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Kim Loong Resources Berhad was listed on the main board of the Kuala Lumpur Stock Exchange (now known as Bursa Malaysia Securities Berhad). To reappoint the following Directors who resign in accordance with Article 77 of the Company's Articles of Association: -. Ernst & Young as the Company's auditors and to authorize the Directors to determine their remuneration.

TOP QUALITY

Gooi Seong Lim, 65 years old, Malaysian, was appointed to the Board of Directors of KLR on February 28, 1990. Gooi Seong Heen, 63 years old, Malaysian, was appointed to the board of directors of KLR on February 28. 1990. He was appointed member of the Audit Committee on March 28, 2001 and is currently Chairman of the Audit Committee.

ON BEHALF OF THE BOARD OF DIRECTORS OF KIM LOONG RESOURCES BERHAD (“KLR”), I AM

The Group's production of FFB for the financial year 2015 is expected to increase and is forecast to reach around 10% higher than the FFB production achieved in the financial year 2014. The Group expects the CPO production of its milling operations to be higher in financial year 2015 than the amount achieved in financial year 2014. FFB Group production for financial year 2015 is expected to increase and is expected to reach about 10% higher than FFB production achieved in financial year 2014.

THE GROUP IS A SOCIALLY RESPONSIBLE CORPORATION THAT SUPPORTS AND CONTRIBUTES POSITIVELY TO THE SUSTAINABLE DEVELOPMENT OF THE ECONOMY AND THE COMMUNITY WHERE THE GROUP OPERATES

The Group is committed to providing quality products and services to our customers through our available resources. Our website provides access to the information about the Group's finances and operations as well as the direction of the Group. THE GROUP IS A SOCIALLY RESPONSIBLE CORPORATION THAT SUPPORTS AND POSITIVELY CONTRIBUTES TO THE SUSTAINABLE DEVELOPMENT OF THE ECONOMY AND THE COMMUNITY IN WHICH THE GROUP IS OPERATED.

IT PLACES IMPORTANCE ON ITS CSR AND REMAINS COMMITTED TO CARE FOR THE ENVIRONMENT AND EMPLOYEES, FOSTERING STRONG RELATIONSHIPS WITH BUSINESS ASSOCIATES AND SUPPORTING WORTHY COMMUNITY WELFARE CAUSES AS PART

ESTABLISH CLEAR ROLES AND RESPONSIBILITIES

The knowledge and expertise in various fields of individual directors contribute to increasing the effectiveness of the Board. All directors have direct access to the advice and services of the Company Secretaries either as a full Board or in their individual capacity, in the performance of their duties. The appointment and dismissal of Company Secretaries is a matter for the Board as a whole.

STRENGTHEN COMPOSITION BOARD COMMITTEES

The Company's remuneration policy is based on the philosophy of enabling the Company to attract and retain directors of caliber and relevant experience and expertise to successfully manage the Group. For an Executive Director, remuneration will be conditional on achieving objectives, including targets and personal performance, and will be linked to group and individual performance. The Remuneration Committee has a structured procedure for the Board of Directors to approve the remuneration of all non-executive directors, based on their experience and expertise and the level of responsibility of the directors involved, as well as the state of the industry.

REINFORCE INDEPENDENCE Independent Non-Executive Directors

His extensive experience in managing the Group's property and mill operations, which would enable him to provide the Board with a diverse set of experience, expertise and skills to better manage and direct the Group;. He has exercised his due diligence in the interest of the Company and shareholders during his tenure as Executive Chairman of the Company; and. He has provided objectivity in decision-making and ensured effective control and balance in the work of the Board.

FOSTER COMMITMENT Board Meetings

The Board appoints its members through a formal and transparent selection process which is in accordance with the Company's articles of association. The Board recognizes gender diversity as published in the Code and recognizes the business benefits of having a balanced Board. The company's articles of association provide that at least one-third (1/3) of the board is required to resign by rotation at each general meeting, provided that each board member must resign at least once every three years.

UPHOLD INTEGRITY IN FINANCIAL REPORTING Internal Control

The annually retiring Directors are the Directors who have served the longest since their appointment or reappointment in accordance with the Articles of Association. To assist shareholders in their decision, sufficient information, such as personal profile and attendance at meetings of each Director standing for re-election at the forthcoming General Meeting, will be set out in the General Meeting Announcement (Ordinary Resolutions 4,5 & 6) on page 4 and the Board Profile on pages 14 to 16.

