HARTA-Annual Report 2014 PDF

THE COVER
The theme of this years report,

Scaling Greater Heights, emphasises
Hartalegas drive towards excellence
as we progress with our strategic
expansion plans. The core of this
is our latest phase of growth, the
Next Generation Integrated Glove
Manufacturing Complex (NGC), which
is depicted in the artists impression
featured on the cover. The NGC will
enable us to significantly scale up our
capabilities across the board, from
technological advancements and
product innovation to implementing
best practices and improving our talent
pool. Also prominently showcased on
the cover is Hartalegas new logo.
The vibrant contemporary image of the
globe represents Hartalegas growing
global presence, leveraging on our
passion for quality and innovation as
we move forward.
ONTENTS
Corporate & Management Overview
8Annual
th
General
Meeting
26 August 2014
Hartalega Holdings Berhad Annual Report 2014
Industry Firsts
Awards & Recognition
The Hartalega Nitrile Glove Story
Financial Summary
Share Price Performance
Corporate Information
Media Milestones
10
Profile of Directors
12
Executive Chairmans Statement
18
Corporate Social Responsibility Statement
28
Calendar of Events
32
Responsibility & Financials

Corporate Governance and
Directors Responsibility Statement
34
Audit Committee Report
45
Statement on Risk Management and Internal Control
49
Report and Financial Statements
53
Additional Compliance Information
156
List of Properties
158
Analysis of Shareholdings
160
Analysis of Warrants
164
Notice of Annual General Meeting
168
Statement Accompanying the Notice of

Annual General Meeting
172
Proxy Form
173
NDUSTRY FIRSTS
FIRST to develop polymer-coated powder-free examination gloves in 1994 and among the first to
receive FDA 510k to market low protein latex gloves
FIRST Malaysian company to develop and implement a robotic glove stripping system in 1995,
which mimics the human hand motion to strip gloves off from the production lines
FIRST to commercially produce high-stress-relaxation NBR examination and surgical gloves in
2002 and 2006 respectively
FIRST in the industry to use industrial bar-coding and RFID Tags for product traceability and stock
management
FIRST recipient of the Inaugural Award for Best Factory in 2005 in commodity-based industries by
the Malaysian Government
FIRST recipient of the Inaugural Award for Innovation in 2005 by the Rubber Research Institute of
Malaysia
FIRST in the industry to use empty oil palm fruit bunches as biomass fuel to generate heat for
production processes
FIRST in the industry to have successfully registered our biomass energy plants with the United
Nations Framework Convention on Climate Change (UNFCCC) or KYOTO Protocol
FIRST biomass energy plant in Malaysia registered with the United Nations Framework Convention
on Climate Change (UNFCCC) or KYOTO Protocol, that is in operation and running mainly
on empty oil palm fruit bunches
FIRST to commission high-capacity production lines operating at a record speed of 45,000 pieces
of gloves per hour, setting a new benchmark for the industry
FIRST in the world to develop and implement successful double former production line with
sophisticated process controls
WARDS & RECOGNITION
FinanceAsia Best Companies 2014 Best Mid Cap Malaysia

Forbes Asia
Best Under A Billion List 2010, 2011,
2012 and 2013
The Edge Billion Ringgit Club Corporate
Awards Most Profitable Company
(Industrial Products Sector) 2013
HR Asia Best Companies To Work
For in Asia Awards 2013
Selangor Investors Appreciation Award
2013
Asiamoney Overall
Best Managed Company
in Malaysia 2012 (Mid Cap)
Asiamoney Overall
Best Managed Company
in Malaysia 2010 (Small Cap)
KPMG Shareholder Value Award 2010
(Industrial Markets - Manufacturing
Category)
Selangor Innovative
Excellence Award 2007
Selangor Export
Excellence Award 2005
Commodity Industry
Award 2005
Rubber Industry Award 2005

(Innovative & Large Factory
Category)
Best Factory Award 2005
(Latex Goods Category)
Enterprise 50 Award 1998
ISO 9001 : 2008
ISO 13485 : 2003
EN ISO 13485 : 2003
EC-Certificate
CE Marking
Medical Device Licence Health Canada
Canadian General
Standard Board Certificate
U.S. Food and Drug
Administration 510(k)
HE HARTALEGA NITRILE
GLOVE STORY
Commenced R&D on
production technology
Focused on effective
Commenced R&D on elastic
thin nitrile glove
production
Overcame technology,
Operated the worlds first
pricing and intellectual
double former production
property barriers
line at year end 2003
Introduced users to a nitrile
Launched the worlds

first 4.7g nitrile glove. It
mimicked the stretchiness
Increased production line
glove that mimics the
capacity to 28,000 pcs/hr
softness and stretchiness of a
of nitrile gloves highest in
natural rubber glove
the industry
2002
2005
and low-cost nitrile glove
2003
2007
Competitor launched a 4.2g
nitrile glove
Hartalega responded with the
and softness of natural
worlds first 3.7g nitrile glove.
rubber gloves without
It was developed at the same
protein allergy risks, was
time as the 4.7g glove but
competitively priced and
kept in the war chest
outside the Tillotsons patent

Ringgit de-pegged from the
US dollar
THE HARTALEGA NITRILE GLOVE STORY
Hartalegas
nitrile
glove
production increased by
30-fold
Hartalega became the worlds
Became the nations largest
largest nitrile glove producer
and worlds second largest
Natural rubber price reached
nitrile glove producer
a record RM9.83 and nitrile
Obtained 20% share of the
gloves became cheaper than
US synthetic glove market
natural rubber gloves
2008
2010
2011
2012
2013
Launched 3.2g soft nitrile
Increased production line
25th Anniversary Silver
gloves
Nitrile sales increased
59 times over a period of
seven years
capacity to 45,000 pcs/hr
Jubilee Celebration of
of nitrile gloves, the fastest
Hartalega
in the industry
Groundbreaking for the
Strong switching momentum
Next Generation Glove
to nitrile gloves continued
Manufacturing Complex
worldwide
Launched 2.7g nitrile glove

Introduced patented
glove coating technology,
Colloidal Oatmeal Active
Therapeutic System or
COATS
THE HARTALEGA NITRILE GLOVE STORY
Nitrile Glove - Million Pieces
10,513
9,414
7,752
5,947
Successfully remodelled
company into a major
nitrile glove producer
with 90% of sales in
nitrile gloves
Nitrile glove sales
(pieces) increased by
14-fold in 7 years
Pioneered switching
momentum from natural
4,348
rubber to nitrile gloves

Largest nitrile glove
3,077
producer in the world
1,482
732
FY2014
FY2013
FY2012
FY2011
FY2010
FY2009
FY2008
FY2007
Nitrile Glove Sales
INANCIAL SUMMARY
308.9
304.1
1107.0
1032.0
931.1
258.4
734.9
242.8
571.9
177.8
443.2
95.5
257.6
FY2014
Profit
Before Tax
(RM Million)
FY2014
FY2013
FY2012
FY2011
FY2010
Revenue
(RM Million)
FY2009
FY2008
FY2014
FY2013
FY2012
FY2011
FY2010
FY2009
FY2008
76.0
Profit
After Tax
(RM Million)
233.3
233.6
31.39
31.88
201.4
190.3
27.65
26.18
143.1
19.66
84.5
17.44
FY2013
FY2012
FY2011
FY2010
69.6
FY2009
Earnings
Per Share *
(Sen)
FY2008
FY2014
FY2013
FY2012
FY2011
FY2010
FY2009
FY2008
15.97
* Earnings Per Share figures restated

following one-for-one bonus issue
on 28 May 2012
HARE PRICE PERFORMANCE

HARE PRICE PERFORMANCE
Price Movement
1900
8.00
7.50
1850
7.00
1800
6.50
1750
6.00
1700
5.50
1650
5.00
1600
2013
4.50
2014
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
FTSE Bursa Malaysia KLCI

Hartalega Holdings Berhad
ORPORATE INFORMATION
BOARD OF DIRECTORS
Kuan Kam Hon @ Kwan Kam Onn
Chuah Phaik Sim
Dato Mohamed Zakri bin Abdul Rashid
Kuan Mun Keng
Kuan Mun Leong
Liew Ben Poh
Danaraj A/L Nadarajah
Dato Tan Guan Cheong
Executive Chairman
Independent Non-Executive Director
Senior Independent Non-Executive Director
Non-Independent Executive Director
Managing Director
Non-Independent Executive Director
AUDIT COMMITTEE
FACTORY
Chuah Phaik Sim

Chairperson
Dato Mohamed Zakri bin Abdul Rashid Member
Member
No. 7, Kawasan Perusahaan Suria
REMUNERATION COMMITTEE
PRINCIPAL BANKERS

Liew Ben Poh
Chairman
Member
Member
Tel: 603 3280 3888
Hong Leong Bank Berhad

Standard Chartered Bank Malaysia Berhad
CIMB Bank Berhad
Citibank Berhad
NOMINATION COMMITTEE
Dato Mohamed Zakri bin Abdul Rashid Chairman
Chuah Phaik Sim
Member
Liew Ben Poh
Member
Ambank (M) Berhad
AUDITORS
Deloitte & Touche (AF 0834)
Level 16, Menara LGB
ESOS COMMITTEE
Kuan Vin Seung
Kuan Mun Leong
Kuan Mun Keng
Yong Pat Chau
45600 Bestari Jaya, Selangor Darul Ehsan
Chairman
Member
Member
Member
1 Jalan Wan Kadir

Taman Tun Dr Ismail
60000 Kuala Lumpur
REGISTRAR
COMPANY SECRETARIES
Symphony Share Registrars Sdn Bhd
Wong Maw Chuan (MIA 7413)

Wong Youn Kim (MAICSA 7018778)
Level 6, Symphony House

Block D13, Pusat Dagangan Dana 1
REGISTERED OFFICE
47301 Petaling Jaya
Level 2, Tower 1, Avenue 5

Bangsar South City
59200 Kuala Lumpur
Tel: 603 2283 6050
Fax: 603 2283 6072
Jalan PJU 1A/46

Selangor Darul Ehsan
Tel: 603 7841 8000
Fax: 603 7841 8151
STOCK EXCHANGE
Main Market of Bursa Malaysia
CORPORATE OFFICE
Securities Berhad
C-G-9, Jalan Dataran SD1

Dataran SD PJU 9
Bandar Sri Damansara
52200 Kuala Lumpur
Tel: 603 6277 1733
Url: www.hartalega.com.my
Email: info@hartalega.com.my
Stock Name: Harta
Stock Code: 5168

Warrants: 5168-WA
ADR United States: HRGHY
EDIA MILESTONES
New Straits Times,

25 Jan 2014
The Edge Financial Daily,

22 Apr 2013
New Straits Times,

6 Jan 2014
New Straits Times,

14 Oct 2013
Sinar Harian,
13 Apr 2013
10
MEDIA MILESTONES
New Straits Times,

28 Aug 2013
Berita Harian,
13 Nov 2013
The Star,
5 Oct 2013
Sin Chew Jit Poh,

28 Aug 2013
Berita Harian,
13 Jun 2013
The Malaysian Reserve,

13 Jun 2013
11
ROFILE OF DIRECTORS
From left to right

Liew Ben Poh
Kuan Mun Keng
Dr Danaraj A/L Nadarajah
Chuah Phaik Sim
Kuan Mun Leong
12
PROFILE OF DIRECTORS
Kuan Kam Hon

@ Kwan Kam Onn
Executive Chairman,
Malaysian
Kuan Kam Hon @ Kwan Kam Onn, aged 67, was appointed as Executive Chairman and Managing Director
on May 7, 2007. He stepped down as Managing Director on November 16, 2012, and continues to play
an integral role in the Group as Executive Chairman. Kuan Kam Hon is primarily responsible for the overall
business, strategic planning and entire operations of the Group, including research and development. He
began his career in the building and construction sector in 1969 under Kuan Yuen & Sons Company, a wellknown quality homebuilder in the 70s specialising in upper-class residential units in the Klang Valley. In 1978,
he started Timol Weaving Sdn Bhd, one of the pioneers in woven labels and badges. In 1981, he formed
Hartalega Sdn Bhd. Under his leadership, Hartalega Sdn Bhd has since become a reputable manufacturer of
latex gloves in the industry and is now a public listed company on the Main Board of Bursa Malaysia Securities
Berhad, known as Hartalega Holdings Berhad. He has established a set of management values that is qualitydriven and encourages creativity and innovation to produce highly-skilled personnel. He presently sits on the
Board of several other private limited companies as well.
Dato Mohamed Zakri

bin Abdul Rashid
Senior Independent
Non-Executive Director, Malaysian
Dato Mohamed Zakri bin Abdul Rashid, aged 71, was appointed as Independent Non-Executive Director
on May 7, 2007, and sits on the Audit Committee. Dato Mohamed Zakri was appointed to Hartalega Sdn
Bhds Board on November 27, 1998, as a Non-Executive Director. He was subsequently appointed as Senior
Independent Non-Executive Director, effective August 7, 2012. He holds a Bachelor of Arts Degree with
Honours and a Diploma in Public Administration from Universiti Malaya. He also holds a Masters Degree in
Public Administration from the University of Southern California, USA. He retired from Government service in
1998 as Director General of the Department of Immigration of Malaysia after having served the department for
more than four years. Previously, he served the Government in various capacities in the Ministry of Transport,
Ministry of Finance and the Prime Ministers Department for more than 30 years.
13
Dr Danaraj
A/L Nadarajah
Non-Independent
Executive Director,
Malaysian
Dr Danaraj A/L Nadarajah (Dr N Danaraj), aged 60, was appointed as a Non-Independent Executive
Director/Corporate Advisor on July 4, 2011. His management duties include oversight of Hartalegas own
brand business in USA, China and India. He is also a joint venture partner with Hartalega in China and
India. Dr N Danaraj has been an entrepreneur for over 15 years in China and Malaysia as a manufacturer of
toys. Prior to joining Hartalega he had short assignments as a Senior Fellow at Khazanah Nasional and as a
Technical Advisor to the National Economic Advisory Council and the Innovation Unit in the Prime Ministers
Office. He holds a Doctor of Philosophy from Oxford University, a Masters in Public Policy/Economics from
Harvard University, a Post-Graduate Management Diploma from INTAN, and a Masters and Bachelor of
Arts with Honours from the University of Malaya. Dr N Danaraj began his career with the Government in the
Malaysian Administrative and Diplomatic Service, including postings in the Ministries of Finance and Human
Resources. He has worked in the United Nations University, Tokyo, as well as a Visiting Scholar at Hitoshibashi
University, Tokyo, Head of Business Research at the Malaysian Institute of Economic Research and Professor of
Business Strategy at University of Monaco.
Dato Tan
Guan Cheong
Independent
Non-Executive Director,
Malaysian
Dato Tan Guan Cheong, aged 70, was appointed as an Independent Non-Executive Director on December
31, 2011. He holds a Bachelor of Commerce degree from Otago University, New Zealand, majoring in
economics, marketing management and accountancy. He is a Chartered Accountant and a member of the
Malaysian Institute of Accountants since 1983. He has worked in international audit firm Coopers & Lybrand
(now known as PricewaterhouseCoopers) in New Zealand and Malaysia. Dato Tan has wide working experience
in the financial services industry and has served in various senior capacities. He joined Orix Leasing Malaysia
Bhd, an international diversified financial services institution, in 1976 as a financial and accounting controller.
Dato Tan rose to become the Managing Director in 1988 and held this position until his retirement. Dato Tan
is a member of the Audit Committee and the Remuneration Committee. He is also a Director of Kian Joo Can
Factory Berhad and YTL Cement Berhad.
14
Chuah Phaik Sim

Independent
Malaysian
Chuah Phaik Sim, aged 45, was appointed as Independent Non-Executive Director on May 7, 2007. Chuah
is a member of the Malaysian Institute of Certified Public Accountants and a Chartered Accountant with
the Malaysian Institute of Accountants. She started her career in January 1989 with KPMG Desa Megat &
Co (now known as KPMG) as an articled student and rose through the ranks to become a qualified Audit
Senior in 1993. Her experience in KPMG includes external audits, restructuring, as well as initial public
offering and valuation exercises. She left KPMG in 1994 to become a Finance Manager of a public listed
company and was responsible for the overall financial and administrative management of the company and
the consolidation of the groups accounts. In 1995, she joined Kumpulan Jetson Berhad as the Internal Auditor,
reporting functionally to the Audit Committee. She was responsible for the setting up and overall management of
the Internal Audit Department. In 2000, she left Kumpulan Jetson Berhad and was appointed Director of several
private limited companies. She has since remained active in providing corporate advisory and consultancy
services for restructuring, mergers and acquisitions, and valuation exercises.
Liew Ben Poh

Independent
Malaysian
Liew Ben Poh, aged 65, was appointed as Executive Director on May 7, 2007, and re-designated as a NonExecutive Director on July 14, 2010, after he retired from the position of Sales and Marketing Director. On
July 7, 2011, he was appointed as a member of the Nomination and Remuneration Committees. On July 18,
2013, he was redesignated as an Independent Non-Executive Director. During his extensive years of service,
he has helped Hartalega Holdings Berhad in establishing a strong international client base. In addition, he is
one of the key personnel involved in the research and development aspects of Hartalega Holdings Berhad.
He is very active in the latex glove industry and was President of the Malaysian Rubber Glove Manufacturers
Association (MARGMA) for two terms. He was the first Chairman of the ASEAN Rubber Gloves Manufacturers
Association and was re-elected to serve as Chairman for 2008-2009. He was also a Founding Board Member
of the Malaysian Rubber Export and Promotion Council (MREPC) under the Ministry of Primary Products and
Commodities. He resigned from the Board of MREPC in September 2010. Owing to his vast knowledge of the
latex glove industry, he is regularly invited to speak at international conferences in Malaysia as well as overseas.
15
Kuan Mun Leong

Managing Director,
Malaysian
Kuan Mun Leong, aged 38, joined the companys Engineering Department in 2001. He was appointed as an
Executive Director of the Group in 2007 and was later appointed Deputy Managing Director. On November
16, 2012, he assumed the role of Managing Director. He graduated from Monash University, Australia, with a
Bachelors Degree in Mechanical Engineering in 1999 and later obtained a Masters in Business Administration
(MBA) from the University of Strathclyde, Scotland in 2007. He began his career in the industrial boiler sector
and subsequently brought in-depth knowledge of green energy technology into Hartalega. He then spearheaded
the implementation of the sectors first empty oil palm fruit bunch biomass energy plant in 2004 and was
instrumental in leading the plant to a successful registration with the United Nations Framework Convention on
Climate Change (Kyoto Protocol) in 2007, enabling Hartalega to sell emission reduction credits. Throughout his
career in Hartalega, he has led capacity expansion projects that have not only increased production capacity
by sevenfold but also accomplished several sectors unprecedented engineering breakthroughs in production
technology. Today, Hartalega is touted as the sectors most efficient rubber glove manufacturer.
Kuan Mun Keng

Non-Independent Executive
Director, Malaysian
Kuan Mun Keng, aged 39, was appointed as Executive Director on July 4, 2008. Presently, he is the Sales and
Marketing Director of Hartalega Holdings Berhad and is also responsible for the Groups Corporate Finance.
He graduated with a Bachelors Degree in Business (Accounting) and a Bachelors Degree in Computing from
Monash University, Australia, in 1997. He is also a Certified Practising Accountant with CPA Australia. Upon
graduation, he joined Kassim Chan Business Services as an Analyst in the Information Technology Consultation
Division in 1997. In 1998, he left to join Hartalega as a Production Executive. He then worked in the Accounts
and Management Information Services Departments implementing various beneficial changes before he was
promoted to Deputy Operations Manager in 2003. His long experience in operations is a complement to the
Sales and Marketing team as he is able to align functions in the company with the needs and wants of customers.
16
Notes
Family Relationship with Director and/or Major Shareholder

Kuan Kam Hon is the father of Kuan Mun Keng and Kuan Mun Leong. Save as disclosed herein,
none of the Directors have any family relationships with any director and/or major shareholder of
the Company.
Conflict of Interest

None of the Directors have any conflicts of interest with the Company.
Conviction of Offences

None of the Directors have been convicted of any offences in the past ten (10) years.
17
XECUTIVE CHAIRMANS STATEMENT
Dear
Shareholder,
The year 2013 was indeed
noteworthy for your Group
as we commemorated our
25th anniversary. We have
grown immensely since our
inception in 1988, establishing
a pole position in the glove
manufacturing industry early
on which we have firmly
held on to by capitalising
on our core capabilities and
innovative spirit.

Executive Chairman
Coupled with our commitment to excellence, this has
during the year. Building on this momentum, we are
enabled us to become not only the worlds largest nitrile
confident that we will be able to achieve greater
glove manufacturer; we are also the worlds largest
growth as we remain on track to realise our strategic
rubber glove company in terms of market capitalisation.
long-term expansion plans.
Despite a subdued economic climate and challenging
Against this backdrop, I am pleased to present to you
market forces in 2013, we delivered a solid performance
our annual report for the year ended 31 March 2014.
18
EXECUTIVE CHAIRMANS STATEMENT
ECONOMIC LANDSCAPE
The global economy saw a mild recovery in 2013, with
nitrile glove exports from Malaysia to the EU increased
momentum picking up particularly during the second
by 30.3% in 2013 clearly indicates the robust demand
half of the year. The US economy continued to stabilise
for nitrile.
and strengthen while the Eurozone also showed some

improvement, although growth was sluggish.
Meanwhile, China saw healthy demand during the

year, with a 59.9% growth in Malaysian nitrile glove
Global demand for rubber gloves was robust with an
exports. Brazil, another emerging market with strong
average growth rate of over 7.5% in 2013. Malaysia
potential, experienced an increase in imports of rubber
remains the leading supplier of rubber gloves, with over
gloves due to liberalisation of the healthcare sector and
60% of global market share.
the governments further investment in the healthcare

budget.
Total exports of Malaysian rubber gloves grew by 8.5%

in 2013 to 44.28 billion pairs. This was primarily driven
Another factor which spurred demand during the year
by exports of nitrile rubber gloves which increased to
was lower average selling prices, which impacted
22.08 billion pairs from 18.55 billion pairs in 2012,
earnings for glove manufacturers. Despite higher
representing a 19% jump. In contrast, exports of natural
average sales volumes in 2013, selling prices were
rubber gloves slowed considerably, declining by 0.4%
depressed due to a drop in raw material costs.
to 22.06 billion pairs compared with 22.15 billion
Contributing to this was a significant increase in rubber
pairs in the previous year.
supply as a result of maturing rubber plantations in

countries such as Thailand, Vietnam and Cambodia.
For the first time in history nitrile has taken the lead,
surpassing natural rubber with a demand ratio of
Ultimately, the resilient demand for nitrile gloves certainly
51% to 49%. The US was the largest export region
augurs well for Hartalega and dispels speculation of
for Malaysian nitrile gloves in 2013 with 10.6 billion
oversupply in the market. This is further reinforced by
pairs of gloves, followed by the European Union (EU)
increasing industry utilisation rates as well as the fact that
with 7 billion pairs of gloves. This was despite the fact
glove manufacturers across the board are building up
that Malaysia no longer holds Generalised Scheme of
their nitrile production capacity. The Group is confident
Preferences (GSP) status due to the EUs revision of the
that by leveraging on our competitive advantages as
GSP. Although European importers must now pay 2%
a leader in the nitrile segment, we will remain at the
to 2.7% for glove imports from Malaysia, the fact that
forefront of the industry.
19
FINANCIAL PERFORMANCE
We delivered sustained results for our financial year
While the downward pressure on average selling
ended 31 March 2014, registering a profit after tax of
prices as well as increased electricity and maintenance
RM233.29 million compared with RM233.59 million
costs put a strain on our bottom line, we nevertheless
in the last financial year. We recorded an improved
recorded a sustained profit for the year. This was
turnover of RM1.107 billion from RM1.032 billion in
despite a higher tax rate of 24.4% for the year under
the previous fiscal year, while profit before tax grew to
review from 23.1% in the previous year, due to the
RM308.95 million compared with RM304.10 million
fact that the Group has fully utilised our reinvestment
last year.
allowance tax incentives. Top line growth for the

year was strong, enabling the Group to deliver solid
As a reflection of our prudent management and
earnings.
firm rein on costs, earnings before interest, taxation,

depreciation and amortisation (EBITDA) increased
Moreover, although we hold a price premium on
to RM354.49 million from RM336.92 million in the
the nitrile glove segment, due to competition we
previous year. Net cash for your Group stood at
experienced contracted margins. This was further
RM170.55 million.
compounded by increased depreciation cost of RM45

million and a net foreign exchange loss of RM8.05
Earnings per share for the year was 31.39 sen per
million. Nevertheless, our profit margins remain well
share. Net assets per share attributable to the owners
above the industry average, which is further testament
of the Company was 126.13 sen.
to the high demand for our top quality nitrile gloves.
20
DIVIDENDS
OPERATIONS REVIEW
The Group remains dedicated to delivering value to
Research and Development
our loyal shareholders with strong dividend yields and
Innovation is at the core of our growth, from our
significant capital appreciation. Our dividend policy is
high quality products to our state-of-the-art production
a clear reflection of this, ensuring a minimum dividend
technologies. This pioneering spirit has been an
payout of 45% of the Groups annual net profit.
integral part of the Group since our inception, leading

Hartalega to single-handedly create the nitrile glove
In line with this, we have paid out a total dividend nett
market which today is one of the fastest-growing
of tax of 10.5 sen per share, compared with 10.5
manufacturing segments in the world.
sen per share during the corresponding period in the

previous financial year. We expect to announce a
This was due in no small part to our continuous
final dividend at the Eighth Annual General Meeting.
research and development efforts, which have

resulted in advanced technologies and the most
highly automated manufacturing processes in the
industry, all developed in-house. As our peers race to
develop their production capabilities, we remain far
ahead with our technological edge.
Due to this innovative drive, over the past two decades
we have consistently introduced revolutionary products
into the market and established new benchmarks.
In the year under review we set a new milestone,
launching a 2.7 gram nitrile powder-free examination
glove, our most lightweight glove to date. This product
is in compliance with standards and regulations set by
international bodies, including the American Society
for Testing and Materials (ASTM) and the Food and
Drug Administration (FDA).
We also introduced a patented glove coating
technology known as COATS, Colloidal Oatmeal
Active Therapeutic System. Leveraging on the
well-established
benefits
of
colloidal
oatmeal,
the innovative coating provides hypoallergenic,

restorative and protective properties, and has been
well-received by the market.
21
Environmental Performance
In tandem with the development of new products,
Best practices are of utmost importance to Hartalega,
we strive to raise the bar in our manufacturing
which ensures the sustainable growth of the Group in
processes. During the year we successfully completed
a conscientious manner. With this in mind, we have
commissioning of Plant 6, which is now fully
implemented initiatives throughout our operations to
operational with 10 high capacity production lines.
enable us to preserve the environment in which we
With a line speed of 45,000 pieces of gloves per
operate.
hour, this has boosted our production capacity by

30%, increasing our total installed capacity from 10
These ongoing initiatives include eco-friendly waste
billion to 13.6 billion gloves per annum.
water and biomass plants which are monitored by

a state-of-the-art computerised system, coupled with
As part of our efforts to ensure the quality of our
constant monitoring of our air quality and water
products, we also undertook maintenance initiatives
supply. We have also undertaken efforts to improve
at our manufacturing plants in 2013. In order to
our chemical labelling and our chemical storage and
remain ahead of the curve, in the period under review
drainage areas, as well as to enhance our scheduled
we tested prototypes for new automations, which are
waste storage.
set to proceed to the next stage of development.

