significant accounting policies (cont’d)
(a) Basis of consolidation (cont’d)
(iii) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising
from intra-group transactions, are eliminated in preparing the consolidated financial
statements.
Unrealised losses are eliminated in the same way as unrealised gains, but only to the
extent that there is no evidence of impairment.
(iv) Loss of control
Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities
of the former subsidiary, any non-controlling interests and the other components of equity
related to the former subsidiary from the consolidated statement of financial position. Any
surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group
Annual Report 2020

retains any interest in the former subsidiary, then such interest is measured at fair value
at the date that control is lost. Subsequently, it is accounted for as an equity accounted
investee or as a financial asset depending on the level of influence retained.
(v) Non-controlling interests 85
Non-controlling interests at the end of the reporting period, being the equity in a subsidiary
not attributable directly or indirectly to the equity holders of the Company, are presented
in the consolidated statement of financial position and statement of changes in equity
within equity, separately from equity attributable to the owners of the Company. Non-
controlling interests in the results of the Group is presented in the consolidated statement
of profit or loss and other comprehensive income as an allocation of the profit and loss
and the comprehensive income for the year between non-controlling interests and the
owners of the Company.
Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-
controlling interests even if doing so caused the non-controlling interests to have a deficit
balance.

(vi) Transactions with non-controlling interests
Transactions with non-controlling interests are accounted for using the entity concept
method, whereby, transactions with non-controlling interests are accounted for as
transactions with owners.
On acquisition of non-controlling interests, the difference between the consideration and

the Group’ share of the net assets acquired is recognised directly in equity. Gain or loss on
disposal to non-controlling interests is recognised directly in equity.
[196001000393 (4060-V)]

(b) Foreign currencies
(i) Functional and presentation currencies
The Group’s consolidated financial statements are presented in Ringgit Malaysia (RM),
which is also the Company’s functional currency. Each entity in the Group determines its
own company’s functional currency and items included in the financial statements of each
entity are measured using that functional currency.
(ii) Foreign currency transactions
Transactions in foreign currencies are measured in the respective functional currencies

of the Group and the Company and are recorded on initial recognition in the functional
currencies at exchange rates approximating those ruling at the transaction dates.
Monetary assets and liabilities denominated in foreign currencies are translated at the rate
of exchange ruling at the reporting date. Non-monetary items denominated in foreign
Annual Report 2020
currencies that are measured at historical cost are translated using the exchange rates
as at the dates of the initial transactions. Non-monetary items denominated in foreign
currencies measured at fair value are translated using the exchange rates at the date
when the fair value was determined.
86
Exchange differences arising on the settlement of monetary items or on translating
monetary items at the reporting date are recognised in profit or loss except for exchange
differences arising on monetary items that form part of the Group’s net investment in
foreign operations, which are recognised initially in other comprehensive income and
accumulated under foreign currency translation reserve in equity. The foreign currency
translation reserve is reclassified from equity to profit or loss of the Group on disposal of
the foreign operation.
Exchange differences arising on the translation of non-monetary items carried at fair value
are included in profit or loss for the period except for the differences arising on the
translation of non-monetary items in respect of which gains and losses are recognised
directly in equity. Exchange differences arising from such non-monetary items are also
recognised directly in equity.
(iii) Foreign operations
The assets and liabilities of foreign operations are translated into RM at the rate of exchange
ruling at the reporting date and income and expenses are translated at exchange rates
at the dates of the transactions. The exchange differences arising on the translation are
taken the dates of the transactions. The exchange differences arising on the translation
are taken directly to other comprehensive income. On disposal of a foreign operation, the
cumulative amount recognised in other comprehensive income and accumulated in equity
under foreign currency translation reserve relating to that particular foreign operation is
recognised in the profit or loss.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are
treated as assets and liabilities of the foreign operations and are recorded in the functional
currency of the foreign operations and translated at the closing rate at the reporting date.
[196001000393 (4060-V)]

(c) Revenue recognition
Revenue from contracts with customers is recognised by reference to each distinct performance
obligation promised in the contract with the customer when or as the Group and the Company
transfer controls of the goods or services promised in a contract and the customer obtains
control of the goods or services.
Revenue from contracts with customers is measured at its transaction price, being the amount
of consideration to which the Group and the Company expect to be entitled in exchange for
transferring promised goods or services to a customer, net of discounts. Generally, the Group
and the Company receive short-term advances from its customers. Using the practical expedient
in MFRS 15, the Group and the Company do not adjust the promised amount of consideration
for the effects of a significant financing component if it expects, at contract inception, that the
period between the transfer of the promised goods or services to the customer and when the
customer pays for that goods or services will be one (1) year or less.
The transaction price is allocated to each distinct good or service promised in the contract.
Depending on the terms of the contract, revenue is recognised when the performance obligation
Annual Report 2020

is satisfied, which may be a point in time or over time.
The Group and the Company satisfy a performance obligation and recognises revenue over time,
if one (1) of the following criteria is met:
87
- The customer simultaneously receives and consumes the benefits provided by the Group’s
and the Company’s performance as the Group and the Company perform.
- The Group’s and the Company’s performance creates or enhances an asset that the
customer controls as the asset is created or enhanced.
- The Group’s and the Company’s performance does not create an asset with an alternative
use to the Group and the Company and the Group and the Company have an enforceable
right to payment for performance completed to date.
If none of the above conditions are not met, the Group and the Company recognise revenue at
the point in time at which the performance obligation is satisfied.
For performance obligations that the Group satisfies over time, the Group used output method in
measuring progress of the services of supply of electricity. This is because for supply of electricity,
the output transmitted to received by the customer is the best measure of transfer of service to
the customer.
(i) Sales of plantation produce
The Group’s and the Company’s revenue from plantation and mill segments derived
mainly from agricultural produce such as FFB, crude palm oil (“CPO”), palm kernel (“PK”)
and oil from empty fruit bunches.
Revenue from sales of agricultural produce is recognised net of discount and taxes at the
point in time when control of the goods has been transferred to the customer.
The transaction price is allocated to each performance obligation based on the standalone
selling price of the goods.
[196001000393 (4060-V)]

(c) Revenue recognition (cont’d)
(i) Sales of plantation produce (cont’d)
There is no element of financing present as the Group’s and the Company’s sale of goods
are either on cash terms (immediate payments or advance payment not exceeding 30
days); or on credit terms of up to 30 days.
(ii) Sales of earth and stones
Sales of earth and stones are recognised upon delivery of products and customers’
acceptance.
(iii) Supply of electricity
Revenue from supply of electricity is recognised over time as the Group simultaneously
receives and consumes the electricity provided by the entity.
Annual Report 2020
(iv) Revenue from hotel operations
Hotel operation income is recognised upon performance of services.
(v) Dividend income

88
Dividend income is recognised when the right to receive payment is established.
(vi) Other revenue
Revenue from other sources are recognised as follows:
(a) interest income is recognised on a time proportion basis that reflects the effective
yield on the assets; and
(b) rental income is recognised on a time proportion basis.

(d) Employee benefits
The Group and the Company recognise a liability when an employee has provided service in
exchange for employee benefits to be paid in the future and an expense when the Group and
the Company consume the economic benefits arising from service provided by an employee in
exchange for employee benefits.
(i) Short term benefits
Wages and salaries are usually accrued and paid on a monthly basis and are recognised as
an expense, unless they relate to cost of producing inventories or other assets.
Paid absences (annual leave, maternity leave, paternity leave, sick leave, etc.) are accrued
in each period if they are accumulating paid absences that can be carried forward, or in
the case of non-accumulating paid absences, recognised as and when the absences occur.
Profit sharing and bonus payments are recognised when, and only when, the Group and
the Company have a present legal or constructive obligation to make such payment as a
result of past events and a reliable estimate of the obligation can be made.
[196001000393 (4060-V)]

(d) Employee benefits (cont’d)
(ii) Post-employment benefits (defined contribution plans)
The Group and the Company make statutory contributions to the approved provident
funds and the contributions made are charged to profit or loss in the period to which
they relate. When the contributions have been paid, the Group and the Company have no
further payment obligations.
(e) Tax assets and liabilities
A current tax for current and prior periods, to the extent unpaid, is recognised as a current tax
liability. If the amount already paid in respect of current and prior periods exceed the amount
due for those periods, the excess is recognised as a current tax asset. A current tax liability/
(asset) is measured at the amount the entity expects to pay/(recover) using tax rates and laws
that have been enacted or substantially enacted by the reporting date.
A deferred tax liability is recognised for all taxable temporary differences, except to the extent that
Annual Report 2020

the deferred tax liability arises from the initial recognition of an asset or liability in a transaction
which is not a business combination and at the time of the transaction, affects neither accounting
profit nor taxable profit/(or tax loss). The exceptions for initial recognition differences include
items of property, plant and equipment that do not qualify for capital allowances and acquired
intangible assets that are not deductible for tax purposes. 89
A deferred tax asset is recognised for all deductible temporary differences to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences
can be utilised, unless the deferred tax asset arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and at the time of the transaction,
affects neither accounting profit nor taxable profit/(or tax loss). The exceptions for the initial
recognition differences include non-taxable government grants received and reinvestment
allowances and investment tax allowances on qualifying plant and equipment.
A deferred tax asset is recognised for the carry-forward of unused tax losses and unused tax
credits to the extent that it is probable that future taxable profit will be available against which
the unused tax losses and unused tax credits can be utilised.
Deferred taxes are measured using tax rates/(and tax laws) that have been enacted or substantially
enacted by the end of the reporting period. The measurement of deferred taxes reflects the tax
consequences that would follow from the manner in which the Group and the Company expect,
at the end of the reporting period, to recover or settle the carrying amount of its assets or
liabilities.
At the end of each reporting period, the carrying amount of a deferred tax asset is reviewed
and is reduced to the extent that it is no longer probably that sufficient taxable profit will be
available to allow the benefit of a part or all of that deferred tax asset to be utilised. Any such
reduction will be reversed to the extent that it becomes probably that sufficient taxable profit will
be available.
A current or deferred tax is recognised as income and expense in profit or loss for the period,
except to the extent that the tax arises from items recognised outside profit or loss. For an
income or expense item recognised in other comprehensive income, the current or deferred
tax expense or tax income is recognised in other comprehensive income. For items recognised
directly in equity, the related tax effect is also recognised directly in equity.
[196001000393 (4060-V)]

(f) Earnings per share
The Group presents basic and diluted earnings per share data for its ordinary shares (“EPS”).
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
Company by the weighted average number of ordinary shares outstanding during the period,
adjusted for own shares held. Diluted EPS is determined by adjusting the profit or loss attributable
to ordinary shareholders and the weighted average number of ordinary shares outstanding,
adjusted for own shares held, for the effects of all dilutive potential ordinary shares.
(g) Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. The cost of an item of
property, plant and equipment is recognised as an asset if, and only if, it is probable that future
economic benefits associated with the item will flow to the Group and the cost of the item can
be measured reliably.
Subsequent to recognition, property, plant and equipment are measured at cost less accumulated
Annual Report 2020
depreciation and accumulated impairment losses. When significant parts of property, plant and
equipment are required to be replaced in intervals, the Group recognises such parts as individual
assets with specific useful lives and depreciation, respectively. Likewise, when a major inspection
is performed, its cost is recognised in the carrying amount of the plant and equipment as a
90 replacement if the recognition criteria are satisfied. All other repair and maintenance costs are
recognised in profit or loss as incurred.

Any revaluation surplus is recognised in other comprehensive income and accumulated in equity
under the asset revaluation reserve, except to the extent that it reverses a revaluation decrease
of the same asset previously recognised in profit or loss, in which case the increase is recognised
in profit or loss. A revaluation deficit is recognised in profit or loss, except to the extent that it
offsets an existing surplus on the same asset carried in the asset revaluation reserve.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying
amount of the asset and the net amount is restated to the revalued amount of the asset. The
revaluation surplus included in the asset revaluation reserve in respect of an asset is transferred
directly to retained earnings on retirement or disposal of the asset.
Bearer plants comprise pre-cropping expenditure incurred from land clearing to the point of
maturity. Such expenditure is capitalised and is amortised at maturity of the crop over the useful
lives of the crop.
Direct expenditure incurred on quarry development is capitalised under quarry development

expenditure. A portion of the indirect overheads which include general and administrative
expenses and interest expense incurred on quarry development is similarly capitalised under
quarry development expenditure until such time when the quarry commences operation.
Quarry development expenditure is amortised based on the proportion of stone volume extracted
over the estimated volume of extractable stone from the quarry reserve.
Freehold land has an unlimited useful life and therefore is not depreciated.
Capital work-in-progress is not depreciated as these assets are not available for use. Depreciation
will commence on these assets when they are ready for their intended use.
[196001000393 (4060-V)]

(g) Property, plant and equipment (cont’d)
Property, plant and equipment are depreciated on a straight-line basis to write off the cost of the
property, plant and equipment over the term of their estimated use ful lives. The principal annual
rates of depreciation used are as follows:
Long term leasehold land 63 – 99 years

Short term leasehold land 23 – 60 years
Bearer plants – oil palm 22 years
Oil mill and other buildings 10 – 50 years
Plantation infrastructure 63 – 99 years
Heavy equipment, plant and machinery 10 – 25 years
Furniture and fittings, office equipment, laboratory
equipment, electrical installation, road and drainage 10 – 20 years
Motor vehicles 5 – 10 years
The carrying values of property, plant and equipment are reviewed for impairment when events
Annual Report 2020

or changes in circumstances indicate that the carrying value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at each financial year-end,
and adjusted prospectively, if appropriate.
91
An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss on derecognition of the
asset is included in the profit or loss in the year the asset is derecognised.
(h) Investment properties
Investment properties are properties which are held either to earn rental income or for capital
appreciation or for both. Investment properties are initially measured at cost, including transaction
costs. Subsequent to initial recognition, investment properties are measured at fair value which
reflects market condition as at the reporting date. Fair value is arrived at by reference to market
evidence of transaction prices for similar properties and is performed by registered independent
valuers having an appropriate recognised professional qualification and recent experience in the
location and category of the properties being valued. Gains or losses arising from changes in the
fair values of investment properties are included in profit or loss in the year in which they arise.
Investment properties are derecognised when either they have been disposed of or when the
investment property is permanently withdrawn from use and no future economic benefit is
expected from its disposal. Any gain or loss on the retirement or disposal of an investment
property is recognised in profit or loss in the year of retirement or disposal.
Transfers are made to or from investment property only when there is a change in use. For a
transfer from investment property to owner-occupied property, the deemed cost for subsequent
accounting is the fair value at the date of change in use. For a transfer from owner-occupied
property to investment property, the property is accounted for in accordance with the accounting
policy for property, plant and equipment as disclosed in Note 4 (g) up to the date of change in
use.
[196001000393 (4060-V)]

(i) Goodwill
Goodwill arising from a business combination is initially measured at cost being the excess of the
cost of business combination over the Group’s interest in the net fair value of the identifiable
assets, liabilities and contingent liabilities. Following the initial recognition, goodwill is measured
at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired is allocated, from the acquisition date,
to each of the Group’s CGU that are expected to benefit from the synergies of the combination.
The CGU to which goodwill has been allocated is tested for impairment annually and whenever
there is an indication that the CGU may be impaired, by comparing the carrying amount of
the CGU, including the allocated goodwill, with the recoverable amount of the CGU. Where
the recoverable amount of the CGU is less than the carrying amount, an impairment loss is
recognised in profit or loss. Impairment losses recognised for goodwill are not reversed in
subsequent periods.
Annual Report 2020
Where goodwill forms part of a CGU and part of the operation within that CGU is disposed of,
the goodwill associated with the operation disposed of is included in the carrying amount of the
operation when determining the gain or loss on disposal of the operation. Goodwill disposed of
in this circumstance is measured based on the relative fair values of the operations disposed of
92 and the portion of the CGU retained.
(j) Biological assets
Biological assets comprise the produce growing on bearer plants. Biological assets are measured
at fair value less costs to sell. Any gains or losses arising from changes in the fair value less costs
to sell are recognised in profit or loss. Fair value is determined based on the present value of
expected net cash flows from biological assets. The expected net cash flows are estimated using
the expected output method and the estimated market price of the biological assets.
Biological assets are classified as current assets as it relates to produce on the bearer plants that
are expected to be harvested at a date not more than 6 weeks after the reporting date.
(k) Inventories
Inventories are stated at the lower of cost and net realisable value. Costs incurred in bringing the
inventories to their present location and conditions are accounted for as follows:
(a) Palm oil products and quarry inventories
Costs of direct materials, direct labour, other direct charges and appropriate proportions
of factory overheads. These costs are assigned on weighted average cost method.
(b) Consumable stores
Purchase costs and expenses in bringing them into store on a weighted average cost
method.
[196001000393 (4060-V)]

