PERS Model financial statements - AXP Solutions
PERS Model financial statements - AXP Solutions
PERS Model financial statements - AXP Solutions
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Model</strong> <strong>PERS</strong><br />
www.my<strong>AXP</strong>.com<br />
Copyright © 2007 - 2009. All rights reserved. <strong>AXP</strong> <strong>Solutions</strong> Sdn. Bhd. Printed in Malaysia.<br />
2009 edition<br />
Financial Statements
FOREWORD<br />
In 2007, <strong>AXP</strong> issued <strong>Model</strong> Financial Statements for Financial Reporting Standards (“FRS”) and received<br />
encouraging responses from customers and other Audit Practitioners. It was also suggested that we should<br />
prepare <strong>Model</strong> Financial Statements for Private Entity Reporting Standards (“<strong>PERS</strong>”) as well.<br />
In response, and as part of our mission to assist Audit Practitioners to resolve contemporary issues, we have<br />
therefore prepared <strong>Model</strong> Financial Statements for <strong>PERS</strong> (“<strong>Model</strong> FS (<strong>PERS</strong>)”). Our aim is to assist both our<br />
existing auditing clients and other Audit Practitioners and companies to audit and/or prepare statutory<br />
<strong>financial</strong> <strong>statements</strong> that are in compliance with prevailing <strong>financial</strong> reporting and disclosure requirements of<br />
the Companies Act 1965 (“CA”) and Malaysian <strong>PERS</strong>.<br />
The MASB issued Exposure Draft 52 Private Entity Reporting Standards in 2006, and IASB issued Exposure<br />
Draft of the proposed International Financial Reporting Standards for Small and Medium-sized Entities (“IFRS<br />
for SMEs”) in 2007.<br />
On 9 July 2009, IASB issued IFRS for SMEs. However, MASB’s revised <strong>PERS</strong> has not been finalised at the date<br />
of publishing our <strong>Model</strong> FS (<strong>PERS</strong>). Thus, our <strong>Model</strong> FS (<strong>PERS</strong>) are prepared on the basis of existing MASB<br />
Approved Accounting Standards for Private Entities.<br />
Our <strong>Model</strong> FS (<strong>PERS</strong>) are based on a fictitious group of companies called <strong>Model</strong> Group Sdn. Bhd. and its<br />
subsidiaries for the <strong>financial</strong> year ended 31 December 2009. We trust that you will find this publication a useful<br />
reference point when you are auditing or preparing statutory <strong>financial</strong> <strong>statements</strong> in compliance with <strong>PERS</strong>.<br />
While every effort has been made to ensure that our <strong>Model</strong> FS (<strong>PERS</strong>) demonstrates all the possible presentation<br />
and disclosure requirements of the <strong>PERS</strong>, it should not be used as a substitute for the laws, regulations and<br />
existing body of <strong>PERS</strong>. However, should you have any questions on the application of any of the statutory or<br />
<strong>financial</strong> reporting requirements not presented in this publication, you are welcomed to contact our Technical<br />
Support Unit for assistance.<br />
REFERENCES IN THIS PUBLICATION<br />
To the left of each disclosure items, references are made to CA or <strong>PERS</strong>. Requirements under the CA are shown<br />
with “CA”, and requirement under Ninth Schedule of the CA are shown with “CA9”. If the disclosures are<br />
required under both CA and <strong>PERS</strong>, references are only made to <strong>PERS</strong>. Where there are alternative applications<br />
allowed under the <strong>PERS</strong>, we have also presented the alternative disclosures throughout this publication for<br />
your reference.<br />
SCOPE OF THIS PUBLICATION<br />
Our <strong>Model</strong> FS (<strong>PERS</strong>) covers <strong>PERS</strong> issued by the MASB applicable to all accounting periods commencing on or<br />
after 1 January 2009, as follows:<br />
<strong>PERS</strong><br />
Descriptions<br />
MASB 1 Presentation of Financial Statements<br />
MASB 2 Inventories<br />
MASB 3 Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies<br />
MASB 4 Research and Development Costs<br />
MASB 5 Cash Flow Statements<br />