Our environmental compliance measures strictly adhere
to the standards and regulations of Jabatan Alam
Sekitar. As a result of our efforts, during the year the
Group was awarded ISO14001 certification from
TVSD, an international environmental management
system standard.
As the Group moves forward, we will continue to seek
out opportunities and initiatives which allow us to leave
a positive impact on the environment.
22
Marketing
With our pole position in the industry as the worlds
successfully bringing in 16 new customers during the
largest nitrile glove manufacturer, we continue to
year. We made further inroads in the Middle East,
command a significant share of the market with an
as well as in Brazil with a proportion of our revenue
installed production capacity in excess of 13.6 billion
growing to 6% from 2% previously. Our share of
pieces of gloves per annum.
revenue in Japan also increased to 11% from 9% in the

previous fiscal year.
In the year under review, our total nitrile sales volume

rose to 10.5 billion pieces compared with 9.4 billion
As we accelerate our branding and marketing efforts
pieces in the previous financial year, supplying 14%
for our own brand products, our marketing strategy
of the global demand for nitrile gloves. The North
enables us to tap into the immense growth potential
American market was our largest market, with 50%
inherent in the industry, particularly as healthcare
of our total nitrile glove exports comprising 5.3 billion
awareness is increasing on a global scale. Towards
pieces. Our current share of the US nitrile glove market
this end, we have established a dedicated branding
is 15%.
division to drive this most important segment for the

Group. In addition, our distribution centres in China
This was followed by Europe, with 29% of our total
and India also enable us to capitalise on rising demand
nitrile glove exports amounting to 3 billion pieces. We
in those countries.
also expanded our presence in emerging markets,
23
Human Capital
Our human capital represents the future of the
Utilising a balanced score card approach and a
Group. We are fully cognisant that it is only with
framework for key performance indicators, the PMS
the right talent pool that we will be able to succeed.
is an ongoing management process which aligns
As a result, we have invested substantial resources
strategic objectives across the Group. Via the PMS,
to ensure that our workforce is well-equipped to
we have been able to create a performance-driven
drive the sustainable growth of the Group.
culture, rewarding high-performing employees. In

addition to this, our remuneration structure is highly
This includes an investment of RM20 million to
attractive, benchmarked against the industry to
transform and modernise the Groups Information
ensure that we remain competitive.
Technology infrastructure. This is part of a

collaboration with Avanade, a global provider of
We have also embarked on programmes to
business technology solutions. This will enable the
implement
Group to streamline its business processes and lead
Japanese
to improved employee engagement and knowledge
organisational efficiency. 5S, which represents Sort
management,
knowledge-driven
Out, Set in Order, Shine, Standardise and Sustain,
workforce and nurturing a culture of innovation
is a systematic mindset that aims to create a more
within the Group.
conducive working environment and inculcate a
creating
5S
and
Kaizen,
methodologies
for
well-established
enhancing
lean
sense of teamwork, ownership, pride and discipline

Meanwhile, we continue to build capacity in line
in employees to improve organisational dynamics.
with our plans for our Next Generation Glove
Meanwhile, Kaizen is a structured approach that
Manufacturing Complex (NGC), employing staff
will facilitate continuous process improvements
ahead of time to develop their capabilities. This will
throughout the Group.
ensure that a highly capable team is fully prepared

with the skills to manage the advanced technologies
of the NGC.
In the year under review, we successfully restructured
our Performance Management System (PMS). The
PMS is a systematic approach to developing and
enhancing the performance of our team to increase
organisational effectiveness on a holistic basis.
24
OUTLOOK
During the year we undertook initiatives to nurture
Prospects are indeed bright for your Group for the
our core values in our employees, known as SHIELD,
foreseeable future, as nitrile demand continues to grow.
comprising
Innovativeness,
This should be sustained by depressed raw material
Excellence in Quality, Learning and Dedication.
costs, which are expected to remain in a relatively low
In order to enhance our core competencies, we
price territory as the abundant rubber supply continues
implemented various leadership workshops and
to outweigh demand. Though margin compression is
programmes.
employees
a possibility, it is expected that the robust demand for
also had the opportunity for global exposure by
nitrile gloves will be able to bear the brunt in the long
attending international trade exhibitions in Europe,
run.
Synergy,
Our
Honesty,
high-performing
the Middle East and Asia, gaining valuable industry

insights.
In the year under review, the Government announced

an increase in electricity and gas tariffs from 2014
onwards. Given that this will have an industry-wide
effect, it is likely that impact will be minimal, as
manufacturers are generally able to pass on the cost
increases to customers. Water rationing was also a
concern in 2014, however the Groups pre-emptive
counter-measures enabled our operations to remain
unaffected.
In terms of healthcare epidemics, the outbreak of the
Middle East Respiratory Syndrome (MERS) virus in Saudi
Arabia in 2014 is not likely to significantly impact the
glove industry. Although some cases were reported in
other countries including Malaysia, these were isolated
cases and the MERS virus has largely been confined to
Saudi Arabia.
The industry as a whole is poised for growth, with
tremendous potential in emerging markets due to
rising global healthcare awareness and healthcare
reforms. In particular, the rubber glove market in Brazil
is expanding due to easing regulations for rubber
gloves imports, while Chinas healthcare reform is set
to catalyse its healthcare industry.
25
On the back of our strong track record spanning two
per annum, strengthening our foothold in the industry.
and a half decades, we are certainly well-positioned
Based on our proven industry record of the fastest
to seize these growth opportunities as we progress
production line with 45,000 pieces per hour coupled
with our expansion plans. Most notably, we are
with higher levels of automation, we expect that the
moving forward on our latest phase of growth with the
NGCs productivity will be 70% higher than our current
NGC. During the year, we completed the acquisition
setup.
of land for the NGC and construction work at the

site has commenced. Construction of plant 1 and 2
In order to successfully execute our aggressive
with supporting facilities is well underway. The first
growth plans, we are taking steps to implement talent
production line is on track to be commissioned by the
development programmes to ensure we have the right
end of 2014, with subsequent production lines set to
people and leaders with the right skill sets. Towards
come on stream progressively.
this end, a Learning Centre will be constructed at the

NGC to provide appropriate facilities to carry out
The NGC will establish a new standard for the glove
development programmes for our employees. In line
manufacturing industry, with a total of six state-of-the-art
with our people-centric approach, the NGC emphasises
manufacturing plants and 72 technologically advanced
workplace design to provide an attractive workspace
production lines. The NGC is set to provide average
for our employees. The NGCs other facilities include
year-on-year capacity growth of 15% per annum
employee accommodation and a recreational sports
as it is developed in stages for the next eight years.
complex, creating an integrated holistic environment for
Once completed, Hartalegas production capacity
our workforce.
will increase substantially to over 42 billion pieces

Artists impression of the NGC
26
ACKNOWLEDGEMENT
In tandem with the development of the NGC, our
As we move forward on our growth path, it is only
partnership with Avanade will further ensure that
through the combined efforts of our entire workforce
we are putting in place the necessary foundation to
that we are able to succeed. On this note and on
accommodate for our long-term needs once the NGC
behalf of the Group, I would like to express my deepest
is completed. Our IT infrastructure is a catalyst for our
gratitude to our Board of Directors, the management
growth, and this collaboration will enable the Group
team and our employees for their dedicated efforts.
to accelerate our strengths in this area as we strive to
Your commitment and contributions to the Group are
harness IT as a competitive advantage.
invaluable, especially as we progress on our most

significant expansion plan to date.
Complementing the highly automated manufacturing

processes of the Group, Avanade will be introducing
Our sincere appreciation as well to our shareholders,
a similar level of automation and standardisation
financiers, business partners, consultants and relevant
to our daily operations. This will result in improved
approving authorities for their unwavering support.
collaboration between business units and better

business insights, as well as increased productivity and
system performance. The partnership with Avanade will
also involve training opportunities for our employees.
Kuan Kam Hon
Meanwhile, via our marketing and branding strategy
Executive Chairman
which focuses on high-growth areas, we are setting the

framework to roll out several new brands of gloves.
These brands will be integrated into our marketing
strategy for our international distribution centres.
Clearly, the outlook is bullish for the sustainable longterm growth of the Group. As we move towards fully
realising our expansion plans, underpinned by our
prowess in production technology and innovation, we
see great potential for the Group to capitalise on the
opportunities inherent in the market.
27
ORPORATE SOCIAL
RESPONSIBILITY STATEMENT
Our corporate social
responsibility (CSR) efforts
are at the heart of the
Group, and we remain
committed to making positive
contributions via our ongoing
CSR initiatives. This includes
safeguarding the welfare of
our employees as well as
caring for the community and
the environment.
28
CORPORATE SOCIAL RESPONSIBILITY STATEMENT

HEALTH, SAFETY, AND
ENVIRONMENT
The health and safety of our employees is paramount.
Along with safety, the wellbeing of our workforce is
To this end, we have embarked on a number of
equally important. To encourage our staff to lead an
initiatives to ensure that our employees are protected
active lifestyle, we have a sports club which holds
and equipped with sufficient knowledge. Our
weekly sporting activities including badminton, ping
ongoing Health, Safety and Environment (HSE)
pong and futsal. This also fosters a sense of teamwork
campaign continuously educates our workforce on
and camaraderie amongst our employees.
the importance of safety via regular communications

and a monthly HSE newsletter. We have also
In line with our commitment to sustainability, we
implemented a toolbox programme, through which
have implemented initiatives which surpass the
our HSE department provides multi-lingual updates
strict guidelines of Jabatan Alam Sekitar and other
on safety guidelines and messages on a weekly
regulators, ensuring our water effluent discharge
basis.
and air emission levels are well below the standard

limits. Moreover, we collaborate closely with the
In case of emergencies, we have established our
Department of Environment, the Department of
own Emergency Response Team (ERT), comprising
Occupational Safety and Health as well as BOMBA,
an ambulance team and first aid team trained by
not only to fulfil legal requirements but also to go the
the Malaysian Red Crescent Society (MRCS), a
extra mile and undertake additional measures for
firefighting team trained by JabatanBombadan
the preservation of the environment.
PenyelamatMalaysia (BOMBA), and a chemical

spillage and chlorine team trained by our chemical
suppliers. In order to ensure our ERT members are
well-prepared, we have regular training sessions by
BOMBA and the MRCS. In addition, every quarter
we conduct firefighting drills along with chlorine and
chemical spillage drills.
During the year, we undertook improvements to our
emergency measures by setting up an evacuation
pre-assembly point. In an effort to improve safety
habits, posters were developed to ensure our
employees are mindful of the safety procedures they
must adhere to.
29
COMMUNITY PROGRAMME
We are dedicated to reaching out to the community
In order to ease the burden of the senior citizens
in order to facilitate a better quality of life for all
of Jashiera Old Folks Home, we contribute monthly
Malaysians, particularly those within the vicinity of
provisions on an annual basis. In the year under
our manufacturing plants in Bestari Jaya. To this end,
review, Hartalega employees visited the home to
through our CSR initiatives we strive to make positive
spend time and socialise with the residents, as well
contributions to underprivileged communities and
as to celebrate their birthdays.
needy individuals.
Furthermore, to strengthen ties with communities in
As part of our CSR efforts, we provide monthly
Bestari Jaya and Kuala Selangor, we host regular
medical subsides to the residents of Taman Suria,
events such as Karnival Seni Cantik, a fun-filled
to assist them with their medical treatment fees. We
community celebration promoting art and culture, as
also sponsor medical supplies on a bi-monthly basis
well as other activities such as the Batang Berjuntai
to Rumah Ozanam Batu Arang, a charitable shelter
Sports Carnival along with quarterly bowling games.
for displaced women and children living with HIV/
To spread joy and cheer during festive periods, we
AIDs.
have annual charity drives for Chinese New Year,

Hari Raya and Deepavali, providing donations and
During the monsoon season, we lent a helping hand
hampers. In addition, in order to foster safe driving
to Kampung Rantau Panjang in Klang, which was
habits we contributed to a road safety campaign
affected by flooding. As one of the first responders
with Polis Diraja Malaysia to promote appropriate
after the emergency action team, we provided flood
safety gear.
victims with daily necessities such as food, clean

drinking water and sanitary supplies.
Meanwhile, for the third consecutive year Hartalega

employees took part in the KL Rat Race 2013,
organised by The Edge and Bursa Malaysia.
Encouraging a healthy lifestyle in our staff, this
annual event also enables the Group to engage with
the corporate community and contribute to a good
cause via Yayasan Bursa Malaysia.
30
EDUCATION
In order for our nation to prosper, it is essential to
Meanwhile, in order to foster inter-cultural awareness
provide young Malaysians with opportunities to
and diversity, we contributed to SMK Sultan Sulaiman
pursue their passions and realise their potential. As a
Shahs (SMK SSS) sister school project by hosting a
responsible corporate citizen, we are committed to
visit from their sister school from Australia, Wodonga
contributing to the future of Malaysias youth via our
Middle Years College. We also provided financial
various educational programmes.
assistance to SMK SSS Kelab ProStar, a club

promoting a safe and drug-free lifestyle.
As part of our CSR efforts, during the year we opened

our doors to the students of SMK Pendamaran,
Along with these programmes, we host regular
Klang, in support of a programme by Teach For
educational visits to Hartalega to showcase our
Malaysia, a non-profit organisation. In order to
industry best practices & production processes,
provide an insight into the glove manufacturing
as well as educating students on environmental
industry, a group of 40 students was taken on a tour
sustainability. We also provide scholarships for
of one of the Groups manufacturing plants in Bestari
deserving students as well as monthly tuition subsidies
Jaya. The management team also spent some quality
for underprivileged children from Kampung Sungai
time talking to the students about their ambitions.
Darah and Taman Suria for their educational needs.
Overall, it was indeed a rewarding experience

as the students were able to learn about the many
career opportunities available in the glove industry.
In addition to this, our ongoing school adoption
programme is proceeding well. In the year under
review we completed a number of initiatives at
our adopted school, SMK Raja Muda Musa in
Bestari Jaya. This included sponsoring infrastructure
improvements to enhance the learning environment,
organising and providing financial aid for activities
such as the Karnival Keusahawanan and GotongRoyong Perdana, hosting visits to Hartalegas
facilities and implementing an Information and
Communications Technology training programme.
With a view to developing well-rounded students,
we upgraded the weightlifting facilities and sports
storage room to support the school athletes
participation in a national tournament.
31
ALENDAR OF EVENTS
years
32
CALENDAR OF EVENTS
BB Sports Carnival 2013
KL Rat Race 2013

Workers Day 2013
BB Sports
Carnical
2013
Karnival
Cinta
Seni Cantik
Teach for Malaysia Visit
Hartanian Awards &

Durian Feast
33
ORPORATE GOVERNANCE AND

DIRECTORS RESPONSIBILITY STATEMENT
The Board of Directors (the Board) of Hartalega Holdings Berhad (the Company or Hartalega) is committed
to safeguarding the interests of its stakeholders and recognises the importance of corporate governance in
achieving this objective. The Board knows that transparent disclosure of its organisational and management
structure as well as other aspects of its corporate governance helps stakeholders to assess the quality of the
Group and its management and assists investors in their investment decisions.
The Board is committed to ensuring that the Groups corporate governance is in line with the principles and best
practices set out in Part 1 of The Malaysian Code on Corporate Governance (the Code). The Board further
acknowledges the recommended best practices and the adopted alternative practices set out in Part 2 of the
Code and continues to evaluate the status of the practices and the adopted alternatives.
SECTION 1: THE BOARD OF DIRECTORS

The Board takes full responsibility for the performance of the Group and guides the Group towards achieving
its short and long term objectives, setting corporate strategies for growth and new business development while
providing advice and direction to the Management to enable the Group to achieve its corporate goals and
objectives.
Composition of the Board and Board Balance
The Board comprises of members who have vast experience in the glove industry as well as professionals in the
finance and consulting sectors. The Board brings in a wide spectrum of diverse skills and expertise to the Group
which allows it to meet its objectives in the competitive glove manufacturing landscape.
A brief profile of each Director is presented on pages 12 to 17 of this Annual Report.
The Board currently has eight (8) members comprising of four (4) Non-Independent Executive Directors and four
(4) Independent Non-Executive Directors. This fulfils the one third (1/3) independence requirement.
Mr. Kuan Kam Hon takes on the role of Executive Chairman of the Group. Given his capability to show
leadership, entrepreneurship skills, business acumen and vast experience in the glove industry, the Board
continues to maintain this arrangement which is in the best interests of the Group.
All the Directors have given their undertaking to comply with the Listing Requirements of Bursa Securities and the
Independent Directors have confirmed their independence in writing.
34
CORPORATE GOVERNANCE AND

(contd)
Board Responsibilities
Having recognised the importance of an effective and dynamic Board, the Boards members are guided by the
area of responsibilities as outlined:
Reviewing and adopting strategic plans for the Group;
Overseeing the conduct of the Groups businesses to evaluate whether the businesses are properly managed;
Identifying the principal risks and key performance indicators of the Groups businesses and ensuring that
appropriate systems are implemented and/or steps are taken to manage these risks;
Developing and implementing an investor relations programme or shareholder communication policy for the
Group; and
Reviewing the adequacy and the integrity of the Groups internal control systems and management
information systems, including systems for compliance with applicable laws, regulations, rules, directives
and guidelines.
Appointments to the Board
Nomination Committee
The Nomination Committee comprises the following members:
Name of Director
Designation
Directorship
Chairman
Senior Independent Non-Executive
Chuah Phaik Sim
Member
Independent Non-Executive
Liew Ben Poh
Member
Independent Non-Executive
The Board annually reviews the required mix of skills, experience and other qualities of the Directors to ensure
that the Board is functioning effectively and efficiently.
The Nomination Committees primary responsibilities include:
(a) leading the process for Board appointments and making recommendations to the Board.
(b) assessing Directors on an ongoing basis.
(c) annually reviewing the required skills and core competencies of Non-Executive Directors, including
familiarisation with the Companys operations.
35

(contd)
Re-Election of Directors
In accordance with the Companys Article of Association, all Directors including Directors holding an executive
position of Chief Executive Officer or Managing Director, if any, shall retire from office at each Annual General
Meeting, provided always that every Director shall retire at least once every three (3) years. The retiring
Directors shall be eligible to offer themselves for re-election. Directors who are appointed by the Board during
the financial year shall hold office until the next Annual General Meeting and shall then be eligible for reelection, but shall not be taken into account in determining the number of Directors who are to retire by rotation
at such meeting.
Directors Training
The Group acknowledges the fact that continuous education is vital for the Board members to gain insight
into the state of the economy, technological advances in the core business, latest regulatory updates, and
management strategies. In compliance with the Listing Requirements and the relevant Practice Note issued by
Bursa Securities, all Directors have completed their Mandatory Accreditation Programme (MAP) prescribed
by Bursa Securities.
The Directors are also aware of their duty to undergo appropriate training from time to time to ensure that they
are equipped to carry out their duties effectively. The Board is mindful therefore of the need to keep abreast of
changes in both the regulatory and business environments as well as new developments within the industry in
which the Group operates. Whenever the need arises, the Company provides briefings of new recruits to the
Board, to ensure they have a comprehensive understanding on the operations of the Group and the Company.
During the financial year, the Directors have attended the following conferences and training programmes:
Training Attended
Date
Invest Malaysia Kuala Lumpur 2013
12 - 14 June 2013
Bursa Securities: Advocacy Session on Corporate Disclosure for Directors of
5 September 2013
Listed Issuers
Deloitte & Touche Budget 2014 Update Seminar
12 November 2013
GST From A Legal Perspective: GST Operations, Powers of Customs, Rights
17 February 2014
of Taxpayers, Appeals
Budget 2014 Tax Amendments and Current Tax Issues
36
18 March 2014

(contd)
Supply of Information
The Board has a formal schedule of matters for decision-making to ensure that the direction and control of the
Group is firmly in its hands.
Prior to each Board meeting, a full agenda together with relevant reports and comprehensive Board papers
would be distributed to all Directors on a timely basis to enable the Directors to consider the matters to be
deliberated and where necessary, obtain further information.
Proceedings of Board meetings are duly recorded and signed by the Chairman of the meeting.
Every Director has full and timely access to all Group information, records, documents and property to enable
them to discharge their duties and responsibilities effectively. The Directors, whether collectively or individually,
may seek independent professional advice in furtherance of their duties at the Companys expense, if required.
Board Meetings
During the financial year under review, six (6) board meetings were held. Details of attendance of each
individual Director in respect of the meetings held are disclosed below:
Name of Director
Meetings Attended
6/6
5/6
Chuah Phaik Sim
6/6
6/6
Kuan Mun Keng
6/6
Kuan Mun Leong
5/6
Liew Ben Poh
6/6
6/6
During the financial year ended 31 March 2014, six Board meetings were convened on 7/5/2013,
9/7/2013, 18/7/2013, 6/8/2013, 12/11/2013 and 11/2/2014 respectively.
Restriction on Directorships
The number of Directorships held by the Directors is stated in the Profile of Directors in the Annual Report.
37

(contd)
Board Committees
The Board has established the following Committees to assist the Board in discharging its duties and
responsibilities effectively:
Audit Committee
Remuneration Committee
The terms of reference of each Board Committee are set out in Board Charter and have been approved by
the Board. These Committees have the authority to examine particular issues and report to the Board with their
recommendations. However, the ultimate responsibility for the final decision on all matters lies with the Board.
Audit Committee
The report of the Audit Committee is set out on pages 45 to 48 of this Annual Report.
The details of the Nomination Committee are set out on page 9 of this Annual Report.
Remuneration Committee
The details of the Remuneration Committee are set out on page 9 of this Annual Report.
In line with best practices in Corporate Governance, the Code recommends the establishment of the following
committees:
1) Nomination Committee
The primary function of the Nomination Committee is to propose new nominees for the Board and to assess
Directors on an ongoing basis.
As the existing Board members are professionals from diverse disciplines, the Board collectively undertakes
to review the required skills sets annually to ensure that it has an optimal mix of expertise and experience.
2) Remuneration Committee
The primary function is to set the policy framework for the remuneration of the Directors to ensure that the policy
on Directors is sufficient to attract and retain Directors of the calibre needed to manage the Group successfully.
38

(contd)
The determination of remuneration of our Executive and Non-Executive Directors shall be a matter to be determined
by our Board as a whole after taking into consideration the Remuneration Committees recommendation.
SECTION 2: DIRECTORS REMUNERATION

(a) Remuneration Procedure
The remuneration of Directors is formulated to be competitive and realistic, emphasis being placed on
performance and calibre, with aims to attract, motivate and retain Directors with the relevant experience,
expertise and quality needed to assist in managing the Group effectively.
For Executive Directors, the remuneration packages link rewards to corporate and individual performance
whilst for the Non-Executive Directors, the level of remuneration is linked to their experience and level of
responsibilities undertaken.
The level of remuneration for the Executive Directors is determined by the Remuneration Committee
after giving due consideration to the compensation levels for comparable positions among other similar
Malaysian public listed companies. The determination of the remuneration package of Non-Executive
Directors, including Executive Chairman should be a matter for the Board as a whole. The individuals
concerned should abstain from discussing their own remuneration.
The Remuneration Committees primary responsibilities include establishing, reviewing and recommending
to the Board the remuneration packages of each individual Executive Director and the Company Secretary.
The Remuneration Committee is also responsible for recommending the remuneration for the senior
management and that the remuneration should reflect the responsibility and commitment that goes with it.
The primary roles and responsibilities of the Committee are clearly defined and include the following:
To review the required mix of skills, experience and other qualifications which Directors (including
Independent Directors) should bring to the Board in order for the Board to function effectively;
To annually review and assess the contribution of each individual Director and to recommend to the
Board new candidates for appointment as Director if there is a need for additional Board Members;
To recommend to the Board a framework for remuneration for the Board and each Executive Director,
which includes but is not limited to Directors fees, salaries, allowances, bonuses, options and benefitsin-kind; and
To establish objectives, performance criteria and measurement to evaluate the performance and
effectiveness of the Board as a whole and to assess the contribution by each individual Director.
39

(contd)
(b) Directors Remuneration
In the case of Executive Directors, the remuneration package is structured to reward corporate and
individual performance while for Non-Executive Directors the remuneration reflects the experience and level
of responsibilities undertaken.
The aggregate Directors remuneration paid or payable or otherwise made available to all Directors of the
Company during the financial year was as follows:
Salaries & Other
Benefit in Kind
Category
Fees (RM)
Emoluments (RM)
(RM)
Executive Director
216,000
3,449,968
745,115
Non-Executive Director
168,000
27,000
Directors remuneration is broadly categorised into the following bands:

Number of Executive
Number of Non-Executive
Directors
Directors
Below RM50,000
RM50,001 to RM100,000
RM450,001 to RM500,000
RM1,050,001 to RM1,100,000
RM1,200,001 to RM1,250,000
RM1,650,001 to RM1,700,000
Range of Remuneration
40

(contd)
SECTION 3: SHAREHOLDERS
Dialogue between Company and Investors
The Group recognises the importance of communication with its shareholders and utilises many channels to
disseminate information and to interact with them. The Group has a website in which shareholders and the
public can access up-to-date information about the business and the Group. The Groups website can be
accessed at www.hartalega.com.my.
In addition, the Group makes various announcements on business developments using traditional mass media
throughout the year. The Group also releases financial results on a quarterly basis according to Bursa Malaysias
requirements.
The Group also aims to have full interaction with fund managers, institutional investors and analysts. The Group
has established a Corporate Affairs department designated for investor relations. During the year, the Group
has arranged for Executive Directors and Senior Management to communicate and meet with investors and
analysts to brief them on the ongoing business landscape.
Information is disseminated in strict adherence to disclosure requirements of Bursa Malaysia Securities Berhad.
The Annual General Meeting
The Annual General Meeting serves as an important means for shareholder communication. Notice of the
Annual General Meeting and Annual Reports are sent to shareholders twenty one days prior to the Meeting.
At each Annual General Meeting, the Board presents the progress and performance of the Groups business and
encourages attendance and participation of shareholders during question and answer sessions. The Chairman
and the Board will respond to all questions raised by the shareholders during the Annual General Meeting.
41

(contd)
SECTION 4: ACCOUNTABILITY AND AUDIT
Financial Reporting
The Board aims to provide and present a clear, balanced and comprehensive assessment of the Groups
financial performance and prospects through the quarterly announcement of results to Bursa Malaysia as well as
the Chairmans statement, review of operations and annual financial statements in the Annual Report. The Audit
Committee assists the Board in ensuring accuracy and adequacy of information by overseeing and reviewing
the financial statements and quarterly announcements prior to the submission to Bursa Securities.
The Directors are responsible to ensure that the annual financial statements are drawn up in accordance with
the applicable approved accounting standards in Malaysia and the Companies Act 1965. The Statement of
Directors Responsibilities in relation to preparing the financial statements is set out separately in Section 5.
Risk Management and Internal Control
The Board is committed to maintaining a sound system of internal control within the Group. The Board
acknowledges that a good system of internal control covering all aspects of the business including compliance
and risk management is required to safeguard shareholders investment and the Groups assets.
Information on the Groups internal control is set out in the Statement on Risk Management and Internal Control
located on page 49 of this report.
Relationship with Auditors
The Board has a formal and transparent relationship with its auditor Messrs. Deloitte & Touche. The external
auditor through its statutory audit function continues to review, evaluate and refine the Groups accounting
policies and procedures including internal control measures.
42

(contd)
SECTION 5: RESPONSIBILITY STATEMENT BY DIRECTORS
The Board is responsible to prepare financial statements for each financial year, which give a true and fair
view of the state of affairs of the Group and the Company and of the results and cash flow of the Group and
the Company for the financial year ended.
In preparing the financial statements, the Directors have:
(i) Adopted the appropriate accounting policies and applied them consistently;
(ii) Made judgements and estimates that are reasonable and prudent;
(iii) Ensured applicable approved accounting standards have been followed and any material departures have
been disclosed and explained in the financial statements; and
(iv) Ensured the financial statements have been prepared on a going concern basis.
The Board is responsible for keeping proper accounting records of the Group and the Company, which
disclose with reasonable accuracy the financial position of the Group and the Company, and which will enable
them to ensure the financial statements have complied with the provisions of the Companies Act 1965 and the
applicable approved accounting standards in Malaysia.
The Board is also responsible for taking reasonable steps to safeguard the assets of the Company to prevent
and detect fraud and other irregularities.
43

(contd)
SECTION 6: COMPLIANCE STATEMENT
The Company has, in all material aspects, complied with the recommendations of the Code throughout the
financial year, save for the following:
(a) The Board must comprise a majority of Independent Directors where the Chairman of the Board is not an
Independent Director;
(b) Formalise, periodically review and make public Board Charter.
However, moving forward, the Board will take steps to appoint additional Independent Directors so that the
Board comprises a majority of Independent Directors where the Chairman of the Board is not an Independent
Director or to restructure its composition to be in line with the recommendations of the Code.
Going forward, the Board intends to strengthen its roles and responsibilities by:
(i) Defining the Board schedule of matters of those functions reserved to the Board and delegated to
management;
(ii) Implementing a whistle blowing policy and procedure to provide employees with a mechanism to monitor
compliance to the code of ethics;
(iii) Setting out clearly the code of conduct that stipulates the sound principles to provide guidance to stakeholders
on the ethical behaviours to be expected from the Group;
(iv) Defining its business sustainability policy and ensuring its current business decision making process
incorporates the elements of Environment, Social and Governance (ESG) within its value chain in the
business processes; and
(v) Formalising the above actions into its Board charter and creating a new page on corporate governance in
the present corporate website to keep the public and shareholder informed of its progress and status of the
above actions.
This statement is made in accordance with the resolution of the Board of Directors dated 8 July 2014.
44
UDIT COMMITTEE REPORT

A. Composition and Attendance
The Audit Committee comprises the following members and details of attendance of each member at
committee meetings held during the year ended 31 March 2014 are as follows:
Composition of the Committee
Chuah Phaik Sim
Attendance
6/6
(Chairperson/Independent Non-Executive Director)

6/6
(Senior Independent Non-Executive Director)

6/6
(Independent Non-Executive Director)

B. Composition Compliance
The Audit Committee consists of three (3) members all of whom are Independent Non-Executive Directors.
None of them are alternate directors. Chuah Phaik Sim who is a member of MIA, chairs the Audit Committee.
C. Terms of Reference
Authority
The Committee shall, in accordance with procedures determined by the Board and at the expense of the
Company:
Investigate any activity within its terms of reference, with the co-operation of all employees as directed
by the Board and the Committee;
Have full and unrestricted access to all information, documents and resources required to perform its
duties as well as to the internal and external auditors and senior management of the Company and
Group;
Obtain independent professional advice or other advice and to secure the attendance of external
parties with relevant experience and expertise if necessary;
Convene meetings with the internal or external auditors, without the attendance of the Executive
Directors, whenever deemed necessary; and
Make relevant reports when necessary to the relevant authorities when a breach of the Listing
Requirements has occurred.
45

(contd)
Responsibilities and Duties
The Audit Committee shall be the focal point for communication between external auditors, internal
auditors, Directors and the management on matters in connection with financial accounting, reporting and
controls. It shall also ensure that accounting policies and practices are adhered to by the Company and
its subsidiaries.
The duties of the Audit Committee shall include the following:
(i) To review the quality of the external auditors and to make recommendations on their appointment,
termination and remuneration;
(ii) To review the audit plan and audit reports, including the evaluation of the internal control system with
the external auditors;
(iii) To review the independence and objectivity of the external auditors and their services, including nonaudit services;
(iv) To review the liaison between the external auditors, management and the Board, and the assistance
given by management to the external auditors;
(v) To discuss problems and reservations arising from the interim and final audits, and any matter the
auditor may wish to discuss;
(vi) To review the external auditors audit report, management letter and managements response;
(vii) To review the assistance given by the employees of the Company and its subsidiaries to the external
auditor;
(viii) To consider the appointment of the internal auditor, the audit fees and any questions of their resignation
or dismissal;
(ix) To review the internal audit functions namely:
The adequacy of the scope, functions and resources of the internal audit function, and that it has
the necessary authority to carry out its work;
The internal audit programme and results of the internal audit process and where necessary, ensure
that appropriate action is taken on the recommendations of the internal auditor; and
The performance of the internal auditor, whose role includes the examination and evaluation of the
Groups operations and their compliance with the relevant policies, codes and legislations;
(x) To review the quarterly reporting to Bursa Malaysia Securities Berhad and year-end annual financial
statements before submission to the Board, focusing on major accounting policy changes, significant
audit issues in relation to the estimates and judgement areas, significant and unusual events, and
compliance with accounting standards and other legal requirements;
(xi) To monitor any related party transactions and recurring related party transactions that may arise within
the Group and to report, if any, transactions that may arise within the Group and any related party
outside the Group that are not based on arms-length terms and are disadvantageous to the Group;
(xii) To review any related party transaction and conflict of interest situation that may arise within the Group
including any transaction, procedure or cause of conduct that may raise questions of management
integrity;
46

