000222 Db Pinehill Pacific Berhad (Incorporated in Malaysia) 4. Revenue Group Company 2013 2012 2013 2012 RM. RM. RM RM Sales of crude palm oil 26,743,502 37,158,044 : : Sales of paim kernel 3,751,076 5,857,322 : - Sales of other oil palm products 474,810 278,172 : Dividend income from a subsidiary 2,381,369 2,381,359 43,203,538 2,381,359 5. Cost of sales Group 2013 2012 RM RM Mill operations 3,088,211 2,936,106 Plantation operations 14,006,811___ 15,917,159 6. Profit from operations The following items have been included in arriving at profit from operations: Group Company 2013 2012 2013 2012 RM RM RM RM (restated) Auditors’ remuneration - Statutory audits ~ Current year 193,000 185,800 51,000 50,000 - Under/(over) provision in prior year 2,533 (9.187) (6,000) : - Other services 6,000 5,000 6,000 5,000 Employee benefits expense (Note 7) 9,565,390 12,670,578 886,349 890,232 Non-executive directors’ remuneration (Note 8) 183,500 144,500 120,000 118,500 Depreciation of property, plant and equipment (Note 12) 4,162,492 3,985,177 3,638 10,445 40000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 6. Profit from operations (cont'd.) Group 2013 2012 RM RM (restated) Amortisation of biological assets (Note 14) 4,208,218 4,565,633 Net foreign exchange loss: - Realised 89,923 : - Unrealised 4,815,956 3,877,588 Impairment of investment - : Gain on disposal of property, plant and equipment (10,197,303) (2,143) Property, plant and equipment written off - 17,740 Inventories written off 913,262 - Allowance for doubtful debts (Note 17) 123,743 - Sundry income from sale of timber (104,739) (137,008) Rental income (1,200) (1,200) Rental expense 131,030 229,410 Interest income (86,051) (46,480) 7, Employee benefits expense Group 2013 2012 RM RM Wages and salaries 8,366,565 9,842,921 Social security contributions 15,326 15,299 Defined contribution plans 628,623 659,548 Other staff related expenses 554,876 2,152,810 9,565,390 12,670,578 Company 2013 2012 RM RM 100 : (137) Company 2013 2012 RM RM 564,774 882,969 1,240 1,758 75,760 73,622 244,575 231,885 800,232 886,349, Included in the employee benefits expense of the Group and of the Company are executive directors’ remuneration amounting to RM1,494,544 (2012: RM1,494,544) and RM453,744 (2012: RM453,744) respectively as disclosed in Note 8. a4000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 8, Directors‘ remuneration The details of remuneration receivable by directors of the Company during the year are as follows: Group 2013 2012 RM RM Executive: Salaries and other emoluments 1,044,000 1,044,000 Defined contribution plans 139,680 139,680 Allowances 174,000 174,000 Other benefits 136,864 136,864 Total executive directors’ remuneration 1,494,544 1,494,544 Non-executive: Directors' fees 78,000 78,000 Allowances 75,500 66,500 Total non-executive directors’ remuneration (Note 6) 153,500 144,500 Total directors’ remuneration 1,648,044 1,639,044 Company 2013 RM 324,000 38,880 54,000 36,864 453,744 78,000 42,000 120,000 873,744 2012 RM 324,000 38,880 54,000 36,864 453,744 78,000 40,500 118,500 872,244 The number of directors of the Company whose total remuneration generated from the Group during the financial year fell within the following bands is analysed below: Executive directors: RM1,450,001 to RM1,500,000 Non-executive directors: Below RMS50,000 2013 Number of directors 2012000222 D Pinehill Pacific Berhad {Incorporated in Malaysia) 9. Finance costs Group 2013 2012 RM RM (restated) Interest expenses on: - Hire purchases 39,558 54,260 - Term loans 4,76 4,80 During the year, there is a prior year adjustment arising from term loan interest capitalised to biological assets (Note 14(b)) as part of the cost of a qualifying asset as they are directly attributable {o the acquisition, construction or production of that asset. 40. Income tax expense Major components of income tax expense The major components of income tax expense for the years ended 30 June 2013 and 2012 are: Group Company 2013 2012 2013 2012 RM RM. RM RM (restated) Current income tax: - Malaysian income tax 4304645 6,414,106 374,383 345,862 = (Over/under provision in prior years 17,835) 67,540 9,439 37.370 286,810 Deferred income tax (Note 22): - Origination and reversal of temporary differences (1,353,316) (979,023) : - - Over provision in prior years (509,932) (65,582) (1,863,248) " (1,044,605) Income tax expense recognised in profit or loss 2,423,562 5,437,041 383,822 383,232 Domestic income tax is calculated at the Malaysian statutory tax rate of 25% (2012: 25%) of the estimated assessable (loss)/profit for the year. The corporate tax rate applicable to the Indonesia subsidiaries of the Group is the same with Malaysia at 25% (2012: 25%). 43000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 10. Income tax expense (cont'd.) ‘Taxation for other jurisdictions is caloulated at the rates prevailing in the respective jurisdictions. Reconciliation between tax expense and accounting (loss)/profi ‘The reconciliations between tax expense and the product of accounting (loss)/profit multiplied by the applicable corporate tax rate for the years ended 30 June 2013 and 2012 are as follows: Group 2013 2012 RM RM (restated) (Loss)/profit before tax (1,808,224) (1,378,756) Tax at Malaysian statutory tax rate of 25% (452,056) (344,689) Non-deductible expenses 6,110,247 5,915,199 Income not subject to taxation (2,706,863) (135,427) Over provision of deferred tax in prior years (509,931) (65,582) (Over)/under provision of income tax in prior years 17,835) 67,540 Income tax expense recognised in profit or loss 2,423,562 5,437,041 44 Company 2013 2012 RM RM 1,206,755 ___ 1,095,120 301,689 273,780 112,712 72,082 (40,018) - 39 383,822 383,232000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 11. Loss per share Basic loss per share amount is calculated by dividing loss for the year, net of tax, attributable to owners of the parent by the weighted average number of ordinary shares outstanding during the financial year. Group 2013 2012 (restated) Loss net of tax attributable to owners of the parent (RM) (431,000) (4,427,795) Weighted average number of ordinary shares 149,804,135 149,804,135 Basic loss per share (sen) (0.29) 2.96) ‘The Group has no potential ordinary shares in issue as at reporting date and therefore diluted loss per share has not been presented. 