2062 - HARBOUR - AnnualReport - 2017-06-30 - HLG - Annual Report 2017 - 1179147401

H ARB OUR-LI NK GROUP B ERH A D ( 5 9 2 9 0 2 -D)
HARBOUR-LINK GROUP BERHAD

(592902-D)
A NNUA L REPO RT 20 1 7
ANNUAL
REPORT 17
H AR B O U R- L IN K G RO U P BE RH A D ( 5 9 2 9 0 2 -D)
Wi s m a H a r b o u r, Pa r kc i t y C o m m e rc e Sq u a re,
Ja l a n Tu n A h m a d Za i d i ,
9 7 0 0 0 B i nt u l u , Sa rawa k , M a l ays i a .
Te l : 0 8 6 - 3 1 8 9 9 8
Fax : 0 8 6 - 3 3 2 4 2 9
E- m a i l : i nfo @ h a r b o u r.co m .my
w w w. ha rbour. com . my
CONTENTS
01 Corporate Information 27 Audit Committee Report

02 Corporate Structure 29 Statement on Risk Management and Internal Control
04 Board of Directors 32 Financial Statements
09 Key Senior Management 132 Analysis of Shareholdings
10 Management Discussion and Analysis 135 Analysis of Warrantholdings
16 Group Financial Highlights 138 List of Properties
17 Corporate Governance Statement 142 Notice of Annual General Meeting
26 Other Information Proxy Form

(592902-D)
Established in 2002, Harbour-Link Group Berhad consolidated all related business activities and was ofcially listed on
the Main Market of Bursa Malaysia Securities Berhad on 6 January 2004. With its roots firmly planted in the shipping
and total logistics services, engineering & construction industry for the past 42 years, Harbour-Link Group has grown
steadily and built multi-disciplinary industry expertise covering a comprehensive range of services to fulfill its client's
needs. Today, Harbour-Link Group's business footprint extends across the Intra-Asian region and it has successfully
established itself as a reputable brand-name within the industries that it operates.
Annual Report 2017 1
CORPORATE INFORMATION
BOARD OF DIRECTORS
GROUP MANAGING DIRECTOR INDEPENDENT NON-EXECUTIVE DIRECTORS
Yong Piaw Soon Bin Lay Thiam
Datuk Pau Chiong Ung
EXECUTIVE DIRECTORS Datuk Ir. K. Zainal Abidin Bin A. Jalil (Appointed on 21 February 2017)
Dato Mohamed Salleh Bin Bajuri (Retired on 22 November 2016)
Wong Siong Seh
Dato' Toh Guan Seng
Hii Kwong Wui
Lee Seng Chiong
Lau Sii Hin (Resigned on 30 March 2017)
AUDIT COMMITTEE SHARE REGISTRAR
Bin Lay Thiam (Chairman) Mega Corporate Services Sdn Bhd

Datuk Ir. K. Zainal Abidin Bin A. Jalil Level 15-2, Bangunan Faber Imperial
Datuk Pau Chiong Ung Court, Jalan Sultan Ismail
50250 Kuala Lumpur
Tel : (03) 2692 4271
REMUNERATION COMMITTEE Fax : (03) 2732 5388
email : info@megacorp.com.my
Datuk Pau Chiong Ung (Chairman)
Yong Piaw Soon
AUDITORS
Bin Lay Thiam
Ernst & Young
Chartered Accountants
NOMINATION COMMITTEE
113-115, 1st Floor, Lot 3401
Parkcity Commerce Square
Datuk Ir. K. Zainal Abidin Bin A. Jalil (Chairman)
Jalan Tun Ahmad Zaidi
97000 Bintulu, Sarawak
Bin Lay Thiam
PRINCIPAL BANKERS
COMPANY SECRETARIES
Lim Seck Wah (MAICSA 0799845) Malayan Banking Berhad

AmBank Berhad
M. Chandrasegaran A/L S.Murugasu (MAICSA 0781031) Hong Leong Bank Berhad
United Overseas Bank (Malaysia) Bhd
REGISTERED OFFICE
STOCK EXCHANGE LISTING
Wisma Harbour
Parkcity Commerce Square Main Market of the Bursa Malaysia
Jalan Tun Ahmad Zaidi Securities Berhad
97000 Bintulu, Sarawak Stock Name : HARBOUR
email: info@harbour.com.my Stock Code : 2062
2 Harbour-Link Group Berhad (592902-D)
CORPORATE STRUCTURE
As at 16 October 2017
Shipping And Marine Division
80% 100% 80% 85% 100%
HARBOUR IVORY HARBOUR-LINK HARBOUR HARBOUR-LINK HLG PETROLEUM

SDN BHD (738249-M) NAVIGATION HORNBILL LINES SDN BHD SDN BHD (722821-K)
(738254-T)
SDN BHD (678560-X) SDN BHD (733539-X)
z 54.79% Advance
Mariner Lines
Sdn Bhd (1173777-U)
z 100% AML
Shipping
Sdn Bhd
(1173948-H)
z 100% Harbour Challenger Sdn Bhd (679380-P)
z 100% AML
z 100% Harbour Eagle Sdn Bhd (682237-W) Shipping
z 100% Satun Shipping Sdn Bhd (681960-T) (Singapore)
z 100% Harbour-Link Marine Services Sdn Bhd (738253-H) Pte Ltd
(201620045G)
z 100% Harbour Agencies (Sibu) Sdn Bhd (291744-P)
z 100% Harbour Services (Kuching) Sdn Bhd (354145-A) z 51% AML
Shipping
z 100% Harbour Xtra Sdn Bhd (1146365-W) (Sabah)
z 100% Harbour-Link (Singapore)
z 100% Navasco Shipping Sdn Bhd (409418-A) Pte Ltd (201423615W) Sdn Bhd
(1204210-A)
z 85% Harbour-Link Shipping Sdn Bhd (738252-M) z 100% Harbour Jupiter
z 85% Harbour Ruby Sdn Bhd (1153587-X) Sdn Bhd (759230-A)
z 85% Harbour Zenith Sdn Bhd (1153350-W) z 95% Harbour-Link Lines
z 52% Harbour Gemini Sdn Bhd (733542-X) (KK) Sdn Bhd (739564-H)
z 70% Harbour-Link Lines
(JB) Sdn Bhd (739560-D)
z 63.75% Harbour-Link Lines
(KCH) Sdn Bhd (739565-T)
z 60% Harbour-Link Lines
(PK) Sdn Bhd (739562-P)
z 40% Smart Shipping
Sdn Bhd (687795-U)
CORPORATE STRUCTURE
As at 16 October 2017
contd
Property Engineering &

/>
Development
Division
Division Division
100% 49% 100% 100% 51% 100%
HARBOUR ECL (MALAYSIA) HARBOUR-LINK HLG RESOURCES ARCADIA EASTERN SOLDAR

AGENCIES SDN BHD (151779-W) (M) SDN BHD SDN BHD (720931-A) PROPERTIES ENGINEERING &
(222555-H)
(SARAWAK) SDN BHD (874993-P) CONSTRUCTION
SDN BHD SDN BHD (153971-K)
(461102-P) z 85% HKK Jaya z 100% Sarawak
Sdn Bhd Edible Oils
(919962-D) Sdn Bhd
(533994-D)
z 100% Harbour-Link z 100% ESE Energy

Trading Pte Ltd (201605190R) Sdn Bhd
(326947-H)
z 60% HLG Equipment
z 100% Harbour Agencies
Sdn Bhd (917772-U) z 100% Eastern
(Sabah) Sdn Bhd (487253-X)
z 99% HLG Equipment Soldar
z 100% Union Star Shipping (Singapore)
Pte Ltd (201700495R) (B) Sdn Bhd (20001965)
Pte Ltd
z 100% A.T. Dunia (BTU) (200610417E)
z 100% Harbour-Link Logistics Sdn Bhd (206893-W)
Sdn Bhd (311969-V) z 100% ESEC
z 100% Harbour-Link Logistics (S)
z 100% Harbour Agencies (Cambodia)
Sdn Bhd (795956-H)
Sdn Bhd (237806-K) Pte Ltd
z 100% Siong Jaya Sdn Bhd (636328-U) (Co. 2001E/2010)
z 100% Harbour Services Corporation

Sdn Bhd (311131-U)
z 100% Harbour Service (Miri) Sdn Bhd (311083-D)
z 100% Harbour-Link Leasing Sdn Bhd (446351-K)
z 100% Harbour-Link (Labuan) Limited (LL07749)
z 70% HLG Engineering Sdn Bhd (311075-X)
z 70% Harbour-Link Forwarders Sdn Bhd (1193136-W)
z 60% Best Success Bonded Store Supply
Sdn Bhd (955626-T)
z 55% Serimaju Konsortium Sdn Bhd (1151695-K)
z 50% A&H Project Services Sdn Bhd (524951-W)
z 47% Harbour Services Sdn Bhd (185955-A)
BOARD OF DIRECTORS
2 3
4 5
1 7
6
From left to right :
1. LEE SENG CHIONG 4. YONG PIAW SOON 7. HII KWONG WUI

Executive Director Group Managing Director Executive Director
2. DATO' TOH GUAN SENG 5. DATUK PAU CHIONG UNG 8. DATUK IR. K. ZAINAL ABIDIN
Executive Director Independent Non-Executive Director BIN A JALIL
Independent Non-Executive Director
3. BIN LAY THIAM 6. WONG SIONG SEH
Independent Non-Executive Director Executive Director
BOARD OF DIRECTOR
contd
YONG PIAW SOON, 65 WONG SIONG SEH, 55

Group Managing
ging Director/Malaysian/Male Executivee Director/Malaysian/Male
He was appointed to the Board of Harbour-Link Group on 27 He was appointed to the Board on 27 December 2003 and, is a
December 2003. On 12 February 2004, he was appointed to the founder member of Harbour-Link Group. He started his career in
Remuneration Committee of the Company. He is a founder early 1980s
80s working as an executive in a prominent shipping
member of Harbour-Link Group and his active involvement in company in Sibu. His involvement in the shipping industry has
the shipping and freight forwarding industry in East Malaysia earned him vast experience and exposure and, a sound
since the early 1970s has distinguished him as one of the understanding of the industry which includes ship
industrys pioneers. He started his business in the early 1970s in management, freighting, chartering services and other related
timber export and other logging related activities. In 1975, he services. In 1983, he joined Antah Transact Sdn Bhd as an
ventured into the forwarding and shipping business. His astute Operations Manager. He was attached to the company for 9
business instincts and in-depth knowledge of the shipping and years where he was involved in providing logistic services in the
forwarding industry has positioned him well to spearhead and oil and gas industry. He left Antah Transact Sdn Bhd in 1992 to
lead the business expansion and development of Harbour-Link join HLM Group and later was appointed as Director on 1 March
Group throughout the years. 1994.
Under his leadership, Harbour-Link Group has grown to He is in charge of the Harbour-Link Groups shipping and
become a major player in the shipping and forwarding container liner service operations, management and business
industry in the region. He has succeeded in elevating development. He also sits on the Board of several subsidiary
Harbour-Link Group to a higher level of business achievement companies of the Group.
and diversified into Engineering, Shipping & Marine Services,
Freight Forwarding & Logistic services, Equipment Sales & He does not hold any directorships in other public companies.
Rental and Property Development & Construction. He has laid a
good foundation for the future of the Harbour-Link Group of
Companies. He sits on the Board of several subsidiary
companies of Harbour-Link Group and Herdsen Corporation
Sdn.Bhd. & its subsidiaries.
He does not hold any directorships in other public companies.

BOARD OF DIRECTOR
contd
DATO TOH GUAN SENG, 62 HII KWONG WUI, 55

Executive Director/Malaysian/Male Executive Director/Malaysian/Male
He was appointed to the Board of Harbour-Link Group on 27 He was appointed to the Board on 27 December 2003. H He
December 2003 and, is a founder member of Eastern Soldar started his career in Pan Sarawak Co. Sdn Bhd in 1981 as a
Engineering & Construction Sdn Bhd (ESEC). He has more Shipping Executive. In 1994, he joined HLM Group and was wa
than 40 years experience in the oil and gas industry. He started appointed as the Regional Director in charge of Sibu an and
his career as a Unit Group Leader with Jurong Engineering Pte. Kuching regions in 1996. He has more than 30 years experience
experienc
Ltd (Singapore) and later ventured into business by setting up in the shipping industry. He is responsible for the dai daily
his trading firm dealing with LPG safety equipments. In 1986, operations, management and business development of bot both
he founded ESEC, and over the period of 31 years, under his the Sibu and Kuching regions. He also sits on the Board of several
sever
able leadership, ESEC Group has managed to penetrate into subsidiary companies of Harbour-Link Group.
the oil and gas and petrochemical industries resulting in the
gradual and steady growth of ESEC. He does not hold any directorships in other public companies.
He is currently President of Federation of Malaysia Foundry &

Engineering Industries Association (FOMFEIA), President of the
Negeri Sembilan Foundry & Engineering Industries Association,
and Vice-President of Negeri Sembilan Chinese Chambers of
Commerce and Industry (NSCCCI).

BOARD OF DIRECTOR
contd
LEE SENG CHIONG, 58 BIN LAY THIAM, 47

Executive Director/Malaysian/Male Independent
ndependent Non-Executive Director/Malaysian/Male
He was appointed to the Board on 27 December 2003. He He was appointed to the Board of Harbour-Link Group Berhad
Berh
started his career in 1981 as a Shipping Executive where he on 6 February 2014. He is also a member of the Audit, Aud
gained experience in shipping operations, marketing and Remuneration and Nomination Committees. On 1st July 201 2016,
management. He joined HLM Group and was appointed as he was appointed as the Chairman of Audit Committee of the t
Regional Director in 1994. Presently is in charge of the Bintulu Company. He is a Chartered Accountant by profession and a
region shipping operations, management and business member of the Malaysian Institute of Accountants an and
development. He also sits on the Board of several subsidiary Malaysian Institute of Certified Public Accountants and a Fellow
Fello
companies of Harbour-Link Group. of the Association of Chartered Certified Accountants.
He does not hold any directorships in other public companies. Started his career at KPMG Peat Marwick, Kuala Lumpur in 1990
where he was attached to the audit division and later seconded
to the consultancy division. During his tenure of 10 years in
KPMG Peat Marwick, he gained professional exposure in
auditing, business advisory and consultancy services. He joined
Fiamma Holdings Berhad, in 2000, assuming the role of Group
Accounts & Corporate Affairs manager, principally involved in
corporate reporting, compliance and fund raising. In 2005, he
was appointed the Group Financial Controller of Harbour-Link
Group Berhad. He continued to pursue his career advancement
as the Chief Financial Officer in Southern Acids Berhad in 2010
and subsequently as the Chief Financial Officer in GSB Group
Berhad in 2011, where he was principally responsible for the
financial affairs, business development and treasury functions.
He is currently the Senior General Manager (Finance) of Econpile
Holdings Berhad.

BOARD OF DIRECTOR
contd
DATUK PAU CHIONG UNG, 65 DATUK IR. K. ZAINAL ABIDIN BIN A JALIL, 66
Independent Non-Executive Director/Malaysian/Male Independent
ndependent Non-Executive Director/Malaysian/Male
He was appointed to the Board of Harbour-Link Group Be Berhad He was appointed to the Board of Harbour-Link Group Berhad
on 13 January 2015. He is also a member of the Audit, A onn 21 February 2017. On the 21 February 2017, he h was
Remuneration and Nomination Committees. On 2 22nd appointed Committee
ppointed to the Nomination Committee and Audit Com
November 2016, he was appointed as the Chairman of off the Company. On 25 August 2017, he was appointed as the
Remuneration Committee of the company. Holding a tech technical Chairman of Nomination Committee of the Company.
certificate of wood working from Japan, he has been engaged
enga
He holds professional certificates in Offshore Facility Design
in timber and shipping industries for the last 30 years.
and
nd Production Engineering and also a Member of the Institute
In
off El
Electrical
t i l and
d Electronics
El t i Engineers
E i for
f United
U it d Kind
Ki d and EIRE
In his working experience,
experience he has served as Shipping Manager,
Mana (MIEE).
General Manager and Managing Director of a number of
shipping, timber extraction and export companies. He is His career in engineering started in 1976, as Oil & Gas
currently Director of numerous private companies involving in Exploration Engineer with Shell , before moving on to Esso
wood manufacturing and shipping. He was appointed and Eastern Inc. and was trained as a Facility Design Engineer in
served as Senator of Malaysian Parliament for a period of 6 Tulsa, Taxes. He has more than 20 years direct experience in the
years from 2007 to 2013. Currently he is Adviser to Secretariat oil and gas industry before venturing into private business.
of the Advancement of Malaysian Entrepreneurs (SAME), Prime
Minister Department, Malaysia. He is also the Chief Executive He started his own companies ASADRA and ASADRA SANKO in
Officer of Timberwell Bhd. 1991 as specialist Electrical-Instrumentation Telecommunicate
(EIT) Engineering companies servicing the oil and gas industry
He does not hold any directorships in other public companies. in Malaysia, Thailand and Indonesia.
In 2007, he co-founded PT. PERDANABINA MULIA, which

provides logistics series to support PETRONAS downstream
operations in Java.
He acquired substantial control in PT. DWI MAHARANI in 2014,

a company involved in coal mining operation in Sumatra,
Indonesia.
OTHER INFORMATION
(a) Family Relationship
None of the Directors have any family relationship with any director and/or major shareholder of the Company.
(b) Conflict of Interest
The Company has entered into recurrent related party transactions with parties in which the Directors of the Company, namely
Yong Piaw Soon, Wong Siong Seh, Lee Seng Chiong and Hii Kwong Wui have direct and/or indirect interests.
Save for the above mentioned disclosure, none of the other Directors have any conflict of interest with the Company.
(c) Conviction of Offences
None of the Directors have any conviction for offences within the past 5 years other than traffic offences, if any.
KEY SENIOR MANAGEMENT
SANDRA CHAN LEE HUNG WONG KONG WON

Age 46/Malaysian/Female Age 51/Malaysian/Male
Financial Controller Senior Manager
Heavylift & Haulage/Integrated Logistics Services Division
z More than 23 years working experience in related Industry.
z Obtained professional degree in Association of Chartered Certified z More than 23 years related working experience in related Industry.
Accountants. z Joined Harbour-Link Group in 1994 as Operation Executive.
z Obtained her fellowship in Association of Chartered Certified z Promoted to Manager, Heavylift & Haulage Unit in 1996.
Accountants in 2003. z Promoted to Senior Manager, Heavylift & Haulage Unit in 2007.
z Joined Harbour-Link Group in 1990 as Audit Supervisor. z In charge of the Heavylift & Haulage Activities.
z Promoted to Accountant in 2003. z He does not hold any directorships in other public companies.
z Promoted to Senior Account and Finance Manager in 2008.
z Appointed as Financial Controller in 2016. HOOI YEN PENG
z In charge of Corporate & Financial matters of the group. Age 66/Malaysian/Male
z She does not hold any directorships in other public companies. Executive Director
Engineering & Construction Division
ONG KHOON SENG
Age 52/Malaysian/Male z Co-Founder of Eastern Solder Engineering & Construction Sdn. Bhd.
Executive Director z Appointed as Executive Director in 1985.
Container Shipping Unit/Shipping & Marine Division z In charge of project estimation, contract administration and project
execution of the division.
z More than 28 years working experience in related industry. z He does not hold any directorships in other public companies.
z Obtained professional qualification studies in London and
completed CIMA (Chartered Institute of Management Accountants)
in 1992.
LEE CHIN CHAI
Age 52/ Malaysian/Male
z Joined Harbour-Link Group in 2016 as Executive Director of General Manager
Advance Mariner Lines Sdn. Bhd. and its subsidiary companies. Engineering & Construction Division
z In Charge of business development and operation of Container
Liner Services activities for Advance Mariner Lines Sdn. Bhd. and its
z More than 29 years working experience in the related industry.
subsidiary companies.
z Joined ESE Energy Sdn. Bhd. (an associate of Eastern Solder
z He does not hold any directorships in other public companies. Engineering & Construction Sdn. Bhd.) as company director in year
1994.
LIM SIN SANG z Appointed as General Manager of Eastern Solder Engineering &
Age 49/Malaysian/Male Construction Sdn. Bhd. in year 2014.
Executive Director z In charge of all technical and commercial aspects of project
Container Shipping Unit/Shipping & Marine Division management of the division.
z He does not hold any directorships in other public companies.
z Joined Harbour-Link Group in 2006 as Executive Director of
Harbour Link Lines (PK) Sdn. Bhd based in Port Klang. CHIN YEW HUI
z In charge of business development and operation of Container Age 40/Malaysian/Male
Liner Services of Harbour-Link Lines. Project Manager
z He does not hold any directorships in other public companies. Property Development Division
LAU CHII HUNG z More than 19 years working experience in related industry.
Age 54/Malaysian/Male z Obtained Executive Master in Management at Asia E University,
Regional Director Kuala Lumpur.
Shipping & Marine Division z Joined Harbour-Link Group in 2007 as Project Engineer.
z Promoted to Project Manager in year 2012.
z More than 33 years working experience in related Industry. z In charge of technical & commercial aspect .
z Obtained Bachelor Degree of Science major in Computer Science &
Mathematics in 1984.
z Joined Harbour- Link Group in year 1994.
z Appointed as Regional Director in 1996.
z In charge of business development and operation of Shipping &
Marine activities in Miri, Sabah and Port Klang.
TING SING HONG

Age 60/Malaysian/Male
Senior Manager
Family Relation ship and Other Disclosure Key Senior
Freight Forwarding/Integrated Logistics Services Division Management
z More than 38 years working experience in related Industry. None of the Key Senior Management has family relationship
z Obtained professional degree in Bachelor of Art in Business with any director and/or major shareholder of the Company and
Administration.
z Joined Harbour-Link Group in 1995 as Assistant Manager, Freight
does not have any conflict of interest with the Company or been
Forwarding unit. convicted of any offence within the past 5 years, nor had any public
z Promoted to Manager, Freight Forwarding unit in 1998. sanction or penalty imposed by the relevant regulatory bodies
z Promoted to Senior Manager, Freight Forwarding unit in 2007. during the financial year.
z In charge of the Freight Forwarding Activities.
MANAGEMENT
DISCUSSION
AND ANALYSIS
OVERVIEW OF BUSINESSES
Harbour-Link was incorporated on 17th September 2002 and listed on the Main Market of Bursa Malaysia
Securities Berhad (Main Market) on 6th January 2004.
Over the past 15 years, Harbour-Link has established its track records as a leading shipping, marine and
integrated logistics provider and engineering and construction contractors for oil and gas and power
industries locally and regionally.
The Groups headquarter is located in Bintulu, Sarawak, Malaysia with branches and operation offices in
every main ports of Malaysia, Brunei, Singapore and Hong Kong. A wide network of agent representations
have been established around the world.
MANAGEMENT DISCUSSION AND ANALYSIS

contd
REVIEW OF FINANCIAL RESULTS AND OPERATING ACTIVITIES
KEY FINANCIAL HIGHLIGHTS
The following discussion and analysis compares the Groups financial condition and results of operations for the year ended 30th
June 2017 with those of the previous year.
Financial Review
2017 2016 2015 2014 2013

(RM000) (RM000) (RM000) (RM000) (RM000)
Group Revenue 525,746 590,764 506,963 457,563 422,708
Group Operating Profit 50,431 106,473 81,633 57,556 24,196
Profit before tax 46,751 101,960 76,660 51,023 17,645
Profit after tax 31,780 71,858 54,642 36,349 6,550
Group net profit attributable to shareholders 28,634 56,198 51,789 33,415 5,093
Operating cash flow 44,704 48,814 78,070 103,768 (20,882)
Earnings per share (EPS) (sen) 7.15 14.04 12.93 18.36 2.80
Return on equity (ROE) (%) 8.25 17.21 18.54 14.47 2.53
Net Gearing (%) 17 19 20 28 46
Comparison FY 2017/FY 2016
Revenue
In 2017, Group revenue has dropped by 11% to RM525.75 million from RM590.76 million reported in 2016. Higher revenues
generated from the shipping and marine division were to offset the declines in sales of property division by RM87.28 million due to
completion of Kidurong Gateway Phase 1 & 2 in 2016 and yet to launch of new phases.
Profit after tax
Group profit after tax for 2017 fell by 55% to RM31.78 million against the RM71.86 million the previous year. Net profit after tax and
attributable to shareholders has decreased by 49% to RM28.63 million in 2017. In tandem, earnings per share for 2017 decrease to
7.15 sen from 14.04 sen in 2016.
Earnings were lower in 2017 due mainly to full recognition of sales from property division and lower performance from engineering
division.
Liquidity and Financial Resources
The Group generally has been financing its operations through internal generated funds and bank borrowings.
As at 30th June 2017, the Group has net borrowings of RM84.20 million (2016: RM101.40 million). The net gearing ratio is 17 times
(2016: 19 times).

contd
Capital Expenditures
The Groups capital expenditures for the year 2017 was RM36.09 million and future commitments of RM12.50 million are mainly
comprising of additional purchases of transport and handling equipment and construction of new warehouses. The investment shall
be financed by the Groups internal resources and bank borrowings.
Dividend
The Board has recommended a single tier final dividend of 1.5 sen per share for the year ended 30th June 2017.
Review of Core Business Operations Performance and Outlook
Review of the performance and outlook of each division of the Group for the financial year ended 30th June 2017 and future
prospects of the Group are as follows:-
Revenue by business divisions
Shipping and Integrated

Marine logistics Engineering Property
Group Revenue by Business Division (RM000) (RM000) (RM000) (RM000)
2017 334,801 146,032 34,462 10,451

2016 268,287 166,521 58,223 97,733
Profit before tax by business division
Shipping and Integrated

Group Profit /(Loss) before tax by Marine logistics Engineering Property
Business Division (RM000) (RM000) (RM000) (RM000)
2017 16,877 29,050 (177) 1,099

2016 (3,320) 40,555 15,606 49,097
Shipping and Marine Division
Financial review:
The Groups shipping and marine division, which comprises of ship owners unit, ship operator unit and agency unit, was the main
revenue contributor, accounting for 64% the Group total revenue.
Supported by our newly established ship operator namely AML Shipping Sdn. Bhd., we saw our revenue growing by 25% to
RM334.80 million (2016: RM268.29 million). The earnings before tax for the shipping and marine division has increased to RM16.88
million.
Operation review:
In 2017, the container shipping sector continued to face a challenging market, characterised by an excess supply of vessel tonnage
and a sluggish seaborne trade volume. This demand-supply imbalance saw container freight rates across most routes dive since the
beginning of 2016.
Harbour-Link reported a year-on-year revenue increase of 25% to RM334.80 million. The volume has increased by 49% due to our
newly established ship operator, AML Shipping Sdn. Bhd. Under our expertise and professional fleet and inventory management,
Harbour-Link maintained a high capacity utilisation of above 80% in 2017.
Harbour-Links total fleet tonnage stood at approximately 4500 twenty-foot-equivalent unit. Leveraging a more efficient vessel fleet,
Harbour-Link achieved better throughputs that improved our slot costs.

contd
Integrated Logistics Division
Financial review:
The integrated logistics division, is comprising of transport unit, heavy equipment and heavy lifting unit and freight forwarding unit.
In 2017, the revenue generated was RM146.03 million representing 28% of the Group total revenue.
The revenue of integrated logistics division decreased by 12% to RM146.03 million. The earnings before tax has decreased by 28%
to RM29.05 million, due to cost increase in labour wages, fuel and spare parts and other operation costs as well as keen competition
from local players.
Operation review:
Harbour-Link offer highly customize distinctive supply chain solutions to our customer. The Groups domestics customers comprise
customers and industries from wood based industries to oil and gas and manufacturing industries.
Due to improvement of foreign market, our transport and freight forwarding units shall benefitted from the increase of volume of
export products that we handled. With the stable and recovery of oil and gas industries, our heavy equipment and heavy lifting unit
shall be busy to serve the plants repair and periodical maintenance work.
Further to these, the Group shall also intend to construct more warehouses in our Kuching, Bintulu and Port Klang area to cater for
cargo distribution business activities domestically.
Engineering Division
Financial review:
The engineering division accounting for 6% of the Group total revenue with RM34.46 million.
The revenue of the engineering division has decreased by 41% from RM58.22 million to RM34.46 million due to no new project
secured during the period. It has suffered a loss before tax of RM0.1 million from earnings before tax of RM15.6 million in 2016.
Operation review:
In 2017, the Group has ongoing contracts secured in previous year include refurbishment and repair of crude oil storage tank for
Kemaman Bitumen Company Sdn.Bhd. and EPCC of methanol tanks at ASTA Chemical Terminal, Kuantan, Pahang.
The Group will focus on the upcoming oil and gas related projects in several locations including Pengerang, Kemaman, Kuantan,
Pulau Indah, Melaka and Port Dickson.
Property Division
Financial review:
The property division accounting for 2% of the Group total revenue with RM10.45 million.
The revenue of the property division has decreased from RM97.73 million to RM10.45 million and correspondingly, its earnings
before tax has decreased to RM1.1 million from RM49.1 million in 2016 due to completion of Kidurong Gateway Phase 1 & 2 in 2016
and yet to launch our new phases of development.
Operation review:
Remaining 19 units of shophouses and 6 units of semi-detached industrial building (Sale Value: RM38 Million) are available for sale.
Promotions of sale has been carried out to attract investors to purchase these remaining properties. Building storage warehouses on
the part of the remaining land has been planned and shall be commenced construction by 4th quarter of 2017 and completion is
targeted in end 2018. These warehouses are constructed for sale and/or rental.

contd
BUSINESS RISKS AND MITIGATION MEASURES
We recognise that we may be exposed to certain anticipated or known risks that may have a material effect on our operations,
performance, financial situation and liquidity. As per Bursa Malaysias new disclosure requirements, we outline some of our key risks
and our strategies to mitigate such risks.
Competition
The marine transportation and logistics services industry has experienced a high competition amongst its existing players. Due to
our proven track record, in-depth industry knowledge and experience, skilled manpower, established process management, good
business relationship with customers and coupled with our ability to deliver consistent quality services and to provide integrated
logistics services, Harbour-Link is able to stay competitive. We also have in place a business plan to diversify our customers base so
that we do not totally dependent on any one industry or sector.
Fuel Costs
Fuel costs form a significant portion of our total operating costs for marine transportation and logistics services division. Hence, any
drastic fluctuation in fuel costs would inevitably affect our financial performance. The financial impact of an increase in fuel costs
may be reduced by passing the increased costs to our customers via fuel surcharge, with the exception of confirmed fixed rates
arrangement that has been agreed with customers. Thus, the Group will continuously review and negotiate new rates with shorter
tenure with customers should the fuel price increases beyond our cost limit.
Financial Risk
Financial risk includes liquidity and credit risk i.e. not having sufficient cash funding and credit facilities to operate our business
and fulfill our financial commitments. To mitigate this, we ensure that all our business units maintain optimum levels of liquidity at
all times which are sufficient for our operating, investing and financing activities. We also ensure that each business unit, through
efficient working capital management (i.e. accounts receivable and accounts payable management), is able to convert their current
assets into cash to meet all demands for payment as and when they fall due. Owing to the nature of our business, we seek to
maintain sufficient credit lines available to meet our liquidity requirements while ensuring effective working capital management
measures within the Group.
OUTLOOK
In the shipping and marines division, we have seen some container shipping players consolidating their services and divesting
from the shipping market due to slowdown and oversupply in the market. We are not immune to these factors however we are
embracing by minimising vessel idling, organizational cost-cutting, and working closely with alliance partners. On 8 September
2017, Northport (Malaysia) Bhd, Shin Yang Shipping Sdn Bhd and Harbour-Link have signed a memorandum of understanding (MoU)
to form a strategic alliance called The East Malaysia Network or TEAM Network. The MoU was aimed at achieving economies of scale
through the sharing of resources such as vessels, terminals arrangements and networks. (Source : www.thestar.com.my/business/
business-news/2017/09/08)
However, in the near term the industry headwind is expected to persist; especially after the exemption of Cabotage Policy, the
domestic and regional market will most likely to remain challenging for us in view of intense competition and strong pressure
on margins. Nonetheless, in order to sustain our performance in this segment, we will continue to scrutinize our costs, evaluate
sustainability of our operating routes and improve on our customer base and operational management.