(contd)
Responsibilities and Duties (contd)
(xiii) To consider the major findings of internal investigations and managements response;
(xiv) To verify the allocation of the Executive Share Option Scheme (ESOS) in compliance with criteria as
stipulated in the by-laws of the ESOS of the Company;
(xv) To review and monitor the effectiveness of the Groups system of internal control; and
(xvi) To consider other matters as defined by the Board.
Meetings
The Committee will meet at least four (4) times a year and at such additional meetings as the Chairman
shall decide in order to fulfil its duties. The external auditors may request a meeting if they consider that one
is necessary.
The Quorum for each meeting shall be two (2) members and the majority of members present must be
Independent Non-Executive Directors.
The authorised Officers and a representative of the external auditors may attend meetings at the invitation
of the Committee. Other Board members shall also have the right of attendance upon the invitation of
the Committee. If necessary, the Committee shall meet with the external auditors without executive Board
members present.
The Secretary to the Committee shall be the Company Secretary or any other person appointed by the
Committee.
The Secretary shall be responsible, in conjunction with the Chairman, for drawing up the Agenda and
circulating it to the Committee members prior to each meeting. The Secretary will also be responsible for
keeping the minutes of the meeting of the Committee, and circulating to the Committee members and to
other members of the Board.
A Resolution in writing signed or approved by letter by all the members of the Audit Committee who are
sufficient to form a Quorum shall be valid and effectual as if it had been passed at a meeting of the Audit
Committee duly called and constituted. All such resolution shall be described as Audit Committee Circular
Resolution and shall be forwarded or otherwise delivered to the Secretary without delay, and shall be
recorded by him in the Companys minute book. Any such resolution may consist of several documents in
like form, each signed by one (1) or more members.
47

(contd)
D. Summary of Activities
The following activities were carried out by the Audit Committee during the year under review:
(i) Reviewed the quarterly financial statements and Annual Report of the Group prior to presentation to the
Board for approval;
(ii) Reviewed the audit fees and remuneration payable to external and internal auditors;
(iii) Reviewed with internal auditors their audit plan prior to commencement of audit;
(iv) Reviewed the audit plan and audit reports, including the evaluation of the internal control system with
the external auditors;
(v) Reviewed the internal audit reports and ensured that appropriate actions were taken on the
recommendations of the internal auditor; and
(vi) Verified the allocation of options shares pursuant to the ESOS to eligible employees had been made in
accordance with criteria as stipulated in the ESOS by-laws of the Company.
The Committee discharged its duties and responsibilities in accordance with its Terms of Reference.
E. Internal Audit Function
The Group outsourced its internal audit function to an external consultant. The cost incurred for the internal
audit function in respect of the financial year ended 31 March 2014 was RM66,000 (2013: RM100,000).
The role of the internal audit function is to assist the Audit Committee and the Board of Directors in
monitoring and managing risks and internal controls of the Group. A systematic and disciplined approach
is used to evaluate and improve the effectiveness of risk management, operational and internal controls,
and compliance with laws and regulations.
The internal annual audit planning memorandum established is reviewed and approved by the Audit
Committee before commencement of the financial year.
Internal audits are carried out in accordance with the internal annual planning memorandum and reports
are issued to the Audit Committee for tabling at the Audit Committee meetings. The Audit Committee
deliberates on the findings and recommendations as reported by the Internal Auditors and monitors to
ensure appropriate follow-up actions are taken on the recommendations of the internal auditor.
48
tatement on RISK MANAGEMENT

AND Internal Control
INTRODUCTION
The Statement on Risk Management and Internal Control (the Statement) is prepared pursuant to the Main
Market Listing Requirements of Bursa Malaysia Securities Berhad and in accordance with the Statement on Risk
Management and Internal Control: Guidelines for Directors of Listed Issuers, a publication of Bursa Malaysia
Securities Berhad.
BOARD RESPONSIBILITIES
The Board of Directors is committed to maintaining a sound system of risk management and internal control within
the Group. The Board acknowledges that a good system of internal control covering all aspects of the business
including compliance and risk management is required to safeguard shareholders investment and the Groups
assets. The Board also further acknowledges that it is their responsibility to review the risk management and
internal control system for its adequacy, effectiveness and integrity to achieve the said objectives. The following
outlines the nature and scope of risk management and internal control of the Group.
The system of risk management and internal control is designed to manage risk to a reasonable level rather than
to eliminate the risk of failure to achieve the Groups business objectives. It can therefore only provide reasonable
and not absolute assurance against material misstatement or financial losses or fraud. In achieving the Groups
business objectives, the Board assumes its responsibilities in designing the system of risk management and
internal control based on the principles of identifying and prioritising risk, evaluating the likelihood of those risks
being realised and the impact should they be realised, and then, managing them effectively, efficiently and
economically.
Management is responsible for assisting the Board in implementing and monitoring the procedures and processes
which identify, assess and monitor business risks and internal controls, and to take responsive corrective action as
and when needed. The Board has received assurance from the Managing Director and the Corporate Finance
Director that the Groups risk management and internal control system is operating adequately and effectively,
and that it did so in all material aspects for the financial year under review and up to the date of this Statement.
49
Statement on RISK MANAGEMENT

(contd)
RISK MANAGEMENT FRAMEWORK
In line with the increasing focus of shareholders on Corporate Governance, the Company embarked on
risk management initiatives. The Company has established and formalised its Enterprise Risk Management
Framework (ERM). Under the ERM framework, a Risk Management Working Group (RMWG) is established.
The key responsibilities of the RMWG are to provide regular reporting and update to the Board on key risk
management issues. The RMWG is also responsible to champion and promote the ERM and to ensure that the
risk management process and culture are embedded throughout the Group.
The RMWG is headed by the Managing Director. The RMWG will meet regularly where the Head of Departments
have the overall responsibility to report the key risks to the attention of the RMWG. The Managing Director is
responsible to report to the Board on a regular basis on major risk areas.
The key principles of the Groups ERM policy are:
Effective risk management contributes to effective governance and is integral to the achievement of business
objectives.
It is the responsibility of every employee of the organisation to manage risks within their areas of responsibility.
Risk management should be embedded into the day-to-day management processes and is explicitly applied
in decision-making and strategic planning.
The risk management processes applied should aim to take advantage of opportunities, manage uncertainties
and minimise threats.
Regular reporting and monitoring activities emphasise the accountability and responsibility for managing
risks.
50

(contd)
INTERNAL AUDIT AND ISO AUDIT FUNCTION
To maintain a sound system of internal control, the Group relies on its two (2) assurance mechanisms, namely:
(i) Internal Audit; and
(ii) ISO Audit.
The internal audit function has been outsourced to provide independence from the activities and operations of
the Group, thereby providing the Audit Committee and the Board assurance with regards to the adequacy,
effectiveness and integrity of the system of internal control.
The internal audit reviews are executed based on an internal audit plan approved by the Audit Committee. The
findings of the internal audit reviews together with managements comments and action plans to address the audit
findings are presented and reviewed by the Audit Committee. Follow-up reviews have also been conducted to
report to the Audit Committee on the status of implementation of management action plans.
As per requirement of the ISO 9001, ISO 13485 and ISO 14001 certifications, scheduled audits are conducted
internally as well as by the certification body, TV SD. Issues arising from these audits are forwarded to the
Management Representative for review.
OTHER KEY ELEMENTS OF RISK MANAGEMENT AND INTERNAL CONTROL
Apart from risk management and internal audit function, the Board has also put in place the following elements
as part of the Groups system of internal control:
Company policies and procedures that adhere to ISO 9001:2008, ISO 13485:2003 and ISO
14001:2004 management systems are in place for its major subsidiary company, Hartalega Sdn Bhd and
they are reviewed annually for their effectiveness;
Clearly defined organisational structure with proper delegation of responsibilities and accountability.
Appropriate authority limits are established for the approval process, therefore minimising the risk of
unauthorised transactions;
Annual budget system is in place. There is requirement for the timely submission of monthly financial reports
and key operational performance indicators to the management;
Human resource function sets out policies for recruitment, training and staff appraisal to ensure that staff is
competent and adequately trained in carrying out their responsibilities; and
All new products go through defined design control, and new machines and production processes go
through a verification and validation process before implementation.
51

(contd)
CONCLUSION
During the financial year ended 31 March 2014, the Board is of the view that there have been no significant
weaknesses identified in the risk management and internal control system. However, a number of minor internal
control weaknesses were noted, all of which have been, or are being addressed. These were not expected
to result in any material loss, contingencies or uncertainties that would require disclosure in this Annual Report.
REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS
The external auditors have reviewed this Statement on Risk Management and Internal Control for the inclusion
in the Annual Report of the Group for the year ended 31 March 2014 and reported to the Board that nothing
has come to their attention that causes them to believe that the Statement is inconsistent with their understanding
of the process adopted by the Board in reviewing the adequacy and effectiveness of the risk management and
internal control system.
52
eport and Financial Statements
For the FINANCIAL year ended 31 March 2014
Directors Report
54
Statement by Directors
62
Statutory Declaration
62
Independent Auditors Report to the Members
63
Consolidated Statement of Profit or Loss

and Other Comprehensive Income
66
Consolidated Statement of Financial Position
68
Consolidated Statement of Changes in Equity
70
Consolidated Statement of Cash Flows
72
Statement of Profit or Loss

and Other Comprehensive Income
74
Statement of Financial Position
75
Statement of Changes in Equity
76
Statement of Cash Flows
78
Notes to the Financial Statements
80
Supplementary Information on the Disclosure of

Realised and Unrealised Profits and Losses
155
53
irectors Report
The Directors have pleasure in submitting their report and the audited financial statements of the Group and of
the Company for the financial year ended 31 March 2014.
PRINCIPAL ACTIVITIES
The Company is principally engaged in investment holding. The principal activities of the subsidiaries are stated
in Note 11 to the financial statements. There have been no significant changes in the nature of these activities
during the financial year.
RESULTS
Profit for the financial year
Group
Company
RM
RM
233,292,997
114,105,469
232,813,348
114,105,469
479,649
233,292,997
114,105,469
Attributable to:
Owners of the Company
Non-controlling interests
DIVIDENDS
Dividends paid, declared and proposed by the Company since the end of the previous financial year were:
(i) third interim single tier exempt dividend of 3.5 sen per share amounting to RM25,689,300 in respect of
financial year ended 31 March 2013 as reported in the Directors Report of that financial year, declared
on 7 May 2013 and paid on 20 June 2013;
(ii) final single tier exempt dividend of 4 sen per share amounting to RM29,697,101 in respect of financial
year ended 31 March 2013 as reported in the Directors Report of that financial year, approved by
shareholders at the last Annual General Meeting on 27 August 2013 and paid on 19 September 2013;
(iii) first interim single tier exempt dividend of 3.5 sen per share amounting to RM26,072,949 in respect of the
current financial year, declared on 12 November 2013 and paid on 19 December 2013;
(iv) second interim single tier exempt dividend of 3.5 sen per share amounting to RM26,139,884 in respect
of the current financial year, declared on 11 February 2014 and paid on 27 March 2014; and
(v) third interim single tier exempt dividend of 3.5 sen per share amounting to RM26,155,733 in respect of
the current financial year, declared on 6 May 2014 and paid on 18 June 2014.
The Directors recommended a final single tier exempt dividend of 4 sen per share amounting to RM30,299,461
based on the number of outstanding ordinary shares in issue as at the date of this report, in respect of the
current financial year, subject to the approval of the shareholders at the forthcoming Annual General Meeting.
The financial statements for the current financial year do not reflect the third interim dividend declared and final
dividend proposed. Such dividends will be accounted for in equity as an appropriation of retained earnings in
the financial year ending 31 March 2015.
54
Directors Report (contd)
RESERVES AND PROVISIONS

There were no material transfers to or from reserves or provisions during the financial year other than those
disclosed in the financial statements.
BAD AND DOUBTFUL DEBTS
Before the statements of profit or loss and other comprehensive income and statements of financial position 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 doubtful debts and
have satisfied themselves that all known bad debts had been written off and that adequate allowance had been
made for doubtful debts.
At the date of this report, the Directors are not aware of any circumstances which would render the amount
written off as bad debts or the amount of allowance for doubtful debts in the financial statements of the Group
and of the Company inadequate to any substantial extent.
CURRENT ASSETS
Before the statements of profit or loss and other comprehensive income and statements of financial position of
the Group and of the Company were made out, the Directors took reasonable steps to ensure that any current
assets, other than debts, which were unlikely to realise in the ordinary course of business including their values
as shown in the accounting records of the Group and of the Company had 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 financial statements of the Group and of the Company 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 method of valuation of assets or liabilities of the Group and of the Company misleading
or inappropriate.
55
CONTINGENT AND OTHER LIABILITIES

At the date of this report, there does not exist:
(i) any charge on the assets of the Group or of the Company which has arisen since the end of the financial
year which secures the liabilities of any other person; or
(ii) any contingent liabilities in respect of the Group or of the Company which has arisen since the end of the
financial year.
No contingent liabilities or other liabilities of the Group or of the Company has become enforceable, or is
likely to become enforceable within the period of twelve months after the end of the financial year which, in the
opinion of the Directors, will or may affect the ability of the Group or of the Company to meet their obligations
as and 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 financial statements of the Group and of the Company which would render any amount stated in the
financial statements misleading.
ITEMS OF AN UNUSUAL NATURE
In the opinion of the Directors:
(i) the results of the operations of the Group and of the Company for the financial year were not substantially
affected by any item, transaction or event of a material and unusual nature; and
(ii) there has not arisen in the interval between the end of the financial year and the date of this report any item,
transaction or event of a material and unusual nature likely to affect substantially the results of the operations
of the Group and of the Company for the financial year in which this report is made.
ISSUE OF SHARES
During the financial year, the Company increased its issued and paid-up ordinary share capital from
RM366,654,150 to RM373,516,183 by way of:
(i) issuance of 5,464,400 ordinary shares of RM0.50 each for cash pursuant to the exercise of Executive
Share Option Scheme (ESOS) at exercise prices of between RM2.20 and RM5.75 per ordinary share;
and
(ii) issuance of 8,259,666 ordinary shares of RM0.50 each for cash pursuant to the exercise of Warrants at
an exercise price of RM4.14 per ordinary share.
The new ordinary shares issued during the financial year ranked pari passu in all respect with the existing
ordinary shares of the Company.
The Company has not issued any new debentures during the financial year.
56
WARRANTS 2012/2015
On 30 May 2012, the Company issued free warrants (the warrants 2012/2015) constituted under the
Deed Poll dated 14 May 2012.
The salient features of the warrants 2012/2015 are as follows:
(a) entitles its registered holders to subscribe for one (1) new ordinary share of RM0.50 each at the exercise
price during the exercise period;
(b) the exercise price is RM4.14 per share subject to adjustments in accordance with the provisions of the deed
poll executed; and
(c) the warrants 2012/2015 may be exercised at any time for a period of two years commencing from 5
June 2013 until 4 June 2015 (exercise period). The warrants 2012/2015 that are not exercised during
the exercise period will thereafter lapse and become void.
The movements in the Companys warrants 2012/2015 to subscribe for new ordinary shares of RM0.50 each
during the financial year is as follows:
Number of warrants
At
Number of warrants 2012/2015
At
1.4.2013
Granted
Exercised
31.3.2014
73,110,600
(8,259,666)
64,850,934
OPTIONS GRANTED OVER UNISSUED SHARES

No options were granted to any person to take up unissued shares of the Company or of any other company
during the financial year apart from the warrants 2012/2015 and Executive Share Option Scheme.
EXECUTIVE SHARE OPTION SCHEME
At an Extraordinary General Meeting held on 25 March 2010, shareholders approved the Executive Share
Option Scheme (ESOS) to subscribe for unissued new ordinary shares of RM0.50 each in the Company
which were granted to eligible Executive Directors and executives of the Company and/or its subsidiaries
(excluding subsidiaries that are dormant).
The salient features and other terms of the ESOS are disclosed in Note 19 to the financial statements.
During the financial year, the Company granted a total of 1,780,100 share options under the ESOS.
57
EXECUTIVE SHARE OPTION SCHEME (contd)

Details of all the options granted during the financial year to subscribe for ordinary shares of the Company
pursuant to the ESOS as at 31 March 2014 are as follows:
Exercise price
Number of
Expiry date
RM
options
31.3.2015
4.74
978,500
31.3.2015
5.75
577,200
31.3.2015
6.53
97,300
31.3.2015
6.24
127,100
1,780,100
The Company has been granted exemption by the Companies Commission of Malaysia vide its letter dated 30
May 2014 from having to disclose the list of option holders, other than Directors, to whom options have been
granted during the financial year and details of their holdings pursuant to Section 169(11) of the Companies
Act 1965 in Malaysia except for information of employees who were granted 54,000 options and above.
The list of option holders granted 54,000 options and above during the financial year are as follows:
Number of share options
Name
Grant date Expiry date
Exercise
price Granted
Exercised
At
31.3.2014
RM
000
000
000
Seow Teck Choong
3.5.2013 31.3.2015
4.74
126.3
(12.0)
114.3
Kumarasan A/L Muthian
3.5.2013 31.3.2015
4.74
154.9
(77.4)
77.5
Kok Hong Leong
3.5.2013 31.3.2015
4.74
111.4
(55.7)
55.7
Peter Johnson A/L

Anthonysamy
3.5.2013 31.3.2015
4.74
60.3
(30.0)
30.3
Nasarudin Bin Abd Majid
3.5.2013 31.3.2015
4.74
55.2
(27.6)
27.6
Sritharan A/L Kandasamy
30.8.2013 31.3.2015
5.75
138.1
138.1
Kuang Chee Kin
30.8.2013 31.3.2015
5.75
102.9
102.9
Rohani Binti Ramlan
30.8.2013 31.3.2015
5.75
64.8
64.8
Ahmad Irwan Bin Ghani
30.8.2013 31.3.2015
5.75
54.0
54.0
Mohammad Ritzman Bin

Abd Rahim
11.11.2013 31.3.2015
6.53
97.3
97.3
965.2
(202.7)
762.5
58
Directors options are disclosed under the Directors interests below.

DIRECTORS OF THE COMPANY
The Directors in office since the date of the last report are:
KUAN KAM HON @ KWAN KAM ONN
DATO MOHAMED ZAKRI BIN ABDUL RASHID
CHUAH PHAIK SIM
KUAN MUN KENG
KUAN MUN LEONG
LIEW BEN POH
DR DANARAJ A/L NADARAJAH
DATO TAN GUAN CHEONG
DIRECTORS INTERESTS
The interests of the Directors in office as at the end of the financial year in the shares and options over ordinary
shares of the Company and of the related corporations during the financial year ended 31 March 2014 are
as follows:
(a) Shareholdings in the holding company
- Hartalega Industries Sdn Bhd
Number of preference shares of RM1.00 each
At
At
1.4.2013
Bought
Sold
31.3.2014
45,933
45,933
Direct interests
Number of ordinary shares of RM1.00 each

At
At
1.4.2013
Bought
Sold
31.3.2014
45,959
45,959
49
49
Direct interests
Deemed interests
(1)
(1)
Shares held through a corporation in which the Director has substantial financial interests.
59
DIRECTORS INTERESTS (contd)

(b) Shareholdings in the Company
Number of ordinary shares of RM0.50 each
At
At
1.4.2013
Bought
Sold
31.3.2014
1,084,900
1,084,900
40,000
40,000
Direct interests
Dato Mohamed Zakri
bin Abdul Rashid
335,000
233,800
(440,700)
128,100
Chuah Phaik Sim
1,635,000
1,635,000
Kuan Mun Keng
1,374,000
1,374,000
Kuan Mun Leong
1,377,000
1,377,000
900,000
900,000
51,000
51,000
404,148,304
6,300,000(4)
4,351,200
4,351,200
14,000
14,000
Liew Ben Poh

Deemed interests
Dato Mohamed Zakri bin
Abdul Rashid (3)
Kuan Kam Hon
@ Kwan Kam Onn
Chuah Phaik Sim
Liew Ben Poh
(1)
(2)
(1)
(3)
- 410,448,304
Shares held through a corporation in which the Director has substantial financial interests.
(2)
Shares held through the holding company, Hartalega Industries Sdn Bhd and Budi Tenggara Sdn Bhd in
which the Director has substantial financial interests.
(3)
Shares held through spouse/children of the Director who herself/himself is not Director of the Company.
(4)
Conversion of warrants into ordinary shares for Hartalega Industries Sdn Bhd.
(c) Share Options in the Company

Executive Share Option Scheme (ESOS)
Number of ESOS over ordinary shares of RM0.50 each
At
60
At
1.4.2013
Granted
Exercised
31.3.2014
350,800
(233,800)
117,000
DIRECTORS INTERESTS (contd)

By virtue of his substantial interests in the shares of the Company, Kuan Kam Hon @ Kwan Kam Onn is also
deemed interested in the shares of the subsidiaries during the financial year to the extent that the Company has
an interest.
Other than as disclosed above, none of the other Directors in office at the end of the financial year had any
interest in shares in the Company or its related corporations during and at the end of the financial year.
DIRECTORS BENEFITS
Since the end of the previous financial year, no Director of the Company has received or 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) 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.
Neither during nor at the end of the financial year, was the Company a party to any arrangements whose
object is to enable the Directors to acquire benefits by means of the acquisition of shares in or debentures of
the Company or any other corporate body other than the ESOS as disclosed above.
HOLDING COMPANY
The Directors regard Hartalega Industries Sdn Bhd, a private limited company incorporated in Malaysia, as the
ultimate holding company of the Company.
SIGNIFICANT EVENTS
Details of significant events arising during the financial year are disclosed in Note 27 to the financial statements.
AUDITORS
The auditors, Messrs. Deloitte & Touche, have expressed their willingness to continue in office.
Signed on behalf of the Board in accordance with a resolution of the Directors dated 8 July 2014.
KUAN MUN LEONG
61
tatement by Directors
(Pursuant to Section 169(15) of the Companies Act 1965)

We, the undersigned, being two of the Directors of the Company, do hereby state that, in the opinion of the
Directors, the accompanying financial statements as set out on pages 66 to 154, 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 financial position of the Group
and of the Company as at 31 March 2014 and of their financial performance and cash flows for the financial
year then ended.
The supplementary information set out on page 155 has been prepared in accordance with the Guidance on Special
Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to
Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants (MIA
Guidance) and presented based on the format as prescribed by Bursa Malaysia Securities Berhad.
Signed on behalf of the Board in accordance with a resolution of the Directors dated 8 July 2014.
KUAN MUN LEONG
TATUTORY DECLARATION
(Pursuant to Section 169(16) of the Companies Act 1965)

I, Kuan Kam Hon @ Kwan Kam Onn, being the Director primarily responsible for the financial management of
the Company, do solemnly and sincerely declare that, to the best of my knowledge and belief, the financial
statements as set out on pages 66 to 154 and the supplementary information as set out on page 155 are
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 at
Kuala Lumpur in the Federal Territory on
8 July 2014

Before me
SHAFIE B. DAUD (W 350)

Commissioner for Oaths
62
NDEPENDENT AUDITORS REPORT TO The

MEMBERS OF HARTALEGA HOLDINGS BERHAD
(Incorporated in Malaysia)
Report on the Financial Statements
We have audited the financial statements of Hartalega Holdings Berhad, which comprise the statements of
financial position as at 31 March 2014 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 a summary of significant accounting policies and
other explanatory information, as set out on pages 66 to 154.
Directors Responsibility for the Financial Statements
The Directors of the Company are responsible for the preparation of these financial 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
financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial 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 whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on our judgement, including the assessment of risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
we consider internal control relevant to the entitys preparation of financial 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 controls. 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
63
Independent Auditors Report to the

Members of Hartalega Holdings Berhad
(contd)
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Group and of
the Company as at 31 March 2014 and of their financial performance and 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 1965 in Malaysia.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act 1965 in Malaysia, we also report that:
(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by
the Company and by the 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 accounts and auditors reports of the subsidiaries of which we have not acted as
auditors, as shown in Note 11 to the financial statements, being accounts that have been included in the
financial statements of the Group;
(c) We are satisfied that the financial statements of the subsidiaries that have been consolidated with the
Companys financial statements are in form and content appropriate and proper for the purposes of the
preparation of the financial statements of the Group, and we have received satisfactory information and
explanations as required by us for these purposes; and
(d) The auditors reports on the financial statements of the subsidiaries did not contain any qualification and did
not include any adverse comment made under Section 174(3) of the Act.
Other Reporting Responsibilities
The supplementary information set out on page 155 is disclosed to meet the requirement of Bursa Malaysia
Securities Berhad (Bursa Securities) and is not part of the financial statements. The Directors are responsible for
the preparation of the supplementary information in accordance with the Guidance on Special Matter No. 1,
Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia
Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants (MIA Guidance) and
the directive of Bursa Securities. In our opinion, the supplementary information is prepared, in all material respects,
in accordance with the MIA Guidance and the directive of Bursa Securities.
64
Independent Auditors Report to the

Members of Hartalega Holdings Berhad
(contd)
Other Matters
(a) The financial statements of the Group and of the Company for the financial year ended 31 March 2013
were audited by another firm of auditors and are presented here merely for comparative purpose. The report
issued by the predecessor auditors, which was dated 9 July 2013, expressed an unmodified opinion.
(b) 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 contents of this report.
DELOITTE & TOUCHE

AF 0834
Chartered Accountants
TEO SWEE CHUA

Partner - 2846/01/16(J)
Chartered Accountant
Kuala Lumpur
8 July 2014
65
onsolidated Statement of PROFIT OR

LOSS AND OTHER Comprehensive Income
2014
2013
RM
RM
1,107,079,365
1,032,035,687
Cost of sales
(739,241,658)
(684,941,859)
Gross profit
367,837,707
347,093,828
Other income
10,212,713
5,666,964
Distribution expenses
(14,579,435)
(12,656,029)
Administrative expenses
(42,579,525)
(34,480,320)
Other operating expenses
(11,630,151)
(622,405)
(68,789,111)
(47,758,754)
309,261,309
305,002,038
(310,562)
(903,234)
Note
Revenue
Profit from operations

Finance costs
Profit before tax
308,950,747
304,098,804
Tax expense
(75,657,750)
(70,506,299)
233,292,997
233,592,505
(343,525)
30,152
232,949,472
233,622,657
232,813,348
233,336,229
479,649
256,276
233,292,997
233,592,505
Profit for the financial year

Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation, representing other
comprehensive income/(loss) for the financial year, net
of tax
Total comprehensive income for the financial year
Profit attributable to:
66
Consolidated Statement of PROFIT OR LOSS

AND OTHER Comprehensive Income
(contd)
Note
2014
2013
RM
RM
232,460,468
233,358,661
489,004
263,996
232,949,472
233,622,657
Total comprehensive income attributable to:

Earnings per ordinary share attributable

to owners of the parent:
Basic earnings per ordinary share (sen)
31.39
31.88
Diluted earnings per ordinary share (sen)
30.20
31.44
The annexed notes form an integral part of, and should be read in conjunction with, these financial statements.
67
ONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 31 MARCH 2014
Note
2014
2013
RM
RM
ASSETS
Non-Current Assets
Property, plant and equipment
634,494,011
486,017,655
Capital work-in-progress
50,262,213
49,175,042
Intangible assets
10
6,651,563
7,112,144
Deferred tax assets
12
518,836
213,253
691,926,623
542,518,094
Total Non-Current Assets

Current Assets
Inventories
13
98,212,959
86,833,121
Trade and other receivables
14
149,419,618
128,978,881
Tax assets
15
111
Derivative financial assets
16
1,945,000
Deposits, cash and bank balances
17
170,550,036
181,896,729
420,127,613
397,708,842
1,112,054,236
940,226,936
Total Current Assets

TOTAL ASSETS
EQUITY AND LIABILITIES
Equity Attributable to Owners of the Company
Share capital
18
373,516,183
366,654,150
Reserves
19
568,737,934
397,067,525
942,254,117
763,721,675
1,306,034
817,030
943,560,151
764,538,705
Total Equity
68
Consolidated Statement of
Financial Position
As at 31 March 2014 (contd)
Note
2014
2013
RM
RM
Non-Current Liabilities
Loans and borrowings
20
1,837,709
4,583,138
Deferred tax liabilities
12
57,003,097
48,696,677
58,840,806
53,279,815
21
94,432,760
98,812,178
20
2,983,491
7,694,802
Derivatives financial liabilities
16
868,000
12,237,028
15,033,436
Total Current Liabilities
109,653,279
122,408,416
Total Liabilities
168,494,085
175,688,231
1,112,054,236
940,226,936
Total Non-Current Liabilities

Current Liabilities
Trade and other payables
Tax liabilities
TOTAL EQUITY AND LIABILITIES
69
onsolidated Statement
of Changes in Equity