(k) Inventories (cont’d)
(c) Nursery seedlings
Purchase costs and upkeep expenses on a weighted average cost method.
Net realisable value is the estimated selling price in the ordinary course of business less estimated
costs of completion and the estimated costs necessary to make the sale.
(l) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
(i) Financial assets
Financial assets are classified, at initial recognition, as subsequently measured at amortised

cost, fair value through other comprehensive income (OCI) and fair value through profit or
Annual Report 2020

loss.
The classification of financial assets at initial recognition depends on the financial asset’s
contractual cash flow characteristics and the Group’s and the Company’s business model
for managing them. With the exception of trade receivables that do not contain a significant 93
financing component or for which the Group and the Company have applied the practical
expedient, the Group and the Company initially measure a financial asset at its fair value
plus, in the case of a financial asset not at fair value through profit or loss, transaction
costs. Trade receivables that do not contain a significant financing component or for
which the Group and the Company have applied the practical expedient are measured at
the transaction price determined under MFRS 15.
In order for a financial asset to be classified and measured at amortised cost or fair value
through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and
interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the
SPPI test and is performed at an instrument level.
The Group’s and the Company’s business model for managing financial assets refers to
how it manages its financial assets in order to generate cash flows. The business model
determines whether cash flows will result from collecting contractual cash flows, selling
the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades) are
recognised on the trade date, i.e., the date that the Group and the Company commit to
purchase or sell the asset.
For purposes of subsequent measurement, financial assets are classified in four (4)
categories:
• Financial assets at amortised cost (debt instruments)

• Financial assets at fair value through OCI with recycling of cumulative gains and losses
(debt instruments)
• Financial assets designated at fair value through OCI with no recycling of cumulative
gains and losses upon derecognition (equity instruments)
• Financial assets at fair value through profit or loss
[196001000393 (4060-V)]

(l) Financial instruments (cont’d)
(i) Financial assets (cont’d)
Financial assets at amortised cost (debt instruments)
The Group and the Company measure financial assets at amortised cost if both of the
following conditions are met:
• The financial asset is held within a business model with the objective to hold financial
assets in order to collect contractual cash flows; and
• The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding
Financial assets at amortised cost are subsequently measured using the effective interest
rate (EIR) method and are subject to impairment. Gains and losses are recognised in profit
or loss when the asset is derecognised, modified or impaired.
Annual Report 2020
The Group’s and the Company’s financial assets at amortised cost includes trade and
other receivables and cash and bank balances.
Financial assets at fair value through OCI (debt instruments)

94
The Group and the Company measure debt instruments at fair value through OCI if both
of the following conditions are met:
• The financial asset is held within a business model with the objective of both holding
to collect contractual cash flows and selling; and
• The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding
For debt instruments at fair value through OCI, interest income, foreign exchange
revaluation and impairment losses or reversals are recognised in the statement of profit
or loss and computed in the same manner as for financial assets measured at amortised
cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the
cumulative fair value change recognised in OCI is recycled to profit or loss.
The Group and the Company have no debt instruments at fair value through OCI.
Financial assets designated at fair value through OCI (equity instruments)
Upon initial recognition, the Group and the Company can elect to classify irrevocably its
equity investments as equity instruments designated at fair value through OCI when they
meet the definition of equity under MFRS 132 Financial Instruments: Presentation and are
not held for trading. The classification is determined on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are
recognised as other income in the statement of profit or loss when the right of payment
has been established, except when the Company benefits from such proceeds as a recovery
of part of the cost of the financial asset, in which case, such gains are recorded in OCI.
Equity instruments designated at fair value through OCI are not subject to impairment
assessment.
[196001000393 (4060-V)]

Financial assets designated at fair value through OCI (equity instruments) (cont’d)
The Group and the Company elected to classify irrevocably their quoted and unquoted
equity instruments under this category.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading,
financial assets designated upon initial recognition at fair value through profit or loss, or
financial assets mandatorily required to be measured at fair value. Financial assets are
classified as held for trading if they are acquired for the purpose of selling or repurchasing
in the near term. Derivatives, including separated embedded derivatives, are also classified
as held for trading unless they are designated as effective hedging instruments. Financial
Annual Report 2020

assets with cash flows that are not solely payments of principal and interest are classified
and measured at fair value through profit or loss, irrespective of the business model.
Notwithstanding the criteria for debt instruments to be classified at amortised cost or at
fair value through OCI, as described above, debt instruments may be designated at fair
value through profit or loss on initial recognition if doing so eliminates, or significantly 95
reduces, an accounting mismatch.
Financial assets at fair value through profit or loss are carried in the statement of financial
position at fair value with net changes in fair value recognised in the statement of profit
or loss.
A derivative embedded in a hybrid contract, with a financial liability or non-financial host,

is separated from the host and accounted for as a separate derivative if: the economic
characteristics and risks are not closely related to the host; a separate instrument with
the same terms as the embedded derivative would meet the definition of a derivative;
and the hybrid contract is not measured at fair value through profit or loss. Embedded
derivatives are measured at fair value with changes in fair value recognised in profit or
loss. Reassessment only occurs if there is either a change in the terms of the contract that
significantly modifies the cash flows that would otherwise be required or a reclassification
of a financial asset out of the fair value through profit or loss category.
A derivative embedded within a hybrid contract containing a financial asset host is not
accounted for separately. The financial asset host together with the embedded derivative
is required to be classified in its entirety as a financial asset at fair value through profit or
loss.
The Group’s and the Company’s financial assets at fair value through profit or loss includes
short-term investments.
[196001000393 (4060-V)]

Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of
similar financial assets) is primarily derecognised when:
• The rights to receive cash flows from the asset have expired; or
• The Group and the Company have transferred its rights to receive cash flows from
the asset or has assumed an obligation to pay the received cash flows in full without
material delay to a third party under a ‘pass-through’ arrangement; and either (a) the
Group and the Company have transferred substantially all the risks and rewards of
the asset, or (b) the Group and the Company have neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the
asset
Annual Report 2020
When the Group and the Company have transferred its rights to receive cash flows from
an asset or has entered into a pass-through arrangement, it evaluates if, and to what
extent, it has retained the risks and rewards of ownership. When it has neither transferred
96 nor retained substantially all of the risks and rewards of the asset, nor transferred control
of the asset, the Group and the Company continue to recognise the transferred asset
to the extent of its continuing involvement. In that case, the Group and the Company
also recognise an associated liability. The transferred asset and the associated liability
are measured on a basis that reflects the rights and obligations that the Group and the
Company have retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the original carrying amount of the asset and the maximum
amount of consideration that the Group and the Company could be required to repay.
(ii) Financial liabilities
Financial liabilities are classified according to the substance of the contractual arrangements
entered into and the definitions of a financial liability.
Financial liabilities, within the scope of MFRS 9, are recognised in the statements of
financial position when, and only when, the Group and the Company become a party to
the contractual provisions of the financial instrument. Financial liabilities are classified as
either financial liabilities at fair value through profit or loss or financial liabilities measured
at amortised cost.
The subsequent measurement of financial liabilities depends on their classification as

follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for
trading and financial liabilities designated upon initial recognition as at fair value through
profit or loss.
[196001000393 (4060-V)]

(ii) Financial liabilities (cont’d)
Financial liabilities at fair value through profit or loss (cont’d)
Financial liabilities held for trading include derivatives entered into by the Group and the
Company that do not meet the hedge accounting criteria. Derivative liabilities are initially
measured at fair value and subsequently stated at fair value, with any resultant gains or
losses recognised in profit or loss. Net gains or losses on derivatives include exchange
differences.
Financial liabilities measured at amortised cost
The Group’s and the Company’s financial liabilities measured at amortised cost include
trade and other payables and loans and borrowings.
Annual Report 2020

Trade and other payables are recognised initially at fair value plus directly attributable
transaction costs and subsequently measured at amortised cost using the effective interest
method.
Loans and borrowings are recognised initially at fair value, net of transaction costs 97
incurred, and subsequently measured at amortised cost using the effective interest
method. Borrowings are classified as current liabilities unless the Group and the Company
have an unconditional right to defer settlement of the liability for at least twelve (12)
months after the reporting date.
For other financial liabilities, gains and losses are recognised in profit or loss when the
liabilities are derecognised, and through the amortisation process.
A financial liability is derecognised when the obligation under the liability is extinguished.
When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified,
such an exchange or modification is treated as a derecognition of the original liability and
the recognition of a new liability, and the difference in the respective carrying amounts is
recognised in profit or loss.
(m) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, at banks, deposits with licensed banks with
maturity not exceeding three (3) months and short-term, highly liquid investments which are
readily convertible to cash with short periods to maturity and are subject to an insignificant risk
of changes in value, net of outstanding bank overdrafts, if any.
[196001000393 (4060-V)]

(n) Impairment
(i) Impairment of financial assets
The Group and the Company recognise an allowance for expected credit losses (ECLs) for
all debt instruments not held at fair value through profit or loss. ECLs are based on the
difference between the contractual cash flows due in accordance with the contract and
all the cash flows that the Group and the Company expect to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include
cash flows from the sale of collateral held or other credit enhancements that are integral
to the contractual terms.
ECLs are recognised in two (2) stages. For credit exposures for which there has not been a
significant increase in credit risk since initial recognition, ECLs are provided for credit losses
that result from default events that are possible within the next 12-months (a 12-month
ECL). For those credit exposures for which there has been a significant increase in credit
risk since initial recognition, a loss allowance is required for credit losses expected over the
Annual Report 2020
remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Group and the Company apply a simplified
approach in calculating ECLs. Therefore, the Group and the Company do not track changes
98 in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each
reporting date. The Group and the Company have established a provision matrix that is
based on its historical credit loss experience, adjusted for forward-looking factors specific
to the debtors and the economic environment.
For debt instruments considered to have low credit risk, the Group and the Company
apply the low credit risk simplification. At every reporting date, the Group and the
Company evaluate whether the debt instrument is considered to have low credit risk using
all reasonable and supportable information that is available without undue cost or effort.
In making that evaluation, the Group and the Company reassess the internal credit rating
of the debt instrument.
In addition, the Group and the Company consider that there has been a significant increase
in credit risk when contractual payments are more than one (1) year past due. It is the
Group’s and the Company’s policy to measure ECLs on such instruments on a 12-month
basis. However, when there has been a significant increase in credit risk since origination,
the allowance will be based on the lifetime ECL.
The Group and the Company consider a financial asset in default when contractual
payments are one (1) year past due. However, in certain cases, the Group and the Company
may also consider a financial asset to be in default when internal or external information
indicates that the Group and the Company are unlikely to receive the outstanding
contractual amounts in full before taking into account any credit enhancements held by
the Group and the Company. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows.
[196001000393 (4060-V)]

(n) Impairment (cont’d)
(ii) Impairment of non-financial assets
The Group and the Company assess at each reporting date whether there is an indication
that an asset may be impaired. If any such indication exists, or when an annual impairment
assessment for an asset is required, the Group and the Company make an estimate of the
asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s fair value less costs to sell and its
value in use. For the purpose of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (CGU).
In assessing value in use, the estimated future cash flows expected to be generated by
the asset are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the
asset. Where the carrying amount of an asset exceeds its recoverable amount, the asset
Annual Report 2020

is written down to its recoverable amount. Impairment losses recognised in respect of a
CGU or groups of CGUs are allocated first to reduce the carrying amount of any goodwill
allocated to those units or groups of units and then, to reduce the carrying amount of the
other assets in the unit or groups of units on a pro-rata basis.
99
Impairment losses are recognised in profit or loss except for assets that are previously
revalued where the revaluation was taken to other comprehensive income. In this case the
impairment is also recognised in other comprehensive income up to the amount of any
previous revaluation.

An assessment is made at each reporting date as to whether there is any indication that
previously recognised impairment losses may no longer exist or may have decreased. A
previously recognised impairment loss is reversed only if there has been a change in the
estimates used to determine the asset’s recoverable amount since the last impairment loss
was recognised. If that is the case, the carrying amount of the asset is increased to its
recoverable amount. That increase cannot exceed the carrying amount that would have
been determined, net of depreciation, had no impairment loss been recognised previously.
Such reversal is recognised in profit or loss unless that asset is measured at revalued
amount, in which case the reversal is treated as a revaluation increase. Impairment loss on
goodwill is not reversed in a subsequent period.
(o) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group
and the Company after deducting all of its liabilities. Ordinary shares are classified as equity.
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental
transaction costs. Dividends on ordinary shares are recognised as an appropriation of retained
profits upon declaration, and are only taken up as liabilities upon the necessary approval being
obtained.
[196001000393 (4060-V)]

(p) Treasury shares
When shares of the Group, that have not been cancelled, recognised as equity are reacquired,
the amount of consideration paid is recognised directly in equity. Reacquired shares are classified
as treasury shares and presented as a deduction from total equity. No gain or loss is recognised
in profit or loss on the purchase, sale, issue or cancellation of treasury shares. When treasury
shares are reissued by resale, the difference between the sales consideration and the carrying
amount is recognised in equity.
(q) Borrowing costs
Borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly
attributable to the acquisition, construction or production of that asset. Capitalisation of
borrowing costs commences when the activities to prepare the asset for its intended use or
sale are in progress and the expenditures and borrowing costs are incurred. Borrowing costs are
capitalised until the assets are substantially completed for their intended use or sale.
Annual Report 2020
All other borrowings costs are recognised in profit or loss in the period they are incurred.
Borrowing costs consist of interest and other costs that the Group and the Company incurred in
connection with the borrowing of funds.
100 (r) Leases
(i) Classification
At inception of a contract, the Group and the Company assess whether a contract is,
or contains, a lease. A contract is, or contains, a lease if the contract conveys a right to
control the use of an identified asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset,
the Group assesses whether:
• the contract involves the use of an identified asset – this may be specified explicitly or
implicitly, and should be physically distinct or represent substantially all of the capacity
of a physical distinct asset. If the supplier has a substantive substitution right, then the
asset is not identified;
• the customer has the right to obtain substantially all of the economic benefits from
use of the asset throughout the period of use; and
• the customer has the right to direct the use of the asset. The customer has this right
when it has the decision-making rights that are most relevant to changing how and
for what purpose the asset is used. In rare cases where the decision about how and
for what purpose the asset is used is predetermined, the customer has the right to
direct the use of the asset if either the customer has the right to operate the asset;
or the customer designed the asset in a way that predetermines how and for what
purpose it will be used.
At inception or on reassessment of a contract that contains a lease component, the

Group and the Company allocate the consideration in the contract to each lease and non-
lease component on the basis of their relative stand-alone prices. However, for leases of
properties in which the Group and the Company are a lessee, it has elected not to separate
non-lease components and will instead account for the lease and non-lease components
as a single lease component.
[196001000393 (4060-V)]

(r) Leases (cont’d)
(ii) Lease term
In determining the lease term, the Group considers all facts and circumstances that create
an economic incentive to exercise an extension option, or not to exercise a termination
option. Extension options (or periods after termination options) are only included in the
lease term if the lease is reasonably certain to be extended (or not to be terminated).
(iii) Recognition and initial measurement
As a lessee
The Group and the Company recognise a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost, which comprises
the initial amount of the lease liability adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the underlying asset or the site
Annual Report 2020

on which it is located, less any lease incentives received.
The lease liability is initially measured at the present value of the lease payments that
are not paid at the commencement date, discounted using the interest rate implicit in
the lease or, if that rate cannot be readily determined, the respective Group and the 101
Company entities’ incremental borrowing rate. Generally, the Group and the Company
use its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following:
• fixed payments, including in-substance fixed payments less any incentives receivable;
• variable lease payments that depend on an index or a rate, initially measured using
the index or rate as at the commencement date;
• amounts expected to be payable under a residual value guarantee;
• the exercise price under a purchase option that the Group and the Company are
reasonably certain to exercise; and
• penalties for early termination of a lease unless the Group and the Company are
reasonably certain not to terminate early.
The Group and the Company exclude variable lease payments that linked to future
performance or usage of the underlying asset from the lease liability. Instead, these
payments are recognised in profit or loss in the period in which the performance or use
occurs.
The Group and the Company have elected to use the recognition exemption that permits
entities not to recognise right-of-use assets and lease liabilities for short-term leases that
have a lease term of twelve (12) months or less and leases of low-value assets. The Group
and the Company recognise the lease payments associated with these leases as an expense
on a straight-line basis over the lease term.
[196001000393 (4060-V)]

(iii) Recognition and initial measurement (cont’d)
As a lessor
When the Group acts as a lessor, it determines at lease inception whether each lease is a
finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease
transfers substantially all of the risks and rewards incidental to ownership of the underlying
asset. If this is the case, then the lease is a finance lease; if not, then it is an operating
lease.
If an arrangement contains lease and non-lease components, the Group applies MFRS 15
to allocate the consideration in the contract based on the stand-alone selling prices.
Annual Report 2020
When the Group is intermediate lessor, it accounts for its interests in the head lease and
the sublease separately. It assesses the lease classification of a sublease with reference to
the right-of-use asset arising from the head lease, not with reference to the underlying
asset. If a head lease is a short-term lease to which the Group and applies the exemption
102 described above, then it classifies the sublease as an operating lease.
(iv) Subsequent measurement
As a lessee
The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the earlier of the end of the useful life of the right-of-use asset or
the end of the lease term. The estimated useful lives of right-of-use assets are determined
on the same basis as those of property, plant and equipment. In addition, the right-of-
use asset is periodically reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
The lease liability is measured at amortised cost using the effective interest method. It is
remeasured when there is a change in future lease payments arising from a change in
an index or rate, if there is a revision of in-substance fixed lease payments, or if there is a
change in the Group’s and the Company’s estimate of the amount expected to be payable
under a residual value guarantee, or if the Group and the Company change its assessment
of whether it will exercise a purchase, extension or termination option.
The Group and the Company reassess the lease term upon the occurrence of a significant
event or change in circumstances that is within the control of the Group and the Company
affect whether the Group and the Company are reasonably certain to exercise an option
not previously included in the determination of lease term, or not to exercise an option
previously included in the determination of lease term. A revision in lease term results in
remeasurement of the lease liabilities.
When the lease liability is remeasured, a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of
the right-of-use asset has been reduced to zero.
[196001000393 (4060-V)]

