Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
and its subsidiaries
Financial statements for the year
ended 31 December 2010
1
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
and its subsidiaries
Directors’ report for the year ended 31 December 2010
The Directors have pleasure in submitting their report and the audited financial statements of the
Group and of the Company for the year ended 31 December 2010.
Principal activities
The principal activities of the Company are property development, building construction, investment
holding and property investment.
The principal activities of the subsidiaries are stated in Note 7 to the financial statements.
There have been no significant changes in the nature of these activities during the financial year.
Results
Profit for the year attributable to owners of the Company
Group
RM
Company
RM
18,619,891
13,536,437
Reserves and provisions
There were no material transfers to or from reserves and provisions during the year except as
disclosed in the financial statements.
Dividend
The Directors recommend a first and final dividend of 5% less 25% tax, totalling RM7,156,979 in
respect of the year ended 31 December 2010, which is subject to the approval of shareholders at the
forthcoming Annual General Meeting of the Company.
Company No. 94528 - T
2
Directors of the Company
Directors who served since the date of the last report are :
Chan Leong Foon
Dato’ Chan Fook Sing
Chan Fook Sun
Chan Fook Hean
Diong Chin Teck
Moo Shiew Ming
Teoh Choo Ee
- Executive Chairman
- Managing Director
- Executive Director
- Executive Director
In accordance with Article 93 of the Company’s Articles of Association, Mr. Chan Fook Hean and
Mr. Moo Shiew Ming retire by rotation from the Board at the forthcoming Annual General Meeting
and, being eligible offer themselves for re-election.
In accordance with Section 129 (6) of the Companies Act, 1965, Mr. Chan Leong Foon and Mr.
Diong Chin Teck retire at the forthcoming Annual General Meeting and, offer themselves for reelection as Directors of the Company until the conclusion of the next Annual General Meeting.
Directors’ interests
The interests and deemed interests in the ordinary shares of the Company and of its related
companies (other than wholly-owned subsidiaries) of those who were Directors at year end
(including the interests of the spouses or children of the Directors) as recorded in the Register of
Directors’ Shareholdings are as follows :
Company
Number of ordinary shares of RM1 each
Balance at
Balance at
1.1.2010
Bought
Sold
31.12.2010
Chan Leong Foon :
Direct interest :
- own
Deemed interest :
- own
- others *
211,000
-
-
211,000
78,467,610
374,400
-
-
78,467,610
374,400
244,300
-
-
244,300
78,467,610
-
-
78,467,610
Dato’ Chan Fook Sing :
Direct interest :
- own
Deemed interest :
- own
Company No. 94528 - T
3
Directors’ interests (continued)
Number of ordinary shares of RM1 each
Balance at
Balance at
1.1.2010
Bought
Sold
31.12.2010
Chan Fook Sun :
Direct interest :
- own
Deemed interest :
- own
55,000
-
-
55,000
78,467,610
-
-
78,467,610
22,000
-
-
22,000
78,467,610
-
-
78,467,610
20,000
-
-
20,000
10,000
-
-
10,000
-
-
-
-
Chan Fook Hean :
Direct interest :
- own
Deemed interest :
- own
Diong Chin Teck :
Direct interest :
- own
Moo Shiew Ming :
Direct interest :
- own
Teoh Choo Ee
Direct interest :
- own
5,000
5,000
Subsidiary
- Asas Land Development Sdn. Bhd.
Chan Leong Foon
Direct interest :
- own
2
2
Company No. 94528 - T
4
Directors’ interests (continued)
*
these are shares held in the name of the spouse and children in accordance with Section
134(12)(c) of the Companies Act, 1965.
By virtue of their interests of more than 15% in the shares of the Company, Mr. Chan Leong Foon,
Dato’ Chan Fook Sing, Mr. Chan Fook Sun and Mr. Chan Fook Hean are also deemed to have
interests in the shares of all its subsidiaries to the extent the Company has an interest.
Directors’ benefits
Since the end of the previous financial year, no Director of the Company has received nor become
entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments
received or due and receivable by Directors as shown in the financial statements) by reason of a
contract made by the Company or a related company with the Director or with a firm of which the
Director is a member, or with a company in which the Director has a substantial financial interest
other than transactions entered in the ordinary course of business between certain companies in the
Group and companies in which certain Directors have substantial financial interests as disclosed in
Note 27 to the financial statements.
There were no arrangements during and at the end of the financial year which had the object of
enabling Directors of the Company to acquire benefits by means of the acquisition of shares in or
debentures of the Company or any other body corporate.
Issue of shares and debentures
There were no changes in the authorised, issued and paid-up capital of the Company during the
financial year.
There were no debentures issued during the financial year.
Options granted over unissued shares
No options were granted to any person to take up unissued shares of the Company during the
financial year.
Company No. 94528 - T
5
Other statutory information
Before the statements of comprehensive income and statements of financial position of the Group
and of the Company were made out, the Directors took reasonable steps to ascertain that:
i) all known bad debts have been written off and adequate provision made for doubtful debts, and
ii) any current assets which were unlikely to be realised in the ordinary course of business have
been written down to an amount which they might be expected so to realise.
At the date of this report, the Directors are not aware of any circumstances:
i) that would render the amount written off for bad debts, or the amount of the provision for
doubtful debts in the Group and in the Company inadequate to any substantial extent, or
ii) that would render the value attributed to the current assets in the financial statements of the
Group and of the Company misleading, or
iii) which have arisen which render adherence to the existing method of valuation of assets or
liabilities of the Group and of the Company misleading or inappropriate, or
iv) not otherwise dealt with in this report or the financial statements, that would render any amount
stated in the financial statements of the Group and of the Company misleading.
At the date of this report, there does not exist :
i) any charge on the assets of the Group or of the Company that has arisen since the end of the
financial year and which secures the liabilities of any other person, or
ii) any contingent liability in respect of the Group or of the Company that has arisen since the end
of the financial year.
No contingent liability or other liability of any company in the Group has become enforceable, or is
likely to become enforceable within the period of twelve months after the end of the financial year
which, in the opinion of the Directors, will or may substantially affect the ability of the Group and of
the Company to meet their obligations as and when they fall due.
In the opinion of the Directors, the financial performance of the Group and of the Company for the
year ended 31 December 2010 have not been substantially affected by any item, transaction or event
of a material and unusual nature nor has any such item, transaction or event occurred in the interval
between the end of that financial year and the date of this report.
Company No. 94528 - T
Auditors
The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors :
……………………………
Chan Leong Foon
……………………………
Dato’ Chan Fook Sing
Penang,
Date : 6 April 2011
6
7
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
and its subsidiaries
Consolidated statement of financial position as at
31 December 2010
Note
2010
RM
2009
RM
3
4
5
6
8
15
7,371,333
1,441,116
206,009,074
2,646,129
323,000
6,322,934
1,441,116
197,749,210
2,664,380
540,760
462,000
217,790,652
209,180,400
70,559,800
13,900,481
89,906,823
17,441
16,219,876
55,543,318
15,710,318
107,731,518
10,894,726
Total current assets
190,604,421
189,879,880
Total assets
408,395,073
399,060,280
Assets
Property, plant and equipment
Intangible assets
Land held for property development
Investment properties
Other investments
Deferred tax assets
Total non-current assets
Property development costs
Receivables, deposits and prepayments
Inventories
Current tax assets
Cash and cash equivalents
9
10
11
12
Company No. 94528 - T
8
Consolidated statement of financial position (continued)
Note
2010
RM
2009
RM
13
13
191,595,776
176,883,087
191,595,776
158,263,196
368,478,863
349,858,972
11,405,992
15,000
7,809,410
8,455
11,420,992
7,817,865
1,993,675
15,693,260
10,808,283
-
2,185,450
10,862,080
27,904,888
431,025
Total current liabilities
28,495,218
41,383,443
Total liabilities
39,916,210
49,201,308
408,395,073
399,060,280
Equity
Share capital
Reserves
Total equity
Liabilities
Borrowings
Deferred tax liabilities
14
15
Total non-current liabilities
Provision
Payables and accruals
Borrowings
Current tax liabilities
Total equity and liabilities
16
17
14
The notes on pages 19 to 71 are an integral part of these financial statements.
9
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
and its subsidiaries
Consolidated statement of comprehensive income for the year
ended 31 December 2010
Note
2010
RM
2009
RM
Continuing operations
Revenue
18
72,820,508
44,269,505
Cost of sales
19
(43,543,297)
(26,903,702)
Gross profit
29,277,211
17,365,803
Selling and marketing expenses
(1,068,496)
(335,340)
Administrative expenses
(8,571,157)
(9,046,376)
6,642,194
9,092,684
Other income
Operating profit
20
26,279,752
17,076,771
Finance costs
23
(919,764)
(1,512,485)
25,359,988
15,564,286
(6,740,097)
(3,919,305)
18,619,891
11,644,981
Profit before tax
Tax expense
24
Profit for the year
Other comprehensive income, net of tax
Reversal of fair value of available-for-sale financial
assets upon disposal
(229,920)
Total comprehensive income attributable to
owners of the Company
Basic earnings per ordinary share (sen)
25
-
18,389,971
11,644,981
9.76
6.10
The notes on pages 19 to 71 are an integral part of these financial statements.
10
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
and its subsidiaries
Consolidated statement of changes in equity for the year ended 31 December 2010
At 1 January 2009
Total comprehensive income
for the year
At 31 December 2009/
1 January 2010
- effect of adopting FRS 139
(Note 30)
At 1 January 2010, restated
Total comprehensive income
for the year
At 31 December 2010
Share
capital
RM
Share
premium
RM
191,595,776
15,960,000
-
191,595,776
191,595,776
191,595,776
-
15,960,000
15,960,000
15,960,000
Attributable to owners of the Company
Non-distributable
Asset
revaluation
Capital
Fair value
Treasury
reserve
reserve
reserve
shares
RM
RM
RM
RM
Distributable
Retained
earnings
RM
818,502
500,000
-
-
-
-
818,502
500,000
-
-
-
229,920
-
818,502
500,000
229,920
(781,600)
141,766,294
350,088,892
-
-
(229,920)
-
18,619,891
18,389,971
818,502
500,000
-
(781,600) 160,386,185
368,478,863
The notes on pages 19 to 71 are an integral part of these financial statements.
(781,600) 130,121,313
Total
equity
RM
-
338,213,991
11,644,981
11,644,981
(781,600) 141,766,294
349,858,972
-
229,920
11
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
and its subsidiaries
Consolidated statement of cash flow for the year ended
31 December 2010
Note
2010
RM
2009
RM
Cash flows from operating activities
Profit before tax from continuing operations
Adjustments for:
Depreciation - property, plant and equipment
- investment properties
Dividend income
Interest expense
Interest income
(Gain)/Loss on disposal of :
- land held for property development
- investment properties
- property, plant and equipment
- other investment
Impairment loss of other investments
Operating profit before changes in working capital
Changes in working capital :
Property development costs
Receivables, deposits and prepayments
Inventories
Payables and accruals
Provision
Cash generated from/(used in) operations
Interest paid
Tax paid
Net cash from/(used in) operating activities
3
6
18
23
25,359,988
15,564,286
381,466
18,251
(17,440)
919,764
(266,632)
337,960
43,750
(8,430)
1,512,485
(153,162)
(288,310)
(175,351)
(408,356)
275
(9,420,150)
(3,029,227)
(124,334)
43
-
25,523,655
4,723,221
(13,928,190)
1,809,837
19,599,290
4,831,180
(191,775)
(7,391,665)
(10,406,286)
12,144,524
(2,023,053)
2,158,026
37,643,997
(795,233)
(919,764)
(7,038,658)
(1,512,485)
(2,461,002)
29,685,575
(4,768,720)
Company No. 94528 - T
12
Consolidated statement of cash flow (continued)
Note
2010
RM
2009
RM
Cash flows from investing activities
Dividends received
Interest received
Proceeds from disposal of :
- other investments
- land held for property development
- investment properties
- property, plant and equipment
Addition of land held for property development
Purchase of plant and equipment
13,080
266,632
6,323
153,162
948,841
313,000
175,360
(11,147,441)
(1,348,992)
1,146
14,304,483
8,700,000
1,400,000
(1,872,090)
(22,534)
(10,779,520)
22,670,490
Repayment of term loan
Repayment of revolving credit
Repayment of BBA-TF
Repayment of finance lease liabilities
(5,980,083)
(7,000,000)
(571,428)
(29,394)
(12,000,000)
(571,428)
-
Net cash used in financing activities
(13,580,905)
(12,571,428)
Net increase in cash and cash equivalents
5,325,150
5,330,342
10,894,726
5,564,384
16,219,876
10,894,726
5
B
Net cash (used in)/from investing activities
Cash flows from financing activities
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
A
NOTE
A. Cash and cash equivalents
Cash and cash equivalents included in the consolidated cash flow statement are as shown in Note
12 to the financial statements.