RECOGNISE AND MANAGE RISK Risk Management Framework

ENSURE TIMELY AND HIGH QUALITY INFORMATION

STRENGTHEN RELATIONSHIP BETWEEN COMPANY AND SHAREHOLDERS Dialogue between the Group and Investors

BOARD RESPONSIBILITIES
KEY FEATURE OF THE GROUPʼS RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM
REVIEW OF STATEMENT BY EXTERNAL AUDITORS
CONCLUSION
Attendance At Meetings
Frequency and Procedures of Meetings
Functions
Rights
Reporting Procedures

The management transferred the responsibility for reviewing the adequacy and integrity of the risk management system and internal controls to the audit committee. The audit committee was aware of important matters of risk management and internal control. The company secretaries distribute the minutes of the board meetings to all members of the board of directors.

FINANCIAL STATEMENTS

Corporate information

The Company is a public limited company incorporated and headquartered in Malaysia, and is listed on the Main Market of Bursa Malaysia Berhad. The main activities of the Company are palm oil cultivation and investment. There were no significant changes in the nature of the main activities during the financial year.

The directors consider Sharikat Kim Loong Sendirian Berhad, a company incorporated in Malaysia, as the ultimate holding company of the company.

Summary of significant accounting policies 1 Basis of preparation

Changes in accounting policies

Summary of significant accounting policies (contʼd) 2 Changes in accounting policies (contʼd)

Disclosure of Interests in Other Entities

Fair Value Measurement

Standards issued but not yet effective
Summary of significant accounting policies (contʼd) 3 Standards issued but not yet effective (contʼd)

Basis of consolidation

Summary of significant accounting policies (contʼd) 4 Basis of consolidation (contʼd)

Subsidiaries
Transactions with non-controlling interest

Summary of significant accounting policies (contʼd) 7 Foreign currency

Property, plant and equipment

Summary of significant accounting policies (contʼd) 9 Biological assets

Land use rights
Intangible assets

Summary of significant accounting policies (contʼd) 11 Intangible assets (contʼd)

Impairment of non-financial assets
Financial assets

Summary of significant accounting policies (contʼd) 13 Financial assets (contʼd)

Impairment of financial assets

Summary of significant accounting policies (contʼd) 15 Cash and cash equivalents

Inventories
Provision
Financial liabilities

Summary of significant accounting policies (contʼd) 18 Financial liabilities (contʼd)

Segment reporting
Share capital and share issuance expenses
Contingencies

Summary of significant accounting policies (contʼd) 22 Revenue recognition

Borrowing cost
Income taxes (a) Current tax

Summary of significant accounting policies (contʼd) 24 Income taxes (contʼd)

Employee benefits (i) Short term benefits

Summary of significant accounting policies (contʼd) 25 Employee benefits (contʼd)

Financial guarantee contracts
Leases (i) As lessee

Summary of significant accounting policies (contʼd) 28 Hedge accounting

Fair value measurement

Summary of significant accounting policies (contʼd) 29 Fair value measurement (contʼd)

Current versus non-current classification

Significant accounting estimates and judgements

Key sources of estimation uncertainty

Revenue
Cost of sales
Other items of income
Finance costs
Profit before tax
Employee benefit expenses
Directors' remuneration
Directors' remuneration (contʼd)
Tax (contʼd)
Earnings per share (a) Basic
Earnings per share (contʼd) b) Diluted
Property, plant and equipment (contʼd)
Land use rights
Biological assets
Investment in subsidiaries
Investment in subsidiaries (contʼd) Details of the subsidiaries are as follows
Investment in subsidiaries (contʼd)
Investment in subsidiaries (contʼd) In the previous ﬁnancial year,
Intangible assets
Inventories
Trade and other receivables
Trade and other receivables (contʼd) (a) Trade receivables (contʼd)
Trade and other receivables (contʼd)
Cash and bank balances
Trade and other payables
Trade and other payables (contʼd)
Loans and borrowings
Loans and borrowings (contʼd)
Deferred tax

The consolidated ﬁnancial statements comprise the ﬁnancial statements of the Company and its subsidiaries as at the reporting date. The resulting difference is recognized directly in equity and attributed to owners of the company. Any gain or loss on derecognition of the asset is included in the profit or loss in the year the asset is derecognised.