MASB 6 The Effects of Changes in Foreign Exchange Rates
<strong>PERS</strong><br />
Descriptions<br />
MASB 7 Construction Contracts<br />
MASB 9 Revenue<br />
MASB 10 Leases<br />
MASB 11 Consolidated Financial Statements and Investments in Subsidiaries<br />
MASB 12 Investments in Associates<br />
MASB 14 Depreciation Accounting<br />
MASB 15 Property, Plant & Equipment<br />
MASB 16 Financial Reporting of Interests in Joint Venture<br />
MASB 19 Events after the Balance Sheet Date<br />
MASB 20 Provisions, Contingent Liabilities & Contingent Assets<br />
MASB 23 Impairment of Assets<br />
MASB 25 Income Taxes<br />
MASB 27 Borrowing Costs<br />
MASB 29 Employee Benefits<br />
MASB 31 Accounting for Government Grants and Disclosure of Government Assistance<br />
MASB 32 Property Development Activities<br />
IAS 25 Accounting for Investments<br />
MAS 5 Accounting for Aquaculture<br />
However, our <strong>Model</strong> FS (<strong>PERS</strong>) does not include the presentation and disclosure requirements of:<br />
<strong>PERS</strong> Descriptions<br />
MASB 28 Discontinuing Operations<br />
MASB 30 Accounting and Reporting by Retirement Benefit Plans<br />
IAS 29 Financial Reporting in Hyperinflationary Economies<br />
IB-1 Preliminary and Pre-operating Expenditure<br />
<strong>AXP</strong> has exercised professional due care and diligence in the preparation of our <strong>Model</strong> FS (<strong>PERS</strong>). However,<br />
the information contained herein is intended to be a general guide. While every effort has been made to ensure<br />
accuracy, no liability is accepted by <strong>AXP</strong> or any member of <strong>AXP</strong> on any grounds whatsoever to any party in<br />
respect of any errors or omissions, or any action or omission to act a result of the information contained in our<br />
<strong>Model</strong> FS (<strong>PERS</strong>).<br />
ABOUT US<br />
<strong>AXP</strong> was formed in 2005 by a team of qualified accountants with years of extensive experience in both the<br />
public practice and commercial sector. Through extensive research and development since 2001 under both its<br />
predecessor and <strong>AXP</strong>, we have successfully developed in-house a wide range of IT tools and solutions for Audit<br />
Practitioners. Besides being able to optimise the business value of IT in the audit practice, our products also<br />
possess enhanced features and updates that are in full compliance with the requirements of the prevailing FRS<br />
and <strong>PERS</strong>.
ABOUT THE EDITORIAL TEAM<br />
The editorial team of this publication consists of both <strong>AXP</strong>’s Technical Adviser and Business Partners, who<br />
jointly possess a vast experience in <strong>financial</strong> reporting and wide exposure to the accounting industry in general.<br />
The profile of each team member is as follows:<br />
Keith Farmer, FCA, B.A., Technical Adviser of <strong>AXP</strong>, holds an honours degree in Economics and became a<br />
Fellow of the Institute Chartered of Accountants in England and Wales (“ICAEW”) in January 1983. He taught<br />
in London at the London School of Accountancy and Emile Woolf College and at the University of Essex until<br />
he came to Asia in early 1994. He has been based in Asia ever since.<br />
His specialist subject is Financial Accounting. He has conducted courses for both students and practitioners in<br />
many parts of the world, including the UK, Malaysia, Singapore, Hong Kong, Kenya, and Mauritius for both<br />
private colleges and the Association of Chartered Certified Accountants (“ACCA”). His students have<br />
consistently won numerous prizes in the ACCA examinations.<br />
Whilst Keith is justifiably proud of individual student performance, his key aim is to convey a fundamental<br />
understanding of the basic principles and concepts which underlie <strong>financial</strong> accounting and a detailed<br />
knowledge and application of the requirements of accounting standards. This is based on the three core<br />
principles of education: instruction, demonstration and experience. Understanding is important, in fact it is a<br />