B. Purchase of plant and equipment
During the financial year, the Group acquired plant and equipment with an aggregate cost of
RM1,429,874 (2009 : RM22,534), of which RM80,882 (2009 : RM Nil) were acquired by means
of financial leases and the remaining via cash payment of RM1,348,992 (2009 : RM22,534).
The notes on pages 19 to 71 are an integral part of these financial statements.
13
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
Statement of financial position as at 31 December 2010
Note
2010
RM
2009
RM
3
5
6
7
8
15
6,593,460
180,079,889
2,479,549
22,346,659
323,000
5,659,110
169,353,217
2,496,651
22,346,659
540,760
462,000
211,822,557
200,858,397
67,258,988
26,980,473
68,060,777
15,996,290
56,703,768
34,564,593
81,339,466
10,707,126
Total current assets
178,296,528
183,314,953
Total assets
390,119,085
384,173,350
Assets
Property, plant and equipment
Land held for property development
Investment properties
Investments in subsidiaries
Other investments
Deferred tax assets
Total non-current assets
Property development costs
Receivables, deposits and prepayments
Inventories
Cash and cash equivalents
9
10
11
12
Company No. 94528 - T
14
Statement of financial position (continued)
Note
2010
RM
2009
RM
13
13
191,595,776
116,765,946
191,595,776
103,229,509
308,361,722
294,825,285
11,405,992
7,809,410
11,405,992
7,809,410
1,993,675
56,704,844
10,808,283
844,569
2,185,450
49,766,089
27,904,888
1,682,228
Total current liabilities
70,351,371
81,538,655
Total liabilities
81,757,363
89,348,065
390,119,085
384,173,350
Equity
Share capital
Reserves
Total equity
Liabilities
Borrowings
14
Total non-current liabilities
Provision
Payables and accruals
Borrowings
Current tax liabilities
Total equity and liabilities
16
17
14
The notes on pages 19 to 71 are an integral part of these financial statements.
15
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
Statement of comprehensive income for the year ended
31 December 2010
Note
2010
RM
2009
RM
Continuing operations
Revenue
18
61,242,964
36,858,265
Cost of sales
19
(40,874,405)
(24,790,224)
20,368,559
12,068,041
(984,683)
(285,957)
(6,518,948)
(7,373,477)
6,552,351
9,037,915
Gross profit
Selling and marketing expenses
Administrative expenses
Other income
Operating profit
20
19,417,279
13,446,522
Finance costs
23
(919,764)
(1,512,485)
18,497,515
11,934,037
(4,961,078)
(2,899,308)
13,536,437
9,034,729
Profit before tax
Tax expense
Profit for the year
24
Other comprehensive income, net of tax
Reversal of fair value of available-for-sale financial
assets upon disposal
Total comprehensive income for the year
(229,920)
13,306,517
The notes on pages 19 to 71 are an integral part of these financial statements.
9,034,729
16
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
Statement of changes in equity for the year ended 31 December 2010
At 1 January 2009
Total comprehensive income for the year
At 31 December 2009/1 January 2010
- Effect of adopting FRS 139 (Note 30)
At 1 January 2010, restated
Total comprehensive income for the year
At 31 December 2010
Share
capital
RM
Share
premium
RM
191,595,776
15,960,000
-
191,595,776
-
191,595,776
-
191,595,776
Non-distributable
Asset
revaluation
Fair value
reserve
reserve
RM
RM
Total
equity
RM
(781,600)
78,197,878
285,790,556
-
-
-
9,034,729
9,034,729
818,502
-
(781,600)
87,232,607
294,825,285
-
229,920
-
818,502
229,920
-
(229,920)
818,502
-
-
15,960,000
Retained
earnings
RM
-
-
15,960,000
Treasury
shares
RM
818,502
-
15,960,000
Distributable
The notes on pages 19 to 71 are an integral part of these financial statements.
(781,600)
-
229,920
87,232,607
295,055,205
-
13,536,437
13,306,517
(781,600)
100,769,044
308,361,722
17
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
Statement of cash flow for the year ended 31 December 2010
Note
2010
RM
2009
RM
Cash flows from operating activities
Profit before tax from continuing operations
Adjustments for:
Depreciation - property, plant and equipment
- investment properties
Dividend income
Interest expense
Interest income
(Gain)/Loss on disposal of :
- other investments
- investment properties
- land held for property development
- property, plant and equipment
Impairment loss of other investments
Operating profit before changes in working capital
Changes in working capital :
Property development costs
Receivables, deposits and prepayments
Inventories
Payables and accruals
Provision
Cash generated from/(used in) operations
Interest paid
Tax paid
Net cash from/(used in) operating activities
3
6
18
23
18,497,515
11,934,037
217,679
17,102
(17,440)
919,764
(262,912)
188,773
42,602
(8,430)
1,512,485
(147,763)
(408,356)
(130,852)
275
43
(3,029,227)
(9,197,261)
(124,334)
-
18,832,775
1,170,925
(12,639,844)
7,584,120
15,363,313
6,938,755
(191,775)
(7,498,700)
(3,756,790)
9,665,038
(1,915,616)
2,158,026
35,887,344
(177,117)
(919,764)
(5,655,377)
(1,512,485)
(1,830,090)
29,312,203
(3,519,692)
Company No. 94528 - T
18
Statement of cash flow for the year ended 31 December 2010
(continued)
Note
2010
RM
2009
RM
Cash flows from investing activities
Dividends received
Interest received
Proceeds from disposal of :
- other investments
- investment properties
- land held for property development
- property, plant and equipment
Additions of land held for property development
Purchase of plant and equipment
13,080
262,912
6,323
147,763
948,841
130,860
(10,726,672)
(1,071,155)
1,146
8,700,000
13,653,254
1,400,000
(2,361,005)
(22,534)
(10,442,134)
21,524,947
Repayment of term loan
Repayment of revolving credit
Repayment of BBA-TF
Repayment of finance lease liabilities
(5,980,083)
(7,000,000)
(571,428)
(29,394)
(12,000,000)
(571,428)
-
Net cash used in financing activities
(13,580,905)
(12,571,428)
Net increase in cash and cash equivalents
5,289,164
5,433,827
10,707,126
5,273,299
15,996,290
10,707,126
5
B
Net cash (used in)/from investing activities
Cash flows from financing activities
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
A
NOTE
A. Cash and cash equivalents
Cash and cash equivalents included in the cash flow statement are as shown in Note 12 to the
financial statements.
B. Purchase of plant and equipment
During the financial year, the Company acquired plant and equipment with an aggregate cost of
RM1,152,037 (2009 : RM22,534), of which RM80,882 (2009 : RM Nil) were acquired by means
of financial leases and the remaining via cash payment of RM1,071,155 (2009 : RM22,534).
The notes on pages 19 to 71 are an integral part of these financial statements.
19
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
and its subsidiaries
Notes to the financial statements
Asas Dunia Berhad is a public limited liability company, incorporated and domiciled in Malaysia
and is listed on the Main Market of Bursa Malaysia Securities Berhad. The address of its registered
office and principal place of business is as follows :
Wisma Asas
No. 228-B Lebuh Chulia
10200 Penang
The consolidated financial statements of the Company as at and for the year ended 31 December
2010 comprise the Company and its subsidiaries (together referred to as the Group).
The principal activities of the Company are property development, building construction, investment
holding and property investment.
The principal activities of its subsidiaries are set out in Note 7 to the financial statements.
These financial statements were authorised for issue by the Board of Directors on 6 April 2011.
1. Basis of preparation
(a) Statement of compliance
These financial statements of the Group and of the Company have been prepared in
accordance with Financial Reporting Standards (FRS), generally accepted accounting
principles and the Companies Act, 1965 in Malaysia.
The Group and the Company have not applied the following accounting standards,
amendments and interpretations that have been issued by the Malaysian Accounting
Standards Board (MASB) but are not yet effective :
Amendments effective for annual periods beginning on or after 1 March 2010
 Amendments to FRS 132, Financial Instruments: Presentation - Classification of
Rights Issues *
Company No. 94528 - T
20
1. Basis of preparation (continued)
(a) Statement of compliance (continued)
FRSs, Interpretations and amendments effective for annual periods beginning on or
after 1 July 2010
 FRS 1, First-time Adoption of Financial Reporting Standards (revised)
 FRS 3, Business Combinations (revised)
 FRS 127, Consolidated and Separate Financial Statements (revised)
 Amendments to FRS 2, Share-based Payment *
 Amendments to FRS 5, Non-current Assets Held for Sale and Discontinued
Operations *
 Amendments to FRS 138, Intangible Assets *
 IC Interpretation 12, Service Concession Agreements *
 IC Interpretation 16, Hedges of a Net Investment in a Foreign Operation *
 IC Interpretation 17, Distribution of Non-cash Assets to Owners *
 Amendments to IC Interpretation 9, Reassessment of Embedded Derivatives
FRSs, Interpretations and amendments effective for annual periods beginning on
or after 1 January 2011
 Amendments to FRS 1, First-time Adoption of Financial Reporting Standards
- Limited Exemption from Comparative FRS 7 Disclosures for First-time Adopters
- Addition Exemption for First-time Adopters
 Amendments to FRS 2, Group Cash-settled Share Based Payment Transactions *
 Amendments to FRS 7, Financial Instruments : Disclosures - Improving Disclosures
about Financial Instruments
 IC Interpretation 4, Determining whether on arrangement contains a Lease *
 IC Interpretation 18, Transfers of Assets from Customers *
 Improvements to FRSs (2010)
FRSs, Interpretation and amendments effective for annual periods beginning on or
after 1 July 2011
 IC Interpretation 19, Extinguishing Financial Liabilities with Equity Instruments #
 Amendments to IC Interpretation 14, Prepayments of a Minimum Funding
Requirement #
FRSs, Interpretation and amendments effective for annual periods beginning on or
after 1 January 2012
 FRS 124, Related Party Disclosures (revised)
 IC Interpretation 15, Agreements for the Construction of Real Estate
Company No. 94528 - T
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1. Basis of preparation (continued)
(a) Statement of compliance (continued)
The Group and the Company plan to apply the abovementioned standards, amendments
and interpretations:


from the annual period beginning 1 January 2011 for those standards, amendments or
interpretations that will be effective for annual periods beginning on or after 1 March
2010, 1 July 2010 and 1 January 2011, except for those marked “ * ” which are not
applicable to the Group and the Company; and
from the annual period beginning 1 January 2012 for those standards, amendments or
interpretations that will be effective for annual periods beginning on or after 1 July
2011 and 1 January 2012, except for those marked “ # ” which are not applicable to
the Group and the Company.
The initial application of a standard, an amendment or an interpretation, which will be
applied prospectively or which requires extended disclosures, is not expected to have any
financial impacts to the current and prior periods financial statements upon their first
adoption.
Material impacts of initial application of a standard, an amendment or as interpretation
which will be applied retrospectively, are disclosed below :
IC Interpretation 15, Agreements for the Construction of Real Estate
IC Interpretation 15 replaces the existing FRS 2012004, Property Development Activities
and provides guidance on how to account for revenue from construction of real estate.
The adoption of IC Interpretation 15 will result in a change in accounting policy which
will be applied retrospectively whereby the recognition of revenue from all property
development activities of the Group and of the Company will change from the percentage
of completion method to the completed method. The Group is currently assessing the
impact of the adoption of this interpretation.
Following the announcement by the MASB on 1 August 2008, the Group’s and the
Company’s financial statements will be prepared in accordance with International
Financial Reporting Standards (IFRS) framework for annual periods beginning on 1
January 2012. The change of the financial reporting framework is not expected to have
any significant impact on the financial position and performance of the Group and the
Company.
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis other than as
disclosed in Note 2.
Company No. 94528 - T
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1. Basis of preparation (continued)
(c) Functional and presentation currency
These financial statements are presented in Ringgit Malaysia (RM), which is the
Company’s functional currency.
(d) Use of estimates and judgements
The preparation of the financial statements is conformity with FRSs requires
management to make judgements, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and in
any future periods affected.
The key assumptions concerning the future and other key sources of estimation
uncertainty at the balance sheet date that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year
are discussed below.
(i)
Property development
The Group recognises property development revenue and expenses in profit or loss
by using the stage of completion method. The stage of completion is determined by
the proportion that property development costs incurred for work performed to date
bear to the estimated total property development costs.
Significant judgement is required in determining the stage of completion, the extent
of the property development costs incurred, the estimated total property
development revenue and costs, as well as the recoverability of the development
projects. In making the judgement, the Group evaluates based on past experience
and by relying on the work of specialists.