(iv) Subsequent measurement (cont’d)
As a lessor
The Group recognises lease payments received under operating leases as income on a
straight-line basis over the lease term as part of “other operating income”.
(s) Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments
to reimburse the holder for a loss it incurs because a specified debtor fails to make payment
when due.
Financial guarantee contracts are recognised initially as a liability at fair value, net transaction
costs. Subsequent to initial recognition, financial guarantee contracts are recognised as income
Annual Report 2020

in profit or loss over the period of the guarantee. If the debtor fails to make payment relating to
financial guarantee contract when it is due and the Group, as the issuer, is required to reimburse
the holder for the associated loss, the liability is measured at the higher of the best estimate of
the expenditure required to settle the present obligation at the reporting date and the amount
initially recognised less cumulative amortisation. 103
(t) Provisions
Provisions are recognised when the Group and the Company have present legal or constructive
obligation as a result of a past event and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligations, and a reliable estimate of the amount
can be made.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.
If it is no longer probable that an outflow of resources embodying economic benefits will be
required to settle the obligation, the provision will be reversed. Where the effect of the time
value of money is material, provisions are discounted using a current pre-tax rate that reflects,
where appropriate, the risks specific to the liability and the present value of the expenditure
expected to be required to settle the obligation. When discounting is used, the increase in the
provision due to the passage of time is recognised as finance cost.
(u) Contingencies
A contingent liability or asset is a possible obligation that arises from past events and whose
existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Group.
Contingent liabilities and assets are not recognised in the statements of financial position of the
Group.
[196001000393 (4060-V)]

(v) Segment reporting
An operating segment is a component of the Group that engages in business activities from
which it may earn revenue and incur expenses, including revenue and expenses that relate to
transactions with any of the Group’s other components. All operating segments’ operating
results are reviewed regularly by the chief operating decision maker (“CODM”), which in this
case is the Group Managing Director, to make decisions about resources to be allocated to the
segment and to assess its performance, and for which discrete financial information is available.
(w) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transactions to sell the asset or transfer the
liability takes place either:
(i) In the principal market for the asset or liability, or

Annual Report 2020
(ii) In the absence of a principal market, in the most advantageous market for the asset or
liability.
104 The principal or the most advantageous market must be accessible to by the Group.
The fair value of an asset or liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.
The fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable
inputs and minimising the use unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorised within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole:
(i) Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or
liabilities
(ii) Level 2 – Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable
(iii) Level 3 – Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis,
the Group determines whether transfers have occurred between levels in the hierarchy by re-
assessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
[196001000393 (4060-V)]

5. Revenue
Group Company
Restated
2020 2019 2020 2019
RM RM RM RM

Revenue from contracts
with customers

Sale of:
- crude palm oil 238,022,905 219,815,267 - -
- earth and stones 1,699,584 1,570,079 - -
- empty fruit bunches oil 18,604,058 10,300,510 - -
- fresh fruit bunches 32,280,966 16,135,717 4,472,586 3,242,200
- palm kernel 36,898,827 33,132,763 - -
Revenue from hotel
operations 130,476 670,585 130,476 670,585
Supply of electricity 27,101,718 26,377,886 - -

354,738,534 308,002,807 4,603,062 3,912,785
Annual Report 2020

Timing of revenue
Recognition:

At a point in time 327,636,816 281,624,921 4,603,062 3,912,785
Over time 27,101,718 26,377,886 - - 105
354,738,534 308,002,807 4,603,062 3,912,785
There are no unfulfilled performance obligations, whether satisfied or partially satisfied to be recognised
over the subsequent periods.
6. Other operating income
Group Company
Restated
2020 2019 2020 2019
RM RM RM RM

Fair value gain on biological
assets (Note 22) 526,578 1,351,332 98,828 139,558
Gain on disposal of property,
plant and equipment 20,998 272,555 - 2,440
Insurances commission 188,928 173,410 80,665 61,612
Interest income from:
- short-term investments
and fixed deposits 621,501 758,993 9,704 20,038
- advances to subsidiary
companies - - 50,919 27,693
Miscellaneous income 154,711 10,084 48,600 35
Rental income 120,041 130,223 136,483 134,942
Reversal of allowance for
expected credit losses
(Note 23) 46,011 161,738 - -
(forward)
[196001000393 (4060-V)]

6. Other operating income (cont’d)
(continued)
Group Company
Restated
2020 2019 2020 2019
RM RM RM RM

Sale of:
- bunch ash 1,103 57,000 - -
- empty fruit bunches 188,815 185,867 - -
- fertiliser 24,738 23,863 - -
- fibre 75,052 19,000
- palm kernel shell 888,782 561,070 - -
- scrapped iron 192,269 315,958 - -
- sludge oil 897,451 640,000 - -
- waste oil 74,703 27,442 - -
Unrealised gain on
Annual Report 2020
foreign exchange - 18,724 - -

4,021,681 4,707,259 425,199 386,318
106
7. Other expenses
Group Company
Restated
2020 2019 2020 2019
RM RM RM RM

Allowance for expected credit
losses (Note 23) - 71,455 - -
Bad debts written off 269,363 119,053 - -
Deposits written off 39,000 - - -
Forwarding charges 1,175,400 1,333,988 - -
Inventories written off 1,625,990 - - -
Loss on disposal of
investment properties 260,000 - - -
Loss on disposal of property,
plant and equipment - - 4,000 -
Property, plant and equipment
written off (Note 15) 205,083 64,882 5,779 -
Realised loss on foreign
exchange 8,490 7,379 - -

3,583,326 1,596,757 9,779 -
[196001000393 (4060-V)]

8. Employee benefits expense
Group Company
2020 2019 2020 2019
RM RM RM RM

Salaries and wages 34,847,004 36,223,472 1,743,234 2,623,344
Contributions to defined
contribution plan 2,036,615 2,194,928 149,220 216,787
Contributions to employees
insurance system 16,088 19,663 1,234 1,462
Social security
contributions 293,603 239,833 16,884 18,574

37,193,310 38,677,896 1,910,572 2,860,167

Capitalised in bearer
plants (Note 15) 1,882,863 2,661,055 34,475 41,724
Annual Report 2020

Capitalised in inventories
(Nurseries) (Note 21) 162,539 386,895 14,539 25,895
Recognised in profit or loss 35,147,908 35,629,946 1,861,558 2,792,548

37,193,310 38,677,896 1,910,572 2,860,167 107

Included in employee benefits expense of the Group and of the Company are Executive Directors’
remuneration amounting to RM4,852,937 (2019: RM4,544,427) and RM341,600 (2019: RM660,756)
respectively as further disclosed in Note 9 to the financial statements.
9. Directors’ remuneration
The details of remuneration received and receivable by Directors of the Group and of the Company
during the financial year are as follows:
Group Company
2020 2019 2020 2019
RM RM RM RM

Executive Directors’
remuneration (Note 8)
- Salaries and other
emoluments 3,378,240 3,378,240 240,000 496,800
- Bonus 875,610 594,090 65,000 93,150
- Allowance 159,041 159,532 - -
- Contributions to defined
contribution plan 416,096 388,615 36,600 70,806
- Benefit-in-kind 23,950 23,950 - -

4,852,937 4,544,427 341,600 660,756
[196001000393 (4060-V)]

9. Directors’ remuneration (cont’d)
The details of remuneration received and receivable by Directors of the Group and of the Company
during the financial year are as follows: (cont’d)
Group Company
2020 2019 2020 2019
RM RM RM RM

Alternate Director
- Salaries and other
emoluments 128,316 83,400 - -
- Bonus 21,360 13,900 - -
- Contributions to defined
contribution plan 18,516 11,760 - -
168,192 109,060 - -

Non-executive Directors’
remuneration
Annual Report 2020
- Fees 159,000 159,000 - -

- Allowance 257,123 258,596 138,000 138,000

416,123 417,596 138,000 138,000
108
Total Directors’
remuneration 5,437,252 5,071,083 479,600 798,756
Included in the Directors’ remuneration of the Group and the Company above are remuneration
received and receivable by directors of the Company during the year which amounted to RM3,668,411
(2019: RM3,399,577) and RM479,600 (2019: RM798,756) respectively.
[196001000393 (4060-V)]

10. Profit/(Loss) from operations
Group Company
Restated
2020 2019 2020 2019
RM RM RM RM

Other than those disclosed
in Notes 6, 7, 8 and 9,
profit/(loss) from operations
is arrived at after charging:

Auditors’ remuneration
- Statutory audit
- Current year 382,342 419,373 55,000 59,000
- Under provision in
prior year 43,331 19,090 3,000 3,000
- Other services 106,678 152,814 - 13,800
Annual Report 2020

plant and equipment
(Note 15) 29,980,615 29,499,354 759,571 765,365
Rental expenses* 119,061 242,508 100,600 98,400

109
* Expenses relating to short-term lease accounted for applying the recognition exception of MFRS 16
Leases. There are no material expense relating to low value assets.
11. Finance costs
Group Company
2020 2019 2020 2019
RM RM RM RM

Interest expenses:

- Bank guarantee fee 30,000 - - -
- Lease liabilities 239,485 290,080 1,413 3,397
- Revolving credits 2,723,077 2,830,279 645,361 783,598
- Term loans 2,881,957 4,107,910 - -

5,874,519 7,228,269 646,774 786,995
Less: Capitalised in
bearer plants (Note 15) (1,065,208) (181,032) - -

4,809,311 7,047,237 646,774 786,995
[196001000393 (4060-V)]

12. Income from investments
Group Company
2020 2019 2020 2019
RM RM RM RM

Gross dividend income
from:

- subsidiary companies - - 7,684,974 6,006,196
- quoted investments
in Malaysia 8,545 8,963 8,246 8,749
- unquoted investments
in Malaysia 21,840 - - -

30,385 8,963 7,693,220 6,014,945

Annual Report 2020
13. Income tax expense
Group Company
Restated
110 2020 2019 2020 2019
RM RM RM RM

Current taxation 7,523,710 3,413,948 - -
Deferred tax (Note 19) 1,105,834 739,582 - (63,983)

8,629,544 4,153,530 - (63,983)

Under/(Over) provision
in prior years:
- Current taxation 131,827 155,693 - -
- Deferred tax (Note 19) (66,980) 1,415,775 (577,432) 54,166

64,847 1,571,468 (577,432) 54,166

8,694,391 5,724,998 (577,432) (9,817)
[196001000393 (4060-V)]

13. Income tax expense (cont’d)
A reconciliation of income tax expense applicable to profit before taxation at the statutory income
tax rate to income tax expense at the effective income tax rate of the Group and the Company is as
follows:
Group Company
Restated
2020 2019 2020 2019
RM RM RM RM


Taxation at Malaysian
statutory tax rate
of 24% (2019: 24%) 7,487,689 2,256,032 1,720,304 872,652
Non-deductible expenses 1,811,839 1,493,194 225,474 271,227
Non-deductible income (27,467) (223,832) (1,858,761) (1,451,118)
Effect of deductible
Annual Report 2020

temporary difference
but not recognised as
deferred tax assets (642,517) 628,136 (87,017) 243,256

8,629,544 4,153,530 - (63,983) 111

Under/(Over) provision
in prior years:
- Current taxation 131,827 155,693 - -
- Deferred tax (Note 19) (66,980) 1,415,775 (577,432) 54,166

64,847 1,571,468 (577,432) 54,166

8,694,391 5,724,998 (577,432) (9,817)
[196001000393 (4060-V)]

14. Earnings per share
(a) Basic
Basic loss per share amounts are calculated by dividing loss for the financial year, net of tax,
attributable to owners of the Company by the weighted average number of ordinary shares
outstanding during the financial year.
Group
Restated
2020 2019
RM RM

Profit net of tax attributable to owners
of the Company 13,673,659 2,500,648

Weighted average number of ordinary
shares in issue 196,543,970 196,543,970

Annual Report 2020

Basic earnings per share (sen) 6.96 1.27
(b) Diluted 112
There is no dilution in the earnings per share of the current and previous year end as there are
no dilutive potential ordinary shares outstanding at the end of the reporting period.
15. Property, plant and equipment
Office
Group Heavy equipment Electrical
Long term Short term equipment, Furniture and installation, Capital
31.12.2020 Freehold leasehold leasehold Bearer plant and and laboratory road and Motor work-in-
land land land plant Buildings* machinery fittings equipment drainage vehicles progress Total
Cost RM RM RM RM RM RM RM RM RM RM RM RM

At 1 January 2020
as previously reported 13,271,308 147,819,512 7,328,101 163,959,990 136,637,555 118,850,621 6,461,251 833,103 6,567,360 9,613,968 1,352,503 612,695,272
Prior year adjustments
(Note 39) - - - - 48,356,144 108,405,389 - - - - - 156,761,533

At 1 January 2020,
[196001000393 (4060-V)]
as restated 13,271,308 147,819,512 7,328,101 163,959,990 184,993,699 227,256,010 6,461,251 833,103 6,567,360 9,613,968 1,352,503 769,456,805

Additions 1,382,859 60,415 - 8,193,873 2,415,262 3,412,658 384,945 27,985 183,384 793,768 2,937,016 19,792,165
Disposals - - - - - (794,476) (27,618) - - (192,406) - (1,014,500)
Written off (Note 7) - - - (1,290,303) - (2,404,515) (10,900) - - (22,676) - (3,728,394)
Reclassification - - - - 557,870 188,627 (47,551) - - 48 (698,994) -

At 31 December 2020 14,654,167 147,879,927 7,328,101 170,863,560 187,966,831 227,658,304 6,760,127 861,088 6,750,744 10,192,702 3,590,525 784,506,076

Accumulated
depreciation

At 1 January 2020
as previously reported - 26,064,502 2,422,682 86,715,695 32,763,310 49,366,569 3,499,270 562,812 2,742,972 4,408,841 - 208,546,653
(Note 39) - - - - 13,365,264 29,495,142 - - - - - 42,860,406

At 1 January 2020,
as restated - 26,064,502 2,422,682 86,715,695 46,128,574 78,861,711 3,499,270 562,812 2,742,972 4,408,841 - 251,407,059
Charge for the financial
year (Note 10) - 1,936,136 133,521 5,790,543 6,798,160 13,639,326 556,176 38,632 289,954 798,167 - 29,980,615
Disposals - - - - - (580,184) (18,389) - - (159,232) - (757,085)
Written off (Note 7) - - - (1,184,767) - (2,311,528) (5,636) - - (21,380) - (3,523,311)
Reclassification - - - - (302,476) 284,141 (6,518) - - 24,853 - -

At 31 December 2020 - 28,000,638 2,556,203 91,321,471 52,624,258 89,893,466 4,024,903 601,444 3,032,926 5,051,249 - 277,106,558

Net book value

At 31 December 2020 14,654,167 119,879,289 4,771,898 79,542,089 135,342,573 137,764,838 2,735,224 259,644 3,717,818 5,141,453 3,590,525 507,399,518
113
Annual Report 2020

114
Annual Report 2020
15. Property, plant and equipment (cont’d)

Office
Group Heavy equipment Electrical
Long term Short term equipment, Furniture and installation, Capital
31.12.2019 Freehold leasehold leasehold Bearer plant and and laboratory road and Motor work-in-
land land land plant Buildings* machinery fittings equipment drainage vehicles progress Total
Cost RM RM RM RM RM RM RM RM RM RM RM RM

At 1 January 2019,
as previously reported 13,271,308 147,829,632 7,328,101 165,829,001 129,425,424 112,066,251 5,950,073 796,147 6,104,728 9,239,289 5,293,932 603,133,886
(Note 39) - - - - 48,356,144 105,193,346 - - - - - 153,549,490

At 1 January 2019,
[196001000393 (4060-V)]
as restated 13,271,308 147,829,632 7,328,101 165,829,001 177,781,568 217,259,597 5,950,073 796,147 6,104,728 9,239,289 5,293,932 756,683,376

Additions - - - 13,740,462 919,371 5,165,603 510,043 36,956 28,049 379,479 7,151,566 27,931,529
Disposals - (10,120) - (193,630) - (74,001) - - - (4,800) - (282,551)
Reclassifications - - - (894,012) 6,292,760 5,235,929 5,735 - 434,583 - (11,074,995) -
Written off (Note 7) - - - (14,521,831) - (331,118) (4,600) - - - (18,000) (14,875,549)

At 31 December 2019 13,271,308 147,819,512 7,328,101 163,959,990 184,993,699 227,256,010 6,461,251 833,103 6,567,360 9,613,968 1,352,503 769,456,805

Accumulated
depreciation

At 1 January 2019,
as previously reported - 23,971,771 2,289,161 95,526,417 28,804,461 42,568,353 2,912,954 513,572 2,455,612 3,605,674 - 202,647,975