prerequisite to developing the level of knowledge required to sit examinations with confidence and inspires<br />
individuals to achieve far more than they ever expected in far less time than they ever anticipated.<br />
In furtherance of achieving his aim, Keith has recently embarked upon a three point strategy. Firstly, he is<br />
writing a series of books, primarily aimed at students, covering consolidation and accounting standards which<br />
contain numerous progressive worked examples. Secondly, he is currently engaged in developing a series of<br />
DVD's which, together with the books, will form an integral part of a new co-ordinated learning package.<br />
Finally, in the near future, this learning package will be extended to a structured continuing professional<br />
development programme.<br />
Ivan Er Soon Lock, C.A.(M), FCCA, B.Com(NZ), is a member of the Malaysian Institute of Accountants (“MIA”)<br />
and a fellow member of ACCA. Ivan first joined Deloitte KassimChan (“DKC”) in 1997 as an audit assistant,<br />
and subsequently became an Audit Manager. He left DKC in 2003 to join Horwath, another international public<br />
practice. At Horwath, he was soon promoted to become an Audit Principal.<br />
His experience includes managing the audit and the corporate finance functions and the setting up of the<br />
business improvement division of the practice, assisting companies listing on the stock exchange by providing<br />
consultancy services on listing exercise and <strong>financial</strong> management, advising on good accounting and internal<br />
control systems to a wide range of companies, provision of technical training on FRS and <strong>PERS</strong> and conducting<br />
due-diligence review on companies in Malaysia and China. Currently, he is also an independent director of a<br />
company listed on the MESDAQ Market of the Bursa Malaysia.<br />
Eric Chia Kok Haur, C.A.(M), C.A.(NZ), B.Com(Hons), is a member of the MIA and New Zealand Institute of<br />
Chartered Accountants (“NZICA”). Eric started his career as an audit assistant with DKC in 1997. He was an<br />
Assistant Audit Manager when he left the firm to join KPMG Singapore in 2000. He was also an Assistant Audit<br />
Manager at KPMG, where he served until 2003. From KPMG, he moved on to H W Kuah & Co., another public<br />
practice in Singapore, as the Audit Manager.<br />
Eric is well-versed with the <strong>financial</strong> reporting environment of both Malaysia and Singapore. In addition, as he<br />
has spearheaded major audit assignments in China, he is also familiar with China <strong>financial</strong> reporting<br />
requirements. His experience includes managing audit and due diligence assignments, monitoring the<br />
budgetary function of the practice, provision of advisory services for corporate exercises and corporate<br />
governance matters, preparation and review of published <strong>financial</strong> <strong>statements</strong>, including those of significantly<br />
large groups of companies, and conducting training on technical subjects.
CONTACT US<br />
<strong>AXP</strong> Technical Support Unit<br />
Corporate Headquarters<br />
83A, Jalan Emas Satu, Taman Sri Skudai, 81300 Johor Bahru, Johor, Malaysia.<br />
Tel: 1300-882 <strong>AXP</strong> (1300-882 297) or 607-557 5722<br />
Fax: 607-557 7697<br />
Central Malaysia<br />
C-2-16, SME Technopreneur Centre Cyberjaya, 2270, Jalan Usahawan 2, 63000 Cyberjaya, Selangor, Malaysia.<br />
Tel: 1300-882 <strong>AXP</strong> (1300-882 297) or 603-8315 6168<br />
Fax: 603-8315 6198<br />
Singapore<br />
Blk 4008, Ang Mo Kio Ave 10, #01-10A, TechPlace 1, Singapore 569625.<br />
Tel: 65-6876 7297<br />
Fax: 65-6454 7660<br />
support@my<strong>AXP</strong>.com<br />
1300-882-<strong>AXP</strong> (1300-882-297)<br />
Copyright © 2007 - 2009. All rights reserved. <strong>AXP</strong> <strong>Solutions</strong> Sdn. Bhd.<br />
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by<br />
any means, electronic, mechanical, photocopying, recording, scanning, or otherwise without the prior written<br />
permission of the publisher. However, written permission need not be obtained from the publisher if it is used<br />
internally within the Firm.