(ii)
Inventories
The Directors are of the opinion that no further write down is required for the
unsold units of the Group’s completed development properties as they are confident
of realising those units at a price which is higher than the carrying amount.
Company No. 94528 - T
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2. Significant accounting policies
The accounting policies set out below have been applied consistently to the periods presented
in these financial statements, and have been applied consistently by the Group entities other
than those disclosed in the following notes : Note 2(g) - Financial instruments
 Note 2(t) - Operating segments
(a) Basis of consolidation
(i)
Subsidiaries
Subsidiaries are entities, including unincorporated entities, controlled by the Group.
Control exists when the Group has the ability to exercise its power to govern the
financial and operating policies of an entity so as to obtain benefits from its
activities. In assessing control, potential voting rights that presently are exercisable
are taken into account. Subsidiaries are consolidated using the purchase method of
accounting.
Under the purchase method of accounting, the financial statements of subsidiaries
are included in the consolidated financial statements from the date that control
commences until the date that control ceases.
Investments in subsidiaries are measured in the Company’s statement of financial
position at cost less any impairment losses, unless the investment is classified as
held for sale.
(ii)
Changes in Group composition
The Group treats all changes in group composition as equity transactions between
the Group and its minority interest holders. Any difference between the Group’s
share of net assets before and after the change, and any consideration received or
paid, is adjusted to or against Group reserves.
(iii) Minority interests
Minority interests at the end of the reporting period, being the portion of the net
identifiable assets of subsidiaries attributable to equity interests that are not owned
by the Company, whether directly or indirectly through subsidiaries, are presented
in the consolidated statement of financial position and statement of changes in
equity within equity, separately from equity attributable to the owners of the
Company. Minority interests in the results of the Group are presented in the
consolidated of comprehensive income as an allocation of the comprehensive
income for the year between minority interests and the owners of the Company.
Where losses applicable to the minority exceed the minority’s interest in the equity
of a subsidiary, the excess, and any further losses applicable to the minority, are
charged against the Group’s interest except to the extent that the minority has a
binding obligation to, and is able to, make additional investment to cover the losses.
If the subsidiary subsequently reports profits, the Group’s interest is allocated with
all such profits until the minority’s share of losses previously absorbed by the
Group has been recovered.
Company No. 94528 - T
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2. Significant accounting policies (continued)
(a) Basis of consolidation (continued)
(iv) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses
arising from intra-group transactions, are eliminated in preparing the consolidated
financial statements.
(b) Property, plant and equipment
(i)
Recognition and measurement
Freehold land are measured at cost/valuation. All other property, plant and
equipment are measured at cost less accumulated depreciation and accumulated
impairment losses, if any.
The Group has availed itself to the transitional provision when the MASB first
adopted IAS 16, Property, Plant and Equipment in 1998. Certain properties were
revalued in 1994 and no later valuation has been recorded for these properties.
Cost includes expenditures that are directly attributable to the acquisition of the
asset and any other costs directly attributable to bringing the asset to working
condition for its intended use, and the costs of dismantling and removing the items
and restoring the site on which they are located. The cost of self-constructed assets
includes the cost of materials and direct labour. Purchased software that is integral
to the functionality of the related equipment is capitalised as part of that equipment.
The cost of property, plant and equipment recognised as a result of a business
combination is based on fair value at acquisition date. The fair value of property is
the estimated amount for which a property could be exchanged between
knowledgeable willing parties in an arm’s length transaction after proper marketing
wherein the parties had each acted knowledgeably, prudently and without
compulsion. The fair value of other items of plant and equipment is based on the
quoted market prices for similar items when available and replacement cost when
appropriate.
When significant parts of an item of property, plant and equipment have different
useful lives, they are accounted for as separate items (major components) of
property, plant and equipment.
Company No. 94528 - T
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2. Significant accounting policies (continued)
(b) Property, plant and equipment (continued)
(i)
Recognition and measurement (continued)
The gains or losses on disposal of an item of property, plant and equipment are
determined by comparing the proceeds from disposal with the carrying amount of
property, plant and equipment and are recognised net within “other income” or
“other expenses” respectively in the profit or loss. When revalued assets are sold,
the amounts included in the asset revaluation reserve are transferred to retained
earnings.
(ii)
Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised
in the carrying amount of the item if it is probable that the future economic benefits
embodied within the part will flow to the Group or the Company, and its cost can be
measured reliably. The carrying amount of those parts that are replaced is
derecognised to profit or loss. The costs of the day-to-day servicing of property,
plant and equipment are recognised in profit or loss as incurred.
(iii) Depreciation
Depreciation is calculated over the depreciable amount, which is the cost of an
asset, or other amount substituted for cost, less its residual value.
Depreciation is recognised in profit or loss on a straight-line basis over the
estimated useful lives of each part of an item of property, plant and equipment.
Leased assets are depreciated over the shorter of the lease term and their useful
lives unless it is reasonably certain that the Group will obtain ownership by the end
of the lease term. Freehold land is not depreciated. Property, plant and equipment
under construction are not depreciated until the assets are ready for their intended
use.
The estimated useful lives for the current and comparative periods are as follows :
Buildings
Plant and machinery
Renovation
Furniture, fittings and equipment
Motor vehicles
50 years
4 - 5 years
10 years
2.5 - 12.5 years
5 years
Depreciation methods, useful lives and residual values are reviewed, and adjusted
as appropriate at the end of the reporting period.
Company No. 94528 - T
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2. Significant accounting policies (continued)
(c) Leased assets
(i)
Finance lease
Leases in terms of which the Group or the Company assume substantially all the
risks and rewards of ownership are classified as finance leases. On initial
recognition of the leased asset is measured at an amount equal to the lower of its
fair value and the present value of the minimum lease payments. Subsequent to
initial recognition, the asset is accounted for in accordance with the accounting
policy applicable to that asset.
Minimum lease payments made under finance leases are apportioned between the
finance expense and the reduction of the outstanding liability. The finance expense
is allocated to each period during the lease term so as to produce a constant periodic
rate of interest on the remaining balance of the liability. Contingent lease payments
are accounted for by revising the minimum lease payments over the remaining term
of the lease when the lease adjustment is confirmed.
(ii)
Operating lease
Other leases are operating leases and the leased assets are not recognised on the
Group’s statement of financial position.
Payments made under operating leases are recognised in profit or loss on a straightline basis over the term of the lease. Lease incentives received are recognised as an
integral part of the total lease expense, over the term of the lease.
(d) Intangible assets
Goodwill
Goodwill arises on business combinations and is measured at cost less any accumulated
impairment losses.
For acquisitions prior to 1 January 2006, goodwill represents the excess of the cost of the
acquisition over the Group’s interest in the fair values of the net identifiable assets and
liabilities.
For business acquisitions beginning from 1 January 2006, goodwill represents the excess
of the cost of the acquisition over the Group’s interest in the net fair value of the
identifiable assets, liabilities and contingent liabilities of the acquiree.
Any excess of the Group’s interest in the net fair value of acquiree’s identifiable assets,
liabilities and contingent liabilities over the cost of acquisition is recognised immediately
in profit or loss.
Goodwill is not amortised but is tested for impairment annually and whenever there is an
indication that it may be impaired.
Company No. 94528 - T
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2. Significant accounting policies (continued)
(e) Land held for property development
Land held for property development consists of land or such portions thereof on which no
development activities have been carried out or where development activities are not
expected to be completed within the Group’s normal operating cycle of 2 to 3 years. Such
land is classified as non-current asset and is measured at cost less accumulated
impairment losses.
Land held for property development is reclassified as property development costs at the
point when development activities have commenced and where it can be demonstrated
that the development activities can be completed within the Group’s normal operating
cycle of 2 to 3 years.
Cost associated with the acquisition of land includes the purchase price of the land,
professional fees, stamp duties, commissions, conversion fees and other relevant levies.
(f) Investment properties
Investment properties are properties which are owned to earn rental income or for capital
appreciation or for both. These include land held for a currently undetermined future use.
Properties that are occupied by the companies in the Group are accounted for as owneroccupied rather than as investment properties.
Investment properties are measured at cost less accumulated depreciation and impairment
losses, consistent with the accounting policy for property, plant and equipment as stated
in accounting policy Note 2(b).
Transfers between investment properties, property, plant and equipment and inventories
do not change the carrying amount and the cost of the property transferred.
Depreciation is charged to profit or loss on a straight-line basis over the estimated useful
lives of 50 years for buildings. Freehold land is not depreciated.
The Directors estimate the fair values of the Group’s investment properties without
involvement of independent valuers.
The fair values are based on market values, being the estimated amount for which a
property could be exchanged on the date of the valuation between a willing buyer and a
willing seller in an arm’s length transaction after proper marketing wherein the parties
had each acted knowledgeably, prudently and without compulsion.
(g) Financial instruments
Arising from the adoption of FRS 139, Financial Instruments: Recognition and
Measurement, with effect from 1 January 2010, financial instruments are categorised and
measured using accounting policies as mentioned below. Before 1 January 2010,
different accounting policies were applied. Significant changes to the accounting
policies are discussed in note 30.
Company No. 94528 - T
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2. Significant accounting policies (continued)
(g) Financial instruments (continued)
(i) Initial recognition and measurement
A financial asset or a financial liability is recognised in the statement of financial
position when, and only when, the Group or the Company becomes a party to the
contractual provisions of the instrument.
A financial instrument is recognised initially, at its fair value plus, in the case of a
financial instrument not at fair value through profit or loss, transaction costs that are
directly attributable to the acquisition or issue of the financial instrument.
An embedded derivative is recognised separately from the host contract and
accounted for as a derivative if, and only if, it is not closely related to the economic
characteristics and risks of the host contract and the host contract is not categorised at
fair value through profit or loss. The host contract, in the event an embedded
derivative is recognised separately, is accounted for in accordance with policy
applicable to the nature of the host contract.
(ii) Financial instrument categories and subsequent measurement
The Group and the Company categorise financial instruments as follows:
Financial assets
(a) Loans and receivables
Loans and receivables category comprises debt instruments that are not quoted
in an active market.
Financial assets categorised as loans and receivables are subsequently measured
at amortised cost using the effective interest method.
(b) Available-for-sale financial assets
Available-for-sale category comprises investment in equity and debt securities
instruments that are not held for trading.
Investments in equity instruments that do not have a quoted market price in an
active market and whose fair value cannot be reliably measured are measured at
cost. Other financial assets categorised as available-for-sale are subsequently
measured at their fair values with the gain or loss recognised in other
comprehensive income, except for impairment losses, foreign exchange gains
and losses arising from monetary items and gains and losses of hedged items
attributable to hedge risks of fair value hedges which are recognised in profit or
loss. On derecognition, the cumulative gain or loss recognised in other
comprehensive income is reclassified from equity into profit or loss. Interest
calculated for a debt instrument using the effective interest method is recognised
in profit or loss.
All financial assets, except for those measured at fair value through profit or
loss, are subject to review for impairment (see note 2(l).
Company No. 94528 - T
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2. Significant accounting policies (continued)
(g) Financial instruments (continued)
(ii) Financial instrument categories and subsequent measurement (continued)
Financial liabilities
All financial liabilities are subsequently measured at amortised cost other than those
categorised as fair value through profit or loss.
Fair value through profit or loss category comprises financial liabilities that are held
for trading, derivatives (except for a derivative that is a financial guarantee contract
or a designated and effective hedging instrument) or financial liabilities that are
specifically designated into this category upon initial recognition.
Derivatives that are linked to and must be settled by delivery of unquoted equity
instruments whose fair values cannot be reliably measured are measured at cost.
Other financial liabilities categorised as fair value through profit or loss are
subsequently measured at their fair values with the gain or loss recognised in profit
or loss.
(iii) Regular way purchase or sale of financial assets
A regular way purchase or sale is a purchase or sale of a financial asset under a
contract whose terms require delivery of the asset within the time frame established
generally by regulation or convention in the marketplace concerned.
A regular way purchase or sale of financial assets is recognised and derecognised, as
applicable, using trade date accounting. Trade date accounting refers to:
(a)
(b)
the recognition of an asset to be received and the liability to pay for it on the
trade date, and
derecognition of an asset that is sold, recognition of any gain or loss on
disposal and the recognition of a receivable from the buyer for payment on
the trade date.
(iv) Derecognition
A financial asset or part of it is derecognised when, and only when the contractual
rights to the cash flows from the financial asset expire or the financial asset is
transferred to another party without retaining control or substantially all risks and
rewards of the asset. On derecognition of a financial asset, the difference between
the carrying amount and the sum of the consideration received (including any new
asset obtained less any new liability assumed) and any cumulative gain or loss that
had been recognised in equity is recognised in profit or loss.