45AOL'Zev'oee _ySe's7s'9 _aPS'ZI6'S —_-LOV'GOL'ILeeePiG'G past izasz__- vOehILeSZ vos bLZogz - uonentea yy eve'ozl'6z = poe'zzs'9 «= ebS'zLe'S = Loo'gou'iL = eee'bis’'s =~ - yso0 Vv sBunuesoidoy LOVcey'98e “YSEZTS —"SPSTIGS LONNIE eee ISS vow tisogz__—- e0z eunr og v (es'pse) (g00'92) (6sz‘991) (69¢'22) (sve've) = > seouaiaysip SBUeYOXS poe'Lizie, - - - : voe'Liz'teL - uonenjency eor‘ziz') = GOP'ZIL - - - 7 uoneoyIsse;oy (ozs‘o1) {ozs‘oL) - - 7 - 7 JO SUM (esz'ggy'9) 7 . : - (esz'9er'9) lesodsiq e2z'e0e'z = ez0'66'L——ZLL'SGL vus‘oee eie'zzt : : suoMppY Sze'rs6'z6 ons'zsi'e —9es'ez6'S-—Zoz'zay'LL © BSZ'9ZP'S ~—OLO'0NS'S9~—asz'9RY'O zLoz Aing Lay uonenyen 10 ys09 e1oz eunr og 37 we we wei wa we wat tron syosse separ Aouryseus pu} puey dnoig JOO s030N pue weld. 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(9 8}0N) 420K ep 40} aB1eUD ozg9'Zoe'ze___eze'ovs'z___y6l's90's _—s00'se'a__—alg'or'y__—sea‘ee'eh ‘986 Bez 886 ez - 7 ~ 7 - $0880} quewuredus peyeinwinooy Zeo'eas'le SES'LOe'z —swEL'S90's © S00'sEN'a «OL 'Or'e ~=—sae'eer'el- uogelveidep peyeinuinooy bog Aine bay sesso] juewsreduy pue uonelsesdep payejnuinooy zoz eunr of 3v wa ine wa we we wet wa rewy syasse SO[D1yaA Auysew — sBuipying = puey pur] dnoig 2 Ovee +0101 PUEIUEd., — 998383, Ployeseoy—ployeesy (‘pguod) yrewdinbe pue sued ‘Ayedoig “Z) (eiskejep ut peyesodoouy) peyiog outoed 1yeutd a zzzo00000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 12, Property, plant and equipment (cont'd.) * Estate buildings consist of factory building, staff quarters and a freehold property. * Plant and machinery consist of plant, machinery, electrical installation and agricultural equipment, ** Other assets consist of furniture, fittings, office renovation, office equipment, computer equipment, road and bridges. Office renovation and electrical Company installation RM At 30 June 2013, Cost AU1 July 2012 and 30 June 2013, 665,124 Accumulated depreciation and impairment losses At 1 July 2012 Accumulated depreciation 458,456 Accumutated impairment losses 206,665 665,121 Charge for the year (Note 6) : At30 June 2013 665,121 Analysed as: Accumulated depreciation 458,456 Accumulated impairment losses 208,685, Net carrying amount At 30 June 2013 = “Other assets RM 684,229 646,603 32,323 678,926 3,638 682,564 650,244 32,323 682,564 1,685 Total RM 1,349,350 1,105,059 1,347,685 1,108,697 238,988 1,347,685 1,665000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 42. Property, plant and equipment (cont'd.) Office i renovation and 1 electrical “Other: Company installation assets Total RM RM RM At 30 June 2042 Cost Att July 2011 and 30 June 2012 665,121 684,229 1,349,350 Accumulated depreciation and impairment losses Att July 2011 Accumulated depreciation 458,257 636,357 1,094,614 Accumulated impairment losses 206,865 32,323 664,922 668,660 Charge for the year (Note 6) 199 40,246 At30 June 2012 665,121 Analysed as: Accumulated depreciation 458,456 646,603 1,105,059 Accumulated impairment losses 208,065 32,323 238,988 678,926 1,344,047 Net carrying amount At30 June 2012 : 5,303 5,303 ** Other assets consist of furniture, fillings, office equipment and computer equipment. (a) Short term leasehold estate land “The short term leasehold estate land consists of planted areas under oil palm cultivation in Mukim Changkat Jong, District of Hilir Perak, Malaysia. The remaining period of the lease of, land is 19 and 22 years. The short term leasehold estate land had been pledged to the financial institutions for borrowings as disclosed in Note 21 ‘The Group had previously revalued its short term leasehold estate land and had retained the unamortised revalued amount as the surrogate cost of prepaid lease payments in accordance with the transitional provision in FRS 117 in 2010. When the short term leasehold estate land was reclassified to property, plant and equipment in 2011, the Group continue to retain the unamortised amount as the surrogate cost. During the year, the short term leasehold land had been revalued by an independent professional valuer, Azmi & Co. The valuation is based on the open market value method. 51000222 D Pinehill Pacific Berhad {Incorporated in Malaysia) 42. Property, plant and equipment (cont'd.) (b) () (a) Assets held under hire purchase and financial lease agreement During the financial year, the Group acquired property, plant and equipment with an aggregate cost of RM2,308,228 (2012: RIM1,970,067) of which RM155,686 (2012: Nil) were acquired by means of hire purchase and finance lease arrangements. The carrying amounts of property, plant and equipment held under hire purchase and finance lease agreements at the reporting date were as follows: Group 2013 2012 RM RM Plant and machinery 138,789 177,200 Motor vehicles 229,114 160,766 367,200 337,966, Assets pledged as security ‘The freehold land, leasehold land, estate buildings and certain plant and machinery of the Group are pledged as security for borrowings as disclosed in Note 21. The freehold land has been sold on 3 August 2012 resulting in a gain of RM10,197,303 as disclosed in Note 6. Fully depreciated assets Included in property, plant and equipment are the cost of fully depreciated assets which are still in use as follows: Group Company 2013 2012 2013 2012 RM RM RM RM Estate buildings 3,859,674 3,859,676 : : Plant and machinery 6,597,366 6,280,844 : 7 Motor vehicles 3,045,997 3,060,768 : : Other assets 2,083,871 1,985,890 1,328,835 1,248,524 15,566,908 15,187,175 1,328,835, 7,246,524 52000222 D Pinehill Pa (Incorporated ic Berhad Malaysia) 13. Land use rights Group 2013 2012 RM RM (restated) Cost At 1 July 2012/2011 As previously stated 21,930,750 22,142,119 Effect of prior year adjustments (Note (b)) (10,476,412) (10,476,412) Reclassification (Note 14) 4,772,089 3,342,288 Exchange differences (258,997) (258,997) AU July 2012/2011 (restated) 75,967,430 14,748,998 Additions. 