Attributable to Owners of the Parent
Distributable
Non-Distributable
The Group
Note
At 1.4.2012
Share
capital
Share
premium
Translation
reserve
Share-based
payment
reserve
Retained
earnings
Sub total
Noncontrolling
interests
Total
equity
RM
RM
RM
RM
RM
RM
RM
RM
182,544,300
9,105,650
295,467
6,091,868
421,280,729
619,318,014
553,034
619,871,048
Comprehensive income
Profit for the financial
year
233,336,229
233,336,229
256,276
233,592,505
Other comprehensive
income
Foreign currency
translation
22,432
22,432
7,720
30,152
Total comprehensive
income for the
financial year
22,432
233,336,229
233,358,661
263,996
233,622,657
Transactions with
owners
Dividends
23
(98,807,194)
(98,807,194)
(98,807,194)
Share-based payment
granted under EES
and ESOS
19
2,542,226
2,542,226
2,542,226
1,333,350
5,976,618
7,309,968
7,309,968
(2,625,911)
Issuance of ordinary
shares pursuant to
ESOS
Transfer from sharebased payment
reserve upon
exercise/lapse of
EES and ESOS
2,468,858
157,053
Issuance of bonus shares
182,776,500
(10,987,131)
(171,789,369)
Total transactions with

owners
184,109,850
(2,541,655)
(83,685) (270,439,510)
(88,955,000)
(88,955,000)
At 31.3.2013
366,654,150
6,563,995
317,899
763,721,675
817,030
764,538,705
70
6,008,183
384,177,448
Consolidated Statement
of Changes in Equity
(CONTD)
Attributable to Owners of the Parent
Distributable
Non-Distributable
Share
capital
Share
premium
Translation
reserve
Share-based
payment
reserve
Retained
earnings
Sub total
Noncontrolling
interests
Total
equity
RM
RM
RM
RM
RM
RM
RM
RM
366,654,150
6,563,995
317,899
6,008,183
384,177,448
763,721,675
817,030
764,538,705
232,813,348
232,813,348
479,649
233,292,997
Foreign currency
translation
(352,880)
(352,880)
9,355
(343,525)
Total comprehensive
income for the
financial year
(352,880)
232,813,348
232,460,468
489,004
232,949,472
23
Share-based payment
granted under ESOS 19
3,853,880
3,853,880
3,853,880
shares pursuant to
ESOS
2,732,200
12,890,111
15,622,311
15,622,311
shares pursuant to
Warrants
4,129,833
30,065,184
34,195,017
34,195,017

reserve upon
exercise/lapse of
ESOS
4,333,199
(4,333,199)
6,862,033
47,288,494
(479,319) (107,599,234)
(53,928,026)
(53,928,026)
373,516,183
53,852,489
(34,981)
942,254,117
1,306,034
943,560,151
The Group
Note
At 1.4.2013
Comprehensive income
Profit for the financial
year
Other comprehensive
income
Transactions with
owners
Dividends
Total transactions with

owners
At 31.3.2014
(107,599,234) (107,599,234)
5,528,864
509,391,562
(107,599,234)
71
ONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2014

2014
2013
RM
RM
308,950,747
304,098,804
44,766,709
31,797,298
Share-based payment expense
3,853,880
2,542,226
Unrealised loss/(gain) on foreign exchange
1,094,448
(41,485)
Amortisation of intangible assets
465,418
125,793
Interest expense
310,562
903,234
Note
CASH FLOWS FROM/(USED IN) OPERATING EXPENSES
Profit before tax
Adjustments for:
Depreciation of property, plant and equipment
Bad debts written off
31,167
5,104
1,767
101,058
Income from fixed income fund
(3,798,049)
(2,995,373)
Fair value (gain)/loss on derivative financial instruments
(2,813,000)
103,000
Interest income
(1,086,500)
(837,667)
(5,862)
1,355
351,771,287
335,803,347
(Increase)/Decrease in inventories
(11,379,838)
10,698,901
Increase in receivables
(21,568,119)
(11,960,824)
(Decrease)/Increase in payables
(4,379,418)
38,301,839
Cash Generated From Operations
314,443,912
372,843,263
Income received from fixed income fund
3,798,049
2,995,373
Interest received
1,086,500
837,667
(70,472,814)
(59,108,740)
248,855,647
317,567,563
1,693,658
800
(106,905,668)
(6,439,260)
(4,837)
(7,016,605)
(89,109,396)
(180,699,656)
(9,863,404)
(204,189,647)
(194,154,721)
Impairment loss on trade receivables
(Gain)/Loss on disposal of property, plant and equipment

Operating Profit Before Working Capital Changes
Tax paid
Net Cash From Operating Activities
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES
Proceeds from disposal of property, plant and equipment
Additions to:
Property, plant and equipment
Intangible assets
Capital work-in-progress
Increase in deposit in Escrow Account
Net Cash Used In Investing Activities
72
8
10
9
CONSOLIDATED STATEMENT OF CASH FLOWS

(contd)
2014
2013
RM
RM
Exercise of Warrants
34,195,017
Exercise of ESOS
15,622,311
7,309,968
(107,599,234)
(98,807,194)
(7,443,786)
(12,463,591)
(310,562)
(903,234)
(12,954)
(21,618)
Net Cash Used In Financing Activities
(65,549,208)
(104,885,669)
NET (DECREASE)/INCREASE IN CASH AND CASH

EQUIVALENTS
(20,883,208)
18,527,173
(326,889)
152,991
CASH AND CASH EQUIVALENTS AT BEGINNING OF

THE FINANCIAL YEAR
181,896,729
163,216,565
CASH AND CASH EQUIVALENTS AT THE END OF THE

FINANCIAL YEAR (Note 17)
160,686,632
181,896,729
Note
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES
Proceeds from issuance of shares pursuant to:
Dividends paid
Repayments of term loans
Interest paid
Payments to finance lease payables
EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH

AND CASH EQUIVALENTS
73
TATEMENT OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME

2014
2013
RM
RM
108,676,239
97,228,381
Other income
7,885,691
8,433,627
Administrative expenses
(1,227,724)
(1,486,522)
Note
Revenue
Profit before tax
115,334,206
104,175,486
Tax expense
(1,228,737)
(1,427,558)
Profit for the financial year, representing total

comprehensive income for the financial year
114,105,469
102,747,928
74
TATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2014
Note
2014
2013
RM
RM
ASSETS
Non-Current Asset
Investments in subsidiaries
11
298,164,292
145,346,812
Other receivables
14
4,500
4,500
Amounts owing by subsidiaries
22
83,895,086
152,568,242
Deposits, cash and bank balances
17
77,308,962
101,476,024
Total Current Assets
161,208,548
254,048,766
TOTAL ASSETS
459,372,840
399,395,578
Current Assets
EQUITY AND LIABILITIES

Equity
Share capital
18
373,516,183
366,654,150
Reserves
19
85,442,979
32,127,569
458,959,162
398,781,719
376,715
301,062
36,963
312,797
Total Current Liabilities
413,678
613,859
Total Liabilities
413,678
613,859
459,372,840
399,395,578
Total Equity
Current Liabilities
Other payables
Tax liabilities
TOTAL EQUITY AND LIABILITIES
21
75
TATEMENT OF CHANGES IN EQUITY

Non-distributable
Note
At 1.4.2012
Profit for the
financial year,
representing total
comprehensive
income for the
financial year
Distributable
Share
capital
Share
premium
Share-based
payment
reserve
Retained
earnings
Total
equity
RM
RM
RM
RM
RM
182,544,300
9,105,650
6,091,868
187,246,973
384,988,791
102,747,928 102,747,928
(98,807,194) (98,807,194)
Transactions with
owners
Dividends
23
Share-based
payment granted
under EES and
ESOS
19
2,542,226
2,542,226
1,333,350
5,976,618
7,309,968
2,468,858
(2,625,911)
157,053
Issuance of
ordinary shares
pursuant to
ESOS
upon exercise/
lapse of EES and
ESOS
Issuance of bonus
shares
182,776,500 (10,987,131)
Total transactions
with owners
184,109,850
(2,541,655)
At 31.3.2013
366,654,150
6,563,995
76
(171,789,369)
(83,685) (270,439,510) (88,955,000)

6,008,183
19,555,391
398,781,719
STATEMENT OF CHANGES IN EQUITY

(contd)
Non-distributable
Note
At 31.3.2013
Profit for the
financial year,
representing total
comprehensive
income for the
financial year
Distributable
Share
capital
Share
premium
Share-based
payment
reserve
Retained
earnings
Total
equity
RM
RM
RM
RM
RM
366,654,150
6,563,995
6,008,183
19,555,391
398,781,719
114,105,469 114,105,469
(107,599,234) (107,599,234)
Transactions with
owners
Dividends
23
Share-based
payment granted
under ESOS
19
3,853,880
3,853,880
Issuance of
ordinary shares
pursuant to
ESOS
2,732,200
12,890,111
15,622,311
Issuance of
ordinary shares
pursuant to
Warrants
4,129,833
30,065,184
34,195,017

upon exercise/
lapse of ESOS
Total transactions
with owners
At 31.3.2014
4,333,199
6,862,033 47,288,494
373,516,183
53,852,489
(4,333,199)
(479,319) (107,599,234)
(53,928,026)
5,528,864 26,061,626 458,959,162
77
tatement of Cash Flows

2014
2013
RM
RM
115,334,206
104,175,486
(108,676,239)
(97,228,381)
(2,971,620)
(2,389,939)
Interest income
(4,914,047)
(6,043,646)
(1,227,700)
(1,486,480)
148,199
75,653
(1,295,051)
(1,152,047)
(2,633,332)
2,971,620
2,389,939
67,203
74,642
(1,504,571)
(1,046,838)
382,205
(1,215,589)
108,676,239
97,228,381
(73,444,600)
(20,000)
(1,999,000)
(1,000)
33,232,639
97,207,381
Exercise of Warrants
34,195,017
Exercise of ESOS
15,622,311
7,309,968
(107,599,234)
(98,807,194)
(57,781,906)
(91,497,226)
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES

Profit before tax
Adjustments for:
Dividend income from a subsidiary
Operating Loss Before Working Capital Changes

Decrease in receivables
Increase/(Decrease) in payables
Cash Used In Operations
Income received from fixed income fund
Interest received
Tax paid
Net Cash From/(Used in) Operating Activities
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES
Dividend received from a subsidiary
Advances to subsidiaries
Subscription of shares in a new subsidiary
Net Cash From Investing Activities
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES
Proceeds from issuance of shares pursuant to:
Dividends paid
Net Cash Used In Financing Activities
78
Statement of Cash Flows

(contd)
2014
2013
RM
RM
(24,167,062)
4,494,566
101,476,024
96,981,458
77,308,962
101,476,024
NET (DECREASE)/INCREASE IN CASH AND CASH

EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF
THE FINANCIAL YEAR
CASH AND CASH EQUIVALENTS AT END OF THE
FINANCIAL YEAR (Note 17)
79
otes to the Financial Statements

1. CORPORATE INFORMATION
The Company is a public limited company, incorporated and domiciled in Malaysia and is listed on the
Main Market of Bursa Malaysia Securities Berhad.
The registered office of the Company is located at Level 2, Tower 1, Avenue 5, Bangsar South City,
59200 Kuala Lumpur.
The principal place of business of the Company is located at C-G-9, Jalan Dataran SD1, Dataran SD PJU9,
Bandar Sri Damansara, 52200 Kuala Lumpur.
The Company is principally engaged in investment holding. The principal activities of the subsidiaries
are stated in Note 11. There have been no significant changes in the nature of these activities during the
financial year.
The financial statements were authorised for issue in accordance with a Board of Directors resolution dated
8 July 2014.
2. BASIS OF PREPARATION
(a) Statement of compliance
The financial statements of the Group and the Company have been prepared in accordance with
the Malaysian Financial Reporting Standards (MFRSs), International Financial Reporting Standards
(IFRSs) and the requirements of the Companies Act 1965 in Malaysia.
(i) Adoption of new and revised Malaysian Financial Reporting Standards
In the current financial year, the Group and the Company adopted all the new and revised Standards
and Issues Committee Interpretations (IC Interpretation) issued by the Malaysian Accounting
Standards Board (MASB) that are effective for annual periods beginning on or after 1 April 2013:
80

(cOntd)
2. BASIS OF PREPARATION (contd)
(a) Statement of compliance (contd)
(i) Adoption of new and revised Malaysian Financial Reporting Standards (contd)
MFRS 1
MFRS 7
Amendments to MFRS 1 (Government Loans)

Financial Instruments: Disclosures (Amendments relating to Disclosures Offsetting
Financial Assets and Liabilities)
MFRS 10 Consolidated Financial Statements
MFRS 10 Consolidated Financial Statements (Amendments relating to Transition Guidance)
MFRS 11 Joint Arrangements
MFRS 11 Joint Arrangements (Amendments relating to Transition Guidance)
MFRS 12 Disclosure of Interests in Other Entities
MFRS 12 Disclosure of Interests in Other Entities (Amendments relating to Transition Guidance)
MFRS 13 Fair Value Measurement
MFRS 101 Presentation of Financial Statements (Amendments relating to Presentation of Items of
Other Comprehensive Income)
MFRS 119 Employee Benefits (IAS 19 as amended by IASB in June 2011)
MFRS 127 Separate Financial Statements (IAS 27 as amended by IASB in May 2011)
MFRS 128 Investment in Associates and Joint Ventures (IAS 28 as amended by IASB in May
2011)
Annual Improvements to MFRSs 2009 2011 cycle
The adoption of these new and revised MFRSs and IC Interpretations did not result in significant
changes in the accounting policies of the Group and the Company and has no significant effect on
the financial performance or position of the Group and the Company except as disclosed below.
Amendments to MFRS 7 Disclosures Offsetting Financial Assets and Financial Liabilities
The Group and the Company have applied the amendments to MFRS 7 Disclosures Offsetting
Financial Assets and Financial Liabilities for the first time in the current year. The amendments to
MFRS 7 require entities to disclose information about rights of offset and related arrangements (such
as collateral posting requirements) for financial instruments under an enforceable master netting
agreement or similar arrangement.
The amendments have been applied retrospectively. As the Group and the Company do not have
any offsetting arrangements in place, the application of the amendments has no material impact on
the disclosures or on the amounts recognised in these financial statements.
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New and revised Standards on consolidation, joint arrangements, associates and disclosures
In November 2011, a package of five standards on consolidation, joint arrangements, associates
and disclosures was issued comprising MFRS 10 Consolidated Financial Statements, MFRS 11
Joint Arrangements, MFRS 12 Disclosure of Interests in Other Entities, MFRS 127 (IAS 27 as
revised by IASB in May 2011) Separate Financial Statements and MFRS 128 (IAS 28 as revised
by IASB in May 2011) Investment in Associates and Joint Ventures. Subsequent to the issue of
these standards, amendments to MFRS 10, MFRS 11 and MFRS 12 were issued to clarify certain
transitional guidance on the first-time application of the standards.
In the current year, the Group and the Company applied for the first time MFRS 10, MFRS 11
and MFRS 12, MFRS 127 (IAS 27 as revised by IASB in May 2011) and MFRS 128 (IAS 28 as
revised by IASB in May 2011) together with the amendments to MFRS 10, MFRS 11 and MFRS
12 regarding the transitional guidance.
The impact of the application of these standards is set out below.
Impact of the application of MFRS 10
MFRS 10 replaces the parts of MFRS 127 Consolidated and Separate Financial Statements that
deal with consolidated financial statements. IC Interpretation 112 Consolidation Special Purpose
Entities. MFRS 10 changes the definition of control such that an investor has control over an
investee when (a) it has power over the investee, (b) it is exposed, or has rights, to variable returns
from its involvement with the investee and (c) it has the ability to use its power to affect its return.
All three of these criteria must be met for an investor to have control over an investee. Previously,
control was defined as the power to govern the financial and operating policies of an entity so as
to obtain benefits from its activities. Additional guidance has been included in MFRS 10 to explain
when an investor has control over an investee. Some guidance included in MFRS 10 that deals
with whether or not an investor that owns less than 50% of the voting rights in an investee has
control over the investee to the Group.
The Directors of the Company reviewed and assessed the classification of the Groups investment
in subsidiaries in accordance with the requirements of MFRS 10 and concluded that the adoption
of MFRS 10 has not affected the amounts reported on the financial statements of the Group and
of the Company.
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Impact of the application of MFRS 12
MFRS 12 is a new disclosure standard and is applicable to entities that have interests in subsidiaries,
joint arrangements, associated companies and/or unconsolidated structure entities. In general, the
application of MFRS 12 has resulted in more extensive disclosures in the financial statements.
MFRS 13 Fair Value Measurement
The Group and the Company have applied MFRS 13 for the first time in the current year. MFRS
13 establishes a single source of guidance for fair value measurements and disclosures about fair
value measurements. The scope of MFRS 13 is broad; the fair value measurements of MFRS 13
apply to both financial instrument items and non-financial instrument items for which other MFRSs
require or permit fair value measurements and disclosures about fair value measurements, except
for share-based payment transactions that are within the scope of MFRS 2 Share-based Payment,
leasing transactions that are within the scope of MFRS 117 Leases, and measurements that have
some similarities to fair value but are not fair value (e.g. net realisable value for the purposes of
measuring inventories or value in use for impairment assessment purposes).
MFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction in the principal (or most advantageous) market at the measurement
date under current market conditions. Fair value under MFRS 13 is an exit price regardless of
whether that price is directly observable or estimated using another valuation technique. Also,
MFRS 13 includes extensive disclosure requirements.
In addition, specific transitional provisions were given to entities such that they need not apply the
disclosure requirements set out in the Standard in comparative information provided for periods
before the initial application of the Standard. In accordance with these transitional provisions, the
Group and the Company have not made any new disclosures required by MFRS 13 for the 2013
comparative period. Other than the additional disclosures, the application of MFRS 13 has not had
any material impact on the amounts recognised in these financial statements.
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Amendments to MFRS 101 Presentation of Items of Other Comprehensive Income
The Group and the Company have applied the amendments to MFRS 101 Presentation of Items
of Other Comprehensive Income for the first time in the current year. The amendments introduce
new terminology, whose use is not mandatory, for the statement of comprehensive income and
income statement. Under the amendments to MFRS 101, the statement of comprehensive income
is renamed as the statement of profit or loss and other comprehensive income and the income
statement is renamed as the statement of profit or loss. The amendments to MFRS 101 retain the
option to present profit or loss and other comprehensive income in either a single statement or in
two separate but consecutive statements. However, the amendments to MFRS 101 require items of
other comprehensive income to be grouped into two categories in the other comprehensive income
section: (a) items that will not be reclassified subsequently to profit or loss and (b) items that may
be reclassified subsequently to profit or loss when specific conditions are met. Income tax on items
of other comprehensive income is required to be allocated on the same basis the amendments
do not change the option to present items of other comprehensive income either before tax or net
of tax. The amendments have been applied retrospectively, and hence the presentation of items
of other comprehensive income has been modified to reflect the changes. Other than the above
mentioned presentation changes, the application of the amendments to MFRS 101 does not result
in any impact on profit or loss, other comprehensive income and total comprehensive income.
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(ii) Standards and IC Interpretations in issue but not yet effective
At the date of authorisation for issue of these financial statements, the new and revised Standards
and IC Interpretations which were in issue but not yet effective and not early adopted by the Group
and the Company are as listed below:
MFRS 9
MFRS 9
MFRS 9
IC Interpretation 21
Amendments to MFRS 9
and MFRS 7
Amendments to MFRS 10,
MFRS 12 and MFRS 127
Financial Instruments (IFRS 9 issued by IASB in November 2009)1

Financial Instruments (IFRS 9 issued by IASB in October 2010)1
Financial Instruments (Hedge Accounting and amendments relating
to MFRS 9, MFRS 7 and MFRS 139)1
Levies2
Mandatory Effective Date of MFRS 9 (IFRS 9 issued by IASB in
November 2009 and October 2010 respectively) and Transition
Disclosures1
Investment Entities2
Employee Benefits (Amendments relating to Defined Benefit Plans:

Employee Contributions)3
Financial Instruments: Presentation (Amendments relating to
Offsetting Financial Assets and Financial Liabilities)2
Impairment of Assets (Amendments relating to Recoverable Amounts
Disclosures for Non-Financial Assets)2
Financial Instruments: Recognition and Measurement (Amendments
relating to Novation of Derivatives and Continuation of Hedge
Accounting)2
Annual Improvements to MFRSs 2010 2012 cycle3
Annual Improvements to MFRSs 2011 2013 cycle3
The mandatory effective date of MFRS 9 (IFRS 9 issued by IASB in November 2009 and
October 2010 respectively) which was for annual period beginning on or after 1 January
2015 has been removed with the issuance of MFRS 9 Financial Instruments: Hedge Accounting
and amendments to MFRS 9, MFRS 7 and MFRS 139. The effective date of MFRS 9 will be
decided when IASBs IFRS 9 project is closer to completion. However, each version of the
MFRS 9 is available for early adoption
2
Effective for annual periods beginning on or after 1 January 2014
Effective for annual periods beginning on or after 1 July 2014
The Directors anticipate that abovementioned Standards and IC Interpretations will be adopted in
the annual financial statements of the Group and the Company when they become effective and
that the adoption of these Standards and IC Interpretations will have no material impact on the
financial statements of the Group and the Company in the period of initial application.
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(b) Basis of measurement
The financial statements of the Group and of the Company have been prepared on the historical cost
convention except for certain financial instruments that are measured at fair values at the end of the
reporting date as explained in the significant accounting policies. Historical cost is generally based on
the fair value of the consideration given in exchange for assets.
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, regardless of whether that price
is directly observable or estimated using another valuation technique. In estimating the fair value of
an asset or a liability, the Group takes into account the characteristics of the asset or liability at the
measurement date. Fair value for measurement and/or disclosure purposes in these financial statements
is determined on such a basis, except for share-based payment transactions that are within the scope of
MFRS 2, leasing transaction that are within the scope of MFRS 117, and measurements that have some
similarities to fair value but are not fair value, such as net realisable value in MFRS 102 Inventories or
value in use in MFRS 136 Impairment of Assets.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2
or 3 based on the degree to which the inputs to the fair value measurements are observable and the
significance of the inputs to the fair value measurement in its entirely, which are described as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that
the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for
the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
(c) Functional and presentation currency
The individual financial statements of each entity in the Group are measured using the currency of the
primary economic environment in which the entity operates (the functional currency). The financial
statements of the Group and of the Company are presented in Ringgit Malaysia (RM) which is also
the Companys functional currency. All financial information presented in RM has been rounded to the
nearest RM, unless otherwise stated.
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(d) Significant accounting estimates and judgements
The preparation of financial statements of the Group and of the Company require management to
make assumptions, estimates and judgements that affect the application of accounting policies and
the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the assumptions or estimate is revised and
in any future periods affected.
Significant areas of estimation, uncertainty and critical judgements used in applying accounting
principles that have significant effect on the amount recognised in the financial statements are as
follows:
(i) Tax expense (Note 6) - Significant judgement is required in determining the capital allowances,
allowance for increased exports and deductibility of certain expenses when estimating the provision
for taxation. There were transactions during the ordinary course of business for which the ultimate
tax determination of whether additional taxes will be due is uncertain. The Group recognises
liabilities for tax based on estimates of assessment of the tax liability due. Where the final tax
outcome of these matters is different from the amounts that were initially recorded, such differences
will impact the current tax and deferred tax in the periods in which the outcome is known.
(ii) Useful lives of property, plant and equipment (Note 8) - The cost of property, plant and equipment
is depreciated on a reducing balance basis over the assets useful lives. Management estimates
the useful lives of these property, plant and equipment to be within 4 to 50 years. These are the
common life expectancies applied generally. Changes in the expected level of usage could impact
the economic useful lives and the residual values of these assets, therefore future depreciation
charges could be revised.
(iii) Share-based payment reserve (Note 19) - The measurement of the fair value for Employee Equity
Scheme (EES) and Executive Share Option Scheme (ESOS) are determined using valuation
technique based on assumptions about future volatility of and dividend yield on the underlying
shares.
(iv) Determination of functional currency - Functional currency is the currency of the primary economic
environment in which the Company operates. When indicators of the primary economic environment
are mixed, management uses its judgement to determine the functional currency that most faithfully
represents the economic effect of the underlying transactions, events and conditions. The Company
has determined that the functional currency of the Company is RM.
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3. SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities
(including structured entities) controlled by the Company and its subsidiaries. Control is achieved when
the Company:
has power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over the
investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities
of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing
whether or not the Companys voting rights in an investee are sufficient to give it power, including:
the size of the Companys holding of voting rights relative to the size and dispersion of holdings of
the other vote holders;
potential voting rights held by the Company, other vote holders or other parties;
rights arising from other contractual arrangements; and
any additional facts and circumstances that indicate that the Company has, or does not have, the
current ability to direct the relevant activities at the time that decisions need to be made, including
voting patterns at previous shareholders meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and
ceases when the Company loses control of the subsidiary. Specifically, income and expenses of
a subsidiary acquired or disposed of during the year are included in the statement of profit or loss
and other comprehensive income from the date the Company gains control until the date when the
Company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the
Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed
to the owners of the Company and to the non-controlling interests even if this results in the non-controlling
interests having a deficit balance.
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3. SIGNIFICANT ACCOUNTING POLICIES (contd)
(a) Basis of consolidation (contd)
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies into line with those used by other members of the Group.
All intra-group assets and liabilities, equity, income and expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
Changes in the Groups ownership interests in subsidiaries that do not result in the Group losing control
are accounted for as equity transactions. The carrying amounts of the Groups interests and the noncontrolling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any
difference between the amount by which the non-controlling interests are adjusted at the fair value of the
consideration paid or received is recognised directly in equity and attributed to owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised and is calculated as
the difference between (i) the aggregate of the fair value of the consideration received and the fair
value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill),
and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognised
in other comprehensive income in relation to the subsidiary are accounted for as if the Group had
directly disposed of the relevant assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or
transferred to another category of equity as specified/permitted by applicable MFRSs). The fair value
of any investment retained in the former subsidiary at the date when control is lost is regarded as the
fair value on initial recognition for subsequent accounting under MFRS 139 Financial Instruments:
Recognition and Measurement or, when applicable, the cost on initial recognition of an investment in
an associate or joint venture.
In the Companys separate financial statements, investments in subsidiaries are stated at cost less
accumulated impairment losses. On disposal of such investments, the difference between net disposal
proceeds and their carrying amounts is included in profit or loss.
(b) Business combinations
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The
consideration transferred in a business combination is measured at fair value, which is calculated as
the sum of the acquisition date fair value of assets transferred by the Group, liabilities incurred by the
Group to the former owners of the acquiree and equity instruments issued by the Group in exchange for
control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
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(b) Business combinations (contd)
At acquisition date, the identifiable assets acquired and liabilities assumed are recognised at their fair
value, except that:
deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements
are recognised and measured in accordance with MFRS 112 Income Taxes and MFRS 119
Employee Benefits respectively;
liabilities or equity instruments related to the share-based payment arrangements of the acquiree
or share-based payment arrangements of the Group entered into to replace share-based payment
arrangements of the acquiree are measured in accordance with MFRS 2 Share-based Payment at
the acquisition date; and
assets (or disposal groups) that are classified as held for sale in accordance with MFRS 5 Non-current
Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any noncontrolling interests in the acquiree, and the fair value of the acquirers previously held equity interest
in the acquiree (if any) over the net of the acquisition date amounts of the identifiable assets acquired
and liabilities assumed. If, after reassessment, the net of the acquisition date amounts of the identifiable
assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of
any non-controlling interests in the acquiree and the fair value of the acquirers previously held equity
interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain
purchase gain.
When the consideration transferred by the Group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at its
acquisition date fair value. Changes in the fair value of the contingent consideration that qualify as
measurement period adjustments are adjusted retrospectively, with corresponding adjustments against
goodwill. Measurement period adjustments are adjustments that arise from additional information
obtained during the measurement period (which cannot exceed one year from the acquisition date)
about facts and circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. Contingent
consideration that is classified as equity is not remeasured at subsequent reporting dates and its
subsequent settlement is accounted for within equity. Contingent consideration that is classified as an
asset or liability is remeasured at subsequent reporting dates in accordance with MFRS 139 or MFRS
137 Provisions, Contingent Liabilities and Contingent Assets, as appropriate, with the corresponding
gain or loss being recognised in profit or loss.
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(b) Business combinations (contd)
When a business combination is achieved in stages, the Groups previously held interests in the
acquired entity are remeasured to fair value at the acquisition date and the resulting gain or loss, if any,
is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date
that have previously been recognised in other comprehensive income are reclassified to profit or loss,
where such treatment would be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by end of the reporting period in which
the combination occurs, the Group reports provisional amounts for the items of which the accounting
is incomplete. Those provisional amounts are adjusted during the measurement period, or additional
assets or liabilities are recognised, to reflect new information obtained about facts and circumstances
that existed as of the acquisition date that, if known, would have affected the amounts recognised at
that date.
(c) Foreign currencies
(i) Foreign currency transactions
In preparing the financial statements of the individual entities, transactions in currencies other than the
Groups functional currency (foreign currencies) are recorded in the Group entities functional currency
using the exchange rates prevailing at the dates of the transactions. Monetary items denominated in
foreign currencies at the reporting date are translated to the functional currency at the exchange rates
on the reporting date. Non-monetary items denominated in foreign currencies are not retranslated at
the reporting date except for those that are measured at fair value are retranslated to the functional
currency at the exchange rate at the date that the fair value was determined.
Exchange differences arising on the settlement of monetary items and on the translation of monetary
items are included in profit or loss for the period except for exchange differences arising on monetary
items that form part of the Groups net investment in foreign operation. These are initially taken directly
to the translation reserve within equity until the disposal of the foreign operations, at which time they
are recognised in profit or loss. Exchange differences arising on monetary items that form part of the
Groups net investment in foreign operations are recognised in profit or loss in the Companys separate
financial statements or the individual financial statements of the foreign operation, as appropriate.
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(c) Foreign currencies (contd)
(i) Foreign currency transactions (contd)
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 nonmonetary 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.
(ii) Foreign operations denominated in functional currencies other than Ringgit Malaysia (RM)
The results and financial position of foreign operations that have a functional currency different from
the presentation currency (RM) of the consolidated financial statements are translated into RM as
follows:
(i) Assets and liabilities for each reporting date presented are translated at the closing rate prevailing
at the reporting date;
(ii) Income and expenses are translated at average exchange rates for the year, which approximates
the exchange rates at the dates of the transactions; and
(iii) All resulting exchange differences are taken to other comprehensive income.
Goodwill and fair value adjustments arising on the acquisition of foreign operations on or after 1
January 2006 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.
Goodwill and fair value adjustments which arose on the acquisition of foreign subsidiaries before
1 January 2006 are deemed to be assets and liabilities of the parent company and are recorded
in RM at the rate prevailing at the date of acquisition.
Upon disposal of a foreign subsidiary, the cumulative amount of translation differences at the date
of disposal of the subsidiary is taken to the consolidated profit or loss.
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(d) Revenue recognition
(i) Goods sold
Revenue from the sale of goods is measured at fair value of the consideration received or receivable,
net of returns and allowances, trade discounts and volume rebates. Revenue is recognised upon
delivery of goods when the significant risks and rewards of ownership have been transferred to the
buyer, recovery of the consideration is probable, the associated costs and possible return of goods
can be estimated reliably, and there is no continuing management involvement with the goods.
(ii) Dividend income
Dividend income is recognised when the right to receive payment is established.
(iii) Interest income
Interest income is recognised on an accrual basis using the effective interest method.
(iv) Income from fixed income fund
Income from fixed income fund is recognised when the right to receive payment is established.
(e) Employee benefits
(i) Short term employee benefits
Wages, salaries, social security contributions and bonuses are recognised as an expense in
the year in which the associated services are rendered by employees of the Group. Short term
accumulating compensated absences such as paid annual leave are recognised when services
are rendered by employees that increase their entitlement to future compensated absences, and
short term non-accumulating compensated absences such as sick leave are recognised when the
absences occur.
(ii) Defined contribution plan
As required by law, companies in Malaysia make contributions to the state pension scheme, the
Employees Provident Fund (EPF). Such contributions are recognised as an expense as incurred.
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(e) Employee benefits (contd)
(iii) Share-based payment
Certain shareholders of the Company established the Employee Equity Scheme (EES) for the benefit
of eligible senior management personnel of the Group. Pursuant to the EES, a special purpose
company was formed to administer the offering of the EES shares offered by the shareholders to
the eligible employees.
The Company operates the Executive Share Option Scheme (ESOS), an equity-settled sharebased compensation plan which allows the Groups eligible executives to acquire ordinary shares
of the Company.
The total fair value of EES and ESOS granted to employees are recognised as expenses in profit
or loss of the Group over the vesting periods of the grant, with a corresponding increase in sharebased payment reserve. The fair value of EES and ESOS are measured at grant date, taking
into account, if any, the market non-vesting conditions upon which the EES and the ESOS were
granted but excluding the impact of a non-market vesting condition. Non-market vesting conditions
are included in assumption about the number of EES and ESOS that are expected to become
exercisable on vesting date.
At each reporting date, the Group revises its estimates of the number of EES and ESOS that are
expected to become exercisable on vesting date. It recognises the impact of the revision of original
estimates, if any, in profit or loss, and a corresponding adjustment in share-based payment reserve
over the remaining vesting period.
The share-based payment reserve is transferred to retained earnings upon expiry of the EES and
ESOS. When the EES and ESOS are exercised, the share-based payment reserve is transferred to
retained earnings and share premium respectively.
(f) Borrowing costs
All borrowing costs are recognised in profit or loss using the effective interest method, in the period in
which they are incurred except to the extent that they are capitalised as being directly attributable to
the acquisition, construction or production of an asset which necessarily takes a substantial period of
time to be prepared for its intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Borrowing costs consist of interest and other costs that the Group incur in connection with the borrowing
of funds.
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(g) Leases
(i) Finance lease the Group as lessee
Assets acquired by way of finance leases where the Group assumes substantially all the benefits
and risks of ownership are classified as property, plant and equipment.
Finance leases are capitalised at the inception of the lease at the lower of the fair value of
the leased asset and the present value of the minimum lease payments. Each lease payment is
allocated between the liability and finance charges. The corresponding finance lease obligations,
net of finance charges, are included in borrowings. The interest element of the finance charge is
charged to profit or loss over the lease period so as to produce a constant periodic rate of interest
on the remaining balance of the liability for each period.
Property, plant and equipment acquired under finance lease is depreciated in accordance with the
depreciation policy for property, plant and equipment.
(ii) Operating lease the Group as lessee
Operating lease payments are recognised as an expense on a straight-line basis over the term of
the relevant lease. The aggregate benefit of incentives provided by the lessor is recognised as a
reduction of rental expense over the lease term on the straight-line basis.
(h) Tax expense
Tax expense in profit or loss represents the aggregate amount of current and deferred tax. Current tax
is the expected amount payable in respect of taxable income for the year, using tax rates enacted
or substantially enacted by the reporting date, and any adjustments recognised for prior years tax.
When an item is recognised outside profit or loss, the related tax effect is recognised either in other
comprehensive income or directly in equity.
Deferred tax is recognised using the liability method, on all temporary differences between the tax
base of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is not
recognised if the temporary difference arises from goodwill or 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 nor taxable profit or loss. Deferred tax is measured at the tax rates that are expected
to apply in the period in which the assets are realised or the liabilities are settled, based on tax rates
and tax laws that have been enacted or substantively enacted by the reporting date.
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(h) Tax expense (contd)
Deferred tax assets are recognised only to the extent that there are sufficient taxable temporary
differences relating to the same taxable entity and the same tax authority to offset or when it is probable
that future taxable profits will be available against which the assets can be utilised.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefits will be realised. Unrecognised deferred tax assets are
reassessed at each reporting date and are recognised to the extent that it has become probable that
future taxable profit will be available for the assets to be utilised.
Deferred tax assets relating to items recognised outside profit or loss is recognised outside profit or
loss. Deferred tax items are recognised in correlation to the underlying transactions either in other
comprehensive income or directly in equity and deferred tax arising from business combination is
adjusted against goodwill on acquisition or the amount of any excess of the acquirers interest in the
net fair value of the acquirees identifiable assets, liabilities and contingent liabilities over the acquisition
cost.
(i) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment losses, if any. Cost includes expenditure that are directly attributable to the acquisition of the
asset. Subsequent costs are included in the assets carrying amount or recognised as separate asset as
appropriate, only when 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. The costs of the day-to-day servicing of
property, plant and equipment are recognised in profit or loss as incurred.
Long term leasehold land is depreciated over the lease term of 94 years. Freehold land is not
depreciated. All other property, plant and equipment are depreciated on the reducing balance basis
to write off the cost of the property, plant and equipment over their estimated useful lives.
The principal annual rates used for this purpose are:
Buildings
Plant and machinery
Furniture, fittings and equipment
Motor vehicles
Renovation
96
2%
10%
10% - 25%
20%
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(i) Property, plant and equipment (contd)
The residual values, useful lives and depreciation method are reviewed at each reporting date to
ensure that the amount, method and period of depreciation are consistent with previous estimates and
the expected pattern of consumption of the future economic benefits embodied in the items of property,
plant and equipment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. The difference between the net disposal proceeds, if
any, and the net carrying amount is recognised in profit or loss.
Fully depreciated property, plant and equipment are retained in the financial statements until they are
no longer in use and no further charge for depreciation is made in respect of these property, plant and
equipment.
(j) Capital work-in-progress
Capital work-in-progress is stated at cost during the period of construction.
No depreciation is provided on capital work-in-progress and upon completion of construction, the cost
will be transferred to property, plant and equipment.
(k) Intangible assets
Intangible assets representing patent rights and golf club memberships, which have finite useful lives, are
stated at cost less accumulated amortisation and impairment losses, if any. Amortisation is recognised in
the profit or loss on a straight-line method to allocate the cost of patent rights and golf club memberships
over their useful lives. The principal annual rates used for this purpose are:
Patent rights
Golf club memberships
15 years
38 years
The residual values, useful lives and amortisation method are reviewed at each financial year end to
ensure that the amount, method and period of amortisation are consistent with previous estimates and
the expected pattern of consumption of the future economic benefits embodied in the assets.
97