contd
Integrated logistics services division will continue to benefit from manufacturing sector after its construction period through the
handling of inbound raw materials and export of finished products. Equipment rental segment also continues to be active to
service the oil and gas plants for periodical maintenance and support. Even though there is a steady stream of revenue from these
segments, the Groups prospect is still closely tied to the performance of the local Malaysian market and global economy which will
affect directly to the manufacturing sector. As such, we are cautious on capital expenditure spending on plant and machinery in
view of the present economic condition. Despite increased competition and the grim logistics trade outlook of late, we believe our
performance will remain satisfactory for the forthcoming financial year. We will continue to maintain and exploring new innovative
solutions for our customers and further develop new business opportunities to sustain our growth.
The engineering and construction division depends highly on the performance of the oil and gas industry. Since the decline in the
oil price, most oil and gas companies have scaled down their capital expenditures resulting in a slowdown in new projects focused
on developing oil and gas manufacturing and storage facilities within Malaysia and other intra-Asian developing regions. As such,
we are expecting a contraction in this segments performance going forward. However, we are cautiously optimistic that this is
but a short term contraction and we will see the industry recover and the engineering contract works increase in tandem with the
momentum of growth in the oil and gas industry.
The outlook for the local property market is expected to be moderate as the development of SCORE (Sarawak Corridor of Renewable
Energy) continues. The Groups development project Kidurong Gateway which is strategically located at the Kidurong Light
Industrial Estate, in easy reach of Samalaju Industrial Park which is part of SCORE development area and a stone throw away from
Kidurong oil and gas hub and Bintulu Port, continues to garner strong interest from investors. Our vision for this project is to
develop the entire 100 acres plot of land into a future township with integrated facilities. Phase 3 shall be launched when the
Management deems the timing is right. In the meantime, the Group will continue to look for potential land bank and strengthen its
assets portfolio.
The Board expects a challenging year ahead especially in the shipping and marine services and engineering as the domestic
economy has not shown any sign of a stable recovery. The Board will continue to emphasise on strategies to maximise operational
efficiencies and explore new business opportunities that will enhance the growth of the Group.
GROUP FINANCIAL HIGHLIGHTS
2013 2014 2015 2016 2017

RM000 RM000 RM000 RM000 RM000
Revenue 422,708 457,563 506,963 590,764 525,746

Profit from Operation 24,196 57,556 81,634 106,473 50,431
Profit before taxation 17,645 51,023 76,660 101,960 46,751
Profit after taxation 6,550 36,349 54,642 71,858 31,780
Profit attributable to shareholders of parent 5,093 33,415 51,790 56,198 28,634
Total assets 444,109 486,410 582,899 589,080 607,318
Total liabilities 227,407 237,276 284,025 225,338 213,307
Total Borrowings 146,927 118,810 81,864 101,397 84,203
Per Share Data (sen)

Net assets 54.12 62.22 74.64 90.84 98.40
Earning per share 2.80 18.36 12.93 14.04 7.15
Financial Ratios
Gross profit margin (%) 16.43 17.18 24.33 23.12 14.77
Return on shareholders funds (%) 2.35 14.47 18.54 17.21 8.25
Trade receivables turnover (days) 91 78 103.00 87.00 84.00
Debt to equity 0.4 0.3 0.3 0.2 0.2
Interest coverage (times) 3 9 14 18 9
Revenue Prot Attributable to Prot from Operation

RM000 Shareholders of Parent RM000
RM000
590,764
56,198
106,473
525,746
51,790
506,963
457,563
422,708
81,634
33,415
57,556
28,634
50,431
5,093
24,196
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
CORPORATE GOVERNANCE STATEMENT
The Board of Directors (the Board) of Harbour-Link Group Berhad (Harbour or the Company) recognises and subscribes the
principles and recommendations set out in the Malaysian Code on Corporate Governance 2012 (the Code) as a key factor towards
achieving an optimal governance framework and process in managing the business and operational activities of the Company and
its subsidiaries (the Group).
The implementation of the recommendations as set out in Code is an ongoing process.
The Statement below sets out the manner in which the Group has applied the principles of the Code and the extend of compliance
with recommendations advocated therein.
PRINCIPLE 1 - ESTABLISH CLEAR ROLES AND RESPONSIBILITIES OF THE BOARD AND MANAGEMENT
The Board recognises the key role it plays in charting the strategic direction of the Company and has assumed the following
principal responsibilities in discharging its fiduciary and leadership functions:
z reviewing and adopting a strategic plan for the Company, addressing the sustainability of the Groups business;
z overseeing the conduct of the Groups business and evaluating if its businesses are being properly managed;
z identify principal business risks faced by the Group and ensuring the implementation of appropriate internal controls and
mitigating measures to address such risks;
z ensuring that all candidates appointed to senior management positions are of sufficient calibre, including the orderly
succession of senior management personnel;
z overseeing the development and implementation of the shareholders communication policy; and
z reviewing the adequacy and integrity of the Groups internal control and management information systems.
To assist in the discharge of its stewardship role, the Board has established Board Committees, namely the Audit Committee,
Nomination Committee and Remuneration Committee to examine specific issues within their respective terms of reference
as approved by the Board and report to the Board with their recommendations. The ultimate responsibility for decision making,
however, lies with the Board.
Board Charter
The Board has approved and adopted a Board Charter on 26 August 2016. The Board Charter aims to ensure that all Board members
understand their duties and responsibilities as well as the laws, regulations and best practices governing their conduct.
The Board Charter is to be reviewed periodically and updated in accordance with the needs of the Company and any new
regulations that may have an impact on the discharge of the Boards responsibilities. The Board Charter is accessible at the
Companys website at www.harbour.com.my.
Code of Conduct and Whistle-Blower Policy
The Board has established the Code of Ethics of the Group on 21 November 2016, setting out the standards of conduct expected
from Directors and employees to advocate good corporate behaviour. The Board recognises the importance of adhering to the Code
of Ethics and has taken measures to put in place a process to ensure its compliance.
The Board has adopted the Whistleblower Policy on 21 November 2016 and is committed to transparency, integrity and
accountability in the conduct of its business and affairs. It expects wrongdoings such as fraud, corruption, serious financial
impropriety and gross mismanagement to be reported and actions to be taken where appropriate. The Board will address the
disclosure in an appropriate, timely manner and given fair treatment to both whistleblower and the alleged wrongdoer. The
whistleblowers identity is protected unless otherwise required by law or for the purpose of proceedings. The whistleblower will be
protected from reprisal as a direct consequence of making a disclosure and to safeguard such persons confidentiality.
Both Code of Ethics and Whistleblower Policy are available on the Companys website at www.harbour.com.my.

contd
PRINCIPLE 1 - ESTABLISH CLEAR ROLES AND RESPONSIBILITIES OF THE BOARD AND MANAGEMENT contd
Companys Strategies promoting sustainability
The Board regularly review the strategic direction of the Company and the progress of the Companys operations, taking into
account changes in the business and political environment and risk factors such as level of competition.
Corporate Social Responsibility
The Company is committed to the welfare of its employees and to the surrounding communities in which it operates. The
management recognizes that for long term sustainability, its strategic orientation will need to cater beyond the financial parameters.
During the year, the Company has initiated and continued to support important causes amongst others:-
z Contribution of funds to various charitable organizations and associations.

z Sponsorship of events of various non-profitable organizations and schools.
z Occupational health and safety at the workplace. Employees are equipped with the necessary training and technical
knowledge besides the equipments and tools at work-sites to promote safety.
z Promote health awareness amongst employees with the launching of Annual Preventive Medical Screening program during
the year. It was fully sponsored by the Company.
z Monetary award based on academic achievements under the Groups Education Fund to children of eligible employees.
z Take heed to save the environment by reducing wastage and encourage energy conservation and IT savvy.
At this point in time, the Company has no policy formalizing its approach to workforce diversity. The Groups workforce consists
of individuals with skills and experiences including those gained on account of their gender, age and ethnicity. The Group sees
diversity as a strategic asset in supporting the attainment of its commercial goals and sustainable development.
The breakdown of the Board and the workforce by gender, age and ethnicity as at 30 June 2017 are as follows:
Gender
Male 797
Female 398
Age
Under 30 438
30 to 50 591
Above 50 166
Ethnicity
Malaysians
z Malay 172
z Chinese 352
z Bumimputra 450
z Indian 17
Non-Malaysians 204

contd
PRINCIPLE 1 - ESTABLISH CLEAR ROLES AND RESPONSIBILITIES OF THE BOARD AND MANAGEMENT contd
Supply of, and Access to, Information
The Board is supplied with relevant information and reports on financial, operational, corporate, regulatory, business development
and audit matters, by way of Board reports or upon specific requests, for decisions to be made on an informed basis and effective
discharge of Boards responsibilities.
Good practices have been observed for timely dissemination of meeting agenda, including the relevant Board and Board
Committee papers to all Directors prior to the Board and Board Committee meetings to facilitate informed Board decision and
to deal with matters arising from such meetings. The Executive Directors and/or other relevant Board members will be furnished
with comprehensive explanation on pertinent issues and recommendations by Management. The issues are then deliberated and
discussed thoroughly by the Board prior to decision making.
In addition, the Board members are updated on the Companys activities and its operations on a regular basis. All Directors have
access to all information of the Company on a timely basis to enable them to discharge their duties and responsibilities.
The Directors are provided with agenda of meetings and Board papers which contain management and financial information to be
discussed, in sufficient time prior to every Board meeting to enable them to obtain further explanation, where necessary, in order to
be properly informed before the meeting.
The Directors is supported by the external qualified Company Secretary who is a fellow member of the Malaysian Institute
of Chartered Secretaries and Administrators (MAICSA). The Company Secretary ensures that the Board is regularly updated on
relevant regulatory requirements, codes or new statutes issue from time to time. The Company Secretary also ensures that the
proceedings and resolutions reached at each Board meeting are recorded in the Minutes Book.
The appointment and removal of the Company Secretary is under the purview of the Board.
The Company Secretary also updates the Board at regular intervals regarding changes to the regulatory requirements.
PRINCIPLE 2 - STRENGTHEN COMPOSITION OF THE BOARD
The Board consists of eight (8) members, comprising of the Group Managing Director, four (4) Executive Directors and three (3)
Independent non-executive directors. This composition fulfills the requirements as set out under the Listing Requirements of Bursa
Malaysia Securities Berhad (Bursa Securities), which stipulated that at least two (2) Directors or one-third of the Board, whichever
is higher, must be independent. The profile of each Director is set out in this Annual Report. The Directors, with their differing
backgrounds and specializations, collectively bring with them a wide range of experience and expertise in areas such as finance;
accounting and audit; corporate affairs; and marketing and operations.
Nomination Committee Selection and Assessment of Directors
A Nomination Committee has been established, with specific terms of reference, by the Board, comprising exclusively Independent
Non-Executive Directors as follows:
Chairman Datuk Ir. K. Zainal Abidin Bin A. Jalil Independent Non-Executive Director
(Appointed on 21 February 2017)
Dato Mohamed Salleh Bin Bajuri Chairman, Independent Non-Executive Chairman

(Retired on 22 November 2016)
Members Bin Lay Thiam Independent Non-Executive Director
Datuk Pau Chiong Ung Independent Non-Executive Director


contd
PRINCIPLE 2 - STRENGTHEN COMPOSITION OF THE BOARD contd
Nomination Committee Selection and Assessment of Directors contd
The Nomination Committee is primarily responsible for recommending suitable appointments to the Board, taking into
consideration the Board structure, size, composition and the required mix of expertise and experience which the Director should
bring to the Board. It assesses the effectiveness of the Board as a whole, the Board Committees and the contribution of each
Director, including Non-Executive Directors. The Nomination Committee evaluates the Board components based on its diversifying
mixed of skills and experience.
The final decision on the appointment of a candidate recommended by Nomination Committee rests with the whole Board. The
Board is entitled to the services of the Company Secretary who would ensure that all appointments are properly made upon
obtaining all necessary information from the Directors.
During the financial year, the Nomination Committee met once, attended by all members, to :
z Review the composition of the Board in terms of its balanced mix of skills, experience and expertise.
z Review the performance of each Director.
z Review performance of audit committee.
z Review and evaluate the level of independence of Director who has served more than nine years.
The Board has adopted a board diversity policy to formalising its approach to boardroom diversity. The Board policy has defined that
diversity includes, but is not limited to, gender, age and ethnicity. The Group does not set specific numerical target for appointment
of candidates belonging to particular demographic groups to the Board. Notwithstanding the importance to promote board
diversity, appointments to the Board are ultimately based on merit, having regard to the contribution of the candidates to the Board
as a whole. The Board believes that merit-based appointments will best enable the Group to serve its shareholders and stakeholders.
The Nomination Committee is delegated with the overall responsibility for implementation, monitoring and periodic review of the
Board Diversity Policy.
The breakdown of the Board by gender, age and ethnicity as at 30 June 2017 are as follows:
Gender Age Ethnicity (Malaysia)

Male 8 40 to 50 1 Malay 1
Above 50 7 Chinese 7
Directors Remuneration
A Remuneration Committee has been established by the Board, comprising a majority of Non-Executive Directors as follows:\
Chairman Datuk Pau Chiong Ung Independent Non-Executive Director
Members Yong Piaw Soon Group Managing Director
Bin Lay Thiam Independent Non-Executive Director
Dato Mohamed Salleh Bin Bajuri Independent Non-Executive Chairman

The Remuneration Committee has been entrusted by the Board to determine that the levels of remuneration are sufficient to attract
and retain Directors of quality required to manage the business of the Group. The Remuneration Committee is entrusted under its
terms of reference to assist the Board, amongst others, to recommend to the Board the remuneration of the Executive Directors. In
the case of Non-Executive Directors, the level of remuneration shall reflect the experience and level of responsibilities undertaken by
the Non-Executive Directors concerned. In all instances, the deliberations are conducted, with the Directors concerned abstaining
from discussions on their individual remuneration. During the financial year under review, the Committee met once attended by all
members.

contd
PRINCIPLE 2 - STRENGTHEN COMPOSITION OF THE BOARD contd
Directors Remuneration contd
Details of Directors remuneration for the financial year ended 30 June 2017 are as follows:
Remuneration (RM)
Independent and
Executive Directors Non Executive
Description Company Subsidiary Company Subsidiary Total
Salary 726,428 1,994,104 - - 2,720,532

Fee 6,000 - 150,000 - 156,000
Allowance 32,000 30,969 30,000 - 92,969
Contributions to defined contribution
plan and social security contributions 87,769 245,277 - - 333,046
Total 852,197 2,270,350 180,000 - 3,302,547
The remuneration paid to the Directors, analysed in the following bands, is as below:-
Range of Remuneration (RM) Executive Non-Executive
Below RM50,000 - 2
RM 50,001 RM100,000 - 2
RM250,001 RM300,000 1 -
RM350,001 RM400,000 2 -
RM400,001 RM500,000 - -
RM500,001 RM550,000 1 -
RM700,001 RM800,000 1 -
RM800,001 RM850,000 1 -
PRINCIPLE 3 REINFORCE INDEPENDENCE OF THE BOARD
The position of Chairman is currently vacant since the retirement of Dato Mohamed Salleh Bin on 22 November 2016. During the
meeting, the board will elect a Chairman amongst themselves to chair the meeting. The position of Group Managing Director is held
by Mr Yong Piaw Soon, an Executive Director.
The Group Managing Director is responsible for ensuring the adequacy and effectiveness of the Boards governance process and
acts as facilitator at Board meetings to ensure all Directors participate and deliberate at all Board meetings and that no Board
member dominate discussion. As the Group Managing Director, supported by fellow Executive Directors, he implements the Groups
strategies, policies and decision adopted by the Board and oversees the operations and business development of the Group.
The roles and responsibilities of the Group Managing Director are prescribed in the Companys Board Charter which can be assessed
at the corporate website at www.harbour.com.my.
The Independent Non-Executive Directors bring objective and independent views, advice and judgment on interests, not only of the
Group, but also of shareholders and stakeholders. Independent Non-Executive Directors are essential in protecting the interests of
shareholders and contribute significantly to the Companys decision by giving rationale and fair view and to decide impartially.

contd
PRINCIPLE 3 REINFORCE INDEPENDENCE OF THE BOARD contd
The Board recognizes the importance of establishing criteria on independence to be used in the annual assessment of its
Independent Non-Executive Directors. Although the definition on independence according to the Listing Requirements of Bursa
Securities is used, the Board review and assess the independence of its independent directors annually based on substance over
their conduct, argue on the matters objectively and make decision rationally and other independence criteria. The Board, noted the
recommendations of the Code that the tenure of an independent director shall not exceed a cumulative term of nine (9) years. The
Board must justify and seek shareholders approval at general meeting if the Board intends to retain the Director as Independent
Director. The tenure of all the Independent Non-Executive Directors have not exceeded cumulative term of nine (9) years.
PRINCIPLE 4 FOSTER COMMITMENT OF DIRECTORS
The Board ordinarily meets at least four (4) times a year. Additional meetings are convened when urgent and important decisions
need to be made between scheduled meetings. Board and Board Committee papers which are prepared by the Management,
provide the relevant facts and analysis to facilitate the Boards decision making. The meeting agenda, the relevant reports and
Board papers are furnished to Directors and Board Committee members well before the meeting to allow the Directors sufficient
time to peruse for effective discussion and decision making during meetings. At the quarterly Board meetings, the Board reviews
the business performance of the Group and discuss major operational and financial issues. The Chairman of the Audit Committee
highlights to the Board at each Board meeting of any salient matters noted by the Audit Committee that may require the Boards
attention or direction.
Board Meetings
There were five (5) Board meetings held during the financial year ended 30 June 2017, with details of Directors attendance set out
below:
Meetings Attended
(out of 5 held)
Yong Piaw Soon Group Managing Director 3/4

Wong Siong Seh Executive Director 4/4
Dato Toh Guan Seng Executive Director 4/4
Lee Seng Chiong Executive Director 4/4
Hii Kwong Wui Executive Director 4/4
Bin Lay Thiam Independent Non-Executive Director 4/4
Datuk Pau Chiong Ung Independent Non-Executive Director 4/4
Datuk Ir. K. Zainal Abidin Bin A. Jalil Independent Non-Executive Director 1/1
Dato Mohamed Salleh Bin Bajuri Independent Non-Executive Chairman 1/2
Mr. Lau Sii Hin Executive Director 3/3
(Resigned on 30 March 2017)
As stipulated in the Charter, the Directors are required to devote sufficient time and efforts to carry out their responsibilities. The
Board obtains this commitment from Directors at the time of their appointment. Each Director is expected to commit time as and
when required to discharge the relevant duties and responsibilities, besides attending meetings of the Board and Board Committees.
All Board members are required to notify the Chairman on new directorships notwithstanding that the Listing Requirements of
Bursa Securities allow a Director to sit on the boards of 5 listed issuers. Such notification is expected to include an indication of time
that will be spent on the new appointment.

contd
PRINCIPLE 4 FOSTER COMMITMENT OF DIRECTORS contd
Directors Training Continuing Education Programmes
The Board is mindful of the importance for its members to undergo continuous training to keep abreast with changes to regulatory
requirements and the impact such regulatory requirements have on the Group.
All the Directors of the Company have attended the Mandatory Accreditation Programme conducted by Bursatra Sdn Bhd within the
stipulated timeframe required in the Listing Requirements.
During the financial year, all Board Members have attended pertinent training as below :-
Name of Director Date Training attended
(a) Mr. Yong Piaw Soon 6th 7th September 2016 SSM National Conference 2016
27th September 2016 Risk Management Briefing
7th November 2016 New Challengers of the Companies Bill 2016
(b) Mr. Wong Siong Seh 27th September 2016 Risk Management Briefing
30th March 2017 SSM National Interest Schemes Conference 2017
12th May 2017 The Companies Act 2016 : Memorandum & Articles
(c) Dato Toh Guan Seng 27th September 2016 Risk Management Briefing
10th November 2016 Seminar Percukaian Kebangsaan 2016
(d) Mr. Lee Seng Chiong 27th September 2016 Risk Management Briefing
15th November 2016 National Tax Seminar 2016
(e) Mr. Hii Kwong Wui 3rd November 2016 2017 Budget and Tax Conference
(f ) Mr. Bin Lay Thiam 29th November 2016 Asean Stars of the Next Decade 2016 Conference
Hong Kong
11th August 2016 Navigating Through Shifting Sands
13th January 2017 8th Annual Asean Conference
22nd February 2017 Corporate Training Business Sustainability
23rd February 2017 Trade Seminar 2017
5th April 2017 Sustainability Reporting Workshop for Practitioners
(g) Datuk Pau Chiong Ung 15th November 2016 National Tax Seminar 2016
(h) Datuk Ir. K. Zainal Abiding Bin A. Jalil 6th 7th April 2017 Mandatory Accreditation Programme (MAP)
Throughout the year, the Directors received updates and briefings, particularly on regulatory, industry and legal developments, risks
mitigation.
The External Auditors briefed the Board members on any changes to the Malaysian Financial Reporting Standards that would
affect the Groups financial statements during the financial year under review. The Directors continue to undergo relevant training
programmes to further enhance their skills and knowledge in the discharge of their stewardship role.
The Company Secretaries updates the Board Members on the relevant guidelines on statutory and regulatory requirements from
time to time.

contd
PRINCIPLE 5 UPHOLD INTEGRITY IN FINANCIAL REPORTING BY COMPANY
It is the Boards commitment to present a balanced and meaningful assessment of the Groups financial performance and prospects
at the end of each reporting period and financial year, primarily through the quarterly announcement of Groups results to Bursa
Securities, the annual financial statements of the Group and Company as well as the Group Managing Directors statement and
review of the Groups operations in the Annual Report, where relevant. A statement by the Directors of their responsibilities in the
preparation of financial statements is set out in the ensuing paragraph.
Statement of Directors Responsibility for Preparing Financial Statements
The Board is responsible to ensure that the financial statements are properly drawn up in accordance with the provisions of the
Companies Act, 2016, Malaysian Financial Reporting Standards and International Financial Reporting Standards so as to give a true
and fair view of the financial position of the Group as at the end of the financial year and of the financial performance and cash flows
of the Group for the financial year then ended.
The Directors are satisfied that in preparing the financial statements of the Group for the year ended 30 June 2017, the Group has
adopted suitable accounting policies and applied them consistently, prudently and reasonably. The Directors also consider that all
applicable approved accounting standards have been followed in the preparation of the financial statements, subject to any material
departures being disclosed and explained in the notes to the financial statements. The financial statements have been prepared on
the going concern basis.
The Directors are responsible for ensuring that the Group keeps sufficient accounting records to disclose with reasonable accuracy,
the financial position of the Group and which enable them to ensure that the financial statements comply with the Companies Act,
2016.
Audit Committee
In assisting the Board to discharge its duties on financial reporting, the Board has established an Audit Committee, comprising
wholly Independent Non-Executive Directors, with Mr Bin Lay Thiam as the Committee Chairman. The composition of the Audit
Committee, including its roles and responsibilities, are set out in the Audit Committee Report of this Annual Report. One of the
key responsibilities of the Audit Committee in its specific terms of reference is to ensure that the financial statements of the Group
and Company comply with applicable financial reporting standards in Malaysia. Such financial statements comprise the quarterly
financial report announced to Bursa and the annual statutory financial statements.
The Board is committed in upholding the integrity of the group financial reporting. The Audit Committee is responsible to assess,
evaluate and recommend the external auditors to ensure they are of the right calibre with professional ethic and integrity. The Audit
Committee also review on the types of non-audit services permitted to be provided by the external auditors of the Company so as
not to compromise their independence and objectivity.
In assessing the independence of external auditors, the Audit Committee will require written assurance by the external auditors,
confirming that they are, and have been, independent throughout the conduct of the audit engagement with the Company in
accordance with the independence criteria set out by the International Federation of Accountants and the Malaysian Institute of
Accountants.
Having satisfied itself with Messrs Ernst & Youngs performance, the Audit Committee will recommend their re-appointment to the
Board, upon which the shareholders approval will be sought at the AGM.

contd
PRINCIPLE 6 RECOGNISE AND MANAGE RISKS OF THE GROUP
The Board undertakes the responsibility for evaluating, reviewing and monitoring the vital enterprise risks that affect the business
and operations. The management has the on going process to manage and mitigate key businesses risk with the intent to
strengthen the risk management and internal control system as a whole.
The Groups in-house internal audit function is independent of the activities or operations of the Group. It undertakes regular
reviews of the adequacy and effectiveness of the Groups system of internal controls and risk management process, as well as
appropriateness and effectiveness of the corporate governance practices. The Internal Audit Function reports directly to the Audit
Committee. Further details on the internal audit function can be seen in the Audit Committee Report and the Statement on Risk
Management and Internal Control in this Annual Report.
PRINCIPLE 7 ENSURE TIMELY AND HIGH QUALITY DISCLOSURE
The Board is aware of the need to establish corporate disclosure policies and procedures to enable comprehensive, accurate and
timely disclosures relating to the Company and its subsidiaries to be made to the regulators, shareholders and stakeholders. On this
basis, the Board will formalize pertinent policies and procedures not only to comply with the disclosure requirements as stipulated
in the Listing Requirements of Bursa, but also setting out the persons authorised and responsible to approve and disclose material
information to regulators, shareholders and stakeholders.
To augment the process of disclosure, the Board will earmark a dedicated section for corporate governance on the Companys
website where information on the Companys announcements to the regulators, rights of shareholders and the Companys Annual
Report may be accessed.
PRINCIPLE 8 STRENGTHEN RELATIONSHIP BETWEEN THE COMPANY AND ITS SHAREHOLDERS
Shareholder participation at general meeting
The Annual General Meeting (AGM), which is the principal forum for shareholder dialogue, allows shareholders to review the
Groups performance via the Companys Annual Report and pose questions to the Board for clarification. At the AGM, shareholders
participate in deliberating resolutions being proposed or on the Groups operations in general.
The Notice of AGM is circulated at least twenty-one (21) days before the date of the meeting to enable shareholders to go through
the Annual Report and papers supporting the resolutions proposed. Shareholders are invited to ask questions both about the
resolutions being proposed before putting a resolution to vote as well as matters relating to the Groups operations in general.
All the resolutions set out in the Notice of the last AGM were voted by way of poll and duly passed. The outcome of the AGM was
announced to Bursa Securities on the same meeting day.
In line with the Listing Requirements of Bursa Securities, all resolutions tabled at general meeting will be voted by way of poll.
Communication and engagement with shareholders
The Board recognises the importance of being transparent and accountable to the Companys investors and, as such, has
various channels to maintain communication with them. The various channels of communications are through the quarterly
announcements on financial results to Bursa, relevant announcements and circulars, when necessary, the Annual and Extraordinary
General Meetings and through the Groups website at where shareholders can access pertinent information concerning the Group.
OTHER INFORMATION
NON-AUDIT FEES
Details of statutory audit, audit-related and non-audit fees paid/payable in the financial year ended 30 June 2017 to the external
auditors are set out below:-
Fees paid/payable to Messrs Ernst & Young (RM)

Description Company Subsidiary Total
Audit Fees 60,000 404,500 464,500

Non-Audit Fees 22,000 165,800 187,800
Total 82,000 570,300 652,300
Fees paid/payable to other auditors (SGD)

Description Company Subsidiary Total
Audit Fees - 21,150 21,150

Non-Audit Fees - - -
Total - 21,150 21,150
MATERIAL CONTRACTS
There were no material contracts entered into by the Group which involves directors and major shareholders interest during the
financial year.
AUDIT COMMITTEE REPORT
MEMBERS
Details of the composition of the Audit Committee and the attendance by each member at the Audit Committee meetings for the
financial year ended 30 June 2017 are as follows:
No. of
Meetings
Designation Name of Directors Directorship Attended
Chairman Bin Lay Thiam Independent Non-Executive Director 5/5

Member Datuk Pau Chiong Ung Independent Non-Executive Director 5/5
Member Datuk Ir. K. Zainal Abidin Bin A. Jalil Independent Non-Executive Director
(Appointed on 21 February 2017) 1/1
Member Dato Mohamed Salleh Bin Bajuri Independent Non-Executive Chairman
(Retired on 22 November 2016) 2/3
TERMS OF REFERENCE
The Terms of Reference for the Audit Committee can be viewed at the Groups website at www.harbour.com.my.
SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE
The activities undertaken by the Audit Committee were in accordance with the Terms of Reference that included the following:
Financial Reporting
Reviewed the quarterly and year end consolidated financial statements to ensure the Groups compliance with the Main
Market Listing Requirements of Bursa Malaysia, applicable approved accounting standards issued by Malaysian Accounting
Standards Board and other legal and regulatory requirements before recommending them for the Boards consideration and
approval.
Reviewed and assessed the appropriateness of the Groups accounting policies, adequacy of financial reporting and disclosure
requirements and reasonableness of judgments and projections made in connection with the preparation of the financial
statements.
External Audit
Considered the appointment of the external auditors and audit fees by evaluating the external auditors competence,
independence, objectivity and the scope of work to be conducted.
Reviewed the external auditors audit plan and areas of audit emphasis for financial year prior to the commencement of audit.
Reviewed and discussed the auditing issues, where applicable the impact of material adjustments and recommendations
arising from the final audit with the external auditors.
Met twice during the financial year with the external auditors without the presence of management and executive directors to
discuss issues of concern to the external auditors.
AUDIT COMMITTEE REPORT

contd
SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE contd
Internal Audit
Reviewed the competency of internal audit function including the processes, audit plan and resource requirements, as well
as the quarterly internal audit reports presented on the findings, recommendations and Managements responses thereto are
adequately addressed by Management.
Considered and approved the appointment of the outsourced professional service firm and their fees by evaluating their
competency, independence and performance.
Other Activities
Reviewed the related party transactions and any conflict of interest that may have arisen within the Group.
Reviewed the updated Risk Assessment Report of the Group.
Reviewed and recommended to the Board for approval the Audit Committee Report and Statement on Risk Management &
Internal Control for inclusion in the 2017 Annual Report.
SUMMARY OF ACTIVITIES OF THE INTERNAL AUDIT FUNCTION
The internal audit function is independent of the activities or operations of the Group. Its principle role is to provide reasonable
assurance that the Groups risk management and internal control system is sound and operating effectively. For the financial year
under review, the internal audit assignments were primarily performed by an outsourced professional service firm, in areas where
technical skills and resources are not available internally. The internal auditors adopt a risk-based approach towards the planning
and conduct of audits.
During the financial year under review, the internal auditors carried out the following activities:
Presented and obtained approval from the Audit Committee the Internal Audit Plan which sets out the internal audit work
expected to be carried out during the financial year.
Carried out the internal audit reviews in accordance with the approved Internal Audit Plan.
Presented the Internal Audit Reports to Audit Committee highlighting audit findings, recommendations to improve and
management responses at each quarter.
Performed follow up audits on these findings and update status to the Audit Committee.
The total costs incurred for the internal audit function of the Group for the financial year was approximately RM286,000.
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
Pursuant to paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Securities) and
as guided by the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers (the Guidelines),
the Board of Directors (the Board) is pleased to provide the following Statement on the main features and state of the Groups risk
management and internal control system.
RESPONSIBILITY
The Board recognizes the importance of maintaining sound risk management practices and internal control system to safeguard
shareholders investment and the Groups assets. The Board affirms its overall responsibility of reviewing the adequacy and
effectiveness of the risk management practices and the internal control system of the Group. In carrying out this responsibility, the
Board is assisted by the Audit Committee which is empowered by its terms of reference to ensure the adequacy and integrity of the
practices and system. This is done through reports to Audit Committee from the internal auditors on the internal control system,
independent financial audit and Management respectively. In addition, the Board has also received assurance from the Group
Managing Director and Financial Controller that the Groups risk management and internal control system are operating adequately
and effectively, in all material aspects.
Due to inherent limitations, the risk management and internal control system is designed to manage the Groups risks within
an acceptable risk appetite rather than eliminate the risk that may impede the achievement of the Groups business objectives.
Accordingly, it can only provide reasonable rather than absolute assurance against material misstatement, fraud or loss.
The Groups risk management process and internal control system does not apply to jointly controlled entity and associates where
the Group does not have full management control. The Groups interests are secured through Board representation at the jointly
controlled entities and associates representative and periodic review of the companies management accounts by the Management.
RISK MANAGEMENT
During the financial year, the Groups risk profile assessment process was conducted with the executive management and unit
heads, as facilitated by the appointed consultant. All divisions assessed and validated their existing risk profile as well as identified
new risks. The review also involved the formulation of risk responses to enhance the existing controls in mitigating these risks. The
results of this review were reported to the Audit Committee. In addition, the Groups existing risk management practice is being
reviewed with the view of enhancing the risk oversight and risk monitoring to be in line with the Malaysian Code of Corporate
Governance 2017.
The Groups principal significant risks identified are outlined below:
z Market risk
Market risk refers to the risks resulting from inherent external factors such as economic condition and competition. Weak
market sentiment both at the local and global economy may affect the overall business performance. Competition is also
expected to increase as the market continues to be volatile and changes in regulatory environment. The Group has various
measures in place, amongst others, maintaining good relationship with existing customers and ensuring consistent quality
of services. The Group manages the competition aspect by closely monitoring market trends on resources pricing, and have
plans to diversify the customer base to reduce the customers concentration risk.
z Operational risk
The Group has different business segments. The risk of lack of integration between these business segments in carrying out
the service delivery process may hamper operation that leads to unsatisfactory customer service. The Group addresses this risk
by scheduling interdepartmental/branch meetings. Ongoing customer feedback is also obtained to identify any potential gaps
in the process.
z Human capital risk