2,059,541 1,487,878 Exchange differences 292,251 At 30 June Accumulated ammortisation Att July 2012/2011 As previously stated Effect of prior year adjustments (Note (b)) At 1 July 2012/2011 (restated) 72,587,215 2,223,363 Charge for the year (Note 14(b)) 355,813 363,852 At 30 June Net carrying amount At 30 June 15,376,194 13,380,215 (a) Land use rights ("LUR") represent the short term leasehold land in the Republic of Indonesia acquired through the acquisition of Pinehill Ventures Limited and its subsidiaries. LUR had been approved for the development of oil palm plantation and the approval was extended to the subsidiaries incorporated in the Republic of Indonesia, namely, PT Makmur Jaya Malindo, PT Inma Jaya Group, PT indomal Sawit Jaya and PT Inma Makmur Lestari (collectively referred to herein as the "indonesian subsidiaries") in the form of Izin Lokast in 2005. With the Izin Lokasi, the Indonesian subsidiaries are allowed to do land clearing and planting of oil palm. All Indonesian subsidiaries had obtained the Izin Usaha Perkebunan Tetap ("IUPT") in 2010 declaring the final width of lands that have been successfully acquired and completed with physical activities as the basis for the Indonesian subsidiaries to apply for the cadastral for the application of Sertifikat Hak Guna Usaha ("HGU"), being the land title. ‘The Indonesian subsidiaries are in the process of applying to Badan Pertanahan Nasional Indonesia for the HGU. It will be granted for a lease period of 35 years with a renewable term of 25 years which is as per the relevant laws and regulations made to HGU in the Republic of Indonesia. 53000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 43. Land use rights (cont'd.) (b) The Indonesian subsidiaries initially secured 72,900 heclares of LUR for the development of oil palm plantation in the form of Izin Lokasi, The Indonesian subsidiaries need to obtain Memorandum of Understanding ("MoU") from the settlers of lands in order to move to the next stage of IUPT. The Indonesian subsidiaries managed to secure 40,180 hectares of IUPT and initially intend to pursue the balance of 32,720 hectares in 2010. However, due to difficult operating conditions and also financial constraint, the Indonesian subsidiaries did not pursue and hence the associated costs incurred in relation to the 32,720 hectares were written off accordingly as prior year adjustments. Amortisation is provided on the LUR for its expected lease period of 70 years. The adjustment has been made retrospectively by capitalising to biological assets amounting to RM2,587,215, 14, Biological assets | Group i 2013 2012 RM RM (restated) Cost Att July 2012/2011 As previously stated 148,977,762 131,582,954 Effect of prior year adjustments (Note (a)) 8,528,296 «4,203,304 Reclassification (Note 13) (4,772,089) (3,342,288) Exchange differences 258,997 258,997, Att July 2012/2011 (restated) 762,992,966 132,703,057 Additions (Note (b)) 9,366,950 23,726,058 Reclassification (1,712,409) (1,251,975) Exchange differences (3,796,485) (2,184,174 At30 June 756,851,022 152,992,966 Accumutated amortisation and impairment losses At1 July 2012/2011 33,932,674 29,369,998 Charge for the year (Note 6) 4,208,218 4,565,633 Reclassification (4,818) - Exchange differences 9,551) (2,957) At 30 June 36,126,523 33,932,674 Analysed as: Accumulated amortisation 38,126,523 33,932,674 ‘Accumulated impairment losses 133,960 133,960, t Net carrying amount | 30 June 2013 118,724,499 119,060,292 54000222 D Pinehill Pacific Berhad {Incorporated in Malaysia) 14, Biological assets (cont'd.) (a) Biological assets represent plantation development expenditure and replanting expenditure Which consist of expenses incurred in connection with the development of the oil palm plantation in the District of Hilir Perak, Malaysia and its Indonesian subsidiaries located at Kalimantan Barat in the Republic of Indonesia Prior to 2007, the PDE classified under property, plant and equipment was under the revaluation policy and the last valuation was carried out in 2005 and taken up in financial statements accordingly. During the financial year 30 June 2007, the Company adopted FRS 101 where the PDE was reclassified from “Property, Plant and Equipment” to “Biological Assets”. Accordingly the revalued amount of the PDE which was reclassified to “Biological Assets” has been retained as the surrogate carrying amount of POE. During the year, the Group adjusted retrospectively by capitalising the borrowing cost related to the development of oil palm plantation and amortisation of LUR in the Republic of Indonesia as they are directly attributable to the acquisition, construction or production of biological assets of RMS5,941,081 and RM2,687,216 respectively. The additions of biological assets include expenses incurred on plantation development expenditure and replanting expenditure, capitalisation of borrowing costs and amortisation of land use rights. Group 2013 2012 RM. RM (restated) Additions during the year 5,993,335 19,401,156 Capitalisation of borrowing cost 3,017,802 3,961,050 Amortisation of land use rights (Note 13) 355,813, 363,852 9,360,950__ 23,726,058 15. Investments in subsidiaries Company 2013 2012 RM RM Unquoted shares, at cost 81,608,556 81,608,556 Less: Accumulated impairment losses (13,000,400) __ (43,000,000) 68,608,456 "68,608,556. 55000222 D Pinehill Pacific Berhad (incorporated in Malaysia) 15, Investments in subsidiaries (cont'd.) Details of the subsidiaries are as follows: Name Held by the Company: Pinehill Plantations (Malaysia) Sdn Bhd ("Pinehill Plantations") Agri Business Advisory Services Sdn Bhd Held through Pinehill Plantations: Syarikat Kaum Melayu Hilir Perak Sdn Bhd Tahir, Rozlan and Tasariff Sdn Bhd Pinehill Ventures Limited # Held through Ventures Lit PT Makmur Jaya Malindo* Held through PT Makmur Jaya Malindo: PT Inma Jaya Group" PT Indomal Sawit Jaya* PT Inma Makmur Lestari* PT Sintang Sawit Lestari* Country of incorporation Malaysia Malaysia Malaysia Malaysia Labuan, Malaysia Indonesia Indonesia Indonesia Indonesia Indonesia 56 Proportion (%) of ownership 2013 2012 94.50 94.50 100 100 100 100 91.33, 91.33 70 70 80 80 95 95 99.88 99.88 99.88 99.88 99.88 99.88 Principal activities Oil palm cultivation and processing Dormant il palm cultivation Oi! paim cultivation Investment holding and plantation management service provider Oi pain cultivation and processing il palm cultivation and processing Dormant| 000222 D Pinehilt Pacific Berhad {Incorporated in Malaysia) 15. Investments in subsidiaries (cont'd.) 16. Proportion (%) of Country of ownership Principat Name incorporat 2013 2012 activities Held through PT Inma Makmur Lestari: PT Indomal Sawit Jaya* Indonesia 0.12 0.12 Oil palm cultivation and processing PT Sintang Sawit Lestari* Indonesia 0.12 0.12 Dormant Held through PT Sintang Sawit Lestari: PT Inma Makmur Lestari* Indonesia 0.12 0.12 Oil palm cultivation and processing Not required for statutory audit in Indonesia # Statutory audit in compliance with Offshore Companies Act, 1990 Inventories Group 2013 2012 RM RM Cost Oil palm products 460,522 841,833 Consumable inventories 1,368,710 922,662 Others = 1,075,134 TB17,232, 2,839,626 During the year, the amount of inventories recognised as an expense in cost of sales of the Group was RM12,523,197 (2012: RM10,271,918). 