(cOntd)
(l) Impairment of non-financial assets
The carrying amounts of non-financial assets other than inventories and deferred tax assets are reviewed
at each reporting date to determine whether there is any indication of impairment. If such an indication
exists, the assets recoverable amount is estimated. The recoverable amount is the higher of fair value
less cost to sell and the value in use, which is measured by reference to discounted future cash flows
and is determined on an individual asset basis, unless the asset does not generate cash flows that are
largely independent of those from other assets. If this is the case, recoverable amount is determined for
the cash-generating unit to which the asset belongs to. An impairment loss is recognised whenever the
carrying amount of an item of asset exceeds its recoverable amount. An impairment loss is recognised
as expense in profit or loss. Impairment losses recognised in respect of cash-generating units are
allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce
the carrying amount of the other assets in the unit (group of units) on a pro-rata basis.
Any subsequent increase in recoverable amount of an asset, other than goodwill, due to a reversal of
impairment loss is restricted to the carrying amount that would have been determined (net of accumulated
depreciation, where applicable) had no impairment loss been recognised in prior years. The reversal
of impairment loss is recognised in profit or loss.
(m) Inventories
Inventories are stated at the lower of cost and net realisable value and cost is determined on the
weighted average basis. Cost includes the actual cost of materials and incidentals in bringing the
inventories into store and for manufactured inventories, it also includes a portion of labour and relevant
production overheads.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated
costs of completion and the estimated costs necessary to make the sale.
(n) Financial assets
Financial assets 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.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of
financial assets not at fair value through profit or loss, directly attributable transaction costs.
The Group and the Company determine the classification of their financial assets at initial recognition,
and have categorised financial assets in financial assets at fair value through profit or loss (FVTPL)
and loans and receivables.
98

(cOntd)
(n) Financial assets (contd)
(i) Financial assets at FVTPL
Financial assets are classified as at FVTPL when the financial asset is either held for trading or it is
designated as at FVTPL.
A financial asset is classified as held for trading if:
it has been acquired principally for the purpose of selling it in the near term; or
on initial recognition it is part of a portfolio of identified financial instruments that the Group
manages together and has a recent actual pattern of short-term profit-taking; or
it is a derivative that is not designated and effective as a hedging instrument.
A financial asset other than a financial asset held for trading may be designated as at FVTPL upon
initial recognition if:
such designation eliminates or significantly reduces measurement or recognition inconsistency
that would otherwise arise; or
the financial asset forms part of a group of financial assets or financial liabilities or both,
which is managed and its performance is evaluated on a fair value basis, in accordance with
the Groups documented risk management or investment strategy, and information about the
grouping is provided internally on that basis; or
it forms part of a contract containing one or more embedded derivatives, and MFRS 139
Financial Instruments: Recognition and Measurement permits the entire combined contract
(asset or liability) to be designated as at FVTPL.
Financial assets at FVTPL are stated at fair value, with any gains or losses arising on remeasurement
recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any
dividend or interest earned on the financial asset.
99

(cOntd)
(n) Financial assets (contd)
(ii) Loans and receivables
Financial assets with fixed or determinable payments that are not quoted in an active market are
classified as loans and receivables.
Subsequent to initial recognition, loans and receivables are measured at amortised cost using the
effective interest method. Gains and losses are recognised in profit or loss when the loans and
receivables are derecognised or impaired, and through the amortisation process.
Loans and receivables are classified as current assets, except for those having maturity dates later
than 12 months after the reporting date which are classified as non-current.
The Group and the Company classify the following financial assets as loans and receivables:
-
cash and cash equivalents; and
trade and other receivables, including deposits and amounts owing by subsidiaries.
A financial asset is derecognised when the contractual right to receive cash flows from the asset has
expired. On derecognition of a financial asset in its entirety, the difference between the carrying
amount and the sum of the consideration received and any cumulative gain or loss that had been
recognised in other comprehensive income is recognised in profit or loss.
Regular way purchases or sales are purchases and sales of financial assets that require delivery
of assets within the period generally established by regulation or convention in the marketplace
concerned. All regular way purchases and sales of financial assets are recognised or derecognised
on the trade date i.e. the date that the Group and the Company commit to purchase or sell the
asset.
The effective interest method is a method of calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts through the expected life of the debt instrument, or
where appropriate, a shorter period to the net carrying amount on initial recognition.
100

(cOntd)
(o) Impairment of financial assets
The Group and the Company assess at each reporting date whether there is any objective evidence
that a financial asset or group of financial assets is impaired.
To determine whether there is objective evidence that an impairment loss on financial assets has been
incurred, the Group and the Company consider factors such as the probability of insolvency or significant
financial difficulties of the debtor and default or significant delay in payments. For certain categories
of financial assets, such as trade receivables, assets that are assessed not to be impaired individually
are subsequently assessed for impairment on a collective basis based on similar risk characteristics.
Objective evidence of impairment for a portfolio of receivables could include the Groups and the
Companys past experience of collecting payments, an increase in the number of delayed payments
in the portfolio past the average credit period and observable changes in national or local economic
conditions that correlate with default on receivables.
If any such evidence exists, the amount of impairment loss is measured as the difference between the
assets carrying amount and the present value of estimated future cash flows discounted at the financial
assets original effective interest rate. The impairment loss is recognised in profit or loss.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial
assets with the exception of trade receivables, where the carrying amount is reduced through the use
of an allowance account. When a trade receivable becomes uncollectible, it is written off against the
allowance account.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, the previously recognised
impairment loss is reversed to the extent that the carrying amount of the asset does not exceed its
amortised cost at the reversal date. The amount of reversal is recognised in profit or loss.
(p) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, bank balances, demand deposits and short term,
highly liquid investments that are readily convertible to known amount of cash and which are subject to
an insignificant risk of changes in value.
101

(cOntd)
(q) Share capital
An equity instrument is any contract that evidences a residual interest in the assets of the Group and of
the Company after deducting all of their liabilities. Ordinary shares are equity instruments. Ordinary
shares are recorded at the proceeds received, net of directly attributable incremental transaction costs.
Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the
period in which they are declared.
(r) 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 139, are recognised in the statements of financial position
when, and only when, the Group becomes a party to the contractual provisions of the financial instrument.
Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities.
(i) Financial liabilities at FVTPL
Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss.
Financial liabilities held for trading include derivatives entered into by the Group 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 do not include exchange differences.
The Group has not designated any financial liabilities as at fair value through profit or loss.
(ii) Other financial liabilities
Other financial liabilities are initially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at amortised cost using the effective interest
method, with interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments through the expected life of the financial liability,
or a shorter period, to the net carrying amount on initial recognition.
102

(cOntd)
(r) Financial liabilities (contd)
(ii) Other financial liabilities (contd)
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.
Other financial liabilities of the Group and the Company include trade and other payables, and
loans and borrowings.
(s) Derivative financial instruments
The Group enters into foreign exchange forward contracts to manage its exposure to foreign exchange
rate.
Derivatives are initially recognised at fair value at the date the derivative contract is entered into and
are subsequently remeasured to their fair value at the end of each reporting date. The resulting gain
or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a
hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature
of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset; a derivative with a negative fair
value is recognised as a financial liability. A derivative is presented as a non-current asset or a non-current
liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be
realised or settled within 12 months. Other derivatives are presented as current assets or current liabilities.
(t) 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 of transaction
costs. Subsequent to initial recognition, financial guarantee contracts are recognised as income 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 and the Company, 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

(cOntd)
(u) Contingencies
A contingent liability or asset is a possible obligation or asset that arises from past events and whose
existence will be confirmed only by the occurrence or non-occurrence of uncertain future event(s) not
wholly within the control of the Group and of the Company.
Contingent liabilities or assets are not recognised in the statements of financial positions of the Group
and of the Company.
(v) Segment reporting
For management purposes, the Group is organised into operating segments that engages in business
activities from which it may earn revenues and incur expenses, including revenues and expenses that
relate to transactions with any of the Groups other components. The operating segments operating
results are reviewed regularly by the chief operating decision maker, which is the Managing Director
of the Group, to make decisions about resources to be allocated to the segment and assess its
performance, and for which discrete financial information is available.
4. REVENUE
Group
Sales of goods
Dividend income from
a subsidiary
104
Company
2014
2013
2014
2013
RM
RM
RM
RM
1,107,079,365
1,032,035,687
108,676,239
97,228,381
1,107,079,365
1,032,035,687
108,676,239
97,228,381

(cOntd)
5. PROFIT BEFORE TAX
Profit before tax is arrived at after charging/(crediting):
(a) Other items
Group
Company
2014
2013
2014
2013
RM
RM
RM
RM
210,836
192,911
30,000
18,000
6,200
29,900
6,200
29,900
465,418
125,793
31,167
5,104
Auditors remuneration
- Audit services
- Other services by auditors
of the company
Amortisation of intangible
assets
Bad debts written off
Depreciation of property,
plant and equipment
44,766,709
31,797,298
Fair value (gain)/ loss

on derivative financial
instruments
(2,813,000)
103,000
Impairment loss on trade

receivables
1,767
101,058
306,261
902,222
4,301
1,012
7,818
Interest expense in respect of:

- term loans
- finance lease payables
Management fee
105

(cOntd)
5. PROFIT BEFORE TAX (contd)
Profit before tax is arrived at after charging/(crediting): (contd)
(a) Other items (contd)
Group
Company
2014
2013
2014
2013
RM
RM
RM
RM
144,000
144,000
144,000
144,000
24,000
24,000
Non-Executive Directors
remuneration:
- Fees
- Directors of the Company
- Director of subsidiary
- Other emoluments
Rental of land
Rental of machinery
Rental of premises
(Gain)/Loss on disposal
of property, plant and
equipment
27,000
32,500
27,000
32,500
207,200
194,400
2,800
8,000
1,778,921
1,198,362
(5,862)
1,355
9,774,779
(54,129)
Loss/(Gain) on foreign
exchange:
- realised
- unrealised
1,094,448
(41,485)
(3,798,049)
(2,995,373)
(2,971,620)
(2,389,939)
(1,086,500)
(837,667)
(67,203)
(74,642)
(4,846,844)
(5,969,004)
Interest income in respect of:

- deposits with licensed banks
- advances to a subsidiary
106

(cOntd)
5. PROFIT BEFORE TAX (contd)
Profit before tax is arrived at after charging/(crediting): (contd)
(b) Staff costs
Group
Company
2014
2013
2014
2013
RM
RM
RM
RM
113,128,860
86,029,225
144,000
144,000
Share-based payment
expense
3,853,880
2,542,226
Contributions to defined
contribution plan
3,382,518
2,738,260
Staff costs
Included in staff costs are:
Included in staff costs is the aggregate amount of remuneration received and receivable by the Executive
Directors of the Company and of the subsidiaries during the financial year as follows:
Group
Company
2014
2013
2014
2013
RM
RM
RM
RM
216,000
210,000
144,000
144,000
96,000
90,000
256,084
4,243,250
2,480,962
- Directors of the subsidiaries
2,524,978
2,071,278
7,080,228
5,108,324
144,000
144,000
Fees:
- Directors of the subsidiaries
Share-based payment
expense
Other emoluments:
The estimated monetary value of benefits-in-kind of the Group received by the Directors of the Company
and of the subsidiaries are RM745,115 (2013: RM55,493) and RM107,283 (2013: RM56,200)
respectively.
107

(cOntd)
6. TAX EXPENSE
Group
Company
2014
2013
2014
2013
RM
RM
RM
RM
67,600,884
62,554,700
1,228,800
1,505,700
(1,428,693)
(915,960)
(63)
(78,142)
1,504,326
844,850
67,676,517
62,483,590
1,228,737
1,427,558
7,249,833
8,121,209
731,400
(98,500)
7,981,233
8,022,709
75,657,750
70,506,299
1,228,737
1,427,558
Current tax
Malaysian - current year
- overprovision in
prior years
Overseas - current year
Deferred tax
Origination and reversal of
temporary differences
Under/(Over)provision in prior
years
Tax expense
108

(cOntd)
6. TAX EXPENSE (contd)
The reconciliation of the tax amount at statutory income tax rate to the Groups and the Companys tax
expense is as follows:
Group
Profit before tax

Tax at the Malaysian statutory
income tax rate of 25%
Company
2014
2013
2014
2013
RM
RM
RM
RM
308,950,747
304,098,804
115,334,206
104,175,486
77,237,687
76,024,700
28,833,552
26,043,900
232,184
124,359
Effect of different tax rate of

foreign subsidiaries
Tax effect of:
Non-deductible expenses
2,508,445
720,500
302,918
66,310
Non-taxable income
(1,881,652)
(936,500)
(27,907,670)
(24,604,510)
Deferred tax assets not

recognised
125,325
108,500
(1,866,946)
(4,520,800)
(1,428,693)
(915,960)
(63)
(78,142)
731,400
(98,500)
75,657,750
70,506,299
1,228,737
1,427,558
Utilisation of allowance for

increased exports
(Over)/Underprovision in prior
years
- current tax
- deferred tax
Tax expense
The Budget 2014 announced on 25 October 2013 the reduction of the corporate income tax rate from
25% to 24% with effect from year of assessment 2016.
109

(cOntd)
7. EARNINGS PER ORDINARY SHARE
Group
2014
2013
RM
RM
Net profit attributable to owners of the Company (RM)
232,813,348
233,336,229
Number of shares in issue as at beginning of the financial year
733,308,300
365,088,600
Effect of exercise of ESOS
2,794,808
1,290,408
Effect of exercise of Warrants
5,578,359
365,553,000
741,681,467
731,932,008
31.39
31.88
Net profit attributable to owners of the Company (RM)
232,813,348
233,336,229
Weighted average number of ordinary shares in issue
741,681,467
731,932,008
4,214,871
4,358,577
Effect of dilutive potential ordinary shares Warrants#
24,996,971
5,827,833
Adjusted weighted average number of ordinary shares

for calculating diluted earnings per ordinary share
770,893,309
742,118,418
30.20
31.44
Basic earnings per ordinary share
Bonus issue
Weighted average number of ordinary shares in issue
Basic earnings per ordinary share of RM0.50 (sen)
Diluted earnings per ordinary share
Effect of dilutive potential ordinary shares ESOS#
Diluted earnings per ordinary share of RM0.50 (sen)
# After adjustment for the effect of bonus shares issued on the basis of one (1) bonus share for every
one (1) existing share held in the Company which was completed on 29 May 2012 or free warrants
issued on the basis of one (1) free warrant for every five (5) existing shares held in the Company which
was completed on 5 June 2012.
Since the end of the financial year:
(i) eligible executives have exercised the options to acquire 366,200 (2013: 1,119,700) ordinary shares;
and
(ii) conversion of free warrant to acquire 10,087,970 (2013: 519,960) ordinary shares.
There have been no other transactions involving ordinary shares or potential ordinary shares since the
reporting date and before the authorisation of these financial statements.
110

(cOntd)
8. PROPERTY, PLANT AND EQUIPMENT
Freehold
land
Long term
leasehold
land
Buildings
Plant and
machinery
Furniture,
fittings and
equipment
Motor
vehicles
Renovation
Total
RM
RM
RM
RM
RM
RM
RM
RM
158,023 115,410,673 444,877,852
Group
Cost
At 1.4.2013
Additions
26,720,978
61,126,830
6,684,628
2,583,870 657,562,854
90,224,285
1,717,414
10,728,275
3,630,355
605,339
106,905,668
47,547,770
10,442,769
Transfer from capital

work-in-progress
(Note 9)
30,031,686
Disposals
Translation differences
At 31.3.2014
26,720,978
(124,139)
(1,151,906)
(1,096,616)
88,022,225
(2,372,661)
1,032
(3,404)
11,548
9,176
90,382,308 147,159,773 503,030,790
74,044,644
6,204,899
2,583,870 850,127,262
18,766,484
2,773,134
906,971 171,545,199
5,847,106
773,095
Accumulated
depreciation
At 1.4.2013
15,048
Charge for the

financial year
1,881
10,268,426 138,815,136
2,756,726
Disposals
At 31.3.2014
16,929
35,220,279
(67,707)
896
(26,958)
(270)
(590,200)
5,582
167,622
44,766,709
(684,865)
6,208
13,025,152 173,968,604
24,586,362
2,961,611
1,074,593 215,633,251
90,365,379 134,134,621 329,062,186
49,458,282
3,243,288
1,509,277 634,494,011
Net carrying amount

At 31.3.2014
26,720,978
111

(cOntd)
8. PROPERTY, PLANT AND EQUIPMENT (contd)
Freehold
land
Long term
leasehold
land
RM
RM
26,720,978
158,023
Buildings
Plant and
machinery
Furniture,
fittings and
equipment
Motor
vehicles
Renovation
Total
RM
RM
RM
RM
RM
RM
88,208,987 345,998,748
42,091,163
4,669,528
Group
Cost
At 1.4.2012
2,187,880 510,035,307
Additions
793,761
1,195,679
2,153,038
2,014,540
Transfer from capital

work-in-progress
(Note 9)
26,407,925
97,683,307
16,887,198
140,978,430
Disposals
(6,000)
Translation
differences
118
1,431
560
2,109
158,023 115,410,673 444,877,852
61,126,830
6,684,628
2,583,870 657,562,854
15,248,679
2,076,641
731,814 139,749,992
3,520,453
696,020
175,157
(3,845)
1,754
At 31.3.2013
26,720,978
(6,000)
395,990
6,553,008
Accumulated
depreciation
At 1.4.2012
13,167
8,509,466 113,170,225
Charge for the

financial year
1,881
1,758,960
25,644,827
Disposals
Translation
differences
84
1,197
473
At 31.3.2013
15,048
10,268,426 138,815,136
18,766,484
2,773,134
906,971 171,545,199
142,975 105,142,247 306,062,716
42,360,346
3,911,494
1,676,899 486,017,655
(3,845)
31,797,298
Net carrying
amount
At 31.3.2013
112
26,720,978

(cOntd)
8. PROPERTY, PLANT AND EQUIPMENT (contd)
(a) The long term leasehold land of the Group has remaining unexpired lease period of more than 50 years.
(b) Net carrying amount of the property, plant and equipment amounting to RM51,428,998 (2013:
RM147,919,518) is pledged as security by way of legal charge and security debenture for banking
facilities granted to the Group as disclosed in Note 20.
(c) During the financial year, the purchase of property, plant and equipment of the Group were through the
following:
Group
Additions of property, plant and equipment

Financed by finance lease arrangement
Payment by cash
2014
2013
RM
RM
106,905,668
6,553,008
(113,748)
106,905,668
6,439,260
(d) Net carrying amount of motor vehicles held under finance lease arrangements amounting to RM96,301
(2013: RM113,748).
9. CAPITAL WORK-IN-PROGRESS
Group
2014
2013
RM
RM
At beginning of year
49,175,042
9,453,816
Additions
89,109,396
180,699,656
Transfer to property, plant and equipment (Note 8)
(88,022,225)
(140,978,430)
At end of year
50,262,213
49,175,042
This is in respect of construction of new factory building and set up of new production plant and machinery.
113

(cOntd)
10. INTANGIBLE ASSETS
Patent rights
Golf club
memberships
Total
RM
RM
RM
7,073,960
175,000
7,248,960
4,837
4,837
7,078,797
175,000
7,253,797
At 1.4.2013
132,211
4,605
136,816
Amortisation during the financial year
460,813
4,605
465,418
At 31.3.2014
593,024
9,210
602,234
6,485,773
165,790
6,651,563
57,355
175,000
232,355
Additions
7,016,605
7,016,605
At 31.3.2013
7,073,960
175,000
7,248,960
11,023
11,023
Amortisation during the financial year
121,188
4,605
125,793
At 31.3.2013
132,211
4,605
136,816
6,941,749
170,395
7,112,144
Group
Cost
At 1.4.2013
Additions
At 31.3.2014
Accumulated amortisation
Net carrying amount

At 31.3.2014
Cost
At 1.4.2012
Accumulated amortisation
At 1.4.2012
Net carrying amount

At 31.3.2013
114

(cOntd)
11. INVESTMENTS IN SUBSIDIARIES
Company
Unquoted shares, at cost

EES and ESOS granted to employees of subsidiaries
2014
2013
RM
RM
282,664,600
133,701,000
15,499,692
11,645,812
298,164,292
145,346,812
The particulars of subsidiaries are as follows:
Name of company
Country of
incorporation
Principal activities
Proportion of
ownership
2014
2013
Hartalega Sdn Bhd
Malaysia
Manufacturing of
latex gloves
100%
100%
Hartalega NGC Sdn Bhd
Malaysia
Manufacturing of
latex gloves
100%
100%
Hartalega Research Sdn Bhd
Malaysia
Research and
development
100%
100%
Australia
Retail and wholesale

of gloves
82%
82%
United States
of America

of gloves
80%
80%
Peoples Republic Retail and wholesale

of China
of gloves
70%
70%
Subsidiaries of Hartalega Sdn Bhd

* Pharmatex (Australia) Pty Limited
* Pharmatex USA, Incorporated
* Yancheng Pharmatex Medical

Equipment Co Ltd
* Pharmatex Healthcare Private Limited
India

of gloves
81%
70%
Derma Care Plus Products (M) Sdn Bhd
Malaysia
Sales and marketing

of gloves
100%
100%
Sentinel Engineering (M) Sdn Bhd
Malaysia
Leasing of property,
research and
development of
automation systems
100%
100%
* Audited by a firm of auditors other than Deloitte & Touche.