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
TABLE OF CONTENTS<br />
Report of the Directors 1 – 5<br />
Statement by the Directors 6<br />
Statutory Declaration 6<br />
Independent Auditors’ Report to the Members 7 – 8<br />
Page No.<br />
Financial Statements<br />
Balance Sheets 9 – 10<br />
Income Statements – Expenses Classified by Function 11<br />
Income Statements – Expenses Classified by Nature 12<br />
Statements of Changes in Equity 13 – 14<br />
Cash Flow Statements – Indirect Method 15 – 16<br />
Notes to the Financial Statements<br />
General Information 17<br />
Basis of Preparation 17<br />
Significant Accounting Policies 17 – 26<br />
Property, Plant and Equipment 27 – 30<br />
Investment Property 30 – 31<br />
Land Held for Development 31<br />
Goodwill 32<br />
Other Intangible Assets 33 – 34<br />
Subsidiaries 34 – 36<br />
Investment in Associates 36 – 38<br />
Investment in Jointly-Controlled Entities 38 – 39<br />
Other Investments 39<br />
Deferred Tax Assets/Liabilities 40 – 41<br />
Property Development Costs 41 – 42<br />
Inventories 42<br />
Trade and Other Receivables 43<br />
Gross Amount Due from Customers 43<br />
Fixed Deposits with Licensed Banks 44<br />
Cash and Bank Balances 44<br />
Trade and Other Payables 44<br />
Gross Amount Due to Customers 45<br />
Hire Purchase and Finance Lease Payables 45<br />
Bank Overdrafts and Other Bank Borrowings 46<br />
Provisions 46 – 47<br />
Share Capital 47 – 48<br />
Share Premium 48<br />
Revaluation Reserves 48<br />
Translation Reserves 49
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
Page No.<br />
Retained Profits 49<br />
Retirement Benefit Obligation 49 – 51<br />
Revenue 52<br />
Profit Before Tax 52 – 55<br />
Income Tax Expense 55 – 56<br />
Dividends 56<br />
Acquisition of Subsidiary 57 – 58<br />
Disposal of Subsidiary 59<br />
Purchases of Property, Plant and Equipment 59<br />
Cash and Cash Equivalents 60<br />
Commitments 60 – 61<br />
Contingent Liabilities 61 – 62<br />
Events Subsequent to the Balance Sheet Date 62<br />
Authorisation for Issue of the Financial Statements 62
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
CA Ref.<br />
REPORT OF THE DIRECTORS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
The directors hereby submit their report together with the audited <strong>financial</strong> <strong>statements</strong> of the<br />
Group and the Company for the <strong>financial</strong> year ended 31 December 2009.<br />
169(6)(b) PRINCIPAL ACTIVITIES<br />
The principal activities of the Company are that of investment holding and provision of<br />
management services to its subsidiaries. The principal activities of the subsidiaries are described<br />
in Note 9 to the Financial Statements. There have been no significant changes in the nature of the<br />
activities during the <strong>financial</strong> year.<br />
169(6)(c) RESULTS<br />
169(6)(p)<br />
THE GROUP THE COMPANY<br />
RM RM<br />
Profit for the <strong>financial</strong> year before minority interest 6,998,600 171,854<br />
Less: Minority interest (156,807) -<br />
Net Profit for the <strong>financial</strong> year<br />
6,841,793<br />
171,854<br />
In the opinion of the directors, the results of the operations of the Group and the Company during<br />
the <strong>financial</strong> year have not been substantially affected by any item, transaction or event of a<br />
material and unusual nature.<br />
169(6)(h) DIVIDENDS<br />
On 1 April 2009, the Company paid a 10% final tax exempt dividend (total dividend of<br />
RM1,105,020) in respect of the previous <strong>financial</strong> year. The net dividend per share was 10 sen.<br />
On 31 August 2009, the directors declared a 10% interim tax exempt dividend (total dividend of<br />
RM1,132,020) in respect of the current <strong>financial</strong> year. The dividend was paid to the shareholders<br />
registered on 31 October 2009. The net dividend per share was 10 sen.<br />
The directors have proposed a 10% final tax exempt dividend in respect of the current <strong>financial</strong><br />
year. The dividend is subject to approval by the shareholders at the forthcoming Annual General<br />
Meeting and has not been included as a liability in the <strong>financial</strong> <strong>statements</strong>. Total dividend<br />
payable is RM1,132,020, and the net dividend per share is 10 sen.<br />
If the Company did not declare dividends:<br />
No dividends have been paid or declared since the end of the previous <strong>financial</strong> year. The<br />
directors do not recommend that a dividend to be paid in respect of the current <strong>financial</strong> year.<br />
169(6)(d) RESERVES AND PROVISIONS<br />
There were no material transfers to or from reserves or provisions except as disclosed in the<br />