57000222 D Pinehill Pacific Berhad (incorporated in Malaysia) 47. Trade and other receivables Group Company 2013 2012 2013 2012 RM RM RM RM Trade receivables Third parties 384,075 352,565 : : Other receivables Sundry receivables 1,555,467 449,394 2,381,359 Amount due to a subsidiary - 7 - 2,130 Deposits 81,679 5,127 8.727 Prepayments 162,162 10,500 1,799,308 Total trade and other receivables 2,180,383 1,177,285 (2,397,586 18,357 Add: Cash and bank balances (Note 18) 2,358,059 3,753,714 3,625 5,590 Less: Prepayments (462,162) (74,640) 40,500) (10,500) Total loans and receivables 4,376,280 4 856,309 2,300,711 13,447_ Trade receivables are non-interest bearing and are generally on 7 to 15 days (2012: 7 to 15 days) terms. They are recognised at their original invoice amounts which represent their fair values on initial recognition Ageing analysis of trade receivables The ageing analysis of the Group's trade receivables is as follows: Group 2013 2012 RM RM Neither past due nor impaired 381,075 352,565 Receivables that are neither past due nor impaired Trade receivables that are neither past due nor impaired are creditworthy debtors with good payment records with the Group. None of the Group's trade receivables that are neither past due nor impaired have been renegotiated during the financial year. 58000222 D | Pinehill Pacific Berhad (incorporated in Malaysia) 47. Trade and other receivables (cont'd.) Sundry receivables that are impaired The Group's sundry receivables that are impaired at the reporting date and the movement of the allowance accounts used to record the impairment are as follows: Group 2013 2012 RM RM Sundry receivables - nominal amounts 4,679,210 Less: Allowance for impairment 123,743) = 7,555,467 = Movement in allowance accounts: Att July 2012 : Charge for the year 423,743, a At 30 June 2013 123,743 = 48. Cash and bank balances Group ‘Company 2013 2012 2013 2012 RM RM RM RM Cash at banks and on hand 2,328,559 465,337 3,625, 5,590 Short term deposits with a licensed bank 20,500 __ 3,288,377 : - Cash and bank balances 2,358,050 3,763,714 3625 5500 Short term deposits with a licensed bank of the Group amounting to RM29,500 (201 RM3,288,377) is pledged as security for a banking facility granted to a subsidiary. The weighted average effective interest rates of deposits with a licensed bank of the Group at the reporting date was 3.20% (2012: 3.05%). ‘The maturity of deposits with licensed bank of the Group as at the end of the financial year was 1 to 365 days (2012: 1 to 210 days).000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 19. Share capital 20. Number of ordinary shares Share capital AU July 2011 and at 30 June 2012 Att July 2012 and at 30 June 2013 Authorised share capital At July 2011 and 30 June 2012 Ordinary shares of RMO.50 each At 1 July 2012 and 30 June 2013 Ordinary shares of RMO.50 each Other reserves Group Att July 2011 Other comprehensive income: Foreign currency translation At 30 June 2012 Att July 2012 Other comprehensive income: Foreign currency translation Revaluation of leasehold land At30 June 2013 (issued and fully paid) 149,804,135, 149,804,135 60 : 1 Share Total share capital capital and (Issued and Share share fully paid) premium premium RM RM RM 74,902,067 74,902,087 74,902,067, = 74,902,087 Number of shares Amount RM 500,000,000___250,000,000 500,000,000 __ 250,000,000 Foreign currency Revaluation —_ translation reserve reserve Total RM RM RM 74,446,031 70,802 74,516,833 - 885,111 885,114 74,448,034 955,913 75,401,944 - 1,080,570 1,080,570 134,960,896 - 134,960,896 205,406,027 2,056,485 217 44S ATO000222 D Pinohill Pacific Borhad {Incorporated in Malaysia) 20. 24. Other reserves (cont'd.) (a) Revaluation reserve The revaluation reserve arose from the revaluation surplus from Mukim Changkat Jong, District of Hilir Perak land net of deferred taxation. {b) Foreign currency translation reserve The exchange reserve represents foreign exchange differences arising from the translation of the financial statements of foreign subsidiaries. Loans and borrowings Current Secured: Term loan 1 Term loan 2 Term loan 3 Hire purchase and finance lease liabilities (Note (2)) Non-current Secured: Term loan 1 Term loan 2 Term loan 3- TF i Term loan 3- TF i3 Hire purchase and finance lease liabilities (Note (2)) Total loans and borrowings Secured: Term loan 7 Term loan 2 Term loan 3 Hire purchase and finance lease liabilities (Note (2)) 61 Group 2013 2012 RM RM - 406,803 : 8,347,163 6,785,272 : 257,155 224,097 7,042,427 - 3,160,078 - 97,463,927 94,434,070 : 4,924,982 - 462,283 560,872 99,621,335 101,184,877 - 3,506,861 = 105,811,080 106,144,324 - 719,438 784,969 106,863,762 170,162,930000222 D Pinohill Pacific Berhad (Incorporated in Malaysia) 241. Loans and borrowings (cont'd.) Term loan 4 The term loan 4 is secured by the following: (i) First legal charge over the freehold land of a subsidiary of the Company, Pinehill Plantations as disclosed on Note 12(c); (i) Corporate guarantee issued by the Company; and (ii) Blanket assignment of future rental from premises to be constructed on the freehold land of Pinehill Plantations. The term loan 1 bears interest at 0.25% (2012: 0.25%) above the bank's base lending rate per annum, During the financial year, the term loan was satisfied in full through sale of freehold land to purchaser on 14 November 2012. Term loan 2 The term loan 2 is secured by the following: (i) First fixed legal charge over the leasehold land, estate buildings and certain plant and machineries of a subsidiary of the Company, Pinehill Plantations as disclosed on Note 12(c); (ii) Debenture creating fixed and floating legal charge over all present and future assets of Pinehill Plantations; and (ii) Corporate guarantee of RM120 million by the Company in favour of the bank. The term loan 2 bears interest at 1% to 1.5% (2012: 1% to 1.5%) above the bank's base lending rate per annum, During the financial year, the term loan was repaid in full through term loan 3 on 31 January 2013. 