The Group faces a common challenge of low employee retention especially in the mid-level talent pool. This risk is more
prevalent in the Logistics Division due to small talent pool of experienced workforce specializing in this industry and
competitive benefits offered in the market. To mitigate the risk, Human Resource has implemented various remuneration and
staff benefit schemes to attract and retain employees to meet existing and future needs.

contd
RISK MANAGEMENT contd
Whilst the Board maintains ultimate control over risk and control issues, the management of risks in the daily business operations
is delegated to the executive management and unit heads. Significant risks that may affect the Groups business objectives are
continually monitored. The abovementioned risk management practice of the Group has been in place for the financial year under
review and up to the date of the approval of this Statement.
INTERNAL AUDIT FUNCTION
The Groups internal audit adopts a risk-based approach to provide assurance to the Board that the internal audit reviews conducted
addresses the Groups key risks areas and core businesses based on their risk profile.
The Group has its own in-house internal audit function that works closely with a professional service firm to carry out regular
internal audit reviews in accordance with the approved risk based internal audit plan. The internal audit team reports independently
and directly to the Audit Committee. The role of the internal audit in the Group includes the following:
z Regular and continuous review on the adequacy and effectiveness of the Groups internal controls;
z Highlight significant risks and non-compliance issues relating to procedures and operations that impact the Group; and
z Where applicable, provide recommendations to improve on the effectiveness of controls and operations and conduct follow-
up reviews to ensure that appropriate actions are being taken to address internal control weaknesses highlighted.
The results of internal audit reviews were discussed with the respective unit heads and subsequently, the audit findings including
recommendations for improvements were presented to the Audit Committee at their scheduled meetings. In addition, follow up
reviews were conducted to ensure that corrective actions have been implemented in a timely manner. A number of minor internal
control weaknesses were identified during the financial year, all of which have been or are being addressed. None of the weaknesses
have resulted in any material losses, contingencies or uncertainties that would require a separate disclosure in the Groups Annual
Report.
OTHER KEY ELEMENTS OF RISK MANAGEMENT & INTERNAL CONTROL
The other key elements of risk management and internal control systems that further support the maintenance of a strong risk
management and internal control environment in the Group are as follows:
z Audit Committee that comprises wholly independent non-executive directors and its activities undertaken during the financial
year under review are set out in the Audit Committee Report;
z Establishment of other Board Committees to assist the Board in providing independent oversight function, namely
Nomination Committee and Remuneration Committee with responsibilities and authorities clearly specified in their respective
terms of reference;
z Active participation by certain members of the Board in the day-to-day running of the operations and regular dialogues with
senior management on operational matters.
z Effective reporting system in generating timely financial information for Management review and decision making;
z An annual budgeting process where each businesses in the Group prepares its budget for the following financial year and the
budget is then reviewed by the Management after which the budget is submitted to the Board;
z Quarterly reviews of the performance and financial results of the Group by the Board;
z The Board is furnished with timely and detailed Board papers and is further briefed on all significant matters for their
consideration and deliberation;

contd
OTHER KEY ELEMENTS OF RISK MANAGEMENT & INTERNAL CONTROL contd
z Existence of limits of authority which provides for the approval of various transactions;
z Review and approval of all proposals relating to significant capital and investment acquisition by the Board;
z Adequate insurance coverage on major assets and transactions to prevent material losses and reduce contingent liabilities of
the Group;
z Organization structure with clearly defined lines of responsibility, delegation of authority and a process of hierarchical
reporting;
z Employment of qualified and capable work force;
z Established training and development plans to ensure staff are kept up to date with necessary competencies to carry out
their duties and responsibilities well; and
z Documented policies and standard operating procedures for key processes are updated from time to time in tandem with
changes to business environment or regulatory guidelines.
CONCLUSION
Overall, the Board is satisfied that the assessment and review process of the Groups businesses are in place to provide reasonable
assurance on the adequacy and effectiveness of the governance, risk and internal control system of the Group.
The Board and Management shall continue to review and implement measures to improve and strengthen the risk management
and internal control environment of the Group.
REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS
The external auditors have reviewed this Statement on Risk Management and Internal Control pursuant to the scope set out in
Recommended Practice Guide (RPG) 5 (Revised), Guidance for Auditors on Engagements to Report on the Statement on Risk
Management and Internal Control included in the Annual Report issued by the Malaysian Institute of Accountants (MIA) for
inclusion in the annual report of the Group for the year ended 30 June 2017, and reported to the Board that nothing has come
to their attention that cause them to believe that the statement intended to be included in the annual report of the Group, in all
material respects: has not been prepared in accordance with the disclosures required by paragraphs 41 and 42 of the Statement on
Risk Management and Internal Control: Guidelines for Directors of Listed Issuers, or is factually inaccurate.
RPG 5 does not require the external auditors to consider whether the Directors Statement on Risk Management and Internal Control
covers all risks and controls, or to form an opinion on the adequacy and effectiveness of the Groups risk management and internal
control system including the assessment and opinion by the Directors and management thereon. The report from the external
auditor was made solely for, and directed solely to the Board in connection with their compliance with the listing requirements of
Bursa Malaysia Securities Berhad and for no other purposes or parties. The external auditors do not assume responsibility to any
person other than the board of directors in respect of any aspect of this report.
This Statement has been approved by the Board on 16 October 2017 based on the recommendation of the Audit Committee.
FINANCIAL STATEMENTS
CONTENTS
33 Directors Report 44 Statements of Financial Position

38 Statement by Directors 46 Statements of Changes in Equity
38 Statutory Declaration 48 Statements of Cash Flows
39 Independent Auditors Report 51 Notes to the Financial Statements
43 Statements of Profit or Loss and Other 131 Notes to the Financial Statements
Comprehensive Income - Supplementary Information
DIRECTORS REPORT
The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the
Company for the financial year ended 30 June 2017.
PRINCIPAL ACTIVITIES
The principal activities of the Company are investment holding and provision of management services. The principal activities of
the subsidiaries are disclosed in Note 17 to the financial statements. There have been no significant changes in the nature of the
principal activities during the financial year.
RESULTS
Group Company
RM RM
Profit for the year 31,779,670 27,492,565
Attributable to:
Owners of the Company 28,634,467 27,492,565
Non-controlling interest 3,145,203 -
31,779,670 27,492,565
There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the financial
statements.
In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were not
substantially affected by any item, transaction or event of a material and unusual nature.
DIVIDENDS
The amount of dividends paid by the Company since 30 June 2016 were as follows:
In respect of the financial year ended 30 June 2016 as reported in the directors report of that year:
RM
First and final tax exempt (single-tier) dividend of 2% per share on 400,400,004 ordinary shares, declared on
29 August 2016 and paid on 7 December 2016. 8,008,000

At the forthcoming Annual General Meeting, the first and final tax exempt (single-tier) dividend in respect of the financial year
ended 30 June 2017, of 1.5% on 400,400,004 ordinary shares amounting to a dividend payable of RM6,006,000 (1.5 sen per ordinary
share) will be proposed for shareholders approval. The financial statements for the current financial year do not reflect this proposed
dividend. Such dividend, if approved by the shareholders, will be accounted for in equity as an appropriation of retained earnings in
the financial year ending 30 June 2018.
DIRECTORS REPORT
contd
DIRECTORS
The names of the directors of the Company in office since the beginning of the financial year to the date of this report are:
Yong Piaw Soon

Wong Siong Seh
Dato Toh Guan Seng
Lee Seng Chiong
Hii Kwong Wui
Bin Lay Thiam
Datuk IR. K. Zainal Abidin Bin A Jalil (Appointed on 21 February 2017)
Dato Mohamed Salleh Bin Bajuri (Retired on 22 November 2016)
Lau Sii Hin (Resigned on 30 March 2017)
The directors of the subsidiaries of the Company since the beginning of the financial year to the date of this report (not including
those directors listed above) are:
Alias @ Awg Alias Bin Timbang Ong Khoon Seng

Bo Jow Yung Pau Chong Dak
Choo Wai Tech Sandra Chan Lee Hung
Chung Lan Moi Sie Shwee Ing
Hooi Yen Peng Tan Tiong Pan
Kok Giot Huat Tang Kie Ung
Lau Chii Hung Ting Chiew Hook
Lee Koh Leng Wong Siau Chiin
Lim Sin Sang Wong Siik Hing
Lim Yan Peng Yong Leong Hua
Lui So Lai Yong Leong Mew
Mazali Bin Rajang Yong Lin Ing
Ngo Tai Huat
DIRECTORS BENEFITS
Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Company
was a party, whereby the directors might acquire benefits by means of acquisition of shares in or debentures of the Company or any
other body corporate.
Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefits
included in the aggregate amount of emoluments received or due and receivable by the director or the fixed salary of the full-
time employee of the Company as shown in Note 9 to the financial statements) by reason of a contract made by the Company or
a related corporation with any director or with a firm of which he is a member, or with a company in which he has a substantial
financial interest, except as disclosed in Note 37 to the financial statements.
The total amount of insurance premium effected for any director and officer of the Company as at the financial year end is NIL.
DIRECTORS REPORT
contd
DIRECTORS INTERESTS
According to the register of directors shareholdings, the interests of directors in office at the end of the financial year in shares and
options over share in the Company during the financial year were as follows:
Number of ordinary shares

01.07.2016 Acquired Sold 30.06.2017
Ordinary Shares of the Company:

Direct interest
Yong Piaw Soon 24,751,199 12,195,500 - 36,946,699
Wong Siong Seh 15,431,460 6,842,900 - 22,274,360
Dato Toh Guan Seng 5,060,000 - - 5,060,000
Lee Seng Chiong 3,042,600 720,000 - 3,762,600
Hii Kwong Wui 3,234,000 715,000 - 3,949,000
Deemed interest
Yong Piaw Soon 212,819,726 - - 212,819,726
Wong Siong Seh 212,819,726 - - 212,819,726

Number of
warrants
01.07.2016
and 30.06.2017
Warrants of the Company:

Direct Interest:
Yong Piaw Soon 3,495,549
Wong Siong Seh 2,073,820
Dato Toh Guan Seng 460,000
Lee Seng Chiong 276,600
Hii Kwong Wui 294,000
Deemed Interest:
Yong Piaw Soon 19,350,576
Wong Siong Seh 19,350,576
By virtue of their substantial interest in shares of the Company, Yong Piaw Soon and Wong Siong Seh are also deemed to be
interested in the shares of its subsidiaries to the extent the holding company has an interest.
DIRECTORS REPORT
contd
DIRECTORS REMUNERATION

Group Company
2017 2016 2017 2016
RM RM RM RM
Salaries and other emoluments 4,656,799 4,182,544 726,428 700,648

Fees and allowances 313,769 293,800 218,000 229,000
Contributions to defined contribution plans 573,263 518,228 87,769 84,538
Estimated money value of benefit-in-kind 24,425 24,425 - -
Total directors remuneration 5,568,256 5,018,997 1,032,197 1,014,186

Included in the analysis above is remuneration for directors of the Company and its subsidiaries in accordance with the
requirements of Companies Act 2016.
OTHER STATUTORY INFORMATION
(a) 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:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for
doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate provision had
been made for doubtful debts; and
(ii) to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in the
ordinary course of business had been written down to an amount which they might be expected so to realise.
(b) At the date of this report, the directors are not aware of any circumstances which would render:
(i) the amount written off for bad debts or the amount of the provision for doubtful debts in the financial statements of the
Group and of the Company inadequate to any substantial extent; and
(ii) the values attributed to the current assets in the financial statements of the Group and of the Company misleading.
(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence
to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.
(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financial
statements of the Group and of the Company which would render any amount stated in the financial statements misleading.
(e) 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 liability of the Group or of the Company which has arisen since the end of the financial year.
DIRECTORS REPORT
contd
OTHER STATUTORY INFORMATION contd
(f ) In the opinion of the directors:
(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve
months after the end of the financial year which will or may affect the ability of the Group or of the Company to meet
their obligations when they fall due; and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial
year and the date of this report which is likely to affect substantially the results of the operations of the Group or of the
Company for the financial year in which this report is made.
SIGNIFICANT EVENTS
Details of the significant events are disclosed in Note 17 to the financial statements.
AUDITORS
The auditors, Ernst & Young, have expressed their willingness to continue in office. Auditors remuneration are disclosed in Note 7 to
the financial statement.
INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its audit
engagement against claims by third parties arising from the auditor. No payment has been made to indemnify Ernst & Young during
or since the financial year.
Signed on behalf of the Board in accordance with a resolution of the directors dated 16 October 2017.

YONG PIAW SOON LEE SENG CHIONG
STATEMENT BY DIRECTORS
Pursuant to Section 251(2) of the Companies Act 2016
We, YONG PIAW SOON and LEE SENG CHIONG, being two of the directors of HARBOUR-LINK GROUP BERHAD, do hereby state
that, in the opinion of the directors, the accompanying financial statements set out on pages 43 to 130 are drawn up in accordance
with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies
Act 2016 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 30 June 2017
and of their financial performance and cash flows for the year then ended.
The supplementary information set out in Note 43 to the financial statements have been presented in accordance with directive
issued by Bursa Malaysia Securities Berhad 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.
Signed on behalf of the Board in accordance with a resolution of the directors dated 16 October 2017.
YONG PIAW SOON LEE SENG CHIONG
STATUTORY DECLARATION
Pursuant to Section 251(1)(b) of the Companies Act 2016
I, SANDRA CHAN LEE HUNG, being the officer primarily responsible for the financial management of HARBOUR-LINK GROUP
BERHAD, do solemnly and sincerely declare that the accompanying financial statements set out on pages 43 to131 are in my
opinion correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of
the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the

abovenamed SANDRA CHAN LEE HUNG at Bintulu
in the State of Sarawak on 16 October 2017
SANDRA CHAN LEE HUNG
Before me
LAU SONG TING

NO. Q100
COMMISSIONER FOR OATHS
BINTULU, SARAWAK
INDEPENDENT AUDITORS REPORT

To the Members of Harbour-Link Group Berhad - 592902-D
(Incorporated in Malaysia)
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Harbour-Link Group Berhad, which comprise the statements of financial position as
at 30 June 2017 of the Group and of the Company, and 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 year then ended, and notes to the financial
statements, including a summary of significant accounting policies, as set out on pages 43 to 130.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the
Company as at 30 June 2017, and of their financial performance and their cash flows for the year then ended in accordance with
Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act
2016 in Malaysia.
Basis for opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing.
Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial
statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Independence and other ethical responsibilities
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and
Practice) of the Malaysian Institute of Accountants (By-Laws) and the International Ethics Standards Board for Accountants Code of
Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the By-
Laws and the IESBA Code.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the Group and of the Company for the current year. These matters were addressed in the context of our audit of the
financial statements of the Group and of the Company as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that
context.
We have fulfilled the responsibilities described in the Auditors responsibilities for the audit of the financial statements section of our
report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond
to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including
the procedures performed to address the matters below, provide the basis of our audit opinion on the accompanying financial
statements.
Impairment assessment of trade receivables
As at 30 June 2017, the Group has trade receivables of RM120.5 million before allowance for impairment of RM9.4 million. The
determination as to whether a trade receivable is collectable involves management judgement. Specific factors management
considers include the age of the balance, location of customers, existence of disputes, recent historical payment patterns and any
other available information concerning the creditworthiness of counterparties. Management uses this information to determine
whether an allowance for impairment is required either for a specific transaction or for a customers balance overall.
We focused on this area because it requires a high level of management judgement and due to the materiality of the amounts
involved.
For specific impairment, we reviewed the subsequent receipts, settlement agreement, projected cash flows forecast and past
collections from long overdue debtors to ensure impairment has been provided adequately by the management.

contd
Report on the audit of the financial statements contd
Key audit matters contd
Impairment assessment of trade receivables contd
For the collective impairment calculations used by the management, we assessed the key assumptions and inputs used, including
the default rate and loss rate to satisfy ourselves that those assumptions and inputs used are reasonable, which are used in the
calculations as well as evaluating the methodology and judgements involved. For the key assumptions used in the calculations, we
challenged management to provide objective evidence that these assumptions were appropriate.
In assessing the appropriateness of the overall provision for impairment, we considered the consistency of managements
application of policy for recognising provisions with the prior year. Specifically we considered how much of prior years provisions
had been utilised for bad debt write offs during the year; and reversal of prior years provision amounts when a debt has been
collected.
Impairment assessment on property, plant and equipment Vessels
The Group is required to perform impairment test of non-current assets whenever there is an indication that the non-current
assets may be impaired by comparing the carrying amount with its recoverable amount. As disclosed in Note 13 to the financial
statements, included in property, plant and equipment of the Group at the reporting date were vessels with the net carrying amount
of RM64.9 million after cumulative impairment of RM8.0 million. The outlook of containers shipping industry remained challenging
during the year.
As disclosed in Note 13(e) to the financial statements, the Group has performed a review of the recoverable amount of their
vessels during the financial year. The review led to the recognition of further impairment loss of RM2.1 million for the vessels. The
recoverable amount was based on the fair value less costs of disposal. The fair values of vessels were determined based on the
valuation performed by independent ship valuer taking into consideration the type, size and age of the ships and the assumptions
that the ships are in good and seaworthy condition, to be transacted between willing buyer and willing seller. The carrying amount
of these vessels is significant to the audit due to the quantum and the estimation involved in determining their recoverable
amounts, and hence has been identified as a key audit matter.
As part of the audit:
l We evaluated the competence, capabilities and objectivity of the ship valuer;
l We obtained an understanding of the work performed by the ship valuer;
l We evaluated the appropriateness and adequacy of the valuation reports, including inquiry of the ship valuer, testing of
source data, reviewing the valuation reports and conclusion for the purpose of our audit;
l We assessed the adequacy of the disclosures in the financial statements in accordance with the requirements of MFRS 136.
Information other than the financial statements and auditors report thereon
The directors of the Company are responsible for the other information. The other information comprises the information included
in the annual report, but does not include the financial statements of the Group and of the Company and our auditors report
thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the
Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated.

contd
Information other than the financial statements and auditors report thereon contd
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial statements
The directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that
give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards
and the requirements of the Companies Act 2016 in Malaysia. The directors are also responsible for such internal control as the
directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements of the Group and of the Company, the directors are responsible for assessing the Groups and
the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or the Company or to cease operations,
or have no realistic alternative but to do so.
Auditors responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved
standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we
exercise professional judgement and maintain professional scepticism throughout the audit. We also:
l Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
l Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Groups and the Companys
internal control.
l Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
l Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Groups or the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditors report to the related disclosures in the financial statements of the Group and of
the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditors report. However, future events or conditions may cause the Group or the Company to
cease to continue as a going concern.

contd
Auditors responsibilities for the audit of the financial statements contd
l Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company,
including the disclosures, and whether the financial statements of the Group and of the Company represent the underlying
transactions and events in a manner that achieves fair presentation.
l Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Group to express an opinion on the financial statements of the Group. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the
financial statements of the Group and of the Company for the current year and are therefore the key audit matters. We describe
these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiaries of which we have not
acted as auditors, are disclosed in Note 17 to the financial statements.
Other reporting responsibilities
The supplementary information set out in Note 43 on page 131 is disclosed to meet the requirement of Bursa Malaysia Securities
Berhad and is not part of the financial statements. The directors are responsible for the preparation of the supplementary
information in accordance with Guidance on Special Matter No. 1, Determination of Realised and Unrealised 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 Malaysia Securities Berhad. In our opinion, the supplementary information
is prepared, in all material respects, in accordance with the MIA Guidance and the directive of Bursa Malaysia Securities Berhad.
Other matters
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies Act 2016 in
Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.
ERNST & YOUNG YONG VOON KAR

AF: 0039 1769/04/18 (J/PH)
Chartered Accountants Chartered Accountant
Kuching, Malaysia
16 October 2017
STATEMENTS OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME
For the Financial Year Ended 30 June 2017
Group Company
Note 2017 2016 2017 2016
RM RM RM RM
Revenue 4 525,745,860 590,764,421 32,091,126 44,908,175
Cost of sales (448,009,559) (454,203,546) - -

Gross profit 77,736,301 136,560,875 32,091,126 44,908,175
Other items of income

Other income 5 14,388,359 14,774,494 1,883,112 1,594,858
Other items of expense

Administrative and other expenses (41,693,886) (44,862,155) (4,636,355) (9,544,280)
Finance costs 6 (5,574,470) (5,799,921) (1,361,535) (1,243,510)
Share of result of associates 1,994,822 1,505,162 - -
Share of result of joint venture (99,702) (217,888) - -
Profit before tax 7 46,751,424 101,960,567 27,976,348 35,715,243
Income tax expense 10 (14,971,754) (30,102,638) (483,783) (738,826)

Profit net of tax 31,779,670 71,857,929 27,492,565 34,976,417
Other comprehensive income:

Other comprehensive income to be reclassified to
profit or loss in subsequent periods:
Share of associates other comprehensive income (38,658) - - -
Foreign currency translation, net of tax 21,843 1,049,905 - -
Other comprehensive income, net of tax (16,815) 1,049,905 - -
Total comprehensive income for the year 31,762,855 72,907,834 27,492,565 34,976,417
Profit attributable to:

Owners of the Company 28,634,467 56,198,349 27,492,565 34,976,417
Non-controlling interests 3,145,203 15,659,580 - -
31,779,670 71,857,929 27,492,565 34,976,417
Total comprehensive income attributable to:

Owners of the Company 28,617,652 57,248,254 27,492,565 34,976,417
Non-controlling interests 3,145,203 15,659,580 - -
31,762,855 72,907,834 27,492,565 34,976,417
Earnings per share attributable to owners of the

Company (sen per share)
Basic 11 7.15 14.04
Diluted 11 7.15 14.04

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
STATEMENTS OF FINANCIAL POSITION

As at 30 June 2017
Group Company
Note 2017 2016 2017 2016
RM RM RM RM
ASSETS
Non-current assets
Property, plant and equipment 13 219,600,825 207,929,227 6,093,106 6,592,443
Investment properties 14 5,302,716 9,062,903 - -
Prepaid land lease payments 15 6,134,967 6,012,323 - -
Land held for development 23(a) 46,146,427 43,941,575 - -
Intangible assets 16 105,000 105,000 - -
Investment in subsidiaries 17 - - 174,948,623 174,948,623
Investment in associates 18 6,737,181 5,019,044 1,466,200 1,466,200
Investment in joint venture 19 583,165 682,867 - -
Other investments 20 652,445 652,445 - -
Deferred tax assets 21 2,014,807 3,413,129 - -
287,277,533 276,818,513 182,507,929 183,007,266
Current assets
Inventories 22 30,192,346 33,180,141 - -
Trade and other receivables 24 130,990,485 144,081,916 69,578,623 66,659,522
Derivatives 25 969,356 - - -
Other current assets 26 39,967,004 11,226,760 762,426 1,171,696
Investment securities 28 41,910,745 26,264,410 - -
Cash and bank balances 29 76,011,075 97,508,831 2,499,925 2,312,573
320,041,011 312,262,058 72,840,974 70,143,791
Total assets 607,318,544 589,080,571 255,348,903 253,151,057

STATEMENTS OF FINANCIAL POSITION

As at 30 June 2017
contd
Group Company
Note 2017 2016 2017 2016
RM RM RM RM
Equity and liabilities
Current liabilities
Loans and borrowings 33 42,716,387 44,112,174 14,134,443 10,786,312
Trade and other payables 34 106,470,796 97,444,852 13,226,714 33,879,873
Other current liabilities 35 278,192 1,025,538 - -
Income tax payable 5,531,961 10,024,545 - -
154,997,336 152,607,109 27,361,157 44,666,185
Net current assets 165,043,675 159,654,949 45,479,817 25,477,606
Non-current liabilities
Deferred tax liabilities 21 16,823,049 15,446,320 52,519 28,782
Loans and borrowings 33 41,486,643 57,284,731 - 5,428
58,309,692 72,731,051 52,519 34,210
Total liabilities 213,307,028 225,338,160 27,413,676 44,700,395
Net assets 394,011,516 363,742,411 227,935,227 208,450,662
Equity attributable to owners of the Company

Share capital 30 200,200,002 200,200,002 200,200,002 200,200,002
Retained earnings 207,306,087 186,679,620 27,735,225 8,250,660
Other reserve 31 (62,944,880) (62,944,880) - -
Foreign currency translation reserve 32 2,656,934 2,673,749 - -
347,218,143 326,608,491 227,935,227 208,450,662

Non-controlling interest 46,793,373 37,133,920 - -
Total equity 394,011,516 363,742,411 227,935,227 208,450,662
Total equity and liabilities 607,318,544 589,080,571 255,348,903 253,151,057
STATEMENTS OF CHANGES IN EQUITY

Attributable to owners of the Company

Foreign Total equity
currency attributed Non -
Share Retained Other translation to owners of controlling Total
Note capital earnings reserve reserve the Company interests equity
Group RM RM RM RM RM RM RM
At 1 July 2016 200,200,002 186,679,620 (62,944,880) 2,673,749 326,608,491 37,133,920 363,742,411
Profit net of tax - 28,634,467 - - 28,634,467 3,145,203 31,779,670

Other comprehensive income - - - (16,815) (16,815) - (16,815)
Total comprehensive income - 28,634,467 - (16,815) 28,617,652 3,145,203 31,762,855
Capital contributed by
non-controlling interest in
subsidiaries - - - - - 6,868,000 6,868,000
Dividends 12 - (8,008,000) - - (8,008,000) - (8,008,000)
Dividend paid to
subsidiaries - - - - - (353,750) (353,750)
At 30 June 2017 200,200,002 207,306,087 (62,944,880) 2,656,934 347,218,143 46,793,373 394,011,516
At 1 July 2015 182,000,002 158,691,271 (62,944,880) 1,623,844 279,370,237 19,502,962 298,873,199
Profit net of tax - 56,198,349 - - 56,198,349 15,659,580 71,857,929

Other comprehensive income - - - 1,049,905 1,049,905 - 1,049,905
Total comprehensive income - 56,198,349 - 1,049,905 57,248,254 15,659,580 72,907,834
Capital contributed by
subsidiaries - - - - - 2,741,000 2,741,000
Dividends 12 - (10,010,000) - - (10,010,000) - (10,010,000)
Dividend paid to
subsidiaries - - - - - (769,622) (769,622)
Bonus issue of shares 18,200,000 (18,200,000) - - - - -
At 30 June 2016 200,200,002 186,679,620 (62,944,880) 2,673,749 326,608,491 37,133,920 363,742,411

STATEMENTS OF CHANGES IN EQUITY

contd
Share Retained Total

Note Capital Earnings Equity
Company RM RM RM
2017
At 1 July 2016 200,200,002 8,250,660 208,450,662
Total comprehensive income - 27,492,565 27,492,565

Dividends 12 - (8,008,000) (8,008,000)
At 30 June 2017 200,200,002 27,735,225 227,935,227
2016
At 1 July 2015 182,000,002 1,484,243 183,484,245
Total comprehensive income - 34,976,417 34,976,417

Bonus issue of shares 18,200,000 (18,200,000) -
Dividends 12 - (10,010,000) (10,010,000)
At 30 June 2016 200,200,002 8,250,660 208,450,662
STATEMENTS OF CASH FLOWS

Group Company
Note 2017 2016 2017 2016
RM RM RM RM
Operating activities
Profit before tax 46,751,424 101,960,567 27,976,348 35,715,243
Adjustments for:
Amortisation of prepaid land lease payments 7 139,570 136,075 - -

Allowance for impairment, net of reversal
- trade receivables 5 (5,754,129) (2,918,686) - -
- other receivables 7 - 2,378 - -
Bad debts written off 7 1,812,007 423,382 - -
Depreciation of property, plant and equipment 7 22,827,319 21,574,026 461,167 469,197
Dividend income 4 - - (30,260,026) (43,138,175)
Depreciation of investment properties 7 253,029 222,894 - -
Gain on disposal of investment properties 5 - (379,525) - -
Gain on disposal of investment in associates 5 (15,000) - - -
Gain on disposal of investment in subsidaries 5 (52,572) - - -
Gain on disposal of property, plant and
equipment, net 5, 7 (1,336,478) (823,091) (12,756) (6,293)
Gain in fair value for derivatives 5 (969,356) - - -
Impairment loss on property, plant and equipment 7 2,108,108 5,941,800 - -
Impairment loss on investment in subsidiaries 7 - - - 4,284,000
Interest expense 6 5,574,470 5,799,921 1,361,535 1,243,510
Interest income 5 (1,109,592) (1,046,611) (1,752,725) (1,359,761)
Property, plant and equipment written off 7 10,908 73,707 - -
Reversal of accruals of claims 5 - (3,261,037) - -
Share of result of associates (1,994,822) (1,505,162) - -
Share of result of joint venture 99,702 217,888 - -
Unrealised foreign exchange loss/(gain), net 5, 7 286,719 (477,264) - -
Total adjustments 21,879,883 23,980,695 (30,202,805) (38,507,522)

Operating cash flows before changes in working
capital 68,631,307 125,941,262 (2,226,457) (2,792,279)


contd
Group Company
Note 2017 2016 2017 2016
RM RM RM RM
Changes in working capital

Increase in land held for development (2,045,261) (247,537) - -
Decrease in development properties - 32,527,497 - -
Decrease in inventories 2,407,480 777,580 - -
Increase in trade and other receivables 16,751,387 (7,706,934) (2,919,101) (48,565,436)
(Increase)/decrease in other current assets (27,375,030) 1,708,107 391,777 (459,995)
Decrease/(increase) in trade and other payables 9,078,763 12,234,075 (20,653,159) 10,562,159
Decrease in other current liabilities (747,346) (84,892,975) - -
Total changes in working capital (1,930,007) (45,600,187) (23,180,483) (38,463,272)
Taxes paid, net of refund (16,689,259) (26,408,149) (442,553) (237,386)

Interest received 1,109,592 1,046,611 1,752,725 1,359,761
Interest paid (6,417,279) (6,165,428) (1,361,535) (1,243,510)
Net cash flows from/(used in) operating activities 44,704,354 48,814,109 (25,458,303) (41,376,686)
Investing activities
Dividends received 238,026 171,500 30,260,026 43,138,175

Net cash outflow from disposal of subsidiaries 17 (4,598) - - -
Proceeds from disposal of property, plant and
equipment 4,218,081 8,834,005 113,581 6,684
Proceeds from disposal of investment in associate 15,000 - - -
Purchase of investment securities, net of redemption (15,646,335) (17,993,995) - -
Proceeds from disposal of investment properties - 450,000 - -
Purchase of property, plant and equipment (25,873,968) (38,670,833) (62,655) (207,965)
Purchase of prepaid land lease payments (262,214) - - -
Net cash flows (used in)/from investing activities (37,316,008) (47,209,323) 30,310,952 42,936,894

contd
Group Company
Note 2017 2016 2017 2016
RM RM RM RM
Financing activities
Dividends paid to non-controlling interest in

subsidiaries (353,750) (769,622) - -
Dividends paid on ordinary shares (8,008,000) (10,010,000) (8,008,000) (10,010,000)
Capital contributed by non-controlling interest
in subsidiaries 6,868,000 2,741,000 - -
Decrease/(increase) in cash at bank pledged for
borrowings 2,801,941 (422,371) - -
Decrease/(increase) in short-term deposits pledged
for bank borrowings 730,760 568,562 (525,538) (424,400)
Proceeds from loans and borrowings 1,902,438 23,366,921 3,960,000 4,260,000
Repayment of loans and borrowings (17,305,947) (10,028,619) (519,514) (573,351)
Repayment of finance lease payables (12,499,742) (11,410,405) (188,045) (285,040)
Net cash flows used in financing activities (25,864,300) (5,964,534) (5,281,097) (7,032,791)
Net decrease in cash and cash equivalents (18,475,954) (4,359,748) (428,448) (5,472,583)
Effects of exchange rate changes on cash and

cash equivalents 21,166 1,135,619 - -
Cash and cash equivalents at 1 July 77,074,207 80,298,336 (5,139,085) 333,498
Cash and cash equivalents at 30 June 29 58,619,419 77,074,207 (5,567,533) (5,139,085)
NOTES TO THE FINANCIAL STATEMENTS

