2014ANNUAL REPORT

NOTICE OF ANNUAL GENERAL MEETING

STATEMENT ACCOMPANYING NOTICE OF TWENTIETH ANNUAL GENERAL MEETING

CORPORATE INFORMATION

CHAIRMANS STATEMENT

CORPORATE STRUCTURE

BOARD OF DIRECTORS

SENIOR MANAGEMENT TEAM

ADDITIONAL COMPLIANCE INFORMATION

STATEMENT ON CORPORATE GOVERNANCE

CORPORATE SOCIAL RESPONSIBILITY

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

DIRECTORS RESPONSIBILITY STATEMENT

REPORT OF THE AUDIT COMMITTEE

DIRECTORS REPORT

STATEMENT BY DIRECTORS

STATUTORY DECLARATION

INDEPENDENT AUDITORS REPORT

STATEMENTS OF COMPREHENSIVE INCOME

STATEMENTS OF FINANCIAL POSITION

STATEMENTS OF CHANGES IN EQUITY

STATEMENTS OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

LIST OF PROPERTIES

ANALYSIS OF SHAREHOLDINGS

ANALYSIS OF WARRANT HOLDINGS

FORM OF PROXY

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Contents

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2NOTICE OF ANNUAL GENERAL MEETING

Malacca Development

NOTICE IS HEREBY GIVEN that the Twentieth Annual General Meeting of the Company will be held at Dewan Perdana, 1st Floor Sport Complex, Bukit Kiara Equestrian & Country Resort, Jalan Bukit Kiara, Off Jalan Damansara, 60000 Kuala Lumpur on Tuesday, 9 December 2014 at 10.00 a.m.

AGENDA

1) To receive the Audited Financial Statements for the year ended 30 June 2014 together with the Reports of the Directors and Auditors thereon.

2) To re-elect the following directors who retire in accordance with Article 87 of the Companys Articles of Association, being eligible, offer themselves for re-election:-

i) Dato Sri Ir. Kuan Peng Ching @ Kuan Peng Soon

ii) Mr. Wong Chee Heng

;VYLHWWVPU[+H[V0ZTHPS)PU/HQP6THY^OVPZV]LY[OLHNLVMZL]LU[``LHYZ[VOVSKVMJLuntil the next Annual General Meeting pursuant to Section 129(6) of the Companies Act, 1965.

4) To approve the payment of Directors fees of RM 198,000.00 for the year ended 30 June 2014.

;VYLHWWVPU[(\KP[VYZ[VOVSKVMJLMVY[OLLUZ\PUN`LHYHUK[VH\[OVYPZL[OL+PYLJ[VYZ[V_their remuneration.

Special Business ;VJVUZPKLYHUKPM[OV\NO[[[VWHZZ[OLMVSSV^PUNYLZVS\[PVUZ!

6) 6YKPUHY`9LZVS\[PVU*VU[PU\H[PVUPUVMJLHZ0UKLWLUKLU[+PYLJ[VY

THAT approval be and is hereby given to Mr. Foong Kuan Ming, who has served as an Independent Director of the Company for a cumulative term of more than nine years, to continue to act as an Independent Director.

7) Ordinary Resolution 2 - Authority to Issue Share

THAT pursuant to Section 132D of the Companies Act, 1965, the Directors be and are hereby authorised to issue and allot shares in the Company at any time until the conclusion of the next Annual General Meeting and upon such terms and conditions and for such purposes as the +PYLJ[VYZTH`PU[OLPYHIZVS\[LKPZJYL[PVUKLLT[WYV]PKLK[OH[[OLHNNYLNH[LU\TILYVMZOHYLZto be issued does not exceed ten per centum (10%) of the issued share capital of the Company for the time being, subject always to the approval of all the relevant regulatory bodies being obtained for such allotment and issue.

Resolution 1

Resolution 2

Resolution 3

Resolution 4

Resolution 5

Resolution 6

Resolution 7

Resolution 8

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14NOTICE OF ANNUAL GENERAL MEETING (contd)

Resolution 9

8) Ordinary Resolution 3 - Proposed Renewal of Share Buy-Back Authority

THAT subject to the Companies Act, 1965, the provisions of the Companys Memorandum and Articles of Association, the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Securities) and all other prevailing laws, rules, regulations and orders issued and/or amended from time to time by the relevant authorities, the Company be and is hereby H\[OVYPZLK[VHSSVJH[LHUHTV\U[UV[L_JLLKPUN[OL\UHWWYVWYPH[LKWYV[ZHUKVYZOHYLWYLTP\Taccounts of the Company for the purpose of and to purchase such amount of ordinary shares of RM0.50 each (Proposed Share Buy-back) in the Company as may be determined by the Directors of the Company from time to time on the market of the Bursa Securities upon such [LYTZHUKJVUKP[PVUZHZ[OL+PYLJ[VYZTH`KLLT[PU[OLPU[LYLZ[VM[OL*VTWHU`WYV]PKLK[OH[the aggregate number of shares purchased pursuant to this resolution does not exceed ten percent (10%) of the total issued and paid-up share capital of the Company AND THAT upon completion of the purchase by the Company of its own shares, the Directors are authorised to decide at their discretion to cancel all or part the shares so purchased and/or to retain all or part the shares so purchased as treasury shares of which may be distributed as dividends to shareholders and/or to resell on the market of Bursa Securities and/or to retain part thereof as treasury shares and cancel the remainder; AND THAT the Directors be and are hereby authorised and empowered to do all acts and things to give full effect to the Proposed Share Buy-back AND FURTHER THAT such authority shall commence immediately upon passing of this resolution until:

i) the conclusion of the next Annual General Meeting of the Company at which time the authority shall lapse unless by ordinary resolution passed at a general meeting, the authority is renewed either unconditionally or subject to conditions; or

ii) the expiration of the period within which the next Annual General Meeting after that date is required by law to be held; or

iii) revoke or varied by ordinary resolution of the shareholders of the Company at a general meeting whichever is the earliest.

9) To transact any other business for which due notice shall have been given.

BY ORDER OF THE BOARD

TAN KOK AUN (MACS 01564)WONG WAI YIN (MAICSA 7003000)Company Secretaries

Kuala Lumpur,17 November 2014

Gardenhill, Melbourne

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Notes :1. A Member holding one thousand (1,000) ordinary shares or less may appoint only one (1) proxy to attend and vote instead of him at a

general meeting who shall represent all the shares held by such member, and where a member holding more than one thousand (1,000) ordinary shares may appoint more than one (1) proxy to attend and vote instead of him at the same meeting. Where a member appoints more than (1) proxy, he shall specify the proportion of his shareholdings to be represented by each proxy.

>OLYLH4LTILYPZHU,_LTW[(\[OVYPZLK5VTPULL^OPJOOVSKZVYKPUHY`ZOHYLZPU[OL*VTWHU`MVYT\S[PWSLILULJPHSV^ULYZPUVULsecurities account (omnibus account), there is no limit to the number of proxies which the Exempt Authorised Nominee may appoint in respect of each omnibus account it holds

3. A proxy may but need not be a member of the Company and the provisions of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company.

4. If the appointer is a corporation, the proxy form must be executed under its Common Seal or under the hand of its attorney. ;OLPUZ[Y\TLU[HWWVPU[PUNHWYV_`[VNL[OLY^P[O[OLWV^LYVMH[[VYUL`PMHU`\UKLY^OPJOP[PZZPNULKVYHJLY[PLK[Y\LJVW`[OLYLVM

ZOHSSILKLWVZP[LKH[[OL*VTWHU`Z9LNPZ[LYLK6MJL5V(UK-SVVY9VVT1HSHU0WVO2LJPS2\HSH3\TW\YUV[SLZZthan 48 hours before the time set for the Meeting.

6. Depositor whose name appears on the Record of Depositors as at 2 December 2014 shall be regarded as member of the Company and entitled to attend and vote at the meeting or to appoint proxy(ies) to attend and vote at meeting.

EXPLANATORY NOTES ON SPECIAL BUSINESS

P *VU[PU\H[PVUPUVMJLHZ0UKLWLUKLU[5VU,_LJ\[P]L+PYLJ[VY The proposed Resolution 7 in item 6 is to seek shareholders approval to retain Mr. Foong Kuan Ming as an

Independent Director which he has served in that capacity for more than nine years.

The Board has assessed the independence of Mr. Foong Kuan Ming and recommended that he continues to act HZ0UKLWLUKLU[+PYLJ[VYVM[OL*VTWHU`IHZLKVU[OLMVSSV^PUNQ\Z[PJH[PVU!s Mr. )oong is actively participated in %oard decision, providing an independent and objective voice in %oard

deliberations and decision making and hence able to act in the best interests of the Companys Mr. )oong is not related to any 'irectors and substantial shareholders of the Company

ii. Authority to Directors to Issue Shares ;OLWYVWVZLK9LZVS\[PVU PU P[LT PZWYPTHYPS` [VNP]LL_PIPSP[` [V [OL)VHYKVM+PYLJ[VYZ [V PZZ\LHUKHSSV[

shares at any time in their absolute discretion without convening a general meeting. The authorisation will, unless revoked or varied by the Company at a general meeting, expire at the next annual general meeting. This is a renewal of a general mandate. In order to avoid any delay and cost involved in convening a general meeting, it is thus appropriate to seek members approval.

NOTICE OF ANNUAL GENERAL MEETING (contd)

The purpose of this general mandate is for possible fund raising exercises including but not limited to further placement of shares for purpose of funding current and/or future projects, working capital and/or acquisitions.

iii. Proposed Renewal of Share Buy Back Authority The proposed Resolution 9 in item 8 is to empower the Directors of the

Company to purchase the Companys shares up to ten percent (10%) of the issued and paid-up share capital of the Company by utilising [OL M\UKZ HSSVJH[LK^OPJO ZOHSS UV[ L_JLLK [OL YL[HPULK WYV[Z HUKVYshare premium of the Company. Please refer to the Share Buy-Back Statement dated 17 November 2014, which is dispatched together with the Companys Annual Report 2014.

Gleneagles Hospital

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STATEMENT ACCOMPANYINGNOTICE OF TWENTIETH ANNUAL GENERAL MEETING

DETAILS OF MEETING

Twentieth Annual General Meeting of the Company will be held at Dewan Perdana, 1st Floor Sport Complex, Bukit Kiara Equestrian & Country Resort, Jalan Bukit Kiara, Off Jalan Damansara, 60000 Kuala Lumpur on Tuesday, 9 December 2014 at 10.00 a.m.

RE-ELECTION OF DIRECTORS

Directors who are standing for re-election in accordance with Article 87 of the Companys Articles of Association:

i) Dato Sri Ir Kuan Peng Ching @ Kuan Peng Soonii) Mr. Wong Chee Heng

Director who is standing for re-appointment in accordance with Section 129(6) of the Companies Act, 1965 :

i) Dato Ismail Bin Haji Omar

-\Y[OLYKL[HPSZVM[OL+PYLJ[VYZZ[HUKPUNMVYYLLSLJ[PVUHYLZL[V\[PU[OL+PYLJ[VYZ7YVSLHWWLHYPUNVUWHNL[Vof this Annual Report.

INTEREST IN SECURITIESDetails of Directors interest in securities of the Company are stated on page 129 of this Annual Report.

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6

BOARD OF DIRECTORS

Dato Sri Ir. Kuan Peng Ching @ Kuan Peng Soon (Executive Chairman)Ooi Leng Chooi (Executive Director)Dato Ir. Low Keng Kok (Non-Independent Non-Executive Director)Dato Ismail Bin Haji Omar (Independent Non-Executive Director)Foong Kuan Ming (Independent Non-Executive Director)Wong Chee Heng (Independent Non-Executive Director)Zahedi Bin Mohd Zain (Independent Non-Executive Director)

AUDIT COMMITTEE

Chairman - Foong Kuan MingMembers - Wong Chee Heng - Zahedi Bin Mohd Zain

NOMINATION COMMITTEE

Chairman - Foong Kuan MingMembers - Wong Chee Heng - Zahedi Bin Mohd Zain

REMUNERATION COMMITTEE

Chairman - Dato Sri Ir. Kuan Peng Ching @ Kuan Peng SoonMembers - Foong Kuan Ming - Wong Chee Heng - Zahedi Bin Mohd Zain

PRINCIPAL BANKERS

Malayan Banking Berhad (3813-K)RHB Bank Berhad (6171-M)United Overseas Bank (Malaysia) Bhd (271809K)CIMB Bank Berhad (13491-P)

SOLICITOR

Messrs. B B Teh.

COMPANY SECRETARIES

Tan Kok Aun (MACS 01564)Wong Wai Yin (MAICSA No. 7003000)

REGISTERED OFFICE

No. 1 & 1A, 2nd Floor (Room 2),Jalan Ipoh Kecil,50350 Kuala Lumpur.Tel: +603 4043 5750Fax: +603 4043 5755

BUSINESS ADDRESS

No.61 & 63, Jalan SS6/12,Kelana Jaya,47301 Petaling Jaya,Selangor Darul Ehsan.Tel: +603 7804 9698Fax: +603 7804 3698 / 4849Website: http://www.fb.com.my

AUDITORS

Crowe Horwath, Chartered Accountants2\HSH3\TW\Y6MJLLevel 16 Tower C, Megan Avenue II,12, Jalan Yap Kwan Seng,50450 Kuala Lumpur. Tel: +603 2788 9999 Fax: +603 2788 9998

REGISTRAR

Symphony Share Registrars Sdn BhdLevel 6, Symphony House,Pusat Dagangan Dana 1, Jalan PJU 1A/46,47301 Petaling Jaya, Selangor. Tel: +603 7841 8000Fax: +603 7841 8151 & +603 7841 8152Helpdesk Hotline: +603 7849 0777

STOCK EXCHANGE LISTING

Main Market of Bursa Malaysia Securities BhdStock Name: FAJAR Stock Code: 7047

CORPORATE INFORMATION

Visual Docking Guidance System

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14CHAIRMANS STATEMENT

2n behalf of the %oard of 'irectors, it is my pleasure and privilege to present the Annual 5eport and )inancial 6tatements of )ajarbaru %uilder Group %hd o)%Gp or othe Groupp) for the nancial year ended -une .