62000222 D Pinohill Pacific Berhad (incorporated in Malaysia) 21. Loans and borrowings (cont'd.) orm foan 3 Term loan 3 TF-i4 The term loan 3 TF-i 1 is secured by the following: (i) First fixed legal charge over the leasehold land, estate buildings and certain plant and machineries of a subsidiary of the Company, Pinehill Plantations as disclosed on Note 12(c), (li) Debenture creating fixed and floating legal charge over all present and future assets of Pinehill Plantations, (iil) Corporate guarantee of RM120 million by the Company in favour of the bank, (iv) Assignment of revenue proceeds from Pinehill Plantations and charge over the bank account, (v) Assignment of receivable from Pinehill Plantations, (vi) Pledge of 70% shares from a subsidiary, Pinehill Ventures Limited; and (vii) The term loan bears interest rate at cost of fund-i (*ECOF-i") plus 2.75% per annum. ‘Term loan 3 TE-i2 The term loan 3 TF-i 2 is secured by the following: (i) Pledging over 30% shares held by the Pinehill Ventures Limited, (ii) The term loan bears interest rate at cost of fund-i (“ECOF-i") plus 3.00% per annum. ‘There has been no drawdown of loan as at financial year ended 30 June 2013. Term loan 3 TF-i3 The term loan 3 TF-i 3 is secured by the following: {) Pledging all shares held by Pinehill Ventures Limited in ali Indonesian subsidiaries, (i) Assignment of revenue proceeds from subsidiary of the Company, Pinehill Plantations and charge over the bank account; and (ill) The term loan bears interest rate at cost of fund-i (*ECOF-i") plus 2.75% per annum. 63000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 21. Loans and borrowings (cont'd) Term loan 3 (cont'd. Term loan 3 TF-i3 (contd (a) Future minimum hire purchase and finance lease payments together with the present value of the hire purchase and finance lease payments are as follows: Group 2013 2012 RM RM Minimum hire purchase and finance lease payments: Not later than 1 year 291,438 251,700 Later than 1 year and not later than 2 years 234,239 251,700 Later than 2 years and not later than 5 years 198,950 356,627 Later than 5 years 70,248 13,281 794,875 873,308 Less: Future finance charges (75,437) (88,339) Present value of minimum hire purchase and finance lease liabilities 719,438 784,969 Present value of hire purchase and finance lease liabil Not later than 1 year 257,155 224,097 Later than 4 year and not later than 2 years 247,752 227,348 Later than 2 years and not later than 5 years 479,374 325,529 Later than 5 years 65,157 7,995 462,283 560,872 719,438 784,969 The hire purchase and finance lease liabilities bear flat interest during the financial year of between 2.21% to 4.65% (2012: 2.21% to 4.65%) per annum 64s9 20S bZL6L eor'e6l'e _OLV'e6S'| __SLo'66S'EL GPO ORL (soo"pro'l) = (szr'e01) = (o60'8+6) rT) z0z'991'0Z > gee'gos'e _OzI'ess't __SOu"ZLS'yL__686'ehL (zze"siss) F (ue'ssvesy = = plyize'se gee'906'€ —Zbr'sh'9S —SOL'LLS'yL 86'S. oveio'cg (eze'ecs) “pos Tig’ Ouest pog'6GS'09 Ose PZL Loe zose : 7 Los'zog'zy (spz'eoe'l) (gze'ces) = (6so'osL) = (z26'zve) (68z'9) eS'1Zu'6h gor'seu'e _oui'e6s'! __sio'ees‘el__sp9'0et (eze"ssies) = 7 (ze'ssV'say = : soe olZ'bL f91'86l' ZbP'sb/'9S ~SLo'eS'eL —BrO'OEL we wat wa we wet wa re, S190 syosse queunsnipe pue SeoueMo}Ie leoiBojorg = anjea ses —pjoyasee| so jeydeo uonenjeasy —poyeiajeo0y (payeysea) ZL0z oun Of WW (01 8}0N) $80} 40 youd ul pes|uBooey (pereises) LLoz Aine Lv sjusunsnipe se8f one paieys Ajsnoinaud sy boz Aine ba e102 aunr o¢ Wy Aunbs uy pesuBooey (01 ®10N) S80} 20 youd u} pastuBooey (peyeyses) Z102 Aine by squeWisn|pe Je8A Jotle, parers Ajsnomneud sy zhoz Aine baw dnoig Senmiqe xe; passeyeq “Zz (ersAeyew ur peyesodioou) peysog oy!ded IUeUtd azzzo00000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 23. 24, Trade and other payables Note Non current Amount due to a director (a) Current Trade payables (b) Other payables Acoruals Amount due to a subsidiary (0) Sundry payables 4 Total trade and other payables 2 ‘Add: Loans and Group 2013 2012 RM RM 5,490,826 8,219,709 7,687,045 __11,076,456 8,901,918 §,245,015 1,839,844 0,741,762 3,899,683 25,851,770 16,863,762 110,162,930 borrowings (Note 21) 10 Total financial liabilities carried at amortised cost 13 30,763,395, (a) Amount due to a director 136,014,700 39,308,469 ‘The amount due to a director is unsecured and non-interest bearing. (b) Trade payables Company 2013 2012 RM RM 826,560 718,881 38,400,337 37,518,551 81,572 131,337, 39,308,469 38,368,769 39,308,469 38,368,769 38,368,769 ‘These amounts are non-interest bearing, Trade payables are normally settled on 30 to 90 days (2012: 30 to 60 days) terms. (c) Amount due to a subsidiary The amount due to a subsidiary is unsecured, non-interest bearing and is repayable on demand. Related party transactions Dividend income from Pinehill Plantati ions 66 Company 2013 2012 RM RM 2,381,959 2,361,359000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 24, Related party transactions (cont'd.) The remuneration of key management personne! during the financial year is as follows: Group Company 2013 2012 2013 2012 RM RM RM RM Short term employee benefits 2,849,985 3,181,467 711,153 764,613 Defined contribution plan 252,012 259,981 61,206 63,288 3,107,997 4471 448 772,449 827,901 Included in the total remuneration of key | management personnel is: | Group Company i 2013 2012 2013 2012 RM RM RM RM Directors’ remuneration (Note 8) 1,648,044 1,639,044 573,744 872,244 25. Commitments Group 2013 2012 RM RM Rental commitments: - Due within 1 year 43,200 104,861 i - Due within 2 to 5 years 48,000 24,600 61,200 126,461 26. Prior year adjustments ("PYA") and comparative figures {a) Prior year adjustments ("PYA") ‘The prior year adjustments were made in respect of the following: (i) Capitalisation of borrowing cost During the year, the Group adjusted retrospectively its borrowing cost related to the development of oll palm plantation by capitalising to biological assets as part of the cost of a qualifying asset as they are directly attributable to the acquisition, construction or production of that qualifying asset. 