115

(cOntd)
11. INVESTMENTS IN SUBSIDIARIES (contd)
Composition of the Group
Information about the composition of the Group at the end of the reporting period is as follows:
Country of incorporation
Number of wholly-owned
subsidiaries
2014
2013
Manufacturing of latex gloves
Malaysia
Research and development
Malaysia
Sales and marketing of gloves
Malaysia
Leasing of property, research and

development of automation systems
Malaysia
Country of incorporation
Number of non wholly-owned

subsidiaries
2014
2013
Retail and wholesale of gloves
Australia
United States of America
Peoples Republic of China
India
The table below shows details of non wholly-owned subsidiaries of the Group that have material noncontrolling interests:

Percentage
of ownership
interests held
by NCI
Profit/(Loss)
allocated to
non-controlling
interests
Accumulated
non-controlling
interests
RM
RM
529,556
1,249,396
(49,907)
56,638
479,649
1,306,034
313,479
785,700
(57,203)
31,330
256,276
817,030
2014
Pharmatex (Australia) Pty Limited
18%
Other individually immaterial subsidiaries
2013
Other individually immaterial subsidiaries
116
18%

(cOntd)
11. INVESTMENTS IN SUBSIDIARIES (contd)
Composition of the Group (contd)
Summarised financial information in respect of each of the Groups subsidiaries that have material noncontrolling interests is set out below. The summarised financial information below represents amounts before
intragroup eliminations.
2014
2013
RM
RM
338,795
179,531
19,553,176
20,755,113
(14,736)
(13,774)
(12,936,148)
(16,555,868)
Net assets
6,941,087
4,365,002
Equity attributable to owners of the Company
5,691,691
3,579,302
1,249,396
785,700
6,941,087
4,365,002
42,284,839
34,337,575
2,941,979
1,741,550
2,412,423
1,428,071
529,556
313,479
2,941,979
1,741,550
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Revenue
Profit for the year
Profit attributable to:
117

(cOntd)
12. DEFERRED TAX ASSETS AND LIABILITIES

Group
2014
RM
2013
RM
Deferred tax assets

Recognised in profit or loss
213,253
326,104
(20,521)
52,967
160,859
(573)
At end of year
518,836
213,253

Recognised in profit or loss
48,696,677
8,307,337
(917)
40,515,013
8,183,568
(1,904)
At end of year
57,003,097
48,696,677
Deferred tax assets/(liabilities) provided in the financial statements are in respect of the tax effects of the following:
Group
2014
RM
2013
RM
Deferred tax assets

Temporary differences in respect of deductible expenses
Unrealised profit on inventories
Fair value loss on derivative financial instruments
Unrealised foreign exchange losses
2,322,736
1,430,239
273,400
1,803,453
1,733,697
25,800
Offsetting
4,026,375
(3,507,539)
3,562,950
(3,349,697)
518,836
213,253
14,736
13,774
equipment and its tax base

Fair value gain on derivative financial instruments
Unrealised foreign exchange gains
59,792,600
703,300
52,004,700
27,900
Offsetting
60,510,636
(3,507,539)
52,046,374
(3,349,697)
Deferred tax liabilities (after offsetting)
57,003,097
48,696,677
Deferred tax assets (after offsetting)

Temporary differences in respect of taxable income
Differences between the carrying amount of property, plant and
118

(cOntd)
12. DEFERRED TAX ASSETS AND LIABILITIES (contd)
The estimated temporary differences for which no deferred tax assets have been recognised in the financial
statements are as follows:
Group
Unused tax losses
2014
2013
RM
RM
2,643,300
2,142,000
13. INVENTORIES
Group
2014
RM
2013
RM
Raw materials
19,821,034
24,610,355
Work-in-progress
11,853,382
8,137,170
Finished goods
45,441,798
35,195,948
Goods-in-transit
3,435,081
4,047,202
17,661,664
14,842,446
98,212,959
86,833,121
At cost
Spare parts and consumables
The cost of inventories recognised as expense and included in cost of sales during the financial year
amounted to RM739,241,658 (2013: RM684,941,859).
119

(cOntd)
14. TRADE AND OTHER RECEIVABLES
Group
Company
2014
2014
2013
RM
RM
RM
RM
Trade
Trade receivables
133,938,464
Less: Allowance for impairment
(127,072)
120,046,555
(124,667)
Trade receivables, net
133,811,392
119,921,888
4,597,780
1,209,778
9,800,668
2,093,204
737,546
6,226,243
4,500
4,500
15,608,226
9,056,993
4,500
4,500
149,419,618
129,978,881
4,500
4,500
Non-trade
Other receivables
Deposits
Prepayments
2013
(a) Credit term of trade receivables

The Groups normal trade credit terms extended to customers range from 30 to 90 days (2013: 30 to
90 days). Other credit terms are assessed and approved on a case by case basis.
(b) Ageing analysis of trade receivables
The ageing analysis of the Groups trade receivables at the reporting date are as follows:
Group
2014
RM
2013
RM
112,593,223
106,842,481
1 to 30 days past due not impaired

More than 121 days past due not impaired
19,513,872
1,243,063
180,535
82,323
198,376
12,375,691
519,194
119,696
23,811
41,015
Impaired More than 121 days past due
21,218,169
127,072
13,079,407
124,667
133,938,464
120,046,555
Neither past due nor impaired
120

(cOntd)
14. TRADE AND OTHER RECEIVABLES (contd)
(b) Ageing analysis of trade receivables (contd)
Receivables that are neither past due nor impaired
Trade receivables that are neither past due nor impaired are creditworthy debtors with good payment
records and mostly are regular customers that have been transacting with the Group.
None of the Groups trade receivables that are neither past due nor impaired have been renegotiated
during the financial year.
Receivables that are past due but not impaired
Trade receivables of the Group amounting to RM21,218,169 (2013: RM13,079,407) which are
past due but not impaired because there have been no significant changes in credit quality of the debtors
and the amounts are still considered recoverable. An amount of RM693,998 (2013: RM1,302,745)
included in trade receivables of the Group is secured by standby Letter of Credit from customers.
Receivables that are impaired
The Groups trade receivables that are impaired at the reporting date is as follows:
Group
Individually Impaired
2014
2013
RM
RM
Trade receivables (nominal amounts)
127,072
124,667
Less: Allowance for impairment losses
(127,072)
(124,667)
The impaired debtors at the reporting date are in significant financial difficulties and had defaulted in
payment. These receivables are not secured by any collateral or credit enhancements.
121

(cOntd)
14. TRADE AND OTHER RECEIVABLES (contd)
(b) Ageing analysis of trade receivables (contd)
The movement of allowance accounts used to record the impairment is as follows:

Group
Charge for the financial year (Note 5)
At end of year
2014
2013
RM
RM
124,667
23,385
1,767
101,058
638
224
127,072
124,667
(c) Foreign currency exposure of trade receivables

Group
United States Dollar
2014
2013
RM
RM
125,943,349
113,539,938
(d) Prepayments
Included in prepayments of the Group is an amount of RM7,257,991 (2013: RM4,120,096) being
advances to suppliers for purchase of raw materials and machinery.
15. TAX ASSETS

These are in respect of tax recoverable from the Inland Revenue Board.
122

(cOntd)
16. DERIVATIVE FINANCIAL ASSETS/(LIABILITIES)
Group
2014
2013
RM
RM
Forward currency contracts
217,322,500
266,916,600
At FVTPL
Non-hedging derivative:
Current assets/(liabilities)
Forward currency contracts
1,945,000
(868,000)
Contract notional amount

Non-hedging derivative:
The Group uses forward currency contracts to manage sales transaction exposure. These contracts are not
designated as cash flow or fair value hedges and are entered into for periods consistent with currency
transaction exposure and fair value changes exposure. Such derivatives do not qualify for hedge accounting.
Forward currency contracts are used to hedge the Groups trade receivables and sales denominated in
United States Dollar (USD), extending to September 2014.
During the financial year, the Group recognised a profit of RM2,813,000 (2013: loss of RM103,000)
arising from fair value changes of derivative financial instruments. The method and assumption applied in
determining the fair value of derivatives is disclosed in Note 29.
17. DEPOSITS, CASH AND BANK BALANCES

Group
Company
2014
2013
2014
2013
RM
RM
RM
RM
Fixed income fund with licensed

fund management company
(redeemable upon 1 day
notice)
104,292,473
Deposit in Escrow Account
9,863,404
Deposits with licensed banks
3,100,000
Cash at banks and on hand
53,294,159
129,932,825
20,700,000
31,263,904
76,239,390
600,000
469,572
100,178,502
1,000,000
297,522
Less: Deposit in Escrow Account
170,550,036
(9,863,404)
181,896,729
77,308,962
101,476,024
Cash and cash equivalents
160,686,632
181,896,729
77,308,962
101,476,024
123

(cOntd)
17. DEPOSITS, CASH AND BANK BALANCES (contd)
Deposits with licensed banks of the Group and of the Company earn interest at effective interest rates
ranging from 1.60% to 2.85% (2013: 1.85% to 2.90%) per annum with maturity period ranging from 1
day to 30 days (2013: 1 day to 30 days).
Deposit in Escrow Account of the Group earns interest at effective interest rate of 2.1% per annum.
Included in cash at banks and on hand of the Group is an amount of RM47,062,035 (2013:
RM27,924,830) which earns interest at effective interest rates ranging from 0.05% to 2.00% (2013:
0.15% to 2.00%) per annum.
The foreign currency exposure of cash at banks and on hand of the Group is as follows:
Group
2014
RM
2013
RM
40,737,238
26,834,965
18. SHARE CAPITAL

Group/Company
Number of shares
Amount
2014
2013
2014
RM
2013
RM
Ordinary shares of RM0.50

each
Authorised:
Created during the financial
year
At end of year
Issued and fully paid:
Issued during the financial year
- exercise of ESOS
- exercise of Warrants
- bonus issue
At end of year
124
1,500,000,000
500,000,000
750,000,000
250,000,000
1,000,000,000
500,000,000
1,500,000,000
1,500,000,000
750,000,000
750,000,000
733,308,300
365,088,600
366,654,150
182,544,300
5,464,400
8,259,666
2,666,700
365,553,000
2,732,200
4,129,833
1,333,350
182,776,500
747,032,366
733,308,300
373,516,183
366,654,150

(cOntd)
18. SHARE CAPITAL (contd)
(a) Ordinary shares
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
Companys residual assets.
(b) Ordinary shares issued pursuant to ESOS
During the financial year, the Company issued 5,464,400 (2013: 2,666,700) ordinary shares at
issue prices of between RM2.20 to RM5.75 (2013: RM2.20 to RM4.98) per ordinary share for cash,
pursuant to the Company ESOS. The share premium of RM12,890,111 (2013: RM5,976,618)
arising therefrom have been included in the share premium account. The new ordinary shares issued
rank pari-passu in all respects with the existing ordinary shares of the Company.
(c) Bonus issue
During the previous financial year, the issued and paid-up share capital increased by way of bonus
issue of 365,553,000 new ordinary shares of RM0.50 each at par via partly capitalisation of entire
share premium on the date when bonus issue is alloted whilst the remaining via capitalisation from
retained earnings on the basis of one (1) new ordinary share for every one (1) existing ordinary share
held. The new ordinary shares issued rank pari-passu in all respects with the existing ordinary shares
of the Company.
(d) Warrants 2012/2015
During the financial year, the Company issued 8,259,666 ordinary shares at issue price of RM4.14
per ordinary share, pursuant to the exercise of Warrants.
On 30 May 2012, the Company issued free warrants (the warrants 2012/2015) constituted under
the Deed Poll dated 14 May 2012.
The salient features of the warrants 2012/2015 are as follows:
(a) entitles its registered holders to subscribe for one (1) new ordinary share of RM0.50 each at the
exercise price during the exercise period;
(b) the exercise price is RM4.14 per share subject to adjustments in accordance with the provisions of
the deed poll executed; and
(c) the warrants 2012/2015 may be exercised at any time for a period of two years commencing
from 5 June 2013 until 4 June 2015 (exercise period). The warrants 2012/2015 that are not
exercised during the exercise period will thereafter lapse and become void.
125

(cOntd)
18. SHARE CAPITAL (contd)
(d) Warrants 2012/2015 (contd)
The movements in the Companys warrants 2012/2015 to subscribe for new ordinary shares of
RM0.50 each during the financial year is as follows:
Number of warrants
At
Number of warrants
2012/2015
At
1.4.2013
Granted
Exercised
31.3.2014
73,110,600
(8,259,666)
64,850,934
19. RESERVES
Group
Company
2014
2013
2014
2013
RM
RM
RM
RM
509,391,562
384,177,448
26,061,626
19,555,391
53,852,489
6,563,995
53,852,489
6,563,995
(34,981)
317,899
5,528,864
6,008,183
5,528,864
6,008,183
59,346,372
12,890,077
59,381,353
12,572,178
568,737,934
397,067,525
85,442,979
32,127,569
Distributable
Retained earnings
Non-distributable
Share premium
Translation reserve
Share-based payment reserve
(a) Share premium

The share premium arose from the issue of the Companys shares at a premium.
(b) Translation reserve
The translation reserve comprises all foreign currency differences arising from translation of the financial
statements of the entities within the Group with functional currencies other than RM.
126

(cOntd)
19. RESERVES (contd)
(c) Share-based payment reserve
The share-based payment reserve arose from the granting of Employee Equity Scheme (EES) to
selected senior management and Executive Share Option Scheme (ESOS) to selected executives.
(A) EES
In the year 2008, certain shareholders of the Company allocated an aggregate of 1,475,000
ordinary shares (EES Shares) for the EES at the strike price of RM1.80 per EES Share for no
consideration. A special purpose company, Prelude Rewards Sdn Bhd (PRSB) was formed to
administer the offering of the EES Shares to the selected senior management.
The main features of the EES were as follows:
(a) The tenure of the EES commenced on 28 March 2008 and expired on 31 March 2013.
(b) To participate in the EES, each selected senior management was required to pay RM2.00
as acceptance of the EES Shares offered pursuant to the terms of EES (Entitlement). With
the payment of RM2.00 by each selected senior management, he/she was deemed to have
accepted the Entitlement and legal ownership to those EES Shares would pass from PRSB to
the selected senior management.
(c) The allocation of the Entitlement was based on the performance, seniority, length of service
of the selected senior management and any criteria as may be set by the EES committee, the
Company and PRSB from time to time.
(d) As the selected senior management had not paid for his/her EES Shares at the point of
acceptance of the Entitlement, the selected senior management was required, as part of the
EES to do the following:
(i) assign all cash dividends/distributions from retained earnings which were made by the
Company prior to the exercise of the Entitlement to PRSB. The assignment was in respect of
cash dividends/distributions only and did not include any other distributions made by the
Company such as non-cash dividends, bonus shares and rights entitlements. Further, the
said assignment did not affect the selected senior managements other right to vote and the
right to sell his/her EES Shares;
(ii) open a CDS account with a nominee company (Nominee), with whom his/her Entitlement
was allotted to; and
(iii) provide an irrevocable undertaking that he/she did not transfer his/her EES Shares in his/
her CDS account with the Nominee to any other CDS accounts unless such EES Shares
had been paid in accordance with the terms and conditions of the EES.
127

(cOntd)
(c) Share-based payment reserve (contd)
(A) EES (contd)
(e) As the selected senior management had not paid for his/her EES Shares at the point of
acceptance of the Entitlement, an encumbrance was created over the unpaid EES Shares and
all distributions relating thereto in favour of PRSB.
(f) The selected senior management could sell any of his/her EES Shares at any time subject
to, inter alia, the selling price being equal to or above the aggregate of the strike price and
relevant transaction costs.
(g) The EES granted was only exercisable in the following manner:
From 28.3.2008 to 31.3.2009
20%
From 1.4.2009 to 31.3.2010
20%
From 1.4.2010 to 31.3.2011
20%
From 1.4.2011 to 31.3.2012
20%
From 1.4.2012 to 31.3.2013
20%
(h) On the expiry of the EES period, any EES Shares in the EES not exercised by the selected senior
management were transferred back to PRSB.
The EES expired on 31 March 2013. All the EES granted were exercised by the selected senior
management before the expiry date.
The number and strike price of and movement in outstanding EES during the previous financial year
were as follows:
2013
Strike price RM1.20

(before bonus issue)/
RM0.60 (after bonus
issue)
128
At
1.4.2012
000
Granted
000
604
Adjustment
for bonus
Exercised
issue
000
000
(281)
322
At
Exercised 31.3.2013
000
000
(645)

(cOntd)
(A) EES (contd)
The fair value of EES granted in year 2008 was estimated using Trinomial Model, taking into
account the terms and conditions upon which the EES were granted. The fair value of EES measured
at grant date and the assumptions used were as follows:
Grant date
Number of EES granted (units)
Fair value of EES (RM)
Share price (RM)
Strike price (RM)
Expected volatility
Expected life (years)
Risk free rate (%)
Expected dividend yield (%)
7 April 2008
1,475,000
0.39
1.80
1.80
31.15
5
3.79
5.56
The expected volatility was based on the average volatility of similar listing entities and reflects the
assumption that the historical volatility was indicative of future trends, which might not necessarily
be the actual outcome.
(B) ESOS
At an Extraordinary General meeting held on 25 March 2010, shareholders approved the ESOS
to subscribe for unissued new ordinary shares of RM0.50 each in the Company which were
granted to eligible Executive Directors and executives of the Company and/or its subsidiaries
(excluding subsidiaries that are dormant).
The salient features of the ESOS are:
(a) The maximum number of new shares of the Company, which may be available under the
ESOS shall not exceed in aggregate 15% of the total issued and paid-up capital of the
Company at any one time during the existence of the ESOS.
(b) The ESOS will be made available for participation by eligible executives of the Group who
meet the following criteria on the Date of Offer:
- has attained the age of at least 18 years old;
- who is confirmed in service in a company within the Group;
- who has at least 6 months of continuous service within the Group; and/or
- be under such categories and criteria that the Option Committee may decide at its absolute
discretion from time to time.
Notwithstanding the above, the eligibility and number of options to be offered to an eligible
executive under the scheme shall be at the sole and absolute discretion of the Option Committee
and the decision of the Option Committee shall be final and binding.
129

(cOntd)
(B) ESOS (contd)
(c) The maximum number of new shares of the Company that may be offered under the ESOS
and allotted to an eligible executive shall be at the sole and absolute discretion of the Option
Committee after taking into consideration, amongst others, the position and length of service
of the eligible executive and such other factors that the Option Committee may deem relevant,
subject to any adjustments under the provisions of the By-Laws and the conditions of not more
than 50% of the proposed allocation of the options under the ESOS to be allocated to the
Executive Directors and senior management of the Group; and not more than 10% of the
proposed allocation of the options under the scheme to be allocated to any eligible executive
either singly or collectively through persons connected, holds 20% or more of the issued and
paid-up capital of the Company, provided always that it is in accordance with any prevailing
guidelines issued by Bursa Securities, the Listing Requirements or any other relevant authorities
as amended from time to time. There are no performance targets which are required to be met
before the options granted under the ESOS can be exercised by the eligible executives, unless
otherwise stated in the offer.
(d) The ESOS shall be in force for a period of 5 years from 1 April 2010 and may be extended
or renewed (as the case may be), at the sole and absolute discretion of the Board of Directors
of the Company upon the recommendation by the Option Committee, provided always that
the initial ESOS period stipulated above and such extension of the ESOS made pursuant to the
By-Laws shall not in aggregate exceed a duration of 10 years from 1 April 2010.
(e) The option price payable for each new share of the Company upon exercise of the options
shall be the higher of the following:
(i) the 5-day weighted average market price of the Companys shares at the time the options
are offered, with a discount of not more than 10%; or
(ii) the par value of the Companys shares.

The price payable for each new share of the Company upon exercise of the options may
however be subject to adjustments under the provisions of the By-Laws.
130

(cOntd)
(B) ESOS (contd)
(f) The options granted may be exercised in the following manner:
From 1.4.2010 to 31.3.2011
20%
From 1.4.2011 to 31.3.2012
20%
From 1.4.2012 to 31.3.2013
20%
From 1.4.2013 to 31.3.2014
20%
From 1.4.2014 to 31.3.2015
20%
Options exercisable in a particular year but not exercised can be carried forward to the subsequent
years provided that no options shall be exercised beyond the date of expiry of the ESOS.
The movement in the Companys unissued shares under options during the financial year are as
follows:
Number of options
Grant
date
Expiry
date
Exercise
price
At
1.4.2013
Granted
RM
000
000
2.25
6,033.6
Exercised At 31.4.2014
000
000
2014
10.5.2010
31.3.2015
(2,618.3)
3,415.3
15.9.2010
31.3.2015
2.20
262.0
(95.0)
167.0
21.12.2010
31.3.2015
2.24
544.6
(202.0)
342.6
18.3.2011
31.3.2015
2.49
430.6
(119.9)
310.7
10.6.2011
31.3.2015
2.47
259.3
(128.5)
130.8
15.8.2011
31.3.2015
2.45
129.4
(56.0)
73.4
9.11.2011
31.3.2015
2.45
906.1
(498.7)
407.4
31.5.2012
31.3.2015
3.29
723.1
(433.8)
289.3
15.8.2012
31.3.2015
4.02
554.1
(271.0)
283.1
2.11.2012
31.3.2015
4.18
613.6
(215.6)
398.0
6.2.2013
31.3.2015
4.11
1,417.8
(414.0)
1,003.8
3.5.2013
31.3.2015
4.74
978.5
(387.5)
591.0
30.8.2013
31.3.2015
5.75
577.2
(24.1)
553.1
11.11.2013
31.3.2015
6.53
97.3
97.3
5.2.2014
31.3.2015
6.24
127.1
127.1
11,874.2
1,780.1
(5,464.4)
8,189.9
131

(cOntd)
(B) ESOS (contd)
The movements in the Companys unissued shares under options during the financial year
are as follows:
Number of options
Grant
date
Expiry
date
Exercise Exercise
price
price
prior to
after
bonus
bonus
At
issue
issue 1.4.2012
RM
RM
Granted
Exercised
Lapsed
Balance
prior to
adjustment
for bonus
issue
000
000
000
000
000
000
000
(559.0) 3,660.9
3,660.9
(1,183.2)
Adjustment
for bonus
issue
Granted
Exercised
000
At
Lapsed 31.3.2013
000
000
2013
132
10.5.2010
31.3.2015
4.50
2.25 4,560.7
(340.8)
15.9.2010
31.3.2015
4.39
2.20
261.2
(53.7)
21.12.2010
31.3.2015
4.47
2.24
515.1
18.3.2011
31.3.2015
4.98
2.49
326.6
10.6.2011
31.3.2015
4.93
2.47
250.4
15.8.2011
31.3.2015
4.89
2.45
101.2
(25.2)
9.11.2011
31.3.2015
4.90
2.45
551.1
(18.7)
31.5.2012
31.3.2015
3.29
3.29
15.8.2012
31.3.2015
4.02
4.02
2.11.2012
31.3.2015
4.18
4.18
6.2.2013
31.3.2015
4.11
4.11
(105.0) 6,033.6
207.5
207.5
(45.0)
(108.0)
262.0
(34.0)
481.1
481.1
(361.2)
(56.4)
544.6
(14.1)
286.5
286.5
(142.4)
430.6
(45.0)
205.4
205.4
(151.5)
259.3
76.0
76.0
(22.6)
129.4
532.4
532.4
(158.7)
906.1
860.8
(137.7)
723.1
554.1
554.1
613.6
613.6
1,417.8
1,417.8
6,566.3
(652.1) 5,449.8
5,449.8
3,446.3
(26.0)
(464.4)
(2,202.3)
(269.4) 11,874.2

(cOntd)
(B) ESOS (contd)
As at 31 March 2014, the total number of exercisable options was 1,765,930 (2013:
2,481,275). The weighted average remaining contractual life for these options is 1 year (2013:
2 years).
As disclosed in Note 18, options exercised during the financial year resulted in the issuance of
5,464,400 (2013: 2,666,700) ordinary shares at exercise prices ranging from RM2.20 to
RM5.75 (2013: RM2.20 to RM4.98) each and the weighted average share price at the date of
exercise was ranging from RM5.25 to RM7.39 (2013: RM2.50 to RM5.52) each.
The fair value of ESOS granted during the financial year was estimated using Trinomial model,
taking into account the terms and conditions upon which the ESOS were granted. The fair value of
ESOS measured at grant date and the assumptions used are as follows:
2014
2013
Weighted average fair value of ESOS (RM)
1.15
0.78
Weighted average share price (RM)
6.46
4.33
Weighted average exercise price (RM)
5.82
3.90
21.75 24.12
19.93 22.63
02
23
Risk free rate (%)
3.27 3.50
3.10 3.30
Expected dividend yield (%)
2.19 2.67
2.71 3.73
Expected volatility (%)

Expected life (years)
The expected volatility was based on assumptions that the historical volatility is indicative of future
trends, which may not necessarily be the actual outcome. No other features of the ESOS grant
were incorporated into the measurement of fair value.
133

(cOntd)
20. LOANS AND BORROWINGS
Long Term Borrowing
Group
Effective interest
rate per annum
Short-term
borrowings
within 1 year
1 to 2
years
2 to 3
years
3 to 4
years
4 to 5
years
After 5
years
Sub-total
Total
RM
RM
RM
RM
RM
RM
RM
RM
2014
Secured
Fixed rate instruments
Term loans
- United States Dollar
2.05%
2,823,984
1,346,622
1,346,622
4,170,606
- RM
8.00%
136,265
147,575
159,823
103,052
410,450
546,715
1.99%
23,242
24,241
24,735
31,661
80,637
103,879
2,983,491
1,518,438
184,558
134,713
1,837,709
4,821,200
2.10%
2,668,464
2,668,464
1,272,462
3,940,926
6,609,390
6.50% - 8.00%
5,004,994
136,267
147,577
159,825
103,054
546,723
5,551,717
1.99%
21,344
22,038
22,740
23,452
27,259
95,489
116,833
7,694,802
2,826,769
1,442,779
183,277
130,313
4,583,138
12,277,940
Finance lease
payables
2013
Secured
Fixed rate instruments
Term loans
- RM
Finance lease
payables
134

(cOntd)
20. LOANS AND BORROWINGS (contd)
Present value of finance lease payables is as follows:
Group
Minimum lease payments

Less: Future finance charges
Present value of minimum lease payments
2014
2013
RM
RM
105,978
119,919
(2,099)
(3,086)
103,879
116,833
24,152
22,447
Current liabilities
Payable within one year
(910)
(1,103)
23,242
21,344
81,826
97,472
(1,189)
(1,983)
80,637
95,489
103,879
116,833
Non-current liabilities
Payable after one year but not later than five years
Total present value of minimum lease payments
The term loans of the Group are secured by:
(i) legal charges over a subsidiarys certain freehold land and buildings (Note 8);
(ii) specific debenture over a subsidiarys certain plant and machinery (Note 8); and
(iii) corporate guarantee from the Company.
135

(cOntd)
21. TRADE AND OTHER PAYABLES
Group
Company
2014
2013
2014
2013
RM
RM
RM
RM
53,188,131
56,188,005
Trade
Trade payables
Non-trade
Other payables
25,211,831
21,151,426
58,715
13,062
Accruals
16,032,798
21,472,747
318,000
288,000
41,244,629
42,624,173
376,715
301,062
94,432,760
98,812,178
376,715
301,062
Trade payables
The normal trade credit terms granted to the Group range from 30 to 60 days (2013: 30 to 60 days).
The foreign currency exposure of trade payables is as follows:
Group
2014
2013
RM
RM
32,980,483
31,615,450
Other payables
Included in other payables of the Group is an amount of RM7,575,841 (2013: RM12,890,791) in
respect of balances outstanding owing to contractors for the construction and set up of new production
plant and machinery.
The foreign currency exposure of other payables is as follows:
Group
136
2014
2013
RM
RM
1,481,210
5,117

(cOntd)
22. HOLDING COMPANY AND RELATED PARTY TRANSACTIONS
The Directors regard Hartalega Industries Sdn Bhd, a private limited company incorporated in Malaysia,
as the ultimate holding company of the Company.
Amount owing by subsidiaries are non-trade in nature, unsecured, interest free and repayable on demand
except for advances due from a subsidiary amounting to RM83,825,086 (2013: RM152,478,243)
which bear interest at a rate of 4.0% (2013: 4.0%) per annum.
Identity of related parties
Parties are considered to be related to the Group and to 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 decision, or vice versa, or where the Group and the Company and the party are
subject to common control or common significant influence. The Group and the Company have related
party relationship with the holding company, subsidiaries, key management personnel and companies
related to Directors.
Related party transactions

Company
2014
2013
RM
RM
Received and receivable from a subsidiary:

- Dividend income
- Interest income
108,676,239
97,228,381
4,846,844
5,969,004
Compensation of key management personnel

Key management personnel includes personnel having authority and responsibility for planning, directing
and controlling the activities of the entities, directly or indirectly, including Directors of the Company and
subsidiaries.
137

(cOntd)
22. HOLDING COMPANY AND RELATED PARTY TRANSACTIONS (contd)
Compensation of key management personnel (contd)
The compensation of the key management personnel are as follows:
Group
Company
2014
2013
2014
2013
RM
RM
RM
RM
480,000
468,000
288,000
288,000
5,542,101
4,266,354
27,000
32,500
256,084
Post-employment benefits
459,843
318,386
Estimated monetary value

of benefits-in-kind
852,397
111,693
7,334,341
5,420,517
315,000
320,500
Directors fees
Short term employee benefits
Share-based payment expense
23. DIVIDENDS

Group/Company
2014
2013
RM
RM
Third interim single tier exempt dividend of 3.5 sen per share in
respect of the financial year ended 31 March 2013
25,689,300
Final single tier exempt dividend of 4 sen per share in respect of

the financial year ended 31 March 2013
29,697,101
First interim single tier exempt dividend of 3.5 sen per share in
26,072,949
Second interim single tier exempt dividend of 3.5 sen per share
in respect of the financial year ended 31 March 2014
26,139,884
Third interim single tier exempt dividend of 6 sen per share in

21,933,180
Final single tier exempt dividend of 3.5 sen per share in respect
of the financial year ended 31 March 2012
25,606,224
First interim single tier exempt dividend of 3.5 sen per share in
25,613,032
Second interim single tier exempt dividend of 3.5 sen per share
in respect of the financial year ended 31 March 2013
25,654,758
107,599,234
98,807,194
138

(cOntd)
23. DIVIDENDS (contd)
On 6 May 2014, the Directors declared a third interim single tier exempt dividend in respect of the
financial year ended 31 March 2014 of 3.5 sen per share amounting to RM26,155,733.
The Directors recommended a final single tier exempt dividend of 4 sen per share amounting to
RM30,299,461 based on the number of outstanding ordinary shares in issue as at the date of this report,
in respect of the current financial year, subject to the approval of the shareholders at the forthcoming
Annual General Meeting. The financial statements for the current financial year do not reflect the third
interim dividend declared and final dividend proposed. Such dividends will be accounted for in equity
as an appropriation of retained earnings in the financial year ending 31 March 2015.
24. CAPITAL COMMITMENT

In respect of acquisition of property, plant and equipment:
Group
Approved and contracted for

Approved but not contracted for
2014
2013
RM
RM
168,550,880
26,925,657
1,942,512,846
25. SEGMENT INFORMATION

The Groups business mainly comprises the manufacturing and sale of latex gloves. The Groups
manufacturing activities are operated solely in Malaysia whilst its revenue are mainly earned in Malaysia.
On this basis, the Group Managing Director reviews the operating results of the Group as a whole.
Accordingly, no reportable operating segment is presented as all information required has been disclosed
in the financial statements.
139