1. CORPORATE INFORMATION
The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Board
of Bursa Malaysia Securities Berhad. The registered office of the Company is located at Wisma Harbour, Parkcity Commerce
Square, Jalan Tun Ahmad Zaidi, 97000 Bintulu, Sarawak.
The principal activities of the Company are investment holding and provision of management services. The principal activities
of the subsidiaries are disclosed in Note 17 to the financial statements. There have been no significant changes in the nature of
the principal activities during the financial year.
The financial statements were authorised for issue in accordance with a resolution of the directors on 16 October 2017.
2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation
The financial statements of the Group and of the Company have been prepared in accordance with Malaysian Financial
Reporting Standards (MFRS), International Financial Reporting Standards and the requirements of the Companies Act
2016 in Malaysia.
The financial statements have been prepared on a historical cost basis except as disclosure in the accounting policies
below.
The financial statements are presented in Ringgit Malaysia (RM).
2.2 Changes in accounting policies
The accounting policies adopted are consistent with those of the previous financial year except as follows:
On 1 July 2016, the Group and the Company adopted the following new and amended MFRSs and Annual
Improvements which are mandatory for annual financial periods beginning on or after 1 January 2016.
Effective for
period
beginning on
Description or after
Annual Improvements to MFRSs 2012 - 2014 Cycle 1 January 2016

Amendments to MFRS 116 and MFRS 138: Clarification of Acceptable Methods of Depreciation
and Amortisation 1 January 2016
Amendments to MFRS 116 and MFRS 141: Agriculture: Bearer Plants 1 January 2016
Amendments to MFRS 11: Accounting for Acquisitions of Interests in Joint Operations 1 January 2016
Amendments to MFRS 127: Equity Method in Separate Financial Statements 1 January 2016
Amendments to MFRS 101: Disclosure Initiative 1 January 2016
Amendments to MFRS 10, MFRS 12 and MFRS 128: Investment Entities: Applying the Consolidation
Exception 1 January 2016
MFRS 14: Regulatory Deferral Accounts 1 January 2016
The directors expect that the adoption of the above standards and interpretations will have no material impact on the
financial statements in the period of initial application except as discussed below:


contd
2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES contd

2.2 Changes in accounting policies contd
(a) Annual Improvements to MFRSs 20122014 Cycle
The Annual Improvements to MFRSs 2012 - 2014 Cycle include a number of amendments to various MFRSs, which
are summarised below. These amendments do not have a significant impact on the Groups and the Companys
financial statements.
(i) MFRS 7: Financial Instruments - Disclosures
The amendment clarifies that a servicing contract that includes a fee can constitute continuing involvement
in a financial asset. An entity must assess the nature of the fee and arrangement against the guidance for
continuing involvement in MFRS 7 in order to assess whether the disclosures are required.
In addition, the amendment also clarifies that the disclosures in respect of offsetting of financial assets and
financial liabilities are not required in the condensed interim financial report.
(ii) MFRS 5: Non-current Assets Held for Sale and Discontinued Operations
The amendment to MFRS 5 clarifies that changing from one disposal method to the other should not be
considered to be a new plan of disposal, rather it is a continuation of the original plan. There is therefore no
interruption of the application of the requirements in MFRS 5.
The amendment also clarifies that changing the disposal method does not change the date of classification.
This amendment is applied prospectively.
(iii) MFRS 134: Interim Financial Reporting
The amendment states that the required interim disclosures must either be in the interim financial
statements or incorporated by cross-reference between the interim financial statements and wherever they
are included within the greater interim financial report (e.g., in the management commentary or risk report).
The other information within the interim financial report must be available to users on the same terms as
the interim financial statements and at the same time.
(b) Amendments to MFRS 116 and MFRS 138: Clarification of Acceptable Methods of Depreciation and
Amortisation
The amendments clarify that revenue reflects a pattern of economic benefits that are generated from operating a
business (of which the asset is part) rather than the economic benefits that are consumed through the use of an
asset. As a result, a revenue-based method cannot be used to depreciate property, plant and equipment and may
only be used in very limited circumstances to amortise intangible assets.
The amendments do not have any impact to the Group as the Group has not used a revenue-based method to
depreciate its non-current assets.

contd

2.2 Changes in accounting policies contd

(c) Amendments to MFRS 10, MFRS 12 and MFRS 128: Investment Entities - Applying the Consolidation
Exception
The amendments clarify that the exemption from presenting consolidated financial statements applies to a parent
entity that is a subsidiary of an investment entity, when the investment entity measures all of its subsidiaries
at fair value. The amendments further clarify that only a subsidiary that is not an investment entity itself and
provides support services to the investment entity is consolidated. In addition, the amendments also provides
that if an entity that is not itself an investment entity has an interest in an associate or joint venture that is an
investment entity, the entity may, when applying the equity method, retain the fair value measurement applied by
that investment entity associate or joint venture to the investment entity associates or joint ventures interests in
subsidiaries.
The amendments do not have any impact on the Groups financial statements as the Group does not apply the
consolidation exception.
(d) Amendments to MFRS 101: Disclosure Initiatives
The amendments to MFRS 101 include narrow-focus improvements in the following five areas:
l Materiality
l Disaggregation and subtotals
l Notes structure
l Disclosure of accounting policies
l Presentation of items of other comprehensive income arising from equity accounted investments
The amendments do not have any impact on the Groups and the Companys financial statements.
(e) Amendments to MFRS 127: Equity Method in Separate Financial Statements
The amendments will allow entities to use the equity method to account for investments in subsidiaries, joint
ventures and associates in their separate financial statements. Entities already applying MFRS and electing to
change to the equity method in its separate financial statements will have to apply this change retrospectively.
For first-time adopters of MFRS electing to use the equity method in its separate financial statements, they will be
required to apply this method from the date of transition to MFRS. These amendments do not have any impact on
the Groups and the Companys financial statements.
2.3 Amendments/standards issued but not yet effective
The amendments/standards issued but not yet effective up to the date of issuance of the Groups financial statements
are listed below. The Group and the Company intend to adopt these amendments/standards, if applicable, when they
become effective.
Effective for
period
beginning on
Amendments to MFRS 107: Disclosure Initiative 1 January 2017

Amendments to MFRS 112: Recognition of Deferred Tax Assets for Unrealised Losses 1 January 2017

contd
2.3 Amendments/standards issued but not yet effective contd
Effective for
period
beginning on
Annual Improvements to MFRS Standards 2014-2016 Cycle

(i) Amendments to MFRS 12: Disclosure of Interests in Other Entities 1 January 2017
(ii) Amendments to MFRS 1: First-time Adoption of Malaysian Financial Reporting Standards 1 January 2018
(iii) Amendments to MFRS 128: Investments in Associates and Joint Ventures 1 January 2018
Amendments to MFRS 2: Classification and Measurement of Share-based Payment Transactions 1 January 2018
Amendments to MFRS 140: Transfers of Investment Property 1 January 2018
MFRS 15: Revenue from Contracts with Customers 1 January 2018
MFRS 9: Financial Instruments 1 January 2018
IC Interpretation 22: Foreign Currency Transactions and Advance Consideration 1 January 2018
Amendments to MFRS 4: Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts 1 January 2018
MFRS 16: Leases 1 January 2019
IC Interpretation 23: Uncertainty over Income Tax Treatments 1 January 2019
Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture Deferred
(a) Amendments to MFRS 107: Disclosure Initiative
The amendments to MFRS 107 Statement of Cash Flows require an entity to provide disclosures that enable users
of financial statements to evaluate changes in liabilities arising from financing activities, including both changes
arising from cash flows and non-cash changes. On initial application of this amendment, entities are not required
to provide comparative information for preceding periods. These amendments are effective for annual periods
beginning on or after 1 January 2017, with early application permitted. Application of amendments will result in
additional disclosures to be provided by the Group and the Company.
(b) Amendments to MFRS 112: Recognition of Deferred Tax Assets for Unrealised Losses
The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits
against which it may make deductions on the reversal of that deductible temporary difference. Furthermore,
the amendments provide guidance on how an entity should determine future taxable profits and explain the
circumstances in which taxable profit may include the recovery of some assets for more than their carrying
amount.
Entities are required to apply the amendments retrospectively. However, on initial application of the amendments,
the change in the opening equity of the earliest comparative period may be recognised in opening retained
earnings (or in another component of equity, as appropriate), without allocating the change between retained
earnings and other components of equity. Entities applying this relief must disclose that fact.
These amendments are effective for annual periods beginning on or after 1 January 2017 with early application
permitted. If an entity applies this amendments for an earlier period, it must disclose that fact. The directors of the
Company do not anticipate that the application of these amendments will have a material impact on the Groups
and the Companys financial statements.

contd
2.3 Amendments/standards issued but not yet effective contd
(c) MFRS 15: Revenue from Contracts with Customers
MFRS 15 establishes a new five-step model that will apply to revenue arising from contracts with customers. MFRS
15 will supersede the current revenue recognition guidance including MFRS 118 Revenue, MFRS 111 Construction
Contracts and the related interpretations when it becomes effective.
The core principle of MFRS 15 is that an entity should recognise revenue which depicts the transfer of promised
goods or services to customers in an amount that reflects the consideration to which the entity expects to be
entitled in exchange for those goods or services.
Under MFRS 15, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when control
of the goods or services underlying the particular performance obligation is transferred to the customer.
Either a full or modified retrospective application is required for annual periods beginning on or after 1 January
2018 with early adoption permitted. The Group is currently assessing the impact of MFRS 15 and plans to adopt
the new standard on the required effective date.
(d) MFRS 9: Financial Instruments
In November 2014, MASB issued the final version of MFRS 9 Financial Instruments which reflects all phases of the
financial instruments project and replaces MFRS 139 Financial Instruments: Recognition and Measurement and
all previous versions of MFRS 9. The standard introduces new requirements for classification and measurement,
impairment and hedge accounting. MFRS 9 is effective for annual periods beginning on or after 1 January 2018,
with early application permitted. Retrospective application is required, but comparative information is not
compulsory. The adoption of MFRS 9 will have an effect on the classification and measurement of the Groups
financial assets, but no impact on the classification and measurement of the Groups financial liabilities.
(e) MFRS 16: Leases
MFRS 16 will replace MFRS 117 Leases, IC Interpretation 4 Determining whether an Arrangement contains a
Lease, IC Interpretation 115 Operating Lease-Incentives and IC Interpretation 127 Evaluating the Substance
of Transactions Involving the Legal Form of a Lease. MFRS 16 sets out the principles for the recognition,
measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single
on-balance sheet model similar to the accounting for finance leases under MFRS 117.
At the commencement date of a lease, a lessee will recognise a liability to make lease payments and an asset
representing the right to use the underlying asset during the lease term. Lessees will be required to recognise
interest expense on the lease liability and the depreciation expense on the right-of-use asset.
Lessor accounting under MFRS 16 is substantially the same as the accounting under MFRS 117. Lessors will
continue to classify all leases using the same classification principle as in MFRS 117 and distinguish between two
types of leases: operating and finance leases.
MFRS 16 is effective for annual periods beginning on or after 1 January 2019. Early application is permitted but not
before an entity applies MFRS 15. A lessee can choose to apply the standard using either a full retrospective or a
modified retrospective approach.

contd
2.4
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at
the reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated financial
statements are prepared for the same reporting date as the Company. Consistent accounting policies are applied for like
transactions and events in similar circumstances.
The Company controls an investee if and only if the Company has all the following:
(i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affect its returns.
When the Company has less than a majority of the voting rights of an investee, the Company considers the following in
assessing whether or not the Companys voting rights in an investee are sufficient to give it power over the investee:
(i) The size of the Companys holding of voting rights relative to the size and dispersion of holdings of the other vote
holders;
(ii) Potential voting rights held by the Company, other vote holders or other parties;
(iii) Rights arising from other contractual arrangements; and
(iv) 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.
Subsidiaries are consolidated when the Company obtains control over the subsidiary and ceases when the Company
loses control of the subsidiary. All intra-group balances, income and expenses and unrealised gains and losses resulting
from intra-group transactions are eliminated in full.
Losses within a subsidiary are attributed to the non-controlling interests even if that results in a deficit balance.
Changes in the Groups ownership interests in subsidiaries that do not result in the Group losing control over the
subsidiaries are accounted for as equity transactions. The carrying amounts of the Groups interests and the non-
controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. The resulting
difference is recognised directly in equity and attributed to owners of the Company.
When the Group loses control of a subsidiary, a gain or loss 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 and liabilities of the subsidiary and any non-controlling interests, is recognised in profit or loss.
The subsidiarys cumulative gain or loss which has been recognised in other comprehensive income and accumulated in
equity are reclassified to profit or loss or where applicable, transferred directly to retained earnings. The fair value of any
investment retained in the former subsidiary at the date control is lost is regarded as the cost on initial recognition of
the investment.

contd
2.4 Basis of consolidation contd
Business combinations
Acquisitions of subsidiaries are accounted for using the acquisition method. The cost of an acquisition is measured as
the aggregate of the consideration transferred, measured at acquisition date fair value and the amount of any non-
controlling interests in the acquiree. The Group elects on a transaction-by-transaction basis whether to measure the
non-controlling interests in the acquiree either at fair value or at the proportionate share of the acquirees identifiable
net assets. Transaction costs incurred are expensed and included in administrative expenses.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date.
Subsequent changes in the fair value of the contingent consideration which is deemed to be an asset or liability, will be
recognised in accordance with MFRS 139 either in profit or loss or as a change to other comprehensive income. If the
contingent consideration is classified as equity, it will not be remeasured. Subsequent settlement is accounted for within
equity. In instances where the contingent consideration does not fall within the scope of MFRS 139, it is measured in
accordance with the appropriate MFRS.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification
and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the
acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.
If the business combination is achieved in stages, the acquisition date fair value of the acquirers previously held equity
interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the
amount recognised for non-controlling interests over the net identifiable assets acquired and liabilities assumed. If this
consideration is lower than fair value of the net assets of the subsidiary acquired, the difference is recognised in profit or
loss.
Business combinations involving entities under common control
Business combinations involving entities under common control are accounted for by applying the pooling of interest
method. The assets and liabilities of the combining entities are reflected at their carrying amounts reported in the
consolidated financial statements of the controlling holding company. Any difference between the consideration paid
and the share capital of the acquired entity is reflected within equity as merger reserve. The statement of profit or loss
and other comprehensive income reflects the results of the combining entities for the full year, irrespective of when the
combination takes place. Comparatives are presented as if the entities had always been combined since the date the
entities had come under common control.
2.5 Subsidiaries
A subsidiary is an entity over which the Group has all the following:
(i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affect its returns.
In the Companys separate financial statements, investments in subsidiaries are accounted for at cost less impairment
losses. On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is
included in profit or loss.

contd
2.6 Investments in associates and joint ventures
An associate is an entity in which the Group has significant influence. Significant influence is the power to participate in
the financial and operating policy decisions of the investee but is not control or joint control over those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
On acquisition of an investment in associate or joint venture, any excess of the cost of investment over the Groups share
of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill and included in the
carrying amount of the investment. Any excess of the Groups share of the net fair value of the identifiable assets and
liabilities of the investee over the cost of investment is excluded from the carrying amount of the investment and is
instead included as income in the determination of the Groups share of the associates or joint ventures profit or loss for
the period in which the investment is acquired.
An associate or a joint venture is equity accounted for from the date on which the investee becomes an associate or a
joint venture.
Under the equity method, on initial recognition the investment in an associate or a joint venture is recognised at
cost, and the carrying amount is increased or decreased to recognise the Groups share of the profit or loss and other
comprehensive income of the associate or joint venture after the date of acquisition. When the Groups share of losses
in an associate or a joint venture equal or exceeds its interest in the associate or joint venture, the Group does not
recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the
associate or joint venture.
Profits and losses resulting from upstream and downstream transactions between the Group and its associate or joint
venture are recognised in the Groups financial statements only to the extent of unrelated investors interests in the
associate or joint venture. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of
the asset transferred.
The financial statements of the associates and joint ventures are prepared as of the same reporting date as the
Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group.
After application of the equity method, the Group applies MFRS 139 Financial Instruments: Recognition and
Measurement to determine whether it is necessary to recognise any additional impairment loss with respect to its net
investment in the associate or joint venture. When necessary, the entire carrying amount of the investment is tested for
impairment in accordance with MFRS 136 Impairment of Assets as a single asset, by comparing its recoverable amount
(higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss is recognised in
profit or loss. Reversal of an impairment loss is recognised to the extent that the recoverable amount of the investment
subsequently increases.
In the Companys separate financial statements, investments in associates and joint ventures are accounted for at
cost less impairment losses. On disposal of such investments, the difference between net disposal proceeds and their
carrying amounts is included in profit or loss.
2.7 Foreign currency
(a) 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 consolidated financial
statements are presented in Ringgit Malaysia (RM), which is also the Companys functional currency.

contd
2.7 Foreign currency contd
(a) Functional and presentation currency contd
Transactions in foreign currencies are measured in the respective functional currencies of the Company and its
subsidiaries and are recorded on initial recognition in the functional currencies at exchange rates approximating
those ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are
translated at the rate of exchange ruling at the reporting date. Non-monetary items denominated in foreign
currencies that are measured at historical cost are translated using the exchange rates as at the dates of the initial
transactions. Non-monetary items denominated in foreign currencies measured at fair value are translated using
the exchange rates at the date when the fair value was determined.
(b) Foreign currency transactions
Exchange differences arising on the settlement of monetary items or on translating monetary items at the
reporting date are recognised in profit or loss except for exchange differences arising on monetary items that form
part of the Groups net investment in foreign operations, which are recognised initially in other comprehensive
income and accumulated under foreign currency translation reserve in equity. The foreign currency translation
reserve is reclassified from equity to profit or loss of the Group on disposal of the foreign operation.
Exchange differences arising on the translation of non-monetary items carried at fair value are included in profit or
loss for the period except for the differences arising on the translation of non-monetary items in respect of which
gains and losses are recognised directly in equity. Exchange differences arising from such non-monetary items are
also recognised directly in equity.
(c) Foreign operations
The assets and liabilities of foreign operations are translated into RM at the rate of exchange ruling at the
reporting date and income and expenses are translated at exchange rates at the dates of the transactions. The
exchange differences arising on the translation are taken directly to other comprehensive income. On disposal of a
foreign operation, the cumulative amount recognised in other comprehensive income and accumulated in equity
under foreign currency translation reserve relating to that particular foreign operation is recognised in the profit or
loss.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and
liabilities of the foreign operations and are recorded in the functional currency of the foreign operations and
translated at the closing rate at the reporting date.
2.8 Property, plant and equipment and depreciation
All items of property, plant and equipment are initially recorded at cost. Subsequent costs are included in the assets
carrying amount or recognised as a 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 carrying
amount of the replaced part is derecognised. All other repairs and maintenance are charged to the profit or loss during
the financial period in which they are incurred.
Subsequent to recognition, property, plant and equipment except for freehold land are stated at cost less accumulated
depreciation and any accumulated impairment losses.

contd
2.8 Property, plant and equipment and depreciation contd
Freehold land has an unlimited useful life and therefore is not depreciated. Leasehold land is depreciated over the
remaining lease term. Incomplete capital expenditure are also not depreciated as these assets are not available for use.
Depreciation of other property, plant and equipment is provided for on a straight-line basis to write off the cost of each
asset to its residual value over the estimated useful life, at the following annual rates:
Buildings 2%
Plant, and machinery and containers 5% - 20%
Vessels and drydocking 5% - 50%
Motor vehicles 12.5% - 20%
Furniture, fittings and equipment and others 5% - 20%
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not be recoverable.
The residual values, useful life and depreciation method are reviewed at each financial year-end 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.
2.9 Investment properties
Investment properties comprises principally land and buildings held for long term rental yields or for capital
appreciation or both, and are not occupied by the Group. Investment properties are stated at cost less accumulated
depreciation and accumulated impairment.
Freehold land is not depreciated as it has infinite life. Leasehold land is depreciated over the remaining lease term.
Depreciation of investment properties is provided for on a straight-line basis to write off the cost of the investment
properties to its residual value over the estimated useful life, at the following annual rate:
Buildings 2%
On disposal of an investment property, or when it is permanently withdrawn from use and no future economic benefits
are expected from its disposal, it shall be derecognised. The difference between the net disposal proceeds and the
carrying amount is recognised in profit or loss in the period of the retirement or disposal.
Transfers are made to or from investment property only when there is a change in use. For a transfer from investment
property to owner-occupied property, the deemed cost for subsequent accounting is the carrying value at the date of
change in use. For a transfer from owner-occupied property to investment property, the property is accounted for in
accordance with the accounting policy for property, plant and equipment set out in Note 2.8 up to the date of change in
use.
2.10 Engineering contracts
Where the outcome of an engineering contracts can be estimated reliably, contract revenue and contract costs are
recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the
reporting date. The stage of completion is measured by reference to the proportion of contract costs incurred for work
performed to date to the estimated total contract costs.

contd
2.10 Engineering contracts contd
Where the outcome of a construction contract cannot be reliably estimated, contract revenue is recognised to the extent
of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses in the period
in which they are incurred.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an
expense immediately.
Contract revenue comprises the initial amount of revenue agreed in the contract and variations in contract work, claims
and incentive payments to the extent that it is probable that they will result in revenue and they are capable of being
reliably measured.
When costs incurred on construction contracts plus recognised profits (less recognised losses) exceeds progress billings,
the balance is classified as amount due from customers on contracts. When progress billings exceed costs incurred plus
recognised profits (less recognised losses), the balance is classified as amount due to customers on contracts.
2.11 Borrowing costs
Borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly attributable to the acquisition,
construction or production of that asset. Capitalisation of borrowing costs commences when the activities to prepare
the asset for its intended use or sale are in progress and the expenditures and borrowing costs are incurred. Borrowing
costs are capitalised until the assets are substantially completed for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period they are incurred. Borrowing costs consist of
interest and other costs that the Group and the Company incurred in connection with the borrowing of funds.
2.12 Leases
A lease is an agreement whereby the lessor conveys to the lessee in return for a payment, or series of payments, the
right to use an asset for an agreed period of time.
(a) As lessee
Finance leases

Leases of property, plant and equipment where the Group assumes substantially all the risks and rewards of
ownership are classified as finance leases.
Finance leases are capitalised at the lower of the fair value of the leased assets and the estimated present value
of the underlying lease payments at the date of inception. Each lease payment is allocated between the liability
and finance charges so as to achieve a periodic constant rate of interest on the lease principal outstanding. The
corresponding rental obligations, net of finance charges, are included in borrowings. The interest element of the
finance charge is charged to profit and 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 contracts is depreciated over the useful life of
the assets. If there is no reasonable certainty that the ownership will be transferred to the Group, the asset is
depreciated over the shorter of the lease term and its useful life.
Operating leases

Leases of assets where a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Payments made under operating leases are charged to profit or loss over the lease
period.


contd
2.12 Leases contd
(b) As lessor
Finance leases

Leases of assets where the lessee assumes substantially all the risks and rewards of ownership are classified as
finance leases.
When assets are leased out under a finance lease, the present value of the lease payments is recognised as a
receivable. The difference between the gross receivable and the present value of the receivable is recognised as
unearned finance income. Lease income is recognised over the term of the lease using the net investment method
so as to reflect a constant periodic rate of interest on the balance outstanding.
Operating leases
Assets leased out under operating leases are included in property, plant and equipment in the statement of
financial position. They are depreciated over their useful lives on bases consistent with similar owned property,
plant and equipment. Rental income (net of any incentives given to lessees) is recognised on a straight-line basis
over the lease term.
2.13 Prepaid land lease payments
Prepaid land lease payments are initially measured at cost. Following initial recognition, prepaid land lease payments are
measured at cost less accumulated amortisation and accumulated impairment losses. The prepaid land lease payments
are amortised over their lease terms ranging from 30 to 50 years.
2.14 Income taxes
(a) Current tax
The income tax expense for the period comprises current and deferred tax. Tax is recognised in profit and loss,
except to the extend that it relates to items recognised in other comprehensive income or directly in equity. In this
case the tax is also recognised in other comprehensive income or directly in equity, respectively.
Current tax expense is determined according to the tax laws of each jurisdiction in which the Group operates and
includes all taxes based upon the taxable profits, including withholding taxes payable by a foreign subsidiary,
associate or jointly controlled entity on distributions of retained earnings to companies in the Group.
(b) Deferred tax
Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all temporary differences, except:
- where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in
a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
- in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences will not reverse in the foreseeable future.

contd
2.14 Income taxes contd
(b) Deferred tax contd
Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits
and unused tax losses, to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be
utilised except:
- where the deferred tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; and
- in respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which
the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is
no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be
utilised. 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 allow the deferred tax assets to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the
asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively
enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax
items are recognised in correlation to the underlying transaction either in other comprehensive income or directly
in equity and deferred tax arising from a business combination is adjusted against goodwill on acquisition.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.
(c) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except:
- Where the amount of GST incurred in a purchase of assets or services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the
expense item as applicable; and
- Receivables and payables that are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the statements of financial position.


contd
2.15
Employee benefits

Defined contribution plans
Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into
separate entities or funds and will have no legal or constructive obligation to pay further contributions if any of the
funds do not hold sufficient assets to pay all employee benefits relating to employee services in the current and
preceding financial years. Such contributions are recognised as an expense in the profit or loss as incurred. As required
by law, companies in Malaysia make such contributions to the Employees Provident Fund (EPF).
2.16 Cash and cash equivalents
For the purposes of the cash flow statements, cash and cash equivalents include cash on hand and at bank and short-
term deposits with a maturity of three months or less, net of outstanding bank overdrafts.
2.17 Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the
revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is
recognised:
(a) Revenue from services
Transportation and forwarding services, management services, labour supply, rental services are recognised on an
accrual basis when services have been rendered.
(b) Engineering contracts
Revenue from engineering contracts is accounted for using the stage of completion method as described in Note
2.10 to the financial statements.
(c)
Sales of goods

Revenue is recognised net of discounts and upon transfer of significant risks and rewards of ownership to the
buyer. Revenue is not recognised to the extent where there are significant uncertainties regarding recovery of the
consideration due, associated costs or the possible return of goods.
(d) Interest income
Interest income is recognised using the effective interest method.
(e) Management fees
Management fees are recognised when services are rendered.
(f) Dividend income
Dividend income is recognised when the Groups right to receive payment is established.
(g) Rental income
Rental income is accounted for on a straight-line basis over the lease terms. The aggregate costs of incentives
provided to lessees are recognised as a reduction of rental income over the lease term on a straight-line basis.

contd
2.17 Revenue recognition contd
(h)
Development properties

(i) Sale of completed development property
A development property is regarded as sold when the significant risks and rewards have been transferred to
the buyer, which is normally on unconditional exchange of contracts. For conditional exchanges, sales are
recognised only when all the significant conditions are satisfied.
(ii) Sale of development property under construction
Where development property is under construction and agreement has been reached to sell such property
when construction is complete, the directors consider whether the contract comprises:
- Where a contract is judged to be for the construction of a property, revenue is recognised using the
percentage of completion method as construction progresses.
- Where the contract is judged to be for the sale of a completed property, revenue is recognised when
the significant risks and rewards of ownership of the real estate have been transferred to the buyer (i.e.
revenue is recognised using the completed contract method).
If, however, the legal terms of the contract are such that the construction represents the continuous transfer
of work in progress to the purchaser, the percentage of completion method of revenue recognition is
applied and revenue is recognised as work progresses.
In the above situation, the percentage of work completed is measured based on the costs incurred up until
the end of the reporting periods as a proportion of total costs expected to be incurred.
2.18 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 the
categories include financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments
and available-for-sale financial assets.
(a) Financial assets at fair value through profit or loss
Financial assets are classified as financial assets at fair value through profit or loss if they are held for trading or are
designated as such upon initial recognition. Financial assets held for trading are derivatives (including separated
embedded derivatives) or financial assets acquired principally for the purpose of selling in the near term.
Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at fair value.
Any gains or losses arising from changes in fair value are recognised in profit or loss. Net gains or net losses on
financial assets at fair value through profit or loss do not include exchange differences, interest and dividend
income. Exchange differences, interest and dividend income on financial assets at fair value through profit or loss
are recognised separately in profit or loss as part of other losses or other income.

contd
2.18 Financial assets contd
(a) Financial assets at fair value through profit or loss contd
Financial assets at fair value through profit or loss could be presented as current or non-current. Financial assets
that is held primarily for trading purposes are presented as current whereas financial assets that is not held
primarily for trading purposes are presented as current or non-current based on the settlement date.
The Group does not have financial assets designated at fair value through profit or loss during the financial year.
(b) 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.
(c) Held-to-maturity investments
Financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when
the Group has the positive intention and ability to hold the investment to maturity.
Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost using the effective
interest method. Gains and losses are recognised in profit or loss when the held-to-maturity investments are
derecognised or impaired, and through the amortisation process.
Held-to-maturity investments are classified as non-current assets, except for those having maturity within 12
months after the reporting date which are classified as current.
(d) Available-for-sale financial assets
Available-for-sale financial assets are financial assets that are designated as available for sale or are not classified in
any of the three preceding categories.
After initial recognition, available-for-sale financial assets are measured at fair value. Any gains or losses
from changes in fair value of the financial assets are recognised in other comprehensive income, except that
impairment losses, foreign exchange gains and losses on monetary instruments and interest calculated using the
effective interest method are recognised in profit or loss.
The cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to
profit or loss as a reclassification adjustment when the financial asset is derecognised. Interest income calculated
using the effective interest method is recognised in profit or loss. Dividends on an available-for-sale equity
instrument are recognised in profit or loss when the Group and the Companys right to receive payment is
established.
Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less
impairment loss.

contd
2.18 Financial assets contd
(d) Available-for-sale financial assets contd
Available-for-sale financial assets are classified as non-current assets unless they are expected to be realised within
12 months after the reporting date.
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 or 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.
2.19 Impairment of financial assets
The Group and the Company assess at each reporting date whether there is any objective evidence that a financial asset
is impaired.
(a) Trade and other receivables and other financial assets carried at amortised cost
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.
(b) Unquoted equity securities carried at cost
If there is objective evidence (such as significant adverse changes in the business environment where the issuer
operates, probability of insolvency or significant financial difficulties of the issuer) that an impairment loss on
financial assets carried at cost has been incurred, the amount of the loss is measured as the difference between
the assets carrying amount and the present value of estimated future cash flows discounted at the current market
rate of return for a similar financial asset. Such impairment losses are not reversed in subsequent periods.

contd
2.19 Impairment of financial assets contd
(c) Available-for-sale financial assets
Significant or prolonged decline in fair value below cost, significant financial difficulties of the issuer or obligor,
and the disappearance of an active trading market are considerations to determine whether there is objective
evidence that investment securities classified as available-for-sale financial assets are impaired.
If an available-for-sale financial asset is impaired, an amount comprising the difference between its cost (net of any
principal payment and amortisation) and its current fair value, less any impairment loss previously recognised in
profit or loss, is transferred from equity to profit or loss.
Impairment losses on available-for-sale equity investments are not reversed in profit or loss in the subsequent
periods. Increase in fair value, if any, subsequent to impairment loss is recognised in other comprehensive income.
For available-for-sale debt investments, impairment losses are subsequently reversed in profit or loss if an increase
in the fair value of the investment can be objectively related to an event occurring after the recognition of the
impairment loss in profit or loss.
2.20 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 statement of financial position when, and only
when, the Group and the Company become a party to the contractual provisions of the financial instrument. Financial
liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities.
(a) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities held for trading include derivatives entered into by the Group and the Company that do not
meet the hedge accounting criteria. Derivative liabilities are initially measured at fair value and subsequently
stated at fair value, with any resultant gains or losses recognised in profit or loss. Net gains or losses on derivatives
include exchange differences.
The Group and the Company have not designated any financial liabilities as at fair value through profit or loss.
(b) Other financial liabilities
The Groups and the Companys other financial liabilities include trade payables, other payables and loans and
borrowings.
Trade and other payables are recognised initially at fair value plus directly attributable transaction costs and
subsequently measured at amortised cost using the effective interest method.
Loans and borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently
measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities
unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date.
For other financial liabilities, gains and losses are recognised in profit or loss when the liabilities are derecognised,
and through the amortisation process.

contd
2.20 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.
2.21 Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such
indication exists, or when an annual impairment assessment for an asset is required, the Group makes an estimate of the
assets recoverable amount.
An assets recoverable amount is the higher of an assets fair value less costs to sell and its value in use. For the purpose
of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows
(cash-generating units (CGU)).
In assessing value in use, the estimated future cash flows expected to be generated by the asset are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset. Where the carrying amount of an asset exceeds its recoverable amount, the asset is written
down to its recoverable amount. Impairment losses recognised in respect of a CGU or groups of CGUs are allocated
first to reduce the carrying amount of any goodwill allocated to those units or groups of units and then, to reduce the
carrying amount of the other assets in the unit or groups of units on a pro-rata basis.
Impairment losses are recognised in profit or loss except for assets that are previously revalued where the revaluation
was taken to other comprehensive income. In this case the impairment is also recognised in other comprehensive
income up to the amount of any previous revaluation.
An assessment is made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. A previously recognised impairment loss is reversed only
if there has been a change in the estimates used to determine the assets recoverable amount since the last impairment
loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That
increase cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment
loss been recognised previously. Such reversal is recognised in profit or loss unless the asset is measured at revalued
amount, in which case the reversal is treated as a revaluation increase. Impairment loss on goodwill is not reversed in a
subsequent period.
2.22 Segment reporting
For management purposes, the Group is organised into operating segments based on their products and services which
are independently managed by the respective segment managers responsible for the performance of the respective
segments under their charge. The segment managers report directly to the management of the Company who regularly
review the segment results in order to allocate resources to the segments and to assess the segment performance.
Additional disclosures on each of these segments are shown in Note 41, including the factors used to identify the
reportable segments and the measurement basis of segment information.
2.23 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.
Contingent liabilities and assets are not recognised in the statement of financial position of the Group.