67000222 D Pinohill Pacific Berhad (Incorporated in Malaysia) 26. Prior year adjustments ("PYA") and comparative figures (cont'd.) (a) Prior year adjustments ("PYA") (cont'd) (i) Impairment of LUR As disclosed in Note 13(b), the Indonesian subsidiaries initially secured 72,900 hectares of LUR for the development of oil palm plantation in the form of Izin Lokasi, The Indonesian subsidiaries need to obtain Memorandum of Understanding ("MoU") from the settlers of lands in order to move to the next stage of IUPT. The Indonesian subsidiaries managed to secure 40,180 hectares of UPT and initially intend to pursue the balance of 32,720 hectares in 2010. However, due to difficult operating conditions and also financial constraint, the Indonesian subsidiaries did not pursue and hence the associated costs incurred in relation to the 32,720 hectares were written off accordingly as prior year adjustments, | (iil) MFR written off As at current financial year, the Indonesian subsidiaries had written off 9,341 hectares i of forested land out of its pre-allocated 25,625 hectares resulting in the balance MFR area of 16,284 hectares as at 30 June 2013. Therefore, the net financial effect after taxation and non-controlling interest were written off o the retained earnings. (iv) During the financial year, the Group engaged an independent forester to survey and determine the existence of the remaining 16,284 hectares of timbers available in the forest. The Group has also in previous years performed valuation to determine the commercial value of the remaining MFR. The Group faced with difficult operating conditions and licensing issue to sell or export the timbers since 2009. Therefore, the Group is unable to demonstrate a future economic benefits to be generated from the remaining forest timber resources. Arising from this, the Group has decided to further write off the remaining MFR as prior year adjustment. The financial effects of the above prior year adjustments in the financial position and results of the Group are as follows Group 2012 RM Effect on retained earnings: AL July 2011, as previously stated (29,587,316) Effects of prior year adjustment (i) 1,018,604 Effects of prior year adjustment (ii) (4,213,377) Effects of prior year adjustment (ii) (25,896,233) | Effects of prior year adjustment (iv) (56,178,552) Att July 2011 (restated) (114,856,874) Effects of prior year adjustment (i) 2,068,978 Effects of prior year adjustment (iv) 239,833 Loss for the year as previously stated (6,736,606) | At 30 June 2012 (restated) (719,284,669) 68000222 D Pinohill Pacific Borhad (incorporated in Malaysia) 26. Prior year adjustments ("PYA") and comparative figures (cont'd.) (a) Prior year adjustments (*PYA") (cont'd.) Group 2012 RM Effect on non-controlling interests: At 1 July 2011, as previously stated 81,703,548 Effects of prior year adjustment (i) 961,427 Effects of prior year adjustment (3,832,054) Effects of prior year adjustment (ii) (24,026,943) Effects of prior year adjustment (iv) 52,310,981 Att July 2011 (restated) 2,494,997 Effects of prior year adjustment (i) 1,892,072 Loss for the year as previously stated (4,280,074) Other comprehensive income 246,881 Dividends of a subsidiary (111,784 At 20 June 2012 (restated) 242,095 Effect on loss for the year: As previously stated (11,016,680) Effects of prior year adjustment (i) 3,961,050 Effects of prior year adjustment (iv) 239,833 Loss for the year (restated) (815,797, {b) Comparative figures The presentation and classification of items in the current year financial statements have been consistent with the previous year except that certain comparative amounts have been reclassified arising from prior year adjustments effected during the financial year. As previously As stated Adjustments restated RM RM RM Group At 30 June 2012 ‘Statement of comprehensive income Administrative and other expenses (21,698,738) 239,833 (21,458,905) Finance costs (8,168,827) 3,961,050 (4,207,777) Statement of financial position Land use rights 21,930,750 (8,550,535) 13,380,215 Biological assets 115,045,088 4,015,204 119,060,292 Merchantable forest resources 210,897,167 (210,897,167) a Accumulated losses (26,323,922) (82,960,747) (119,284,669) Non-conttolling interests 77,558,574 (77,316,479) 242,095 Deferred tax liabilities 74.276,869__ (55,155,272) 19,121,597 69000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 26. Prior year adjustments ("PYA") and comparative figures (cont'd.) (b) Comparative figures (cont'd) As previously As stated Adjustments restated RM RM RM ‘At 30 June 2011 Statement of comprehensive income Finance costs (7,982,569) 1,980,031, (6,002,538) Statement of financial position Land use rights 22,142,119 (9,616,484) 12,525,635 Biological assets 102,212,956 4,120,103 103,333,059 Merchantable forest resources 211,137,000 (211,137,000) a Accumulated losses (29,587,316) (85,269,558) (114,856,874) Non-controlling interests 81,703,548 (79,208,551) 2,494,997 Deferred tax liabilities 75,321,474 (55,155,273) 20,166,201 27. Financial guarantee At the reporting date, the Company's maximum exposure to credit risk is represented by a nominal amount of RM106,144,324 (2012: RM109,377,963) relating to a corporate guarantee provided by the Company to financial institutions for credit facilities granted to a sub: 28. Fair value of financial instruments Determination of fair value Financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value The followings are classes of financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value: Note Loans and receivables 17,18 Loans and borrowings 24 Trade and other payables 23 ‘The carrying amounts 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. 70000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 28. Fair value of financial instruments (cont'd.) Determination of fair value (cont'd.) ncial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value (con! 