(Note 39) - - - -
10,871,789
23,388,495 - - - - -
34,260,284
At 1 January 2019,
as restated - 23,971,771 2,289,161 95,526,417 39,676,250 65,956,848 2,912,954 513,572 2,455,612 3,605,674 - 236,908,259
year (Note 10) - 2,095,052 133,521 5,783,411 6,452,324 13,302,137 590,702 49,240 287,360 805,607 - 29,499,354
Disposals - (2,321) - (111,127) - (73,999) - - - (2,440) - (189,887)
Written off (Note 7) - - - (14,483,006) - (323,275) (4,386) - - - - (14,810,667)

At 31 December 2019 - 26,064,502 2,422,682 86,715,695 46,128,574 78,861,711 3,499,270 562,812 2,742,972 4,408,841 - 251,407,059

Net book value

At 31 December 2019 13,271,308 121,755,010 4,905,419 77,244,295 138,865,125 148,394,299 2,961,981 270,291 3,824,388 5,205,127 1,352,503 518,049,746
*Buildings comprise:
Group Plantation
Oil mill infrastructure
31.12.2020 Leasehold and other development
property buildings expenditure Quarry Total
Cost RM RM RM RM RM
At 1 January 2020, as previously reported 592,166 64,426,625 56,986,743 14,632,021 136,637,555

Prior year adjustments (Note 39) - 48,356,144 - - 48,356,144

[196001000393 (4060-V)]
At 1 January 2020, as restated 592,166 112,782,769 56,986,743 14,632,021 184,993,699
Additions - 48,218 2,367,044 - 2,415,262
Reclassification - (358) 558,228 - 557,870

At 31 December 2020 592,166 112,830,629 59,912,015 14,632,021 187,966,831

Accumulated depreciation

At 1 January 2020, as previously reported - 26,150,179 4,087,644 2,525,487 32,763,310

At 1 January 2020, as restated - 39,515,443 4,087,644 2,525,487 46,128,574
Charge for the financial year - 3,559,782 3,238,378 - 6,798,160
Reclassification - (302,684) 208 - (302,476)

At 31 December 2020 - 42,772,541 7,326,230 2,525,487 52,624,258

Net book value

At 31 December 2020 592,166 70,058,088 52,585,785 12,106,534 135,342,573
115
Annual Report 2020

116
Annual Report 2020
*Buildings comprise: (cont’d)
Group Plantation
Oil mill infrastructure
31.12.2019 Leasehold and other development
property buildings expenditure Quarry Total
Cost RM RM RM RM RM
At 1 January 2019, as previously reported 592,166 62,734,113 51,467,124 14,632,021 129,425,424

[196001000393 (4060-V)]


At 1 January 2019, as restated 592,166 111,090,257 51,467,124 14,632,021 177,781,568
Additions - 213,785 705,586 - 919,371
Reclassification - 1,478,727 4,814,033 - 6,292,760
At 31 December 2019 592,166 112,782,769 56,986,743 14,632,021 184,993,699


At 1 January 2019, as previously reported - 22,963,537 3,315,437 2,525,487 28,804,461

At 1 January 2019, as restated - 33,835,326 3,315,437 2,525,487 39,676,250
Charge for the financial year - 5,680,117 772,207 - 6,452,324

At 31 December 2019 - 39,515,443 4,087,644 2,525,487 46,128,574

Net book value

At 31 December 2019 592,166 73,267,326 52,899,099 12,106,534 138,865,125
Company
Long term Furniture
31.12.2020 Freehold leasehold Bearer Plant and and Office Electrical Motor
land land plant Buildings machinery fittings equipment installation vehicles Total
Cost RM RM RM RM RM RM RM RM RM RM

At 1 January 2020 3,006,617 388,220 4,115,402 7,916,139 409,796 1,646,044 677,378 171,763 737,389 19,068,748
Additions - - 529,487 15,600 22,020 12,711 15,535 11,700 - 607,053
Disposals - - - - - - - - (57,500) (57,500)
Written off (Note 7) - - (43,589) - - - - - - (43,589)


At 31 December 2020 3,006,617 388,220 4,601,300 7,931,739 431,816 1,658,755 692,913 183,463 679,889 19,574,712

[196001000393 (4060-V)]



At 1 January 2020 - - 752,010 3,776,121 107,109 903,572 494,190 143,666 446,474 6,623,142
Charge for the financial year (Note 10) - - 159,866 392,258 20,847 119,853 26,016 3,220 37,511 759,571
Disposals - - - - - - - - (47,500) (47,500)
Written off (Note 7) - - (37,810) - - - - - - (37,810)

At 31 December 2020 - - 874,066 4,168,379 127,956 1,023,425 520,206 146,886 436,485 7,297,403

Net book value

At 31 December 2020 3,006,617 388,220 3,727,234 3,763,360 303,860 635,330 172,707 36,577 243,404 12,277,309
117
Annual Report 2020

118
Annual Report 2020

Company
Long term Furniture Capital
31.12.2019 Freehold leasehold Bearer Plant and and Office Electrical Motor work-in-
land land plant Buildings machinery fittings equipment installation vehicles progress Total
Cost RM RM RM RM RM RM RM RM RM RM RM

At 1 January 2019 3,006,617 388,220 3,827,184 7,866,317 383,796 1,621,087 672,112 163,715 742,189 - 18,671,237
Additions - - 288,218 8,004 26,000 24,957 5,266 8,048 - 41,818 402,311
Disposals - - - - - - - - (4,800) - (4,800)
Reclassifications - - - 41,818 - - - - - (41,818) -


At 31 December 2019 3,006,617 388,220 4,115,402 7,916,139 409,796 1,646,044 677,378 171,763 737,389 - 19,068,748
[196001000393 (4060-V)]



At 1 January 2019 - - 613,293 3,384,675 86,867 762,915 457,105 140,807 414,555 - 5,860,217
year (Note 10) - - 138,717 391,446 20,242 140,657 37,085 2,859 34,359 - 765,365
Disposals - - - - - - - - (2,440) - (2,440)

At 31 December 2019 - - 752,010 3,776,121 107,109 903,572 494,190 143,666 446,474 - 6,623,142

Net book value

At 31 December 2019 3,006,617 388,220 3,363,392 4,140,018 302,687 742,472 183,188 28,097 290,915 - 12,445,606
[196001000393 (4060-V)]

The property, plant and equipment of the Group and the Company held as right-of-use assets are as
follows:
Group
Accumulated Net book
Cost depreciation value
31.12.2020 RM RM RM

Long term leasehold land 147,879,927 (28,000,638) 119,879,289
Short term leasehold land 7,328,101 (2,556,203) 4,771,898
Plant and machinery 2,971,000 (590,432) 2,380,568
Motor vehicles 4,887,190 (1,170,037) 3,717,153

163,066,218 (32,317,310) 130,748,908
31 .12.2019

Annual Report 2020

Long term leasehold land 147,819,512 (26,064,502) 121,755,010
Short term leasehold land 7,328,101 (2,422,682) 4,905,419
Plant and machinery 2,022,000 (322,050) 1,699,950
Motor vehicles 4,473,223 (859,808) 3,613,415
119
161,642,836 (29,669,042) 131,973,794

Company
Accumulated Net book
Cost depreciation value
31.12.2020 RM RM RM

Long term leasehold land 388,220 - 388,220
Motor vehicles 128,004 (50,402) 77,602

516,224 (50,402) 465,822

31.12.2019

Long term leasehold land 388,220 - 388,220
Motor vehicles 232,254 (78,566) 153,688

620,474 (78,566) 541,908
[196001000393 (4060-V)]

Leased assets of the Group and the Company pledged as security for the related finance lease liabilities
as disclosed in Note 29 to the financial statements.
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
RM RM RM RM

Right-of-use assets
- Plant and machinery 2,380,568 1,699,950 - -
- Motor vehicles 3,717,153 3,613,415 77,602 153,688

6,097,721 5,313,365 77,602 153,688

In addition, the net carrying value of the property, plant and equipment of the Group pledged to
licensed banks to secure the loans and borrowings granted to the Group as disclosed in Note 28 to the
financial statements are as follows:
Annual Report 2020
Group Company
Restated
31.12.2020 31.12.2019 31.12.2020 31.12.2019
120 RM RM RM RM

Freehold land 4,450,234 3,058,105 3,006,617 3,006,617
Bearer plant 55,771,472 53,714,717 3,727,234 3,363,392
Buildings 21,712,592 20,251,125 1,118,990 1,152,777
Plantation infrastructure
development
expenditure 49,638,680 50,824,467 - -
Plant and machinery 118,610,270 128,544,864 147,442 135,819
Furniture and fittings 1,797,183 1,966,330 46,599 45,972
Office equipment 93,529 98,386 93,529 98,386
Electrical installation 36,577 28,097 36,577 28,097
Capital work-in-progress 1,421,458 1,141,787 - -
Right-of-use assets
- Leasehold land 37,903,506 41,822,417 - -
- Motor vehicles 375,539 595,544 - -

290,811,041 302,045,839 8,176,988 7,831,060
Additions in bearer plants during the financial year included the following:
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
RM RM RM RM

Employee benefits
expense (Note 8) 1,882,863 2,661,055 34,475 41,724
Interest expense (Note 11) 1,065,208 181,032 - -
[196001000393 (4060-V)]

16. Investment properties
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
Fair value RM RM RM RM

At 1 January 49,923,826 49,250,000 1,250,000 1,250,000
Additions - 673,826 - -
Disposal (4,660,000) - - -
At 31 December 45,263,826 49,923,826 1,250,000 1,250,000

The category of the fair value of investment properties are further disclosed in Note 35 to the financial
statements.
Investment properties are stated at fair value, which has been determined based on valuations performed
during the financial year by independent professional valuers using sales comparison method that
makes reference to the sales prices of comparable properties in close proximity which are adjusted
Annual Report 2020

for differences in key attributes such as property size and location. The most significant input into this
valuation approach is price per square foot of comparable properties.
Range of adjustment factor

31.12.2020 31.12.2019 121
Valuation techniques Significant unobservable inputs % %

Market comparable Difference in size and bulk discount
approach 5 – 10 5 – 10
The followings are recognized in profit or loss in respect of investment properties:
Group and Company

31.12.2020 31.12.2019
RM RM

Rental income 76,230 73,920
Direct operating expenses (3,499) (3,719)

For all investment properties that are measured at fair value, the current use of the properties are
considered the highest and best use.
[196001000393 (4060-V)]

17. Investments in subsidiary companies
Company
31.12.2020 31.12.2019
RM RM

Unquoted investments
At 1 January/31 December 109,804,859 109,804,859

Quoted investments
At 1 January 99,266,114 99,266,114
Increase in investment in a subsidiary 39,347 -

At 31 December 99,305,461 99,266,114

209,110,320 209,070,973
Details of the subsidiaries are as follows:

Annual Report 2020
Proportion of Proportion of
ownership interest ownership interest
held by held by
the Group* non-controlling interests*
122 Name of subsidiary Country of 31.12.2020 31.12.2019 31.12.2020 31.12.2019
companies incorporation % % % % Principal activities

Held by the Company

Champion Point Sdn. Bhd. Malaysia 100 100 - - Cultivation of oil palm and
sale of fresh fruit bunches

Yew Lee Holdings Malaysia 100 100 - - Cultivation of oil palm and
Sdn. Berhad sale of fresh fruit bunches

Majuperak Plantation Malaysia 100 100 - - Cultivation of oil palm and
Sdn. Bhd. sale of fresh fruit bunches

Anson Oil Industries Malaysia 100 100 - - Cultivation of oil palm,
Sdn. Bhd. milling and sale of
oil palm products

Ayu Gemilang Sdn. Bhd. Malaysia 100 100 - - Investment holding

Telok Anson Hotel Malaysia 100 100 - - Property development
Sdn. Berhad

Mah Hock Company Malaysia 100 100 - - Property investment,
Sendirian Berhad housing development
and cultivation of oil palm

Cepatwawasan Group Malaysia 38.50 38.46 61.50 61.54 Investment holding
Berhad (“CGB”) and provision of
management services
to its subsidiary companies
[196001000393 (4060-V)]

17. Investments in subsidiary companies (cont’d)
Details of the subsidiaries are as follows: (cont’d)
held by held by
Name of subsidiary Country of 31.12.2020 31.12.2019 31.12.2020 31.12.2019

Held through Yew Lee
Holdings Sdn. Berhad

Sharikat Muzwin Malaysia 99 99 1 1 Cultivation of oil palm and
Bersaudara Sdn. Bhd. sale of fresh fruit bunches

Hutan Melintang Malaysia 100 100 - - Cultivation of oil palm and
Plantations Sdn. Berhad sale of fresh fruit bunches
Held through Majuperak

Plantation Sdn. Bhd.
Annual Report 2020

Majuperak Sawit Sdn. Bhd. Malaysia 100 100 - - Dormant

Held through
Cepatwawasan Group
Berhad 123

Cepatwawasan Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and

Syarikat Melabau Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and

Wong Tet-Jung Plantations Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and
Sdn. Bhd. sale of fresh fruit bunches

Razijaya Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm,
sale of fresh fruit bunches,
and operation of a quarry

Sri Likas Mewah Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and

Kovusak Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and

Libarran Island Resort Malaysia 38.50 38.46 61.50 61.54 Investment holding
Sdn. Bhd.

Bakara Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and

Sungguh Mulia Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and

Prima Semasa Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and

Ayu Sempurna Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Investment holding
[196001000393 (4060-V)]

held by held by

Held through
Cepatwawasan Group
Berhad

Cash Nexus (M) Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Investment holding

Magnum Kapital Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Dormant

Hikayat Anggun Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Dormant

Aspenglade Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Dormant
Annual Report 2020

Ekuiti Etika Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Dormant
Held through
Cepatwawasan Sdn. Bhd.
124
Prolific Yield Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Milling and sales of oil palm
products

Jutategak Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and

Liga Semarak Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and

Tentu Cergas Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and

Tentu Bernas Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and

Held through Syarikat
Melabau Sdn. Bhd.

Suara Baru Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm,
sale of fresh fruit bunches,
and operation of a quarry

Gelang Usaha Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm and

Swifturn Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Letting of oil palm fresh fruit
bunches collection center

Held through Sri Likas
Mewah Sdn. Bhd.

Ultisearch Trading Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Cultivation of oil palm,
[196001000393 (4060-V)]


held by held by

Held through Libarran
Island Resort Sdn. Bhd.

Minelink Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Investment property holding

Held through Ayu
Sempurna Sdn. Bhd. and
Ayu Gemilang Sdn. Bhd.

Ladang Cepat-KPD Sdn. Bhd. Malaysia 43.10 43.08 56.90 56.92 Cultivation of oil palm and

Held through Cash Nexus
(M) Sdn. Bhd.
Annual Report 2020

Power Precinct Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Investment holding

Cash Horse (M) Sdn. Bhd. Malaysia 38.50 38.46 61.50 61.54 Power generation and sale of
biomass by-products
125
Timah Resources Limited # ^ Australia 25.46 24.12 74.54 75.88 Investment holding
Mistral Engineering Malaysia 19.64 - - - Power generation

Sdn. Bhd.**
Held through Timah

Resources Limited

Mistral Engineering Malaysia 12.48 24.12 67.88 75.88 Power generation
Sdn. Bhd.**

# Audited by a firm other than PKF

* Equals to the proportion of voting rights held
** Mistral Engineering Sdn. Bhd. is held through both Cash Nexus (M) Sdn. Bhd. and Timah Resources Limited
^ Listed on the Australian Securities Exchange Ltd or ASX Limited
Increase in stake of a subsidiary
On 7 August 2020, a Sub Group, CGB had undertaken an internal restructuring exercise to increase its
effective interest in a subsidiary, Mistral Engineering Sdn. Bhd. (“Mistral Engineering”), from 62.71%
to 83.40%. Cash Nexus (M) Sdn. Bhd. acquired an additional 9,627,552 ordinary shares at a value
of RM1.64 per ordinary share totalling RM15,803,627, representing an additional of 20.69% equity
interest in Mistral Engineering Sdn. Bhd. for consideration by way of conversion of a portion of debt
owing by Mistral Engineering Sdn. Bhd. to the Company to equity.
Following is a schedule of additional interest acquired in Mistral Engineering:
RM

Consideration paid for the 20.69% increase in stake -
Carrying value of the additional interest in Mistral Engineering (1,014,181)

Difference recognised in retained profits (1,014,181)
[196001000393 (4060-V)]

Non-controlling interests in subsidiary
Summarised financial information of CGB which has non-controlling interests that are material to the
Group are set out below. The summarised financial information presented below is the amount before
inter-company elimination.
Restated
31.12.2020 31.12.2019
RM RM

Summarised consolidated statements of
profit or loss and other comprehensive income

Revenue 234,993,797 215,279,366
Profit for the year 15,214,099 2,436,498

Annual Report 2020
Owners of the Company 14,617,881 418,547

Non-controlling interests 596,218 2,017,951

15,214,099 2,436,498
126
Other comprehensive income attributable to:
Owners of the Company 175,747 (54,306)
Non-controlling interests 104,507 (32,292)

280,254 (86,598)