(cOntd)
25. SEGMENT INFORMATION (contd)
Information about geographical areas
Revenue information based on the geographical location of customers is as follows:
Group
2014
2013
RM
RM
North America
536,338,383
572,738,206
Europe
330,854,784
299,940,948
Asia (excluding Malaysia)
141,494,113
109,771,190
42,970,832
34,962,758
924,310
828,892
54,496,943
13,793,693
1,107,079,365
1,032,035,687
Australia
Malaysia
South America
Non-current assets which do not include financial instruments and deferred tax assets analysed by
geographical location of the assets are as follows:
Group
Malaysia
2014
2013
RM
RM
691,193,795
542,073,412
107,729
129,358
39,563
31,267
9,749
4,052
56,951
66,752
691,407,787
542,304,841
North America
Australia
China
India
Information about major customers

The following are major customers with revenue equal to or more than 10% of Group revenue:
Group
Customer A
140
2014
2013
Geographical
RM
RM
location
268,953,861
258,603,347
North America

(cOntd)
26. CONTINGENT LIABILITIES
(a) Sentinel Engineering (M) Sdn Bhd and Hartalega Sdn Bhd, wholly owned subsidiaries of the
Company (the Plaintiffs) vs Ecotherm (TFT) Sdn Bhd and Ecotherm Sdn Bhd (the Defendants)
(Kuala Lumpur High Court Writ and Statement of Claim)

The Plaintiffs have commenced legal proceedings against the Defendants by filing a Writ and Statement
of Claim on 6 August 2010 at the High Court of Malaya at Kuala Lumpur (the High Court).
The Plaintiffs are seeking, amongst others, the following reliefs against the Defendants:
(i) a declaration pursuant to Sections 56 and 57 of the Patents Act 1983 that Claims 1 to 14 of
Malaysia Patent No. MY 121188-A (188 Patent) are invalid and null and void in Malaysia;
(ii) a declaration that the amendments to the application for the 188 Patent are unlawful and ultra vires
the Patents Act 1983, further contravene the Patents Regulations 1986 and render the 188 Patent
invalid, null and void;
(iii) a declaration pursuant to Section 62 of the Patent Act 1983 that the making, importing, offering
for sale, selling or using of the Sentinel/Hartalega System does not constitute an infringement of
any of the claims on the 188 Patent; and
(iv) damages and costs.
The Defendants counterclaimed, amongst others, for the following reliefs:
(i) a declaration pursuant to Sections 56 and 57 of the Patents Act 1983 that Claims 1 to 7 of
Malaysian Patent No. MY 140770-A (770 Patent) are invalid and null and void in Malaysia;
(ii) a declaration that the first and/or the second Defendant, as the case may be, is the patentee of the
188 Patent, the said 188 Patent is validly subsisting and has been infringed by the Plaintiffs jointly
and severally;
(iii) an injunction to restrain the Plaintiffs from dealing with the Sentinel/Hartalega System which is the
subject matter of the 770 Patent or any other systems that infringe the 188 Patent in whatsoever
manner; and
(iv) damages and costs.
The High Court has delivered its judgement on 25 August 2011 whereby it is adjudged that:
(i) Patent No. MY 140770-A (770 Patent) entitled The Arrangement and Method of Assembling
Former Holders is valid;
(ii) Patent No. MY 121188-A (118 Patent) entitled Conveyor System for Use in Dipping Process is
valid; and
(iii) the Plaintiffs double former conveyor system does not infringe the Defendants 188 Patent.
141

(cOntd)
26. CONTINGENT LIABILITIES (contd)
(a) Sentinel Engineering (M) Sdn Bhd and Hartalega Sdn Bhd, wholly owned subsidiaries of the
Company (the Plaintiffs) vs Ecotherm (TFT) Sdn Bhd and Ecotherm Sdn Bhd (the Defendants)
(Kuala Lumpur High Court Writ and Statement of Claim) (contd)
The Defendants had filed a notice of appeal to the Court of Appeal against part of the decision of the
High Court relating to the issue of infringement of the 188 Patent and the validity of the 770 Patent,
and the Plaintiffs had filed a Notice of Cross Appeal against part of the decision of the High Court
relating to the validity of the 188 Patent.
The Defendants and the plaintiffs have since reached a settlement and have withdrawn their appeal
and cross-appeal respectively with no order as to costs on 12 September 2013.
(b) Mr Seow Hoon Hin (the Plaintiff), a shareholder of the Company and a former shareholder of
Hartalega Sdn Bhd (HSB) vs Hartalega Holdings Berhad (the Company or 1st Defendant),
HSB (2nd Defendant) and three (3) individuals (3rd , 4th and 5th Defendant) (collectively the
Defendants) (Kuala Lumpur High Court Writ and Statement of Claim)

The Plaintiff has instituted legal proceedings against the Defendants by filing a Writ of Summons and a
Statement of Claim in the High Court of Malaya at Kuala Lumpur (the Action). The Writ of Summons
and Statement of Claim were served on the Company on 24 March 2011.
The Plaintiff claims against the Defendants for the following:
(i) he had delivered to the 3rd Defendant, acting on behalf of the 2nd Defendant substantial part of
another two (2) assembly lines for the manufacture of gloves for storage at the 2nd Defendants
factory to which he purportedly intended to be reimbursed for. The Plantiff contends that the 3rd
Defendant (whom the Plaintiff contends is the controlling mind and person behind the 2nd Defendant)
has represented to him that the said parts would be kept in the possession of the 2nd Defendant as
a trustee for the Plaintiff;
(ii) the Plaintiff contends that the 2nd Defendant had in flagrant breach of trust utilised the said parts to
assemble another 2 assembly lines for the manufacture of latex gloves and that the 2nd Defendant
had in breach of trust converted the same for its use and acquired proceeds and/or profits from the
assembly of the said parts and as a consequence thereof has purportedly been unjustly enriched;
(iii) the Plaintiff further claims that there was a conspiracy to injure the Plaintiff by the 3rd, 4th and 5th
Defendant culminating in the share allotment on 4 April 2005. The Plaintiff states that 3rd, 4th
and 5th Defendant had agreed to use the said allotment of shares for the predominant purpose
of injuring the Plaintiff and that the said allotment was done pursuant to a purported agreement
between the 3rd, 4th and 5th Defendants to injure the Plaintiff resulting in damage and loss to him;
(iv) that the 2nd Defendant is a trustee for the unpaid dividends amounting to RM488,765.25 due and
owing to the Plaintiff; and
142

(cOntd)
Defendants) (Kuala Lumpur High Court Writ and Statement of Claim) (contd)
(v) that the Company is guilty of negligent misstatement or alternatively in breach of statutory duty
pursuant to Section 357 of the Capital Markets and Services Act 2007 (CMSA) read together
with, inter alia, Section 214 of the CMSA and/or tort of breach of statutory duty pursuant to
Section 177 and/or Section 179 of the CMSA.
The Plaintiff claims against the Company for the following:
(i) damages for negligent misstatement or alternatively of breach of statutory duty pursuant to Section
357 of the CMSA read together with, inter alia, Section 214 of the CMSA and/or tort of breach
of statutory duty pursuant to Section 177 and/or Section 179 of the CMSA;
(ii) interest on the said damages at the rate of 8% per annum or any other rate deemed appropriate
from 7 April 2008 or such other date deemed appropriate until full satisfaction thereof;
(iii) such further or other relief the Court deems fit; and
(iv) costs.

The High Court had, on 26 August 2011, dismissed the Plaintiffs application to disqualify Messrs.
Cheah Teh & Su from acting for the Defendants. Subsequently, the Plaintiff appealed against the
High Courts decision but was dismissed by the Court of Appeal. The Plaintiff had since the last case
management filed an amendment and a discovery application against the Defendants. The High
Court had allowed the amendment application with no objections from all the Defendants on 16 May
2012. The Plaintiff then filed their Amended Statement of Claim on 25 May 2012 and the Group had
correspondingly filed the 1st, 2nd and 3rd Defendants Re-Amended Defence on 29 June 2012. The 1st
to 3rd Defendants then had on 2 August 2012 and 29 August 2012 filed two applications to strike out
the Plaintiffs claim on the dividends and the conspiracy to injure.
With regards to the Plaintiffs discovery application and the 1st to 3rd Defendants striking out applications,
all the applications were dismissed by the High Court and parties appeals were subsequently dismissed
by the Court of Appeal on 3 September 2013. The matter has since gone for trial on 5, 6, 7 December
2012, 29, 30 January 2013, 1 and 2 April 2013 where the trial has been concluded. The judge
heard parties oral submission on 19 March 2014, 2 May 2014, 5 May 2014, 9, 10, 11 and 13
June 2014 and the court has now fixed the matter for decision on 5 August 2014.
143

(cOntd)
Defendants) (Kuala Lumpur High Court Writ and Statement of Claim) (contd)
The Plaintiff had also issued a subpoena duces tecum to Mr Wong Maw Chuan, the 2nd Defendants
Company Secretary. The said subpoena had since been set aside and the Plaintiff filed an appeal
towards the setting aside of the subpoena. The hearing of the appeal was heard together with all the
above mentioned appeals on 3 September 2013 where all the appeals were dismissed by the Court
of Appeal.
The Directors of the Company, in consultation with the solicitor, are of the opinion that the Group has
a valid defence against the Plaintiffs claim. Accordingly, the Group has not made any provision in the
financial statements.
(c) Sentinel Engineering (M) Sdn Bhd and Hartalega Sdn Bhd, wholly owned subsidiaries of the
Company (the Plaintiffs) vs Kendek Products Sdn Bhd, Tuck Hua Engineering Sdn Bhd, Top
Glove Sdn Bhd, TG Medical Sdn Bhd, Flexitech Sdn Bhd, Latexx Manufacturing Sdn Bhd, Green
Prospect Sdn Bhd and YTY Industry Sdn Bhd (the Defendants) (Kuala Lumpur High Court Civil
Suit No. 22IP-3-01/2013)
The Plaintiffs have commenced legal proceedings against the Defendents for the infringement of
Malaysian Patent No. MY 140770-A entitled The Arrangement and Method of Assembling Former
Holders (770 Patent) by filing a civil suit on 16 January 2013 at the High Court.
The Plaintiffs have in their Amended Statement of Claim claimed for, inter alia, the following reliefs
against the Defendants in the aforesaid suit:
(i) a declaration that the 770 Patent has been infringed by the Defendants;
(ii) an injunction to restrain the Defendants from infringing the 770 Patent;
(iii) an order for destruction by the Defendants of all articles in their possession, power, custody and
control that are infringing the 770 patent by the Defendants;
(iv) an order for disclosure against the Defendants;
(v) a declaration pursuant to Sections 56 and 57 of the Patents Act 1983 that Claims 1 to 4 of Tuck
Hua Engineering Sdn Bhd (Tuck Hua)s Malaysian Patent No. MY-136022-A (022 Patent)
entitled Flexible double arm holder for glove formers are invalid and null and void; and
(vi) damages and costs.
144

(cOntd)
(c) Sentinel Engineering (M) Sdn Bhd and Hartalega Sdn Bhd, wholly owned subsidiaries of the
Company (the Plaintiffs) vs Kendek Products Sdn Bhd, Tuck Hua Engineering Sdn Bhd, Top
Glove Sdn Bhd, TG Medical Sdn Bhd, Flexitech Sdn Bhd, Latexx Manufacturing Sdn Bhd, Green
Prospect Sdn Bhd and YTY Industry Sdn Bhd (the Defendants) (Kuala Lumpur High Court Civil
Suit No. 22IP-3-01/2013) (contd)
The Defendants have counterclaimed, amongst others, for the following reliefs:
(i) a declaration pursuant to Sections 56 and 57 of the Patents Act 1983 that the 770 Patent is
invalid;
(ii) an order that the 770 Patent be invalidated or revoked;
(iii) a declaration that there is no infringement of the 770 Patent by the Defendants;
(iv) an injunction to restrain the Plaintiffs jointly and severally from threatening by letters, circulars,
advertisements or orally or otherwise the Defendants or any persons or companies with any legal
proceedings in respect of any alleged infringement of the 770 Patent; and
(v) costs.
In addition, Tuck Hua has also counterclaimed, for the following:
(i) a declaration that Tuck Hua Engineering Sdn Bhd is the lawful patentee of 022 Patent, that the
022 Patent is valid and subsisting, and that the 022 Patent has been infringed by the Plaintiffs
jointly and/or severally;
(ii) an injunction to restrain the Plaintiffs from infringing and/or causing, enabling or assisting others to
infringe the 022 Patent; and
(iii) an inquiry as to damages or at Tuck Huas option, an account of profits in respect of the Plaintiffs
alleged acts of infringement.
The Plaintiffs Claim and the Defendants Counterclaims were withdrawn on 2 June 2014. The parties
to Civil Suit No. 22IP-3-01/2013 have amicably resolved this matter wherein the Plaintiffs have
withdrawn their claim and the Defendants have withdrawn their respective counterclaims with no order
as to costs.
145

(cOntd)
27. SIGNIFICANT EVENTS
(a) On 12 June 2013, Hartalega Sdn Bhd (HNGC), a wholly-owned subsidiary of the Company,
entered into a conditional Sales and Purchase Agreement (SPA) with Kumpulan Tanjung Balai Sdn
Bhd for the acquisition of leasehold agriculture land held under Title No. H.S. (D) 33059 and P.T. No.
4330 in Mukim Labu, Daerah Sepang, Negeri Selangor with land area of approximately 112 acres
for a total cash consideration of RM96,956,888.
(b) On 7 November 2013, the Company subscribed for additional 90,000,000 ordinary shares of RM1
each in HNGC for a total consideration of RM90,000,000. There were no changes in the equity
interest in HNGC.

On 31 March 2014, the Company subscribed for additional 38,464,600 ordinary shares of RM1
each in HNGC for a cash consideration of RM38,464,600 by way of capitalisation of amount owing
by HNGC to the Company. There were no changes in the equity interest in HNGC.
On 31 March 2014, the Company subscribed for additional 18,500,000 ordinary shares of RM1
each in HNGC for a total consideration of RM18,500,000. There were no changes in the equity
interest in HNGC.
(c) On 19 August 2013, the Company subscribed for additional 1,999,000 ordinary shares of RM1
each in Hartalega Research Sdn Bhd (HRSB) for a total consideration of RM1,999,000. There were
no changes in the equity interest in HRSB.
146

(cOntd)
28. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group and the Company are exposed to financial risks arising from their operations and the use of
financial instruments. The key financial risks include credit risk, liquidity risk, interest rate risk and foreign
currency risk.
The Groups risk management seeks to minimise the potential adverse effects from the exposures to variety
of risks in the normal course of business.
The Groups and the Companys exposure to the financial risks and the objectives, policies and processes
put in place to manage these risks are disclosed below.
(a) Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty
default on its obligations.
The Group and the Companys exposure to credit risk arises mainly from its receivables and the
maximum risk associated with the recognised financial assets is the carrying amounts as presented in
the statements of financial position and corporate guarantee provided by the Company to banks on a
subsidiarys term loans.
The Group has a credit policy in place and the exposure to credit risk is managed through the
application of credit approvals, credit limits and monitoring procedures.
Credit risk concentration profile
The Group determines concentrations of credit risk by monitoring the country of its trade receivables
on an ongoing basis. The credit risk concentration profile of the Groups net trade receivables at the
reporting date are as follows:
Group
2014
RM
2013
% of total
RM
% of total
By country:
United States of America
55,876,083
41.76
70,934,889
59.15
Germany
44,491,531
33.25
28,804,338
24.02
5,709,468
4.27
5,122,622
4.27
Canada
3,592,773
2.68
1,735,639
1.45
Japan
2,931,547
2.19
3,941,825
3.29
Brazil
13,511,099
10.10
1,627,311
1.36
7,698,891
5.75
7,755,264
6.46
133,811,392
100.00
119,921,888
100.00
Australia
Others
147

(cOntd)
28. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (contd)
(a) Credit risk (contd)
At the reporting date, approximately 49.50% (2013: 41.94%) of the Groups trade receivables
was due from three (2012: two) major customers. Trade receivable balances from those major
customers amounted to RM66,238,850 (2013: RM50,300,922) of which RM19,611,000 (2013:
RM18,531,000) are secured by standby Letter of Credit from customers.
Financial guarantee
The Company provides unsecured financial guarantees to banks in respect of banking facilities granted
to a subsidiary.
The Company monitors on an ongoing basis the repayments made by the subsidiary and its financial
performance.
The maximum exposure to credit risk amounts to RM4,717,321 (2013: RM12,161,107) representing
the outstanding term loans of a subsidiary guaranteed by the Company at the reporting date. At the
reporting date, there was no indication that the subsidiary would default on its repayment.
The financial guarantee has not been recognised at fair value on initial recognition as the amount was
immaterial since the financial guarantees provided by the Company did not contribute towards credit
enhancement of the subsidiarys borrowings in view of the security pledged by the subsidiary and it is
unlikely the subsidiary will default in repayment within the guarantee period.
(b) Liquidity risk
Liquidity risk is the risk that the Group and the Company will encounter difficulty in meeting financial
obligations associated with financial liabilities. The Groups and the Companys exposure to liquidity
risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Groups and
the Companys objective is to maintain a balance between continuity of funding and flexibility through
use of stand-by credit facilities.
The Group actively manages its 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 to meet its working capital requirements. In
addition, the Group strives to maintain available banking facilities of a reasonable level to its overall
debt position.
148

(cOntd)
(b) Liquidity risk (contd)
Analysis of financial instruments by remaining contractual maturities
The table below summarises the maturity profile of the Groups and of the Companys financial liabilities
at the reporting date based on contractual undiscounted repayment of obligations.
Carrying
amount
Contractual
cash flows
On demand
or within
1 year
1 to 2
years
2 to 5
years
Over 5
years
Total
RM
RM
RM
RM
RM
RM
RM
53,188,131
53,188,131
53,188,131
53,188,131
Other payables and

accruals
41,244,629
41,244,629
41,244,629
41,244,629
103,879
105,978
24,151
24,638
57,189
105,978
4,717,321
4,870,075
3,059,466
1,529,664
280,945
4,870,075
99,253,960
99,408,813
97,516,377
1,554,302
338,134
99,408,813
376,715
376,715
376,715
56,188,005
56,188,005
56,188,005
56,188,005
Other payables and

accruals
42,624,173
42,624,173
42,624,173
42,624,173
116,833
119,918
22,447
23,757
73,714
12,161,107
12,575,037
7,938,437
2,900,619
1,735,981
12,575,037
111,090,118 111,507,133 106,773,062
2,924,376
1,809,695
111,507,133
2014
Group
Financial liabilities:
Trade payables
Finance lease
payables
Other borrowings
Company
Other payables and
accruals
376,715
2013
Group
Trade payables
Finance lease
payables
Other borrowings
119,918
Company
Other payables and
accruals
301,062
301,062
301,062
301,062
149

(cOntd)
(b) Liquidity risk (contd)
The table below summarises the maturity profile of the Companys derivative financial liabilities at the
reporting date based on contractual undiscounted repayment obligations. The table has been drawn
up based on the undiscounted contractual net cash inflows and outflows on derivative instruments that
settle on a net basis.

Group
Carrying
amount
Contractual
cash flows
1 month
1-7 months
RM
RM
RM
RM
(868,000)
(868,000)
(257,000)
(611,000)
2013
Financial liabilities
Forward foreign currency
contracts
(c) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Groups financial instruments will
fluctuate because of changes in market interest rates.
The Groups exposure to interest rate risk arises primarily from deposits placed with licensed banks,
fixed income fund and borrowings. The deposits placed with licensed banks at fixed rate expose the
Group to fair value interest rate risk whilst fixed income fund at variable rate expose the Group to cash
flow interest rate risk.
Borrowings and finance lease payables at fixed rate amounting to RM4,821,200 (2013:
RM12,277,940) expose the Group to fair value interest rate risk.
The Group manages its interest rate risk exposure by reviewing its debts portfolio to ensure favourable
rates are obtained.
The Group does not have any fixed rate financial assets and liabilities at fair value through profit or loss.
Therefore, a change in the interest rates at the reporting date would not affect profit or loss.
150

(cOntd)
(c) Interest rate risk (contd)
Sensitivity analysis for interest rate risk
The Group believes that no reasonably possible changes in the risk variable could affect the results of
the Group materially as the Groups external borrowings interest rates are fixed at inception.
(d) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in foreign exchange rates.
The Group is exposed to foreign currency risk arising from sales or purchases that are denominated in a
currency other than the respective functional currencies of the Group entities, primarily Ringgit Malaysia
(RM), United States Dollar (USD) and Australian Dollar (AUD). The foreign currency in which these
transactions are denominated is mainly USD.
The Group also holds cash and cash equivalents denominated in USD for working capital purposes
and have term loans denominated in USD.
Forward foreign currency contracts are used by the Group to reduce exposure to fluctuations in foreign
currency risk. In addition, the Group holds cash and cash equivalents denominated in USD to pay its
foreign purchases as a natural hedge against fluctuations in foreign currency risk.
The Group is also exposed to currency translation risk arising from its net investments in foreign
operations. The Groups net investment in United States of America, Australia, Peoples Republic of
China and India are not hedged as currency positions in USD, AUD, RMB and Rs are considered to
be long-term in nature.
Sensitivity analysis for foreign currency risk
The following table demonstrates the sensitivity of the Groups profit for the financial year to a reasonably
possible change in the USD exchange rate against RM, with all other variables held constant.
Group
USD/RM - strengthened 5%
- weakened 5%
2014
2013
RM
RM
4,870,853
3,793,504
(4,870,853)
(3,793,504)
151

(cOntd)
29. FAIR VALUE OF FINANCIAL INSTRUMENTS
The methods and assumptions used to estimate the fair value of the following classes of financial assets and
liabilities are as follows:
(i) Cash and cash equivalents, trade and other receivables and payables, and amount owing by
subsidiaries
The carrying amounts are reasonable approximation of fair values due to the short term nature of these
financial instruments.
(ii) Derivative financial instruments
Forward currency contracts are valued using a valuation technique with market observation inputs.
The fair value of the forward foreign currency contracts is determined by reference to discounting
the difference between the contracted rate and the current forward price at the reporting date for the
residual maturity of the contracts using risk-free interest rate (based on government bonds).
(iii) Borrowings
The fair values of fixed rate term loans and finance lease payables, which are estimated using discounted
cash flow analysis, based on current lending rate for similar types of borrowing arrangements, are as
follows:

Group
Carrying
Fair
amount
value
RM
RM
4,717,321
4,708,296
103,879
103,680
12,161,107
12,019,007
116,833
115,468
2014
Financial Liabilities
Finance lease payables
2013
152

(cOntd)
30. FAIR VALUE HIERARCHY
The following table provides an analysis of financial instruments that are measured subsequent to initial
recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is
observable.
(i) Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for
identical assets or liabilities;
(ii) Level 2 fair value measurements are those derived from inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e.
derived from prices); and
(iii) Level 3 fair value measurements are those derived from inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
Fair value of financial instruments that are measured at fair value in the statements of financial position
at the end of the reporting date
Group
Fair
value
Level 1
Level 2
Level 3
RM
RM
RM
RM
1,945,000
1,945,000
(868,000)
(868,000)
2014
Derivative financial instruments
- foreign currency forward
contracts
2013
Derivative financial instruments
- foreign currency forward
contracts
During the financial years ended 31 March 2014 and 2013, there was no transfer between fair value
measurement hierarchy.
153

(cOntd)
30. FAIR VALUE HIERARCHY (contd)
Fair value of financial instruments that are not measured at fair value in the statements of financial
position at the end of the reporting date (but fair value disclosures are required)
Group
Fair
value
Level 1
Level 2
Level 3
RM
RM
RM
RM
4,708,296
4,708,296
103,680
103,680
12,019,007
12,019,007
115,468
115,468
2014
2013
31. CAPITAL MANAGEMENT

The primary objective of the Groups capital management is to ensure that it maintains a healthy capital
ratio in order to support its business and maximise shareholder value.
The Groups capital includes its shareholders funds and interest-bearing borrowings. The Group manages
its capital structure and makes adjustments to it, in light of changes in economic and business conditions. To
maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return
capital to shareholders or issue new shares. On 18 August 2011, the Board of Directors has announced
a policy to distribute a minimum of 45% of the Group annual net profit to its shareholders effective from the
financial year ended 31 March 2012.
No changes were made in the objectives, policies and processes since the financial year ended 31 March
2013.
As at 31 March 2014, the total capital managed by the Group which comprises shareholders equity,
amounted to RM942,254,117 (2013: RM763,721,675).
The Group is not subject to any externally imposed capital requirements.

154
UPPLEMENTARY INFORMATION
ON THE DISCLOSURE OF REALISED AND
UNREALISED PROFITS OR LOSSES
The following analysis of realised and unrealised retained earnings of the Group and of the Company is
presented in accordance with the directive issued by Bursa Malaysia Securities Berhad (Bursa Securities)
dated 25 March 2010 and prepared in accordance with Guidance on Special Matter No.1, Determination
of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities
Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants.
The retained earnings of the Group and of the Company as at the reporting date is analysed as follows:
Group
Company
2014
2013
2014
2013
RM
RM
RM
RM
664,561,374
533,522,793
26,061,626
19,555,391
(57,028,962)
(50,877,497)
607,532,412
482,645,296
26,061,626
19,555,391
(98,140,850)
(98,467,848)
509,391,562
384,177,448
26,061,626
19,555,391
Total retained earnings of the

Company and its subsidiaries
- realised
- unrealised
Less: Consolidation adjustments

Total retained earnings
The disclosure of realised and unrealised profits above is solely for complying with the disclosure requirements
stipulated in the directive of Bursa Securities and should not be applied for any other purpose.
155
dditional
Compliance Information
A. Related Party Transactions

A list of the significant related party transactions between the Company and its subsidiaries, and between
the Group and other related parties including relevant key management personnel for the financial year
ended 31 March 2014 is set out on pages 137 and 138 of the Annual Report.
B. Share Buy-back

During the financial year, the Company had not purchased any of its own shares.
C. Imposition of Sanctions and/or Penalties

There were no sanctions and/or penalties imposed on the Company and its subsidiaries, Directors or
management by any relevant regulatory bodies during the financial year.
D. Non-Audit Fees Paid/Payable

The amount of non-audit fees paid/payable to the external auditor in respect of the financial year amount
to RM6,200 (2013 : RM29,900).
E. Variation In Result

There was no profit forecast announced by the Group for the financial year.
F. Profit Guarantees

There was no profit guarantee given by the Group for the financial year.
G. Revaluation of Landed Properties

The Company does not have a revaluation policy on its landed properties.
H. Options, Warrants or Convertible Derivatives

During the current financial year ended 31 March 2014, a total of 5,464,400 new ordinary shares of
RM0.50 each were issued and allotted pursuant to the exercise of the ESOS and a total of 8,259,666
new ordinary shares of RM0.50 each were issued and allotted pursuant to the exercise of the Warrants.
The details of the issued and paid-up share capital of the Company as at 31 March 2014 are as follows:
As at 1 April 2013
Ordinary shares of RM0.50 each issued pursuant to the ESOS
Ordinary shares of RM0.50 each issued pursuant to
the Warrants
As at 31 March 2014
No. of Shares
RM
733,308,300
366,654,150
5,464,400
2,732,200
8,259,666
4,129,833
747,032,366
373,516,183
Other than the above, there was no issuance of convertible securities during the financial year.
156
Additional Compliance Information

(cOntd)
I. American Depository Receipt (ADR) or Global Depository Receipt (GDR)

During the financial year 2014, the Company was involved in a Sponsored Level-1 American Depository
Receipt (ADR) Programme which is a programme to facilitate the trading of Hartalega shares by investors
in the United States of America. The programme was registered to the Securities and Exchange Commission
of the United States of America since 27 June 2012 and the first trade started on 3 July 2012.
The Bank of New York Mellon has been appointed as the depository bank for the ADR programme with
Malayan Banking Berhad as the custodian of Hartalegas shares in Malaysia for the ADR. Under the
Depository Receipt Programme, the total number of shares that can be purchased shall not exceed 5% of
the total issued and paid-up capital of Hartalega at any point in time and the shares were listed on a 10
to 1 bundled ratio.
The ADR programme is expected to enhance the visibility of the Company in the United States of America
and to increase the awareness of the Company among US brokers, analysts and investors as the ADR
programme provides an avenue for the US investing community to access Hartalega shares, thereby
enabling the Company to broaden its foreign shareholders base in addition to increasing its shareholder
diversity.
As at 31 March 2014, the number of Hartalega ordinary shares held under the ADR programme by the
custodian Malayan Banking Berhad was 11,430 only.
J. Material Contracts

During the year, there were no material contracts entered into by the Company and its subsidiaries which
involved Directors and major shareholders interests.
K. Contracts Relating Loan

There were no contracts relating to loan by the Company and its subsidiaries in respect of item J.
157
ist of Properties
As at 31 March 2014
Location Address
Approximate
Age of
Building
Existing Use
Tenure
Date of
Acquisition
Area (m)
NBV (RM)
GRN 193487, Lot 4864

Mukim of Batang Berjuntai
Daerah Kuala Selangor
Factory
and office
building
Between 8 20 years
Freehold
1995 2007
30,641
(build-up
area)
23,780,296
H.S.(D) 276179, P.T. No. 7320

Factory
and office
building
Between 4 6 years
Freehold
2006 2011
41,736
(build-up
area)
53,103,971
H.S.(D) 279954, P.T. No. 7321

Seksyen 4, Mukim of Bestari Jaya
Factory
and office
building
2 years
Freehold
2013
31,948
(build-up
area)
54,830,904
GRN 193487, Lot 4864

Industrial
land
N/A
Freehold
1993 2001
43,158
4,901,383
H.S.(D) 276179, P.T. No. 7320

Industrial
land
N/A
Freehold
2006 2007
57,987
10,031,396
H.S.(D) 279954, PT 7321

Seksyen 4, Pekan Bestari Jaya
Industrial
land
N/A
Freehold
2010 2011
20,662
11,671,112
H.S.(D) 36055, P.T. No. 5785

Mukim of Labu
Daerah Sepang
Industrial
land
N/A
Leasehold
expiring on
9 Oct 2110
2013
384,449
86,585,835
H.S.(D) 36056, P.T. No. 5786