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 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 al the reporting date. 29. Financial risk management objectives and policies The Group and the Company are exposed to financial risks arising from their operations and the use of financial instruments. The key financial risks include credit risk, liquidity risk, interest rate risk and foreign currency risk. The Board of Directors review and agree policies and procedures for the management of these risks, which are executed by the Group Finance Executive Vice President. The audit committee provides independent oversight to the effectiveness of the risk management process. Itis, and has been throughout the current and previous financial year, the Group's policy that no derivatives shall be undertaken except for the use as hedging instruments where appropriate and cost-efficient, The Group and the Company do not apply hedge accounting. The following sections provide details regarding the Group's and the Company's exposure to the above-mentioned financial risks and the objectives, policies end processes for the management of these risks. {a) Credit risk Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations. The Group's and the Company's exposure to credit risk arises primarily from trade and other receivables. For other financial assets (including cash and bank balances), the Group and the Company minimise oredit risk by dealing exclusively with high credit rating counterparties. ‘The Group's objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure. The Group trades only with recognised and creditworthy third parties. Itis the Group's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts is not significant. nm000222 D Pinehill Pacific Berhad {incorporated in Malaysia) 29, Financial risk management objectives and policies (cont‘d.) (b) Liquidity risk ty risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Group's and the Company's exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities, The Group's and the Company's objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilites. Analysis of financial instruments by remaining contractual maturities The table below summarises the maturity profile of the Group's and of the Company's liabilities at the reporting date based on contractual undiscounted repayment obligations. lovecerenanee = 201 Bennnnenn enteaneeh On demand or within tyear 1toSyears Over 5 years Total RM RM RM RM. Group Financial liabilities: Trade and other payables 18,408,807 5,490,826 - 23,899,633 Loans and borrowings 14,828,307 __ 80,176,300 __43,566,749 138,571,446 Total undiscounted financial liabilities 33,237,204 85,687,126 43,566,749 _ 162,471,079 Company Financial liabilities: Trade and other payables, representing total undiscounted financial liabilities 39,308,469 : = 39,308,469 72000222 D Pinehill Pacific Berhad {Incorporated in Malaysia) 29, Financial risk management objectives and policies (cont'd.) (b) (c) (d) Liquidity risk (cont'd.) I nee 20 12: On demand or within year to 5years Over 5 years Total RM RM RM RM Group Financial liabilities: Trade and other payables 17,632,061 8,219,709 - 25,851,770 Loans and borrowings 15,022,257 79,447,889 __60,525,612__ 144,995,758 Total undiscounted financial liabilities 32,654,318 87,667,598 50,525,612 _ 170,847,528 Company Financial liabilities: Trade and other payables, representing total undiscounted financial liabilities 38,368,769 : =. 38,368,769 Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of the Group's and of the Company's financial instruments will fluctuate because of changes in market interest rates. The Group's policy is to manage interest cost using a mix of fixed and floating rate debts. The Group actively reviews its debt portfolio, taking into account the investment holding period and nature of its assets. This strategy allows it to capitalise on cheaper funding in a low interest rate environment and achieve a certain level of protection against rate hikes. Sen: analysis for interest rate risk At the reporting date, if interest rates had been 50 basis points higher/lower, with all other variables held constant, the Group's loss net of tax would have been RM533,457 (2012: RIMS50,815) higher/lower respectively, arising mainly as a result of higherilower interest expense on loans and borrowings. 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. 73900222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 29, Financial risk management objectives and policies (cont'd.) (d) Foreign currency risk (cont'd) ‘The Group is mainly exposed to United States Dollars ("USD") and indonesian Rupiah (IDR"). Foreign currency denominated assets and liabiliies together with expected cash flows from highly probable purchases and sales give rise to foreign exchange exposures. Foreign exchange exposures in transactional currencies other than functional currencies of the operating entities are kept to an acceptable level. Material foreign currency transaction exposures are hedged mainly by derivative financial instruments such as foward foreign exchange contracts. As at reporting date, the Group had not entered into any forward foreign exchange contracts, Sensitivity analysis for foreign currency. The following table demonstrates the sensiivity of the Group's loss net of tax to a reasonably possible change in the USD and IDR exchange rates against the respective functional currencies of the Group entities, with all other variables held constant. | Group Increase) _Increasel (decrease) in (decrease) in loss net of loss net of tax tax 2013 2012 RM RM USDIRM - strengthened 3% (2012: 3%) 5,502 5,348 - weakened 3% (2012: 3%) (6,502) (5,348) IDRIRM - strengthened 3% (2012: 3%) 1,281,774 1,631,545 - weakened 3% (2012; 3%) (1,281,774 1,631,545 30. Capital management The primary objective of the Group's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. The Group manages its capital structure and makes adjustments to i, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the years ended 30 June 2013 and 30 June 2012. 74000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 30. Capital management (cont'd.) The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group's policy is to keep the gearing ratio of not more than 60%. The Group includes within net debt, loans and borrowings, trade and other payables, less cash and bank balances. Capital includes equity attributable to the owners of the parent. Group ‘Company 2013 2012 2013 2012 RM RM RM RM (restated) Loans and borrowings 106,863,762 110,162,930 : - ‘Trade and other payables 23,899,633 25,851,770 39,308,469 38,368,769 Less: Cash and bank balances __(2,358,059) _ (3,753,714) 5,590} 6,590) Net debt 128,405,336” 132,260,986 _ 39,302,879 38,363,179 Equity attributable to the ‘owners of the parent, representing total capital 166,629,808 ___ 31,019,342 31,568,519 __30,745,586 Capital and net debt 295,035,144 _ 163,280,928 70,871,398 __ 69,108,765 Gearing ratio 44% 81% 55%, 56% 31, Segment information For management purposes, the Group is organised into business units based on their products and services, and has two reportable operating segments as follows: (i) The plantation segment is in the business of cultivation of oil palm and processing of palm oil, It offers crude palm oil, palm kernel and other oil palm products for sale. (ii) The investment holding segment refers to the Company with investments in subsidiaries and providing management services to its subsidiaries, Except as indicated above, no operating segments has been aggregated to form the above reportable operating segments. 