Total comprehensive income 15,494,354 2,349,900

Total comprehensive income attributable to:
Owners of the Company 14,793,630 364,241
Non-controlling interests 700,724 1,985,659

15,494,354 2,349,900

Dividends paid to non-controlling interests 3,650,440 3,454,037
Effect of subsidiary’s treasury share transactions 670,434 103,814
[196001000393 (4060-V)]

Non-controlling interests in subsidiary (cont’d)
Summarised financial information of CGB which has non-controlling interests that are material to the
Group are set out below. The summarised financial information presented below is the amount before
inter-company elimination. (cont’d)
Restated
31.12.2020 31.12.2019
RM RM

Summarised consolidated statement of
financial position

Non-current assets 409,908,428 418,775,116
Current assets 71,756,950 70,120,401
Non-current liabilities (72,826,601) (75,147,178)
Current liabilities (67,290,212) (80,665,061)
Annual Report 2020

Net assets 341,548,565 333,083,278

127
Equity attributable to owners of the Company 131,359,578 128,103,829
Non-controlling interests 210,188,987 204,979,449

Dividends paid to non-controlling interests 3,650,440 3,454,037
Effect of subsidiary’s treasury share transactions 670,434 103,814

Summarised cash flows information

Net cash from operating activities 41,801,527 28,620,501
Net cash used in investing activities (12,592,617) (21,612,484)
Net cash used in financing activities (20,599,472) (8,851,747)

Net increase/(decrease) in cash and cash
equivalents 8,609,438 (1,843,730)
Net foreign exchange difference - (83,540)
Cash and cash equivalents at beginning of the
financial year 12,843,475 14,770,745

Cash and cash equivalents at end of the
financial year 21,452,913 12,843,475
[196001000393 (4060-V)]

18. Investments in securities
31.12.2020 31.12.2019
Market value Market value
Carrying of quoted Carrying of quoted
amount investments amount investments
Group RM RM RM RM
Non-current

Financial assets
- Equity instruments
(quoted in Malaysia) 167,779 167,779 196,705 196,705
(unquoted), at fair value 170,647 - 197,800 -

At 31 December 338,426 394,505

Annual Report 2020
Company

Non-current

128 Financial assets
- Equity instruments 154,917 154,917 185,557 185,557
(quoted in Malaysia)
(unquoted), at fair value 50,000 - 50,000 -
At 31 December 204,917 235,557

19. Deferred tax assets/(liabilities)
Group Company
Restated
31.12.2020 31.12.2019 31.12.2020 31.12.2019
RM RM RM RM

At 1 January (41,096,921) (38,941,564) (577,432) (587,249)
Recognised in profit
or loss (Note 13) (1,038,854) (2,155,357) 577,432 9,817

At 31 December (42,135,775) (41,096,921) - (577,432)
[196001000393 (4060-V)]

19. Deferred tax assets/(liabilities) (cont’d)
The components of deferred tax assets and liabilities during the financial year recognised in profit and
loss prior and after offsetting are as follows:

Group Company
Restated Restated
31.12.2020 31.12.2019 1.1.2019 31.12.2020 31.12.2019
RM RM RM RM RM

Deferred tax assets
Lease liabilities - 14,000 - - -
Provision 328,742 399,931 382,534 - -
Allowance for expected
credit losses 46,280 74,357 108,000 - -
Unutilised tax losses 2,962,751 3,445,858 7,168,659 602,820 -
Unabsorbed agriculture
and capital allowances 9,460,755 34,937,067 32,867,028 851,429 801,689
Unabsorbed investment
Annual Report 2020

tax allowances 5,687,679 5,523,178 1,018,742 - -

18,486,207 44,394,391 41,544,963 1,454,249 801,689

Deferred tax liabilities 129
Property, plant and
equipment and
investment properties (59,078,645) (81,747,163) (78,245,265) (1,286,123) (1,247,542)
Biological assets (689,108) (570,593) (241,027) (87,681) (51,134)
Revaluation of leasehold
land and buildings (715,601) (728,836) (777,875) (15,529) (15,529)
Fair value changes to
investment properties (138,628) (2,444,720) (1,222,360) (64,916) (64,916)

(60,621,982) (85,491,312) (80,486,527) (1,454,249) (1,379,121)

(42,135,775) (41,096,921) (38,941,564) - (577,432)
Presented after appropriate offsetting as follows:
Group Company
Restated Restated
31.12.2020 31.12.2019 1.1.2019 31.12.2020 31.12.2019
RM RM RM RM RM

Deferred tax assets 6,777,164 7,559,794 5,767,254 - -
Deferred tax liabilities (48,912,939) (48,656,715) (44,708,818) - (577,432)

(42,135,775) (41,096,921) (38,941,564) - (577,432)
[196001000393 (4060-V)]

19. Deferred tax assets/(liabilities) (cont’d)
No deferred tax asset has been recognised for the following items:

Group Company
Restated Restated
31.12.2020 31.12.2019 1.1.2019 31.12.2020 31.12.2019
RM RM RM RM RM

Unabsorbed capital
allowances 1,709,368 438,705 578,222 - -
Unutilised tax losses 26,799,823 31,026,720 5,411,802 1,134,733 3,903,269

28,509,191 31,465,425 5,990,024 1,134,733 3,903,269

Tax rate 24% 24% 24% 24% 24%

Deferred tax assets not
Annual Report 2020
recognise 6,842,205 7,551,702 1,437,606 272,336 936,785
The unabsorbed capital allowances disclosed above are available indefinitely for offsetting against
130 future taxable profits of the Group whereas the unutilised losses is available to be carried forward up to
the maximum of seven (7) years, subject to no substantial change in shareholdings of these subsidiaries
under the Income Tax Act, 1967 and guidelines issued by the tax authority.
Deferred tax assets have not been recognised in respect of these items because it is not probable that
future taxable profit will be available against which the Group and the Company can utilise the benefits.
20. Goodwill on consolidation
Group
31.12.2020 31.12.2019
RM RM

Goodwill

At 1 January/31 December 43,867,118 43,867,118

Impairment testing of goodwill
Goodwill which arose from business combinations has been allocated to CGUs identified according to
the individual subsidiaries and the Sub Group, all of which are principally involved in plantation activities
for impairment testing.
The recoverable amount of the above CGUs has been determined based on a combination of FVLCD
where the management relied on independent professional valuers using comparison method valuation
and VIU calculations using cash flow projections approved by management covering a five-year period.
[196001000393 (4060-V)]

20. Goodwill on consolidation (cont’d)
The following describes each key assumption on which management has based its cash flow projections
to undertake impairment testing of goodwill:
Group
31.12.2020 31.12.2019
RM RM

CPO per metric tonne (“MT”) (RM) 2,998 – 3,000 2,078 – 2,358
PK per MT (RM) 1,600 – 1,739 1,400 – 1,750
Discount rates 10% 10%

(i) CPO and PK prices are based on the current market outlook of product prices relating to the
CGU.
(ii) Discount rates used for cash flows discounting purpose is the Group’s weighted average cost of
capital.

Annual Report 2020

For CGUs determined based on FVLCD, the recoverable values were determined by the professional
valuers on plantation land using market comparison approach that reflects recent transacted prices of
similar properties. These prices are adjusted for factors of size and location by a range of 5% - 10%
to arrive at a range of valuation of RM30,000 to RM34,000 per acre for plantation land. There are no
CGUs determined based on FVLCD in prior year. 131
Sensitivity to changes in assumptions
With regard to the assessment of value-in-use of the plantation segment, management believes that
any reasonable possible change in any of the above key assumptions applied is unlikely to materially
cause the recoverable amounts to be lower than the carrying values of the CGU.
21. Inventories
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
At cost RM RM RM RM

Crude palm oil 1,485,029 814,857 - -
Empty fruit bunches 40,009 11,000 - -
Empty fruit bunches oil 579,288 77,000 - -
Fibre 29,333 253,000 - -
Nursery, seedlings, stores
and materials 6,127,289 7,495,722 210,336 186,371
Palm kernel 885,760 964,078 - -
Quarry stocks 9,372,686 13,742,742 - -
Shell 13,993 127,000 - -

18,533,387 23,485,399 210,336 186,371
Net realisable value

Crude palm oil - 1,869,783 - -

18,533,387 25,355,182 210,336 186,371

[196001000393 (4060-V)]

21. Inventories (cont’d)
During the financial year, the amount of inventories recognised as an expense in cost of sales of the
Group and the Company were RM26,724,635 and RM375,353 (2019: RM25,012,312 and RM357,100).
Additions in nurseries during the financial year included the following:
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
RM RM RM RM

Employee benefits
expense (Note 8) 162,539 386,895 14,539 25,895

22. Biological assets
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
Annual Report 2020
At fair value RM RM RM RM

At 1 January 2,737,438 1,386,106 213,058 73,500
Fair value gain (Note 6) 526,578 1,351,332 98,828 139,558
132
At 31 December 3,264,016 2,737,438 311,886 213,058
The biological assets of the Group and the Company comprise fresh fruit bunches (“FFB”) prior to
harvest. To arrive at the fair value of FFB, the management has considered the oil content of the unripe
FFB and derived at the assumption that the net cash flows to be generated from FFB prior to more than
six (6) weeks to harvest is negligible, therefore quantity of unripe FFB on bearer plants of up to six (6)
weeks prior to harvest was used for valuation purpose. The value of the unripe FFB was estimated to
be approximately 17% for FFB that are five (5) to six (6) weeks prior to harvest, 50% for FFB that are
three (3) to four (4) weeks prior to harvest and 83% for FFB that are one (1) to two (2) weeks prior
to harvest. The quantity of unharvested FFB of the Group and the Company as at 31 December 2020
included in the fair valuation of FFB were 13,403 and 1,101 metric tonne (2019: 15,760 and 1,054
metric tonne) respectively. The net present value of cash flows is then determined with reference to the
market value of crude palm oil at the date of harvest, adjusted for freight and other costs to sell at the
point of harvest.
The valuation model adopted by the Group is a discounted cash flow model which includes all cash
inflows, cash outflows and imputed contributory asset charges where no actual cash flows associated
with the use of assets essential to the agricultural activity are accounted for. The net present value
of cash flows is then determined with reference to the market value of crude palm oil at the date of
harvest, adjusted for freight, extraction rates, production, transportation, contributory asset charges
and other costs to sell at the point of harvest. Changes to the assumed prices of the FFB and tonnage
included in the valuation will have a direct effect on the reported valuation.
[196001000393 (4060-V)]

22. Biological assets (cont’d)
The relationship of the unobservable inputs to changes in fair value, with all other variables held
constant is as follows:
Fair value gain/(loss)

31.12.2020 31.12.2019
Increase by Decrease by Increase by Decrease by
10% 10%` 10% 10%
Group RM RM RM RM

FFB price 455,649 (455,649) 431,151 (431,151)
Production volume 455,649 (455,649) 431,151 (431,151)
Harvest and
transportation costs (129,247) 129,247 (157,408) 157,408

Company

Annual Report 2020

FFB price 41,459 (41,459) 31,459 (31,459)
Production volume 41,459 (41,459) 31,459 (31,459)
Harvest and
transportation costs (10,271) 10,271 (10,154) 10,154
133
23. Trade and other receivables
Group Company
Restated Restated
31.12.2020 31.12.2019 1.1.2019 31.12.2020 31.12.2019
Trade receivables RM RM RM RM RM

Third parties 15,205,333 15,285,523 10,323,816 158,146 164,347
Amounts due from
subsidiaries - - - 212,057 129,966

15,205,333 15,285,523 10,323,816 370,203 294,313
Less: Allowance for
expected credit
losses (278,323) (325,142) (485,847) - -

Trade receivables, net 14,927,010 14,960,381 9,837,969 370,203 294,313
[196001000393 (4060-V)]

23. Trade and other receivables (cont’d)
Group Company
Restated Restated
31.12.2020 31.12.2019 1.1.2019 31.12.2020 31.12.2019
Other receivables RM RM RM RM RM

Other receivables
- Amounts due from
subsidiaries
- Interest bearing - - - 2,654,754 620,000
- Non-interest bearing - - - 8,778 17,930
- Sundry receivables 5,795,158 1,449,797 2,100,659 151,342 201,160
GST receivables 151,916 341,843 321,778 - -
Prepayments and deposits 3,225,921 4,446,166 5,297,135 75,463 100,888

9,172,995 6,237,806 7,719,572 2,890,337 939,978
Less: Allowance for
expected credit
losses (1,074,432) (1,073,624) (1,005,150) - -

Annual Report 2020
Other receivables, net 8,098,563 5,164,182 6,714,422 2,890,337 939,978
Total trade and other

receivables 23,025,573 20,124,563 16,552,391 3,260,540 1,234,291
134

Trade receivables are non-interest bearing and are generally on 7 to 30 days (2019: 7 to 30 days)
terms. They are recognised at their original invoice amounts which represent their fair values on initial
recognition.

Amounts due from subsidiaries are unsecured, interest bearing and repayable on demand. The interest
bearing advances are subject to interest charge based on recovery of borrowing cost incurred by the
Company.
During the financial year, the following losses/(gains) were recognised in profit or loss in relation to
impaired financial assets:
Trade Other
receivables receivables Total
Group RM RM RM

At 1 January 2019 485,847 1,005,150 1,490,997
Charge for the financial year (Note 7) 1,033 70,422 71,455
Reversal during the financial year (Note 6) (161,738) - (161,738)
Written off - (1,948) (1,948)

At 31 December 2019 325,142 1,073,624 1,398,766
Reversal during the financial year (Note 6) (46,819) 808 (46,011)

At 31 December 2020 278,323 1,074,432 1,352,755

There was no material expected credit loss for the Company’s trade receivables as of the financial year
end.
Information about the Group’s and the Company’s exposure to credit risks and expected credit losses
for trade receivables is included in Note 34 to the financial statements.
[196001000393 (4060-V)]

24. Short-term investments
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
RM RM RM RM

Fair value through
profit or loss
Short-term investments 17,573,020 16,319,942 13,453 12,174

Short-term funds are investments in income trust funds in Malaysia. The trust funds invest in highly
liquid assets which are readily convertible to known amounts of cash with insignificant changes in
value.
25. Cash and cash equivalents
Group Company
Annual Report 2020

31.12.2020 31.12.2019 31.12.2020 31.12.2019
RM RM RM RM

Cash and bank balances 24,810,763 13,140,619 555,409 821,8476
Fixed deposits with 135
licensed banks 7,795,835 7,623,917 403,739 396,042

Cash and bank balances 32,606,598 20,764,536 959,148 1,217,889
Less: Fixed deposits
pledged as securities
for banking facilities
and fixed deposits
with maturity of more
than three (3) months
(Note 28) (4,620,646) (3,332,831) (403,739) (396,042)

Cash and cash equivalents 27,985,952 17,431,705 555,409 821,847

The fixed deposits of the Group and the Company include an amount of RM403,739 (2019: RM396,042),
which are registered in the names of two of the Company’s Directors and held in trust for the Company,
are pledged as securities for bankers’ guarantee facilities granted to the Group.
The interest rate structure are as follows:
Fixed interest rate per annum

Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019

Fixed deposits with 1.70% to 2.95% to 1.75% 2.95%
licensed banks 2.85% 3.04%
[196001000393 (4060-V)]

25. Cash and cash equivalents (cont’d)
The maturities of deposits as at the end of the financial year are as follows:
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
Days Days Days Days

Fixed deposits with
icensed banks 30 – 365 30 – 31 30 – 31 30 – 31
26. Share capital
No. of ordinary shares Group/Company

RM RM

At 1 January 2019/31
December 2019/31
Annual Report 2020
December 2020 196,543,970 196,543,970 196,543,970 196,543,970

The holders of ordinary shares are entitled to receive dividends as and when declared by the Company.
All ordinary shares carry one vote per share without restrictions and rank equally with regard to the
136
Company’s residual assets.
27. Reserve
Restated
31.12.2020 31.12.2019
RM RM

Group

Distributable

Capital reserve 8,169 8,169
Retained profits 80,450,153 69,384,395

80,458,322 69,392,564
Non-distributable

Capital reserve 5,736,883 5,736,883
Other reserve (32,381,526) (32,265,746)
Revaluation reserve 789,026 789,026
Fair value adjustment reserve (4,419) 51,860
Foreign currency translation reserve (276,132) (343,729)

(26,136,168) (26,031,706)

54,322,154 43,360,858
[196001000393 (4060-V)]

27. Reserve (cont’d)
31.12.2020 31.12.2019
RM RM

Company

Distributable
Retained profits 16,732,082 11,934,876

Non-distributable
Fair value adjustment reserve (80,159) (49,519)