Mukim of Labu
Daerah Sepang
Agriculture
land
N/A
Leasehold
expiring on
9 Oct 2110
2013
68,800
3,470,450
H.S.(D) 36057, P.T. No. 5787

Mukim of Labu
Daerah Sepang
Industrial
land
N/A
Leasehold
expiring on
9 Oct 2110
2014
650
168,000
Vacant land
N/A
Leasehold
expiring
on 14 Mar
2090
1998
3,237
141,092
H.S.(D) 1742, P.T. No. 2965

158
List of Properties
As at 31 March 2014
(cOntd)
Location Address
Approximate
Age of
Building
Existing Use
Tenure
Date of
Acquisition
Area (m)
NBV (RM)
C-G-9, Jalan Dataran SD1

Dataran SD, PJU 9
Bandar Sri Damansara
52200 Kuala Lumpur
4-storey
office buiding
8 years
Leasehold
expiring
on 27 Aug
2102
2007
410
(build-up
area)
1,597,994
No.2A, Jalan Seri Bestari 3

Taman Seri Bestari
45600 Bestari Jaya
Single-storey
house-hostel
10 years
Freehold
2009
143
163,186
No.6, Jalan Seri Bestari 3

Taman Seri Bestari
45600 Bestari Jaya
Single-storey
house-hostel
10 years
Freehold
2009
144
163,322

Taman Seri Bestari
45600 Bestari Jaya
Single-storey
house-hostel
10 years
Freehold
2009
145
163,469

Taman Seri Bestari
45600 Bestari Jaya
Single-storey
house-hostel
10 years
Freehold
2009
146
167,860

Taman Seri Bestari
45600 Bestari Jaya
Single-storey
house-hostel
10 years
Freehold
2010
147
163,616
159
nalysis of Shareholdings
As at 30 June 2014
Authorised Share Capital
: RM750,000,000/-
Issued and Paid Up Share Capital : RM378,697,318.00 comprising 757,394,636 ordinary shares
Class of Shares
: Ordinary Share of RM0.50 each
Voting Rights
: One vote per ordinary share
Number of Shareholders
: 3,334
DISTRIBUTION OF SHAREHOLDINGS
Size of Holdings
No. of Holders
No. of Shares
54
480
0.00
830
589,547
0.08
1,574
6,788,820
0.89
10,001 to 100,000
663
20,705,568
2.73
100,001 to 37,869,730 (*)
211
284,823,717
37.61
37,869,731 and above(**)
444,486,504
58.69
3,334
757,394,636
100.00
Less than 100

100 - 1,000
1,001 - 10,000
Remark: * Less than 5% of issued holdings

** 5% and above of issued holdings
SUBSTANTIAL SHAREHOLDERS
The following are the substantial shareholders of the Company according to the Register of Substantial
Shareholders.
Direct Interest
Indirect Interest
Name of Shareholders
No. of Shares
Hartalega Industries Sdn Bhd
384,154,304
50.72
Kuan Kam Peng
0.00
0.00
No. of Shares
0
%
0
420,448,304*
384,154,304**
55.51
50.72
* Deemed interest through his shareholding in Hartalega Industries Sdn Bhd and Budi Tenggara Sdn Bhd by
virtue of Section 6A of the Companies Act 1965.
** Deemed interest through his shareholding in Hartalega Industries Sdn Bhd by virtue of Section 6A of the
Companies Act 1965.
160
As at 30 June 2014
(contd)
DIRECTORS SHAREHOLDINGS
Direct Interest
No. of Shares
No. of Shares
0.00
420,448,304*
55.51
Kuan Mun Leong
1,377,000
Kuan Mun Keng
1,374,000
Liew Ben Poh
900,000
1,084,900
Chuah Phaik Sim
Indirect Interest
1,635,000
128,100
40,000
0.18
0.18
0.12
14,000#
0.14
51,000#
0.22
4,351,200**
0.02
0.01
0.01
0.57
** Deemed interest through her shareholding in Kinetic Region Sdn Bhd by virtue of Section 6A of the
Companies Act 1965.
# Shares held through spouse/children of the Director who herself/himself is not Director of the Company.
161
As at 30 June 2014
(contd)
30 LARGEST SHAREHOLDERS AS AT 30 JUNE 2014
No.
No. of Shares
HARTALEGA INDUSTRIES SDN BHD
384,154,304
50.72
CITIGROUP NOMINEES (TEMPATAN) SDN BHD

EMPLOYEES PROVIDENT FUND BOARD
60,332,200
7.97
BUDI TENGGARA SDN BHD
36,294,000
4.79
DB (MALAYSIA) NOMINEE (ASING) SDN BHD

EXEMPT AN FOR BNP PARIBAS WEALTH MANAGEMENT
SINGAPORE BRANCH (FOREIGN)
33,690,836
4.45
HSBC NOMINEES (ASING) SDN BHD

SINGAPORE BRANCH (A/C CLIENTS-FGN)
17,747,036
2.34
JASON TEN JHIA SEENG
15,510,326
2.05

PLEDGED SECURITIES ACCOUNT FOR SEOW HOON HIN (472187)
7,640,400
1.01
RHB NOMINEES (ASING) SDN BHD

MEDLINE INDUSTRIES INC
6,614,300
0.87

EXEMPT AN FOR J.P. MORGAN CHASE BANK, NATIONAL ASSOCIATION
(USA)
6,532,228
0.86
10

TNTC FOR MONDRIAN EMERGING MARKETS SMALL CAP EQUITY FUND, L.P.
5,266,460
0.70
11
AMANAHRAYA TRUSTEES BERHAD

PUBLIC ISLAMIC EQUITY FUND
4,723,500
0.62
12
MALAYSIA NOMINEES (TEMPATAN) SENDIRIAN BERHAD

GREAT EASTERN LIFE ASSURANCE (MALAYSIA) BERHAD (PAR 3)
4,606,000
0.61
13
PACIFIC VENUE SDN BHD
4,596,400
0.61
14
CARTABAN NOMINEES (TEMPATAN) SDN BHD

EXEMPT AN FOR EASTSPRING INVESTMENTS BERHAD
4,547,600
0.60
15

EXEMPT AN FOR THE BANK OF NEW YORK MELLON (MELLON ACCT)
4,458,920
0.59
16
KUMPULAN WANG PERSARAAN (DIPERBADANKAN)
4,354,300
0.57
17
KINETIC REGION SDN BHD
3,751,200
0.50
18

EXEMPT AN FOR J.P. MORGAN BANK LUXEMBOURG S.A.
3,750,800
0.50
19

GREAT EASTERN LIFE ASSURANCE (MALAYSIA) BERHAD (LPF)
3,709,000
0.49
20

EXEXMPT AN FOR J.P. MORGAN CHASE BANK, NATIONAL ASSOCIATION
(NORGES BK)
3,683,500
0.49
162
As at 30 June 2014
(contd)
30 LARGEST SHAREHOLDERS AS AT 30 JUNE 2014 (contd)
No.
No. of Shares
21
KUAN EU JIN
3,430,500
0.45
22

(U.K.)
2,982,606
0.39
23
MAYBANK SECURITIES NOMINEES (TEMPATAN) SDN BHD

PLEDGED SECURITIES ACCOUNT FOR NAMAL (L) LTD
2,700,000
0.36
24

BBH AND CO BOSTON FOR DWS GLOBAL THEMATIC FUND
2,631,575
0.35
25

PUBLIC ISLAMIC SELECT TREASURES FUND
2,620,300
0.35
26
TAN BOOI CHARN
2,600,000
0.34
27

GREAT EASTERN LIFE ASSURANCE (MALAYSIA) BERHAD (DR)
2,520,000
0.33
28
ANISA SEOW JING YING
2,506,000
0.33
29
LIM BOON KIONG
2,198,400
0.29
30

PUBLIC ISLAMIC SELECT ENTERPRISES FUND
2,127,900
0.28
163
nalysis of WARRANTs
As at 30 June 2014
DISTRIBUTION OF WARRANT HOLDINGS

Size of Holdings
No. of Holders
No. of Shares
Less than 100
164
5,440
0.01
100 - 1,000
582
250,460
0.46
1,001 - 10,000
372
1,444,180
2.64
10,001 to 100,000
165
5,058,984
9.24
100,001 to 2,738,147 (*)
37
18,294,166
33.40
2,738,148 and above(**)
29,709,734
54.25
1,323
54,762,964
100.00
Remark: * Less than 5% of issued holdings

** 5% and above of issued holdings
SUBSTANTIAL WARRANT HOLDERS

The following are the substantial warrant holders of the Company according to the Register of Substantial
Warrant Holders.
Direct Interest
Hartalega Industries Sdn Bhd
Indirect Interest
No. of Shares
20,485,430
37.41
Kuan Kam Peng
0.00
0.00
No. of Shares
24,114,830*
20,485,430**
44.03
37.41
* Deemed interest through his shareholding in Hartalega Industries Sdn Bhd and Budi Tenggara Sdn Bhd
by virtue of Section 6A of the Companies Act 1965.
** Deemed interest through his shareholding in Hartalega Industries Sdn Bhd by virtue of Section 6A of the
Companies Act 1965.
164
Analysis of WARRANTS
As at 30 June 2014
(contd)
DIRECTORS WARRANT HOLDINGS
Direct Interest
No. of Shares
No. of Shares
0.00
24,114,830*
44.03
Kuan Mun Leong
137,700
Kuan Mun Keng
137,400
Liew Ben Poh
90,000
105,000
Chuah Phaik Sim
Indirect Interest
163,500
33,411
4,000
0.21
0.21
0.14
1,200#
0.16
5,100#
0.25
0.05
0.01
435,120**
0.01
0.79
** Deemed interest through her shareholding in Kinetic Region Sdn Bhd by virtue of Section 6A of the
Companies Act 1965.
# Shares held through spouse/children of the Director who herself/himself is not Director of the Company.
165
As at 30 June 2014
(contd)
30 LARGEST WARRANT HOLDING AS AT 30 JUNE 2014
No.
No. of Shares
HARTALEGA INDUSTRIES SDN BHD
20,485,430
37.41

SINGAPORE BRANCH (A/C CLIENTS-FGN)
5,594,904
10.22
BUDI TENGGARA SDN BHD
3,629,400
6.63

PLEDGED SECURITIES ACCOUNT FOR SEOW HOON HIN (472187)
2,468,000
4.51
DB (MALAYSIA) NOMINEE (ASING) SDN BHD

SINGAPORE BRANCH (FOREIGN)
1,979,083
3.61
MAYBANK SECURITIES NOMINEES (TEMPATAN) SDN BHD

PLEDGED SECURITIES ACCOUNT FOR SEOW HOON HIN (MARGIN)
1,751,800
3.20
MAYBANK NOMINEES (TEMPATAN) SDN BHD

PLEDGED SECURITIES ACCOUNT FOR SEOW HOON HIN
1,544,600
2.82
KENANGA NOMINEES (TEMPATAN) SDN BHD

PLEDGED SECURITIES ACCOUNT FOR SEOW HOON HIN
1,238,800
2.26
HDM NOMINEES (TEMPATAN) SDN BHD

PLEDGED SECURITIES ACCOUNT FOR SEOW HOON HIN (M09)
1,220,600
2.23
10

(U.K.)
790,380
1.44
11

PUBLIC ISLAMIC EQUITY FUND
557,940
1.02
12
JASON TEN JHIA SEENG
545,000
1.00
13

(U.S.A.)
517,441
0.94
14
PACIFIC VENUE SDN BHD
450,640
0.82
15
TAN BOOI CHARN
410,000
0.75
16
PUBLIC NOMINEES (TEMPATAN) SDN BHD

PLEDGED SECURITIES ACCOUNT FOR SEOW HOON HIN (E-KLC)
398,000
0.73
17
KINETIC REGION SDN BHD
375,120
0.68
18
CHEONG SIEW CHYUAN
355,000
0.65
19
KUAN EU JIN
343,050
0.63
20
RHB NOMINEES (ASING) SDN BHD

IAN JAMES SCHOTTLANDER
328,520
0.60
166
As at 30 June 2014
(contd)
30 LARGEST WARRANT HOLDING AS AT 30 JUNE 2014 (contd)
No.
No. of Shares
21
WOON CHUAN KEONG
272,000
0.50
22
LIM BOON KIONG
219,840
0.40
23

BBH AND CO BOSTON FOR DWS GLOBAL SMALL CAP GROWTH FUND
219,112
0.40
24
PUBLIC NOMINEES (TEMPATAN) SDN BHD

PLEDGED SECURITIES ACCOUNT FOR TAN KONG KEE (E-BPJ)
200,000
0.37
25
HENG CHEE CHENG
189,900
0.35
26
SHIRLEY LOH
165,900
0.30
27
CHUAH PHAIK SIM
163,500
0.30
28

EXEMPT AN FOR J.P. MORGAN BANK LUXEMBOURG S.A.
159,660
0.29
29
KUAN MUN LEONG
137,700
0.25
30
KUAN MUN KENG
137,400
0.25
167
otice of
Annual General Meeting
NOTICE IS HEREBY GIVEN THAT the Eighth (8th) Annual General Meeting of the Company will be held at
the Auditorium, LG1, Sime Darby Convention Centre, No. 1A, Jalan Bukit Kiara 1, 60000 Kuala Lumpur on
Tuesday, 26 August 2014, at 9.30 a.m. for the following purposes:
AGENDA
AS ORDINARY BUSINESSES
1. To table the Audited Financial Statements for the year ended 31 March 2014 together with the Reports of
the Directors and Auditors thereon.
(Please refer to Note A)
2. To approve the payment of a final dividend of 4 sen per share single tier for the financial year ended
31 March 2014.
(Resolution 1)
3. To approve the payment of Directors Fees totalling RM288,000 for the financial year ended
31 March 2014.

(Resolution 2)
4. To re-elect the following Directors retiring in accordance with Article 91 of the Articles of Association of the
Company:
(a) Mr Kuan Mun Leong
(Resolution 3)
(b) Mr Kuan Mun Keng
(Resolution 4)
(c) Dr Danaraj A/L Nadarajah
(Resolution 5)
5. To re-appoint the following Directors who retire pursuant to Section 129(6) of the Companies Act 1965
and being eligible, offer themselves for re-appointment:
(a) Dato Mohamed Zakri bin Abdul Rashid
(Resolution 6)
(b) Dato Tan Guan Cheong
(Resolution 7)
6. To re-appoint Messrs Deloitte & Touche (AF 0834) as Auditors of the Company and to authorise the
Directors to fix their remuneration.
168
(Resolution 8)

(contd)
AS SPECIAL BUSINESSES
To consider and if thought fit, to pass with or without any modifications, the following as Ordinary Resolutions:
7. ORDINARY RESOLUTION - AUTHORITY TO ALLOT AND ISSUE SHARES PURSUANT TO SECTION
132D OF THE COMPANIES ACT 1965
THAT subject to the Companies Act 1965, the Articles of Association of the Company and the approvals
of the Securities Commission, Bursa Malaysia Securities Berhad and other relevant governmental and/or
regulatory authorities, where such approval is required, the Directors of the Company be and are hereby
authorised and empowered pursuant to Section 132D of the Companies Act 1965 to allot and issue
shares in the Company from time to time and upon such terms and conditions and for such purposes as the
Directors may in their absolute discretion deem fit, provided that the aggregate number of shares issued
pursuant to this resolution does not exceed ten per centum (10%) of the total issued share capital of the
Company for the time being and THAT the Directors be and are also empowered to obtain the approval
for the listing and quotation of the additional shares so issued on the Bursa Malaysia Securities Berhad and
THAT such authority shall continue to be in force until the conclusion of the next Annual General Meeting of
the Company.
(Resolution 9)
8. ORDINARY RESOLUTION - PROPOSED RENEWAL OF AUTHORITY FOR PURCHASE OF OWN
SHARES BY THE COMPANY
THAT subject always to the provisions of the Companies Act 1965 (Act), the Memorandum and Articles
of Association of the Company, the Main Market Listing Requirements of Bursa Malaysia Securities Berhad
(Bursa Securities) and other relevant statutory and/or regulatory requirements, the Company be authorised,
to the fullest extent permitted by law, to buy-back such amount of Shares in the Company as may be determined
by the Directors of the Company from time to time, through Bursa Securities, upon such terms and conditions
as the Directors may deem fit and expedient in the interests of the Company, provided that:
(i) the aggregate number of Shares bought-back does not exceed 10% of the total issued and paid-up
ordinary share capital of the Company at any time;
(ii) the maximum amount of funds to be allocated for the shares buy-back shall not exceed the Companys
audited retained earnings and/or share premium account at any point in time;
(iii) the Shares purchased shall be treated in the following manner:
(a) the purchased Shares shall be cancelled; or
(b) the purchased Shares shall be retained as treasury shares for distribution as dividend to the
shareholders and/or resale on Bursa Securities in accordance with the relevant rules of Bursa
Securities and/or cancellation subsequently; or
(c) part of the purchased Shares shall be retained as treasury shares and the remainder shall be
cancelled; or
(d) in such other manner as Bursa Securities and other relevant authorities may allow from time to time; or
(e) any combination of (a), (b), (c) and (d) above.
169

(contd)
8. ORDINARY RESOLUTION - PROPOSED RENEWAL OF AUTHORITY FOR PURCHASE OF OWN
SHARES BY THE COMPANY (contd)
AND THAT the authority conferred by this resolution shall commence upon the passing of this resolution
until:
(i) the conclusion of the next Annual General Meeting (AGM) of the Company following the general meeting
at which such resolution was passed, at which time the authority will lapse unless renewed by ordinary
resolution, either unconditionally or subject to conditions; or
(ii) the expiration of the period within which the next AGM after that date is required by law to be held; or
(iii) revoked or varied by resolution passed by the Company in general meeting;
whichever occurs first.

AND FURTHER THAT authority be and is hereby given to the Directors of the Company to take all such steps
as may be necessary or expedient (including without limitation, the opening and maintaining of central
depository account(s) under the Securities (Central Depository) Industry Act 1991, and the entering into
and execution of all agreements, arrangements and guarantees with any party or parties) to implement,
finalise and give full effect to the Proposed Share Buy-Back with full powers to assent to any conditions,
modifications, revaluations, variations and/or amendments (if any) as may be imposed by the relevant
authorities and with full power to do all such acts and things thereafter (including without limitation, the
cancellation or retention as treasury shares of all or any part of the Shares bought-back) in accordance with
the provisions of the Act, the Memorandum and Articles of Association of the Company, the Main Market
Listing Requirements of Bursa Securities and all other relevant statutory and/or regulatory requirements.

(Resolution 10)
NOTICE OF DIVIDEND ENTITLEMENT

NOTICE IS ALSO HEREBY GIVEN that a final dividend of 4 sen per share single tier for the financial year
ended 31 March 2014, if approved, will be paid on 24 September 2014 to depositors registered in the
Record of Depositors at the close of business on 10 September 2014.
A depositor shall qualify for the dividend in respect of:
a) Shares transferred into the Depositors Securities Account before 4.00 p.m. on 10 September 2014 in
respect of ordinary transfers; and
b) Shares bought on the Bursa Malaysia on a cum entitlement basis according to the Rules of Bursa Malaysia.
By Order of the Board
WONG MAW CHUAN (MIA 7413)
WONG YOUN KIM (F) (MAICSA 7018778)
Company Secretaries
Kuala Lumpur
4 August 2014
170

(contd)
Notes:
(A) The Agenda item is meant for discussion only as the provision of Section 169(1) of the Companies Act 1965 does not require a formal approval of the
shareholders for the Audited Financial Statements. Hence, this agenda item is not put forward for voting.
(1) A member of the Company entitled to attend and vote at this Meeting is entitled to appoint a proxy or proxies (or being a corporate member, a corporate
representative) to attend and vote in his stead. 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.
(2) Subject to Note A (3) below, where a member appoints two (2) or more proxies, the appointments shall be invalid unless he specifies the proportion of his
shareholding to be represented by each proxy.
(3) The instrument appointing a proxy in the case of an individual shall be signed by the appointor or his attorney or in the case of a corporation executed under its
common seal or signed on behalf of the corporation by its attorney duly authorised.
(4) Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one securities
account (omnibus account) as defined under the Securities Industry (Central Depositories) Act 1991, there is no limit to the number of proxies which the exempt
authorised nominee may appoint in respect of each omnibus account it holds.
(5) Where the Form of Proxy is executed by a corporation, it must be executed under its seal or under the hand of its attorney.
(6) The instrument appointing a proxy and the power of attorney or other authority (if any) under which it is signed, or a notarially certified copy of that power or
authority, must, to be valid, be deposited at the office of the Companys Registrars, Symphony Share Registrars Sdn Bhd, Level 6, Symphony House, Block D13,
Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, not less than forty-eight (48) hours before the time set for the meeting or at any adjournment
thereof.
(7) Only a depositor whose name appears on the Record of Depositors as at 20 August 2014 shall be entitled to attend the said meeting and to appoint a proxy or
proxies to attend, speak and/or vote on his/her behalf.
Explanatory notes on Special Business:
(8) Resolution 9

Ordinary Resolution - Authority to allot and issue shares pursuant to Section 132D of the Companies Act 1965

The proposed Ordinary Resolution 9 is a renewable mandate for the issue of shares under Section 132D of the Companies Act 1965. If passed, will give flexibility
to the Directors of the Company to issue shares up to a maximum of ten per centum (10%) of the issued share capital of the Company at the time of such issuance of
shares (other than bonus or rights issue) and for such purposes as they consider would be in the best interests of the Company without having to convene separate
general meetings. This authority, unless revoked or varied at a general meeting, will expire at the conclusion of the next Annual General Meeting of the Company.
No shares have been issued and allotted by the Company since obtaining the said authority from its shareholders at the last Annual General Meeting held on
27 August 2013 pursuant to this authority.
The general mandate will provide flexibility to the Company for any possible fund raising activities, including but not limited to the placing of shares, funding future
investment(s), acquisition(s) and working capital and thereby reducing administrative time and cost associated with the convening of such meeting(s).
(9) Resolution 10

Ordinary Resolution Proposed renewal of authority for purchase of own shares by the Company

The proposed Ordinary Resolution 10 if passed, will empower the Company to purchase and/or hold up to ten per centum (10%) of the issued and paid-up share
of the Company. This authority unless revoked or varied by the Company at a General Meeting will expire at the next Annual General Meeting.
Further information on the Proposed Renewal of Authority for Purchase of Own Shares by the Company is set out in the Share Buy-Back Statements to Shareholders
of the Company which is dispatched together with this Annual Report.
171
tatement Accompanying the

Notice Of Annual General Meeting
Pursuant to Paragraph 8.27(2) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.
1. The Directors who are standing for re-election at the Annual General Meeting of the Company are as
follows:
(a) Mr Kuan Mun Leong
(Article 91)
(Resolution 3)
(b) Mr Kuan Mun Keng
(Article 91)
(Resolution 4)
(c) Dr Danaraj A/L Nadarajah
(Article 91)
(Resolution 5)
2. The Directors who are standing for re-election at the Annual General Meeting of the Company pursuant to
Section 129(6) of the Companies Act 1965 are as follows:
(a) Dato Mohamed Zakri bin Abdul Rashid
(Resolution 6)
(b) Dato Tan Guan Cheong
(Resolution 7)
3. The detailed profiles of the above Directors who are standing for re-election are set out in the Directors
Profiles set out on pages 12 to 17 of the Annual Report and their securities holdings in the Company are
set out in the Analysis of Shareholdings on page 160 to 163.
4. Board Meetings held in the financial year ended 31 March 2014.
There were six (6) Board Meetings held during the financial year ended 31 March 2014. Details of the
attendance of the Directors are as follows:
Directors
Attendance
6/6
5/6
Chuah Phaik Sim
6/6
6/6
Kuan Mun Keng
6/6
Kuan Mun Leong
5/6
Liew Ben Poh
6/6
6/6
5. Place, Date and Time of Meeting

The Eighth (8th) Annual General Meeting of the Company will be held at Auditorium, LG1, Sime Darby
Convention Centre, No. 1A, Jalan Bukit Kiara 1, 60000 Kuala Lumpur on Tuesday, 26 August 2014, at
9.30 a.m.
172
roxy Form
*I/We,

(Full Name in Capital Letters)
NRIC / Company No.
of
(Address)
being a *member/members of HARTALEGA HOLDINGS BERHAD, hereby appoint

NRIC No.
of
(Address)
*and/or failing him/her,

NRIC No.
of
(Address)
or, *the Chairman of the Meeting as *my/our proxy to vote for *me/us on *my/our behalf at the Eighth (8th) Annual General Meeting of
Hartalega Holdings Berhad to be held at Auditorium, LG1, Sime Darby Convention Centre, No. 1A, Jalan Bukit Kiara 1, 60000 Kuala Lumpur
on Tuesday, 26 August 2014, at 9.30 a.m. or at any adjournment thereof.
*My/Our Proxy(ies) is/are to vote as indicated below:
NO.
ORDINARY RESOLUTIONS
FOR
1.
To approve the payment of a final dividend of 4 sen per share single tier
2.
To approve the payment of Directors fees
3.
To re-elect Mr Kuan Mun Leong as Director
4.
To re-elect Mr Kuan Mun Keng as Director
5.
To re-elect Dr Danaraj A/L Nadarajah as Director
6.
To re-elect Dato Mohamed Zakri bin Abdul Rashid as Director
7.
To re-elect Dato Tan Guan Cheong as Director
8.
To re-appoint Messrs Deloitte & Touche (AF 0834) as Auditors of the Company and to authorise the
Directors to determine their remuneration
9.
Special Business - To approve the Authority to Directors to allot and issue shares pursuant to Section
132D of the Companies Act 1965
AGAINST
10. Special Business - To approve the Proposed Renewal of Authority for Purchase of Own Shares by the
Company
(Please indicate with an (X) in the appropriate spaces provided above as to how you wish your votes to be cast. If you do not do so, the proxy
will vote or abstain from voting at *his/her discretion.)
Number of Shares Held :
Dated this
day of
(*Delete where inapplicable)
2014
*Signature(s)/Common Seal of Shareholder(s)
Notes:
(A) The Agenda item is meant for discussion only as the provision of Section 169(1) of the Companies Act 1965 does not require a formal approval of the shareholders for the
Audited Financial Statements. Hence, this agenda item is not put forward for voting.
(1) A member of the Company entitled to attend and vote at this Meeting is entitled to appoint a proxy or proxies (or being a corporate member, a corporate representative) to
attend and vote in his stead. 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.
(2) Subject to Note A (3) below, where a member appoints two (2) or more proxies, the appointments shall be invalid unless he specifies the proportion of his shareholding to
be represented by each proxy.
(3) The instrument appointing a proxy in the case of an individual shall be signed by the appointor or his attorney or in the case of a corporation executed under its common
seal or signed on behalf of the corporation by its attorney duly authorised.
(4) Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one securities account
(omnibus account) as defined under the Securities Industry (Central Depositories) Act 1991, there is no limit to the number of proxies which the exempt authorised
nominee may appoint in respect of each omnibus account it holds.
(5) Where the Form of Proxy is executed by a corporation, it must be executed under its seal or under the hand of its attorney.
(6) The instrument appointing a proxy and the power of attorney or other authority (if any) under which it is signed, or a notarially certified copy of that power or authority, must,
to be valid, be deposited at the office of the Companys Registrars, Symphony Share Registrars Sdn Bhd, Level 6, Symphony House, Block D13, Pusat Dagangan Dana 1,
Jalan PJU 1A/46, 47301 Petaling Jaya, not less than forty-eight (48) hours before the time set for the meeting or at any adjournment thereof.
(7) Only a depositor whose name appears on the Record of Depositors as at 20 August 2014 shall be entitled to attend the said meeting and to appoint a proxy or proxies to
attend, speak and/or vote on his/her behalf.
173
fold here
Stamp
HARTALEGA HOLDINGS BERHAD (741883-X)

Symphony Share Registrars Sdn Bhd
Level 6, Symphony House
Block D13, Pusat Dagangan Dana 1
Jalan PJU 1A/46
47301 Petaling Jaya
fold here
174
CORPORATE OFFICE
C-G-9, Jalan Dataran SD1, Dataran SD PJU9, Bandar Sri Damansara
52200 Kuala Lumpur, Malaysia
Tel
: +603 6277 1733
Fax
: +603 6280 2533
Email
: info@hartalega.com.my
FACTORY
No.7, Kawasan Perusahaan Suria, Bestari Jaya
45600 Selangor Darul Ehsan, Malaysia
Tel
: +603 3280 3888
Fax
: +603 3271 0135
w w w. h a r t a l e g a . c o m . m y

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THE COVER

The theme of this years report,

Hartalega Holdings Berhad Annual Report 2014

Awards & Recognition

The Hartalega Nitrile Glove Story

Share Price Performance

Executive Chairmans Statement

Corporate Social Responsibility Statement

Responsibility & Financials

Audit Committee Report

Statement on Risk Management and Internal Control

Report and Financial Statements

Additional Compliance Information

Notice of Annual General Meeting

Statement Accompanying the Notice of

Hartalega Holdings Berhad Annual Report 2014

WARDS & RECOGNITION

FinanceAsia Best Companies 2014 Best Mid Cap Malaysia

Hartalega Holdings Berhad Annual Report 2014

Rubber Industry Award 2005

Enterprise 50 Award 1998

ISO 9001 : 2008

ISO 13485 : 2003

EN ISO 13485 : 2003

Operated the worlds first

pricing and intellectual

double former production

line at year end 2003

Introduced users to a nitrile

Launched the worlds

Increased production line

glove that mimics the

capacity to 28,000 pcs/hr

softness and stretchiness of a

of nitrile gloves highest in

natural rubber glove

and low-cost nitrile glove

and softness of natural

worlds first 3.7g nitrile glove.

rubber gloves without

It was developed at the same

protein allergy risks, was

time as the 4.7g glove but

competitively priced and

kept in the war chest

outside the Tillotsons patent

Hartalega Holdings Berhad Annual Report 2014

THE HARTALEGA NITRILE GLOVE STORY

Hartalega became the worlds

Became the nations largest

largest nitrile glove producer

and worlds second largest

Natural rubber price reached

nitrile glove producer

a record RM9.83 and nitrile

Obtained 20% share of the

gloves became cheaper than

US synthetic glove market