Capital Commitments
|
2009 |
2008 |
|
|
RM |
RM |
|
| Approved and contracted: |
|
|
| Purchase of property, plant and equipment |
20,000 |
15,000 |
| Approved but not contracted: |
|
|
| Purchase of property, plant and equipment |
10,000 |
12,000 |
|
30,000 |
27,000 |
Long term receivables
|
2009 |
2008 |
|
|
RM |
RM |
|
| Amount due from subsidiary companies |
800,000 |
700,000 |
| Amount due from associated companies |
500,000 |
500,000 |
|
1,300,000 |
1,200,000 |
The above amounts due from subsidiaries and associated companies are unsecured, interest free and are not repayable within the next twelve months except for amount due from subsidiaries amounting to RM200,000 (2008 – RM100,000) which are subject to interest at 5% (2008 – 5%) per annum.
Change Of Name
Pursuant to the Extraordinary General Meeting of the shareholders held on 3 January 2009, the name of the Company was changed from ABC Sdn. Bhd. to DEF Sdn. Bhd..
Note: This is disclosed in Directors’ Report and Notes to the financial statements. Throughout the Directors’ Report, Statement By Directors, Statutory Declaration by director/officer, Auditors’ Report and Financial Statements including notes, the name of the Company would be presented as “DEF Sdn. Bhd. (formerly known as ABC Sdn. Bhd.)
INVESTMENT IN ASSOCIATES
Investment in associates consists of:
|
|
Group |
Company |
||
|
|
2009 |
2008 |
2009 |
2008 |
|
|
RM |
RM |
RM |
RM |
|
At Cost: |
|
|
|
|
|
Quoted shares |
400,000 |
400,000 |
400,000 |
400,000 |
|
Unquoted shares |
500 |
500 |
500 |
500 |
|
|
400,500 |
400,500 |
400,000 |
400,000 |
|
Share of post -acquisition results, net of dividend received |
230,128 |
245,750 |
– |
– |
|
Impairment loss |
(100,500) |
(100,500) |
(100,500) |
(100,500) |
|
|
530,128 |
545,750 |
299,500 |
299,500 |
|
At Market Value |
|
|
|
|
|
Quoted shares |
501,850 |
487,154 |
501,850 |
487,154 |
|
|
|
|
|
|
The following information relates to the associates which are all incorporated in Malaysia.
|
Name of Companies |
Effective Equity Interest |
Principal Activities |
|
|
2009 |
2008 |
||
|
|
|
|
|
|
Held by the Company |
|
|
|
|
ABC Berhad |
42.00% |
42.00% |
Investment holding and property development |
|
Held through indirect subsidiary, XYZ Sdn Bhd |
|
|
|
|
EFG Berhad |
40.00% |
40.00% |
Provision of property management services |
|
HIJ Sdn Bhd |
40.00% |
40.00% |
Dormant |
As at day/month/year, investment in a quoted associate of the Company with carrying value amounting to RMXXX,XXX (2008: RMXXX,XXX) has been charged to a licensed bank for banking facilities stated in Note XX.
The directors are of the opinion that the allowance for impairment loss as of year end is adequate as the carrying value of the investment approximates the net assets of the associates.
The summarised financial information in respect of the Group’s associates are as follows:
|
Group |
||
|
Assets and liabilities |
2009 |
2008 |
|
Current assets |
1,820,137 |
1,756,842 |
|
Non-current assets |
1,589,630 |
1,642,693 |
|
Total assets |
3,411,776 |
3,401,543 |
|
Current liabilities |
-2,568,461 |
-2,948,763 |
|
Non-current liabilities |
-251,836 |
–164,687 |
|
Total liabilities |
-2,820,297 |
-3,113,450 |
|
Net Assets |
591,479 |
288,093 |
|
The Group’s share of net assets |
236,592 |
115,237 |
|
Results |
||
|
Revenue |
354,262 |
249,867 |
|
Profit for the financial year |
65,317 |
4,512 |
The results of ABC Berhad and its subsidiaries (“ABC Group”) have been equity accounted for and included in the financial statements of the Group based on the latest audited financial statements.
Auditors’ report of the ABC Group for the financial year ended day/month/year
In the auditors’ report, the auditors have included an emphasis of matter in respect of the use of going-concern as the basis for the preparation of the financial statements of the ABC Group.
The auditors reported that the financial statements of ABC Group and have a net current liabilities of RMXXX million and RMXXX million respectively as at day/month/year. However, the financial statements of the ABC Group and of ABC Berhad have been prepared on a going concern basis. The application of the going concern basis is based on the assumption that ABC Group and ABC Berhad will be able to complete the Financial Regularisation Plan within the anticipated timeframe and that the ABC Group will be able to achieve sustainable and viable operations in the foreseeable future and consequently, the realisation of the assets and settlement of liabilities in the normal course of business. In this connection, the directors of ABC Berhad are confident that the Financial Regularisation Plan would be completed successfully within the anticipated timeframe.
Accordingly, the financial statements do not include any adjustments relating to the recoverability and classification of assets and the classification of liabilities that might be necessary should ABC Group be unable to continue as a going concern.
Plantation Development Expenditure
Plantation development expenditure comprises assets held for plantation development activities. These assets include land and buildings used for the purpose of plantation development, infrastructure costs such as roads and bridges attached on the plantation estates, cost of planting and development of crops.
This is stated at cost less accumulated depreciation and impairment losses, if any. Freehold land is stated at cost and is not depreciated.
Depreciation is calculated on the straight-line method to write off the cost over their estimated useful lives. The principal annual rates of depreciation are:
Freehold buildings 2%
Leasehold buildings over the lease period
Bridges and roads 5%
Mature plantations 25 years
Cost of preparation of agriculture land, planting, replanting and upkeep of crops, together with other incidental costs are capitalised as immature plantations and transferred to mature plantations account when the trees have matured and meet the criteria for commercial production.
Mature plantations are amortised over the estimated productive life of the trees estimated to be 25 years. The period of the plantations’ yield was determined by vegetative growth calculated and estimated by the management.
Replanting expenditure is expensed to the income statement immediately in the year in which the expenditure is incurred.
Self-generating and regenerating assets (SGARAs)
Increment or decrement in the net market values of SGARAs is recognised as revenue or cost in the income statement of the year in which the increment or decrement occurs.