Financial Statements.<br />
1
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
REPORT OF THE DIRECTORS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
CA Ref.<br />
169(6)(e) SHARES AND DEBENTURES<br />
During the <strong>financial</strong> year, the authorised share capital of the Company has been increased to<br />
50,000,000 ordinary shares by the creation of 10,000,000 ordinary shares of RM1 each.<br />
During the <strong>financial</strong> year, the Company has issued the following shares:<br />
Date of Issue No. of Shares Issued Issue Price Purposes<br />
6 March 2009 20,000 RM2.70 Increase working capital<br />
1 June 2009 250,000 RM4.00 Part finance the acquisition of a subsidiary<br />
The new shares issued rank pari passu in respect of the distribution of dividends and repayment of<br />
capital with the existing shares.<br />
The Company did not issue any debentures during the <strong>financial</strong> year.<br />
If the Company did not issue any new shares or debentures:<br />
The Company did not issue any new shares or debentures during the <strong>financial</strong> year.<br />
169(11), (12) SHARE OPTIONS<br />
No options have been granted by the Company to any parties during the <strong>financial</strong> year to take up<br />
unissued shares of the Company.<br />
No shares have been issued during the <strong>financial</strong> year by virtue of the exercise of any option to take<br />
up unissued shares of the Company. At the end of the <strong>financial</strong> year, there were no unissued<br />
shares of the Company under options.<br />
169(6)(a) DIRECTORS<br />
The directors who held office since the date of the last report are:<br />
Ser L. T.<br />
Lian K. K.<br />
Mohd. bin R. Z.<br />
Gi J. Q.<br />
Ran H. P.<br />
Hija bin B. T.<br />
Yan D. V.<br />
Wen M. X.<br />
The L. P. (Appointed on 1 July 2009)<br />
2
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
CA Ref.<br />
169(6)(f)<br />
169(8)<br />
REPORT OF THE DIRECTORS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
DIRECTORS’ BENEFITS<br />
During and at the end of the <strong>financial</strong> year, no arrangements subsisted to which the Company or<br />
its subsidiaries is a party, with the object or objects of enabling directors of the Company to acquire<br />
benefits by means of the acquisition of shares in, or debentures of, the Company or any other body<br />
corporate.<br />
Since the end of the previous <strong>financial</strong> year, no director has received or become entitled to receive a<br />
benefit (other than a benefit included in the aggregate amount of emoluments received or due and<br />
receivable by the directors shown in the <strong>financial</strong> <strong>statements</strong> or the fixed salary of a full-time<br />
employee of the Company) by reason of a contract made by the Company or a related corporation<br />
with the director or with a firm of which the director is a member, or with a company in which the<br />
director has a substantial <strong>financial</strong> interest.<br />
169(6)(g) DIRECTORS’ INTERESTS<br />
According to the register of directors’ shareholding, the interests of directors in office at the end of<br />
the <strong>financial</strong> year in the ordinary shares of the Company and its related corporations during the<br />
<strong>financial</strong> year are as follows:<br />
No. of Ordinary Shares of RM1 each<br />
At 1.1.2009<br />
(or date of<br />
appointment)<br />
Bought<br />
Sold<br />
At<br />
31.12.2009<br />
Direct Interest in holding company –<br />
Be Competent Sdn. Bhd.<br />
Ordinary Shares<br />
Ser L. T. 1,000,000 - - 1,000,000<br />
Lian K. K. 600,000 - - 600,000<br />
Mohd. bin R. Z. 400,000 - - 400,000<br />
Gi J. Q. 200,000 - - 200,000<br />
Direct Interest in a subsidiary –<br />
<strong>AXP</strong> Property Sdn. Bhd.<br />
Ordinary Shares<br />
The L. P. 20,000 - (20,000) -<br />
Deemed Interest in the Company<br />
Ordinary Shares<br />
Ser L. T. 7,000,000 500,000 - 7,500,000<br />
Lian K. K. 7,000,000 500,000 - 7,500,000<br />
Mohd. bin R. Z. 7,000,000 500,000 - 7,500,000<br />
The L. P. - 250,000 - 250,000<br />
3
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
CA Ref.<br />
169(6)(i)<br />
169(6)(k)<br />
169(6)(j)<br />
169(6)(l)(i)<br />
169(6)(l)(ii)<br />
169(6)(o)<br />
REPORT OF THE DIRECTORS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
No. of Ordinary Shares of RM1 each<br />
At 1.1.2009<br />
(or date of<br />
appointment)<br />
Bought<br />
Sold<br />
At<br />
31.12.2009<br />
Direct Interest in the Company<br />
Ordinary Shares<br />
Ser L. T. 4,145 359 - 4,504<br />
Lian K. K. 3,273 458 - 3,731<br />
Mohd. bin R. Z. 40,000 4,000 (2,000) 42,000<br />
Ran H. P. 2,041 1,076 (246) 2,871<br />
Hija bin B. T. 50,010 6,781 - 56,791<br />