Company No. 94528 - T
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2. Significant accounting policies (continued)
(g) Financial instruments (continued)
(iv) Derecognition (continued)
A financial liability or a part of it is derecognised when, and only when, the
obligation specified in the contract is discharged or cancelled or expires. On
derecognition of a financial liability, the difference between the carrying amount of
the financial liability extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred or liabilities assumed,
is recognised in profit or loss.
(h) Property development costs
Property development costs comprise costs associated with the acquisition of land and all
costs that are directly attributable to development activities or that can be allocated on a
reasonable basis to such activities, including interest expense incurred during the period
of active development.
Property development costs not recognised as an expense is recognised as an asset and is
stated at the lower of cost and net realisable value.
The excess of revenue recognised in profit or loss over billings to purchasers is shown as
accrued billings under receivables, deposits and prepayments and the excess of billings to
purchasers over revenue recognised in profit or loss is shown as progress billings under
payables and accruals.
(i)
Receivables
Prior to 1 January 2010, receivables were initially recognised at their costs and
subsequently measured at cost less allowance for doubtful debts.
Following the adoption of FRS 139, trade and other receivable are categorised and
measured as loans and receivables in accordance with note 2(g).
(j) Inventories
i)
Completed development properties
Completed development properties are stated at the lower of cost and net realisable
value. Cost is determined on the specific identification basis and includes costs of
land, direct building costs and other related development cost.
ii)
Building materials
Building materials are stated at the lower of cost and net realisable value. The cost
of building materials is based on the first-in first-out principle and comprises the
original purchase price plus incidental costs in bringing these inventories to their
present location and conditions.
Company No. 94528 - T
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2. Significant accounting policies (continued)
(j) Inventories (continued)
Net realisable value is the estimated selling price in the ordinary course of business, less
the estimated costs of completion and the estimated costs necessary to make the sale.
The fair value of inventories acquired in a business combination is determined based on
its estimated selling price in the ordinary course of business less the estimated costs of
completion and sale, and a reasonable profit margin based on the effort required to
complete and sell the inventories.
(k) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, balances and deposits with banks and
highly liquid investments which have an insignificant risk of changes in value (including
the accounts maintained pursuant to the Housing Developers (Housing Development
Account) (Amendment) Regulations 2002). For the purpose of the cash flow statements,
cash and cash equivalents are presented net of bank overdrafts and pledged deposits.
Cash and cash equivalents (other than bank overdrafts) are categorised and measured as
loans and receivables in accordance with policy note 2(g).
(l)
Impairment of assets
(i) Financial assets
All financial assets (except for financial assets categorised as fair value through
profit or loss and investments in subsidiaries) are assessed at each reporting date
whether there is any objective evidence of impairment as a result of one or more
events having an impact on the estimated future cash flows of the asset. Losses
expected as a result of future events, no matter how likely, are not recognised. For
an equity instrument, a significant or prolonged decline in the fair value below its
cost is an objective evidence of impairment.
An impairment loss in respect of loans and receivables is recognised in profit or loss
and is measured as the difference between the asset’s carrying amount and the
present value of estimated future cash flows discounted at the asset’s original
effective interest rate. The carrying amount of the asset is reduced through the use
of an allowance account.
An impairment loss in respect of available-for-sale financial assets is recognised in
profit or loss and is measured as the difference between the asset’s acquisition cost
(net of any principal repayment and amortisation) and the asset’s current fair value,
less any impairment loss previously recognised. Where a decline in the fair value of
an available-for-sale financial asset has been recognised in the other comprehensive
income, the cumulative loss in other comprehensive income is reclassified from
equity and recognised to profit or loss.
Company No. 94528 - T
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2. Significant accounting policies (continued)
(l)
Impairment of assets (continued)
(i) Financial assets (continued)
An impairment loss in respect of unquoted equity instrument that is carried at cost is
recognised in profit or loss and is measured as the difference between the asset’s
carrying amount and the present value of estimated future cash flows discounted at
the current market rate of return for a similar financial asset.
Impairment losses recognised in profit or loss for an investment in an equity
instrument is not reversed through profit or loss.
If, in a subsequent period, the fair value of a debt instrument increases and the
increase can be objectively related to an event occurring after the impairment loss
was recognised in profit or loss, the impairment loss is reversed, to the extent that
the asset’s carrying amount does not exceed what the carrying amount would have
been had the impairment not been recognised at the date the impairment is reversed.
The amount of the reversal is recognised in profit or loss.
(ii) Non-financial assets
The carrying amounts of non-financial assets (except for inventories and property
development cost and deferred tax asset) are reviewed at the end of each reporting
period to determine whether there is any indication of impairment.
If any such indication exists, then the asset’s recoverable amount is estimated. For
the purpose of impairment testing, assets are grouped together into the smallest
group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets (the “cashgenerating unit”). The goodwill acquired in a business combination, for the purpose
of impairment testing, is allocated to cash-generating units that are expected to
benefit from the synergies of the combination.
The recoverable amount of an asset or cash-generating unit is the greater of its value
in use and its fair value less costs to sell. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks
specific to the asset.
An impairment loss is recognised if the carrying amount of an asset or its cashgenerating unit exceeds its recoverable amount.
Impairment losses are recognised in profit or loss. Impairment losses recognised in
respect of cash-generating units are allocated first to reduce the carrying amount of
any goodwill allocated to the units and then to reduce the carrying amount of the
other assets in the unit (groups of units) on a pro rata basis.
Company No. 94528 - T
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2. Significant accounting policies (continued)
(l) Impairment of assets (continued)
(ii) Non-financial assets (continued)
An impairment loss in respect of goodwill is not reversed. In respect of other assets,
impairment losses recognised in prior periods are assessed at the end of each
reporting period for any indications that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount since the last impairment loss was recognised. An
impairment loss is reversed only to the extent that the asset’s carrying amount does
not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised. Reversals
of impairment losses are credited to profit or loss in the year in which the reversals
are recognised.
(m) Equity instruments
Instruments classified as equity are stated at cost on initial recognition and are not remeasured subsequently.
(i)
Issue expenses
Costs directly attributable to issue of instruments classified as equity are recognised
as a deduction from equity.
(ii)
Repurchase of share capital
When share capital recognised as equity is repurchased, the amount of the
consideration paid, including directly attributable costs, is recognised as a deduction
from equity and is not re-valued for subsequent changes in the fair value or market
price of shares. Repurchased shares are classified as treasury shares and are
presented as a deduction from total equity.
Where treasury shares are distributed as share dividends, the cost of the treasury
shares is applied in the reduction of the share premium account or distributable
reserves, or both.
Where treasury shares are reissued by re-sale in the open market, the difference
between the sales consideration net of directly attributable costs and the carrying
amount of the treasury shares is recognised in equity.
Company No. 94528 - T
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2. Significant accounting policies (continued)
(n) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. Provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The
unwinding of the discount is recognised as finance cost.
Contingent liabilities
Where it is not probable that an outflow of economic benefits will be required, or the
amount cannot be estimated reliably, the obligation is disclosed as a contingent liability,
unless the probability of outflow of economic benefits is remote. Possible obligations,
whose existence will only be confirmed by the occurrence or non-occurrence of one or
more future events are also disclosed as contingent liabilities unless the probability of
outflow of economic benefits is remote.
(o) Employee benefits
Short-term employee benefit obligations in respect of salaries, annual bonuses, paid
annual leave and sick leave are measured on an undiscounted basis and are expensed as
the related service is provided.
A liability is recognised for the amount expected to be paid under short-term cash bonus
or profit-sharing plans if the Group has a present legal or constructive obligation to pay
this amount as a result of past service provided by the employee and the obligation can be
estimated reliably.
The Group’s contribution to statutory pension funds are charged to profit or loss in the
year to which they relate. Once the contributions have been paid, the Group has no
further payment obligations.
(p) Revenue and other income
(i)
Property development
Revenue from property development activities is recognised based on the stage of
completion measured by reference to the proportion that property development
costs incurred for work performed to date bear to the estimated total property
development costs.
Where the financial outcome of a property development activity cannot be reliably
estimated, property development revenue is recognised only to the extent of
property development costs incurred that is probable will be recoverable, and
property development costs on the development units sold are recognised as an
expense in the period in which they are incurred.
Any expected loss on a development project, including costs to be incurred over the
defects liability period, is recognised immediately in profit or loss.
Company No. 94528 - T
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2. Significant accounting policies (continued)
(p) Revenue and other income (continued)
(ii)
Completed development properties
Revenue relating to sale of completed development properties is recognised net of
discounts when transfer of risks and rewards have been completed.
(iii) Goods sold
Revenue from the sale of goods is measured at fair value of the consideration
received or receivable, net of returns and allowances, trade discounts and volume
rebates. Revenue is recognised when the significant risks and rewards of ownership
have been transferred to the buyer, recovery of the consideration is probable, the
associated costs and possible return of goods can be estimated reliably, and there is
no continuing management involvement with the goods.
(iv) Dividend income
Dividend income is recognised when the right to receive payment is established.
(v)
Rental income
Rental income is recognised in the profit or loss on a straight-line basis over the
term of the lease. Lease incentives granted are recognised as an integral part of the
total rental income, over the term of the lease. Rental income from subleased
property is recognised as other income.
(vi) Interest income
Interest income is recognised as it accrues, using the effective interest method.
(q) Borrowing costs
Borrowing costs that are not directly attributable to the acquisition, construction or
production of a qualifying assets are recognised in profit or loss using the effective
interest method.
Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to get
ready for their intended use or sale, are capitalised as part of the cost of those assets.
The capitalisation of borrowing costs as part of the cost of a qualifying asset commences
when expenditure for the asset is being incurred, borrowing costs are being incurred and
activities that are necessary to prepare the asset for its intended sale are in progress.
Capitalisation of borrowing costs is suspended or ceases when substantially all the
activities necessary to prepare the qualifying asset for its intended sale are interrupted or
completed.
Company No. 94528 - T
36
2. Significant accounting policies (continued)
(r) Income tax
Income tax expense comprises current and deferred tax. Income tax expense is
recognised in profit or loss except to the extent that it relates to a business combination
items recognised directly in equity or other comprehensive income.
Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted or substantively enacted by the end of the reporting period, and any adjustment to
tax payable in respect of previous years.
Deferred tax is recognised using the liability method, providing for temporary differences
between the carrying amounts of assets and liabilities in the statement of financial
position and tax bases. Deferred tax is not recognised for the following temporary
differences: the initial recognition of goodwill, and the initial recognition of assets or
liabilities in a transaction that is not a business combination and that affects neither
accounting nor taxable profit or loss. Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences when they reverse, based on the laws
that have been enacted or substantively enacted by the end of the reporting period.
A deferred tax asset is recognised to the extent that it is probable that future taxable
profits will be available against which temporary difference can be utilised. Deferred tax
assets are reviewed at each reporting period and are reduced to the extent that it is no
longer probable that the related tax benefit will be realised.
(s) Earnings per ordinary share
The Group presents basic earnings per ordinary share data for its ordinary shares (EPS).
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders
of the Company by the weighted average number of ordinary shares outstanding during
the period.
(t)
Operating segments
In the previous years, a segment was a distinguishable component of the Group that was
engaged either in providing products or services (business segment), or in providing
products or services within a particular economic environment (geographical segment)
which was subject to risks and rewards that were different from those of other segments.
Following the adoption of FRS 8, Operating Segments, an operating segment is a
component of the Group that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions
with any of the Group’s other components. An operating segment’s operating results are
reviewed regularly by the chief operating decision maker, which in this case is the
Managing Director of the Group, to make decisions about resources to be allocated to the
segment and assess its performance, and for which discrete financial information is
available.