Where the recoverable amount of the cash-generating unit is less than the carrying amount, an impairment loss is recognized in profit or loss. If this is the case, the carrying amount of the asset is increased to its recoverable amount. Financial assets are recognized in the statements of ﬁnancial position when, and only when, the Group and the Company become a party to the contractual terms of the ﬁnancial instrument.

Financial liabilities, within the scope of IAS 139, are recognized in the statement of financial position when and only when the Group and the Company become parties to the contractual provisions of the financial instrument. The accounting policies adopted in segment reporting are identical to the Group's accounting policies. Contingent liabilities and assets are not recognized in the statements of financial position of the Group and the Company.

Group employees receive compensation in the form of stock options in return for services rendered. After initial recognition, financial guarantee contracts are recognized as income in the profit and loss account over the term of the guarantee. At the reporting date, the Group's loans bear interest at the following interest rates.

February comprehensive loss At 31 January

Deferred tax (contʼd)

The components and movements of deferred tax liabilities/(assets) during the business year are as follows: Recognized in

February loss At 31 January

Share capital
Share capital (contʼd)
Other reserves
Share premium (non-distributable)
Revaluation reserve (non-distributable)
Option reserve (non-distributable)
Retained earnings
Transfer of reserves
Related party disclosures
Related party disclosures (contʼd)
Commitments
Derivatives
Segmental information
Segmental information (contʼd)
Contingent liabilities (unsecured)
Financial risk management objectives and policies
Financial risk management objectives and policies (contʼd) (b) Liquidity risk
Financial risk management objectives and policies (cont'd) (c) Interest rate risk
Financial risk management objectives and policies (cont'd) (e) Fair value of financial instruments (cont'd)
Financial instruments
Capital management
Dividends
Authorisation of financial statements for issue
Supplementary Information - Breakdown of retained profits into Realised and Unrealised

Treasury shares refer to the ordinary shares of the company that are owned by the company. Explanations to the financial statements. i) Details of outstanding share options at the end of the year. Other characteristics of the options granted were not included in the fair value measurement.

The Group and Company Executive Directors and other members of key management have been granted the following number of share options under the ESOS. The directors have assessed the fair value of these corporate guarantees not to have a material financial impact on the results and retained earnings of the Company. The table below summarizes the maturity profile of the Group's and the Company's liabilities at the reporting date based on undiscounted contractual repayment obligations.

Interest rate risk is the risk that the fair value or future cash flows of the Group's and the Company's financial instruments will fluctuate due to changes in market interest rates. Commodity price risk is the risk that the fair value or future cash flows of the Group and the company's financial instruments will fluctuate due to changes in commodity prices. Therefore, the carrying amounts of the long-term portion of the loans are reasonable approximations of fair value.

The financial instruments of the Group and the Company are categorized in the following classes.

ANALYSIS OF SHAREHOLDINGS

S.(D) 32062, PTD 3879

Held by the Group (continued). or failing whom, the Chairman of the Meeting as my/our proxy to vote for me/us and on my/our behalf at the Thirty-Ninth Annual General Meeting of the Company to be held at Dewan Johor, Level 2 of Mutiara Hotel, Jalan Dato Sulaiman, Taman Century, K.B. and upon any postponement thereof in the manner indicated below:-. Please indicate with an 'X' in the appropriate box against each resolution how you would like your proxy to vote. If no instruction is given, this form will be taken to authorize the proxy to vote at his/her discretion.).

A member whose name appears in the register of depositors as of July 18, 2014 is considered a member entitled to attend, speak and vote at the meeting. A member who is entitled to attend the meeting and vote has the right to appoint a person as his proxy to attend the meeting, speak and vote in his place. Where a member appoints more than one (1) proxy, the appointment shall be void unless he specifies the proportions of his holdings to be represented by each proxy.

To be valid, the duly completed form of proxy must be deposited at the Company's Registered Office at least forty-eight (48) hours before the time fixed for holding the meeting. If the appointor is a corporation, this form must be executed under its common seal or under the hand of its attorney. Where a member of the Company is an authorized nominee as defined in the Securities Industry (Central Depositories) Act 1991, it may appoint at least one proxy in respect of each securities account held by it with ordinary shares of the Company to the credit of said securities account.

Where a member of the Company is an exempt authorized nominee who holds ordinary shares in the Company for multiple beneficial owners in one securities account ("omnibus account"), there is no limit to the number of proxies that the exempt authorized nominee may appoint in respect for each omnibus account it holds.