The L. P. 216,000 100,000 - 316,000<br />
None of the other directors in office at the end of the <strong>financial</strong> year held any shares in the<br />
Company or in any related corporations during the <strong>financial</strong> year ended 31 December 2009.<br />
OTHER STATUTORY INFORMATION<br />
Before the income <strong>statements</strong> and the balance sheets of the Group and the Company were made<br />
out, the directors took reasonable steps:<br />
(a) to ascertain that proper action had been taken in relation to the writing-off of bad debts and<br />
the making of allowance for doubtful debts, and have satisfied themselves that all known<br />
bad debts had been written-off and that adequate allowance had been made for doubtful<br />
debts; and<br />
(b) to ensure that any current assets which were unlikely to be realised at their book values in<br />
the ordinary course of business have been written down to their estimated realisable values.<br />
As of the date of this report, the directors are not aware of any circumstances:<br />
(a) which would render the amount written off for bad debts or the amount of the allowance for<br />
doubtful debts inadequate to any substantial extent in the <strong>financial</strong> <strong>statements</strong> of the Group<br />
and the Company; or<br />
(b) which would render the values attributed to current assets in the <strong>financial</strong> <strong>statements</strong> of the<br />
Group and the Company misleading; or<br />
(c) which have arisen which render adherence to the existing method of valuation of assets or<br />
liabilities of the Group and the Company misleading or inappropriate; or<br />
(d) not otherwise dealt with in this report or <strong>financial</strong> <strong>statements</strong> which would render any<br />
amount stated in the <strong>financial</strong> <strong>statements</strong> of the Group and the Company misleading.<br />
4
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
CA Ref.<br />
169(6)(m)<br />
169(6)(n)<br />
169(6)(q)<br />
REPORT OF THE DIRECTORS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
As of the date of this report, there does not exist:<br />
(a) any charge on the assets of the Group and the Company which has arisen since the end of<br />
the <strong>financial</strong> year and secures the liability of any other person; or<br />
(b) any contingent liability of the Group and the Company which has arisen since the end of the<br />
<strong>financial</strong> year.<br />
No contingent or other liability has become enforceable, or is likely to become enforceable within<br />
the period of twelve months after the end of the <strong>financial</strong> year which, in the opinion of the<br />
directors, will or may substantially affect the ability of the Group and the Company to meet its<br />
obligations as and when they fall due.<br />
In the opinion of the directors, no item, transaction or event of a material and unusual nature has<br />
arisen in the interval between the end of the <strong>financial</strong> year and the date of this report which is<br />
likely to affect substantially the results of operations of the Group and the Company for the<br />
succeeding <strong>financial</strong> year.<br />
169(10) HOLDING COMPANY<br />
The Company is a subsidiary of Be Competent Sdn. Bhd., a company incorporated in Malaysia,<br />
which is also regarded by the directors as the ultimate holding company.<br />
AUDITORS<br />
The retiring auditors, Messrs. Auditors & Co., have indicated their willingness to be re-appointed<br />
in accordance with Section 172(2) of the Companies Act, 1965.<br />
Signed on behalf of the Board<br />
in accordance with a resolution of the directors,<br />
Ser L T<br />
Ser L. T.<br />
Lian K K<br />
Lian K. K.<br />
Kuala Lumpur<br />
31 January 2010<br />
5
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
CA169(15) STATEMENT BY THE DIRECTORS<br />
Pursuant to Section 169 (15) of the Companies Act, 1965<br />
The directors of <strong>Model</strong> Group Sdn. Bhd. state that, in their opinion, the <strong>financial</strong> <strong>statements</strong> set<br />
out on page 9 to 62 are drawn up in accordance with the provisions of the Companies Act, 1965<br />
and the MASB Applicable Approved Accounting Standards for Private Entities in Malaysia so as to<br />
give a true and fair view of the state of affairs of the Group and the Company as at 31 December<br />
2009 and of the results of their businesses and the cash flows of the Group and the Company for<br />
the <strong>financial</strong> year ended on that date.<br />
Signed on behalf of the Board<br />
in accordance with a resolution of the directors,<br />
Ser L T<br />
Ser L. T.<br />
Lian K K<br />
Lian K. K.<br />
Kuala Lumpur<br />