INDUSTRY TRENDS

The Malaysian economy remains resilience despite facing more challenging external environment. The construction sector growth remains robust attributed to ongoing civil engineering and residential activities. The civil engineering subsector expanded and bolstered by the ongoing implementation of infrastructure projects and corridor development. The subsector was also driven by the Economic Transformation 3rogramme ET3) projects. +owever the subsector is expected to moderate in the coming months due to near completion of some major infrastructure projects.

The residential subsector expanded as reected in higher construction activities. 'emand for residential property is expected to be moderate and .lang 9alley continued to dominate the supply follow by -ohore.

)ollowing Government initiatives to curb speculative activity it was reported that the volume of residential property transactions contracted, while value increased marginally. +ouse prices will continue to rise, albeit at a slower pace.

'espite the challenges in the residential subsector, growth is projected to remain strong in view of the increased demand for housing particularly in prime areas and also from the middle income group.

FINANCIAL PERFORMANCE

'uring the nancial year under review, the Group achieved higher revenue of 5M. million, which was approximately . higher compared to 5M. million in the preceding year. 2verall, the Group registered a lower prot after tax of 5M. million as compared to prot after tax of 5M. million in the preceding year due to the increased in nance cost after providing the fair value loss on receivables amounting to 5M. million.

PROSPECTS AND OUTLOOK

The Group is optimistic of the prospect next year due to strong private investment momentum, ramp-up in Economic Transformation 3rogramme-related spending and positive albeit slower) consumer spending.

%ased on the record for the nancial year under review, the Group has a balance order book of approximately 5M million, which is expected

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to provide earnings visibility to the Group over the next two years. Moving forward, the Group will leverage on its experienced to tender for public and private projects to replenish its current order book.

3roperty sector in general has softened after Governmentps initiatives to curb speculative activity and the difculties faced by purchasers in securing end-nancing. 'espite the softer property sales, the Group is condent that the property sector will recover in the next few months as demand for property is still strong. Property prices will remain moderate to high after the implementation of G6T. The implementation of G6T is not expected to have any signicant medium to long term impact on the property sector. The property outt is expected to make a signicant contribution to the Group revenue in the future.

The Group diversication into logging and timber trading business via the newly acquired subsidiary companies, %illion 9ariety 6dn %hd and 6mooth Accomplishment 6dn %hd, will contribute signicantly to the Group revenue in the immediate term. :e are grateful to all our shareholders for their condence and support in approving the Groupps plans to diversify into logging and timber trading business. :ith the approval of the shareholders, the Group had re-classied its core business to include logging and timber business.

Malaysia being one of the world largest exporters of medium density breboards and furniture in Asia presents an immense opportunity to the Group to further develop its logging and timber trading business.

CORPORATE GOVERNANCE

To ensure transparency, accountability and protection of shareholdersp interest, the %oard places great emphasis on ensuring and maintaining the highest standards of corporate governance throughout the Group in accordance with the /isting 5equirements of %ursa Malaysia 6ecurities %erhad.

CORPORATE DEVELOPMENTS

2n 2ctober , the Group has completed the acquisition of a freehold land held under individual title +6'), PT , Mukim of 'amansara, 'istrict of Petaling, 6tate of 6elangor together with a four ) storey shop ofce, measuring approximately square metres for a total cash consideration of 5M,,..

The Group had on )ebruary entered into a 6hare 6ale Agreement to acquire , ordinary shares of 5M. each in %illion 9ariety 6dn. %hd. Company 1o. -T) q%96%) representing of the total issued and paid up capital in %96% from the unrelated parties, 'atop 6ri /im Ah Chap and 'atop /im 6iew Mei for a total cash consideration of 5M,..

The Company had on )ebruary resolved the issue to extend the existing E626 which is expiring on 'ecember for a further ve ) years period till 'ecember .

CHAIRMANS STATEMENT (contd)

Low Cost Carrier Terminal LRT Station Shrimp Farm, Setiu

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14CHAIRMANS STATEMENT (contd)

On 14 April 2014, the Group entered into a Share Sale Agreement to acquire 1,000,000 ordinary shares of RM1.00 each in Smooth Accomplishment Sdn. Bhd. (Company No. 1066265-P) (SASB) representing 100% of the total issued and paid up capital in SASB from Dato Lim Siew Mei, Dato Kong Hon Kong and Kong Yew Foong for a total cash consideration of RM1,000,000.00.

The Group also on 7 May 2014 registered and owned a 51% subsidiary company in Australia namely Fajarbaru-Beulah (Melbourne) Pty Ltd (Australian Company No. 169430246) with a total share capital of AUD$100,000.00.

On 16 September 2014, the Group has completed the acquisition by FajarbaruBeulah (Melbourne) Pty Ltd, a 51% indirect owned subsidiary of the Company, of all that piece of vacant land at Lot 6, 7 and 8 on plan of subdivision no. 042014 and being the land more particularly described as Certicate of Title 9olume 08204 Folio 293, 08164 Folio 685 and 08179 Folio 168 respectively, Doncaster, 9ictoria 3108, Australia from Doncaster Regency Pty Ltd for a total cash consideration of AUD$6,900,000.00 (exclusive of 10% Australia GST).

Apart from that, the Company also on 2 October 2014 listed and quoted its 109,628,288 new Ordinary Shares of RM0.50 each and 109,628,288 Warrants on the Main Market of Bursa Malaysia Securities Berhad pursuant to the Renounceable Rights Issue of up to 120,566,620 New Ordinary Shares of RM0.50 each in the Company, on the basis of one (1) Rights Share for every two (2) existing shares held in the Company together with up to 120,566,620 free detachable Warrants on the basis of one (1) Warrant for every one (1) Rights Share subscribed for.

DIVIDEND

The Board of Directors does not recommend any payment of dividend for the nancial year ended 30 -une 2014 so as to enable the Group to retain its nancial resources for its businesses expansion.

APPRECIATION

On behalf of the Board, I wish to express my sincere gratitude and appreciation to the shareholders, investors, business associates, clients, bankers and sub-contractors who have contributed signicantly to our success and for the continuous support and condence in the Group. I am extremely grateful to the Government of Malaysia, Securities Commission, Bursa Malaysia Securities Berhad and all the relevant authorities for their guidance, advice and support. Moreover, my utmost gratitude also goes to all employees of FBG and its subsidiaries for their continuous efforts, seless dedication and commitment to the growth and success of the Group. Finally, I would like to extend my utmost appreciation to my fellow members of the Board for their wise counsel, guidance, expertise, commitment and invaluable contributions.

MOVING FORWARD

FBG has always been committed to continue to grow and diversify its business in a sustainable manner in order to create a good value for our shareholders.

Dato Sri Ir. Kuan Peng Ching @ Kuan Peng SoonExecutive Chairman

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FAJARBARU BUILDER GROUP BHD(281645-U)

Investment Holding

SMOOTH ACCOMPLISHMENT SDN BHD (1066265-P)

Logging & Trading of Timber(100%)

FAJARBARU BUILDER SDN BHD (27198-T)Building & Civil Construction

(100%)

FAJARBARU TRADING SDN BHD (282965-H)Trading of Building Materials

(100%)

FAJARBARU LAND SDN BHD (344800-A)Property Development

(100%)

WAJATEX SDN BHD (379050-M)Property Development

(100%)

RENOWAJA SDN BHD (820729-W)Property Development

(100%)

FAJARBARU-BEULAH (MELBOURNE) PTY LTD (169 430 246)

Property Development (51%)

FAJARBARU PROPERTIES SDN BHD (851265-T)(Formerly known as Temasek Perkasa Sdn Bhd)

Investment Holding(100%)

POTENTIAL REGION SDN BHD (229098-H)Property Development

(100%)

BILLION VARIETY SDN BHD (758147-T)Logging & Trading of Timber

(51%)

CORPORATE STRUCTURE

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Dato Sri Ir. Kuan Peng Ching @ Kuan Peng Soon(Executive Chairman)

Dato Sri Ir. Kuan Peng Ching @ Kuan Peng Soon, aged 69, Malaysian, was appointed to the Board on 17 May 2006. He PZHX\HSPLKLSLJ[YPJHSLUNPULLYNYHK\H[LKMYVT(KLSHPKL

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BOARD OF DIRECTORS (contd)

Dato Ismail Bin Haji Omar(Independent Non-Executive Director)

+H[V0ZTHPS)PU/HQP6THYHNLK4HSH`ZPHU^HZHWWVPU[LK[V[OL)VHYKVU5V]LTILY /LVI[HPULKH)HJOLSVYVM,JVUVTPJZ/VUV\YZ+LNYLLMYVT[OLLZ[LYU(\Z[YHSPH(\Z[YHSPHPU +H[V0ZTHPSZ[HY[LKOPZJHYLLY^P[O[OL.V]LYUTLU[ PU H[[OL4PUPZ[Y`VM*VTTLYJLHUK0UK\Z[Y`HZHU(ZZPZ[HU[*VU[YVSSLY PU[OL,_WVY[*VTTVKP[PLZ+P]PZPVU:\IZLX\LU[S`PU OL^HZWYVTV[LK[V[OLWVZP[PVUVM+LW\[`*VU[YVSSLY/LQVPULK[OL4PUPZ[Y`VM7YPTHY`0UK\Z[YPLZHZ7YPUJPWHS(ZZPZ[HU[:LJYL[HY`PU HUKPU OL^HZWYVTV[LK[V:LJYL[HY`9\IILY+P]PZPVU4PUPZ[Y`VM7YPTHY` 0UK\Z[YPLZ 0U OL^HZWYVTV[LK [V [OL+LW\[`:LJYL[HY` PU [OL*HIPUL[+P]PZPVUVM[OL7YPTL4PUPZ[LYZ+LWHY[TLU[HUKZLY]LK[OLYLMVY[^V`LHYZ/L^HZTHKL[OL+PYLJ[VYVM(NYPJ\S[\YL+P]PZPVUPU[OL,JVUVTPJZ7SHUUPUN

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Wong Chee Heng(Independent Non-Executive Director)

4Y>VUN*OLL/LUNHNLK4HSH`ZPHUPZH*OHY[LYLK4HUHNLTLU[(JJV\U[HU[HUKHTLTILYVM[OL4HSH`ZPHU0UZ[P[\[LVM(JJV\U[HU[Z 40(/L^HZHWWVPU[LK [V [OL)VHYKVM+PYLJ[VYZVM-).VU1HU\HY`/LZ[HY[LKOPZ JHYLLY^P[O(ZPH(\[VTVIPSL 0UK\Z[YPLZ:KU)OK [OLHZZLTISLY MVY4HaKHHUK7L\NLV[ ]LOPJSLZ PU /LSLM[PU [VQVPU2HKPU+\L[a:KU)OKHJVTWHU`[YHKPUNPUOLH]`LX\PWTLU[/LQVPULK4HJOPULY`0UK\Z[YPHS:\WWSPLZ:KU)OKPU HUK^HZZLJVUKLK[V/PYV[HRV(JV\Z[PJZ:KU)OKPU /LOHZTVYL[OHU`LHYZVML_WLYPLUJLPUHJJV\U[PUNJVYWVYH[LUHUJLHUKNLULYHSTHUHNLTLU[4Y>VUN PZUV[ YLSH[LK [VHU`+PYLJ[VYZVYTHQVYZOHYLOVSKLYZVM [OL*VTWHU`/LKVLZUV[OH]LHU`JVUPJ[VMPU[LYLZ[ PUHU`I\ZPULZZHYYHUNLTLU[ PU]VS]PUN[OL*VTWHU`VY P[ZZ\IZPKPHYPLZ/LOHZOHKUVJVU]PJ[PVUZ MVYHU`VMMLUJLZ^P[OPU[OLWHZ[`LHYZ4Y>VUNPZHTLTILYVM[OL(\KP[5VTPUH[PVUHUK9LT\ULYH[PVU*VTTP[[LLZ

Zahedi Bin Mohd Zain(Independent Non-Executive Director)

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CONVICTIONS FOR OFFENCES OF DIRECTORS

5VULVM[OL+PYLJ[VYZOH]LILLUJVU]PJ[LKMVYHU`VMMLUJLZ^P[OPU[OLWHZ[[LU`LHYZV[OLY[OHU[YHMJVMMLUJLZPMHU`DETAILS OF ATTENDANCE OF DIRECTORS AT BOARD MEETINGS

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NAME STATUS OF DIRECTORSHIP ATTENDANCE OF MEETINGS

+H[V:YP0Y2\HU7LUN*OPUN' ,_LJ\[P]L*OHPYTHU Kuan Peng Soon6VP3LUN*OVVP ,_LJ\[P]L+PYLJ[VY +H[V0Y3V^2LUN2VR 5VU0UKLWLUKLU[5VU,_LJ\[P]L+PYLJ[VY +H[V0ZTHPS)PU/HQP6THY 0UKLWLUKLU[5VU,_LJ\[P]L+PYLJ[VY -VVUN2\HU4PUN 0UKLWLUKLU[5VU,_LJ\[P]L+PYLJ[VY >VUN*OLL/LUN 0UKLWLUKLU[5VU,_LJ\[P]L+PYLJ[VY AHOLKP)PU4VOKAHPU 0UKLWLUKLU[5VU,_LJ\[P]L+PYLJ[VY

DATE, TIME AND VENUE OF BOARD MEETINGS

(SS)VHYK4LL[PUNZ MVY [OLUHUJPHS`LHYLUKLK1\UL^LYLOLSK PU-).*VUMLYLUJL9VVT1HSHU::2LSHUH1H`H7L[HSPUN1H`H:LSHUNVY;OLKH[LHUK[PTLVM[OL)VHYK4LL[PUNZ^LYLHZMVSSV^Z!