Company No. 94528 - T
37
3. Property, plant and equipment
Freehold
land
RM
Buildings
RM
Plant and
machinery
RM
Other
assets *
RM
Total
RM
Cost/Valuation
At 1 January 2009
Additions
Disposals
4,994,104
(969,333)
3,023,512
(466,667)
3,515,880
-
5,036,511
22,534
-
16,570,007
22,534
(1,436,000)
At 31 December 2009/
1 January 2010
4,024,771
2,556,845
3,515,880
5,059,045
15,156,541
-
-
1,348,992
(1,087,651)
(16,000)
1,429,874
(1,087,651)
(16,000)
At 31 December 2010
4,024,771
2,556,845
3,596,762
5,304,386
15,482,764
Representing :
- At cost
- At valuation
162,771
3,862,000
2,556,845
-
3,596,762
-
5,304,386
-
11,620,764
3,862,000
4,024,771
2,556,845
3,596,762
5,304,386
15,482,764
Group
Additions
Disposal
Written off
80,882
-
Accumulated depreciation
At 1 January 2009
Depreciation for the year
Disposal
-
764,321
74,460
(160,334)
3,458,322
48,992
-
4,433,338
214,508
-
8,655,981
337,960
(160,334)
At 31 December 2009/
1 January 2010
-
678,447
3,507,314
4,647,846
8,833,607
Depreciation for the year
Disposal
Written off
-
67,459
-
17,488
-
296,519
(1,087,642)
(16,000)
381,466
(1,087,642)
(16,000)
At 31 December 2010
-
745,906
3,524,802
3,840,723
8,111,431
1,132,104
3,862,000
2,259,191
-
57,558
-
603,173
-
4,052,026
3,862,000
4,994,104
2,259,191
57,558
603,173
7,914,026
162,771
3,862,000
1,878,398
-
8,566
-
411,199
-
2,460,934
3,862,000
4,024,771
1,878,398
8,566
411,199
6,322,934
162,771
3,862,000
1,810,939
-
71,960
-
1,463,663
-
3,509,333
3,862,000
4,024,771
1,810,939
71,960
1,463,663
7,371,333
Carrying amounts
At 1 January 2009
- At cost
- At valuation
At 31 December 2009/
1 January 2010
- At cost
- At valuation
At 31 December 2010
- At cost
- At valuation
Company No. 94528 - T
38
3. Property, plant and equipment (continued)
Freehold
land
RM
Buildings
RM
Plant and
machinery
RM
Other
assets *
RM
Total
RM
Cost/Valuation
At 1 January 2009
Additions
Disposal
4,983,533
(969,333)
2,590,045
(466,667)
3,217,808
-
3,959,390
22,534
-
14,750,776
22,534
(1,436,000)
At 31 December 2009/
1 January 2010
4,014,200
2,123,378
3,217,808
3,981,924
13,337,310
-
-
At 31 December 2010
4,014,200
2,123,378
3,298,690
4,119,410
13,555,678
Representing :
- At cost
- At valuation
152,200
3,862,000
2,123,378
-
3,298,690
-
4,119,410
-
9,693,678
3,862,000
4,014,200
2,123,378
3,298,690
4,119,410
13,555,678
Company
Additions
Disposal
Written off
80,882
-
1,071,155
(917,669)
(16,000)
1,152,037
(917,669)
(16,000)
Accumulated depreciation
At 1 January 2009
Depreciation for the year
Disposal
-
665,423
49,468
(160,334)
3,168,090
47,752
-
3,816,248
91,553
-
7,649,761
188,773
(160,334)
At 31 December 2009/
1 January 2010
-
554,557
3,215,842
3,907,801
7,678,200
Depreciation for the year
Disposal
Written off
-
42,468
-
16,248
-
At 31 December 2010
-
597,025
3,232,090
3,133,103
6,962,218
1,121,533
3,862,000
1,924,622
-
49,718
-
143,142
-
3,239,015
3,862,000
4,983,533
1,924,622
49,718
143,142
7,101,015
152,200
3,862,000
1,568,821
-
1,966
-
74,123
-
1,797,110
3,862,000
4,014,200
1,568,821
1,966
74,123
5,659,110
152,200
3,862,000
1,526,353
-
66,600
-
986,307
-
2,731,460
3,862,000
4,014,200
1,526,353
66,600
986,307
6,593,460
Carrying amounts
At 1 January 2009
- At cost
- At valuation
At 31 December 2009/
1 January 2010
- At cost
- At valuation
At 31 December 2010
- At cost
- At valuation
*
158,963
(917,661)
(16,000)
217,679
(917,661)
(16,000)
Other assets comprise renovation, furniture, fittings and equipment and motor vehicles.
Company No. 94528 - T
39
3. Property, plant and equipment (continued)
3.1
Assets held in trust
Included in property, plant and equipment of the Group and of the Company are motor
vehicles with carrying amount of RM1,237,875 (2009 : RM266,737) and RM780,463
(2009 : RM5,176) respectively held in trust by the Directors.
3.2
Property, plant and equipment under the revaluation model
The freehold land of the Group and of the Company with carrying amount of
RM3,862,000 (2009 : RM3,862,000) was revalued in 1994 based on valuation by an
independent professional valuer on an open market value basis. The revaluation surplus
arising from the revaluation has been capitalised as asset revaluation reserve.
Had the freehold land been carried at historical cost, the carrying amount of the revalued
asset that would have been included in the financial statements of the Group and of the
Company at the end of the year is RM1,000,000 (2009 : RM1,000,000).
3.3
Assets under finance lease
The net book value of plant and machinery acquired under finance lease instalment plans
is RM65,716 (2009 : RM Nil).
4. Intangible assets
Goodwill on consolidation
Group
2010
RM
At 1 January/31 December
4.1
1,441,116
2009
RM
1,441,116
Impairment testing for cash-generating units containing goodwill
For the purpose of impairment testing, goodwill is allocated to the Group’s CashGenerating Units (“CGUs”) identified.
Goodwill is tested for impairment on an accrual basis by comparing the carrying amount
with the recoverable amount of the CGUs based on the value-in-use.
Value-in-use is determined by discounting the future cash flows generated from the
continuing use of the unit and is based on the recent financial projections approved by the
Management.
The gross margin used in the projections is based on past experience.
Company No. 94528 - T
40
5. Land held for property development
Group
Company
2010
RM
2009
RM
2010
RM
2009
RM
190,874,321
2,743,553
4,131,336
212,787,171
2,743,553
4,171,756
164,465,827
2,494,623
2,392,767
185,396,229
2,494,623
2,498,380
197,749,210
219,702,480
169,353,217
190,389,232
(2,862,887)
11,147,441
(24,690)
(18,941,027)
1,872,090
(4,884,333)
10,726,672
-
(18,941,027)
2,361,005
(4,455,993)
195,597,218
2,743,553
7,668,303
190,874,321
2,743,553
4,131,336
171,647,351
2,494,623
5,937,915
164,465,827
2,494,623
2,392,767
206,009,074
197,749,210
180,079,889
169,353,217
Cost
At 1 January
Freehold land
Leasehold land
Development expenditure
Transfer to property
development costs (Note 9)
Additions
Disposal
At 31 December
Freehold land
Leasehold land
Development expenditure
Included in additions of land held for property development cost incurred during the year of the
Group and of the Company are rental of plant and machinery of RM2,359,124 (2009 : RM Nil)
6. Investment properties
Group
Company
2010
RM
2009
RM
2010
RM
2009
RM
At 1 January
Disposal
2,737,380
-
8,549,913
(5,812,533)
2,565,055
-
8,377,588
(5,812,533)
At 31 December
2,737,380
2,737,380
2,565,055
2,565,055
Cost
Company No. 94528 - T
41
6. Investment properties (continued)
Group
2010
RM
Company
2009
RM
2010
RM
2009
RM
Accumulated depreciation
At 1 January
Depreciation for the year
Disposal
73,000
18,251
-
171,010
43,750
(141,760)
68,404
17,102
-
167,562
42,602
(141,760)
At 31 December
91,251
73,000
85,506
68,404
2,646,129
2,664,380
2,479,549
2,496,651
1,824,880
821,249
1,824,880
839,500
1,709,997
769,552
1,709,997
786,654
2,646,129
2,664,380
2,479,549
2,496,651
Carrying amounts
Included in the above are :
Freehold land
Buildings
The fair value of investment properties shown below are stated at Directors’ estimate :
Group
Company
2010
RM
2009
RM
2010
RM
2009
RM
1,600,000
1,086,000
1,600,000
1,086,000
3,200,000
1,250,000
3,200,000
1,250,000
4,000,000
1,948,000
4,000,000
1,948,000
359,000
359,000
9,159,000
4,643,000
Description of freehold land
and buildings
Shoplots at Georgetown,
North East District, Penang
Land and residential house at
Georgetown, North East
District, Penang
Double storey detached
building at Georgetown,
North East District, Penang
Land and industrial building at
Province Wellesley Central,
Penang
8,800,000
4,284,000
Company No. 94528 - T
42
6. Investment properties (continued)
The following are recognised in profit or loss in respect of investment properties :
Group
Rental income
Direct operating expenses :
- income generating
investment properties
- non-income generating
investment properties
Company
2010
RM
2009
RM
2010
RM
2009
RM
253,660
230,160
253,660
230,160
19,114
19,366
19,114
19,366
34,013
136,762
32,518
133,826
7. Investments in subsidiaries
Company
2010
RM
2009
RM
Unquoted shares
At cost
Less : Impairment loss
23,499,659
(1,153,000)
23,499,659
(1,153,000)
22,346,659
22,346,659
The subsidiaries, all of which are incorporated in Malaysia, are as follows :
Name of subsidiary
Percentage of
Equity Held
2010
2009
%
%
Principal Activities
Ultra-Bina Sdn. Berhad
100
100
Property development and building
construction
Fung Yik Sdn. Bhd.
100
100
Property development
Asas Mutiara Sdn. Bhd.
100
100
Property development
Permai Baru Sdn. Bhd.
100
100
Property development
Asas Land Development Sdn. Bhd.
Mastiara Construction Sdn. Bhd.
* 99.9
100
* 99.9 Property development
100
Property development and civil
construction
Company No. 94528 - T
43
7. Investments in subsidiaries (continued)
Name of subsidiary
Percentage of
Equity Held
2010
2009
%
%
Principal Activities
Asas Dunia Development &
Construction Sdn. Bhd.
100
100
Property development and
construction. The Company also
involved in trading of building
material during the financial year.
Asas Dunia Quarry Industries Sdn.
Bhd.
100
100
Trading of building materials
*
The remaining shares are held by minority shareholders.
8. Other investments
Group/Company
RM
2010
Quoted shares in Malaysia
At fair value
Available-for-sale financial assets
-
Market value of quoted investments
-
2009
Quoted shares in Malaysia
At cost
Less : allowance for diminution in value
6,727,008
(6,186,248)
540,760
Market value of quoted investments
771,000
The comparative figure as at 31 December 2009 have not been presented based on the new
categorisation of financial assets resulting from the adoption of FRS 139 by virtue of the
exemption given in FRS 7.44AA.
Company No. 94528 - T
44
9. Property development costs
Group
Company
2010
RM
2009
RM
2010
RM
2009
RM
39,752,640
16,966,888
25,787,306
68,990,627
39,752,640
18,254,110
25,703,247
70,807,832
(1,176,210)
(10,130,595)
(1,302,982)
(10,283,497)
55,543,318
84,647,338
56,703,768
86,227,582
36,988,371
17,295,477
37,311,481
17,814,105
Costs charged to profit or loss (22,888,961)
Transfer to inventories
(1,774,595)
Transfer from land held for
property development
(Note 5)
2,862,887
Disposal
(171,220)
(9,903,812)
(55,436,712)
(24,500,417)
(2,084,624)
(10,315,405)
(55,963,541)
18,941,027
-
(171,220)
18,941,027
-
(21,971,889)
(46,399,497)
(26,756,261)
(47,337,919)
Freehold land
42,749,837
Development costs
41,297,948
Accumulated costs charged to
profit or loss
(13,487,985)
39,752,640
16,966,888
40,314,853
40,974,050
39,752,640
18,254,110
(1,176,210)
(14,029,915)
(1,302,982)
70,559,800
55,543,318
67,258,988
56,703,768
At 1 January
Freehold land
Development costs
Accumulated costs charged to
profit or loss
Add :
Development costs incurred
during the year
Less :
At 31 December
Company No. 94528 - T
45
9. Property development costs (continued)
9.1
Included in development costs of the Group and of the Company are :
i) rental of plant and machinery for the year amounting to RM523,541 (2009 :
RM2,638,212) and RM535,444 (2009 : RM2,650,464) respectively.
ii) property development costs in respect of joint-venture projects are as follows :
Group
Company
2010
RM
2009
RM
2010
RM
2009
RM
3,155,351
3,690,055
3,671,686
4,259,551
1,340,229
3,420,926
1,477,915
4,006,457
-
-
4,495,580
7,110,981
Project
Asas Murni *
Taman Impian
Indah *
Taman Sungai Duri
Indah II *
*
817,961
5,967,562
8,266,008
The joint-venture partner is entitled to 20% to 30% of gross sales proceeds.
10. Receivables, deposits and prepayments
Note
Group
2010
RM
Company
2009
RM
2010
RM
2009
RM
9,728,013
11,729,008
Trade
Trade receivables
Amount due from
subsidiaries
Accrued billings
10.1
10,986,493
14,261,531
10.2
2,125,349
883,591
3,300,680
2,026,831
5,117,111
845,298
13,111,842
15,145,122
15,055,524
17,691,417
Company No. 94528 - T
46
10. Receivables, deposits and prepayments (continued)
Note
Group
Company
2010
RM
2009
RM
2010
RM
2009
RM
451,230
212,515
124,894
115,973
332,636
116,587
11,237,648
417,594
194,965
74,742
16,448,835
74,782
312,646
36,913
788,639
565,196
11,924,949
16,873,176
13,900,481
15,710,318
26,980,473
34,564,593
Non-trade
Amount due from
subsidiaries
Other receivables
Deposits
Prepayments
10.2
10.1 Trade receivables
Trade receivables are denominated in functional currency.