contd
2.24 Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the
obligation can be estimated reliably.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer
probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the
effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage
of time is recognised as a finance cost.
2.25 Share capital and share issuance expenses
An equity instrument is any contract that evidences a residual interest in the assets of the Group and the Company after
deducting all of its liabilities. Ordinary shares are 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.
2.26 Inventories
(a)
Property inventory

Property acquired or being constructed for sale in the ordinary course of business, rather than to be held for rental
or capital appreciation, is held as inventory and is measured at the lower of cost and net realisable value.
Costs includes:

- Freehold and leasehold rights for land
- Amount paid to contractors for construction
- Borrowing costs, planning and design costs, costs of site preparation, professional fees for legal services,
property transfer taxes, construction overheads and other related costs
Non-refundable commissions paid to sales or marketing agents on the sale of real estate units are expensed when
paid.
Net realisable value is the estimated selling price in the ordinary course of the business, based on market prices
at the reporting date and discounted for the time value of money if material, less costs to completion and the
estimated costs of sale.
The cost of inventory recognised in profit or loss on disposal is determined with reference to the specific costs
incurred on the property sold and an allocation of any non-specific costs based on the relative size of the property
sold.
Land held for development are property inventory which consists of land where no development activities have
been carried out or where development activities are not expected to be completed within the normal operating
cycle, and are hence classified within non-current assets. Land held for development is reclassified to current
property inventory at the point when development activities have commenced and where it can be demonstrated
that the development activities can be complete within normal operating cycle.

contd
2.26 Inventories contd
(b)
Maintenance consumables

Maintenance consumables are stated at lower of cost and net realisable value. Cost is determined on a first-in first-
out basis.
2.27 Intangible assets
(a)
Goodwill

Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less accumulated
impairment losses.
For the purpose of impairment testing, goodwill acquired is allocated, from the acquisition date, to each of the
Groups cash-generating units that are expected to benefit from the synergies of the combination.
The cash-generating unit to which goodwill has been allocated is tested for impairment annually and whenever
there is an indication that the cash-generating unit may be impaired, by comparing the carrying amount of the
cash-generating unit, including the allocated goodwill, with the recoverable amount of the cash-generating unit.
Where the recoverable amount of the cash-generating unit is less than the carrying amount, an impairment loss is
recognised in the profit or loss. Impairment losses recognised for goodwill are not reversed in subsequent periods.
Where goodwill forms part of a cash-generating unit and part of the operation within that cash-generating
unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount
of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this
circumstance is measured based on the relative fair values of the operations disposed of and the portion of the
cash-generating unit retained.
(b) Other intangible assets
Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired in a
business combination is their fair value as at the date of acquisition. Following initial acquisition, intangible assets
are measured at cost less any accumulated amortisation and accumulated impairment losses.
Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for impairment
whenever there is an indication that the intangible asset may be impaired. The amortisation period and the
amortisation method are reviewed at least at each financial year-end. Changes in the expected useful life or the
expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing
the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The
amortisation expense on intangible assets with finite lives is recognised in profit or loss.
Intangible assets with indefinite useful lives or not yet available for use are tested for impairment annually, or
more frequently if the events and circumstances indicate that the carrying value may be impaired either
individually or at the cash-generating unit level. Such intangible assets are not amortised. The useful life of an
intangible asset with an indefinite useful life is reviewed annually to determine whether the useful life assessment
continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective
basis.
Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired in a
business combination is their fair value as at the date of acquisition. Following initial acquisition, intangible assets
are measured at cost less any accumulated amortisation and accumulated impairment losses.

contd
2.27 Intangible assets contd
(b) Other intangible assets contd
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognised in profit or loss when the asset is
derecognised.
Club membership
Club membership was acquired separately and is carried at cost less accumulated impairment losses.
2.28 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,
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.
As at reporting date, no values are placed on corporate guarantees provided by the Company to secure bank loans
and other banking facilities granted to its subsidiaries where such loans and banking facilities are fully collateralised by
fixed and floating charges over the property, plant and equipment and other assets of the subsidiaries and where the
directors regard the value of the credit enhancement provided by the corporate guarantees is minimal.
2.29 Fair value measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible to by the Group and the Company. The fair value of
an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participants ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.
The Group and the Company use valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

contd
2.29 Fair value measurements contd
All assets and liabilities for which fair values are measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurements as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group and the Company
determine whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Group and the Company have determined classes of assets and liabilities
on the basis of nature, characteristics and risks of the assets or liabilities and the level of the fair value hierarchy as
explained above.
3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparation of the Groups financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the
reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a
material adjustment to the carrying amount of the asset or liability affected in the future.
3.1 Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year are discussed below.
(a) Impairment of loans and receivables
The Group assesses at each reporting date whether there is any objective evidence that a financial asset is
impaired. To determine whether there is objective evidence of impairment, the Group considers factors such as
the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in
payments.
Where there is objective evidence of impairment, the amount and timing of future cash flows are estimated based
on historical loss experience for assets with similar credit risk characteristics. The carrying amount of the Groups
loans and receivables at the reporting date is disclosed in Note 24.
(b) Impairment of property, plant and equipment Vessels
Impairment exists when the carrying value of an asset exceeds its recoverable amount, which is higher of its
fair value less costs to sell and its value in use. During the financial year, the Group has performed review of the
recoverable value of their vessels and led to recognition of impairment loss of RM2.1 million. The recoverable
amount was based on fair value less costs to sell. The Group engaged independent ship valuer to determine fair
values. The key assumptions used to determine the fair value of the vessels are further explained in Note 13.

contd
4. REVENUE
Revenue of the Group and of the Company consists of the following:
Group Company
2017 2016 2017 2016
RM RM RM RM
Shipping, forwarding and transportation 419,028,854 384,989,312 - -

Engineering works 34,709,505 58,505,338 - -
Supply and hire of equipment 57,184,596 44,987,329 - -
Dividend income from
- associates - - 118,026 171,500
- subsidiaries - - 30,142,000 42,966,675
Management fees 6,000 - 1,176,600 1,116,000
Maintenance services 1,643,058 976,616 - -
Rental income 4,925,658 6,939,036 654,500 654,000
Sale of properties 8,248,189 94,361,790 - -
Others - 5,000 - -
525,745,860 590,764,421 32,091,126 44,908,175

5.
OTHER INCOME

Group Company
2017 2016 2017 2016
RM RM RM RM
Dividend income from investment in securities 447,393 95,632 - -

Gain on disposal of investment properties - 379,525 - -
Gain on disposal of property, plant and equipment 1,342,897 2,094,603 12,756 6,293
Gain on disposal of investment in associates 15,000 - - -
Gain on disposal of investment in subsidiaries (Note 17) 52,572 - - -
Gain in fair value for derivatives 969,356 - - -
Interest income 1,109,592 1,046,611 77,300 86,426
Interest received from subsidiaries - - 1,675,425 1,273,335
Management fee received 544,575 541,930 - -
Reversal of allowance for impairment on trade
receivables (Note 24) 5,754,129 2,918,686 - -
Reversal of accrual of claims - 3,261,037 - -
Rental income 249,276 468,722 41,304 41,304
Realised foreign exchange gain 851,869 779,843 - -
Unrealised foreign exchange gain 120,937 915,507 - -
Sundry income 2,930,763 2,272,398 76,327 187,500
14,388,359 14,774,494 1,883,112 1,594,858


contd
6. FINANCE COSTS

Group Company
2017 2016 2017 2016
RM RM RM RM
Interest expense on:

Interest bearing bank borrowings 4,158,102 3,972,220 63,411 59,612
Bankers acceptance interest 428,950 194,542 - -
Interest paid to subsidiaries - - 1,294,076 1,164,773
Obligation under finance lease 1,830,227 1,998,666 4,048 19,125
6,417,279 6,165,428 1,361,535 1,243,510
Less: Interest capitalised into:
- Land held for development (Note 23) (842,809) - - -
- Development properties (Note 23) - (365,507) - -
5,574,470 5,799,921 1,361,535 1,243,510
7. PROFIT BEFORE TAX
The following items have been included in arriving at profit before tax:
Group Company
2017 2016 2017 2016
RM RM RM RM
Employee benefits expense (Note 8) 56,404,293 51,136,881 3,749,610 2,741,563

Non-executive directors remuneration (Note 9) 180,000 185,500 180,000 185,500
Amortisation of prepaid land lease payments (Note 15) 139,570 136,075 - -
Auditors remuneration
- current year 506,958 457,888 50,000 45,000
- underprovision in prior years 1,000 6,735 - -
Allowance for impairment
- other receivables - 2,378 - -
Bad debts written off 1,812,007 423,382 - -
Depreciation of property, plant and equipment (Note 13) 22,827,319 21,574,026 461,167 469,197
Depreciation of investment properties (Note 14) 253,029 222,894 - -
Hiring of equipment 16,123,853 8,134,476 30,863 -
Impairment loss on property, plant and equipment
(Note 13) 2,108,108 5,941,800 - -
Impairment loss on investment in subsidiaries - - - 4,284,000
Loss on disposal of property, plant and equipment 6,419 1,271,512 - -
Property, plant and equipment written off 10,908 73,707 - -
Realised foreign exchange loss 684,108 1,411,731 - -
Rental of premises 1,644,691 2,664,406 50,400 75,633
Unrealised foreign exchange loss 407,656 438,243 - -

contd
8. EMPLOYEE BENEFITS EXPENSE
Group Company
2017 2016 2017 2016
RM RM RM RM
Salaries and wages 42,927,100 38,958,621 2,367,377 2,215,197

Allowances 3,105,052 2,652,105 14,496 11,553
Bonus 2,854,821 3,078,603 185,710 203,292
Contributions to defined contribution plan and social
security contributions 5,477,118 4,696,732 329,830 311,521
Other benefits 1,188,005 1,750,820 - -
55,552,096 51,136,881 2,897,413 2,741,563
Included in employee benefits expense of the Group and of the Company are executive directors remuneration amounting to
RM3,108,622 (2016: RM3,050,934) and RM852,197 (2016: RM828,686) respectively.
9. DIRECTORS REMUNERATION
The details of remuneration receivable by directors of the Group and of the Company during the year are as follows:
Group Company
2017 2016 2017 2016
RM RM RM RM
Executive:
Salaries and other emoluments 2,547,676 2,470,125 708,560 678,060
Bonus 227,900 255,613 55,868 66,088
Contributions to defined contribution plan and social
security contributions 333,046 325,196 87,769 84,538
Total executive directors remuneration (excluding

benefits-in-kind) 3,108,622 3,050,934 852,197 828,686
Estimated money value of benefits-in-kind 13,925 13,925 - -
Total executive directors remuneration (including

benefits-in-kind) 3,122,547 3,064,859 852,197 828,686
Non-executive directors remuneration:

Allowance 30,000 35,000 30,000 35,000
Fees 150,000 150,500 150,000 150,500
Total non-executive directors remuneration (Note 7) 180,000 185,500 180,000 185,500
Total directors remuneration (Note 37(b)) 3,302,547 3,250,359 1,032,197 1,014,186


contd
9. DIRECTORS REMUNERATION contd
The number of directors of the Company whose total remuneration during the financial year fell within the following bands is
analysed below:
Number of Directors
2017 2016
Executive directors:
RM800,001-RM850,000 1 1
RM700,001-RM750,000 1 -
RM650,001-RM700,000 - 1
RM500,001-RM550,000 1 1
RM350,001-RM400,000 2 2
RM300,001-RM350,000 - 1
RM250,001-RM300,000 1 -
Non-executive directors:
Below RM50,000 2 -
RM50,001-RM100,000 2 3

10. INCOME TAX EXPENSE
The major components of income tax expense for the years ended 30 June 2017 and 2016 are:
Group Company
2017 2016 2017 2016
RM RM RM RM
Current income tax:

Malaysian income tax 11,926,085 23,433,229 437,736 410,117
Foreign income tax 190,731 - - -
Under provision in prior years 79,859 455,725 22,310 356,727
12,196,675 23,888,954 460,046 766,844
Deferred income tax (Note 21):

Relating to origination and reversal of temporary
differences 2,487,176 6,118,234 (57,719) (28,018)
Under provision in prior years 287,903 95,450 81,456 -
2,775,079 6,213,684 23,737 (28,018)
Total income tax recognised in profit or loss 14,971,754 30,102,638 483,783 738,826

contd
10. INCOME TAX EXPENSE contd
Domestic income tax is calculated at the Malaysian statutory tax rate of 24% of the estimated assessable profit for the year. Tax
for other jurisdictions is calculated at the rates prevailing in the respective jurisdiction. The corporate tax rate applicable to the
Singapore subsidiaries of the Group is 17%.
A reconciliation of income tax expense applicable to profit before tax at the statutory income tax rate to income tax expense
at the effective tax rate of the Group and of the Company are as follows:
Group

2017 2016
RM RM
Profit before tax 46,751,424 101,960,567
Tax at Malaysian statutory tax rate of 24% 11,220,342 24,470,536

Different tax rate in other countries (286,834) 48,141
Expenses not deductible for tax purposes 5,223,401 3,926,921
Income not subject to tax (1,862,213) (1,133,514)
Deferred tax assets not recognised during the year 1,509,652 2,445,387
Utilisation of previously unrecognised unutilised tax losses and unabsorbed capital
allowances (1,200,356) (206,008)
Under provision of tax expense in prior years 79,859 455,725
Under provision of deferred tax in prior years 287,903 95,450
Income tax expense for the year 14,971,754 30,102,638
Company

2017 2016
RM RM
Tax at Malaysian statutory tax rate of 24% 6,714,324 8,571,658

Expenses not deductible for tax purposes 944,245 2,163,603
Income not subject to tax (7,278,552) (10,353,162)
Under provision of tax expense in prior years 22,310 356,727
Under provision of deferred tax in prior years 81,456 -
Income tax expense for the year 483,783 738,826


contd
11. EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing profit for the year, net of tax, attributable to owners of the
Company by the weighted average number of ordinary shares outstanding during the financial year.
The following tables reflect the profit and share data used in the computation of basic and diluted earnings per share for the
years ended 30 June :
Group
2017 2016
RM RM
Profit net of tax attributable to owners of the Company used in the computation of basic
earnings per share 28,634,467 56,198,349
Weighted average number of ordinary shares in issue 400,400,004 400,400,004
Basic earnings per share (sen) 7.15 14.04
Diluted earnings per share (sen) 7.15 14.04

The dilutive earnings per share is similar to the basic earnings per share as the assumed conversion from the exercise of warrants would be anti
dilutive. There is no dilution in earnings per share for the previous financial year as there are no potential ordinary shares outstanding at the
end of the reporting period.

12. DIVIDENDS
Group and Company

2017 2016
RM RM
Recognised during the year:
Dividends on ordinary shares
First and final single-tier dividend in respect of 2016: 2.0 sen per share 8,008,000 -
First and final single-tier dividend in respect of 2015: 5.5 sen per share - 10,010,000
Proposed but not recognised as a liability as at 30 June:
Dividends on ordinary shares, subject to shareholders approved at the AGM:
First and final tax exempt single-tier dividend in respect of 2017: 1.5 sen (2016: 2.0 sen)
per share 6,006,000 8,008,000
At the forthcoming Annual General Meeting, the first and final tax exempt (single-tier) dividend in respect of the financial
year ended 30 June 2017, of 1.5% on 400,400,004 ordinary shares amounting to a dividend payable of RM6,006,000 (1.5
sen per ordinary share) will be proposed for shareholders approval. The financial statements for the current financial year
do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in equity as an
appropriation of retained earnings in the financial year ending 30 June 2018.

contd
13. PROPERTY, PLANT AND EQUIPMENT
Plant and Furniture,

Machinery Fittings, Construction
* Land and and Motor Equipment, Work-in-
Buildings Containers Vessels Vehicles and Others Progress Total
At 30 June 2017
Cost
At 1 July 2016 46,951,378 191,525,402 108,848,382 17,484,320 15,836,818 1,364,398 382,010,698
Refund of land premium (190,793) - - - - - (190,793)
Additions 9,003,317 15,487,535 8,742,369 733,742 1,471,350 846,091 36,284,404
Disposals of subsidiaries - - - (76,561) (41,532) - (118,093)
Transfer from investment
properties (Note 14) 5,156,959 - - - - 5,156,959
Transfer from inventories 580,315 - - - - - 580,315
Reclassification 2,200,169 (4,800) (134,270) - 139,070 (2,200,169) -
Disposals/written off - (4,358,736) (3,237,650) (444,877) (485,316) - (8,526,579)
Exchange difference - 2,620 - - 4,910 - 7,530
At 30 June 2017 63,701,345 202,652,021 114,218,831 17,696,624 16,925,300 10,320 415,204,441
Accumulated depreciation
At 1 July 2016 5,553,061 100,988,907 42,139,799 12,436,467 12,963,237 - 174,081,471
Depreciation charge for the
year 663,260 13,115,586 7,552,090 1,709,298 1,152,299 - 24,192,533
Recognised in profit or loss
(Note 7) 586,952 11,932,551 7,552,090 1,659,988 1,095,738 - 22,827,319
Capitalised in construction
contracts (Note 27) 76,308 1,183,035 - 49,310 56,561 - 1,365,214
Disposals of subsidiaries - - - (76,560) (41,331) - (117,891)
Impairment of assets (Note 7) - - 2,108,108 - - - 2,108,108
Transfer from investment
properties (Note 14) 966,583 - - - - - 966,583
Reclassification - (2,760) (122,059) - 124,819 - -
Disposals/written off - (2,562,534) (2,321,125) (444,872) (305,537) - (5,634,068)
At 30 June 2017 7,182,904 111,541,817 49,356,813 13,624,333 13,897,749 - 195,603,616
Net carrying amount 56,518,441 91,110,204 64,862,018 4,072,291 3,027,551 10,320 219,600,825

contd
13. PROPERTY, PLANT AND EQUIPMENT contd
Plant and Furniture,

Machinery Fittings, Construction
* Land and and Motor Equipment, Work-in-
Buildings Containers Vessels Vehicles and Others Progress Total
At 30 June 2016
Cost
At 1 July 2015 39,448,463 190,362,812 88,267,003 16,822,038 14,122,963 349,681 349,372,960
Additions 7,399,244 6,865,600 27,373,685 1,735,452 1,734,771 1,364,397 46,473,149
Transfer from development
properties (Note 23) 893,246 - - - - - 893,246
Disposals/written off (1,139,255) (5,237,157) (7,116,914) (1,073,170) (231,567) - (14,798,063)
At 30 June 2016 46,951,378 191,525,402 108,848,382 17,484,320 15,836,818 1,364,398 382,010,698
At 1 July 2015 4,956,773 92,549,505 30,554,838 11,554,516 12,028,531 - 151,644,163
Depreciation charge for the
year 596,288 12,914,531 6,608,542 1,891,892 1,042,576 - 23,053,829
Recognised in profit or loss

(Note 7) 519,980 11,745,239 6,608,542 1,714,150 986,115 - 21,574,026
Capitalised in construction
contracts (Note 27) 76,308 1,169,292 - 177,742 56,461 - 1,479,803
Impairment of assets (Note 7) - - 5,941,800 - - - 5,941,800

Reclassification - (181,993) 121,925 - 60,068 - -
Disposals/written off - (4,301,369) (1,087,306) (1,009,941) (143,396) - (6,542,012)
Exchange difference - 8,233 - - (24,542) - (16,309)
At 30 June 2016 5,553,061 100,988,907 42,139,799 12,436,467 12,963,237 - 174,081,471
Net carrying amount 41,398,317 90,536,495 66,708,583 5,047,853 2,873,581 1,364,398 207,929,227

contd
*Land and buildings of the Group
Freehold Leasehold Building-in-

Land Land Buildings Progress Total
RM RM RM RM RM
At 30 June 2017
Cost
At 1 July 2016 10,104,310 4,656,595 22,986,632 9,203,841 46,951,378
Refund of land premium - (190,793) - - (190,793)
Additions - - 6,595,811 2,407,506 9,003,317
Transfer from investment properties - 5,156,959 - - 5,156,959
Transfer from inventories - - 580,315 - 580,315
Reclassification - 107,128 10,638,322 (8,545,281) 2,200,169
At 30 June 2017 10,104,310 9,729,889 40,801,080 3,066,066 63,701,345
At 1 July 2016 - 1,125,679 4,427,382 - 5,553,061
Depreciation charge for the year - 59,647 603,613 - 663,260
Transfer from investment properties - 966,583 - - 966,583
At 30 June 2017 - 2,151,909 5,030,995 - 7,182,904
Net carrying amount 10,104,310 7,577,980 35,770,085 3,066,066 56,518,441
At 30 June 2016
Cost
At 1 July 2015 9,763,270 4,656,595 21,172,335 3,856,263 39,448,463
Additions - - 701,960 6,697,284 7,399,244
Transfer from development properties - - 893,246 - 893,246
Reclassification 341,040 - 1,358,346 (1,349,706) 349,680
Exchange differences - - (1,139,255) - (1,139,255)
At 30 June 2016 10,104,310 4,656,595 22,986,632 9,203,841 46,951,378
At 1 July 2015 - 1,034,986 3,921,787 - 4,956,773
Depreciation charge for the year - 90,693 505,595 - 596,288
At 30 June 2016 - 1,125,679 4,427,382 - 5,553,061
Net carrying amount 10,104,310 3,530,916 18,559,250 9,203,841 41,398,317


contd
Furniture,
Fittings and
Land and Motor Equipment
Buildings Vehicles and Others Total
Company RM RM RM RM
At 30 June 2017
Cost
At 1 July 2016 6,482,834 1,512,437 1,723,084 9,718,355
Additions - - 62,655 62,655
Disposals/written off - - (123,937) (123,937)
At 30 June 2017 6,482,834 1,512,437 1,661,802 9,657,073
At 1 July 2016 1,000,258 957,001 1,168,653 3,125,912
Depreciation charge for the year (Note 7) 129,657 203,667 127,843 461,167
Disposals/written off - - (23,112) (23,112)
At 30 June 2017 1,129,915 1,160,668 1,273,384 3,563,967
Net carrying amount 5,352,919 351,769 388,418 6,093,106
At 30 June 2016
Cost
At 1 July 2015 6,482,834 1,620,093 1,527,866 9,630,793
Additions - - 207,965 207,965
Disposals/written off - (107,656) (12,747) (120,403)
At 30 June 2016 6,482,834 1,512,437 1,723,084 9,718,355
At 1 July 2015 870,601 860,989 1,045,137 2,776,727
Depreciation charge for the year (Note 7) 129,657 203,667 135,873 469,197
Disposals/written off - (107,655) (12,357) (120,012)
At 30 June 2016 1,000,258 957,001 1,168,653 3,125,912
Net carrying amount 5,482,576 555,436 554,431 6,592,443
(a)
During the financial year, the Group acquired property, plant and equipment at aggregate costs of RM36,284,404 (2016:
RM46,473,149) of which RM10,219,643 (2016: RM7,802,316) were acquired by means of hire purchase and finance
lease arrangements.


contd
(b) Net carrying amount of property, plant and equipment under hire purchase and finance lease arrangements are as
follows:
Group Company
2017 2016 2017 2016
RM RM RM RM
Motor vehicles 1,490,318 3,040,974 18,966 555,437

Plant and machinery and equipment 41,839,149 39,220,341 - -
43,329,467 42,261,315 18,966 555,437
Details of the terms and conditions of the hire purchase and finance lease arrangements are disclosed in Note 36(c).
(c) The net carrying amount of property, plant and equipment pledged for loans and borrowings as referred in Note 33.
Group Company
2017 2016 2017 2016
RM RM RM RM
Buildings 9,645,970 11,675,598 - 5,482,576

Freehold land 10,054,310 10,054,310 - -
Leasehold land 9,200,608 901,111 - -
Plant and machinery 3,738,134 4,259,734 - -
Vessels 36,236,993 56,061,147 - -
68,876,015 82,951,900 - 5,482,576
(d) The title of the short leasehold land of the Group and of the Company with the carrying value of RM6,659,133 (2016: RM
6,968,747) and RM5,352,919 (2016: RM5,482,576) respectively have yet to be issued by the authority.
(e) The Group has performed a review of the recoverable amount of their vessels during the financial year. The review led to
the recognition of net impairment loss of RM2,108,108 (2016: RM5,941,800) for the Group, as disclosed in Note 7.
The recoverable amount was based on the fair value less costs of disposal. The fair values of vessels were determined
based on the valuation performed by independent ship valuers taking into consideration the type, size and age of the
ships and the assumptions that the ships are in good and seaworthy condition, to be transacted between willing buyer
and willing seller.
The fair value measurement was categorised as a Level 3 fair value based on inputs in the valuation technique used as
defined in Note 2.29.

contd
14. INVESTMENT PROPERTIES
Group
2017 2016
RM RM
Cost
At 1 July 10,871,124 11,228,312

Transfer from land held for development (Note 23) 683,218 -
Transfer to property, plant and equipment (Note 13) (5,156,959) -
Disposal - (357,188)
At 30 June 6,397,383 10,871,124
Accumulated depreciation and impairment
At 1 July 1,808,221 1,872,040

Depreciation for the year (Note 7) 253,029 222,894
Transfer to property, plant and equipment (Note 13) (966,583) -
Disposal - (286,713)
At 30 June 1,094,667 1,808,221
Net carrying amount 5,302,716 9,062,903
Fair value of the investment properties 10,417,000 19,855,000
Investment properties with aggregate carrying value of RM2,515,195 (2016: RM8,496,597) are under pledge for securities for
borrowings as disclosed in Note 33. Investment properties comprise a number of commercial properties leased to third parties.
As at 30 June 2017 and 2016, the fair values of the properties are based on directors valuation.
Group
2017 2016
RM RM
Rental income from investment properties 360,000 391,935

Direct operating expenses generating rental income (36,641) (123,404)
Direct operating expenses that did not generate rental income (2,771) (7,047)

contd
15. PREPAID LAND LEASE PAYMENTS
Group
2017 2016
RM RM
Cost
At 1 July 6,806,895 6,806,895

Additions 262,214 -
At 30 June 7,069,109 6,806,895
Accumulated amortisation
At 1 July 794,572 658,497

Amortisation for the year (Note 7) 139,570 136,075
At 30 June 934,142 794,572
Net carrying amount 6,134,967 6,012,323
Prepaid land lease payments with aggregate carrying value of RM5,236,129 (2016: RM4,171,000) are under pledge for
securities for borrowings as disclosed in Note 33.
16. INTANGIBLE ASSETS
Group
Transferable Club
Membership
2017 2016
RM RM
Cost
At 1 July 2015/2016 and 30 June 2016/2017 140,000 140,000
Accumulated impairment losses
At 1 July 2015/2016 and 30 June 2016/2017 35,000 35,000
Net carrying amount 105,000 105,000


contd
17. INVESTMENTS IN SUBSIDIARIES
Company
2017 2016
RM RM
Unquoted shares at cost 179,332,623 179,332,623

Accumulated impairment losses (4,384,000) (4,384,000)
174,948,623 174,948,623
(a) Details of the subsidiaries are as follows:
% of ownership
% of ownership interest held by
Country of interest held by non-controlling
Name of Subsidiaries Incorporation Principal Activities Group interest
2017 2016 2017 2016
% % % %
Harbour-Link (M) Sdn. Bhd. Malaysia Management services and 100 100 - -
(HLM)* investment holding
Harbour Agencies (Sarawak) Malaysia Shipping and forwarding 100 100 - -

Sdn. Bhd. (HAS)*
Eastern Soldar Engineering Malaysia Investment holding, 100 100 - -

& Construction Sdn. Bhd. multi-discipline
(ESEC)* engineering and
procurement
Harbour-Link Navigation Malaysia Investment holding 100 100 - -

Sdn. Bhd. (HLN)*
Harbour-Link Lines Malaysia Port and shipping agency 85 85 15 15

Sdn. Bhd. (HLLines)* services, freight forwarder
and maritime services
HLG Resources Sdn. Bhd. Malaysia Investment holding, 100 100 - -

(HLG Resources)* agriculture and property
development
HLG Petroleum Sdn. Bhd. Malaysia Investment holding and 100 100 - -
(HLG Petroleum)* trading in petroleum and
petrochemical products
Harbour Hornbill Sdn. Bhd.* Malaysia Ship owning and ship 80 80 20 20

management
Harbour Ivory Sdn. Bhd.*

Ship owning and ship Malaysia 80 80 20 20
operator services


contd
17. INVESTMENTS IN SUBSIDIARIES contd
(a) Details of the subsidiaries are as follows: contd
% of ownership
2017 2016 2017 2016
% % % %
Arcadia Properties Malaysia Investment holding 51 51 49 49

Sdn. Bhd. (APSB)*
Subsidiaries of HLM
A.T Dunia (Btu) Sdn. Bhd.* Malaysia Forwarding and 100 100 - -
transportation
HLG Engineering Sdn. Bhd.* Malaysia Consultancy services and 70 70 30 30

provision of engineering
works
Harbour Services Malaysia Hiring, stevedoring, 100 100 - -

Corporation Sdn. Bhd.* transportation and sales of
pallets
Harbour-Link Logistics Malaysia Hiring and transportation 100 100 - -

Sdn. Bhd.(HLLogistics)*
Progresif Lengkap Sdn. Bhd. Malaysia Road safety, training - 100 - -

(PLSB)* Note (c) and consultancy and
transportation
Harbour Services Malaysia Forwarding and 47 47 53 53

Sdn. Bhd. * Note (a) transportation
Harbour-Link (Labuan) Malaysia Dormant 100 100 - -

Limited*
Harbour Agencies Malaysia Shipping 100 100 - -

Sdn. Bhd.*
Harbour Services (Miri) Malaysia Dormant 100 100 - -

Sdn. Bhd.*
Harbour-Link Leasing Malaysia Leasing 100 100 - -

Sdn. Bhd.*
Best Success Bonded Store Malaysia Provision of storage facilities 60 60 40 40

Supply Sdn. Bhd. *
Serimaju Konsortium Malaysia Heaping and transportation 55 55 45 45

Sdn. Bhd.*


contd
% of ownership
2017 2016 2017 2016
% % % %
Subsidiaries of HLM contd
Harbour-Link Forwarders Malaysia Provision of logistic and 70 - 30 -

Sdn. Bhd. * Note (b)(iii) agencies services
Subsidiary of PLSB
Road Safety & Driving Malaysia Dormant - 100 - -

Academy Sdn. Bhd.*
Note (c)
Subsidiaries of HLLogistics
Harbour-Link Logistics (S) Malaysia 100 100 - -

Hiring of equipments and
Sdn. Bhd.*
machinery and provision of
transportation services
Siong Jaya Sdn. Bhd.* Malaysia 100 100 - -
Subsidiary of HAS
Harbour Agencies (Sabah) Malaysia Shipping and forwarding 100 100 - -

Sdn. Bhd.*
Union Star Shipping Singapore Shipping services 100 - - -

Pte. Ltd.** Note (b)(iv)
Subsidiaries of ESEC
ESE Energy Sdn. Bhd.* Malaysia Civil engineering and 100 100 - -
ancillary works
Eastern Soldar (Singapore) Singapore Provision of civil, mechanical 100 100 - -

Pte. Ltd.** and engineering works,
construction and
procurement
ESEC (Cambodia) Pte. Ltd.** Cambodia Dormant 100 100 - -
Subsidiaries of HLN
Harbour Eagle Sdn. Bhd.* Malaysia 100 100 - -

Ship owning and ship
Harbour Challenger Malaysia management 100 100 - -
Sdn. Bhd.*


contd
% of ownership
2017 2016 2017 2016
% % % %
Subsidiaries of HLN contd
Satun Shipping Sdn. Bhd.* Malaysia 100 100 - -
Harbour Gemini Sdn. Bhd.* Malaysia 52 52 48 48
Harbour Services (Kuching) Malaysia 100 100 - -

Sdn. Bhd.*
Harbour Agencies (Sibu) Malaysia 100 100 - -

Sdn. Bhd.* Ship owning and ship
management
Navasco Shipping Malaysia 100 100 - -
Sdn. Bhd.*
Harbour Xtra Sdn. Bhd.* Malaysia 100 100 - -
Harbour Ruby Sdn. Bhd.* Malaysia 85 85 15 15
Harbour Zenith Sdn. Bhd.* Malaysia 85 85 15 15
Harbour-Link Shipping Malaysia Ship management 100 100 - -

Sdn. Bhd.*
Harbour-Link Marine Malaysia Ship management and 100 100 - -

Services Sdn. Bhd.* consultancy services
Subsidiary of HLG Resources
HLG Equipment Sdn. Bhd.* Malaysia 60 60 40 40

Provision of port related
Harbour-Link Trading Singapore services 100 100 - -
Pte. Ltd.**
Subsidiary of HLG
Equipment Sdn. Bhd.
HLG Equipment (B) Brunei Provision of port related 99 - 1 -

Sdn. Bhd.** Note (b)(v) Darussalam services


contd
% of ownership
2017 2016 2017 2016
% % % %
Subsidiaries of HLLines
Harbour-Link Lines (JB) Malaysia 70 70 30 30

Sdn. Bhd.*
Harbour-Link Lines (KCH) Malaysia 63.75 63.75 36.25 36.25

Sdn. Bhd.*
Port agent, ship operator and
Harbour-Link Lines (KK) Malaysia 95 95 5 5
provision of freighting and
Sdn. Bhd.*
marine services
Harbour-Link Lines (PK) Malaysia 60 60 40 40
Sdn. Bhd.*
Harbour-Link Lines Singapore 100 100 - -

(Singapore) Pte. Ltd.**
Harbour Jupiter Sdn. Bhd.* Malaysia Ship owning and ship 100 100 - -
management
Subsidiary of HLG Petroleum
Advance Mariner Lines Malaysia Port agent, ship operator and 54.79 54.79 45.21 45.21
Sdn. Bhd.* provision of freighting and
marine services
Subsidiary of Advance
Mariner Lines Sdn. Bhd.
AML Shipping Sdn. Bhd.* Malaysia 100 100 - -
AML Shipping (Singapore) Singapore Port agent, ship operator and 100 - - -
Pte. Ltd.** Note (b)(i) provision of freighting and
marine services
AML Shipping (Sabah) Malaysia 51 - 49 -
Sdn. Bhd.* Note (b)(ii)


contd
% of ownership
2017 2016 2017 2016
% % % %
Subsidiary of APSB
Sarawak Edible Oils Malaysia Property Developer 100 100 - -

Sdn. Bhd.*
* Audited by Ernst & Young, Malaysia.