DATE TIME

(\N\Z[;O\YZKH` HT6J[VILY;O\YZKH` HT5V]LTILY>LKULZKH` WT-LIY\HY`-YPKH` HT-LIY\HY`>LKULZKH` WT(WYPS;\LZKH` HT4H`;O\YZKH` HT

BOARD OF DIRECTORS (contd)

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Dato Sri Ir. Kuan Peng Ching @ Kuan Peng Soon(Executive Chairman)

Teo Sock Cheng,_LJ\[P]L+PYLJ[VYJ\T*OPLM6WLYH[PUN6MJLY

Ooi Leng Chooi(Executive Director)

Toh Teong Hock(Senior GM - Construction & Engineering)

Wong Wee Keong(Senior GM Contract)

Yau Tuck Wai(GM - Property)

Charles Tan Ting Lih(Financial Controller)

Ng Kok Wai(Operation Manager Logging & Trading of Timber)

Lai Kam Chuan(Senior Purchasing Manager)

Choo Kai Keong(Senior Project Manager)

Edison Tang Poh Seng(Senior Project Manager)

Khor Mee Khiang(Senior Project Manager)

Stanley Hoh Yow Sing(Senior Project Manager)

Hoon Wai Loh(Project Manager)

Khoo Nee Beng(Project Manager)

Nivaraj A/L Letchmanan(Project Manager)

Tiong Choong Han(Project Manager)

Ir. Lim Kim Teng(M & E Manager)

Ir. Kong Kam Loong(Manager Construction & Engineering)

CK Chan(Manager HR/Administrator)

Teo Sock Cheng ,_LJ\[P]L+PYLJ[VYJ\T*OPLM6WLYH[PUN6MJLY 4Y ;LV :VJR*OLUN OHZ ILLU^P[O [OL JVTWHU` ZPUJL5V]LTILY HUK Z\IZLX\LU[S`^HZ HWWVPU[LK HZ HU,_LJ\[P]L+PYLJ[VYVM-HQHYIHY\)\PSKLY:KU)OKHJVYLZ\IZPKPHY` VM [OL .YV\W VU Z[ +LJLTILY /LNYHK\H[LK ^P[O HU 4)( MYVT

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SENIOR MANAGEMENT TEAM (contd)

Lai Kam Chuan (Senior Purchasing Manager)

4Y 3HP 2HT *O\HU OHZ ILLU ^P[O [OL JVTWHU` ZPUJL1\S` /LOHZNYHK\H[LK^P[O HKLNYLLVM)HJOLSVYVM )\ZPULZZ (KTPUPZ[YH[PVU MYVT 5H[PVUHS *OLUNJOP

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1. Utilisation of Proceeds from the issue of the Employees Share Option Scheme

(a) Employees Share Option Scheme

Utilisation Amount (RM)

>VYRPUN*HWP[HS ,_WLUZLZMVY[OL0ZZ\L

;V[HS7YVJLLKZMYVT[OL0ZZ\L!

2. Share Buy-back +\YPUN[OLUHUJPHS`LHYLUKLK1\UL[OL*VTWHU`IV\NO[IHJRH[V[HSVMZOHYLZH[HJVZ[VM

94 (ZH[1\ULH[V[HSVMZOHYLZH[HJVZ[VM94 OH]LILLUYL[HPULKHZ[YLHZ\Y`ZOHYLZPU[OL*VTWHU`

Number of Shares Lowest Highest Average Month Purchased Price Price Price Total Paid 000 RM RM RM RM (000)

6J[ 4H` Total 5.1 3.30

Options, warrants or convertible securities exercised ([ [OL,_[YHVYKPUHY`.LULYHS4LL[PUNOLSKVU6J[VILY [OL*VTWHU`Z ZOHYLOVSKLYZHWWYV]LKVM HU

,TWSV`LLZ:OHYL6W[PVU:JOLTL,:6:VM\W[VM[LLUWLYJLU[VM[OLPZZ\LKHUKWHPK\WJHWP[HSVM[OL*VTWHU`[VLSPNPISL+PYLJ[VYZHUKLTWSV`LLZVM[OL.YV\W;OL,:6:^OPJOPZL_WPYPUNVU+LJLTILYOHZILLUL_[LUKLK[PSS+LJLTILY

i) During the nancial year ended 30 -une 2014, the total number of options granted, exercised and outstanding under the Employee Share Scheme are as set out in the table below:

Number of Options Description Grand Total Directors and chief executive

2014 2013 2014 2013

(a) Granted - 10,370,000* - 350,000(b) Exercised 6,370,000 2,310,000 250,000 100,000 (c) Outstanding - 8,060,000* - 250,000

* including forfeited options

ADDITIONAL COMPLIANCE INFORMATION

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(ii) Percentage of options applicable to Directors and Senior Management under the Employees Share Option Scheme:

+\YPUN[OLUHUJPHS`LHY :PUJLJVTTLUJLTLU[ Directors and Senior Management ended 30 June 2014 up to 30 June 2014

H(NNYLNH[LTH_PT\THSSVJH[PVU I(J[\HSNYHU[LK[OL,:6:NYHU[LKV]LY

[OLPZZ\LKHUKWHPK\WVYKPUHY`ZOHYL JHWP[HSVM[OL*VTWHU`L_JS\KPUN treasury shares))

PPP :L[ILSV^PZHIYLHRKV^UVM[OLVW[PVUZVMMLYLK[VHUKL_LYJPZLKI`VYZOHYLZNYHU[LK[VHUK]LZ[LKPUPMHU`UVUL_LJ\[P]LKPYLJ[VYZW\YZ\HU[[VHU,TWSV`LLZ:OHYL6W[PVU:JOLTLPUYLZWLJ[VM[OLUHUJPHS`LHYLUKLK1\ULHZMVSSV^Z!

Name of Director Amount of Options offered Amount of Options exercised

+H[V0Y3V^2LUN2VR +H[V0ZTHPS)PU/HQP6THY -VVUN2\HU4PUN >VUN*OLL/LUN AHOLKP)PU4VOKAHPU Total

;OL*VTWHU`OHZUV[PZZ\LK^HYYHU[ZVYJVU]LY[PISLZLJ\YP[PLZK\YPUN[OLUHUJPHS`LHYLUKLK1\ULV[OLY[OHU[OLL_LYJPZLVM^HYYHU[ZI`[OLZOHYLOVSKLYZVM\W[V ^HYYHU[ZHUKL_LYJPZLVM,TWSV`LLZ:OHYL6W[PVU:JOLTLVM\W[VVW[PVUZ(ZH[1\ULH[V[HSVM UL^VYKPUHY`ZOHYLZVM94OH]LILLUPZZ\LKHUKNYHU[LKSPZ[PUNHUKX\V[H[PVU^P[O)\YZH4HSH`ZPH:LJ\YP[PLZ)OK

Depository Receipts Programme +\YPUN[OLUHUJPHS` LHYLUKLK1\UL[OL*VTWHU`OHZUV[ZWVUZVYLKHU`KLWVZP[VY`YLJLPW[WYVNYHTTL

Sanctions and / or Penalties imposed ;OLYL^LYLUVZHUJ[PVUZVYWLUHS[PLZPTWVZLKVU[OL*VTWHU`HUKP[ZZ\IZPKPHYPLZKPYLJ[VYZVYTHUHNLTLU[I`

[OLYLSL]HU[YLN\SH[VY`IVKPLZK\YPUN[OLUHUJPHS`LHYLUKLK1\UL

6. Non-audit fees payable to external auditors ;OLYL^LYL94!94MLLZWH`HISL[VL_[LYUHSH\KP[VYZMVYUVUH\KP[ZLY]PJLZK\YPUN[OLUHUJPHS

`LHYLUKLK1\UL

7. Variation in results ;OLYL^LYLUV]HYPHUJLZVMVYTVYLIL[^LLU[OLYLZ\S[Z MVY [OLUHUJPHS`LHYHUK[OL\UH\KP[LKYLZ\S[Z

WYL]PV\ZS`HUUV\UJLK

ADDITIONAL COMPLIANCE INFORMATION (contd)

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7YV[.\HYHU[LL *SHPTI`-HQHYIHY\)\PSKLY.YV\W)OK-).HNHPUZ[*HZOYLW/VSKPUNZ:KU)OK *HZOYLWHUK*P[H1H[P

:KU)OK*P[H1H[P -).ZJSHPTPZIHZLKVU7YV[.\HYHU[LL(NYLLTLU[HUKH:\WWSLTLU[HS7YV[.\HYHU[LL(NYLLTLU[IV[O

L_LJ\[LKI`*HZOYLWHUK*P[H1H[PPUMH]V\YVM-). 6U5V]LTILYHUK(WYPS[OL*VTWHU`OHZVI[HPULK>PUKPUNPSH`HO7LYZLR\[\HU^HZHWWVPU[LKHZSPX\PKH[VYMVYIV[OJVTWHUPLZ

9. Recurrent related party transactions ;OLYL^LYLUVYLJ\YYLU[YLSH[LKWHY[`[YHUZHJ[PVUZK\YPUN[OLUHUJPHS`LHYLUKLK1\UL

10. Material Contracts involving directors and substantial shareholders ;OLYL^LYLUVTH[LYPHSJVU[YHJ[ZPU]VS]PUNKPYLJ[VYZHUKZ\IZ[HU[PHSZOHYLOVSKLYZK\YPUN[OLUHUJPHS`LHYLUKLK

1\UL

11. Revaluation Policy ;OL.YV\WKPKUV[HKVW[HWVSPJ`VUYLN\SHYYL]HS\H[PVUVMP[ZSHUKLKWYVWLY[PLZ

ADDITIONAL COMPLIANCE INFORMATION (contd)

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STATEMENT ON CORPORATE GOVERNANCE

;OL)VHYKVM+PYLJ[VYZ[OL)VHYKVM-HQHYIHY\)\PSKLY.YV\W)OKPZJVTTP[[LK[VHWWS`[OLWYPUJPWSLZHUKILZ[WYHJ[PJLZYLJVTTLUKLKI`[OL4HSH`ZPHU*VKLVU*VYWVYH[L.V]LYUHUJL *VKLHUK[VLUZ\YL [OH[ [OLOPNOLZ[Z[HUKHYKZ VM JVYWVYH[L NV]LYUHUJL HYL WYHJ[PJLK [OYV\NOV\[ [OL .YV\W HZ H M\UKHTLU[HS WHY[ VM KPZJOHYNPUN P[ZYLZWVUZPIPSP[PLZ[VWYV[LJ[HUKLUOHUJLZOHYLOVSKLYZ]HS\LHUK[OLSVUN[LYTUHUJPHSWLYMVYTHUJLVM[OL.YV\W

;OL)VHYKPZWSLHZLK[VWYLZLU[ILSV^[OLTHUULYPU^OPJO[OL.YV\WOHZHWWSPLK[OLWYPUJPWSLZVM[OL*VKLHUK[OLL_[LU[VMJVTWSPHUJL^P[O[OLILZ[WYHJ[PJLZVM[OL*VKL[OYV\NOV\[[OLUHUJPHS`LHYLUKLK1\UL!