10.2 Amount due from subsidiaries
The trade receivables from subsidiaries are subject to the normal trade terms.
The non-trade receivables due from subsidiaries are unsecured, interest-free and
repayable on demand.
11. Inventories
Group
Completed development
properties
Building materials
Company
2010
RM
2009
RM
2010
RM
2009
RM
89,858,387
48,436
107,584,211
147,307
68,014,590
46,187
81,290,569
48,897
89,906,823
107,731,518
68,060,777
81,339,466
Company No. 94528 - T
47
11. Inventories (continued)
Included in the completed development properties of the Group and of the Company are
completed development properties relating to joint-venture projects as follows :
Group
2010
RM
Company
2009
RM
2010
RM
2009
RM
Asas Murni and Asas Parade * 34,102,660
Menara Asas **
5,036,849
Taman Impian Indah *
1,934,499
Taman Jawi Indah ***
2,594,730
35,475,423
5,036,849
2,268,602
5,263,198
34,154,659
5,036,849
2,283,370
-
35,555,606
5,036,849
2,658,535
-
43,668,738
48,044,072
41,474,878
43,250,990
Project
*
The joint-venture partner is entitled to 20% to 30% of gross sales proceeds.
** The Group and the Company are entitled to a net profit of RM6,500,000 of the project.
*** The joint-venture partner is entitled to 15% of gross sales proceeds.
The joint-venture partner of Menara Asas is Asas Dunia Properties Sdn. Bhd., a company in
which Mr. Chan Leong Foon has substantial financial interests. Other Directors i.e. Dato’ Chan
Fook Sing, Mr. Chan Fook Sun and Mr. Chan Fook Hean are also deemed interested in Asas
Dunia Properties Sdn. Bhd. by virtue of their family relationship with Mr. Chan Leong Foon.
The joint-venture partner of Asas Parade, Asas Murni, Taman Impian Indah and Taman Jawi
Indah is Dyner Resources Sdn. Bhd., a company in which Dato’ Chan Fook Sing, Mr. Chan
Fook Sun and Mr. Chan Fook Hean have substantial financial interests.
12. Cash and cash equivalents
Group
Deposits with a licensed bank
Cash and bank balances
Company
2010
RM
2009
RM
2010
RM
2009
RM
14,652,608
1,567,268
10,307,762
586,964
14,652,608
1,343,682
10,307,762
399,364
16,219,876
10,894,726
15,996,290
10,707,126
Included in cash and bank balances of the Group and of the Company are amounts of
RM970,248 (2009 : RM159,002) and RM970,248 (2009 : RM158,110) respectively held under
Housing Development Account as required under the Housing Developers (Housing
Development Account) (Amendment) Regulations 2002.
Company No. 94528 - T
48
13. Capital and reserves
Share capital
Group/Company
2010
2009
RM
Number of
shares
RM
Number of
shares
Authorised
500,000,000
500,000,000
500,000,000
500,000,000
Issued and fully paid
191,595,776
191,595,776
191,595,776
191,595,776
Ordinary shares of RM1 each
Reserves
Note
Group
Company
2010
RM
2009
RM
2010
RM
2009
RM
15,960,000
15,960,000
15,960,000
15,960,000
818,502
500,000
(781,600)
818,502
500,000
(781,600)
818,502
(781,600)
818,502
(781,600)
16,496,902
16,496,902
15,996,902
15,996,902
13.4 160,386,185
141,766,294
100,769,044
87,232,607
176,883,087
158,263,196
116,765,946
103,229,509
Non-distributable :
Share premium
Asset revaluation
reserve
Capital reserve
Treasury shares
13.1
13.2
13.3
Distributable :
Retained earnings
The movements in the reserves are disclosed in the statements of changes in equity.
13.1 Asset revaluation reserve
The asset revaluation reserve represents surplus arising from the revaluation of certain
freehold land.
Company No. 94528 - T
49
13. Capital and reserves (continued)
13.2 Capital reserve
The capital reserve arose as a result of bonus issue by a subsidiary through capitalisation
of its retained earnings.
13.3 Treasury shares
The shareholders of the Company, by a special resolution passed in a general meeting,
approved the Company’s plan to repurchase its own shares. The Directors of the
Company are committed to enhance the value of the Company to its shareholders and
believe that the repurchase plan can be applied in the best interests of the Company and
its shareholders.
During the financial year, the Company did not repurchase any of its issued share capital
from the open market.
At 31 December 2010, the Group held 743,000 (2009 : 743,000) of the Company’s
shares.
13.4 Retained earnings
At the forthcoming Annual General Meeting, a first and final dividend of 5% less 25%
tax in respect of the financial year ended 31 December 2010 will be proposed for
shareholders’ approval. These financial statements do not reflect this final dividend
which will be accounted for as an appropriation of retained earnings from shareholders’
funds in the financial year ending 31 December 2011 when approved by shareholders.
13.5 Section 108 tax credit
Subject to agreement with the Inland Revenue Board, the Company has sufficient Section
108 tax credit and tax exempt income to frank/distribute its entire retained earnings at 31
December 2010 if paid out as dividends.
The Finance Act, 2007 introduced a single tier company income tax system with effect
from year of assessment 2008. As such, the Section 108 tax credit as at 31 December
2010 will be available to the Company until such time the credit is fully utilised or upon
expiry of the six-year transitional period on 31 December 2013, whichever is earlier.
Company No. 94528 - T
50
14. Borrowings
Group/Company
2010
2009
RM
RM
Non-current (unsecured)
Al-Bai Bithaman Ajil Term Financing (BBA - TF)
Term loan
Finance lease liabilities
571,432
10,824,263
10,297
1,142,860
6,666,550
-
11,405,992
7,809,410
571,428
5,000,000
5,195,664
41,191
571,428
12,000,000
15,333,460
-
10,808,283
27,904,888
22,214,275
35,714,298
Current (unsecured)
BBA - TF
Revolving credit
Term loan
Finance lease liabilities
The borrowings are denominated in functional currency.
Term and debt repayment schedule
2010
BBA - TF
Revolving credit
Term loan
Total
RM
Under 1
year
RM
1 - 2 years
RM
2 - 5 years
RM
1,142,860
5,000,000
16,019,927
571,428
5,000,000
5,195,664
571,432
5,195,664
5,628,599
1,714,288
12,000,000
22,000,010
571,428
12,000,000
15,333,460
571,428
6,666,550
571,432
-
2009
BBA - TF
Revolving credit
Term loan
Company No. 94528 - T
51
14. Borrowings (continued)
Finance lease liabilities
Finance lease liabilities are payable as follows :
2010
Minimum
lease
payments
RM
Less than 1 year
Between 1 and 5
years
2009
Interest
RM
Principal
RM
43,632
2,441
41,191
10,908
611
54,540
3,052
Minimum
lease
payments
RM
Interest
RM
Principal
RM
-
-
-
10,297
-
-
-
51,488
-
-
-
2009
RM
2010
RM
2009
RM
15. Deferred tax (assets)/liabilities
Recognised deferred tax (assets)/liabilities
Deferred tax (assets)/liabilities are attributable to the following :
Assets
Group
Property, plant and
equipment
- revaluation
- capital allowance
Provisions
Liability
Net
2010
RM
2009
RM
2010
RM
143,095
17,500
(483,595)
143,095
(605,095)
15,000
-
8,455
-
143,095
32,500
(483,595)
143,095
8,455
(605,095)
(323,000)
(462,000)
15,000
8,455
(308,000)
(453,545)
Assets
Company
Property, plant and equipment
- capital allowance
- revaluation
Provisions
2010
RM
2009
RM
17,500
143,095
(483,595)
143,095
(605,095)
(323,000)
(462,000)
Company No. 94528 - T
52
15. Deferred tax (assets)/liabilities (continued)
The components and movements of deferred tax (assets)/liabilities during the year are as
follows :
Group
At 1 January
2009
RM
Property, plant and equipment
- revaluation
- capital allowance
Provisions
Recognised
in profit or
loss
(Note 24)
RM
Recognised
in profit or
loss
(Note 24)
RM
At 31
December
2009
RM
At 31
December
2010
RM
143,095
8,455
(92,329)
(512,766)
143,095
8,455
(605,095)
24,045
121,500
143,095
32,500
(483,595)
59,221
(512,766)
(453,545)
145,545
(308,000)
143,095
(92,329)
(512,766)
143,095
(605,095)
17,500
121,500
143,095
17,500
(483,595)
50,766
(512,766)
(462,000)
139,000
(323,000)
Company
Property, plant and equipment
- revaluation
- capital allowance
Provisions
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items (standard at
gross) :
Group
2010
RM’000
Tax loss carry-forwards
Unabsorbed capital allowance
2009
RM’000
138
940
120
940
1,078
1,060
The tax loss carry-forward and unabsorbed capital allowance do not expire under current tax
legislation. Deferred tax assets have not been recognised in respect of these items because it is
not probable that future taxable profit will be available against which the Group can utilise the
benefit there form.
Company No. 94528 - T
53
16. Provisions
This represents the provisions for :
Group/Company
2010
2009
RM
RM
Interest and legal fees payable
Liquidated ascertained damages
1,966,251
27,424
2,158,026
27,424
1,993,675
2,185,450
Provision for interest and legal fees payable are made in respect of the legal suits filed by
certain purchasers against the Company to rescind the Sale and Purchase Agreements for retail
units in a shopping complex.
Provision for liquidated ascertained damages is in respect of projects undertaken by the Group
and the Company.
17. Payables and accruals
Note
Group
Company
2010
RM
2009
RM
2010
RM
2009
RM
12,622,316
7,273,440
6,485,429
3,290,200
40,516,712
39,416,143
Trade
Trade payables
Amount due to
subsidiaries
17.1
17.2
-
-
12,622,316
7,273,440
47,002,141
42,706,343
3,005,109
65,835
3,516,925
71,715
6,752,869
2,903,634
46,200
3,982,429
3,031,117
46,200
3,070,944
3,588,640
9,702,703
7,059,746
15,693,260
10,862,080
56,704,844
49,766,089
Non-trade
Amount due to
subsidiaries
Other payables
Accrued expenses
17.2
17.1 Trade payables
Trade payables are denominated in functional currency.
Included in trade payables of the Group and of the Company are amount of RM3,888,120
(2009 : RM1,577,545) and RM2,470,451 (2009 : RM587,096) respectively representing
amount due to related parties.
Company No. 94528 - T
54
17. Payables and accruals (continued)
17.2 Amount due to subsidiaries
The trade payables to subsidiaries are subject to the normal trade terms.
The non-trade amount due to subsidiaries is unsecured, interest-free and repayable on
demand.
18. Revenue
Revenue of the Group and of the Company consist of the following :
Group
2010
RM
Dividend income from shares
quoted in Malaysia
17,440
Property development revenue 36,418,500
Rental income from
properties
797,126
Sale of land
930,724
Sale of completed
development properties
34,466,385
Sale of building materials
190,333
72,820,508
Company
2009
RM
2010
RM
2009
RM
8,430
12,807,513
17,440
36,320,251
8,430
12,417,899
721,484
8,982,759
572,110
617,724
462,708
8,331,530
21,658,975
90,344
23,644,530
70,909
15,547,519
90,179
44,269,505
61,242,964
36,858,265
19. Cost of sales
Cost of sales of the Group and of the Company include the following :
Group
Property development
expenses
Cost of land
Cost of completed
development properties
Purchase of building materials
Post completion expenses
Company
2010
RM
2009
RM
2010
RM
2009
RM
22,888,961
195,910
9,903,812
4,476,470
24,500,417
171,220
10,315,405
4,048,130
19,500,421
173,131
784,874
11,739,762
65,051
718,607
15,360,605
57,289
784,874
9,643,104
64,978
718,607
43,543,297
26,903,702
40,874,405
24,790,224
Company No. 94528 - T
55
20. Operating profit
Operating profit is arrived at after charging/(crediting) :
Group
2010
RM
Auditors’ remuneration :
- Statutory audit
- KPMG
- current year
- prior year
- Other services
- Affiliates of KPMG
- current year
- prior year
Depreciation
- property, plant and
equipment (Note 3)
- investment properties
(Note 6)
Directors’ remuneration
(Note 22)
Impairment loss
- other investment
- trade receivables
Interest income
(Gain)/Loss on disposal of :
- land held for property
development
- investment properties
- property, plant and
equipment
- other investments
Management fees received
and receivable
Compensation claims
Company
2009
RM
2010
RM
2009
RM
82,000
-
82,000
500
44,000
-
44,000
500
24,600
400
24,600
700
10,300
-
10,300
300
381,466
337,960
217,679
188,773
18,251
43,750
17,102
42,602
2,260,107
2,128,565
2,251,050
2,101,400
275
450,540
(266,632)
(153,162)
275
448,110
(262,912)
(147,763)
(288,310)
-
(9,420,150)
(3,029,227)
(175,351)
(408,356)
(124,334)
43
(130,852)
(408,356)
(124,334)
43
(109,102)
(5,589,714)
(113,896)
-
(79,224)
(5,589,714)
(94,348)
-
-
(9,197,261)
(3,029,227)
21. Employee information
Group
Staff costs (excluding
Directors’ remuneration)
Company
2010
RM
2009
RM
2010
RM
2009
RM
2,504,302
2,181,951
1,636,199
1,493,752
Staff costs of the Group and of the Company include contributions to the Employees Provident
Fund of RM250,674 (2009 : RM212,877) and RM165,824 (2009 : RM146,973) respectively.