16,651,923 11,885,357
Retained profits

The Group’s and the Company’s policy is to treat all gains and losses that pass through the statements
Annual Report 2020

of profit or loss and other comprehensive income (i.e. non-owner transactions or events) as revenue
reserves. Other than retained profits, all other revenue reserves are regarded as non-distributable in the
form of cash dividends to shareholders. Accumulated losses are the opposite of retained profits and
when an entity is in an accumulated loss position, it is prohibited from distributing cash dividends to
shareholders. 137
Capital reserve
The distributable capital reserve comprises mainly gains arising from disposal of property, plant and
equipment and investments whereas the non-distributable capital reserve represents amount capitalised
for bonus issue from post-acquisition reserve of a subsidiary company.
Other reserve
Other reserve represents the difference between the adjusted carrying amount of the non-controlling
interests and the fair value of the consideration paid.
Revaluation reserve
Revaluation reserve represents net surplus arising from the revaluation of certain subsidiary companies’
freehold land, buildings and biological assets in 1976, 1982 and 1988 respectively. On transition to
MFRS, the Group opted for the cost model as its accounting policy for measurement of property, plant
and equipment, and treated the carrying values of the previously revalued properties at the date of
transition as deemed cost.
On subsequent sale or retirement of these revalued properties, the attributable surplus remaining in the
revaluation reserve will be transferred to distributable reserve.
[196001000393 (4060-V)]

27. Reserve (cont’d)
Fair value adjustment reserve
Fair value adjustment reserve represents the cumulative fair value changes, net of tax, of equity
instrument until they are disposed of or impaired.
Foreign currency translation reserve
The foreign currency translation reserve represents exchange differences arising from the translation of
the financial statements of foreign subsidiary companies whose functional currencies are different from
that of the Group’s presentation currency.
28. Loans and borrowings
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
RM RM RM RM
Annual Report 2020

Non-current
Secured:
138 Term loans
- Loan at COF + 1.10% 43,929,135 49,413,121 - -
- Loan at COF + 1.50% 2,937,500 5,750,000 - -

46,866,635 55,163,121 - -
Current

Secured:
Revolving credits
- RC at COF + 1.10% 19,800,000 16,500,000 11,500,000 14,000,000
- RC at COF + 1.20% 14,000,000 10,250,000 - -
- RC at COF + 1.125% 13,500,000 16,000,000 - -
- RC at COF + 1.50% - 9,500,000 - -

Term loans
- Loan at COF + 1.10% 10,338,153 11,500,008 - -
- Loan at COF + 1.50% 6,500,000 11,250,000 - -

Unsecured:
Revolving credits
- RC at COF + 1.50% 1,100,000 1,100,000 1,100,000 1,100,000

65,238,153 76,100,008 12,600,000 15,100,000
[196001000393 (4060-V)]

28. Loans and borrowings (cont’d)
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
RM RM RM RM

Total loans and borrowings

Secured:
Revolving credits 47,300,000 52,250,000 11,500,000 14,000,000
Term loans 63,704,788 77,913,129 - -

Unsecured:
Revolving credits 1,100,000 1,100,000 1,100,000 1,100,000

112,104,788 131,263,129 12,600,000 15,100,000

Maturity structure of
loans and borrowings
Annual Report 2020

Within one year 65,238,153 76,100,008 12,600,000 15,100,000
Between one to two years 11,691,313 17,250,008 - -
Between two to five years 22,765,663 24,354,113 - -
More than five years 12,409,659 13,559,000 - - 139

112,104,788 131,263,129 12,600,000 15,100,000
The loans and borrowings are secured by the followings:
(i) Loan at Cost of Finance (“COF”) + 1.10% p.a.
One of the loans is secured by legal charges over leasehold agricultural lands, specific debenture
over the land together with the fixture and fittings of a subsidiary company as disclosed in Note
15 to the financial statements, corporate guarantee given by the Company and Credit Guarantee
Corporation (M) Bhd (“CGC”) under the Green Technology Financing Scheme (“GTFS”). An
interest subsidy of 2% p.a. is granted to its subsidiary company under the GTFS.
Another loan is secured by legal charges over certain leasehold plantations, debentures
incorporating fixed and floating charges over all the assets of subsidiary companies presently
owned and subsequently acquired as disclosed in Note 15 to the financial statements and
corporate guarantees given by the subsidiary companies.
(ii) Loan at COF + 1.125% p.a.
This loan is secured by legal charges over certain leasehold plantations together with the plant
and machinery and oil mill of subsidiary companies, debentures incorporating fixed and floating
charges over all the assets of subsidiary companies presently owned and subsequently acquired
as disclosed in Note 15 to the financial statements and corporate guarantees given by the
subsidiary companies.
[196001000393 (4060-V)]

28. Loans and borrowings (cont’d)
(iii) Loan at COF + 1.50% p.a.
This loan is secured by legal charges over sub-divided land together with the power plant erected
thereon of subsidiary companies, debentures incorporating fixed and floating charges over all
the assets of the subsidiary companies as disclosed in Note 15 to the financial statements and
corporate guarantees given by a subsidiary company and short term deposits with a licensed
bank as further disclosed in Note 25 to the financial statements.
(iv) Revolving credit (“RC”) at COF + 1.10% p.a.
This revolving credit is secured by legal charges over freehold agricultural land of the Company
and leasehold lands of a subsidiary company and specific debenture over the land together with
the fixture and fittings as disclosed in Note 15 to the financial statements.
(v) RC at Islamic Cost of Fund (“ICOF”) + 1.20% p.a., COF + 1.125% p.a. and COF + 1.50% p.a.
This revolving credit is secured by legal charges over certain leasehold plantations together with
Annual Report 2020
the plant and machinery and palm oil mill of subsidiary companies, sub-divided land together with
the power plant erected thereon of a subsidiary company, debentures incorporating fixed and
floating charges over all the assets of subsidiary companies presently owned and subsequently
acquired as disclosed in Note 15 to the financial statements and corporate guarantees given by
140 the subsidiary companies and short term deposits with licensed bank as further disclosed in Note
25 to the financial statements.
29. Lease liabilities
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
RM RM RM RM

Current 1,228,830 1,143,304 9,599 23,641
Non-current 3,876,457 3,688,674 - 9,599
5,105,287 4,831,978 9,599 33,240

Maturity structure of lease
liabilities

Within one year 1,228,830 1,143,304 9,599 23,641
Between one to two years 1,053,876 880,736 - 9,599
Between two to five years 2,399,191 1,517,021 - -
More than five years 423,390 1,290,917 - -
5,105,287 4,831,978 9,599 33,240
The Group has lease contracts of land used in its operations as disclosed in Note 15 to the financial
statements. Leases of land has lease terms of average ten (10) to thirty (30) years. The average discount
rate implicit in the leases is 7.39% (2019: 7.39%) per annum.
[196001000393 (4060-V)]

29. Lease liabilities (cont’d)
The table below describes the nature of the Group’s leasing activities by type of right-of-use asset
recognised in the statement of financial position:
No. of No. of No. of No. of

right-of- Range of Average leases with leases with leases with
Right-of- use assets remaining remaining extension variable termination
use asset leased term lease term options payment option

Leasehold 10 5 – 23 years 9 years 5 - -
land
The leases of the Group and the Company are secured by a charge over the leased assets which consist
of plant and machinery and motor vehicles as disclosed in Note 15 to the financial statements. These
leases of the Group and the Company bear effective interest rate ranging from 4.36% to 7.12% and
7.04 (2019: 4.36% to 7.12% and 5.01 to 7.04%) per annum respectively.
There were no leases with residual value guarantee or leases which have yet to commence of which
Annual Report 2020

the Group and the Company have committed.
30. Trade and other payables

141
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
RM RM RM RM

Trade payables
Third parties 11,436,924 15,219,549 - -

Other payables
Accruals and deposits 7,087,256 9,236,643 340,503 495,710
Other payables
- Third parties 6,495,332 6,030,004 407,722 372,571
- Retention sum payable to
contractor 1,302,681 1,305,368 - -
- Amounts due to subsidiaries - - 1,047,337 852,870
Sales and service tax payables - 7,914 - 7,914

14,885,269 16,579,929 1,795,562 1,729,065

Total trade and other
payables 26,322,193 31,799,478 1,795,562 1,729,065
Trade payables are non-interest bearing and the normal credit terms granted to the Group and the
Company are 30 to 90 days (2019: 30 to 90 days).
Amounts due to subsidiaries are unsecured, interest free and repayable on demand.
[196001000393 (4060-V)]

31. Dividend
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
RM RM RM RM

Dividend on ordinary shares:
In respect of financial year

ended 31 December 2020

Interim single tier dividend of
1.50 sen per share 2,948,160 - 2,948,160 -
In respect of financial year

ended 31 December 2018

Final single tier dividend of
1.50 sen per share - 2,948,160 - 2,948,160
Annual Report 2020
32. Significant related party transactions
142 (a) Identities of related parties
Parties are considered to be related to the Group and the Company if the Group and the Company
have the ability, directly or indirectly, to control the party or exercise significant influence over
the party in making financial and operating decisions, or vice versa, or where the Group or the
Company and the party are subject to common control or common significant influence. Related
parties could be individuals or other entities.
(b) Related parties’ transactions
The aggregate value of transactions of the related parties of the Group and the Company were
as follows:
Transaction value
Type of 31.12.2020 31.12.2019
Name of related parties transaction RM RM

With company which
have common Directors
with the Company and
and in which certain
Directors of the Company
have financial interests:

Behrang 2020 Sdn. Bhd. Rental of premises (48,400) (48,000)

With substantial shareholder:

Datin Seri Ooi Ah Thin Rental of premises (42,000) (42,000)
[196001000393 (4060-V)]

32. Significant related party transactions (cont’d)
(b) Related parties’ transactions (cont’d)
The aggregate value of transactions of the related parties of the Group and the Company were
as follows: (cont’d)
Transaction value
Type of 31.12.2020 31.12.2019
Name of related parties transaction RM RM

With subsidiary
companies:

Anson Oil Industries Sales of fresh
Sdn. Bhd. fruit bunches 2,993,949 2,883,506
Purchase of
bio fertilisers (12,683) (52,549)
Rental income
Annual Report 2020

of equipment 5,022 4,213
Rental expenses
of equipment (43,574) (47,689)

Champion Point Sdn. Bhd. Rental income 143
Rental expenses
of equipment (5,760) (4,500)

Hutan Melintang Plantations Rental income
Sdn. Berhad of equipment 1,089 4,335
Majuperak Plantation Advances made (720,000) (600,000)

Sdn. Bhd. Interest on
advances received 37,657 27,693
Rental income
Rental expenses
of equipment - (1,958)

Sharikat Muzwin Bersaudara Rental income
Sdn. Bhd. of equipment 7,502 3,444

Yew Lee Holdings Rental income
Sdn. Berhad of equipment - 1,925
Rental expenses
of equipment (18,495) (12,713)

Mah Hock Company Advances made 1,314,754 -
Sendirian Berhad Interest on
advances received 13,262 -

[196001000393 (4060-V)]

32. Significant related party transactions (cont’d)
(c) Compensation of key management personnel
The remuneration of the key management personnel other than the Directors of the Group and
of the Company are as follows:
Group Company
2020 2019 2020 2019
RM RM RM RM

Short-term
employee benefits 1,769,240 1,649,314 187,470 225,335
Contributions to defined
contribution plan 190,718 175,634 23,104 27,192

1,959,958 1,824,948 210,574 252,527

Annual Report 2020
Key management personnel are defined as those persons having authority and responsibility for
planning, directing and controlling the activities of the Group and of the Company either directly
or indirectly, including any Director of the Group and of the Company.
144 The terms and conditions and prices of the above transactions are mutually agreed between the parties.
33. Capital commitments
Group
Restated
31.12.2020 31.12.2019
RM RM

Capital expenditure commitments
Approved and contracted for:

- Property, plant and equipment 3,233,822 4,523,058
[196001000393 (4060-V)]

34. Financial instruments
(a) Categories of financial instruments
Group Company
Restated
31.12.2020 31.12.2019 31.12.2020 31.12.2019
Financial assests RM RM RM RM

Measured at amortised
cost

Trade and other
receivables 19,647,736 16,857,401 3,185,077 1,133,403
Cash and bank balances 32,606,598 20,764,536 959,148 1,217,889
Measured at FVOCI
Investments in securities 338,426 394,505 204,917 235,557

Annual Report 2020

Measured at fair value
through profit or loss
Short-term investments 17,573,020 16,319,942 13,453 12,174
70,165,780 54,336,384 4,362,595 2,599,023 145

Finance liabilities

Measured at amortised
cost
Trade and other payables 26,322,193 31,791,564 1,795,562 1,721,151
Loans and borrowings 112,104,788 131,263,129 12,600,000 15,100,000
Lease liabilities 5,105,287 4,831,978 9,599 33,240
143,532,268 167,886,671 14,405,161 16,854,391

A reconciliation of trade and other receivables in financial assets to the amounts reflected in the
statements of financial position is as follows:
Group Company
Restated
31.12.2020 31.12.2019 31.12.2020 31.12.2019
Financial assests RM RM RM RM
As reflected in the
statements of financial
position (Note 23) 23,025,573 20,124,563 3,260,540 1,234,291
Less: Prepayments and
deposits (3,225,921) (2,925,319) (75,463) (100,888)
GST receivables (151,916) (341,843) - -

19,647,736 16,857,401 3,185,077 1,133,403
[196001000393 (4060-V)]

34. Financial instruments (cont’d)
(a) Categories of financial instruments (cont’d)
A reconciliation of trade and other payables in financial assets to the amounts reflected in the
statements of financial position is as follows:
Group Company
31.12.2020 31.12.2019 31.12.2020 31.12.2019
Trade and other RM RM RM RM
payables

As reflected in the
statements of financial
position (Note 30) 26,322,193 31,799,478 1,795,562 1,729,065
Less: Sales and service
tax payable - (7,914) - (7,914)

26,322,193 31,791,564 1,795,562 1,721,151
Annual Report 2020
(b) Financial risk management
The Group and the Company are exposed to financial risks arising from their operations and the
146 use of financial instruments. The key financial risks include credit risk, liquidity risk, interest rate
risk, and foreign currency risk.
The Board of Directors reviews and agrees on policies and procedures for the management
of these risks, which are executed by Executive Committee. The audit committee provides
independent oversight to the effectiveness of the risk management process.
The following sections provide details regarding the Group’s and the Company’s exposure to the
above-mentioned financial risks and the objectives, policies and processes for the management
of these risks.
(i) Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments should
a counterparty defaults on its obligations. The Group’s and the Company’s exposure to
credit risk arises primarily from trade and other receivables. For other financial assets
(including short-term investments and cash and bank balances), the Group and the
Company minimise credit risk by dealing exclusively with high credit rating counterparties.
The Group’s and the Company’s objective are to seek continual revenue growth while
minimising losses incurred due to increased credit risk exposure. The Group trades only
with recognised and creditworthy third parties.
It is the Group’s and the Company’s policy that all customers who wish to trade on credit
terms are subject to credit verification procedures. In addition, receivable balances are
monitored on an ongoing basis with the result that the Group’s exposure to bad debts is
not significant.
As at the reporting date, the Group’s and the Company’s maximum exposure to credit risk
is represented by the carrying amount of each class of financial assets recognised in the
statements of financial position.
[196001000393 (4060-V)]

(b) Financial risk management (cont’d)
(i) Credit risk (cont’d)
Trade receivables
Customer credit risk is managed by each business unit subject to the Group’s established
policy, procedures and control relating to customer credit risk management. Credit quality
of a customer is assessed based on an extensive credit rating scorecard and individual credit
limits are defined in accordance with this assessment. Outstanding customer receivables
are regularly monitored.
At each reporting date, the Group and the Company assess whether any of the trade
receivables are credit impaired.
The gross carrying amounts of credit impaired trade receivables are written off (either
partially or full) when there is no realistic prospect of recovery. This is generally the case
Annual Report 2020

when the Group and the Company determine that the debtor does not have assets or
sources of income that could generate sufficient cash flows to repay amounts subject to
the write-off. Nevertheless, trade receivables and contract asset that are written off could
still be subject to enforcement activities.
147
As at the end of the reporting period, the maximum exposure to credit risk arising from
trade receivables is represented by the carrying amounts in the statements of financial
position. The Group and the Company do not hold collateral as security.
The ageing analysis of the Group’s and the Company’s trade receivables as at the reporting
date is as follows:
Group Gross Expected Carrying

amount credit losses value
31.12.2020 RM RM RM

Not past due 14,363,875 - 14,363,875

Past due:
- less than 30 days 465,754 (22) 465,732
- between 31 to 60 days 9,892 - 9,892
- between 61 to 90 days 21,199 (3,116) 18,083
- more than 90 days 344,613 (275,185) 69,428

841,458 (278,323) 563,135

15,205,333 (278,323) 14,927,010
[196001000393 (4060-V)]

Trade receivables (cont’d)
The ageing analysis of the Group’s and the Company’s trade receivables as at the reporting
date is as follows: (cont’d)
Group
Gross Expected Carrying
Restated amount credit losses value
31.12.2019 RM RM RM

Not past due 14,871,196 (318) 14,870,878

Past due:
- less than 30 days 32,484 (727) 31,757
- between 31 to 60 days 25,759 (931) 24,828
Annual Report 2020
- between 61 to 90 days 22,204 (1,462) 20,742

- more than 90 days 333,880 (321,704) 12,176

414,327 (324,824) 89,503
148
15,285,523 (325,142) 14,960,381
Company Gross Expected Carrying

amount credit losses value
31.12.2020 RM RM RM

Not past due 370,203 - 370,203

31.12.2019

Not past due 294,313 - 294,313
Impairment for trade receivables is measured at an amount equal to lifetime excepted credit
loss. The expected credit losses on trade receivables includes both individual impairment for
those that show objective evidence of impairment (stage 3 loss) and collective impairment
(stage 2 loss). Collective impairment has been provided using the provisional matrix based
on historical loss experience of the respective entities in the Group with reference to past
due status of the debtor, as follows:
Expected credit loss rates

2020 2019

Not past due 0% 0%
Past due:
- between 31 to 60 days 0% 5%
- more than 121 days 94% – 100% 6% – 100%
[196001000393 (4060-V)]

Trade receivables (cont’d)
The expected credit loss rates are based on the historical loss rates experienced by each
entity in the Group as adjusted for forward looking element as necessary.
There was no material expected credit loss for the Company’s trade receivables as of the
financial year end.
As at the reporting date, the Group and the Company have significant concentration
of credit risk in the form of outstanding balance due from 6 and 2 (2019: 5 and 2)
major customers representing 64% and 100% (2019: 69% and 87%) of the total trade
receivables respectively.
Other receivables
Annual Report 2020

For other receivables, a lifetime expected credit loss is assessed for those counterparties
that show significant increase in credit risk as at the end of the reporting period, and
impairment made based on objective evidence of impairment.
149
Inter-company advances
The Company provides advances to subsidiaries. The Company monitors the ability of
the subsidiaries to repay the advances on an individual basis and considers advances to
subsidiaries to have low credit risks.
The Company determines the probability of default for these advances individually using
internal information available.
As at the end of the reporting period, the maximum exposure to credit risk is represented
by their carrying amounts in the statement of financial position. Advances provided are
not secured by any collateral or supported by any other credit enhancements.
Cash and cash equivalents
The cash and cash equivalents are held with banks and financial institutions. As at the
end of the reporting period, the maximum exposure to credit risk is represented by their
carrying amounts in the statements of financial position.
These banks and financial institutions have low credit risks. Consequently, the Group and
the Company are of the view that loss allowance is not material and hence, it is not
provided for.