BOARD OF DIRECTORS

Board Charter

;OL)VHYK*OHY[LYHJ[HZHZV\YJLVM YLMLYLUJLHUKWYPTHY` PUK\J[PVU SP[LYH[\YL PUWYV]PKPUN PUZPNO[Z [V [OL)VHYKTLTILYZHUKZLUPVYTHUHNLTLU[

;OLKL[HPSZVM[OL)VHYK*OHY[LYHYLH]HPSHISLMVYYLMLYLUJLH[^^^MIJVTT`

Composition and Balance

;OL)VHYKVM-HQHYIHY\)\PSKLY.YV\W)OKJ\YYLU[S`OHZZL]LUTLTILYZJVTWYPZPUNVMHU,_LJ\[P]L*OHPYTHUHU,_LJ\[P]L+PYLJ[VYH5VU0UKLWLUKLU[5VU,_LJ\[P]L+PYLJ[VYHUKMV\Y0UKLWLUKLU[5VU,_LJ\[P]L+PYLJ[VYZ;OL*VTWHU`PZ PUJVTWSPHUJL^P[O[OL4HPU4HYRL[3PZ[PUN9LX\PYLTLU[ZVM)\YZH:LJ\YP[PLZ4HSH`ZPH)LYOHK)\YZH:LJ\YP[PLZ^OPJOYLX\PYLKH[SLHZ[[^VKPYLJ[VYZVYVUL[OPYKVM[OL[V[HSU\TILYVM+PYLJ[VYZ^OPJOL]LYPZOPNOLY[VIL0UKLWLUKLU[+PYLJ[VYZ

;OL)VHYKPZTPUKM\S[OH[[OL*OHPYTHUOVSKZHUL_LJ\[P]LWVZP[PVUHUKPZUV[HUPUKLWLUKLU[KPYLJ[VY;OL)VHYKOHZKLSPILYH[LKHUKJVUJ\YYLK[OH[[OL*OHPYTHUZOV\SKJVU[PU\L[VOVSKHUL_LJ\[P]LWVZP[PVUPU[OL*VTWHU`K\L[VOPZPTTLUZLJVU[YPI\[PVUL_WLY[PZLHUKSLHKLYZOPWPUKYP]PUNI\ZPULZZNYV^[OVM[OL.YV\W

;OLWYLZLUJLVM PUKLWLUKLU[UVUL_LJ\[P]LKPYLJ[VYZ M\SSSZHWP]V[HS YVSL PUJVYWVYH[LHJJV\U[HIPSP[`(S[OV\NOHSS[OL+PYLJ[VYZOH]LHULX\HSS`YLZWVUZPIPSP[`MVY[OL.YV\WZVWLYH[PVUZ[OLYVSLVM[OLZLPUKLWLUKLU[UVUL_LJ\[P]LKPYLJ[VYZ PZ WHY[PJ\SHYS` PTWVY[HU[ HZ [OL` WYV]PKL \UIPHZLK HUK PUKLWLUKLU[ ]PL^ HK]PJL HUK Q\KNLTLU[ [V [HRLHJJV\U[VM [OL PU[LYLZ[ZUV[VUS`VM [OL.YV\WI\[HSZVVMZOHYLOVSKLYZLTWSV`LLZJ\Z[VTLYZZ\WWSPLYZHUK[OLTHU`JVTT\UP[PLZPU^OPJO[OL.YV\WJVUK\J[ZI\ZPULZZ

Board Responsibilities

;OL)VHYK YL[HPUZ M\SSHUKLMMLJ[P]LJVU[YVSVM [OL*VTWHU`;OPZ PUJS\KLZ YLZWVUZPIPSP[` MVY [OL*VTWHU`ZV]LYHSSZ[YH[LNPJKPYLJ[PVUHZ^LSSHZKL]LSVWTLU[HUKJVU[YVSVM [OL.YV\W2L`TH[[LYZZ\JOHZHWWYV]HSVMHUU\HSHUKX\HY[LYS`YLZ\S[ZHJX\PZP[PVUZHUKKPZWVZHSZTH[LYPHSHNYLLTLU[ZTHQVYJHWP[HSL_WLUKP[\YLZI\KNL[ZHUKSVUN[LYTWSHUZ^V\SKYLX\PYL)VHYKHWWYV]HS

;OL ,_LJ\[P]L *OHPYTHU PZ WYPTHYPS` YLZWVUZPISL MVY [OL .YV\WZ V]LYHSS I\ZPULZZ WSHU HUK KPYLJ[PVU ^OLYLHZ [OL,_LJ\[P]L+PYLJ[VYPZYLZWVUZPISLMVY[OLKH`[VKH`I\ZPULZZVWLYH[PVUZTHUHNLTLU[KLJPZPVUZHUKPTWSLTLU[H[PVUVMWVSPJPLZ;OL5VU,_LJ\[P]L+PYLJ[VYZZOHYL[OLPYL_WLYPLUJLHUKL_WLY[PZLHUKNP]LPUKLWLUKLU[PUW\[[VTHQVYKLJPZPVUZPUJS\KPUNMVYT\SH[PVUVMWVSPJPLZHUKZ[YH[LNPLZ[OL`HJ[PUKLWLUKLU[S`HUKVIQLJ[P]LS`PUJHYY`PUN[OLPYK\[PLZ

;OL)VHYKTL[ZL]LU[PTLZK\YPUN[OLUHUJPHS`LHYLUKLK1\UL

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Board Committees

;OL )VHYK OHZ KLSLNH[LK JLY[HPU M\UJ[PVUZ [V [OL *VTTP[[LLZ P[Z LZ[HISPZOLK [V HZZPZ[ PU [OL L_LJ\[PVU VM P[ZYLZWVUZPIPSP[PLZ;OL)VHYK*VTTP[[LLZHYLLU[Y\Z[LK^P[OZWLJPJYLZWVUZPIPSP[PLZ[VV]LYZLL[OL*VTWHU`ZHMMHPYZ;OLYLSL]HU[)VHYK*VTTP[[LLZLZ[HISPZOLKHYLHZMVSSV^Z!

P (\KP[*VTTP[[LLPP 5VTPUH[PVU*VTTP[[LLPPP 9LT\ULYH[PVU*VTTP[[LLP] 9PZR4HUHNLTLU[*VTTP[[LL

;OLK\[PLZHUKYLZWVUZPIPSP[PLZVM[OL5VTPUH[PVUHUK9LT\ULYH[PVU*VTTP[[LLZHYL[VHZZPZ[[OL)VHYKPUYL]PL^PUNHUKYLJVTTLUKPUN[OLHWWVPU[TLU[VMJHSPILYJHUKPKH[LPYYLZWLJ[P]LVMNLUKLYHUKL]HS\H[PVUVM[OLWLYMVYTHUJLVM[OL+PYLJ[VYZ;OL`HSZVHZZLZZ[OLHWWYVWYPH[LYLT\ULYH[PVUWVSPJPLZHWWSPJHISL[V+PYLJ[VYZ*OPLM,_LJ\[P]L6MJLY4HUHNPUN+PYLJ[VYHUKZLUPVYTHUHNLTLU[

;OLHJ[P]P[PLZVM[OL5VTPUH[PVUHUK9LT\ULYH[PVU*VTTP[[LLZMVY[OLUHUJPHS`LHYHYLPUJS\KLKPU[OLMVSSV^PUN!

(i) reviewed the bonus and incentives of Directors and senior management of the Group;(ii) assessed and evaluated the effectiveness of Directors through the annual Board evaluation (including the

independence of Independent Non-Executive Directors);(iii) reviewed the letter of employment of senior management staff;(iv) reviewed the composition of the Board and Board Committees of the Group;(v) reviewed the Directors Fees for the Group; and(vi) reviewed the design and allocation of awards of the Employees Share Option Scheme (ESOS)

(SSYLJVTTLUKH[PVUZVM[OL5VTPUH[PVUHUK9LT\ULYH[PVU*VTTP[[LLZHYLZ\IQLJ[[VLUKVYZLTLU[I`[OL)VHYK

;OLYLZWVUZPIPSP[PLZHUKHJ[P]P[PLZVM9PZR4HUHNLTLU[*VTTP[[LLKPZJSVZLKVUWHNLVM[OPZ(UU\HS9LWVY[

(5VTPUH[PVU*VTTP[[LLTLL[PUN^HZOLSKK\YPUN[OLUHUJPHS`LHYHUK^HZH[[LUKLKI`HSSP[ZTLTILYZ

Supply of Information

(SS+PYLJ[VYZHYLZ\WWSPLK^P[OIVHYKWHWLYZWLY[HPUPUN[VHNLUKHP[LTZWYPVY[V[OL)VHYKTLL[PUN;OPZPZPZZ\LKPUZ\MJPLU[[PTL[VLUHISL[OL+PYLJ[VYZ[VVI[HPUM\Y[OLYL_WSHUH[PVUZ^OLUULJLZZHY`PUVYKLY[VILWYVWLYS`IYPLMLKILMVYL[OLTLL[PUN

+PYLJ[VYZOH]LHJJLZZ[V[OLHK]PJLZHUKZLY]PJLZVM[OL.YV\WZ*VTWHU`:LJYL[HY`^OVPZYLZWVUZPISLMVYLUZ\YPUN[OH[)VHYKWYVJLK\YLZHYLMVSSV^LK

Appointments of the Board

;OL5VTPUH[PVU*VTTP[[LLOHZ [OL YLZWVUZPIPSP[` MVYHZZLZZPUNHUKJVUZPKLYPUN [OL YLHWWVPU[TLU[VM [OLL_PZ[PUN+PYLJ[VYZ"HUKMVYPKLU[PM`PUNHUKZLSLJ[PUNWV[LU[PHSUL^+PYLJ[VYZ[V[OL)VHYK;OL5VTPUH[PVU*VTTP[[LLJVUZPKLYZ[OLL_WLYPLUJLZRPSSZHUKX\HSP[PLZVM[OLUL^HUKL_PZ[PUN+PYLJ[VYZ[VLUZ\YLHNVVKIHSHUJLVMZRPSSZHTVUNZ[[OL+PYLJ[VYZZVHZ[VJVU[PU\L[VLUOHUJL[OLLMMLJ[P]LULZZVM[OL)VHYK

STATEMENT ON CORPORATE GOVERNANCE (contd)

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Re-election of the Directors

0U HJJVYKHUJL ^P[O [OL *VTWHU`Z (Y[PJSLZ VM (ZZVJPH[PVU VUL[OPYK VM [OL +PYLJ[VYZ PUJS\KPUN H4HUHNPUN+PYLJ[VYMVY[OL[PTLILPUNVYPM[OLPYU\TILYPZUV[HT\S[PWSLVM[OYLL[OLU[OLU\TILYULHYLZ[[VVUL[OPYKZOHSSYL[PYLMYVTVMJLHUKZOHSSILLSPNPISLMVYYLLSLJ[PVU(SSKPYLJ[VYZPUJS\KPUNH4HUHNPUN+PYLJ[VYZOHSSYL[PYLMYVTVMJLVUJLH[SLHZ[PULHJO[OYLL`LHYZI\[ZOHSSILLSPNPISLMVYYLLSLJ[PVU

;OL*VTWHU`Z(Y[PJSLZ VM (ZZVJPH[PVU HSZV WYV]PKLZ [OH[ HU` KPYLJ[VY HWWVPU[LK K\YPUN [OL `LHY ZOHSS OVSK VMJL\U[PS[OLUL_[HUU\HSNLULYHSTLL[PUNHUKZOHSS[OLUILLSPNPISLMVYYLLSLJ[PVUI\[ZOHSSUV[IL[HRLUPU[VHJJV\U[PUKL[LYTPUPUN[OLKPYLJ[VYZ^OVHYL[VYL[PYLI`YV[H[PVUH[[OH[TLL[PUN

7\YZ\HU[[V:LJ[PVU VM[OL*VTWHUPLZ(J[ KPYLJ[VYV]LY[OLHNLVMZL]LU[``LHYZPZZ\IQLJ[[VYLHWWVPU[TLU[HZKPYLJ[VYVM[OLJVTWHU`[VJVU[PU\LPUVMJLHZHKPYLJ[VY\U[PS[OLUL_[HUU\HSNLULYHSTLL[PUN

Directors Training

;OL)VHYKHJRUV^SLKNLZ[OH[JVU[PU\V\ZLK\JH[PVUPZ]P[HSMVYP[ZTLTILYZ[VNHPUPUZPNO[PU[V[OLZ[H[LVM[OLLJVUVT`[LJOUVSVNPJHSHK]HUJLZSH[LZ[YLN\SH[VY`KL]LSVWTLU[ZHUKTHUHNLTLU[Z[YH[LNPLZ(SSTLTILYZVM[OL)VHYKOH]LH[[LUKLK[OL4HUKH[VY`(JJYLKP[H[PVU7YVNYHTTL

+\YPUN[OLUHUJPHS` LHY\UKLYYL]PL^HSS+PYLJ[VYZOH]LH[[LUKLKZLTPUHYVU 4LKPH[PVU-VY;OL*VUZ[\J[PVU0UK\Z[Y`0UHKKP[PVU4Y6VP3LUN*OVVPHUK4Y-VVUN2\HU4PUNOH]LHSZVH[[LUKLKHM\SSKH`ZLTPUHYVU.:;:LTPUHY-VY:WLJPJ 0UK\Z[YPLZ 7YVWLY[`+L]LSVWTLU[ *VUZ[Y\J[PVU VYNHUPZLK I`.SVIHSHJJ9LZLHYJO ;YHPUPUN :KU )OK^OLYLHZ,UAHOLKPOHZH[[LUKLKHOHSMKH`ZLTPUHYVU .V]LYUTLU[ 0U[LY]LU[PVU PU)\ZPULZZ !:VTL7\ISPJ7VSPJ`0ZZ\LZVYNHUPZLKI`)\YZH[YH:KU)OK

;OL )VHYK TLTILYZ HYL HSZV LUJV\YHNLK [V H[[LUK [YHPUPUN WYVNYHTTLZ HUK ZLTPUHYZ [V RLLW HIYLHZ[ ^P[OKL]LSVWTLU[ZPU[OLTHYRL[WSHJLHUKM\Y[OLYLUOHUJL[OLPYWYVMLZZPVUHSPZTHUKRUV^SLKNL

DIRECTORS REMUNERATION

Remuneration Policy

;OLYLT\ULYH[PVUVM[OL+PYLJ[VYZPZKL[LYTPULKH[SL]LSZ^ OPJOLUHISL[OL*VTWHU`[VH[[YHJ[HUKYL[HPU+PYLJ[VYZ^ P[O[OLYLSL]HU[L_WLYPLUJLHUKL_WLY[PZLULLKLK[VY\U[OL.YV\WZ\JJLZZM\SS`;OLJVTWVULU[WHY[ZVMYLT\ULYH[PVUHYLZ[Y\J[\YLKZVHZ[VSPURYL^HYKZ[VJVYWVYH[LHUKPUKP]PK\HSWLYMVYTHUJLPU[OLJHZLVM,_LJ\[P]L+PYLJ[VYZ0U[OLJHZLVM5VU,_LJ\[P]L+PYLJ[VYZ[OLSL]LSVMYLT\ULYH[PVUYLLJ[Z[OLL_WLYPLUJLHUKSL]LSVMYLZWVUZPIPSP[PLZ\UKLY[HRLUI`[OLPUKP]PK\HS5VU,_LJ\[P]L+PYLJ[VYZJVUJLYULK

Remuneration Procedure

;OL9LT\ULYH[PVU*VTTP[[LLPZYLZWVUZPISLMVYTHRPUNYLJVTTLUKH[PVUZ[V[OL)VHYKVUYLT\ULYH[PVUWHJRHNLZHUKILUL[ZL_[LUKLK[V[OL,_LJ\[P]L+PYLJ[VYZ;OLYLT\ULYH[PVUWHJRHNLVM5VU,_LJ\[P]L+PYLJ[VYZ^PSSILKLJPKLKI`[OL)VHYKHZH^OVSL^P[O[OL+PYLJ[VYZJVUJLYULKYLX\PYLK[VHIZ[HPUMYVT[OLKLSPILYH[PVUZHUK]V[PUNVUKLJPZPVUZPUYLZWLJ[VM[OLPUKP]PK\HSZYLT\ULYH[PVU

;OLKL[LYTPUH[PVUVM[OLYLT\ULYH[PVUVM[OL5VU,_LJ\[P]L+PYLJ[VYZPZHTH[[LYMVY[OL)VHYKHZH^OVSLZ\IQLJ[[VHWWYV]HSI`[OLZOHYLOVSKLYZVM[OL*VTWHU`H[[OL(UU\HS.LULYHS4LL[PUN

STATEMENT ON CORPORATE GOVERNANCE (contd)

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Disclosure

;OLHNNYLNH[LYLT\ULYH[PVUVM+PYLJ[VYZMVY[OLUHUJPHS`LHYLUKLK1\ULPZHZMVSSV^Z!