Company No. 94528 - T
56
22. Key management personnel compensation
The key management personnel compensation are as follows :
Group
Company
2010
RM
2009
RM
2010
RM
2009
RM
2,101,450
86,000
1,977,650
78,000
2,101,450
86,000
1,977,650
78,000
2,187,450
2,055,650
2,187,450
2,055,650
13,600
50,000
11,750
34,000
13,600
50,000
11,750
34,000
63,600
45,750
63,600
45,750
9,057
27,165
-
-
2,260,107
2,128,565
2,251,050
2,101,400
316,113
317,106
316,113
317,106
2,576,220
2,445,671
2,567,163
2,418,506
Directors of the Company
Executive :
Salaries and other
emoluments
Fees
Non-executive :
Other emoluments
Fees
Other Directors
Executive :
Salaries and other
emoluments
Other key management
personnel
Salaries and other
emoluments
Company No. 94528 - T
57
22. Key management personnel compensation (continued)
The number of Directors of the Company whose total remuneration during the year fall within
the following bands are as follows :
Number of Directors
2010
2009
Executive Directors :
RM250,001 - RM350,000
RM350,001 - RM400,000
RM400,001 - RM450,000
RM500,001 - RM550 000
RM550,001 - RM700,000
RM700,001 - RM750,000
1
1
1
1
1
1
2
-
3
3
Non-executive Directors :
Below RM50,000
23. Finance costs
Group/Company
2010
2009
RM
RM
Interest expense
BBA - TF
Bank overdrafts
Revolving credit
Term loan
Finance lease liabilities
177,432
215,061
525,440
1,831
177,432
849
672,504
661,700
-
919,764
1,512,485
24. Tax expense
Recognised in profit or loss
Group
2010
RM
Company
2009
RM
2010
RM
2009
RM
Current tax expense
Current year
Prior year
6,759,595
(165,043)
4,115,824
316,247
4,990,000
(167,922)
3,171,000
241,074
6,594,552
4,432,071
4,822,078
3,412,074
Company No. 94528 - T
58
24. Tax expense (continued)
Recognised in profit or loss (continued)
Group
2010
RM
Company
2009
RM
2010
RM
2009
RM
Deferred tax expense
Current year
Prior year
5,000
140,545
(462,000)
(50,766)
139,000
(462,000)
(50,766)
145,545
(512,766)
139,000
(512,766)
6,740,097
3,919,305
4,961,078
2,899,308
Reconciliation of effective tax expense
Group
Profit before tax
Tax at Malaysian tax rate of
25%
Non-deductible expenses
Tax exempt income
Deferred tax assets not
recognised/(recognised)
(Over)/Under provided in
prior years
Tax expense
Company
2010
RM
2009
RM
2010
RM
2009
RM
25,359,988
15,564,286
18,497,515
11,934,037
6,339,997
522,262
(102,081)
3,891,072
1,057,380
(781,862)
4,624,379
467,702
(102,081)
2,983,509
1,026,647
(788,390)
4,417
(512,766)
-
(512,766)
(24,498)
265,481
(28,922)
190,308
6,740,097
3,919,305
4,961,078
2,899,308
25. Basic earnings per ordinary share - Group
The calculation of basic earnings per ordinary share was based on the profit for the year
attributable to ordinary shareholders and a weighted average number of ordinary shares
outstanding calculated as follows :
2010
RM
Profit for the year attributable to ordinary shareholders
18,619,891
2009
RM
11,644,981
Company No. 94528 - T
59
25. Basic earnings per ordinary share - Group (continued)
Weighted average number of ordinary shares
2010
’000
2009
’000
Issued ordinary shares at 1 January
Effect of treasury shares held
191,596
(743)
191,596
(743)
Weighted average number of ordinary shares at 31
December
190,853
190,853
Basic earnings per ordinary share
2010
Sen
From continuing operations
9.76
2009
Sen
6.10
26. Operating segment
No segment information is presented as the Group’s business segment is confined to one
segment, property development and construction which is operated solely in Malaysia.
Major customer
During the year, there were no revenue from one single customer that contribute to more than
10% of the Group’s revenue.
27. Related parties - Group/Company
For the purposes of these financial statements, parties are considered to be related to the Group
or the Company if the Group or the Company has the ability, directly or indirectly, to control
the party or exercise significant influence over the party in making financial and operating
decisions, or vice versa, or where the Group or the Company and the party are subject to
common control or common significant influence. Related parties may be individuals or other
entities.
Key management personnel are defined as those persons having authority and responsibility for
planning, directing and controlling the activities of the Group either directly or indirectly. The
key management personnel include all the Directors of the Company, and certain members of
senior management of the Group.
Company No. 94528 - T
60
27. Related parties - Group/Company
27.1 Identity of related parties
i) Its subsidiaries as disclosed in Note 7.
ii) Tony Chan Holdings Sendirian Berhad, a substantial shareholder of the Company in
which Mr. Chan Leong Foon, Dato’ Chan Fook Sing, Mr. Chan Fook Sun and Mr.
Chan Fook Hean have substantial financial interests.
iii) The Company also has a related party relationship with its Directors and key
management personnel and the close members of their families. The Directors and
key management personnel of the Group are :
- Chan Leong Foon
- Ooi Cheng Sim
- Dato’ Chan Fook Sing
- Chan Fook Sun
- Chan Fook Hee
- Chan Fook Hean
iv) The Group also has a related party relationship with Dyner Resources Sdn. Bhd., a
company in which Dato’ Chan Fook Sing, Mr. Chan Fook Sun and Mr. Chan Fook
Hean have substantial financial interests.
v) The Group also has a related party relationship with Solid Block Sdn. Bhd., a
company in which Dato’ Chan Fook Sing, Mr. Chan Fook Sun and Mr. Chan Fook
Hean have substantial financial interests.
27.2 Related party transactions
27.2.1 Transactions with Directors and key management personnel
The remuneration packages paid to them in accordance with the terms and
conditions of their appointment.
27.2.2 Significant related party transactions other than those disclosed elsewhere in the
financial statements are as follows :
Group
2010
RM
2009
RM
Proceeds of sales due and payable to the
landowner pursuant to the joint venture
agreements signed :
- Dyner Resources Sdn. Bhd.
5,443,898
2,063,073
1,180,532
251,270
Purchase of bricks from :
- Solid Block Sdn. Bhd.
Company No. 94528 - T
61
27. Related parties - Group/Company (continued)
27.2 Related party transactions (continued)
Company
2010
RM
2009
RM
Progress billings from :
- Ultra-Bina Sdn. Berhad
- Mastiara Construction Sdn. Bhd.
21,988,155
8,101,876
6,867,668
4,408,039
Proceeds of sales receivable by the
Company as landowner pursuant to the
joint venture agreement signed :
- Asas Mutiara Sdn. Bhd.
-
13,200
Proceeds of sales due and payable to the
landowner pursuant to the joint venture
agreements signed :
- Dyner Resources Sdn. Bhd.
4,317,513
1,270,249
759
447
Purchase of bricks from :
- Solid Block Sdn. Bhd.
27.3 Non trade balance with subsidiaries is disclosed in notes 10 and 17 to the statement of
financial positions.
The related party transactions are priced on an arm’s length basis. All the amount outstanding
are unsecured and expected to be settled with cash.
28. Financial instruments
Certain comparative figures have not been presented for 31 December 2009 by virtue of the
exemption given in paragraph 44AA of FRS 7.
28.1 Categories of financial instruments
The table below provides an analysis of financial instruments categorised as follows:
(a) Loans and receivables (L&R);
(b) Available-for-sale financial assets (AFS); and
(c) Other financial liabilities measured at amortised cost (OL).
Company No. 94528 - T
62
28. Financial instruments (continued)
28.1 Categories of financial instruments (continued)
2010
Carrying
amount
RM
L&R
RM
13,563,072
16,219,876
13,563,072
16,219,876
29,782,948
29,782,948
26,710,766
15,996,290
26,710,766
15,996,290
42,707,056
42,707,056
Carrying
amount
RM
OL
RM
22,214,275
15,693,260
22,214,275
15,693,260
37,907,535
37,907,535
22,214,275
56,704,844
22,214,275
56,704,844
78,919,119
78,919,119
Financial assets
Group
Trade and other receivables
Cash and cash equivalents
Company
Trade and other receivables
Cash and cash equivalents
2010
Financial liabilities
Group
Borrowings
Trade and other payables
Company
Borrowings
Trade and other payables
Company No. 94528 - T
63
28. Financial instruments (continued)
28.2 Net gains and losses arising from financial instruments
Group/
Company
2010
RM
Available-for-sale financial assets
- recognised in other comprehensive income
(229,920)
28.3 Financial risk management
The Group has exposure to the following risks from its use of financial instruments:
 Credit risk
 Liquidity risk
 Market risk
28.4 Credit risk
Credit risk is monitored on an ongoing basis.
At balance sheet date, there were no significant concentrations of credit risk. The
maximum exposure to credit risk is represented by the carrying amount of each financial
asset in the statement of financial position.
Credit risk is the risk of a financial loss to the Group if a customer or counterparty to a
financial instrument fails to meet its contractual obligations. The Group’s exposure to
credit risk arises principally from its receivables from customers and investment
securities. The Company’s exposure to credit risk arises principally from loans and
advances to subsidiaries.
Receivables
Risk management objectives, policies and processes for managing the risk
Management has a credit policy in place and the exposure to credit risk is monitored on
an ongoing basis.
Exposure to credit risk, credit quality and collateral
As at the end of the reporting period, the maximum exposure to credit risk arising from
receivables is represented by the carrying amounts in the statement of financial position.
Management has taken reasonable steps to ensure that receivables that are neither past
due nor impaired are stated at their realisable values. The Group uses ageing analysis to
monitor the credit quality of the receivables and the risk is also mitigated by the deposits
collected from customers.
Company No. 94528 - T
64
28. Financial instruments (continued)
28.4 Credit risk (continued)
Impairment losses
The ageing of trade receivable as at the end of the reporting period was :
Group
Gross
RM
Individual
impairment
RM
Net
RM
7,995,807
1,521,085
142,930
2,348,821
(1,022,150)
7,995,807
1,521,085
142,930
1,326,671
12,008,643
(1,022,150)
10,986,493
2010
Not past due
Past due 1 - 30 days
Past due 31 - 60 days
Past due more than 60 days
2009
Not past due
Past due 1 - 30 days
Past due 31 - 60 days
Past due more than 60 days
10,399,871
2,748,821
166,641
1,517,808
10,399,871
2,748,821
166,641
(571,610)
946,198
14,833,141
(571,610)
10,138,832
1,519,125
142,930
1,675,916
10,138,832
1,519,125
142,930
(448,110) 1,227,806
13,476,803
(448,110) 13,028,693
14,261,531
Company
2010
Not past due
Past due 1 - 30 days
Past due 31 - 60 days
Past due more than 60 days
2009
Not past due
Past due 1 - 30 days
Past due 31 - 60 days
Past due more than 60 days
13,386,556
2,544,911
73,793
840,859
-
13,386,556
2,544,911
73,793
840,859
16,846,119
-
16,846,119
Company No. 94528 - T
65
28. Financial instruments (continued)
28.4 Credit risk (continued)
The movements in the allowance for impairment losses of trade receivables during the
year were :
2010
Group
RM
At 1 January
Impairment loss recognised
At 31 December
Company
RM
571,610
450,540
448,110
1,022,150
448,110
The allowance account in respect of trade receivable is used to record impairment
losses. Unless the Group is satisfied that recovery of the amount is possible, the amount
considered irrecoverable is written off against the receivable directly.