31 January 2010<br />
CA169(16) STATUTORY DECLARATION<br />
Pursuant to Section 169 (16) of the Companies Act, 1965<br />
I, Gi J. Q., the director primarily responsible for the <strong>financial</strong> management of <strong>Model</strong> Group Sdn.<br />
Bhd., do solemnly and sincerely declare that the <strong>financial</strong> <strong>statements</strong> set out on page 9 to 62 are, in<br />
my opinion, correct and I make this solemn declaration conscientiously believing the same to be<br />
true, and by virtue of the provisions of the Statutory Declarations Act, 1960.<br />
Subscribed and solemnly declared by )<br />
the above named Gi J. Q. at ) Gi J Q<br />
KUALA LUMPUR on 31 January 2010 )<br />
Before me,<br />
Commissioner for Oaths<br />
__________________________________<br />
COMMISSIONER FOR OATHS<br />
6
RPG 4 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF<br />
MODEL GROUP SDN. BHD. (Company No.: 12345678-A)<br />
(Incorporated in Malaysia)<br />
CA Ref.<br />
174(2)(a)<br />
Report on the Financial Statements<br />
We have audited the <strong>financial</strong> <strong>statements</strong> of <strong>Model</strong> Group Sdn. Bhd., which comprise the balance<br />
sheets as at 31 December 2009 of the Group and the Company, and the income <strong>statements</strong>,<br />
<strong>statements</strong> of changes in equity and cash flow <strong>statements</strong> of the Group and the Company for the<br />
<strong>financial</strong> year then ended, and a summary of significant accounting policies and other explanatory<br />
notes, as set out on pages 9 to 62.<br />
Directors’ Responsibility for the Financial Statements<br />
The directors of the Company are responsible for the preparation and fair presentation of these<br />
<strong>financial</strong> <strong>statements</strong> in accordance with Private Entity Reporting Standards and the Companies<br />
Act, 1965 in Malaysia. This responsibility includes: designing, implementing and maintaining<br />
internal control relevant to the preparation and fair presentation of <strong>financial</strong> <strong>statements</strong> that are<br />
free from material misstatement, whether due to fraud or error; selecting and applying appropriate<br />
accounting policies; and making accounting estimates that are reasonable in the circumstances.<br />
Auditors’ Responsibility<br />
Our responsibility is to express an opinion on these <strong>financial</strong> <strong>statements</strong> based on our audit. We<br />
conducted our audit in accordance with approved standards on auditing in Malaysia. Those<br />
standards require that we comply with ethical requirements and plan and perform the audit to<br />
obtain reasonable assurance whether the <strong>financial</strong> <strong>statements</strong> are free from material misstatement.<br />
An audit involves performing procedures to obtain audit evidence about the amounts and<br />
disclosures in the <strong>financial</strong> <strong>statements</strong>. The procedures selected depend on our judgment,<br />
including the assessment of risks of material misstatement of the <strong>financial</strong> <strong>statements</strong>, whether due<br />
to fraud or error. In making those risk assessments, we consider internal control relevant to the<br />
Company’s preparation and fair presentation of the <strong>financial</strong> <strong>statements</strong> in order to design audit<br />
procedures that are appropriate in the circumstances, but not for the purpose of expressing an<br />
opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating<br />
the appropriateness of accounting policies used and the reasonableness of accounting estimates<br />
made by the directors, as well as evaluating the overall presentation of the <strong>financial</strong> <strong>statements</strong>.<br />
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a<br />
basis for our audit opinion.<br />
Opinion<br />
In our opinion, the <strong>financial</strong> <strong>statements</strong> have been properly drawn up in accordance with Private<br />
Entity Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair<br />
view of the <strong>financial</strong> position of the Group and the Company as at 31 December 2009 and of their<br />
<strong>financial</strong> performance and cash flows for the <strong>financial</strong> year then ended.<br />
7
CA Ref.<br />
174(2)(b)<br />
174(2)(c)(ii)<br />
174(2)(c)(iii)<br />
174(2)(c)(iv)<br />
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF<br />
MODEL GROUP SDN. BHD. (Company No.: 12345678-A) – Cont’d<br />
(Incorporated in Malaysia)<br />
Report on Other Legal and Regulatory Requirements<br />
In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the<br />
following:<br />