Fees Salaries Bonus BIK EPF ESOS Total

RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 RM 000

,_LJ\[P]L+PYLJ[VYZ 5VU,_LJ\[P]L+PYLJ[VYZ

Executive Directors Non-Executive Directors

)LSV^94 94[V94 94[V94 94[V94 Annual General Meeting and Dialogue with Shareholders

;OL)VHYKPZH^HYLVM[OLPTWVY[HUJLVM[OL[PTLS`HUKHJJ\YH[LKPZJSVZ\YLVMTH[LYPHSPUMVYTH[PVU[VZOHYLOVSKLYZHUKPU]LZ[VYZVM[OL.YV\W

;OL*VTWHU`YLHJOLZV\[[VP[ZZOHYLOVSKLYZ[OYV\NO[OLPZZ\HUJLVM(UU\HS9LWVY[,_WSHUH[VY`*PYJ\SHYZHUK\WKH[LZVU[OL*VTWHU`HYLWYV]PKLK[OYV\NO[OLX\HY[LYS`YLWVY[ZHUUV\UJLK[V[OL)\YZH:LJ\YP[PLZ;OL(UU\HS.LULYHS4LL[PUNPZ[OLWYPUJPWHSMVY\TMVYKPHSVN\LHUKPU[LYHJ[PVU^P[O[OLZOHYLOVSKLYZVM[OL*VTWHU`)LZPKLZ[OL\Z\HSHNLUKHVM[OL(UU\HS.LULYHS4LL[PUN[OL)VHYKWYLZLU[Z[OLWYVNYLZZHUKWLYMVYTHUJLVM[OLI\ZPULZZ;OLYLHM[LYthe shareholders are presented with the opportunity to participate in question and answer sessions with the Directors. ;OL*OHPYTHUHUK^OLYLHWWYVWYPH[L[OL,_LJ\[P]L+PYLJ[VYZ^PSSYLZWVUK[VHU`X\LZ[PVUZYHPZLKK\YPUN[OLTLL[PUN

0U[OLYLLSLJ[PVUVM+PYLJ[VYZ[OL)VHYK^PSSLUZ\YL[OH[[OYV\NO[OLUV[PJLVMTLL[PUNM\SSPUMVYTH[PVUPZKPZJSVZLKVU+PYLJ[VYZ^OVHYLYL[PYPUNHUK^PSSPUN[VJVU[PU\L[VZLY]LPMYLLSLJ[LK

,HJOP[LTVMZWLJPHSI\ZPULZZPUJS\KLKPU[OLUV[PJLVMTLL[PUN^PSSILHJJVTWHUPLKI`HM\SSL_WSHUH[PVUVM[OLLMMLJ[ZVMHWYVWVZLKYLZVS\[PVU;OPZPZ[VMHJPSP[H[LHIL[[LY\UKLYZ[HUKPUNHUKL]HS\H[PVUVM[OLPZZ\LZPU]VS]LK

ACCOUNTABILITY AND AUDIT

Financial Reporting

;OL )VHYKZ HPTZ [V WYV]PKL HUK WYLZLU[ H IHSHUJLK HUK \UKLYZ[HUKHISL HZZLZZTLU[ VM [OL .YV\WZ UHUJPHSWLYMVYTHUJLHUKWYVZWLJ[Z H[ [OL LUKVM [OL UHUJPHS `LHY WYPTHYPS` [OYV\NO [OL HUU\HS UHUJPHS Z[H[LTLU[Z HUKX\HY[LYS`HUUV\UJLTLU[VMYLZ\S[Z[VZOHYLOVSKLYZHZ^LSSHZ[OL*OHPYTHUZZ[H[LTLU[HUKYL]PL^VMVWLYH[PVUZPUthe annual report.

STATEMENT ON CORPORATE GOVERNANCE (contd)

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Internal Control

0UMVYTH[PVUVU[OL.YV\WZPU[LYUHSJVU[YVSPZWYLZLU[LKPU[OL:[H[LTLU[VU9PZR4HUHNLTLU[HUK0U[LYUHS*VU[YVSSHPKV\[VUWHNL[VVM[OPZ(UU\HS9LWVY[

Relationship with the Auditors

;OYV\NO [OL (\KP[ *VTTP[[LL [OL *VTWHU` OHZ LZ[HISPZOLK H [YHUZWHYLU[ HUK HWWYVWYPH[L YLSH[PVUZOPW ^P[O [OL*VTWHU`ZL_[LYUHSH\KP[VYZ;OLL_[LYUHSH\KP[VYZTLL[HUKYLWVY[[OLPYUKPUNZ[V[OL(\KP[*VTTP[[LLW\YZ\HU[[V[OLPYH\KP[MVYLHJOUHUJPHS`LHY

;OL9LWVY[VM[OL(\KP[*VTTP[[LLPZZL[V\[PUWHNLZ[VVM[OPZ(UU\HS9LWVY[

Compliance with the Code

;OL)VHYKOHZ[V[OLILZ[VMP[ZHIPSP[`HUKRUV^SLKNLJVTWSPLK^P[O[OL4HSH`ZPHU*VKLVU*VYWVYH[L.V]LYUHUJL;OL)VHYKL_WLJ[Z[VJVU[PU\L[VPTWYV]LHUKLUOHUJL[OLWYVJLK\YLZMYVT[PTL[V[PTLLZWLJPHSS`PUIV[OJVYWVYH[LNV]LYUHUJLHUKYPZRTHUHNLTLU[HUKPU[LYUHSJVU[YVS

STATEMENT ON CORPORATE GOVERNANCE (contd)

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14CORPORATE SOCIAL RESPONSIBILITY

-HQHYIHY\)\PSKLY.YV\W)OK-).PZM\SS`JVTTP[[LK[VLUZ\YPUN[OLPU[LYLZ[ZVMP[ZJSPLU[ZLTWSV`LLZZOHYLOVSKLYZHUKZVJPL[`[OYV\NOWYHJ[PJHSWYHJ[PJLZVM*VYWVYH[L:VJPHS9LZWVUZPIPSP[`*:9>L[OLYLMVYLHKKYLZZHUKTVUP[VYHSSHZWLJ[ZVM*:9[OH[HYLYLSL]HU[[VV\YI\ZPULZZ^OPJOPUJS\KLJVUJLYUMVYLTWSV`LL^LSMHYLJHYLMVY[OLLU]PYVUTLU[HUKJVTT\UP[`PU]VS]LTLU[;OL.YV\WILSPL]LZPU[OLWYPUJPWSLZVM:\Z[HPUHISL+L]LSVWTLU[HUKPZHS^H`ZRLLUVUIHZPUNP[ZKLJPZPVUZVU[OLZVJPHSJVUZLX\LUJLZVMP[ZHJ[P]P[PLZ

Shareholders;OLPU[LYLZ[VM[OLZOHYLOVSKLYZPZHS^H`ZVMWHYHTV\U[PTWVY[HUJL[V\Z>LOH]LWSHJLKNYLH[LTWOHZPZPUNLULYH[PUNNVVKWYV[ZHUKLUZ\YPUN[OH[V\YZOHYLOVSKLYZLUQV`HMHPYYL[\YUVU[OLPYPU]LZ[TLU[>LHSZVLUZ\YL[OH[ZOHYLOVSKLYZHUK[OLW\ISPJHYLHS^H`ZRLW[HIYLHZ[VMKL]LSVWTLU[ZPU[OLJVTWHU`(SSPTWVY[HU[KLJPZPVUZJVUJLYUPUN[OL.YV\WHYLKPZZLTPUH[LKPTTLKPH[LS`]PHHUUV\UJLTLU[Z[V)\YZH4HSH`ZPH:OHYLOVSKLYZHYLHSZVLUJV\YHNLK[VH[[LUKV\Y(UU\HS.LULYHS4LL[PUN(.4[VOH]LLMMLJ[P]LKPHSVN\L^P[O[OL)VHYK

Customers-).OH]LHS^H`ZTHPU[HPULKHNVVKYLSH[PVUZOPW^P[OJ\Z[VTLYZ;OLWYV]PZPVUVM[PTLS`NVVKX\HSP[`WYVK\J[ZH[[OLYPNO[JVZ[PZHNP]LUPU[OL.YV\W)LPUNPU[OLJVUZ[Y\J[PVUPUK\Z[Y`OLHS[OHUKZHML[`HYL[OLRL`YLZWVUZPIPSP[PLZVM[OL.YV\W(ZZ\JO]HYPV\ZZ[HUKHYKZWVSPJPLZILZ[WYHJ[PJLZHUKWYVJLK\YLZVUX\HSP[`OLHS[OHUKZHML[`NVVKJVYWVYH[LNV]LYUHUJLHUKZ[HRLOVSKLYLUNHNLTLU[OH]LILLUHKVW[LK

Employees-).HZH.YV\WOH]LHS^H`ZYLJVNUPaLK[OLPTWVY[HU[YVSLWSH`LKI`[OLLTWSV`LLZ6\YTHPUHZZL[ZHYL[OL[HSLU[ZHUKZRPSSZVM[OLWLVWSL^LLTWSV`;OLLTWSV`LLZ^LSMHYLPZ\Z\HSS`H[[OL[VWVMHU`HNLUKHPU[OLVYNHUPaH[PVU;OL.YV\WHPTZ [VH[[YHJ[ YL[HPUHUKTV[P]H[L [OLOPNOLZ[JHSPILYVMLTWSV`LLZHUKLUJV\YHNLZ [OLPYJVU[YPI\[PVUHUK KL]LSVWTLU[ (U LU]PYVUTLU[ [OH[ MVZ[LYZ PUUV]H[PVU HUK JVSSHIVYH[PVU PZ JYP[PJHS [V [OL*VTWHU`Z Z\JJLZZ(WWYVWYPH[LJHYLLYWH[OZHUK PU[LYUHS YLJVNUP[PVUWYVNYHTTLZHYLKL]LSVWLK MVYIV[O [LJOUPJHSHUKUVU[LJOUPJHSZ[HMM,TWSV`LLZHYLWYV]PKLK^P[OU\TLYV\ZSLHYUPUNHUKKL]LSVWTLU[VWWVY[\UP[PLZ[VM\SSS[OLPYWV[LU[PHS;OLZLKL]LSVWTLU[VWWVY[\UP[PLZHYLZ[Y\J[\YLK[VHSPNU^ P[OV\YVYNHUPZH[PVUHSVIQLJ[P]LZHUK[VOLSWLTWSV`LLZPUM\Y[OLYPUNtheir career aspirations.