Investments and other financial assets
Risk management objectives, policies and processes for managing the risk
Investments are allowed only in liquid securities and only with counterparties that have
a credit rating equal to or better than the Group. Transactions involving derivative
financial instruments are with approved financial institutions.
Exposure to credit risk, credit quality and collateral
As at the end of the reporting period, the Group has only invested in domestic securities.
The maximum exposure to credit risk is represented by the carrying amounts in the
statement of financial position.
In view of the sound credit rating of counterparties, management does not expect any
counterparty to fail to meet its obligations except for the impairment loss recognised in
respect of quoted debentures below. The Group does not have overdue investments that
have not been impaired.
The investments and other financial assets are unsecured.
Company No. 94528 - T
66
28. Financial instruments (continued)
Inter company balances
Risk management objectives, policies and processes for managing the risk
The Company provides unsecured loans and advances to subsidiaries. The Company
monitors the results of the subsidiaries regularly.
Exposure to credit risk, credit quality and collateral
As at the end of the reporting period, the maximum exposure to credit risk is represented
by their carrying amounts in the statement of financial position.
Loans and advances are only provided to subsidiaries which are wholly owned by the
Company.
Impairment losses
As at the end of the reporting period, there was no indication that the loans and
advances to the subsidiaries are not recoverable. The Company does not specifically
monitor the ageing of the advances to the subsidiaries. Nevertheless, these advances are
repayable on demand.
28.5 Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations
as they fall due. The Group’s exposure to liquidity risk arises principally from its
various payables, loans and borrowings.
The Group maintains a level of cash and cash equivalents and bank facilities deemed
adequate by the management to ensure, as far as possible, that it will have sufficient
liquidity to meet its liabilities when they fall due.
Company No. 94528 - T
67
28. Financial instruments (continued)
28.5 Liquidity risk (continued)
Carrying
amount
RM
Contractual Contractual
interest rate cash flows
%
RM
Under 1
year
RM
1 - 2 years
2 - 5 years
More than
5 years
RM
RM
RM
1,497,668
5,000,000
16,879,795
54,540
15,693,260
748,860
5,000,000
5,658,012
43,632
15,693,260
748,808
5,481,879
10,908
-
5,739,904
-
-
39,125,263
27,143,764
6,241,595
5,739,904
-
1,497,668
5,000,000
16,879,795
54,540
56,704,844
748,860
5,000,000
5,658,012
43,632
56,704,844
748,808
5,481,879
10,908
-
5,739,904
-
-
80,136,847
68,155,348
6,241,595
5,739,904
-
2010
Group
Non-derivative financial
liabilities
BBA-TF
Revolving credit
Term loan
Finance lease liabilities
Trade and other payables
1,142,860
5,000,000
16,019,927
51,488
15,693,260
8.00
2.52
3.39
2.97
37,907,535
Company
Non-derivative financial
liabilities
BBA-TF
Revolving credit
Term loan
Finance lease liabilities
Trade and other payables
1,142,860
5,000,000
16,019,927
51,488
56,704,844
78,919,119
8.00
2.52
3.39
2.97
Company No. 94528 - T
68
28. Financial instruments (continued)
28.6.1 Market risk
Market risk is the risk that changes in market prices, such as interest rates and other
prices will affect the Group’s financial position or cash flows.
28.6.2 Interest rate risk
The Group’s primary interest rate risk is related to debt obligations and deposits,
which are mainly confined to bank borrowings and short term deposits with licensed
banks.
Bank borrowings are on fixed and floating rates terms. The interest rates are
negotiated in order to ensure that the Group benefits from the lowest possible
financing costs.
Cash flow interest rate risk is the risk that the future cash flows of a financial
instrument will fluctuate because of changes in market interest rates. Fair value
interest rate risk is the risk that the value of a financial instrument will fluctuate due to
changes in market interest rates. The Group’s and the Company’s income and
operating interest-earning financial assets are mainly short term in nature and have
been mostly placed in fixed deposits.
Risk management objectives, policies and processes for managing the risk
The Group’s exposure to interest rate risk is not material. Hence sensitivity analysis is
not disclosed.
28.6.3 Other price risk
Equity price risk arises from the Group’s investments in equity securities. Hence,
sensitively analysis is not disclosed.
Risk management objectives, policies and processes for managing the risk
Management of the Group monitors the equity investments on a portfolio basis.
Material investments within the portfolio are managed on an individual basis and all
buy and sell decisions are approved by Directors.
There were no quoted investments at balance sheet date.
Fair values
The carrying amounts approximate fair value due to the relatively short term nature of these
financial instruments in respect of cash and cash equivalents, receivables, payables and short
term borrowings.
The fair value of the quoted investments is disclosed in Note 8.
The Directors believe that there is no significant difference between the fair value and carrying
amount of BBA - TF, term loan and finance lease liabilities.
Company No. 94528 - T
69
29. Capital management
The Group’s objectives when managing capital is to maintain a strong capital base and
safeguard the Group’s ability to continue as a going concern, so as to maintain investor,
creditor and market confidence and to sustain future development of the business. The
Directors monitor and determine to maintain an optimal debt-to-equity ratio that complies
with debt covenants and regulatory requirements. The group currently does not adopt any
dividend policy
30. Significant changes in accounting policies
Group/Company
At 1 January, as previously stated
Fair value reserve
2010
2009
RM
RM
-
-
Adjustment arising from adoption of FRS 139 :
- Fair value of equity securities
229,920
-
At 1 January, as restated
229,920
-
30.1
FRS 101, Presentation of Financial Statements (revised)
The Group applies FRS 101 (revised) which became effective as of 1 January 2010. As
a result, the Group presents all non-owner changes in equity in the consolidated
statement of comprehensive income.
Comparative information has been re-presented so that it is in conformity with the
revised standard. Since the change only affects presentation aspects, there is no impact
on earnings per share.
30.2
FRS 139, Financial Instruments: Recognition and Measurement
The adoption of FRS 139 has resulted in several changes to accounting policies relating
to recognition and measurement of financial statements. Significant changes in
accounting policies are as follows :
Investment in equity securities
Prior to the adoption of FRS 139, investments in non-current equity securities, other
than investments in subsidiaries were stated at cost less allowance for diminution in
value which is other than temporary. With the adoption of FRS 139, quoted investments
in non-current equity securities, other than investments in subsidiaries are now
categorised and measured as available-for-sales as detailed in note 2(g).
Company No. 94528 - T
70
30. Significant changes in accounting policies (continued)
30.2
FRS 139, Financial Instruments: Recognition and Measurement (continued)
Impairment of trade and other receivables
Prior to the adoption of FRS 139, an allowance for doubtful debts was made when a
receivable is considered irrecoverable by the management. With the adoption of FRS
139, an impairment loss is recognised for trade and other receivables and is measured as
the difference between the asset’s carrying amount and the present value of estimated
future cash flows discounted at the asset’s original effective interest rate.
These changes in accounting policies have been made in accordance with the
transitional provisions of FRS 139. In accordance to the transitional provisions of FRS
139 for first-time adoption, adjustments arising from remeasuring the financial
instruments at the beginning of the financial year were recognised as adjustments of the
opening balance of retained earnings or another appropriate reserve. Comparatives are
not adjusted.
Consequently, the adoption of FRS 139 does not affect the basic and diluted earnings
per ordinary share for prior periods. It is not practicable to estimate the impact arising
from the adoption of FRS 139 to the current year’s basic and diluted earnings per share.
31. Comparative figures
FRS 101 (revised), Presentation of Financial Statements
Arising from the adoption of FRS 101 (revised), income statements for the year ended 31
December 2009 have been re-presented as statement of comprehensive income. All nonowner changes in equity that were presented in the statement of changes in equity are now
included in the statement of comprehensive income as other comprehensive income.
Consequently, components of comprehensive income are not presented in the statement of
changes in equity.
Company No. 94528 - T
71
32. Supplementary information on the breakdown of realised and
unrealised profits or losses
On 25 March 2010, Bursa Malaysia Securities Berhad (“Bursa Malaysia”) issued a directive to
all listed issuers pursuant to Paragraphs 2.06 and 2.23 of Bursa Malaysia Main Market Listing
Requirements. The directive requires all listed issuers to disclose the breakdown of the
inappropriate profits or accumulated losses as at the end of the reporting period, into realised
and unrealised profits or losses.
On 20 December 2010, Bursa Malaysia further issued another directive on the disclosure and
the prescribed format of presentation.
The breakdown of the retained earnings of the Group and of the Company as at 31 December
2010, into realised and unrealised profits, pursuant to the directive, is as follows :
2010
Group
RM’000
Company
RM’000
Total retained earnings of the Company and its subsidiaries
- realised
- unrealised
Less : Consolidation adjustments
Total retained earnings
170,692
(1,543)
102,297
(1,528)
169,149
100,769
(8,763)
160,386
100,769
The determination of realised and unrealised profits is based on the Guidance of Special Matter
No. 1, Determination of Realised and Unrealised Profit or Losses in the Context of Disclosure
Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by Malaysian
Institute of Accountants on 20 December 2010.
Comparative figures are not required in the first financial year of complying with the
disclosure.
72
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
and its subsidiaries
Statement by Directors pursuant to
Section 169(15) of the Companies Act, 1965
In the opinion of the Directors, the financial statements set out on pages 7 to 70 are drawn up in
accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so as to
give a true and fair view of the financial position of the Group and of the Company at 31 December
2010 and of their financial performance and cash flows for the year ended on that date.
In the opinion of the Directors, the information set out in note 32 to the financial statements has been
compiled in accordance with the Guidance on Special Matter No. 1 Determination of Realised and
Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities
Berhad Listing Requirements, issued by the Malaysian Institute of Accountants, and presented based
on the format prescribed by Bursa Malaysia Securities Berhad.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors :
……………………………
Chan Leong Foon
……………………………
Dato’ Chan Fook Sing
Penang,
Date : 6 April 2011
73
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
and its subsidiaries
Statutory declaration pursuant to
Section 169(16) of the Companies Act, 1965
I, Lim Lian Kin, the officer primarily responsible for the financial management of Asas Dunia
Berhad, do solemnly and sincerely declare that the financial statements set out on pages 7 to 71 are,
to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously
believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the abovenamed at Georgetown in the State of Penang on 6
April 2011.
………………………………
Lim Lian Kin
Before me :
Penang
74
Independent auditors’ report to the members of
Asas Dunia Berhad
(Company No. 94528 - T)
(Incorporated in Malaysia)
Report on the Financial Statements
We have audited the financial statements of Asas Dunia Berhad, which comprise the statements of
financial position as at 31 December 2010 of the Group and of the Company, and statements of
comprehensive income, changes in equity and cash flows of the Group and of the Company for the
year then ended, and a summary of significant accounting policies and other explanatory
information, as set out on pages 7 to 70.
Directors’ Responsibility for the Financial Statements
The Directors of the Group are responsible for the preparation of financial statements that give a true
and fair view in accordance with Financial Reporting Standards and the Companies Act, 1965 in
Malaysia, and for such internal control as the Directors determine are necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on our judgment, including the
assessment of risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, we consider internal control relevant to the entity’s
preparation of the financial statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by
the Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
75
Company No. 94528 - T
Opinion
In our opinion, the financial statements have been properly drawn up in accordance with Financial
Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of
the financial position of the Group and of the Company as of 31 December 2010 and of their
financial performance and cash flows for the year then ended.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the
following:
a) In our opinion, the accounting and other records and the registers required by the Act to be kept
by the Company and its subsidiaries have been properly kept in accordance with the provisions
of the Act.
b) We are satisfied that the accounts of the subsidiaries that have been consolidated with the
Company’s financial statements are in form and content appropriate and proper for the purposes
of the preparation of the financial statements of the Group and we have received satisfactory
information and explanations required by us for those purposes.
c) Our audit reports on the accounts of the subsidiaries did not contain any qualification or any
adverse comment made under Section 174(3) of the Act.
Other Reporting Responsibilities
Our audit was made for the purpose of forming an opinion on the financial statements taken as a
whole. The information set out in note 32 to the financial statements has been compiled by the
Company as required by the Bursa Malaysia Securities Berhad Listing Requirements and is not part
of the financial statements. We have extended our audit procedures to report on the process of
compilation of such information. In our opinion, the information has been properly compiled, in all
material respects, in accordance with the Guidance on Special Matter No. 1, Determination of
Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia
Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants and
presented based on the format prescribed by Bursa Malaysia Securities Berhad.
76
Company No. 94528 - T
Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section
174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume
responsibility to any other person for the content of this report.
KPMG
AF 0758
Chartered Accountants
Date : 6 April 2011
Penang
Ng Swee Weng
1414/03/12 (J/PH)
Chartered Accountant