(ii) Liquidity risk
Liquidity risk is the risk that the Group and the Company will encounter difficulty in
meeting financial obligations due to shortage of funds. The Group’s and the Company’s
exposure to liquidity risk arises primarily from mismatches of the maturities of financial
assets and liabilities. The Group’s and the Company’s objective is to maintain a balance
between continuity of funding and flexibility through the use of stand-by credit facilities.
[196001000393 (4060-V)]

(ii) Liquidity risk (cont’d)
As part of its overall liquidity management, the Group maintains sufficient levels of cash
or cash convertible investments to meet its working capital requirements. In addition, the
Group strives to maintain available banking facilities at a reasonable level to its overall debt
position. As far as possible, the Group raises committed funding from financial institutions
and balances its portfolio with some short term funding so as to achieve overall cost
effectiveness.
The following table sets out the maturity profile of the Group’s and the Company’s
financial liabilities as at the end of the reporting period based on contractual undiscounted
cash flows (including interest payments computed using contractual rates or, if floating,
based on the rates at the end of the reporting period):
Group Contractual Within One (1) to Over

Annual Report 2020
Carrying undiscounted One (1) Five (5) Five (5)

amount cashflows year years years
31.12.2020 RM RM RM RM RM

Financial
150 liabilities

Trade and other
payables 26,322,193 26,322,193 26,322,193 - -
Loans and
borrowings 112,104,788 118,713,844 68,150,008 33,563,836 17,000,000
Lease liabilities 5,105,287 6,389,541 1,475,591 3,587,910 1,335,040
143,532,268 151,425,578 95,947,792 37,151,746 18,335,040
31.12.2019

Financial liabilities

Trade and other
payables 31,791,564 31,791,564 31,791,564 - -
Loans and
borrowings 131,263,129 144,169,499 80,212,012 49,212,335 14,745,152
Lease liabilities 4,831,978 6,128,685 1,373,795 2,892,097 1,862,793

167,886,671 182,089,748 113,377,371 52,104,432 16,607,945
[196001000393 (4060-V)]

(ii) Liquidity risk (cont’d)
The following table sets out the maturity profile of the Group’s and the Company’s
financial liabilities as at the end of the reporting period based on contractual undiscounted
cash flows (including interest payments computed using contractual rates or, if floating,
based on the rates at the end of the reporting period): (cont’d)
Company Contractual Within One (1) to Over

Carrying undiscounted One (1) Five (5) Five (5)
amount cashflows year years years
31.12.2020 RM RM RM RM RM

Financial
liabilities

Trade and other
Annual Report 2020

payables 1,795,562 1,795,562 1,795,562 - -
Loans and
borrowings 12,600,000 12,600,000 12,600,000 - -
Lease liabilities 9,599 9,752 9,752 - -

151
14,405,161 14,405,314 14,405,314 - -

31.12.2019

Financial liabilities

Trade and other
payables 1,729,065 1,729,065 1,729,065 - -
Loans and
borrowings 15,100,000 15,100,000 15,100,000 - -
Lease liabilities 33,240 34,806 25,054 9,752 -

16,862,305 16,863,871 16,854,119 9,752 -
(iii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market interest rates.
The Group’s and the Company’s exposure to interest rate risk arises mainly from their
loans and borrowings. Most of the Group’s and the Company’s loans and borrowings
are charged a fixed interest rate plus the financial institutions’ cost of fund per annum.
The fixed interest rate is reviewed annually. Whilst, the cost of fund used by the financial
institutions vary according to the rates set by the respective financial institutions.
Meanwhile, interest rates charged on finance leases are fixed at the inception of the
finance lease arrangements. The investments in financial assets are mainly short term in
nature and have been mostly placed in fixed deposits and short-term investments.
The Group’s policy is to manage interest cost using a mix of fixed and floating rate debts.
[196001000393 (4060-V)]

(iii) Interest rate risk (cont’d)
The following table details the sensitivity analysis to a reasonably possible change in
the interest rates as at the end of the reporting period, with all other variables held
constant:
Group Company
(Decrease)/Increase (Decrease)/Increase
Effects on profit 2020 2019 2020 2019
after taxation RM RM RM RM

Increase of 50bp (113,438) (68,966) (15,120) (9,060)
(2019: 25bp)
Decrease of 50bp 113,438 68,966 15,120 9,060
(2019: 25bp)
Annual Report 2020
(iv) Foreign currency risk
152 Foreign currency risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of change in foreign exchange rate.
The Group holds cash and bank balances denominated in foreign currencies for working
capital purposes. As at the reporting date, such foreign currency balances (mainly in AUD,
USD and SGD) amounted to RM3,726,972 (2019: RM4,277,080).
The following table demonstrates the sensitivity of the Group’s profit before tax to a
reasonably possible change in the AUD, USD and SGD exchange rates against the respective
functional currencies of the Group entities, with all other variables held constant:
Group
(Decrease)/Increase
in profit before tax
2020 2019
RM RM

AUD/RM
- strengthened 5% (2019: 5%) (97,691) (118,076)
- weakened 5% (2019: 5%) 97,691 118,076

USD/RM
- strengthened 5% (2019: 5%) (26,006) (26,527)
- weakened 5% (2019: 5%) 26,006 26,527

SGD/RM
- strengthened 5% (2019: 5%) (17,929) (17,926)
- weakened 5% (2019: 5%) 17,929 17,926
[196001000393 (4060-V)]

35. Fair value information
The financial assets and financial liabilities maturing within the next twelve (12) months approximated
their fair values due to the relatively short-term maturity of the financial instruments.
The carrying amount of the variable rate term loans approximated their fair value as the loans will be
re-priced to market interest rate on or near reporting date.
The fair value of quoted shares is determined directly by quoted bid prices in an active market at
reporting date.
The fair value of unquoted shares is determined by reference to a selling price agreement and adjusted
net tangible asset.
The fair value of investments in short-term instruments are based on daily price quotes by the funds.
As at the reporting date, the Group and the Company held the following at fair value in the statement
of financial position:
Annual Report 2020

Group Carrying
amount Level 1 Level 2 Level 3
31.12.2020 Note RM RM RM RM

Assets measured 153
at fair value

Investment properties 16
- Freehold
- Land 43,340,000 - - 43,340,000
- Semi-Detached
factory 673,826 - - 673,826
- Shophouse 1,250,000 - - 1,250,000
Investments in securities 18
(quoted in Malaysia) 167,779 167,779 - -
(unquoted in Malaysia) 170,648 - - 170,648
Biological assets 22 3,264,016 - - 3,264,016
Short-term investments 24 17,573,020 17,573,020 - -

66,439,289 17,740,799 - 48,698,490
[196001000393 (4060-V)]

35. Fair value information (cont’d)
of financial position: (cont’d)
Group Carrying

Assets measured
at fair value

- Freehold
- Land 48,000,000 - - 48,000,000
- Semi-Detached
factory 673,826 - - 673,826
- Shophouse 1,250,000 - - 1,250,000
Annual Report 2020
154 Biological assets 22 2,737,438 - - 2,737,438
Short-term investments 24 16,319,942 16,319,942 - -

69,375,711 16,516,647 - 52,859,064
Company Carrying

Assets measured
at fair value

- Freehold shophouse 1,250,000 - - 1,250,000
Biological assets 22 311,886 - - 311,886
Short-term investments 24 13,453 13,453 - -

1,780,256 168,370 - 1,611,886
[196001000393 (4060-V)]

35. Fair value information (cont’d)
of financial position: (cont’d)
Company Carrying

Assets measured
at fair value

- Freehold shophouse 1,250,000 - - 1,250,000
Annual Report 2020

Biological assets 22 213,058 - - 213,058
Short-term investments 24 12,174 12,174 - -

1,710,789 197,731 - 1,513,058
155

There have been no transfers between the levels during the current and previous financial years.
36. Capital management
The primary objective of the Group’s and of the Company’s capital management is to ensure that
they maintain a strong credit rating and healthy capital ratios in order to support their businesses and
maximise shareholders’ value.
The Group and the Company manage their capital structure, and make adjustment to it, in the light
of changes in economic conditions. To maintain or adjust the capital structure, the Group and the
Company may adjust dividend payment to shareholders, return capital to shareholders or issue new
shares. The Group’s strategies were unchanged from the previous financial year.
The Group and the Company monitor capital using gearing ratio. The gearing ratio is calculated as
net debt divided by total equity. Net debt is calculated as borrowings plus payables less cash and bank
balances and short-term investments.
[196001000393 (4060-V)]

36. Capital management (cont’d)
The gearing ratio of the Group and the Company as at the end of the reporting period was as follows:
Group Company
Restated
2020 2019 2020 2019
RM RM RM RM

Loans and borrowings 112,104,788 131,263,129 12,600,000 15,100,000
Lease liabilities 5,105,287 4,831,978 9,599 33,240
Trade and other payables 26,322,193 31,799,478 1,795,562 1,729,065
Less: Cash and bank
balances (32,606,598) (20,764,536) (959,148) (1,217,889)
Short-term investments (17,573,020) (16,319,942) (13,453) (12,174)

Net debt 93,352,650 130,810,107 13,432,560 15,632,242
Total equity 504,433,648 489,139,971 213,195,893 208,429,327

Annual Report 2020

Gearing ratio 19% 27% 6% 7%

156 The Group maintains a gearing ratio that complies with the applicable debt covenant as at the reporting
date. The Group is not subject to any other externally imposed capital requirements.
37. Segment information
(i) Operating segment
For management purposes, the Group is organised into business units based on its products and
services, and has three (3) reportable operating segments as follows:
Plantation Cultivation of oil palm

Mill Milling and sale of oil palm products
Power plant Power generation and sale of biomass by-products
All other segments Extraction and sale of earth stone, operation of a hotel and others
Management monitors the operating results of its business units separately for the purpose of
making decisions about resource allocation and performance assessment. Segment performance
is evaluated based on operating profit or loss which, in certain respects as explained in the table
below, is measured differently from operating profit or loss in the consolidated statement of
profit or loss and other comprehensive income. Group financing (including finance costs) and
income taxes are managed on a group basis and are not allocated to operating segments.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to
transactions with third parties.
37. Segment information (cont’d)
(i) Operating segment (cont’d)

31.12.2020 Per
Total Adjustments consolidated
All other reported and financial
Plantation Oil mill Power plant segments segments eliminations Note statements
Revenue RM RM RM RM RM RM RM

External customers 32,280,965 274,921,732 45,705,777 1,830,060 354,738,534 - 354,738,534
Inter-segment 38,297,922 - - 352,940 38,650,862 (38,650,862) (a) -

[196001000393 (4060-V)]
Total revenue 70,578,887 274,921,732 45,705,777 2,183,000 393,389,396 (38,650,862) 354,738,534

Results

Interest income 469,279 2,738,323 119,769 4,385,126 7,712,497 (7,090,996) 621,501
Finance costs 1,018,827 1,374,494 6,219,488 3,927,131 12,539,940 (7,730,629) 4,809,311
Depreciation of
property, plant
and equipment 7,325,235 7,067,488 10,219,870 642,058 25,254,651 4,725,964 29,980,615
Segment profit 20,376,592 10,683,393 15,848,734 218,103 47,126,822 (15,928,120) (b) 31,198,702
157
Annual Report 2020

158
Annual Report 2020

31.12.2019 Per
Total Adjustments consolidated
All other reported and financial
Plantation Oil mill Power plant segments segments eliminations Note statements
Revenue RM RM RM RM RM RM RM

External customers 16,135,718 252,948,029 36,678,396 2,240,664 308,002,807 - 308,002,807
Inter-segment 40,688,790 - - 9,782,830 50,471,620 (50,471,620) (a) -

[196001000393 (4060-V)]
Total revenue 56,824,508 252,948,029 36,678,396 12,023,494 358,474,427 (50,471,620) 308,002,807

Results

Interest income 571,693 2,905,351 105,503 4,862,384 8,444,931 (7,685,938) 758,993
Finance costs 1,576,544 2,007,562 7,480,000 3,830,000 14,894,106 (7,846,869) 7,047,237
Depreciation of
property, plant
and equipment 7,988,458 5,803,752 9,835,533 1,019,192 24,646,935 4,852,419 29,499,354
Segment profit 5,686,088 11,126,854 8,809,958 3,231,286 28,854,186 (19,454,050) (b) 9,400,136
[196001000393 (4060-V)]

(a) Inter-segment revenue are eliminated on consolidation. This is represented mainly by sale
of fresh fruit bunches by plantation segment to mill segment and sale of earth and stones
by quarry segment (included in All other segments) to plantation and mill segments.
(b) The profit from inter-segment sales is deducted from segment profit to arrive at
“Profit before tax” presented in the consolidated statement of profit or loss and other
comprehensive income.

(ii) Geographical information
No geographical information has been provided as the Group activities are predominantly
conducted in Malaysia.
(iii) Major customers
Revenue from 4 (2019: 4) major customers amounted to RM223,946,915 (63% of revenue)
Annual Report 2020

(2019: RM208,128,209 (68% of revenue)) arising from mill segment.
38. Significant and subsequent events

159
The emergence and spread of the coronavirus (COVID-19) in early 2020 has affected businesses and
economic activities in Malaysia and beyond. The Group has not been adversely affected as at the
date of this report. No adjustments are required to the financial position and operating results for the
current financial year. The Group shall continue to monitor the developments of the COVID-19 situation
closely, assess and react actively to its impacts on the financial position and operating results of the
Group for the financial year ending 31 December 2021. This includes continuous special attention to
be given towards ensuring all standard operating procedures set by the Government are complied with
to minimise the risk of COVID-19 occurrences and addressing the acute labour shortages, which may
impact the operations of the Group negatively.
39. Prior year adjustments
During the current financial year, the Group has undertaken a detailed reassessment of facts and
information with regards to the Renewable Energy Power Purchase Agreements (“REPPAs”) entered
into by its subsidiaries, Cash Horse (M) Sdn. Bhd. (“CHSB”) and Mistral Engineering Sdn. Bhd. (“MESB”)
with Sabah Electricity Sdn. Bhd. (“SESB”) for their biomass and biogas power plants respectively.
Based on the above reassessment of the terms and conditions of the REPPAs and recoverability of the
biomass and biogas power plants at the end of the term of the REPPAs, the Group has determined
that the residual interests in the infrastructures at the end of the terms of the arrangements are
significant and in which SESB has no control over. Consequently, the Group restated the biomass and
biogas power plants initially recognised under IC 12 Service Concession Agreements (“IC 12”) under
financial assets to plant and equipment under MFRS 116 Property, Plant and Equipment (“MFRS 116”)
as required conditions pursuant to IC 12 are not met.
The above restatement has been effected retrospectively. This involved reclassification of service
concession receivables to plant and equipment and adjustment for the recomputed depreciation to
date, net of the resulting deferred taxation impact.
[196001000393 (4060-V)]

39. Prior year adjustments (cont’d)
The table below shows the impact of changes to the statement of profit or loss and other comprehensive
income and statement of financial position of the Group resulting from the change in accounting
policies of the biomass and biogas power plants of the Group from IC 12 to MFRS 116:
Statement of profit or loss and other comprehensive income
As previously
reported Restated
2019 Adjustment 2019
Group RM RM RM