General Community;OL*VTWHU`JVUK\J[LKZWLJPHSPaLK*:9HJ[P]P[PLZ^P[O SVJHSJVTT\UP[PLZHUK[OLZL*:9WYVNYHTTLZILJHTLHWSH[MVYT^OLYL[OL*VTWHU`LUNHNLK^P[O[OLJVTT\UP[PLZ[VZOHYLHU`JVUJLYU[OH[[OL`TH`OH]L^P[OYLNHYKZ[VV\YVWLYH[PVUZ[VHSSH`HU`KV\I[VYMLHYHUKI\PS[YHWWVY[^P[OZ[HRLOVSKLYZ

.VVKLU]PYVUTLU[HSWYHJ[PZLHUK[OLPTWHJ[[OH[V\YVWLYH[PVUZOH]LVU[OLLU]PYVUTLU[HYLVMNYLH[PTWVY[HUJL[V-).7YV]PZPVUVM[OLZLZLY]PJLZPZV\Y^H`VMJVU[YPI\[PUN[V[OLLU]PYVUTLU[I`LUZ\YPUNYLZWLJ[MVY[OLLHY[OHZ[OL5H[PVUWYVNYLZZLZ>OLYLWVZZPISLI\ZPULZZ\UP[ZTVUP[VYLULYN`JVUZ\TW[PVUHUKHSSI\ZPULZZ\UP[ZJVU[PU\L[V[HRLWVZP[P]LZ[LWZ[VYLK\JLLULYN`JVUZ\TW[PVUZ\JOHZIL[[LYZWHJL\[PSPZH[PVUHUKTVYLLMJPLU[Y\UUPUNVMLX\PWTLU[HUKTHJOPULY`

0USPUL^P[O[OLHK]LYZLLJVUVTPJJSPTH[L[OL.YV\WZZVJPHSYLZWVUZPIPSP[`MVJ\ZMVY[OLWLYPVKZOPM[LK[V[OLKPYLJ[ILUL[VMLTWSV`LLZ-VY[OLWLYPVK\UKLYYL]PL^[OLMYLX\LUJ`VMPU[LYUHSZVJPHSHJ[P]P[PLZPUJYLHZLK^ P[O[OLVIQLJ[P]LVMPUJ\SJH[PUNHIHSHUJLK^VYRSPML^P[OLTWOHZPZVUMVZ[LYPUNIL[[LYYLSH[PVUZOPWHTVUNVULHUV[OLYHUKI\PSKPUNHOHWW`MHTPS`H[OVTL

;OL.YV\WOHZJVU[YPI\[LK[V[OL*OPULZL:JOVVS;LHJOLYZ(ZZVJPH[PVU2\HSH3\TW\Y)>HYNH,THZ7LYZH[\HU)LRHZ7VSPZ4HSH`ZPH5LNLYP:LSHUNVY7LYZH[\HU)LYKPRHYP:LYLTIHU5LNLYP:LTIPSHU3LTIHNH7LUN\Y\Z:12*:HU4PU70).:12*2\LU*OLUN;OL2\HSH3\TW\YHUK:LSHUNVY*OPULZL(ZZLTIS`/HSS7LYZH[\HU7LYRLTIHUNHUAOP5LUN4HSH`ZPHHUKL[J

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STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

;OL4HSH`ZPHU*VKLVU*VYWVYH[L.V]LYUHUJLYLX\PYLZ SPZ[LKJVTWHUPLZ [VTHPU[HPUHZV\UKZ`Z[LTVM YPZRTHUHNLTLU[HUK PU[LYUHSJVU[YVS [VZHMLN\HYKZOHYLOVSKLYZ PU[LYLZ[HUK [OL*VTWHU`ZHZZL[Z;OPZZ[H[LTLU[ PZWYLWHYLKPUHJJVYKHUJL^P[OWHYHNYHWOIVM[OL4HPU4HYRL[3PZ[PUN9LX\PYLTLU[Z39HUKHZN\PKLKI`.\PKLSPULZ MVY+PYLJ[VYZVM 3PZ[LK 0ZZ\LY :[H[LTLU[VU9PZR4HUHNLTLU[ HUK 0U[LYUHS*VU[YVS VM)\YZH4HSH`ZPHSecurities Berhad.

BOARDS RESPONSIBILITY

;OL)VHYK HJRUV^SLKNLZ P[Z V]LYHSS YLZWVUZPIPSP[PLZ MVYTHPU[HPUPUN H ZV\UK YPZRTHUHNLTLU[ HUK PU[LYUHS JVU[YVSZ`Z[LTZHUKMVYYL]PL^PUN[OLPYHKLX\HJ`HUKLMMLJ[P]LULZZZVHZ[VZHMLN\HYKZOHYLOVSKLYZPU[LYLZ[ZHUKWYV[LJ[PUN[OL .YV\WZ HZZL[Z ;OL PU[LYUHS JVU[YVS Z`Z[LTZ JV]LY UV[ VUS` UHUJPHS JVU[YVS I\[ VWLYH[PVUHS HUK JVTWSPHUJLcontrols.

;OL YPZRTHUHNLTLU[WYVJLZZHUK [OLZ`Z[LTVM PU[LYUHSJVU[YVS PU]VS]LL]LY`I\ZPULZZ\UP[ZHUK [OLPY YLZWLJ[P]LRL`THUHNLTLU[ PUJS\KPUN [OL)VHYKHUKHYLKLZPNULK [VTLL[ [OL.YV\WZWHY[PJ\SHYULLKZHUK [VTHUHNL [OLYPZRZ[V^OPJOP[PZL_WVZLK;OLZ`Z[LTPZKLZPNULK[VPKLU[PM`HUKTHUHNLYH[OLY[OHULSPTPUH[L[OLYPZRVMMHPS\YL[VHJOPL]LI\ZPULZZVIQLJ[P]LZ;OLZ`Z[LTZLY]LZ[VWYV]PKLYLHZVUHISLI\[UV[HIZVS\[LHZZ\YHUJLHNHPUZ[TH[LYPHSTPZZ[H[LTLU[VYSVZZLZ

;OL.YV\WOHKPTWSLTLU[LKHMVYTHSHWWYVHJO[V^HYKZPKLU[PM`PUNL]HS\H[PUNTVUP[VYPUNHUKTHUHNPUN[OLZPNUPJHU[YPZRZHMMLJ[PUN[OLHJOPL]LTLU[VMP[ZI\ZPULZZVIQLJ[P]LZHUKPZHUVUNVPUNWYVJLZZ

RISK MANAGEMENT FRAMEWORK

;OL)VHYKYLJVNUPZLK[OLYPZRTHUHNLTLU[HZHUPU[LNYHSWHY[VMZ`Z[LTVMPU[LYUHSJVU[YVSHUKNVVKTHUHNLTLU[WYHJ[PJL PUW\YZ\P[VM P[Z Z[YH[LNPJVIQLJ[P]LZHUKTHPU[HPUZHUVUNVPUNJVTTP[TLU[ MVY PKLU[PM`PUN L]HS\H[PUNHUKTHUHNPUNZPNUPJHU[YPZRZMHJLKI`[OL.YV\WK\YPUN[OLUHUJPHS`LHY\UKLYYL]PL^:PNUPJHU[YPZRZ^LYLPKLU[PLKHUKHZZLZZLKPU[LYTZVMSPRLSPOVVKVM[OLPYVJJ\YYLUJLHUK[OLPTWHJ[VU[OLHJOPL]LTLU[VM[OL.YV\WZI\ZPULZZHUKJVYWVYH[LVIQLJ[P]LZ

9PZRTHUHNLTLU[ VM [OL .YV\WZ VWLYH[PVUZ PZ KLSLNH[LK [V [OL 9PZR4HUHNLTLU[ *VTTP[[LL [OL *VTTP[[LLJVTWYPZPUN,_LJ\[P]L+PYLJ[VYZHUK:LUPVY4HUHNLTLU[;OL.YV\W9PZR4HUHNLTLU[*VTTP[[LL^HZMVYTLK[V[HRLMVYTHSL_LJ\[P]LYLZWVUZPIPSP[`MVYYPZRTHUHNLTLU[I\PSKPUN\WVUHSYLHK`LZ[HISPZOLKZ[Y\J[\YLZHUKTLJOHUPZT

;OL*VTTP[[LLOHKILLULZ[HISPZOLK^P[O[OLYLZWVUZPIPSP[`[VPKLU[PM`HUKJVTT\UPJH[L[V[OL)VHYKVM+PYLJ[VYZ[OLJYP[PJHSZ[YH[LNPJI\ZPULZZYPZRZIV[OWYLZLU[HUKWV[LU[PHS[OL.YV\WMHJLZ[OLPYJOHUNLZHUK[OLTHUHNLTLU[HJ[PVUWSHUZ[VTHUHNL[OLYPZRZ

;OL*VTTP[[LL[VNL[OLY^P[O[OLYLZWLJ[P]LOLHKZVM[OL.YV\WZI\ZPULZZ\UP[HYLYLZWVUZPISLMVYPTWSLTLU[PUN[OLWYVJLZZLZ MVY PKLU[PM`PUNL]HS\H[PUNTVUP[VYPUNHUK YLWVY[PUNVM YPZRZHUK PU[LYUHSJVU[YVS [HRPUNHWWYVWYPH[LHUK[PTLS`JVYYLJ[P]LHJ[PVUZHZULLKLK

*OHUNLZPU[OLRL`I\ZPULZZYPZRZMHJLKI`[OL.YV\WVYLTLYNLUJLVMUL^RL`I\ZPULZZYPZRZHUK[OLJVYYLZWVUKPUNPU[LYUHSJVU[YVSZHYLKPZJ\ZZLKK\YPUNTHUHNLTLU[TLL[PUNZ^P[OTH[LYPHSJOHUNLZPU[OLRL`I\ZPULZZYPZRZMHJLKI`[OL.YV\WVYLTLYNLUJLVMUL^RL`I\ZPULZZYPZRZHYLOPNOSPNO[LK[V[OL)VHYKI`[OL:LUPVY4HUHNLTLU[PMHU`

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;V[OPZLUKH.YV\WZ9PZR4L[OVKVSVN`OHKILLUPZZ\LK[V[OLOLHKZVM[OL.YV\WZI\ZPULZZ\UP[Z^OV^PSSPKLU[PM`[OLYPZRZPUOLYLU[[V[OLPYYLZWLJ[P]LI\ZPULZZ\UP[ZHUK[OLHWWYVWYPH[LTLHZ\YLZHUKZ[YH[LNPLZ[VHJOPL]L[OLV]LYHSSVIQLJ[P]LZVM[OLI\ZPULZZ\UP[Z

( KH[HIHZL VM Z[YH[LNPJ YPZRZ PKLU[PLK HUK HWWYVWYPH[L JVU[YVSZ OHZ ILLU JYLH[LK HUK [OL PUMVYTH[PVU S[LYLK [VWYVK\JL H KL[HPSLK YPZR YLNPZ[LYZJVYLJHYK HUK PUKP]PK\HS YPZR WYVSLZ MVY [OL YLZWLJ[P]L I\ZPULZZ \UP[Z ^OPJO PZcontinuously updated.

2L`YPZRZ[VLHJOI\ZPULZZ\UP[ZVIQLJ[P]LZHSPNULK^P[O[OL.YV\WZZ[YH[LNPJVIQLJ[P]LZHYLPKLU[PLKHUKZJVYLKMVYSPRLSPOVVKVM[OLYPZRZVJJ\YYPUNHUK[OLTHNUP[\KLVM[OLPTWHJ[

;OL YPZRZ WYVSL VM [OL YLSL]HU[ I\ZPULZZ \UP[Z OH]L ILLU [HISLK [V [OL.YV\W9PZR4HUHNLTLU[*VTTP[[LL^P[OOPNOSPNO[ZVU[OLRL`I\ZPULZZYPZR[OLPYJH\ZLZHUKTHUHNLTLU[HJ[PVUWSHUZ[OLYLVU

(U`THQVYJOHUNLZ[VYPZRVYLTLYNPUNZPNUPJHU[YPZRMVYHU`VM[OLI\ZPULZZ\UP[ZPU[OL.YV\W^P[O[OLHWWYVWYPH[LHJ[PVUZHUKVYZ[YH[LNPLZ[VIL[HRLU^PSSILIYV\NO[[V[OLH[[LU[PVUVM[OL)VHYK

INTERNAL CONTROL

;OLPU[LYUHSJVU[YVSZ`Z[LTPZKLZPNULK[VLUHISL[OL.YV\W[VTHUHNLYH[OLY[OHU[VLSPTPUH[L[OLYPZRVMMHPS\YL[VHJOPL]LI\ZPULZZVIQLJ[P]LZ ;OL PU[LYUHS JVU[YVS Z`Z[LTJHUVUS`WYV]PKL YLHZVUHISLHUKUV[ HIZVS\[LHZZ\YHUJLHNHPUZ[TH[LYPHSTPZZ[H[LTLU[HUKSVZZ

Key Processes

;OL)VHYKJVUYTZ[OH[[OLYLPZHJVU[PU\V\ZWYVJLZZMVYPKLU[PM`PUNL]HS\H[PUNHUKTHUHNPUN[OLZPNUPJHU[YPZRZVM[OL.YV\W^OPJOOHZILLUPUWSHJLMVY[OLUHUJPHS`LHY\UKLYYL]PL^HUK\W[VKH[LVMHWWYV]HSVM[OLHUU\HSYLWVY[HUKUHUJPHSZ[H[LTLU[

;OLWYVJLZZPZYLN\SHYS`YL]PL^LKI`[OL)VHYKHUKPZPUHJJVYKHUJL^P[O[OLN\PKHUJLHZJVU[HPULKPU[OL:[H[LTLU[VM0U[LYUHS*VU[YVS!.\PKHUJLMVY+PYLJ[VYZVM7\ISPJ3PZ[LK*VTWHUPLZ

;OLRL`WYVJLZZLZ[OH[[OL+PYLJ[VYZOH]LLZ[HISPZOLKPUYL]PL^PUN[OLHKLX\HJ`HUKPU[LNYP[`VM[OLZ`Z[LTVMPU[LYUHSJVU[YVSHYLHZMVSSV^Z!

s The Management performs regular reviews of the business processes to assess the effectiveness of the internal controls and procedures. During the year under review, measures to enhance the internal audit function include recruiting personnel with appropriate internal audit work experience. The internal auditor reports to the Audit Committee directly at least once a year.

s The Management is responsible for the regular identication, evaluation and managing of signicant risks within their areas of responsibility. A formal risk assessment was conducted by the management team during the nancial year. The objective was to identify principal risks and to ensure an appropriate risk assessment and evaluation framework and activities of the Group.