** Audited by firms of auditors other than Ernst & Young, Malaysia.

Equal to proportion of voting right held

Although the Group owns 47% (2016: 47%) of the equity interest of Harbour Services Sdn. Bhd. (HSSB), the Group has
the power to govern the financial and operating policies of HSSB by virtue of the right to appoint three directors out of
total four directors to the board of directors of HSSB.

(b) Incorporation and acquisition of subsidiaries
(i) On 22 July 2016, Advance Mariner Lines Sdn. Bhd. (AMLSB), a subsidiary of the Group, had incorporated a wholly-
owned subsidiary under the name of AML Shipping (Singapore) Pte. Ltd. (AMLSPL) in Singapore. AMLSPL was
incorporated with an issued and fully paid-up share capital of SGD1.00 divided into 1 ordinary share of SGD1.00
each.
(ii) On 7 November 2016, AMLSB had acquired One (1) ordinary share of RM1, representing 50% equity interest in
AML Shipping (Sabah) Sdn. Bhd. (AML (Sabah)) and further subscribed for 50,999 new ordinary shares of RM1
each in AML (Sabah) for a cash consideration of RM50,999. Following the acquisition and subscription, AML
(Sabah) becomes 51% owned subsidiary of AMLSB.
(iii) On 7 November 2016, Harbour-Link (M) Sdn. Bhd. (HLM), a subsidiary of the Company, had acquired One (1)
ordinary share of RM1, representing 50% equity interest in Harbour-Link Forwarders Sdn. Bhd. (HLF) and further
subscribed for 34,999 new ordinary shares of RM1 each in HLF for a cash consideration of RM34,999. Following the
acquisition and subscription, HLF becomes 70% owned subsidiary of HLM.
(iv) On 5 January 2017, Harbour Agencies (Sarawak) Sdn. Bhd. (HAS), a subsidiary of the Company, had incorporated
a wholly-owned subsidiary under the name of Union Star Shipping Pte. Ltd. (USSPL) in Singapore with the paid-
up share capital of SGD1.00 divided into 1 ordinary share of SGD1.00 each.
(v) On 13 June 2017, HLG Equipment Sdn. Bhd. (HLGE), a subsidiary of the Group, had incorporated a subsidiary
under the name of HLG Equipment (B) Sdn. Bhd. (HLGEB) in Brunei Darussalam with an issued and paid-
up capital of BND100 divided into 100 ordinary shares. HLGE had subscribed for 99 ordinary shares of BND1,
representing 99% equity interest in HLGEB.

contd
(c) Disposal of subsidiaries - Progressif Lengkap Sdn. Bhd. (PLSB) and its subsidiary, Road Safety & Driving Academy Sdn.
Bhd. (ROSDA)
On 29 March 2017, HLM had entered into a Share Sale Agreement to dispose 1,000,000 and 100 ordinary shares in PLSB
and ROSDA, respectively for a total cash consideration of RM5,000.
The disposal had the following effects on the financial position of the Group as at the end of the year:
RM
Property, plant and equipment 202

Other receivables, deposits and prepayments 1,088
Cash and bank balances 9,598
Other payables and accruals (58,460)
Net assets disposed (47,572)
Total disposal proceeds 5,000
Gain on disposal to the Group (Note 5) (52,572)
Cash outflow arising on disposals:

Cash consideration 5,000
Cash and cash equivalents of subsidiaries disposed (9,598)
Net cash outflow on disposal (4,598)
(d) The Groups subsidiaries that have material non-controlling interests (NCI) are set out below. The summarised financial
information presented below is the amount before inter-company elimination.
(i) Summarised statements of financial position
Arcadia Properties Harbour-Link Lines Advance Mariner

Sdn. Bhd. and Sdn. Bhd. and Lines Sdn. Bhd. and
its subsidiary its subsidiaries its subsidiaries Total
2017 2016 2017 2016 2017 2016 2017 2016
RM RM RM RM RM RM RM RM
Non-current assets 51,240,799 46,956,926 8,541,023 9,466,493 1,297,108 252,189 61,078,930 56,675,608
Current assets 31,009,190 52,190,433 58,491,485 47,878,685 30,526,507 19,925,634 120,027,182 119,994,752
Total assets 82,249,989 99,147,359 67,032,508 57,345,178 31,823,615 20,177,823 181,106,112 176,670,360
Current liabilities 25,190,448 34,748,046 50,045,632 39,976,042 15,451,751 19,848,132 90,687,831 94,572,220
Non-current liabilities 72,479 8,043,007 2,105,973 2,782,951 217,857 21,000 2,396,309 10,846,958
Total liabilities 25,262,927 42,791,053 52,151,605 42,758,993 15,669,608 19,869,132 93,084,140 105,419,178
Equity attributable
to owners of the
Company 29,045,296 28,723,610 9,296,360 9,853,362 8,804,741 235,480 47,146,397 38,812,452
Non-controlling interests 27,941,766 27,632,696 5,584,543 4,732,823 7,349,266 73,211 40,875,575 32,438,730
Total equity 56,987,062 56,356,306 14,880,903 14,586,185 16,154,007 308,691 88,021,972 71,251,182

contd
(d) The Groups subsidiaries that have material non-controlling interests (NCI) are set out below. The summarised financial
information presented below is the amount before inter-company elimination. contd
(ii) Summarised statements of profit or loss and other comprehensive income

2017 2016 2017 2016 2017 2016 2017 2016
Revenue 9,657,889 97,732,676 196,329,456 159,372,774 68,756,469 9,252,287 274,743,814 266,357,737

Profit/(loss) for the year 630,756 35,309,919 673,448 (7,079,125) 1,369,006 162,691 2,673,210 28,393,485
Profit/(loss) attributable
to:
Owners of the Company 321,686 18,008,059 (178,272) (6,335,256) 741,951 89,480 885,365 11,762,283
Non-controlling interest 309,070 17,301,860 851,720 (743,869) 627,055 73,211 1,787,845 16,631,202
630,756 35,309,919 673,448 (7,079,125) 1,369,006 162,691 2,673,210 28,393,485
Dividend paid to
non-controlling
interests - - 353,750 327,125 - - 353,750 327,125
(iii) Summarised cash flows

2017 2016 2017 2016 2017 2016 2017 2016
Net cash generated

from/(used in)
operating activities 543,262 9,430,827 4,564,491 (1,404,226) (13,189,907) 14,725,455 (8,082,154) 22,752,056
Net cash (used in)/from
investing activities (976,861) (1,314,698) (1,191,016) (1,382,723) 2,924,690 (11,326,683) 756,813 (14,024,104)
Net cash (used in)/from
financing activities (9,575,215) (3,104,215) (1,276,703) (1,501,629) 14,388,844 145,998 3,536,926 (4,459,846)
Net (decrease)/increase
in cash and cash
equivalents (10,008,814) 5,011,914 2,096,772 (4,288,578) 4,123,627 3,544,770 (3,788,415) 4,268,106
Effects of exchange rate - - (25,000) 43,424 (26,690) - (51,690) 43,424
Cash and cash
equivalents at the
beginning of the year 12,226,971 7,215,057 7,063,524 11,308,678 3,544,772 2 22,835,267 18,523,737
Cash and cash
equivalents at the end
of the year 2,218,157 12,226,971 9,135,296 7,063,524 7,641,709 3,544,772 18,995,162 22,835,267


contd
18. INVESTMENT IN ASSOCIATES
Group Company
2017 2016 2017 2016
RM RM RM RM
Unquoted shares in Malaysia, at cost 1,506,200 1,712,200 1,466,200 1,466,200

Share of post-acquisition reserves 5,230,981 3,306,844 - -
6,737,181 5,019,044 1,466,200 1,466,200
Details of the associates are as follows:
Country of Ownership of interest held

Name of Associates Incorporation Principal Activities by the Group
2017 2016
% %
Eastock Resources Sdn. Bhd. * Malaysia Renting of property - 25
ECL (Malaysia) Sdn. Bhd. ** Malaysia 49 49

Shipping and related services
Smart Shipping Sdn. Bhd. ** Malaysia 40 40
Subsidiary of ECL (Malaysia) Sdn. Bhd.
HKK Jaya Sdn. Bhd. **

Ship owning and ship operator 42 42 Malaysia
services

* Audited by Ernst & Young, Malaysia.

Equal to proportion of voting right held.

All the results of the Groups associates were consolidated using equity method.
On 5 December 2016, the Group disposed its 25% equity interest in Eastock Resources Sdn. Bhd. for a total cash consideration
of RM15,000.
Summarised financial information in respect of the Groups material associates is set out below. The summarised financial
information represents the amount in the MFRS financial statement of the associates and not the Groups share of those
amounts.

contd
18. INVESTMENT IN ASSOCIATES contd
(a) Summarised statements of financial position
ECL (Malaysia) Sdn.

Bhd. and its subsidiary
2017 2016
RM RM
Assets and liabilities

Current assets 12,779,624 10,903,811
Non-current assets 8,472,224 6,887,871
Total assets 21,251,848 17,791,682
Current liabilities 6,030,848 4,408,692

Non-current liabilities 2,623,349 3,243,989
Total liabilities 8,654,197 7,652,681
Net assets 12,597,651 10,139,001
(b) Summarised statements of profit or loss and other comprehensive income
Revenue 13,509,460 24,152,549

Income tax expense (103,838) (1,021,763)
Other comprehensive income (61,928) -
Total comprehensive income 3,143,775 2,165,277
Dividend received from the associates during the year 238,026 171,500
(c) Reconciliation of net assets to carrying amount
As at 30 June
Groups share of net assets 6,599,954 5,272,485
Goodwill - (247,163)
Carrying amount in the statement of financial position 6,599,954 5,025,322


contd
19. INVESTMENT IN JOINT VENTURE
Group
2017 2016
RM RM
Unquoted shares at cost 650,000 650,000

Share of post-acquisition profit (66,835) 32,867
583,165 682,867
The Group has 50% of the voting right of its joint arrangement under the contractual arrangements, unanimous consent is
required by all parties to the arrangement for all relevant activities.
The joint arrangement is structured via separate entity and provides the Group with the rights to the net assets of the entity
under the arrangement. Therefore this entity is classified as joint venture of the Group.
Details of the joint venture is as follows:
Country of % of ownership interest Accounting

Name of Joint Venture Incorporation Principal Activities held by the Group* model applied
2017 2016
% %
A&H Project Services Malaysia Transportation and crane 50 50 Equity method

Sdn. Bhd. ** renting

* Equals to the proportion of voting right held.

Summarised financial information of A&H Project Services Malaysia Sdn. Bhd. is set out below. The financial information
represents the amounts in the MFRS financial statements of the joint ventures and not the Groups share of those amounts.
(i) Summarised statements of financial position
Group
2017 2016
RM RM
Assets and liabilities

Current assets 1,119,917 1,326,804
Non-current assets 101,440 141,879
Total assets 1,221,357 1,468,683
Current liabilities 35,520 83,441

Non-current liabilities 19,508 19,508
Total liabilities 55,028 102,949
Net assets 1,166,329 1,365,734


contd
19. INVESTMENT IN JOINT VENTURE contd
(ii) Summarised statements of profit or loss and other comprehensive income
Group
2017 2016
RM RM
Revenue 1,900 257,225

Loss for the year (111,173) (435,776)
Income tax expense - -
Total comprehensive income (111,173) (435,776)
(iii) Reconciliation of net assets to carrying amount
Net assets as at 1 July 1,365,733 1,801,509

Loss for the year (199,404) (435,776)
Net assets as at 30 June 1,166,329 1,365,733
Interest in joint venture 50% 50%
Carrying value of Groups interest in joint venture 583,165 682,867
20. OTHER INVESTMENTS
Group
2017 2016
RM RM
Available-for-sale investment
Unquoted shares at cost - outside Malaysia 652,445 652,445
Available-for-sale investment represent investment made to non-listed investment outside Malaysia. The investment is
recorded at cost since the fair value cannot be reliably estimated. There is no market value for the investment and the Group
does not intend to dispose the investment in the foreseeable future.
21. DEFERRED TAX ASSETS/(LIABILITIES)
Group Company
2017 2016 2017 2016
RM RM RM RM
At 1 July (12,033,191) (5,819,507) (28,782) (56,800)

Recognised in profit or loss (Note 10) (2,775,079) (6,213,684) (23,737) 28,018
Exchange differences 28 - - -
At 30 June (14,808,242) (12,033,191) (52,519) (28,782)


contd
21. DEFERRED TAX ASSETS/(LIABILITIES) contd
The following amounts, determined after appropriate offsetting, are shown in the statement of financial position.
Group Company
2017 2016 2017 2016
RM RM RM RM
Deferred tax assets 2,014,807 3,413,129 - -

Deferred tax liabilities (16,823,049) (15,446,320) (52,519) (28,782)
(14,808,242) (12,033,191) (52,519) (28,782)
Group
Unabsorbed
Development Unutilised capital Trade
Inventories properties tax losses allowances receivables Total
RM RM RM RM RM RM
Deferred tax assets:

At 1 July 2016 843,945 - 1,158,693 2,673,412 3,258,579 7,934,629
Recognised in profit or loss (155,166) - (101,844) (300,144) (697,756) (1,254,910)
Exchange differences - - 28 - - 28
At 30 June 2017 688,779 - 1,056,877 2,373,268 2,560,823 6,679,747
At 1 July 2015 - 5,730,695 513,239 2,789,004 4,424,998 13,457,936

Recognised in profit or loss 843,945 (5,730,695) 645,454 (115,592) (1,166,419) (5,523,307)
At 30 June 2016 843,945 - 1,158,693 2,673,412 3,258,579 7,934,629

Group

Property, plant and
equipment
2017 2016
RM RM
Deferred tax liabilities

At 1 July (19,967,820) (19,277,443)
Recognised in profit or loss (1,520,169) (690,377)
At 30 June (21,487,989) (19,967,820)


contd
21. DEFERRED TAX ASSETS/(LIABILITIES) contd
Company
Property, plant and

equipment
2017 2016
RM RM
Deferred tax liabilities

At 1 July (28,782) (56,800)
Recognised in profit or loss (Note 10) (23,737) 28,018
At 30 June (52,519) (28,782)
Deferred tax assets have not been recognised in respect of the following items:

Group
2017 2016
RM RM
Unutilised tax losses 4,934,000 4,876,000

Unabsorbed capital allowances 2,931,000 5,917,000
7,865,000 10,793,000
As at 30 June 2017 and 2016, the deferred tax assets were not recognised as it was not probable that future taxable profits
will be available against which the unutilised tax losses and unabsorbed capital allowances can be utilised. The unutilised
tax losses and unabsorbed capital allowances of the Group are available for offsetting against future taxable profits of the
respective companies in Malaysia and are subject to no substantial changes in shareholdings under the Income Tax Act, 1967
and guidelines issued by the tax authority.
22. INVENTORIES
Group
2017 2016
RM RM
At cost
Petrol, diesel and lubricant 3,756,679 1,454,225
Spare parts 2,638,846 2,678,629
Consumable store 346,264 139,710
Properties held for sale 23,399,870 28,851,698
30,141,659 33,124,262
At net realisable value
Pallets 50,687 55,879
30,192,346 33,180,141

contd
23. LAND HELD FOR DEVELOPMENT AND DEVELOPMENT PROPERTIES
(a) Land held for development
Group
Leasehold Development
land cost Total
RM RM RM
At 1 July 2015 37,519,032 6,175,006 43,694,038

Cost incurred during the year - 247,537 247,537
At 30 June 2016 37,519,032 6,422,543 43,941,575

Cost incurred during the year - 2,888,070 2,888,070
Transfer to investment properties (Note 14) (545,056) (138,162) (683,218)
At 30 June 2017 36,973,976 9,172,451 46,146,427
(b) Development properties
At 1 July 2015 10,016,953 51,889,981 61,906,934

Cost incurred during the year - 10,823,706 10,823,706
Transfer to property, plant and equipment (Note 13) (86,643) (806,603) (893,246)
Transfer to inventories (3,991,507) (24,860,191) (28,851,698)
Transfer to profit or loss (5,938,803) (37,046,893) (42,985,696)
At 30 June 2016 and 30 June 2017 - - -

Included in land held for development and development properties during the financial year are:
Group
2017 2016
RM RM
Development properties
Interest expense (Note 6) - 365,507
Land held for development

Interest expense (Note 6) 842,809 -


contd
24. TRADE AND OTHER RECEIVABLES
Group Company
2017 2016 2017 2016
RM RM RM RM
Trade receivables
Third parties 120,471,444 141,492,309 - -
Amount due from associates - 11,907 - -
120,471,444 141,504,216 - -
Less: Allowance for impairment

Third parties (9,353,506) (17,056,628) - -
Amount due from associates - (11,907) - -
(9,353,506) (17,068,535) - -
Trade receivables, net 111,117,938 124,435,681 - -
Other receivables
Advances 51,331 84,655 - 495
Sundry receivables 10,200,907 8,668,167 8,847 39,882
Amount due from subsidiaries - - 75,532,413 72,581,782
Deposits 9,622,628 10,895,791 246,575 246,575
19,874,866 19,648,613 75,787,835 72,868,734

Less: Allowance for impairment (2,319) (2,378) (6,209,212) (6,209,212)
19,872,547 19,646,235 69,578,623 66,659,522
Total trade and other receivables 130,990,485 144,081,916 69,578,623 66,659,522

Add: Cash and bank balances (Note 29) 76,011,075 97,508,831 2,499,925 2,312,573
Total loans and receivables 207,001,560 241,590,747 72,078,548 68,972,095


contd
24. TRADE AND OTHER RECEIVABLES contd
(a) Trade receivables
Ageing analysis of trade receivables
The ageing analysis of the Groups trade receivables are as follows:
Group
2017 2016
RM RM
Neither past due nor impaired 37,103,618 48,969,003

1 to 6 months past due but not impaired 62,364,986 63,082,318
99,468,604 112,051,321
Impaired 21,002,840 29,452,895
120,471,444 141,504,216
Receivables that are neither past due nor impaired
Credit terms of trade receivables range from payment in advance to 120 days (2016: range from payment in advance to
120 days).
Other than receivables that are impaired, trade receivables comprise:
- Receivables in relation to engineering business arising from rendering of engineering services to companies with
a good collection track record with the Group and the Company. These receivables include retention sums which
are to be settled in accordance with the terms of the respective contracts.
- Receivables in relation to shipping and marine services business arising from providing shipping and agency
related services to companies with a good collection track record with the Group and the Company. These
receivables have more than four years of experience with the Group and losses have occurred infrequently.
- Receivables in relation to total logistics services business arising from providing forwarding and logistics related
services to companies with good collection track record with the Group and the Company.
Receivables that are past due but not impaired comprise:
As at 30 June 2017, trade receivables of the Group of RM62,364,986 (2016: RM63,082,319) were past due but not
impaired. These relate to customers for whom there is no objective evidence that the receivables are not fully
recoverable.

contd
(a) Trade receivables contd
Receivables that are impaired:
The Groups trade receivables that are impaired at the reporting date and the movement of the allowance accounts used
to record the impairment are as follows:
Group
Collectively Individually
Impaired Impaired Total
2017 2017 2017
RM RM RM
Trade receivables - nominal amounts 10,427,193 10,575,647 21,002,840

Less: Allowance for impairment (3,794,936) (5,558,570) (9,353,506)
6,632,257 5,017,077 11,649,334

Group
Collectively Individually
Impaired Impaired Total
2016 2016 2016
RM RM RM
Trade receivables - nominal amounts 8,436,682 21,016,213 29,452,895

Less: Allowance for impairment (3,217,942) (13,850,593) (17,068,535)
5,218,740 7,165,620 12,384,360

Movement in allowance accounts:
Group
2017 2016
RM RM
At 1 July 17,068,535 19,987,221
Charge for the year 849,007 2,354,533

Reversal of impairment losses (6,603,136) (5,273,219)
Allowance for impairment, net of reversal (Note 5) (5,754,129) (2,918,686)
Written off (1,960,900) -
At 30 June 9,353,506 17,068,535


contd
(b) Related party balances
Amount due from subsidiaries are unsecured, receivable on demand, and non-interest bearing, except amount of
RM38,816,968 (RM15,838,294) bear interest of ranging from 4% to 6.85% (2016: 4% to 6.85%) per annum.
Other receivables that are impaired
At the reporting date, the Company has provided an allowance for impairment of RM6,209,212 (2016: RM6,209,212) for
impairment on amount due from subsidiaries.
There has been no movement in this allowance account for the financial year ended 30 June 2017 and 2016.
25. DERIVATIVES
Group
2017 2016
Contract/ Contract/
notional notional
amount Assets amount Assets
RM RM RM RM
Non-hedging derivatives:
Forward currency contracts 16,957,728 969,356 - -
The Group uses forward currency contracts to manage some of the 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.
During the financial year, the Company recognised a gain of RM969,356 arising from fair value changes of derivatives. The
method and assumptions applied in determining the fair value of derivatives are disclosed in Note 39.
26. OTHER CURRENT ASSETS
Group Company
2017 2016 2017 2016
RM RM RM RM
Amount due from customers on construction contracts

(Note 27) 1,713,573 3,134,331 - -
Tax recoverable 6,046,679 1,536,127 672,914 690,407
Prepayment 32,206,752 6,556,302 89,512 481,289
39,967,004 11,226,760 762,426 1,171,696


contd
27. AMOUNT DUE FROM/(TO) CUSTOMERS FOR CONTRACT WORK-IN-PROGRESS
Group
2017 2016
RM RM
Construction contract costs incurred to date 31,240,615 23,108,261

Add: Attributable profits 6,328,334 3,098,278
37,568,949 26,206,539
Less: Progress billings (36,133,568) (24,097,746)
Amount due to customers for contract work 1,435,381 2,108,793
Amount due from customers for contract work (included in other current assets - Note 26) 1,713,573 3,134,331
Amount due to customers on contract work (included in other current liabilities - Note 35) (278,192) (1,025,538)
1,435,381 2,108,793
Retention sums on contracts, included within trade receivables 3,954,455 1,207,362
The costs incurred to date on construction contracts include the following charges made during the financial year:
Group
2017 2016
RM RM
Hire of plant and machinery 1,604,657 1,299,757

Depreciation of property, plant and equipment (Note 13) 1,365,214 1,479,803
Rental expenses 194,486 244,123

28. INVESTMENT SECURITIES
Group
2017 2016
RM RM
Held for trading investments

Quoted money market funds 41,910,745 26,264,410
Fair value of the quoted money market funds 41,910,745 26,264,410


contd
29. CASH AND BANK BALANCES
Group Company
2017 2016 2017 2016
RM RM RM RM
Cash at bank and on hand 69,350,535 89,667,643 341,483 679,669

Short term deposits with licensed banks 6,660,540 7,841,188 2,158,442 1,632,904
Cash and bank balances (Note 24) 76,011,075 97,508,831 2,499,925 2,312,573
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying
periods of between 1 day and twelve months depending on the immediate cash requirements of the Group, and earn interests
at respective short-term deposit rates. The weighted average effective interest rate as at 30 June 2017 for the Group and the
Company were 1.75% to 6.92% (2016: 3%) and 2.6% to 6.92% (2016: 3%) respectively per annum. Short term deposits with
licensed banks of the Group and of the Company amounting to RM3,996,473 (2016: RM4,727,233) and RM2,158,442 (2016:
RM1,632,904) respectively are pledged as securities for bank borrowings.
Included in short-term deposit with licensed banks of the Group are deposits amounted to RM276,102 (2016: RM270,626)
under the name of the director of the subsidiary who held in trust on behalf of the subsidiary.
The Groups cash at bank amounting to RM219,057 (2016: RM3,020,999) has been deposited to a bank to be solely used as the
bank repayment for the Companys loans and borrowings as referred in Note 33.
For the purpose of cash flow statements, cash and cash equivalents comprise the following at the reporting date:
Group Company
2017 2016 2017 2016
RM RM RM RM
Cash and short term deposits 76,011,075 97,508,831 2,499,925 2,312,573

Bank overdrafts (Note 33) (13,176,126) (12,686,393) (5,909,016) (5,818,754)
Cash at bank pledged as securities for bank borrowings (219,057) (3,020,998) - -
Short term deposits pledged as securities for bank
borrowings (3,996,473) (4,727,233) (2,158,442) (1,632,904)
Cash and cash equivalents 58,619,419 77,074,207 (5,567,533) (5,139,085)


contd
30. SHARE CAPITAL
Number of
ordinary shares Amount Amount
2017 2016 2017 2016
RM RM
Issued and fully paid

At 1 July 2015/30 June 2016 and 1 July 2016 400,400,004 182,000,002 200,200,002 182,000,002
Share split - 182,000,002 - -
Bonus issue - 36,400,000 - 18,200,000
At 30 June 2017 400,400,004 400,400,004 200,200,002 200,200,002
The new Companies Act 2016 (the Act) which came into operation on 31 January 2017, abolished the concept of authorised
share capital and par value of share capital.
31. OTHER RESERVE
Other reserve represented restructuring reserve arising from business combination.
32. EXCHANGE TRANSLATION RESERVE
The exchange translation reserve represents exchange differences arising from the translation of the financial statements of
foreign operations whose functional currencies are different from that of the Groups presentation currency.
33. BORROWINGS
Group Company
2017 2016 2017 2016
Maturity RM RM RM RM
Current
Secured:
Obligations under finance leases
(Note 36(c)) 2018 10,317,650 10,715,892 5,427 188,044
Bank overdrafts (Note 29) On demand 9,396,045 10,621,419 5,909,016 5,818,754

contd
33. BORROWINGS contd
Group Company
2017 2016 2017 2016
Current contd
Term loans - RM loan:

BLR - 0.5% 2018 220,397 206,760 - -
BLR - 0.3% 2018 199,405 1,079,398 - -
BLR - 0.75% 2018 311,576 - - -
BLR - 1.5% 2018 344,127 327,230 - -
Term Financing-i 2018 284,839 262,186 - -
BLR + 0% (a) 2018 - 519,514 - 519,514
BLR + 0% (b) 2018 429,600 444,174 - -
BLR + 0% (c) 2018 - 4,507,844 - -
BLR + 0.15% 2018 123,536 163,494 - -
BLR + 0.25% 2018 468,508 451,233 - -
BLR + 0.35% 2018 919,354 924,768 - -
BLR + 0.5% 2018 1,668,516 1,679,466 - -
BLR + 0.75% 2018 189,960 189,960 - -
BLR + 1% 2018 228,290 907,722 - -
KLIBOR + 1.25% 2018 530,304 530,304 - -
3.38% p.a. fixed rate & BLR - 2% 2018 238,678 227,331 - -
7.75% fixed rate 2018 496,987 460,038 - -
26,367,772 34,218,733 5,914,443 6,526,312
Unsecured:
Bank overdrafts (Note 29) On demand 3,780,081 2,064,974 - -
Bankers acceptances 2018 4,348,534 3,568,467 - -
Revolving credit 2018 8,220,000 4,260,000 8,220,000 4,260,000
16,348,615 9,893,441 8,220,000 4,260,000
Total short term borrowings 42,716,387 44,112,174 14,134,443 10,786,312


contd
Group Company
2017 2016 2017 2016
Non-current
Secured:
(Note 36(c)) 2019 - 2020 14,879,803 16,761,660 - 5,428
Term loans - RM loan:
BLR - 0.5% 2019 - 2020 561,209 783,424 - -
BLR - 0.3% - - 236,383 - -
BLR - 0.75% 2019 - 2026 3,058,715 2,777,921 - -
BLR - 1.5% 2019 - 2025 3,720,788 4,061,321 - -
Term Financing-i 2019 - 2029 4,213,371 4,502,788 - -
BLR + 0% (b) 2019 - 2022 1,697,224 2,115,000 - -
BLR + 0% (c) - - 7,913,730 - -
BLR + 0.15% - - 119,205 - -
BLR + 0.25% 2019 - 2021 1,481,088 1,939,655 - -
BLR + 0.5% 2019 - 2023 7,791,420 9,403,380 - -
BLR + 0.35% 2019 - 2020 1,805,600 2,710,400 - -
BLR + 0.75% 2019 24,564 214,524 - -
BLR + 1% - - 225,047 - -
KLIBOR + 1.25% 2019 - 2020 574,456 1,104,760 - -
3.38% p.a. fixed rate & BLR - 2% 2019 - 2021 357,961 598,102 - -
7.75% fixed rate 2019 - 2020 1,320,444 1,817,431 - -
Total long term borrowings 41,486,643 57,284,731 - 5,428
Total loan and borrowings (Note 34) 84,203,030 101,396,905 14,134,443 10,791,740
The remaining maturities of the loans and borrowings as at the reporting date are as follows:
Group Company
2017 2016 2017 2016
RM RM RM RM
On demand or within one year 42,716,387 44,112,174 14,134,443 10,786,312

More than 1 year and less than 2 years 12,828,614 19,680,379 - 5,428
More than 2 years and less than 5 years 20,684,983 27,140,123 - -
5 years or more 7,973,046 10,464,229 - -
84,203,030 101,396,905 14,134,443 10,791,740


contd

These obligations are secured by a charge over the lease assets (Note 13). The effective interest rate as at reporting date
ranging from 3.30% to 6.23% (2016: 3.30% to 6.23%) per annum. These obligations are denominated in RM.
Bank overdrafts
Bank overdrafts are secured by fixed and floating charges over certain landed property of the subsidiaries, short-term deposits
of the Group and of the Company and against corporate guarantee from the Company. The effective interest rate as at
reporting date ranging from 7.65% to 8.15% (2016: 7.10%) per annum.
Bankers acceptance
Bankers acceptance are secured against the corporate guarantee of the Company. The interest rate of the Group as at
reporting date was 6.35% (2016: 4.38% to 6.51%) per annum.
Revolving credit
The interest rate for the revolving credit was 8.15% (2016: 8.35%) per annum.
RM loan at BLR - 0.5%
This loan is secured by fixed charge over the container vessel and tugboat of Harbour Ivory Sdn. Bhd. and Harbour Agencies
(Sibu) Sdn. Bhd. and corporate guarantee of the Company.
This loan is secured by fixed charge over the certain plant and machineries of Harbour-Link Logistics Sdn. Bhd. and corporate
guarantee of the Company.
This loan is secured by fixed charge over land and buildings of Harbour-Link Logistics Sdn. Bhd. and corporate guarantee of
the Company.
This loan is secured by fixed charge over certain leasehold land of Harbour-Link (M) Sdn. Bhd. and corporate guarantee of the
Company.
Term Financing-i
This loan is secured by fixed charge over freehold land and buildings of Eastern Soldar Engineering & Construction Sdn. Bhd.
and corporate guarantee of the Company.
RM loan at BLR + 0% (a)
This loan is secured by fixed charge over land and buildings of the Company.
RM loan at BLR + 0% (b)
This loan is secured by fixed charge over land and buildings of Harbour Services Corporation Sdn. Bhd. and corporate

contd
RM loan at BLR + 0% (c)