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, 15d OL GIS ESO LLL LSE yeESIE O€S'LE LOL —LBTOLO'ESL SOrOkeee OZEIHEDE vErsEere PrEasE'SZ senniqen quowBeg ese'rle'zoz ozotves'ose «=F (2eR'9Lb'ee) (SsO'Les‘Ze) OzL'zz Lise eeL'rOLOre BSL 'v6r'yer sjesse juowlheg eo'rer'uz sizvever oa - - - G00'reI'ZZ © SLL'VEL'EL ~—Stasse yusuino -uou 0} uonIppY sissy (esreien) (vee'sos't) = (eev'eas's) (ooz'zerz) éervedr osevoct leserry oeseorr youd Ksso}) 1usui8og, eue'ces'h = eee'ere’s : - - eue'ees'y — czz'sre's sosuedxe ySeO-UOU JBI Luvses'e —06y'z9L'y - - srv'or ese zeL'vie'e —Lse‘esi'y vonetesdeg oar'ey sg0'ss - 7 Zeb - eve'on Lso'9s sunsey BESEEZEY BBE EIN OE (eseiee2) (ese ieez) 6c lsez Sse leez —ees'eerey SBE GIG Oe — onuEAEI E10) 7 7 v (eseleez) (eseleez) estlesz estiecz — = quewBes-se}u) ses'eez'ey —gae'696'0e 7 7 - - eeS'eez'ey —eee'6ge'0E §=—SowioySno yeweyg anuisnsy (pareysos) wa wet wt wa was wa wa we zoe eboz zLoz eb0z zhoz Loz zroz ehoz SWUSWUaIE'S feIUeUY BION suopeuuine Buipioy weunsenuy uopeqwelg peyepllosuos 19g pue sjueunsnipy (pauos) uoneuosur juowiBag ‘Le (e1skeye ut peyesodioou)) pewiog outed 1hY8UId azzzoo0000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 31, Segment information (cont'd.) Notes Nature of adjustments and eliminations to arrive at amounts reported in the consolidated A financial statements. Inter-segment revenues are eliminated on consolidation. Other material non-cash expenses consist of the following items as presented in the respective notes to the financial statements: Note 2013 2012 RM RM (restated) Amortisation of biological assets 6 4,208,218 4,565,633 Property, plant and equipment written off 6 : 47,740 Inventories written off 6 913,262 : Allowance for doubtful debts 6 423,743 5,245,223 4,583,373, The following items are deducted from segment profit to arrive at ‘Loss before tax from operations” presented in the consolidated statement of comprehensive income: 2013 2012 RM RM (restated) Finance costs (4,800,841) (4,207,777) Loss from inter-segment sales 2,381,959) (2,381,359) 7,482,200} (6,589,136) Additions to non-current assets consist of: Note 2013 2012 RM RM (restated) Property, plant and equipment 12 2,308,228 1,970,067 Land use rights 13 2,059,541 1,487,878 Biological assets 14 9,366,950 __ 23,726,058 45,734,719 27, 164,008 The following items are deducted from segment assets to arrive at total assets reported in the consolidated statement of financial position: 2013 2012 RM RM Inter-segment assets (38,416,897) __ (37,531,055) 7000222 D Pinehill Pacific Berhad (Incorporated in Malaysia) 31. Segment information (cont'd.) Notes Nature of adjustments and eliminations to arrive at amounts reported in the consolidated financial statements. (cont'd.) F The following items are added/(deducted) to segment liabilities to arrive at total liabilities reported in the consolidated statement of financial position: 2013 2012 RM RM (restated) Deferred tax liabilities 65,061,310 19,121,597 Income tax payable 19,499,652 15,917,222 Loan and borrowings 106,863,762 110,162,930 Inter-segment liabilities (38,398,037) _ (37,514,119) 153,026,687 107,687,630 Geographical information Revenue and non-current assets information based on the geographical location of customers and assets respectively are as follows: Revenues 2013 2012 2013 RM RM RM Malaysia 30,614,833 43,073,267 291,645,165 Indonesia 354,555 220,271 __ 88,983,781 30,969,388 43,293,538 380,628,946 Non-current assets 2012 RM (restated) 113,287,650 81,256,731 794,544,381 Non-current assets information presented above consist of the following items as presented in the consolidated statement of financial position. 2013 RM Property, plant and equipment 246,528,253 Land use rights 15,376,194 118,724,499 Biological assets 78 380,628,946 2012 RM (restated) 62,103,874 13,380,215 119,060,292 794,544,387000222 D Pinehill Pacific Berhad (incorporated in Malaysia) 32. Significant and subsequent events () As announced on 3 August 2012, the Group disposed two (2) parcels of freehold land held under GRN 25057 to 25058 Lot No. 44 to 45, Seksyen 96, Bandar Kuala Lumpur, Daerah Kuala Lumpur, Witayah Persekutuan for a total cash consideration of RM16,684,062 to Tungling Corporation Sdn Bhd. The sale transaction was completed on 4 December 2012 with a gain of RM10,197,303. (ii) On 9 January 2013, the Group has accepted the Islamic Financing Facility ("Facility") under the Term Financing-i Facility and the Overseas Project Financing-i Facility in the total amount of RM200.0 milion ("the Facility") granted by Export-Import Bank Of Malaysia Berhad ("Exim Bank’) for the following purposes: (a) fo redeem 100% outstanding balance of existing financing of its subsidiary, Pinehill Plantations with Bank Kerjasama Rakyat Malaysia Berhad, (b) to part finance the working capital requirement of the indonesia subsidiaries of Pinehill Plantations to secure land titles and to develop and manage the oil palm activilies as well as to construct a Palm Oil Mill ("POM") in the Republic of Indonesia; and (c). to part finance the proposed acquisition by Pinehill Plantations of the remaining 30% equity interest in Pinehill Ventures Limited. (ili) As announced on 2 October 2013, Pinehill Plantations, a subsidiary of the Company, had acquired the remaining 750,000 shares representing 30% of the entire equity interest in Pinehill Ventures Limited from Radiant Bridge Sdn Bhd. The proposed acquisition had been completed on 1 October 2013. 79000222 D Pinohill Pacific Berhad (Incorporated in Malaysia) 33. Supplementary information The breakdown and components of accumulated losses are identified and disclosed in accordance with the listing requirement of Bursa Securities as follows: Group Company 2013 2012 2013 2012 RM RM RM RM (restated) Total accumulated losses of the Company and its subsidiaries - Realised (108,165,473) (112,640,952) (43,333,548) (44,156,481) - Unrealised (11,550,196) _(6,644,317) = ~ (119,715,669) (119,284,669) ~ (43,535,548) (44,166,484) Less: Consolidation adjustments - Accumulated losses as per financial statements (419,715,669) (119,284,669) _ (43,333,548) __ (44,156,481) 80