(UHUU\HSWSHUPZ[OLUHNYLLK[VYL]PL^[OLLMMLJ[P]LULZZVM[OL.YV\WZZ`Z[LTVMPU[LYUHSJVU[YVSHUKTP[PNH[LTHPUYPZRZPUJS\KPUNUHUJPHSVWLYH[PVUHSHUKJVTWSPHUJLYPZRZ

s The Board receives and reviews regular and comprehensive information covering nancial performance and key business indicators.

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL (contd)

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s The management performs regular reviews of the Groups business and operational activities. There is a comprehensive budgeting system for the core business of the Group with budgets approved by the authorised personnel. The status of the core operations are reported monthly and analysed against to the planned schedule on timely manner.

s The quality of staff is enhanced through a rigorous recruitment process, performance appraisal and annual training programs.

s The Group has a clearly dened organisation structure with clear lines of responsibility supported by written job description, procedures, operating manuals as well as a code of conduct. These are updated to meet changing business needs or processes.

REVIEW OF EFFECTIVENESS

;OL)VHYK OHZ YLJLP]LK HZZ\YHUJL MYVT [OL,_LJ\[P]L+PYLJ[VYZ [OH[ [OL Z`Z[LTVM YPZRTHUHNLTLU[ HUK PU[LYUHSJVU[YVS MVY [OL UHUJPHS `LHY \UKLY YL]PL^ PZ VWLYH[PUN HKLX\H[LS` HUK LMMLJ[P]LS` ;OL)VHYK PZ ZH[PZLK^P[O [OLWYVJLK\YLZV\[SPULKHIV]LHUK[OL)VHYK^PSSJVU[PU\L[VYL]PL^[OLLMMLJ[P]LULZZVM[OL.YV\WZYPZRTHUHNLTLU[HUKPU[LYUHSJVU[YVSZ`Z[LT

;OPZZ[H[LTLU[OHZILLUK\S`YL]PL^LKI`[OLL_[LYUHSH\KP[VYZHUKPZTHKLPUHJJVYKHUJL^P[OHYLZVS\[PVUVM[OL)VHYKVM+PYLJ[VYZKH[LK6J[VILYW\YZ\HU[[VWHYHNYHWOIVM[OL39VM)\YZH:LJ\YP[PLZ

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL(contd)

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14DIRECTORS RESPONSIBILITY STATEMENT

0U YLZWLJ[VM [OLWYLWHYH[PVUVM [OLH\KP[LKUHUJPHSZ[H[LTLU[Z HZYLX\PYLK\UKLY7HYHNYHWOHVM [OL4HPU4HYRL[3PZ[PUN9LX\PYLTLU[Z!

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REPORT OF THE AUDIT COMMITTEE

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MEMBERS AND MEETINGS

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Audit Committee Members Status of Directorship Attendance of Meetings

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1. Reviewed the audited nancial statements for the year ended 30 -une 2014 and unaudited quarterly nancial results announcement of the Group, prior to the Boards approval.

2. Reviewing with the External Auditors the scope of work and results of their examination together with the actions taken thereon.

3. Reviewing the scope and results of the Internal Audit procedures and reports as well as to recommend any necessary action to be taken by management.

4. Monitoring and reviewing the Financial and Operations Reports.5. Reviewing any related party transaction that may arise within the Group of the Company.6. 9eried allocation of employees share options at the end of each nancial year end pursuant to Regulation 8.17

(2) of the Main Market Listing Requirements.

TERMS OF REFERENCE

The terms of reference of the Committee are as follows:

The Committee shall be appointed by the Board from among their numbers and shall consists of not less than three (3) members. All the Committee member must be non-executive Directors with a majority of them being independent.

The Chairman shall be an independent non-executive director. No alternate directors of the Board shall be appointed as a member of the Committee. At least one member of the Committee must be a member of the Malaysian Institute of Accountants or if he is not, then he must be a person who complies with the requirements of Paragraph 15.09 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

In the event of any vacancy in the Committee resulting in non compliance of subparagraph 15.09 (1) of the Main Market Listing Requirements, the vacancy must be lled within three (3) months. The term of ofce and performance of the Committee and each of the members shall be reviewed by the Board of Directors at least once every three (3) years to determine whether the Committee and its members have carried out their duties in accordance with the Terms of Reference.

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Responsibilities and Duties

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V\[ILSV^HUK[OLYLHM[LY[VZ\ITP[[OLT[V[OL)VHYK!(a) any changes in accounting policies and practices;(b) signicant adjustments arising from the audit;(c) the going concern assumption; and(d) compliance with accounting standards and regulatory requirements.

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STATEMENT BY THE AUDIT COMMITTEE IN RELATION TO ESOS ALLOCATION

During the nancial year, the Committee has administered the Employees Share Option Scheme (ESOS). Shares options had been offered and granted to eligible employees of the Group pursuant to the criteria as set out in the by-laws of the Companys ESOS. The Audit Committee had reviewed the allocation of the share options granted and noted that they were made in compliance with the by-laws of the Companys ESOS. INTERNAL AUDIT FUNCTION

The Company has an In-house Internal Audit Department whose principal responsibility is to undertake regular and systematic reviews of the systems of nancial and operational controls so as to provide reasonable assurance that such systems continue to operate satisfactorily and effectively. The total cost incurred during the year is RM96,000. The attainment of such objectives involves the following activities being carried out:-1. reviewing and appraising the soundness, adequacy and application of accounting, nancial and other controls

promoting effective control in the Company and the Group at reasonable cost;2. ascertaining the extent of compliance with established policies, procedures and statutory requirements;3. ascertaining the extent to which the Group and the Companys assets are accounted for and safeguarded;4. appraising the reliability of information developed within the Group and the Company for management;5. recommending improvements to the existing system of controls;6. reviewing the effectiveness and efciency of operations; and carrying out investigations and special reviews

requested by management and / or Audit Committee.

REPORT OF THE AUDIT COMMITTEE (contd)

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DIRECTORS REPORT

The directors hereby submit their report and the audited nancial statements of the Group and of the Company for the nancial year ended 30 June 2014.

PRINCIPAL ACTIVITIES

The Company is principally engaged in the businesses of investment holding and provision of management services. The principal activities of the subsidiaries are set out in Note 5 to the nancial statements. There have been no signicant changes in the nature of these activities during the nancial year.

RESULTS

The Group The Company RM RM Prot/(Loss) after taxation for the nancial year 2,929,786 (374,557)

Attributable to:- Owners of the Company 3,026,713 (374,557)Non-controlling interests (96,927) - 2,929,786 (374,557)

DIVIDENDS

No dividend was paid since the end of the previous nancial year and the directors do not recommend the payment of any dividend for the current nancial year.

RESERVES AND PROVISIONS

All material transfers to or from reserves or provisions during the nancial year are disclosed in the nancial statements.

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ISSUES OF SHARES AND DEBENTURES

During the nancial year,

(a) there were no changes in the authorised share capital of the Company;

(b) the Company increased its issued and paid-up share capital from RM95,845,889 to RM110,152,370 by the issuance of:-

(i) 6,370,000 new ordinary shares of RM0.50 each pursuant to the exercise of share options under the Employees Share Option Scheme at an exercise price of RM0.52 per ordinary share for cash;

(ii) 22,242,962 new ordinary shares of RM0.50 each pursuant to the exercise of warrants at an exercise price of RM0.50 per ordinary share for cash; and

(c) there were no issues of debentures by the Company.

The new ordinary shares issued rank pari passu in all respects with the existing ordinary shares of the Company.

TREASURY SHARES

The shares purchased are being held as treasury shares in accordance with Section 67A of the Companies Act 1965 in Malaysia.

During the nancial year, the Company purchased 5,100 of its issued ordinary shares from the open market at a weighted average price of approximately RM0.64 per share. The total consideration paid for the purchase including transaction costs amounted to RM3,296.

As at 30 June 2014, the Company held a total of 1,048,164 treasury shares out of the total 220,304,740 issued and fully paid-up ordinary shares. The treasury shares are held at a carrying amount of RM1,129,872.

Relevant details on the treasury shares are disclosed in Note 19 to the nancial statements.

OPTIONS GRANTED OVER UNISSUED SHARES

During the nancial year, no options were granted by the Company to any person to take up any unissued shares in the Company.

DIRECTORS REPORT(contd)

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RIGHTS ISSUE AND WARRANTS

On 21 October 2008, the Company issued a renounceable rights issue of 45,098,775 new ordinary shares of RM0.50 each with 45,098,775 free detachable new warrants on the basis of one (1) rights share and one (1) warrant for every two (2) ordinary shares of RM0.50 each in the Company at an issue price of RM0.50 per rights share. These warrants were listed on the Bursa Malaysia Securities Berhad on 28 October 2008. The issuance resulted in proceeds amounting to RM22,162,962 (net of costs of issuance of rights issue with warrants of RM386,426) to the Company.

The warrants have a term of 5 years to exercise from the date of issuance. Warrants that are not exercised during the exercise period will thereafter lapse and cease to be valid. During the nancial year, 22,242,962 warrants were exercised and the remaining balance of 1,250,360 lapsed as the warrants expired on 21 October 2013.

Relevant details on the rights issue and warrants are disclosed in Note 20 to the nancial statements.

EMPLOYEES SHARE OPTION SCHEME (ESOS)

At the Extraordinary General Meeting held on 28 October 2009, shareholders of the Company approved the ESOS for the granting of non-transferable options to eligible senior executives, employees and directors of the Group and of the Company, respectively. The ESOS is to be in force for a period of 5 years.

The Committee administering the ESOS comprises four directors, Dato Sri Ir. Kuan Peng Ching @ Kuan Peng Soon, Dato Ir. Low Keng Kok, Ooi Leng Chooi and Wong Chee Heng.

The Company granted 10,370,000 share options under the ESOS in the previous reporting period. These options were exercisable from the grant date at the exercise price of RM0.52 per ordinary share.

The main features of the ESOS are disclosed in Note 23 to the nancial statements.

The share options lapsed on 31 December 2013.

BAD AND DOUBTFUL DEBTS

Before the nancial statements of the Group and of the Company were made out, the directors took reasonable steps to ascertain that action had been taken in relation to the writing off of bad debts and the making of allowance for impairment losses on receivables, and satised themselves that there are no known bad debts and that adequate allowance had been made for impairment losses on receivables.

At the date of this report, the directors are not aware of any circumstances that would require the writing off of bad debts, or the additional allowance for impairment losses on receivables in the nancial statements of the Group and of the Company.

DIRECTORS REPORT(contd)

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CURRENT ASSETS

Before the nancial statements of the Group and of the Company were made out, the directors took reasonable steps to ascertain that any current assets other than debts, which were unlikely to be realised in the ordinary course of business, including their value as shown in the accounting records of the Group and of the Company, have been written down to an amount which they might be expected so to realise.

At the date of this report, the directors are not aware of any circumstances which would render the values attributed to the current assets in the nancial statements misleading.

VALUATION METHODS

At the date of this report, the directors are not aware of any circumstances which have arisen which render adherence to the existing methods of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

CONTINGENT AND OTHER LIABILITIES

Other than the contingent liabilities disclosed in Note 46 to the nancial statements, 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 nancial year which secures the liabilities of any other person; or

(ii) any contingent liability of the Group and of the Company which has arisen since the end of the nancial year.

No contingent or other liability of the Group and of the Company has become enforceable or is likely to become enforceable within the period of twelve months after the end of the nancial 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 when they fall due.

CHANGE OF CIRCUMSTANCES

At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or the nancial statements of the Group and of the Company which would render any amount stated in the nancial statements misleading.

ITEMS OF AN UNUSUAL NATURE

The results of the operations of the Group and of the Company during the nancial year were not, in the opinion of the directors, substantially affected by any item, transaction or event of a material and unusual nature. There has not arisen in the interval between the end of the nancial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors, to affect substantially the results of the operations of the Group and of the Company for the nancial year.

DIRECTORS REPORT(contd)

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DIRECTORS

The directors who served since the date of the last report are as follows:-

Dato Sri Ir. Kuan Peng Ching @ Kuan Peng SoonDato Ir. Low Keng KokDato Ismail bin Haji OmarOoi Leng ChooiFoong Kuan MingWong Chee HengZahedi bin Mohd Zain

DIRECTORS INTERESTS

According to the register of directors shareholdings, the interests of directors holding ofce at the end of the nancial year in shares in the Company and its related corporations during the nancial year are as follows:-

Number Of Ordinary Shares Of RM0.50 Each At Exercise of At 1.7.2013 Bought Share Options Sold 30.6.2014

Direct Interests In The Company Dato Sri Ir. Kuan Peng Ching @ Kuan Peng Soon 12,503,606 3,240,000* - - 15,743,606Dato Ir. Low Keng Kok 4,865 - - - 4,865Dato Ismail bin Haji Omar 17,269 - - - 17,269Ooi Leng Chooi 30,000 - 250,000 (203,100) 76,900Foong Kuan Ming 102,857 - - - 102,857Wong Chee Heng 52,800 - - - 52,800 Indirect Interests In The Company Dato Ir. Sri Kuan Peng Ching @ Kuan Peng Soon 5,054,400 - - - 5,054,500

Number Of Warrants Over Ordinary Shares Of RM0.50 Each At At 1.7.2013 Exercised Lapsed 30.6.2014 Direct Interests In The Company Dato Ismail bin Haji Omar 5,125 - (5,125) -

Number Of Share Options Over Ordinary Shares Of RM0.50 Each At At 1.7.2013 Exercised Lapsed 30.6.2014 Share Options Of The Company Ooi Leng Chooi 250,000 (250,000) - -

Note:-* - Married deal acquisition

The other director holding ofce at the end of the nancial year had no interest in shares and options over shares of the Company or its related corporations during the nancial year.