This loan is secured by fixed charge over leasehold land of Sarawak Edible Oils Sdn. Bhd., cash at bank as referred to in Note 29
to the financial statements and corporate guarantee of the Company.
RM loan at BLR + 0.15%
This loan is secured by fixed charge over certain leasehold land of Harbour-Link Logistics Sdn. Bhd. and corporate guarantee of
the Company.
This loan is secured by fixed charge over the vessel of Harbour Xtra Sdn. Bhd. and corporate guarantee of the Company.
This loan is secured by fixed charge over the vessel of Harbour Jupiter Sdn. Bhd. and corporate guarantee of the Company.
This loan is secured by fixed charge over the vessels of Harbour Ruby Sdn. Bhd. and Harbour Zenith Sdn. Bhd. and corporate
This loan is secured by fixed charge over certain plant and machineries of Harbour-Link Logistics Sdn. Bhd. and corporate
RM loan at BLR + 1%
This loan is secured by fixed charge over certain leasehold land of Harbour-Link (M) Sdn. Bhd. as disclosed in Note 13 to the
financial statements and corporate guarantee provided of the Company.
RM loan at KLIBOR + 1.25%
This loan is secured by fixed charge over the vessel of Harbour Agencies (Sibu) Sdn. Bhd. and corporate guarantee of the
Company.
RM loan at 7.75% fixed rate
This loan is secured by fixed charge over the vessel of Harbour Services (Kch) Sdn. Bhd. and corporate guarantee of the
Company.
RM bank loan at 3.38% fixed for the first year and BLR - 2% subsequently
The loan is secured by way of legal charges on investment properties of Harbour-Link (M) Sdn. Bhd. and corporate guarantee
of the Company.

contd
34. TRADE AND OTHER PAYABLES
Group Company
2017 2016 2017 2016
RM RM RM RM
Trade payables
Third parties 47,421,812 47,629,779 - -
Amount due to jointly controlled entity 205,774 590,915 - -
47,627,586 48,220,694 - -
Other payables
Accrued operating expenses 23,302,669 23,621,162 289,524 242,189
Sundry payables 7,898,932 13,298,324 200,362 166,795
Amount due to related parties 4,594,153 2,550,583 - -
Amount due to subsidiaries - - 11,096,828 32,270,889
Deposit received 23,047,456 9,754,089 1,640,000 1,200,000
58,843,210 49,224,158 13,226,714 33,879,873
Total trade and other payables 106,470,796 97,444,852 13,226,714 33,879,873

Add: Loans and borrowings (Note 33) 84,203,030 101,396,905 14,134,443 10,791,740
Total financial liabilities carried at amortised cost 190,673,826 198,841,757 27,361,157 44,671,613

(a) Trade and other payables
These amounts are non-interest bearing. Credit terms of trade and other payables range from payment in advance to
120 days (2016: range from payments in advance to 120 days).
(b) Amount due to subsidiaries
These amounts are unsecured and are repayable on demand and bear interest of 4% (2016: 4%) per annum.
(c) Amount due to related parties
The related parties represent the companies in which certain directors have substantial financial interest. These amounts
are interest free, unsecured and have no fixed terms of repayments.


contd
35. OTHER CURRENT LIABILITIES
Group
2017 2016
RM RM
Amounts due to customers on contract work (Note 27) 278,192 1,025,538

36. COMMITMENTS
(a) Capital commitments
Capital expenditure as at the reporting date is as follows:
Group
2017 2016
RM RM
Capital expenditure
Approved and contracted for:
Property, plant and equipment 12,498,112 10,888,735
(b) Operating lease commitments as lessor
The Group has the following lease arrangement:
(i) Lease of a building to a third party for a period of 10 years commencing 10 June 2009 to 30 June 2019.
(ii) Lease of a vacant land from a third party for the period of 30 years commencing on the 15 November 2012 to 14
November 2042.
As at the end of the financial year, the future aggregate minimum lease payments receivables/payables under non-
cancellable operating leases contracted for but not recognised as assets/liabilities were as follows:
Group
2017 2016
RM RM
Lease receivables
- Receivables within 1 year 360,000 360,000
- Receivables between 1 and 5 years 360,000 720,000
720,000 1,080,000

contd
36. COMMITMENTS contd
(b) Operating lease commitments as lessor contd
Group
2017 2016
RM RM
Lease payables
- Payables within 1 year 120,120 120,120
- Payables between 1 and 5 years 532,273 512,045
- Payables after 5 years 4,045,953 4,185,927
4,698,346 4,818,092
(c) Finance lease commitments
The Group has finance leases for certain items of plant and equipment and motor vehicles (Note 13). These leases do not
have terms of renewal, but have purchase options at nominal values at the end of the lease term.
Future minimum lease payments under finance leases together with the present value of the net minimum lease
payments are as follows:
Group Company
2017 2016 2017 2016
RM RM RM RM
Future minimum lease payments:

Not later than 1 year 11,553,270 12,089,971 5,512 192,089
Later than 1 year but not later than 2 years 7,604,399 9,373,792 - 5,512
Later than 2 years but not later than 5 years 8,406,195 8,591,817 - -
Total future minimum lease payments 27,563,864 30,055,580 5,512 197,601

Less: Future finance charges (2,366,411) (2,578,028) (85) (4,129)
Present value of finance lease liabilities 25,197,453 27,477,552 5,427 193,472
Analysis of present value of finance lease liabilities:
Group Company
2017 2016 2017 2016
RM RM RM RM
Not later than 1 year 10,317,650 10,715,892 5,427 188,044

Later than 1 year but not later than 2 years 6,923,218 8,679,878 - 5,428
Later than 2 years but not later than 5 years 7,956,585 8,081,782 - -
25,197,453 27,477,552 5,427 193,472

Less: Amount due within 12 months (Note 33) (10,317,650) (10,715,892) (5,427) (188,044)
Amount due after 12 months (Note 33) 14,879,803 16,761,660 - 5,428


contd
37. RELATED PARTY DISCLOSURES
(a) In addition to the transactions detailed elsewhere in the financial statements, the Group and the Company had the
following significant transactions at terms agreed between the parties during the financial year:
Balance outstanding Transaction values

2017 2016 2017 2016
RM RM RM RM
Group
Companies in which the certain directors have

substantial interest:
Income
Sales of services
- Azam Teroka Sdn. Bhd. 40,986 65,611 159,472 176,661
- Binary Bonus Sdn. Bhd. - - 2,985 2,250
- Herdsen Corporation Sdn. Bhd. 117,210 - 125,921 6,319
- Herdsen Quarry Sdn. Bhd. 391,408 3,998 943,494 69,364
- Herdsen Sago Industrial Sdn. Bhd. 15,143 13,722 79,064 41,700
- Marup Quarry Sdn. Bhd. 17,972 4,173 33,850 82,283
- Slingtex Industrial Sdn. Bhd. - - 2,000 38,637
- Sri Minah Enterprise Sdn. Bhd. - 58,787 300 90,963
Progress billings in respect of sales of

development properties
- Slingtex Industrial Sdn. Bhd. - - - 105,000
- Certain directors of the Company - - - 178,200
Sales of property, plant and equipment

- Magna Goldenway Sdn. Bhd. 2,061,700 - 2,061,700 -
Expenditure
Purchase of services
- Azam Teroka Sdn. Bhd. - - 25,000 -
- Binary Bonus Sdn. Bhd. - (573,772) 618,440 2,053,246
- Herdsen Corporation Sdn. Bhd. 14,482 - 13,662 -
- Herdsen Sago Industrial Sdn. Bhd. - - 203 -
- Keywork Sdn. Bhd. - - - 160,100
- Ricardon Sdn. Bhd. (13,500) - 18,000 -
- Slingtex Industrial Sdn. Bhd. (319,646) - 452,142 133,307
- Sri Minah Enterprise Sdn. Bhd. (5,178) (13,624) 22,041 45,260

contd
37. RELATED PARTY DISCLOSURES contd
following significant transactions at terms agreed between the parties during the financial year: contd
Balance outstanding Transaction values

2017 2016 2017 2016
RM RM RM RM
Group contd
Expenditure contd
Purchase of parts and tyres & materials,

equipment
- Binary Bonus Sdn Bhd - - 1,567 -
- Herdsen Corporation Sdn Bhd - - 30,000 -
- Herdsen Quarry Sdn. Bhd. (76,956) - 519,703 1,172,310
- Herdsen Sago Industrial Sdn. Bhd. - - 2,780 -
- Marup Quarry Sdn. Bhd. (48,323) (1,151) 180,604 1,059,812
- Mohd Mahmud Sdn. Bhd. - (96,749) - 379,802
- Slingtex Industrial Sdn. Bhd. - - 17,735 -
- Sri Minah Enterprise Sdn. Bhd. (424) (318) 71,393 196,772
Rental of equipment and premises

- Herdsen Corporation Sdn. Bhd. (106) - 1,200 1,200
- Herdsen Quarry Sdn. Bhd. - - 8,239 24,428
- Marup Quarry Sdn. Bhd. (8,042) - 10,880 14,930
- Mohd Mahmud Sdn. Bhd. (73,803) - 258,056 -
- Sri Minah Enterprise Sdn. Bhd. (456,490) (113,688) 922,329 677,617
- Director of the Company
- Lee Seng Chiong - - 24,800 24,000

contd
following significant transactions at terms agreed between the parties during the financial year: contd
Transaction values
2017 2016
RM RM
Associates
Income
Sales of services 1,702,839 406,049
Dividend received 118,026 171,500
Expenditure
Purchase of services 1,719,410 329,627
Jointly venture
Income
Sales of services - 145,678
Expenditure
Purchase of services - 329,627
Company
Transactions with subsidiaries:
Income
Dividend income 30,142,000 42,966,675
Interest income 1,675,425 1,273,335
Management fee income 1,176,600 1,116,000
Rental income 654,500 654,000
Expenditure
Interest expense 1,294,076 1,164,773

contd
(b) Compensation of key management personnel
The remuneration of directors and other members of key management during the year was as follows:
Group Company
2017 2016 2017 2016
RM RM RM RM
Short-term employee benefits 11,217,162 11,115,206 944,428 929,648

Post-employment benefits:
Defined contribution plan 1,291,717 1,194,232 87,769 84,538
Benefits-in-kind 13,925 13,925 - -
12,522,804 12,323,363 1,032,197 1,014,186
Included in the total key management

personnel are:
Directors remuneration (Note 9) 3,302,547 3,250,359 1,032,197 1,014,186

38. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group and the Company are exposed to foreign currency exchange risk, interest rate risk, credit risk and liquidity risk.
The Groups overall financial risk management objective is to minimise any potential adverse effects from the unpredictability
of financial markets on the Groups financial performance in order to ensure the Group creates value for its shareholders.
Financial risk management is carried out through risk reviews, internal control systems, insurance programmes and adherence
to the Groups financial risk management policies. The management regularly reviews these risks and approves the treasury
policies, which covers the management of these risks.
The following sections provide details regarding the Groups and Companys exposure to the above-mentioned financial risk
and the objectives, policies and processes for the management of these risks.
(a) 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 currency exposure profile of the Groups and the Companys financial assets and financial liabilities is disclosed in the
respective notes to the financial statements.
Currency risks as defined by MFRS 7 arise on account of monetary assets and liabilities being denominated in a currency
that is not the functional currency.
The Group is exposed to currency translation risk arising from its net investments in foreign operations, including
Singapore and Cambodia.
As at 30 June 2017, the Groups and Companys Ringgit Malaysia (RM) functional entities had United States Dollar
(USD) and Singapore Dollar (SGD) denominated net monetary liabilities, as well as the effects to the Groups and the
Companys profit before tax if the USD and SGD had strengthened by 5% (2016: 10%) and 2% (2016: 5%) respectively
and weakened by 8% (2016: 7%) and 6% (2016: 7%) respectively against RM.

contd
38. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES contd

(a) Foreign currency risk contd
Group
2017 2016
RM RM
RM / USD - Strengthen 5% (2016: 10%) 352,920 623,648

RM / USD - Weaken 8% (2016: 7%) (564,671) (436,554)
RM / SGD - Strengthen 2% (2016: 5%) 57,790 (390,187)

RM / SGD - Weaken 6% (2016: 7%) (173,371) 546,262
(b) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Groups and the Companys financial instruments
will fluctuate because of changes in market interest rates.
The Groups interest bearing assets are primarily short-term bank deposits with financial institutions. The interest rates
on these deposits are monitored closely to ensure that they are maintained at favourable rates. The Group considers the
risk of significant changes to interest rates on deposits to be unlikely.
The Groups primary interest rate risk relates to interest-bearing debts. The Group managers its interest rate exposure
by keep closely monitoring the debt market and where necessary, maintaining a prudent mix of fixed and floating rate
borrowings and a mix of interest revision dates. This strategy allows it to capitalise on cheaper funding in a low interest
rate environment and to achieve a certain level of protection against rate hikes.
If the Groups borrowings at variable rates on which effective hedges have not been entered into changes in the
following basis points, with all other variables being held constant, the effects on profit before tax would be as follows:
Group Company
2017 2016 2017 2016
RM RM RM RM
Borrowings based on cost of funds (KLIBOR):
- Increase by 25 basis points (38,084) (30,610) (35,323) (25,197)

- Decrease by 25 basis points 38,084 30,610 35,323 25,197
Borrowings based on base lending rate (BLR):
- Increase by 25 basis points (82,291) (140,899) - (1,299)

- Decrease by 25 basis points 82,291 140,899 - 1,299
(c) Liquidity Risk
The Group manages its debt maturity profile, operating cash flows and the availability of funding so as to ensure that
refinancing, repayment and funding needs are met. As part of its overall liquidity management, the Group maintains
sufficient levels of cash or cash convertible investments to meet its working capital requirements. In addition, the Group
strives to maintain available banking facilities at a reasonable level to its overall debt position. As far as possible, the
Group raises committed funding from both capital markets and financial institutions and balances its portfolio with
some short term funding so as to achieve overall cost effectiveness.


contd
(c) Liquidity Risk contd
Analysis of financial instruments by remaining contractual maturities
The table below summarises the maturity profile of the Groups and the Companys liabilities at the reporting date based
on contractual undiscounted repayment obligations.
More than 1 More than 2

On demand year and years and
or within less than less than 5 years
one year 2 years 5 years and more Total
RM RM RM RM RM
Group
At 30 June 2017
Financial liabilities
Trade and other payables 106,470,796 - - - 106,470,796
Loans and borrowings 47,079,553 15,597,594 23,220,845 9,445,742 95,343,734
Total undiscounted financial liabilities 153,550,349 15,597,594 23,220,845 9,445,742 201,814,530
At 30 June 2016
Loans and borrowings 49,510,923 22,662,048 31,411,550 12,431,116 116,015,637
Total undiscounted financial liabilities 146,955,775 22,662,048 31,411,550 12,431,116 213,460,489
Company
At 30 June 2017
Loans and borrowings 14,859,347 - - - 14,859,347
Financial guarantee contracts * 78,967,221 - - - 78,967,221
Total undiscounted financial liabilities 107,053,282 - - - 107,053,282
At 30 June 2016
Loans and borrowings 11,353,381 5,511 - - 11,358,892
Financial guarantee contracts * 117,015,118 - - - 117,015,118
Total undiscounted financial liabilities 162,248,372 5,511 - - 162,253,883
* Based on the maximum amount that be called under financial guarantee contracts.


contd
(d) Credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party
to incur a financial loss.
Credit risk arises from credit exposures to customers, including outstanding receivables, as well as deposits, cash and
bank balances and derivative financial instruments with financial institutions.
For trade and other receivables, the Group controls these risks by the application of credit approvals, limits and
monitoring procedures. The Group also minimises its exposure through analysing the counterparties financial condition
prior to entering into any services/contracts where appropriate to mitigate credit risk. Trade receivables are monitored
on an ongoing basis via Group management reporting procedures. For other financial assets (deposits, cash and bank
balances with financial institutions) the Group adopts the policy of dealing only with counterparties of high credibility
(i.e. banks and financial institutions).
Exposure to credit risk
At the reporting date, the Groups and the Companys maximum exposure to credit risk is represented by:
- The maximum exposure to credit risk is represented by the carrying amount of each financial assets in the
statement of financial position after deducting any impairment allowance.
- A nominal amount of RM78,967,221 (2016: RM117,015,118) relating to corporate guarantee provided by the
Company to banks on the subsidiaries borrowings.
Credit risk concentration profile
The Groups determines concentration of credit risk by monitoring the trade and other receivables on an ongoing basis.
At the reporting date, approximately 12% (2016: 19%) of the Group trade receivables was from a major customer located
in Malaysia.
Financial assets that are neither past due nor impaired
Information regarding trade and other receivables that are neither past due nor impaired is disclosed in Note 24.
Deposits with banks and other financial institutions, that are neither past due nor impaired are placed with or entered
into with reputable financial institutions.
Financial assets that are either past due or impaired
Information regarding financial assets that are either past due or impaired is disclosed in Note 24.


contd
39. FAIR VALUE OF FINANCIAL INSTRUMENTS
(a) Set out below, is a comparison by class of the carrying amount and the fair value of the Groups financial instruments,
other than those with carrying amounts are reasonable approximation of fair value.
Group Company
Carrying Fair Carrying Fair
Note amount value amount value
RM RM RM RM
At 30 June 2017
Financial assets:
Other investments 20 652,445 a - -
Financial liabilities:
Term loans with fixed rate 33 1,817,431 1,823,855 - -

Finance lease payables 36(c) 25,197,453 25,160,114 5,427 5,440
At 30 June 2016
Financial assets:
Other investments 20 652,445 a - -
Financial liabilities:
Term loans with fixed rate 33 2,277,469 2,281,257 - -

Finance lease payables 36(c) 27,477,552 27,592,930 193,472 193,371
a It is not practicable to estimate the fair values of the non-current unquoted shares because of the lack of quoted market prices and the
inability to estimate fair value without incurring excessive costs.
(b) Determination of fair value
Financial instruments that are not carried at fair value and whose carrying amounts are reasonable
approximation of fair value.
The following are classes of financial instruments that are not carried at fair value and whose carrying amounts are
reasonable approximation of fair value:
Note
Trade and other receivables 24

Trade and other payables 34
Loan and borrowings: 33
- Term loan except for the following loans:
- RM loan at 7.75% fixed rate

contd
39. FAIR VALUE OF FINANCIAL INSTRUMENTS contd
(b) Determination of fair value contd
The carrying amount of these financial assets and liabilities are reasonable approximation of fair values, either due to
their short-term nature or that they are floating rate instruments that are re-priced to market interest rates on or near
the reporting date.
The carrying amounts of the current portion of loans and borrowings are reasonable approximations of fair values due
to the insignificant impact of discounting.
The fair values of current loans and borrowings are estimated by discounting expected future cash flows at market
incremental lending rate for similar types of lending, borrowing or leasing arrangements at the reporting date.
Finance lease payables
The fair values of the finance lease payables are estimated by discounting expected future cash flows at market
incremental lending rate for similar types of lending borrowing or leasing arrangements at the reporting date.
Derivatives

The fair values of forward currency contracts are the amounts that would be payable or receivable on termination of the
outstanding position arising and are determined by reference to the difference between the contracted rate and forward
exchange rates at the reporting date for contracts with similar maturity profiles.
40. FAIR VALUE MEASUREMENT
Fair value hierarchy
The Group classifies fair value measurement using a fair value hierarchy that reflects the significance of the inputs used in
making the measurements. The fair value hierarchy has the following levels:
Level 1 - Quoted prices in active markets for identical assets or liabilities;
Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or
indirectly; and
Level 3 - Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following table provides the fair value measurement hierarchy of the Groups and Companys assets and liabilities.

contd
40. FAIR VALUE MEASUREMENT contd
Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at 30 June 2017 and 2016:
Date of Level 1 Level 2 Level 3 Total

Note Valuation RM RM RM RM
Group
Assets measured at fair value

Non-financial assets
Property, plant and equipment (i) 13 30 June 2017 - - 4,400,348 4,400,348
Financial assets:
Derivatives 25 30 June 2017 - 969,356 - 969,356
Investment securities 28 30 June 2017 41,910,745 - - 41,910,745
41,910,745 969,356 4,400,348 47,280,449
Assets for which fair values are

disclosed
Investment properties (ii) 14 30 June 2017 - - 10,417,000 10,417,000
Liabilities for which fair values are

disclosed
Term loans with fixed rate 39(a) 30 June 2017 - 1,823,855 - 1,823,855
Finance lease payables 39(a) 30 June 2017 - 25,160,114 - 25,160,114
- 26,983,969 - 26,983,969
Assets measured at fair value

Non-financial assets
Property, plant and equipment (i) 13 30 June 2016 - - 13,861,102 13,861,102
Financial assets:
Investment securities 28 30 June 2016 26,264,410 - - 26,264,410
26,264,410 - 13,861,102 40,125,512
Assets for which fair values are

disclosed
Investment properties (ii) 14 30 June 2016 - - 19,855,000 19,855,000

disclosed
Term loans with fixed rate 39(a) 30 June 2016 - 2,281,257 - 2,281,257
Finance lease payables 39(a) 30 June 2016 - 27,592,930 - 27,592,930
- 29,874,187 - 29,874,187

contd
40. FAIR VALUE MEASUREMENT contd
Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at 30 June 2017 and 2016: contd
Date of Level 1 Level 2 Level 3 Total

Note Valuation RM RM RM RM
Company

disclosed
Finance lease payables 39(a) 30 June 2017 - 5,440 - 5,440
Finance lease payables 39(a) 30 June 2016 - 193,371 - 193,371
Level 3 fair value measurements
(i) The valuation techniques used is market comparable approach. Market values determined by independent ship valuers
taking into consideration the type, size and age of the ships and the assumptions that the ships are in good and
seaworthy condition, to be transacted between willing buyer and willing seller.
(ii) The valuation techniques used is market comparable approach. Price per square foot of comparable properties adjusted
based on managements assumptions for key attributes such as property size.
41. CAPITAL MANAGEMENT
The Groups objectives when managing capital are to safeguard the Groups ability to continue as a going concern and to
maintain an optimal capital structure so as to maximise shareholders value. In order to maintain or achieve an optimal capital
structure, the Group may adjust the dividend payment, return capital to shareholders, obtain new financing facilities or
dispose assets to reduce borrowings.
Management monitors capital based on the Groups and the Companys gearing ratio. The Group and the Company are also
required by certain banks to maintain a gearing ratio of not exceeding certain percentage varying between 100% and 200%.
The Groups and the Companys strategies are to maintain gearing ratio of not exceeding 100%.
The gearing ratio is calculated as net debt divided by equity capital. Net debt is calculated as total borrowings, trade and other
payables less investment securities, cash and bank balances. Equity capital is equivalent to capital and reserves attributable to
owners of the Company.

contd
41. CAPITAL MANAGEMENT contd
Group Company
Note 2017 2016 2017 2016
RM RM RM RM
Loans and borrowings 33 84,203,030 101,396,905 14,134,443 10,791,740

Trade and other payables 34 106,470,796 97,444,852 13,226,714 33,879,873
Less:
Investment securities 28 (41,910,745) (26,264,410) - -
Cash and bank balances 29 (76,011,075) (97,508,831) (2,499,925) (2,312,573)
Net debt 72,752,006 75,068,516 24,861,232 42,359,040
Equity attributable to the owners of the

Company 347,218,143 326,608,491 227,935,227 208,450,662
Capital and net debt 419,970,149 401,677,007 252,796,459 250,809,702
Gearing ratio 17.32% 18.69% 9.83% 16.89%
42. SEGMENT INFORMATION
(a) Reporting format
The primary segment reporting format is determined to be business segments as the Groups risks and rates of return
are affected predominantly by differences in the services provided. Secondary information is reported geographically.
The operating businesses are organised and managed separately according to the nature of the services provided, with
each segment representing a strategic business unit that serves different markets.
(b) Business segments
The Group is organised into four major business segments:
(i) Shipping and marine services

(ii) Logistic services and equipment rental
(iii) Engineering works
(iv) Property development
Other business activities include investment holding, property rental, road safety and sales of pallets, none of which are
of a sufficient size to be reported separately, are grouped under shipping and marine services.
Management monitors the operating results of its business units separately for the purpose of making decisions about
resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss
which, in certain respects as explained in the table below, is measured differently from operating profit or loss in the
consolidated financial statements. Group financing (including finance costs) and income taxes are managed on a group
basis and are not allocated to operating segments.
The directors are of the opinion that all inter-segment transactions have been entered into in the normal course of
business and have been established on terms and conditions that are not materially different from those obtainable in
transactions with unrelated parties.

contd
42. SEGMENT INFORMATION contd
(b) Business segments contd
The following table provides an analysis of the Groups revenue, results, assets, liabilities and other information by
business segment:
Shipping, Logistics
Marine Services &
Services & Equipment Engineering Property Elimination/
Others Rental Works Development Adjustments Note Total
RM RM RM RM RM RM
30 June 2017
REVENUE
External sales 334,801,266 146,031,685 34,462,138 10,450,771 - 525,745,860
Inter-segment sales 28,394,645 10,256,826 - 131,500 (38,782,971) A -
Total revenue 363,195,911 156,288,511 34,462,138 10,582,271 (38,782,971) 525,745,860
RESULTS
Profit/(Loss) before tax 16,877,223 29,049,639 (177,299) 1,098,703 (96,842) A 46,751,424
Amortisation 50,074 89,496 - - - A 139,570
Depreciation 8,328,367 12,560,139 1,882,683 309,159 - A 23,080,348
Impairment loss on
property, plant and
equipment 2,108,108 - - - - 2,108,108
Finance cost 2,986,617 2,650,553 324,402 967,195 (1,354,297) A 5,574,470
Share of results of
associates 1,994,822 - - - - 1,994,822
Share of results of joint
venture - (99,702) - - - (99,702)
ASSETS
Investment in
associates 6,737,181 - - - - 6,737,181
Investment in joint
venture - 583,165 - - - 583,165
Addition to non-
current assets 13,828,284 16,180,128 6,408,906 3,990,534 (1,163,957) B 39,243,895
Segment assets 235,675,400 239,180,675 74,751,071 83,593,585 (25,882,187) C 607,318,544
LIABILITIES
Segment liabilities 103,630,866 109,238,142 11,309,628 26,609,577 (37,481,185) D 213,307,028

contd
The following table provides an analysis of the Groups revenue, results, assets, liabilities and other information by
business segment: contd
Shipping, Logistics
Marine Services &
Services & Equipment Engineering Property Elimination/
Others Rental Works Development Adjustments Note Total
RM RM RM RM RM RM
30 June 2016
REVENUE
External sales 268,287,397 166,521,153 58,223,195 97,732,676 - 590,764,421
Inter-segment sales 30,872,981 11,850,374 - - (42,723,355) A -
Total revenue 299,160,378 178,371,527 58,223,195 97,732,676 (42,723,355) 590,764,421
RESULTS
(Loss)/profit before tax (3,320,367) 40,554,809 15,606,289 49,097,534 22,302 A 101,960,567
Amortisation 136,075 - - - - A 136,075
Depreciation 7,378,969 12,181,066 1,882,683 354,202 - A 21,796,920
Impairment loss on
property, plant and
equipment 5,941,800 - - - - A 5,941,800
Finance cost 1,561,182 2,743,791 324,402 1,552,920 (382,374) A 5,799,921
Share of results of
associates 1,505,162 - - - - 1,505,162
Share of results of joint
venture - (217,888) - - - (217,888)
ASSETS
Investment in
associates 5,019,044 - - - - 5,019,044
Investment in joint
venture - 682,867 - - - 682,867
Addition to non-
current assets 30,802,973 13,445,032 769,631 2,596,296 - B 47,613,932
Segment assets 242,909,289 231,186,187 84,619,093 100,843,510 (70,477,508) C 589,080,571
LIABILITIES
Segment liabilities 87,216,330 99,006,728 28,421,126 104,886,447 (94,192,471) D 225,338,160

contd
A Elimination of inter-segment unrealised profit at consolidation.
B Additions to non-current assets consists of:
2017 2016
RM RM
Property, plant and equipment (Note 13) 36,093,611 47,366,395

Prepaid land lease payments (Note 15) 262,214 -
Land held for development (Note 23(a)) 2,888,070 247,537
39,243,895 47,613,932
C The following items deducted from segment assets to arrive at total assets reported in the consolidated statement
of financial positions.
2017 2016
RM RM
Inter-segment assets elimination (24,718,230) (68,360,824)

Unrealised gain on property, plant and equipment and inventories (1,163,957) (865,831)
(25,882,187) (69,226,655)

D The following items are deducted from to segment liabilities to arrive at total liabilities reported in the
consolidated statement of financial position.
2017 2016
RM RM
Inter-segment liabilities elimination (37,481,185) (94,192,471)
(c) Geographical segments
Sales to external customers disclosed in geographical segments are based on the geographical location of its customers.
The Groups three business segments operate in two main geographical areas:
Total Revenue From

External Customers
2017 2016
RM RM
(i) Malaysia 494,115,220 589,910,286

(ii) Singapore 31,630,640 854,135
Consolidated 525,745,860 590,764,421


contd
43. SUPPLEMENTARY INFORMATION BREAKDOWN OF RETAINED EARNINGS INTO REALISED AND UNREALISED
The breakdown of the retained earnings of the Group and the Company as at 30 June 2017 into realised and unrealised
earnings is presented in accordance with the directive issued by Bursa Malaysia Securities Berhad 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, issued by the Malaysian Institute
of Accountants.
Group Company
2017 2016 2017 2016
RM RM RM RM
Total retained earnings of the Company and the

subsidiaries
Realised 284,096,662 270,188,547 27,787,744 8,279,442
Unrealised (14,125,605) (11,555,927) (52,519) (28,782)
269,971,057 258,632,620 27,735,225 8,250,660

Total share of retained earnings from associates
and joint venture 5,164,146 3,339,771 - -
Less: Consolidated adjustments (67,829,116) (75,292,771) - -
Retained earnings as per financial statements 207,306,087 186,679,620 27,735,225 8,250,660

ANALYSIS OF SHAREHOLDINGS
At 9 October 2017
Total number of Issued Shares : 400,400,004
Class of Shares : Ordinary Shares
Voting Rights : One vote per ordinary share
SIZE OF SHAREHOLDINGS
as at 9 October 2017
No. of Total
Size of Holdings Shareholders Holdings %
Less than 100 Shares 11,426 417,898 0.10

100 1,000 Shares 3,276 810,628 0.20
1,001 10,000 Shares 1,269 5,711,797 1.43
10,001 100,000 Shares 706 20,707,295 5.17
100,001 below 5% of issued Shares 134 143,885,961 35.94
5% and above of issued Shares 6 228,866,425 57.16
Total 16,817 400,400,004 100.00
DIRECTORS SHAREHOLDINGS
Direct Interest Indirect Interest

No. Name Shares % Shares %
1. Yong Piaw Soon 36,946,699 9.23 212,819,726* 53.15

2. Wong Siong Seh 22,274,360 5.56 212,819,726* 53.15
3. Dato Toh Guan Seng 5,060,000 1.26 - -
4. Hii Kwong Wui 3,949,000 0.99 - -
5. Lee Seng Chiong 3,762,600 0.94 - -
6. Datuk Pau Chiong Ung - - - -
7. Bin Lay Thiam - - - -
8. Datuk Ir. K. Zainal Abidin Bin A. Jalil - - - -
Note
* Deemed interest through shareholdings in Enricharvest Sdn. Bhd. and United Joy Sdn. Bhd by virtue of Section 8 of the Companies Act 2016.
At 9 October 2017
contd
SUBSTANTIAL SHAREHOLDERS

No. Name Shares % Shares %
1. Enricharvest Sdn. Bhd. 126,258,306 31.53 - -

2. United Joy Sdn. Bhd. 86,561,420 21.62 - -
3. Yong Piaw Soon 36,946,999 9.23 212,819,726* 53.15
4. Wong Siong Seh 22,274,360 5.56 212,819,726* 53.15
Note
THIRTY (30) LARGEST SHAREHOLDERS

No. of
No. Name of Shareholder Shares held %
1 KENANGA NOMINEES (TEMPATAN) SDN BHD 47,665,420 11.90

