Exemption from the requirement of the financial year end of new subsidiaries to coincide with that of the holding company
Pursuant to Section 168 of the Companies Act, 1965, the financial year end of the Company’s two newly acquired foreign subsidiaries, ABC Pte Ltd and DEF Pte Ltd, are required to coincide with the financial year end of the Company within two years from date of acquisition.
However, upon the approval obtained from Companies Commission of Malaysia (“CCM”) on XX, the financial year end of these two foreign subsidiaries need not be coterminous with that of the financial year end of the Company.
For the purpose of the preparation of the consolidated financial statements of the Group for the current financial year ended 31 December 2010, the financial statements of these two foreign subsidiaries drawn up for the same period were audited. Such practice of having the financial statements of the two subsidiaries for the same period with that of the Company audited for the purpose of preparing consolidated financial statements of the Group has been adopted and would be applied for future years.