DIRECTORS REPORT(contd)

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DIRECTORS BENEFITS

Since the end of the previous nancial year, no director has received or become entitled to receive any benet (other than a benet included in the aggregate amount of emoluments received or due and receivable by directors as shown in the nancial statements, or the xed salary of a full-time employee of the Company) by reason of a contract made by the Group or the Company or a related corporation with the director or with a rm of which the director is a member, or with a company in which the director has a substantial nancial interest.

Neither during nor at the end of the nancial year was the Group or the Company a party to any arrangements whose object is to enable the directors to acquire benets by means of the acquisition of shares in or debentures of the Company or any other body corporate other than those arising from the share options granted under ESOS.

SIGNIFICANT EVENTS DURING/SUBSEQUENT TO THE FINANCIAL YEAR

The signicant events during/subsequent to the nancial year are disclosed in Note 48 to the nancial statements.

AUDITORS

The auditors, Messrs. Crowe Horwath, have expressed their willingness to continue in ofce.

Signed in accordance with a resolution of the directors dated 30 October 2014.

Dato Sri Ir. Kuan Peng Ching @ Kuan Peng Soon Ooi Leng Chooi

DIRECTORS REPORT(contd)

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We, Dato Sri Ir. Kuan Peng Ching @ Kuan Peng Soon and Ooi Leng Chooi, being two of the directors of Fajarbaru Builder Group Bhd., state that, in the opinion of the directors, the nancial statements set out on pages 41 to 124 are drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 1965 in Malaysia so as to give a true and fair view of the nancial position of the Group and of the Company at 30 June 2014 and of their nancial performance and cash ows for the nancial year ended on that date.

The supplementary information set out in Note 50, which is not part of the nancial statements, is prepared in all material respects, in accordance with Guidance on Special Matter No. 1, Determination of Realised and Unrealised Prots or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants and the directive of Bursa Malaysia Securities Berhad.

Signed in accordance with a resolution of the directors dated 30 October 2014.

Dato Sri lr. Kuan Peng Ching @ Kuan Peng Soon Ooi Leng Chooi

STATUTORY DECLARATIONPursuant to Section 169(16) of the Companies Act, 1965

I, Ooi Leng Chooi, I/C No. 660316-07-5417, being the director primarily responsible for the nancial management of Fajarbaru Builder Group Bhd., do solemnly and sincerely declare that the nancial statements set out on pages 41 to 125 are, to the best of my knowledge and belief, 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.

Subscribed and solemnly declared byOoi Leng Chooi, I/C No. 660316-07-5417, at Kuala Lumpur in the Federal Territory on this 30 October 2014.

Ooi Leng Chooi

Before me

Datin Hajah Raihela Wanchik (No. W-275)Commissioner for Oaths

STATEMENT BY DIRECTORSPursuant to Section 169(15) of the Companies Act, 1965

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4INDEPENDENT AUDITORS REPORT To the members of Fajarbaru Builder Group Bhd. (Incorporated in Malaysia)

Report on the Financial Statements

We have audited the nancial statements of Fajarbaru Builder Group Bhd., which comprise the statements of nancial position as at 30 June 2014 of the Group and of the Company, and the statements of prot or loss and other comprehensive income, statements of changes in equity and statements of cash ows of the Group and of the Company for the nancial year then ended, and a summary of signicant accounting policies and other explanatory information, as set out on pages 41 to 125. Directors Responsibility for the Financial Statements

The directors of the Company are responsible for the preparation of nancial statements so as to give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 1965 in Malaysia. The directors are also responsible for such internal control as the directors determine is necessary to enable the preparation of nancial statements that are free from material misstatement, whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these nancial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the nancial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the nancial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entitys preparation of nancial statements that give a true and fair view 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 entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the nancial statements.

We believe that the audit evidence we have obtained is sufcient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the nancial statements give a true and fair view of the nancial position of the Group and of the Company as of 30 June 2014 and of their nancial performance and cash ows for the nancial year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 1965 in Malaysia.

Other Matters

The nancial statements of the Group and of the Company for the preceding nancial year were audited by another rm of auditors whose report dated 17 October 2013, expressed an unmodied opinion on those statements.

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Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act 1965 in Malaysia, we also report the following:-

(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.

(b) We have considered the nancial statements of the subsidiary of which we have not acted as auditors, which is indicated in Note 5 to the nancial statements.

(c) We are satised that the nancial statements of the subsidiaries that have been consolidated with the Companys nancial statements are in form and content appropriate and proper for the purposes of the preparation of the nancial statements of the Group and we have received satisfactory information and explanations required by us for those purposes.

(d) The audit reports on the nancial statements of the subsidiaries did not contain any qualication or any adverse comment made under Section 174(3) of the Act.

Other Reporting Responsibilities

The supplementary information set out in Note 50 on page 125 is disclosed to meet the requirement of Bursa Malaysia Securities Berhad and is not part of the nancial statements. The directors are responsible for the preparation of the supplementary information in accordance with Guidance on Special Matter No. 1, Determination of Realised and Unrealised Prots or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants (MIA Guidance) and the directive of Bursa Malaysia Securities Berhad. In our opinion, the supplementary information is prepared, in all material respects, in accordance with the MIA Guidance and the directive of Bursa Malaysia Securities Berhad.

Other Matters

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

Crowe Horwath Cheong Tze YuanFirm No: AF 1018 Approval No: 3034/04/16 (J)Chartered Accountants Chartered Accountant

30 October 2014Kuala Lumpur

INDEPENDENT AUDITORS REPORT To the members of Fajarbaru Builder Group Bhd. (Incorporated in Malaysia) (contd)

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The Group The Company 2014 2013 2014 2013 Note RM RM RM RMASSETS NON-CURRENT ASSETS Investment in subsidiaries 5 - - 110,586,280 112,178,278Property, plant and equipment 6 14,464,603 12,882,586 - -Investment properties 7 44,081,111 44,081,111 - -Investment securities 8 9,855,413 10,249,629 9,855,413 10,249,629Intangible assets 9 208,202 208,202 - -Goodwill 7,497 - - -Trade receivables 10 7,724,271 1,708,656 - -Other receivables and prepayments 11 31,541,422 - - -

107,882,519 69,130,184 120,441,693 122,427,907

CURRENT ASSETS Trade receivables 10 98,048,939 41,963,464 - -Other receivables, deposits and prepayments 11 2,857,817 5,008,652 1,000 1,000Inventories 12 86,117,262 82,725,598 - -Amount owing by contract customers 13 12,872,808 58,354,795 - -Amount owing by subsidiaries 14 - - 32,821,896 16,885,119Deposits with nancial institutions 15 24,924,446 19,351,954 - -Cash and bank balances 16 32,829,360 16,191,220 50,624 291,291Tax recoverable - 2,262,449 6,798 50,160

257,650,632 225,858,132 32,880,318 17,227,570

TOTAL ASSETS 365,533,151 294,988,316 153,322,011 139,655,477

STATEMENTS OF FINANCIAL POSITIONAt 30 June 2014

The annexed notes form an integral part of these nancial statements.

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The Group The Company 2014 2013 2014 2013 Note RM RM RM RMEQUITY AND LIABILITIES EQUITY Share capital 17 110,152,370 95,845,889 110,152,370 95,845,889Share premium 18 4,207,849 3,782,651 4,207,849 3,782,651Treasury shares 19 (1,129,872) (1,126,576) (1,129,872) (1,126,576)Warrant reserve 20 - 1,174,666 - 1,174,666Other reserve 21 1,110,407 (64,259) - (1,174,666)Fair value reserve 22 1,948,805 2,343,021 1,948,805 2,343,021Employees share option reserve 23 - 359,040 - 359,040Foreign exchange translation reserve 24 (47) - - -Retained prots 25 44,815,515 41,727,560 38,089,484 38,402,799

Equity attributable to the owners of the Company 161,105,027 144,041,992 153,268,636 139,606,824Non-controlling interests 437,998 - - -

TOTAL EQUITY 161,543,025 144,041,992 153,268,636 139,606,824

NON-CURRENT LIABILITIES Trade payables 26 7,564,771 6,400,446 - -Deferred tax liabilities 27 3,451,230 2,060,958 - -Term loans 28 39,751,112 42,897,778 - -

50,767,113 51,359,182 - -

CURRENT LIABILITIES Amount owing to contract customers 13 37,857,855 14,878,387 - -Trade payables 26 67,023,985 65,069,750 - -Other payables and accruals 29 20,808,981 13,877,490 53,375 48,653Provision 30 3,814,688 - - -Short-term borrowings 31 23,377,359 5,761,515 - -Provision for taxation 340,145 - - -

153,223,013 99,587,142 53,375 48,653

TOTAL LIABILITIES 203,990,126 150,946,324 53,375 48,653

TOTAL EQUITY AND LIABILITIES 365,533,151 294,988,316 153,322,011 139,655,477

STATEMENTS OF FINANCIAL POSITIONAt 30 June 2014 (contd)

The annexed notes form an integral part of these nancial statements.

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The Group The Company 2014 2013 2014 2013 Note RM RM RM RM

REVENUE 32 313,581,595 213,200,956 549,600 1,133,250COST OF FINISHED GOODS 33 (67,576,648) (27,651,214) - -OTHER INCOME 34 2,136,332 2,994,640 53,575 514,493PROJECT EXPENSES (229,252,950) (171,909,501) - -STAFF COSTS 35 (7,535,174) (7,055,223) (549,600) (1,273,147)DEPRECIATION (1,744,999) (1,605,883) - -OTHER EXPENSES (2,933,028) (1,900,060) (433,556) (156,847)

PROFIT/(LOSS) FROM OPERATIONS 6,675,128 6,073,715 (379,981) 217,749FINANCE COSTS 37 (1,881,016) (381,064) - -

PROFIT/(LOSS) BEFORE TAXATION 38 4,794,112 5,692,651 (379,981) 217,749INCOME TAX EXPENSE 39 (1,864,326) (1,516,891) 5,424 (5,424)

PROFIT/(LOSS) AFTER TAXATION 2,929,786 4,175,760 (374,557) 212,325

OTHER COMPREHENSIVE INCOME/(EXPENSES):- Items that may be reclassied subsequently to prot or loss Fair value changes of available- for-sale nancial assets (394,216) 2,343,021 (394,216) 2,343,021Foreign currency translation (93) - - -

TOTAL COMPREHENSIVE INCOME/(EXPENSES) FOR THE FINANCIAL YEAR 2,535,477 6,518,781 (768,773) 2,555,346

STATEMENTS OF PROFIT OR LOSS AND OTHERCOMPREHENSIVE INCOME For The Financial Year Ended 30 June 2014

The annexed notes form an integral part of these nancial statements.

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STATEMENTS OF PROFIT OR LOSS AND OTHERCOMPREHENSIVE INCOME For The Financial Year Ended 30 June 2014 (contd)

The Group The Company 2014 2013 2014 2013 Note RM RM RM RM PROFIT/(LOSS) AFTER TAXATION ATTRIBUTABLE TO:- Owners of the Company 3,026,713 4,175,760 (374,557) 212,325Non-controlling interests (96,927) - - -

2,929,786 4,175,760 (374,557) 212,325

TOTAL COMPREHENSIVE INCOME/(EXPENSES) ATTRIBUTABLE TO:- Owners of the Company 2,632,450 6,518,781 (768,773) 2,555,346Non-controlling interests (96,973) - - -

2,535,477 6,518,781 (768,773) 2,555,346

EARNINGS PER SHARE (SEN) - Basic 40 1.44 2.22 - Diluted 40 Not applicable 2.14

The annexed notes form an integral part of these nancial statements.

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4STATEMENTS OF CHANGES IN EQUITYFor the nancial year ended 30 June 2014

Non-Distributable Distributable Foreign Employees Exchange Share Share Treasury Warrant Other Fair Value Share Option Translation Retained Total +IXQ\IT 8ZMUQ]U ;PIZM[ :M[MZ^M :M[MZ^M :M[MZ^M :M[MZ^M :M[MZ^M 8ZW\[ -Y]Q\a RM RM RM RM RM RM RM RM RM RMThe Group Balance at 1.7.2012 94,474,003 3,628,459 (1,116,581) 1,196,354 (85,947) - 97,222 - 37,436,813 135,630,323 Prot after taxation for the nancial year - - - - - - - - 4,175,760 4,175,760 Other comprehensive income for the nancial year: - fair value changes for available-for- sale nancial assets - - - - - 2,343,021 - - - 2,343,021 Total comprehensive income for the nancial year - - - - - 2,343,021 - - 4,175,760 6,518,781

Contributions by and distribution to owners of the Company: - Purchase of treasury shares - - (9,995) - - - - - - (9,995)- New shares issued under: - warrants exercised 216,886 - - (21,688) 21,688 - - - - 216,886 - employees share options exercised 1,155,000 154,192 - - - - (107,992) - - 1,201,200- Grant of employees share options - - - - - - 484,797 - - 484,797- Employees share options lapsed - - - - - - (114,987) - 114,987 - Total transactions with owners 1,371,886 154,192 (9,995) (21,688) 21,688 - 261,818 - 114,987 1,892,888

Balance at 30.6.2013/ 1.7.2013 95,845,889 3,782,651 (1,126,576) 1,174,666 (64,259) 2,343,021 359,040 - 41,727,560 144,041,992

The annexed notes form an integral part of these nancial statements.

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STATEMENTS OF CHANGES IN EQUITYFor the nancial year ended 30 June 2014 (contd)

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