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.