Revenue 301,367,796 6,635,011 308,002,807
Cost of sales (276,224,097) (5,388,079) (281,612,176)
Other income 12,051,156 (7,343,897) 4,707,259
Other operating expenses (7,082,603) 5,485,846 (1,596,757)
Income tax expense (5,808,950) 83,952 (5,724,998)
Annual Report 2020
Profit for the financial year 3,940,985 (265,847) 3,675,138

160 for the financial year 3,861,159 (265,847) 3,595,312


Owners of the Company 2,508,891 (8,243) 2,500,648
Non-controlling interests 1,432,094 (257,604) 1,174,490

attributable to:

Owners of the Company 2,461,357 (8,243) 2,453,114
Non-controlling interests 1,399,802 (257,604) 1,142,198

Earnings per share
attributable to owners of
the Company (sen per share)

Basic 1.28 (0.01) 1.27
(forward)
[196001000393 (4060-V)]

(continued)
Statement of financial position
As previously
reported Restated
31.12.2019 Adjustment 31.12.2019
Group RM RM RM

Non-current assets
Property, plant and
equipment 404,148,619 113,901,127 518,049,746
Deferred tax assets 4,623,487 2,936,307 7,559,794
Trade and other receivables 134,848,846 (134,848,846) -

Current assets
Annual Report 2020

Trade and other receivables 29,509,197 (9,384,634) 20,124,563

Deferred tax liabilities 53,000,176 (4,343,461) 48,656,715
161
owners of the Company
Reserve 50,850,433 (7,489,575) 43,360,858
Non-controlling interests 264,798,153 (15,563,010) 249,235,143
Statement of financial position
As previously
reported Restated
31.12.2018 Adjustment 1.1.2019
Group RM RM RM

Non-current assets
Property, plant and
equipment 397,058,286 119,289,206 516,347,492
Deferred tax assets 3,031,476 2,735,778 5,767,254
Trade and other receivables 140,835,609 (140,835,609) -

Current assets
Trade and other receivables 24,988,542 (8,436,151) 16,552,391

Deferred tax liabilities 49,168,856 (4,460,038) 44,708,818

owners of the Company
Reserve 51,503,135 (7,481,332) 44,021,803
Non-controlling interests 266,956,202 (15,305,406) 251,650,796
[196001000393 (4060-V)]

Statement of cash flows
As previously
reported Restated
2019 Adjustment 2019
Group RM RM RM

Profit before tax 9,749,935 (349,799) 9,400,136
plant and equipment 20,899,232 8,600,122 29,499,354
Interest income (8,102,890) 7,343,897 (758,993)
Operating profit before

working capital changes 28,035,592 15,594,220 43,629,812
Change in receivables 9,525,831 (12,382,177) (2,856,346)
Annual Report 2020
Cash from operations 44,522,102 3,212,043 47,734,145

Net cash from operating
activities 37,230,922 3,212,043 40,442,965
162 Acquisition of property, plant
and equipment (23,729,043) (3,212,043) (26,941,086)
Net cash used in investing

activities (26,033,420) (3,212,043) (29,245,463)
[196001000393 (4060-V)]
Statement of Shareholdings
as at 31 March 2021
Total Number of Issued Shares : RM196,543,970.00

Class of Shares : Ordinary Shares
Voting Rights : One vote per ordinary share
DISTRIBUTION OF SHAREHOLDINGS
No. of % of No. of % of
Range of Shareholdings Holders Holders Shares Issued Capital

Less than 100 494 12.11 21,637 0.01
100 - 1,000 248 6.08 126,371 0.06
1,001 - 10,000 2,012 49.33 10,230,995 5.21
10,001 - 100,000 1,172 28.73 33,609,662 17.10
100,001 - 9,827,197(*) 152 3.73 63,367,281 32.24
9,827,198 and above (**) 1 0.02 89,188,024 45.38
TOTAL 4,079 100.00 196,543,970 100.00
Note: * - Less than 5% of issued holdings
Annual Report 2020

** - 5% and above of issued holdings
TOP THIRTY HOLDERS AS AT 31 MARCH 2021

163
% of Issued
Name of Holders Holdings Capital

1 DATO MAH POOI SOO REALTY SDN BHD 89,188,024 45.38
2 REG BOARD OF T’TEES OF DATO MAH POOI SOO BENEVOLENT FUND 6,995,666 3.56
3 JUWITAWAN SDN BHD 5,441,738 2.77
4 TOH EAN HAI 3,050,000 1.55
5 JUWITAWAN SDN BHD 2,854,600 1.45
6 AFFIN HWANG NOMINEES (TEMPATAN) SDN. BHD. 1,907,600 0.97
PLEDGED SECURITIES ACCOUNT FOR TEE KIM TEE @ TEE CHING TEE
7 OOI AH THIN 1,905,888 0.97
8 SYARIKAT MAJUPERAK BERHAD 1,653,866 0.84
9 NGOI EVA 1,211,400 0.62
10 HLIB NOMINEES (TEMPATAN) SDN BHD 1,152,500 0.59
PLEDGED SECURITIES ACCOUNT FOR YAP QWEE BENG
11 KENANGA NOMINEES (TEMPATAN) SDN BHD 1,149,832 0.59
PLEDGED SECURITIES ACCOUNT FOR CHIN KIAM HSUNG
12 SEE SO KIM HUAT 1,093,000 0.56
13 LIM CHENG HAI 1,040,000 0.53
14 MENJELANG CITARASA SDN. BHD. 1,000,000 0.51
15 ALLIANCEGROUP NOMINEES (TEMPATAN) SDN BHD 985,000 0.50
PLEDGED SECURITIES ACCOUNT FOR CHONG YIEW ON
16 LEE CHOO SEONG @ LEE CHO SENG 714,269 0.36
17 LEONG LAI NGAN 705,186 0.36
[196001000393 (4060-V)]
as at 31 March 2021 (cont’d)
TOP THIRTY HOLDERS AS AT 31 MARCH 2021

% of Issued
Name of Holders Holdings Capital
18 LIM JIT HAI 654,206 0.33

19 AFFIN HWANG NOMINEES (TEMPATAN) SDN. BHD. 617,600 0.31
PLEDGED SECURITIES ACCOUNT FOR TEE KIM TEE @ TEE CHING TEE
20 LEONG SIEW MUN 608,500 0.31
21 TAN LAI KIM (HOLDINGS) SDN BHD 600,000 0.31
22 TLK CAPITAL SDN. BHD. 600,000 0.31
23 HO LONG MIAU 531,400 0.27
24 YEOH KIM LENG 513,800 0.26
25 RHB NOMINEES (TEMPATAN) SDN BHD 513,200 0.26
PLEDGED SECURITIES ACCOUNT FOR WONG CHEE BOON
26 GAN KENG WAH 500,000 0.25
Annual Report 2020
27 LIM MIAU CHIN 492,200 0.25

28 CIMSEC NOMINEES (TEMPATAN) SDN BHD 466,666 0.24
CIMB FOR TAN HENG CHEW
29 HLIB NOMINEES (TEMPATAN) SDN BHD 420,000 0.21
164 HONG LEONG BANK BHD FOR TEE HOI GUAN
30 CHENG GEK HONG 409,032 0.21

SUBSTANTIAL SHAREHOLDERS AS AT 31 MARCH 2021
According to the Register of Substantial Shareholders required to be kept under Section 144 of the Companies
Act, 2016, the following are the substantial shareholders of the Company:
Direct Deemed Total

Name of Interest Interest Interest
Substantial Shareholders (A) % (B) % (A+B) %

Dato Mah Pooi Soo Realty
Sdn Bhd 89,188,024 45.38 - - 89,188,024 45.38
Dato’ Seri Mah King Seng 338,948 0.17 90,189,024 * 45.89 90,527,972 46.06
Tan Sri Dr. Mah King Thian 93,248 0.05 90,188,024 ** 45.89 90,281,272 45.94
Datin Seri Ooi Ah Thin 1,905,888 0.97 90,620,220 *** 46.11 92,526,108 47.08
Notes:-
* Deemed interest by virtue of his shareholdings in Dato Mah Pooi Soo Realty Sdn Bhd, Menjelang Citarasa Sdn Bhd
and his daughter, Mah Li-Na.
** Deemed interest by virtue of his shareholdings in Dato Mah Pooi Soo Realty Sdn Bhd and Menjelang Citarasa Sdn
Bhd.
*** Deemed interest by virtue of the shareholdings of her children, namely Dato’ Seri Mah King Seng and Tan Sri Dr Mah
King Thian in MHC and her shareholdings in Dato Mah Pooi Soo Realty Sdn Bhd and Menjelang Citarasa Sdn Bhd.
[196001000393 (4060-V)]
as at 31 March 2021 (cont’d)
DIRECTORS’ INTEREST AS AT 31 MARCH 2021
According to the Register of Directors’ Shareholdings required to be kept under Section 59 of the Companies
Act, 2016 the Directors’ interests in the ordinary share capital of the Company and its subsidiary companies
are as follows:
MHC PLANTATIONS BHD
Direct Deemed Total

Interest Interest Interest
Name of Directors (A) % (B) % (A+B) %

Dato’ Seri Mah King Seng 338,948 0.17 90,189,024 * 45.89 90,527,972 46.06
Tan Sri Dr. Mah King Thian 93,248 0.05 90,188,024 ** 45.89 90,281,272 45.94
Chan Kam Leong 234,800 0.12 708,294 *** 0.36 943,094 0.48
Wan Salmah Binti
Annual Report 2020

Wan Abdullah - - - - - -
Heng Beng Fatt - - - - - -
Mah Li-Na
165
(Alternate Director to
Dato’ Seri Mah King Seng) 1,000 0.00 - - 1,000 0.00
Dr. Jordina Mah Siu Yi

(Alternate Director to
Tan Sri Dr. Mah King Thian) - - - - - -
Notes:-
* Deemed interest by virtue of his shareholdings in Dato Mah Pooi Soo Realty Sdn Bhd, Menjelang Citarasa Sdn Bhd
and his daughter, Mah Li-Na.
** Deemed interest by virtue of his shareholdings in Dato Mah Pooi Soo Realty Sdn Bhd and Menjelang Citarasa Sdn
Bhd.
*** Deemed interest through his spouse.
This page is
intentionally left blank
[196001000393 (4060-V)]
No. of Shares Held

Form of Proxy
CDS Account No.
Telephone No.
I/We, NRIC No./Company No.

(Name of Shareholder as per NRIC)
of
(Full Address)
being a member of MHC Plantations Bhd hereby appoint the following person(s):

Name of Proxy & NRIC No. Email Address No. of Shares Percentage %
Proxy 1
Proxy 2
Total
or failing him/her, the Chairman of the Meeting as my/our proxy, to vote for me/us and on my/our behalf at the Sixty-
First (61st) Annual General Meeting (“AGM”) of the Company to be held on Monday, 31 May 2021 at 11.30 a.m.
and at any adjournment thereof in the manner indicated below in respect of the following Resolutions:

Ordinary Business Resolution For Against
Approval for the payment of Directors’ benefits 1
Re-election of Puan Wan Salmah Binti Wan Abdullah 2
Re-election of Mr. Heng Beng Fatt 3
Re-appointment of Messrs PKF as Auditors of the Company and to 4
authorise the Directors to fix their remuneration
Special Business
Approval for the continuation in office of Mr. Chan Kam Leong as 5
an Independent Non-Executive Director
Approval for the continuation in office of Puan Wan Salmah Binti 6
Wan Abdullah as an Independent Non-Executive Director
Authority under Section 76 of the Companies Act, 2016 for the 7
Directors to allot and issue shares.
Please indicate with (3) or (7) how you wish your vote to be cast. If you do not indicate how you wish your proxy to vote on any
resolution, the proxy shall vote as he thinks fit, or at his discretion, abstain from voting.
Date:
Signature of Shareholder
NOTES:
1. Only members whose names appear on the Record of Depositors as at 21 May 2021 shall be entitled to attend the AGM or appoint proxies in his/her stead or in the case
of a corporation, a duly authorised representative to attend and to vote in his/ her stead.
2. A member, other than an exempt authorised nominee is entitled to appoint one (1) or two (2) proxies to attend and vote instead of him/her. A proxy must be 18 years
and above and need not be a member of the Company.
3. Where a member appoints two (2) proxies, the appointments shall be invalid unless he/she specifies the proportions of his/her holdings to be represented by each proxy.
4. Where a member of the Company is an Exempt Authorised Nominee which holds ordinary shares in the Company in an Omnibus Account, there is no limit to the number
of proxies which the Exempt Authorised Nominee may appoint in respect of each Omnibus Account it holds but the proportion of holdings to be represented by each proxy
must be specified.
5. The instrument appointing a proxy shall be in writing under the hand of the appointer or his/her attorney duly authorised in writing or if the appointer is a corporation,
either under the corporation’s seal or under the hand of an officer or attorney duly authorised. If under the hand of attorney/authorised officer, the Power of Attorney or
Letter of Authorisation must be attached.
6. The instrument appointing a proxy must be deposited at the Share Registrar’s office of the Company, Boardroom Share Registrars Sdn. Bhd. at 11th Floor, Menara
Symphony, No. 5, Jalan Professor Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor, Malaysia not less than 48 hours before the time appointed for holding the
Meeting or adjourned Meeting either by hand, post, courier or electronic mail to [email protected] or fax (603)78904670 before the Form of Proxy
lodgement cut-off time as mentioned above, otherwise the instrument of proxy should not be treated as valid.
7. For verification purposes, members and proxies are required to produce their original identity card at the registration counter. No person will be allowed to register on
behalf of another person even with the original identity card of that other person.
8. Personal Data Privacy – By submitting an instrument appointing a proxy(ies) and/or representative(s) to attend, speak and vote at the AGM and/or any adjournment
thereof, a member of the Company hereby agree and consent that any of your personal data in our possession shall be processed by us in accordance with the Personal
Data Protection Act 2010. Further, you hereby warrant that relevant consent has been obtained by you for us to process any third party’s personal data in accordance
with the said Act.
Then fold here
80 SEN STAMP
(within Malaysia)
The Share Registrar

[196001000393 (4060-V)]
11TH FLOOR, MENARA SYMPHONY

NO. 5, JALAN PROF. KHOO KAY KIM
SEKSYEN 13
46200 PETALING JAYA
SELANGOR DARUL EHSAN
MALAYSIA
1st fold here

Kompleks Pejabat Behrang 2020, Jalan Persekutuan 1,
35900 Tanjung Malim, Perak Darul Ridzuan
T: +605 459 0001 F: +605 459 0003
www.mhc.com.my

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[196001000393 (4060-V)]

Notice of Annual General Meeting

3.1 Puan Wan Salmah Binti Wan Abdullah 2

3.2 Mr. Heng Beng Fatt 3

5. RETENTION OF INDEPENDENT NON-EXECUTIVE DIRECTORS UNTIL THE

6. PROPOSED AUTHORITY TO ALLOT AND ISSUE SHARES IN GENERAL 7

Notice of Annual General Meeting (cont’d)

By Order of the Board

CHAN EOI LENG

Ipoh, Perak Darul Ridzuan, Malaysia

Annual Report 2020

Notice of Annual General Meeting (cont’d)

3. DIRECTORS’ BENEFITS TO NON-EXECUTIVE DIRECTORS

4. RETENTION OF INDEPENDENT NON-EXECUTIVE DIRECTORS

ANNUAL REPORT 2020, CORPORATE GOVERNANCE REPORT 2020

DIRECTORS PRINCIPAL PLACE OF BUSINESS

Annual Report 2020

STOCK EXCHANGE LISTING

100% Champion Point Majuperak Sawit

100% Majuperak Plantation Sharikat Muzwin

100% Yew Lee Holdings 100% Hutan Melintang

4.60% Ladang Cepat-KPD 60%

95.40% Anson Oil Industries 100% Ayu Sempurna Sdn. Bhd.

100% Sungguh Mulia Sdn. Bhd.

100% Mah Hock Company

100% Bakara Sdn. Bhd.

100% Kovusak Sdn. Bhd.

100% Razijaya Sdn. Bhd.

100% Cepatwawasan Sdn. Bhd. 100% Jutategak Sdn. Bhd.

100% Liga Semarak Sdn. Bhd.

100% Power Precint Sdn. Bhd.

Plantation 70% Cash Horse (M) Sdn. Bhd.

66.13% Timah Resources Limited

Palm oil mill / plantation 100% Hikayat Anggun Sdn. Bhd.

Power generation 100% Aspenglade Sdn. Bhd.

Dormant 100% Ekuiti Etika Sdn. Bhd.

Annual Report 2020

Profile of Directors (cont’d)

Profile of Directors (cont’d)

Mr. Heng Beng Fatt Ms. Mah Li-Na

Annual Report 2020

Profile of Directors (cont’d)

Dr. Jordina Mah Siu Yi

CONVICTIONS FOR OFFENCES

Profile of Key Senior Management

Dato’ Seri Mah King Seng

• Refer to the Profile of Directors on page 7.

Tan Sri Dr. Mah King Thian

• Refer to the Profile of Directors on page 7.

Mr. Soong Swee Koon

Annual Report 2020

Mr. Muthusamy A/L P. Karuppaiah

Profile of Key Senior Management (cont’d)

Mr. Chan Kim Meng

The highlights of the Group performance are stated below:

Annual Report 2020

FY2020 FY2019 Difference

CPO 87,349 104,000 -16%

FY2020 FY2019 Difference