Capital commitments contracted but not provided for in the financial statements are as follows:
On 1 April 2010, the Company entered into a sale and purchase agreement (“SPA”) to purchase a piece of land for a consideration of RM49 million. As at the date of this report, the Company has paid a deposit sum of RM4.9 million, representing 10% of the purchase consideration of the said land. Settlement of the balance sum is currently pending fulfilment of certain key SPA conditions by the vendor.
Property construction-in-progress is stated at cost and not depreciated. The property would be transferred to property, plant and equipment or investment property (depending on the intended purpose and use of the property) upon completion.
Note: The balance of unrecognized amount of property construction-in-progress compared to the contracted full price is disclosed as capital commitment
Capital work-in-progress is stated at cost and not depreciated. Depreciation on capital work-in-progress commences when the assets are ready for their intended use.
Note: This is usually disclosed as an asset category of property, plant and equipment. The balance of unrecognized amount of capital work-in-progress compared to the contracted full price is disclosed as capital commitment