PLEDGED SECURITIES ACCOUNT FOR UNITED JOY SDN BHD
PLEDGED SECURITIES ACCOUNT FOR ENRICHARVEST SDN BHD
3 ENRICHARVEST SDN. BHD. 40,402,340 10.09
PLEDGED SECURITIES ACCOUNT FOR YONG PIAW SOON
5 UNITED JOY SDN. BHD. 31,196,000 7.79
PLEDGED SECURITIES ACCOUNT FOR WONG SIONG SEH
9 HSBC NOMINEES (ASING) SDN BHD 9,000,000 2.25
KBL EURO PB FOR HALLEY SICAV - HALLEY ASIAN PROSPERITY
10 LEE POH IM 8,855,440 2.21
12 CITIGROUP NOMINEES (ASING) SDN BHD 6,158,060 1.54
EXEMPT AN FOR CITIBANK NEW YORK
13 HSBC NOMINEES (TEMPATAN) SDN BHD 5,706,620 1.43
HSBC (M) TRUSTEE BHD FOR MANULIFE INVESTMENT PROGRESS FUND
PLEDGED SECURITIES ACCOUNT FOR WONG SING KUOK
15 TOH GUAN SENG 4,600,000 1.15
PLEDGED SECURITIES ACCOUNT FOR HII KWONG WUI
At 9 October 2017
contd
THIRTY (30) LARGEST SHAREHOLDERS contd

No. of
No. Name of Shareholder Shares held %
17 HII ING KWONG 3,594,360 0.90

PLEDGED SECURITIES ACCOUNT FOR LAU CHII HUNG
19 CIMSEC NOMINEES (TEMPATAN) SDN BHD 3,300,000 0.82
CIMB BANK FOR WONG SIONG SEH
20 ALLIANCEGROUP NOMINEES (TEMPATAN) SDN BHD 3,300,000 0.82
21 RHB NOMINEES (TEMPATAN) SDN BHD 2,799,000 0.70
PLEDGED SECURITIES ACCOUNT FOR LEE SENG CHIONG
22 HSBC NOMINEES (TEMPATAN) SDN BHD 2,036,200 0.51
HSBC (M) TRUSTEE BHD FOR RHB SMALL CAP OPPORTUNITY UNIT TRUST
23 AMANAHRAYA TRUSTEES BERHAD 1,979,180 0.49
PUBLIC ISLAMIC OPPORTUNITIES FUND
25 AFFIN HWANG NOMINEES (TEMPATAN) SDN. BHD. 1,632,000 0.41
PLEDGED SECURITIES ACCOUNT FOR LAU SII HIN
26 CIMSEC NOMINEES (TEMPATAN) SDN BHD 1,606,000 0.40
CIMB BANK FOR WONG LING POH
27 AMSEC NOMINEES (TEMPATAN) SDN BHD 1,480,400 0.37
MTRUSTEE BERHAD FOR PACIFIC PEARL FUND
28 LOH CHAI KIAM 1,459,820 0.36
29 LIEW KIM MAN 1,420,980 0.35
30 RHB NOMINEES (TEMPATAN) SDN BHD 1,356,960 0.34
ANALYSIS OF WARRANTHOLDINGS
At 9 October 2017
No. of Warrants in issue : 36,400,000
Exercise price of the Warrants : RM1.56
Expiry date of the Warrants : 3 April 2021
WARRANTHOLDINGS DISTRIBUTION
No. of No. of % of
Size of Holdings Warrantholders warrants Held Issued Warrant
Less than 100 Warrants 14,312 110,506 0.30

100 1,000 Warrants 870 342,451 0.94
1,001 10,000 Warrants 260 940,869 2.59
10,001 100,000 Warrants 114 4,011,065 11.02
100,001 below 5% of issued Warrants 31 10,048,984 27.61
5% and above of issued Warrants 6 20,946,125 57.54
Total 15,593 36,400,000 100.00
DIRECTORS WARRANTHOLDINGS

No. Name Warrants % Warrants %
1. Yong Piaw Soon 3,495,549 9.60 19,350,576* 53.16

2. Wong Siong Seh 2,073,820 5.70 19,350,576* 53.16
3. Dato Toh Guan Seng 460,000 1.26 - -
4. Hii Kwong Wui 294,000 0.81 - -
5. Lee Seng Chiong 276,600 0.76 - -
6. Datuk Pau Chiong Ung - - - -
7. Bin Lay Thiam - - - -
8. Datuk Ir. K. Zainal Abidin Bin A. Jalil - - - -
Note
At 9 October 2017
contd
SUBSTANTIAL WARRANTHOLDERS

No. Name Warrants % Warrants %
1. Enricharvest Sdn. Bhd. 11,481,356 31.54 - -

2. United Joy Sdn. Bhd. 7,869,220 21.62 - -
3. Yong Piaw Soon 3,495,549 9.60 19,350,576* 53.16
4. Wong Siong Seh 2,073,820 5.70 19,350,576* 53.16
Note
THIRTY (30) LARGEST WARRANTHOLDERS

No. of
No. Name of Warrant Holder Warrants held %

PLEDGED SECURITIES ACCOUNT FOR UNITED JOY SDN BHD
PLEDGED SECURITIES ACCOUNT FOR ENRICHARVEST SDN BHD
8 ENRICHARVEST SDN. BHD. 900,000 2.47
9 LEE POH IM 805,040 2.21
10 UNITED JOY SDN. BHD. 700,000 1.92
11 MAYBANK NOMINEES (TEMPATAN) SDN BHD 468,200 1.29
EYO SZE GUAN
12 TOH GUAN SENG 460,000 1.26
13 KENANGA NOMINEES (TEMPATAN) SDN BHD 440,940 1.21
14 HII ING KWONG 313,220 0.86
15 CIMSEC NOMINEES (TEMPATAN) SDN BHD 300,000 0.82
CIMB BANK FOR WONG SIONG SEH
16 ALLIANCEGROUP NOMINEES (TEMPATAN) SDN BHD 300,000 0.82
PLEDGED SECURITIES ACCOUNT FOR HII KWONG WUI
At 9 October 2017
contd
THIRTY (30) LARGEST WARRANTHOLDERS contd

No. of
No. Names Warrants held %
18 MAYBANK SECURITIES NOMINEES (TEMPATAN) SDN BHD 280,000 0.77

PLEDGED SECURITIES ACCOUNT FOR WAFIY BIN ABD AZIZ
19 LIM LEONG YAO 269,200 0.74
PLEDGED SECURITIES ACCOUNT FOR WONG KIE SING
PLEDGED SECURITIES ACCOUNT FOR LAU CHII HUNG
22 PUBLIC NOMINEES (TEMPATAN) SDN BHD 205,000 0.56
PLEDGED SECURITIES ACCOUNT FOR FELIX WONG KHUNG CHUI
23 AMANAHRAYA TRUSTEES BERHAD 196,280 0.54
PUBLIC ISLAMIC OPPORTUNITIES FUND
24 RHB NOMINEES (TEMPATAN) SDN BHD 189,000 0.52
PLEDGED SECURITIES ACCOUNT FOR LEE SENG CHIONG
25 KEK TEK HUAT SENDIRIAN BERHAD 186,500 0.51
26 LIEW KON MOY 171,100 0.47
27 LIM SEE PEK 158,000 0.43
PLEDGED SECURITIES ACCOUNT FOR LAW KIM LEONG
30 MAYBANK NOMINEES (TEMPATAN) SDN BHD 144,300 0.40
LEE POH HEOK
LIST OF PROPERTIES
As at 30 June 2017
Net book
value
Land area/ Approximate at 30 June
Built-up age of 2017 Date of
Description Tenure Existing use area building (RM000) acquisition
Harbour-Link Group Berhad
Unit 6-12, Lot 2646, Leasehold land Office 2,561.7 10 years 5,353 18 August
Parkcity Commerce Square, expiring on sq metres 2006
Jalan Tun Ahmad Zaidi, 18.02.2057
Bintulu, Sarawak
Harbour-Link (M) Sdn Bhd
Lot 3064, Block 26, Leasehold land Workshop, 20,240.0 15 years 3,379 20 February
Kemena Land District, expiring on storage area sq metres 1998
Bintulu, Sarawak 11.10.2062 and warehouse
Lot 3065, Block 26, Leasehold land Workshop, 8,096.0 15 years 442 29 March
Bintulu Sarawak 11.10.2066 and warehouse
Lot 4010, Block 26, Leasehold land Workshop, 12,139.0 15 years 1,163 2 August
Bintulu, Sarawak 24.01.2067 and warehouse
Lot 4052, Block 26, Leasehold land Workshop and 2,902.0 11 years 175 5 July 2005
Kemena Land District, expiring on storage sq metres
Kidurong Industrial Area, 25.03.2067 Storage area
Bintulu, Sarawak
Block 5, 3rd Floor, Unit 1 of Lot 1079, Leasehold land Residential 74.3 18 years 56 7 October
Block 31, Kemena Land District, 60 years from apartment used sq metres 1998
Bintulu, Sarawak the date of as staff quarters
registration
of the lease
Lot 2525, Block 32, Leasehold land Residential 383.1 15 years 119 18 June 2002
Kemena Land District, expiring on double-storey sq metres
Bintulu, Sarawak 06.05.2059 semi-detached
house used as
staff quarters
Lot 2526 Block 32 Leasehold land Residential 397.1 15 years 119 18 June 2002
Kemena Land District, expiring on double-storey sq metres
Bintulu, Sarawak 06.05.2059 semi-detached
house used as
staff quarters
Lot 566, Block 4, Leasehold land Container 28,730.0 10 years 1,424 28 January
Muara Tebas Land District, expiring on storage sq metres 2004
Kuching, Sarawak 31.12.2036 yard
Warehouse - 1,887
(Work in
progress)
LIST OF PROPERTIES
As at 30 June 2017
contd
Net book
value
Lot 4054, Block 26, Leasehold land Storage yard 5,798 8 years 1,852 11 March
Kemena Land District, expiring on rented to 3rd sq metres 2009
Bintulu, Sarawak 08.02.2070 party
Harbour Agencies (Sarawak) Sdn Bhd
Lot 3429, Block 32, Leasehold land Double-storey 305.8 18 years 146 19 February
Kemena Land District, expiring on semi-detached sq metres 2004
Bintulu, Sarawak 06.09.2058 house rented to
third party
Sublot 32 (Survey Lot 8099) Leasehold land Double-storey 349.3 2 years 573 9 March
of Parent Lots 1559 and 1561, terraced sq metres 2016
Lambir Land District, Miri, Sarawak (corner) house
Vacant
Lot 1684, Block 11, Leasehold land Vacant 9,220.0 - 521 2 October
Seduan Land District, Sibu, Sarawak expiring on Agriculture land sq metres 2003
03.12.2034
Harbour Agencies (Sibu) Sdn Bhd
Lot 2553, Block 7, Sibu Town District, Leasehold land Office 123.8 25 years 162 25 October
Sibu, Sarawak expiring on 3-storey corner sq metres 1995
28.09.2052 shophouse
Harbour Services (Miri) Sdn Bhd
Lot 2132, Kuala Baram Land District, Leasehold land Single storey 5,260.0 11 years 530 6 February
Miri, Sarawak expiring on warehouse sq metres 2004
05.02.2064 industrial
building
Harbour-Link Logistics Sdn Bhd
Lot 3120, Block 26, Leasehold land Warehouse and 39,580.0 1 year 15,136 26 October
Kemena Land District, expiring on office sq metres 2010
Bintulu, Sarawak 16.01.2058
Lot 19, Industrial Zone 4, Leasehold land Workshop and 12,205.8 10 years 4,444 11 July 2005
Kota Kinabalu Industrial expiring on storage yard sq metres
Park Jalan Sepanjar, 31.12.2098
Kota Kinabalu, Sabah
LIST OF PROPERTIES
As at 30 June 2017
contd
Net book
value
Eastern Soldar Engineering & Construction Sdn Bhd
Lot No. 21667, Freehold Factory and 10,219.0 23 years 4,251 10

Pekan of Bukit Kepayang, office sq metres November
District of Seremban, Negeri Sembilan 1992
Lot No. 14849, Town of Seremban, Freehold Intermediate 153.0 28 years 171 30 June 1994
District of Seremban, Negeri Sembilan double-storey sq metres
shophouse
rented to third
party
Lot No. 11441, No. 1, Freehold Vacant 224 15 years 116 20 April 1999
Jalan Kesuma 3/7, Corner lot sq metres
Bandar Tasik Kesuma, three-storey
43700 Beranang, Selangor shopoffice
PT No. 11643, H.S.(D): 215207 Freehold Industrial 28,329.0 - 14,131 22 May 2013
Bandar Sri Sendayan Seremban, Vacant land sq metres
Negeri Sembilan (Factory under
construction)
ESE Energy Sdn Bhd
Lot No. 21953, Freehold Staff house and 92.9 17 years 255 24 June 1996
Pekan of Bukit Kepayang, store sq metres
District of Seremban, Negeri Sembilan Intermediate
three-storey
shopoffice
Sarawak Edible Oild Sdn Bhd
Lot 1218, Block 20, Leasehold land Vacant/ 391,273.5 - 46,509 26 April 2010
Kemena Land District, expiring on Industrial Land sq metres
Bintulu, Sarawak. (Apply for AVTC & 31.10.2071
Building Engineering Plan)
Lot 2655, Block 20, Leasehold land Warehouse 5,768 1 year 2,868 16 August
Kemena Land District, 60 years from sq metres 2016
Bintulu, Sarawak. the date of
registration of
the lease
Lot 7 (2581), Block 1, Lot 1218, Leasehold land Office 222.8 1 year 872 23 March
Block 20, Kemena Land District, 60 years from 3-storey sq metres 2016
Bintulu, Sarawak. the date of shophouse
registration of
the lease
LIST OF PROPERTIES
As at 30 June 2017
contd
Net book
value
Lot 59 (2633), Block 1, Lot 1218, Leasehold land Office 140 1 year 562 1 April 2017
Block 20, Kemena Land District, 60 years from 3-storey sq metres
Bintulu, Sarawak. the date of shophouse
registration of
the lease
Harbour Services Corporation Sdn Bhd
PN 5048, Lot 205310934 at Leasehold land Vacant 17,377.2 - 4,824 6 January

Kg. Bukit Kalam, expiring on land sq metres 2015
Wilayah Persekutuan Labuan 13.01.2056
NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN THAT the Fifteenth Annual General Meeting (AGM) of the Company will be held at Coral Room, Level 1, Nu
Hotel, No. 126, Lot 8349, Assyakirin Commerce Square, Jalan Tanjung Kidurong, 97000 Bintulu, Sarawak on Monday, 20 November 2017
at 9.00 a.m. for the purpose of transacting the following businesses:-
AGENDA
1. To receive the Audited Financial Statements for the financial year ended 30 June 2017 together with the
Directors and Auditors Reports thereon.
2. To approve a first and final single tier dividend of 1.5 sen per ordinary share for the financial year ended 30 (Resolution 1)
June 2017.
3. To approve the Directors fees for the financial year ended 30 June 2017. (Resolution 2)
4. To approve the payment of Directors fees and allowances up to RM350,000 from 1 July 2017 until the next (Resolution 3)
AGM of the Company.
5. To re-elect the following Directors retiring in accordance with the Companys Articles of Association and
being eligible, offer themselves for re-election:-
(i) Yong Piaw Soon (Article 103) (Resolution 4)
(ii) Bin Lay Thiam (Article 103) (Resolution 5)
(iii) Datuk Ir. K. Zainal Abidin Bin A Jalil (Article 109) (Resolution 6)
6. To re-appoint Messrs Ernst & Young as Auditors of the Company to hold office until the conclusion of the (Resolution 7)
next AGM and to authorise the Board of Directors to fix their remuneration.
AS SPECIAL BUSINESS
To consider, and if thought fit, to pass the following as ordinary resolutions:-
7. AUTHORITY TO ISSUE SHARES PURSUANT TO SECTION 75(1)(a) OF THE COMPANIES ACT, 2016 (Resolution 8)
THAT pursuant to Section 75(1)(a) of the Companies Act, 2016, the Directors be and are hereby empowered
to issue shares in the Company, at any time until the conclusion of the next Annual General Meeting and upon
such terms and conditions and for such purposes as the Directors may, in their absolute discretion, deem fit,
provided that the aggregate number of shares issued does not exceed ten per centum (10%) of the issued
share capital of the Company at the time of submission to the authority and THAT the Directors be and are also
empowered to obtain the approval for the listing of and quotation for the additional shares so issued on 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.
8. Proposed Renewal of Shareholders Mandate and Proposed New Shareholders (Resolution 9)

Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature
(Proposed Shareholders Mandate)
THAT, the mandate granted by the shareholders of the Company at the Fourteenth AGM held on 22 November
2016 pursuant to paragraph 10.09 of the Listing Requirements of Bursa Malaysia Securities Berhad, authorizing
the Company and its subsidiary (HLG Group) to enter into recurrent related party transactions of a revenue
or trading nature as set out in Section 2.3(i) of the Circular to Shareholders dated 27 October 2017 with the
related parties mentioned therein which are necessary for HLG Groups day-to-day operations, be and is hereby
renewed.
THAT approval be and is hereby given for HLG to enter into recurrent related party transactions of a revenue or
trading nature as set out in Section 2.3(ii) of the Circular to Shareholders, which are necessary for HLG Groups
day-to-day operations.

contd
THAT the HLG Group be and is hereby authorised to enter into the recurrent transactions with the related
parties mentioned therein provided that:-
a) the transactions are in the ordinary course of business and on normal commercial terms which are not
more favourable to the related parties than those generally available to the public and are not to the
detriment of the minority shareholders of the Company; and
b) the disclosure will be made in the Annual Report of the breakdown of the aggregate value of the
Recurrent Related Party Transactions conducted pursuant to the Proposed Shareholders Mandate
during the financial year based on the type of Recurrent Related Party Transactions made, the names of
the related parties involved in each type of Recurrent Related Party Transactions and their relationships
with the Company.
THAT authority conferred shall continue to be in force until:-
i) the conclusion of the next AGM of the Company following the forthcoming Fifteenth AGM at which the
Proposed Shareholders Mandate is approved, at which time it will lapse, unless by a resolution passed at
the AGM, the mandate is again renewed;
ii) the expiration of the period within which the next AGM of the Company is required to be held pursuant
to Section 340(2)(b) of the Companies Act, 2016 (the Act) (but shall not extend to such extension as
may be allowed pursuant to Section 340(4) of the Act); or
iii) revoked or varied by resolution passed by the shareholders in general meeting,
whichever is earlier;
AND THAT the Directors of the Company be and is hereby authorised to complete and do all such acts and
things (including executing all such documents as may be required) as they may consider expedient or
necessary to give effect to the Proposed Shareholders Mandate.
9. To transact any other business which may properly be transacted at an AGM for which due notice shall have
been given.
NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENT
Subject to the approval of the shareholders, a first and final single-tier dividend of 1.5 sen per ordinary share for the financial year
ended 30 June 2017 will be paid on 22 December 2017 to Depositors registered in the Record of Depositors at the close of business
at 5.00 p.m. on 30 November 2017.
A depositor shall qualify for entitlement only in respect of:
a) Shares transferred into the Depositors Securities Account before 4.00 p.m. on 30 November 2017 in respect of ordinary
transfers; and
b) Shares bought on Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of the Bursa Malaysia
Securities Berhad.
By Order of the Board
LIM SECK WAH (MAICSA NO. 0799845)

M. CHANDRASEGARAN A/L S. MURUGASU (MAICSA NO. 0781031)
Company Secretaries
Sarawak
Dated: 27 October 2017

contd
Notes:-
1. For the purpose of determining a member who shall be entitled to attend, speak and vote at the AGM, the Company shall be requesting the Record of
Depositors as at 15 November 2017. Only a depositor whose name appears on the Record of Depositors as at 15 November 2017 shall be entitled to
attend the said meeting or appoint proxies to attend, speak and vote on his/her stead.
2. A member entitled to attend and vote at a meeting of the Company is entitled to appoint up to two (2) proxies to attend. A proxy may but need not be
a member of the Company. Where a member appoints more than one proxy, the appointment shall be invalid unless he/she specifies the proportion of
his/her holdings to be represented by each proxy.
3. (i) Where a member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991, it may appoint at least one (1)
proxy but not more than two (2) proxies in respect of each securities account it holds with ordinary shares of the Company standing to the credit
of the said securities account.
(ii) 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), there is no limit to the number of proxies which the exempt authorised nominee may appoint in
respect of each omnibus account it holds.
4. The instrument appointing a proxy, in the case of an individual, shall be signed by the appointer or by his attorney duly authorised in writing, and in the
case of a corporation, shall be executed under its Common Seal or under the hand of an officer or attorney of the corporation duly authorised.
5. The instrument appointing the proxy, with the power of attorney or other authority (if any) under which it is signed or a notarially certified or office copy
of such power of attorney, must be deposited at the Registered Office of the Company at Wisma Harbour, Parkcity Commerce Square, Jalan Tun Ahmad
Zaidi, 97000 Bintulu, Sarawak not less than forty-eight (48) hours before the time set for holding the meeting or any adjournment thereof.
i) Ordinary Resolution 8 Authority to issue shares pursuant to Section 75(1)(a) of the Companies Act, 2016
The effect of the Ordinary Resolution if passed, will give the flexibility and authority to the Directors of the Company, from the date of the
forthcoming Fifteenth AGM, to issue and allot new shares in the Company up to and not exceeding in total 10% of the issued and paid-up share
capital of the Company as at the date of the Fifteenth AGM, for such purposes as they consider would be in the interest of the Company. This
authority, unless revoked or varied at a general meeting, will expire at the conclusion of the next AGM of the Company following the forthcoming
Fifteenth AGM.
The mandate obtained last year was not exercised and hence no proceed was raised therefrom. The Board would like to renew the mandate to
enable the Directors of the Company to issue and allot shares at any time to such persons in their absolute discretion without convening a general
meeting as it would be both time and cost consuming to organise a general meeting. The renewed authority for allotment of shares will provide
flexibility to the Company for the allotment of shares for the purpose of funding future investment, working capital and/or acquisitions, if there is
such investment opportunity arises during the financial year 2018.
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 22 November 2016.
ii) Ordinary Resolution 9 Proposed Shareholders Mandate
The explanatory note on Ordinary Resolution 9 is set out in the Circular to Shareholders dated 27 October 2017.
(Company No: 592902-D)
No. of ordinary shares held
FORM OF PROXY
(Before completing this form please refer to the notes below)
I/We I/C No./Co. No./CDS A/C No.

(Full name in block letters)
of
(Full address)
being a member/members of HARBOUR-LINK GROUP BERHAD hereby appoint the following person(s):-
Name of proxy, NRIC No. & Address No. of shares to be represented by proxy
1.
2.

or failing him/her, the Chairman of the Meeting as my/our proxy to vote for me/us on my/our behalf at the Fifteenth Annual
General Meeting (AGM) of the Company to be held at Coral Room, Level 1, Nu Hotel, No. 126, Lot 8349, Assyakirin Commerce
Square, Jalan Tanjung Kidurong, 97000 Bintulu, Sarawak on Monday, 20 November 2017 at 9.00 a.m. My/our proxy/proxies is/are
to vote as indicated below:-
FIRST PROXY SECOND PROXY

Ordinary Resolutions FOR AGAINST FOR AGAINST
1. First and Final Single tier dividend
2. Directors fees
3. Approval of Directors fees and allowances from 1 July 2017 until next AGM
4. Re-election of Yong Piaw Soon
5. Re-election of Bin Lay Thiam
6. Re-election of Datuk Ir. K. Zainal Abidin Bin A Jalil
7. Re-appointment of Messrs Ernst & Young
8. Authority to issue shares
9. Proposed Renewal of Shareholders Mandate and Proposed New
Shareholders Mandate for Recurrent Related Party Transactions of a Revenue
or Trading Nature.

(Please indicate with a or X in the space provided how you wish your vote to be cast. If no instruction as to voting is given, the proxy will vote or abstain
from voting at his/her discretion. All votings will be conducted by way of poll.
Dated this day of 2017

Signature/Common Seal
Notes:-
1. For the purpose of determining a member who shall be entitled to attend, speak and vote at the AGM, the Company shall be requesting the Record of
Depositors as at 15 November 2017. Only a depositor whose name appears on the Record of Depositors as at 15 November 2017 shall be entitled to
attend the said meeting or appoint proxies to attend, speak and vote on his/her stead.
2. A member entitled to attend and vote at a meeting of the Company is entitled to appoint up to two (2) proxies to attend. A proxy may but need not be
a member of the Company. Where a member appoints more than one proxy, the appointment shall be invalid unless he/she specifies the proportion of
his/her holdings to be represented by each proxy.
3. (i) Where a member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991, it may appoint at least one (1)
proxy but not more than two (2) proxies in respect of each securities account it holds with ordinary shares of the Company standing to the credit of
the said securities account.
(ii) 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), there is no limit to the number of proxies which the exempt authorised nominee may appoint in
respect of each omnibus account it holds.
4. The instrument appointing a proxy, in the case of an individual, shall be signed by the appointer or by his attorney duly authorised in writing, and in the
case of a corporation, shall be executed under its Common Seal or under the hand of an officer or attorney of the corporation duly authorised.
5. The instrument appointing the proxy, with the power of attorney or other authority (if any) under which it is signed or a notarially certified or office
copy of such power of attorney, must be deposited at the Registered Office of the Company at Wisma Harbour, Parkcity Commerce Square, Jalan Tun
Ahmad Zaidi, 97000 Bintulu, Sarawak not less than forty-eight (48) hours before the time set for holding the meeting or any adjournment thereof.
Fold This Flap For Sealing
Fold along this line (1)
Please Affix
Stamp
The Company Secretary

HARBOUR-LINK GROUP BERHAD (592902-D)
Wisma Harbour, Parkcity Commerce Square
Jalan Tun Ahmad Zaidi
97000 Bintulu, Sarawak
Malaysia
Fold along this line (2)

BRANCHES LIST
HEAD OFFICE:
Wisma Harbour, Parkcity Commerce Square, Jalan Tun Ahmad Zaidi, 97000 Bintulu, Sarawak, Malaysia
Tel : +60-86-318 998
Fax : +60-86-332 429
Email : info@harbour.com.my
Website : www.harbour.com.my
BRUNEI LABUAN
Tel : +(673) 2342 227 Tel : +60-87-431 699
Fax : +(673) 2342 226 Fax : +60-87-427 699
Email : muara@harbour.com.my Email : labuan@harbour.com.my
GUANG ZHOU, CHINA MIRI

Tel : +(86-20) 8760 3907 Tel : +60-85-420 225
Fax : +(86-20) 8760 3910 Fax : +60-85-420 270
Email : tomc@harbour.com.my Email : miri@harbour.com.my
HONG KONG PENANG

Tel : +(852) 2850 6081 Tel : +60-4-3249 453
Fax : +(852) 2850 6298 Fax : +60-4-3249 454
Email : hongkong@harbour.com.my Email : penang@harbour.com.my
JOHOR BAHRU PORT KLANG

Tel : +60-7-3562 800 Tel : +60-3-3001 3018
Fax : +60-7-3532 810 Fax : +60-3-3166 7013
Email : hllpgu@harbour.com.my Email : portklang@harbour.com.my
KLIA (AIR FREIGHT) PORT KLANG (CONTAINER LINER SERVICES)

Tel : +60-3-8778 8918 Tel : +60-3-3325 2010
Fax : +60-3-8778 8912 Fax : +60-3-3325 2011
Email : klia@harbour.com.my Email : hllpkg@harbour.com.my
KOTA KINABALU SANDAKAN

Tel : +60-88-267 225 Tel : +60-89-225 561
Fax : +60-88-261 225 Fax : +60-89-225 563
Email : kotakinabalu@harbour.com.my Email : sandakan@harbour.com.my
KOTA KINABALU (CONTAINER LINER SERVICES) SEREMBAN (ENGINEERING DIVISION)

Tel : +60-88-233 691 Tel : +60-6-7646 699
Fax : +60-88-232 692 Fax : +60-6-7627 500
Email : hllkk@harbour.com.my Email : esec@harbour.com.my
KOTA KINABALU (CONTAINER DEPOT) SIBU

Tel : +60-88-492 790 Tel : +60-84-341 558
Fax : +60-88-492 775 Fax : +60-84-341 557
Email : kkip@harbour.com.my Email : sibu@harbour.com.my
KUCHING SINGAPORE (CONTAINER LINER SERVICES)

Tel : +60-82-341 212 Tel : +65-6224 6828
Fax : +60-82-341 313 Fax : +65-6224 3834
Email : kuching@harbour.com.my Email : johny@harbour.com.my
KUCHING (CONTAINER LINER SERVICES) TAWAU

Tel : +60-82-339 600 Tel : +60-89-752 311
Fax : +60-82-480 600 Fax : +60-89-752 313
Email : hllkch@harbour.com.my Email : tawau@harbour.com.my
TG. KIDURONG
Tel : +60-86-253 811
Fax : +60-86-251 676
Email : operation.btu@harbour.com.my
H ARB OUR-LI NK GROUP B ERH A D ( 5 9 2 9 0 2 -D)
(592902-D)
A NNUA L REPO RT 20 1 7
ANNUAL
REPORT 17
H AR B O U R- L IN K G RO U P BE RH A D ( 5 9 2 9 0 2 -D)
Wi s m a H a r b o u r, Pa r kc i t y C o m m e rc e Sq u a re,
Ja l a n Tu n A h m a d Za i d i ,
9 7 0 0 0 B i nt u l u , Sa rawa k , M a l ays i a .
Te l : 0 8 6 - 3 1 8 9 9 8
Fax : 0 8 6 - 3 3 2 4 2 9
E- m a i l : i nfo @ h a r b o u r.co m .my
w w w. ha rbour. com . my

2062 - HARBOUR - AnnualReport - 2017-06-30 - HLG - Annual Report 2017 - 1179147401

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2062 - HARBOUR - AnnualReport - 2017-06-30 - HLG - Annual Report 2017 - 1179147401

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H ARB OUR-LI NK GROUP B ERH A D ( 5 9 2 9 0 2 -D)

HARBOUR-LINK GROUP BERHAD

01 Corporate Information 27 Audit Committee Report

HARBOUR-LINK GROUP BERHAD

AUDIT COMMITTEE SHARE REGISTRAR

Bin Lay Thiam (Chairman) Mega Corporate Services Sdn Bhd

Lim Seck Wah (MAICSA 0799845) Malayan Banking Berhad

Shipping And Marine Division

80% 100% 80% 85% 100%

HARBOUR IVORY HARBOUR-LINK HARBOUR HARBOUR-LINK HLG PETROLEUM

Property Engineering &

100% 49% 100% 100% 51% 100%

HARBOUR ECL (MALAYSIA) HARBOUR-LINK HLG RESOURCES ARCADIA EASTERN SOLDAR

z 100% Harbour-Link z 100% ESE Energy

z 100% Harbour Services Corporation

From left to right :

1. LEE SENG CHIONG 4. YONG PIAW SOON 7. HII KWONG WUI

YONG PIAW SOON, 65 WONG SIONG SEH, 55

He does not hold any directorships in other public companies.

DATO TOH GUAN SENG, 62 HII KWONG WUI, 55

He is currently President of Federation of Malaysia Foundry &

He does not hold any directorships in other public companies.

LEE SENG CHIONG, 58 BIN LAY THIAM, 47

He does not hold any directorships in other public companies.

In 2007, he co-founded PT. PERDANABINA MULIA, which

He acquired substantial control in PT. DWI MAHARANI in 2014,

He does not hold any directorships in other public companies.

KEY SENIOR MANAGEMENT

SANDRA CHAN LEE HUNG WONG KONG WON

TING SING HONG

MANAGEMENT DISCUSSION AND ANALYSIS

REVIEW OF FINANCIAL RESULTS AND OPERATING ACTIVITIES

KEY FINANCIAL HIGHLIGHTS

2017 2016 2015 2014 2013

Group Revenue 525,746 590,764 506,963 457,563 422,708

Group Operating Profit 50,431 106,473 81,633 57,556 24,196

Profit before tax 46,751 101,960 76,660 51,023 17,645

Profit after tax 31,780 71,858 54,642 36,349 6,550

Operating cash flow 44,704 48,814 78,070 103,768 (20,882)

Return on equity (ROE) (%) 8.25 17.21 18.54 14.47 2.53

Net Gearing (%) 17 19 20 28 46

Comparison FY 2017/FY 2016

Profit after tax

Liquidity and Financial Resources

MANAGEMENT DISCUSSION AND ANALYSIS

Review of Core Business Operations Performance and Outlook

Revenue by business divisions

Shipping and Integrated

2017 334,801 146,032 34,462 10,451

Profit before tax by business division

Shipping and Integrated

2017 16,877 29,050 (177) 1,099

Shipping and Marine Division

MANAGEMENT DISCUSSION AND ANALYSIS

Integrated Logistics Division

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS RISKS AND MITIGATION MEASURES

MANAGEMENT DISCUSSION AND ANALYSIS

GROUP FINANCIAL HIGHLIGHTS

2013 2014 2015 2016 2017

Revenue 422,708 457,563 506,963 590,764 525,746

Per Share Data (sen)

Revenue Prot Attributable to Prot from Operation