(a) In our opinion, the accounting and other records and the registers required by the Act to<br />
be kept by the Company and its subsidiaries have been properly kept in accordance with<br />
the provisions of the Act.<br />
(b) We have considered the <strong>financial</strong> <strong>statements</strong> and the auditors’ reports of all the<br />
subsidiaries of which we have not acted as auditors, which are indicated in Note 9 to the<br />
Financial Statements.<br />
(c) We are satisfied that the <strong>financial</strong> <strong>statements</strong> of the subsidiaries that have been<br />
consolidated with the Company’s <strong>financial</strong> <strong>statements</strong> are in form and content appropriate<br />
and proper for the purposes of the preparation of the <strong>financial</strong> <strong>statements</strong> of the Group<br />
and we have received satisfactory information and explanations required by us for those<br />
purposes.<br />
(d) The audit reports on the <strong>financial</strong> <strong>statements</strong> of the subsidiaries did not contain any<br />
qualification or any adverse comment made under Section 174(3) of the Act.<br />
Other Matters<br />
This report is made solely to the members of the Company, as a body, in accordance with Section<br />
174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume<br />
responsibility to any other person for the content of this report.<br />
Auditors & Co. Hu G E<br />
Auditors & Co.<br />
(AF – 99999)<br />
Chartered Accountants<br />
Kuala Lumpur<br />
31 January 2010<br />
Hu G. E.<br />
No. 9999/88/10 (J)<br />
Partner of the Firm<br />
8
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(a)<br />
1.46(b),(c)<br />
2009 2008 2009 2008<br />
1.46(d),(e) Note RM RM RM RM<br />
1.53 NON CURRENT ASSETS<br />
1.66(a) Property, plant and equipment 4 9,716,982<br />
1.67 Investment property 5 6,305,303<br />
32.51 Land held for development 6 965,719<br />
1.66(b) Goodwill 7 4,790,350<br />
1.66(b) Other intangible assets 8 4,163,426<br />
1.66(d) Subsidiaries 9 -<br />
1.66(d),12.38 Investment in associates 10 1,484,315<br />
1.66(d)<br />
Investment in jointly-controlled<br />
entities 11 1,205,535<br />
1.66(d) Other investments 12 437,765<br />
1.66(i) Deferred tax assets 13 10,985<br />
1.53 CURRENT ASSETS<br />
29,080,380<br />
32.51(c) Property development costs 14 1,191,144<br />
1.66(e) Inventories 15 393,798<br />
1.66(f) Trade and other receivables 16 1,036,917<br />
7.43(a) Gross amount due from customers 17 101,398<br />
32.50(d)(i) Accrued billings 31,008<br />
1.66(d) Other investments 12 96,802<br />
1.66(g) Fixed deposits with licensed banks 18 206,625<br />
1.66(g) Cash and bank balances 19 97,305<br />
1.53 CURRENT LIABILITIES<br />
3,154,997<br />
1.66(h) Trade and other payables 20 1,880,738<br />
7.43(b) Gross amount due to customers 21 3,211<br />
32.50(d)(ii) Progress billings 228,605<br />
1.66(i) Current tax liabilities 34,598<br />
1.66(k)<br />
BALANCE SHEETS<br />
AS AT 31 DECEMBER 2009<br />
Hire purchase and finance lease<br />
payables 22 56,966<br />
1.66(g) Bank overdrafts 23 280,316<br />
1.66(k) Other bank borrowings 23 2,397,013<br />
1.66(j) Provisions 24 163,358<br />
5,044,805<br />
NET CURRENT ASSETS / (LIABILITIES) (1,889,808)<br />
27,190,572<br />
THE GROUP THE COMPANY<br />
6,538,764<br />
4,506,445<br />
102,622<br />
3,828,841<br />
4,222,640<br />
-<br />
1,240,119<br />
650,153<br />
610,291<br />
31,164<br />
21,731,039<br />
137,830<br />
770,136<br />
1,271,984<br />
108,183<br />
65,374<br />
155,781<br />
271,791<br />
215,132<br />
2,996,211<br />
1,113,302<br />
1,453<br />
74,075<br />
68,272<br />
53,476<br />
324,225<br />
2,095,412<br />
165,268<br />
3,895,483<br />
(899,272)<br />
20,831,767<br />
3,267<br />
-<br />
-<br />
-<br />
-<br />
12,319,649<br />
23,093<br />
-<br />
19,370<br />
-<br />
12,365,379<br />
-<br />
-<br />
3,471,675<br />
-<br />
-<br />
5,068<br />
-<br />
128<br />
3,476,871<br />
340,478<br />
-<br />
-<br />
-<br />
-<br />
36,068<br />
195,501<br />
-<br />
572,047<br />
2,904,824<br />
15,270,203<br />
4,070<br />
-<br />
-<br />
-<br />
-<br />
11,335,974<br />
23,093<br />
-<br />
17,952<br />
-<br />
11,381,089<br />
-<br />
-<br />
5,415,978<br />
-<br />
-<br />
52,090<br />
-<br />
214<br />
5,468,282<br />
329,113<br />
-<br />
-<br />
-<br />
-<br />
44,396<br />
152,939<br />
-<br />
526,448<br />
4,941,834<br />
16,322,923<br />
9
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(a)<br />
1.46(b),(c)<br />
2009 2008 2009 2008<br />
1.46(d),(e) Note RM RM RM RM<br />
FINANCED BY:<br />
1.66(m) CAPITAL AND RESERVES<br />
1.66(m) Share capital 25 11,320,200<br />
1.66(m) Share premium 26 1,242,500<br />
1.66(m) Revaluation reserves 27 642,254<br />
1.66(m) Translation reserves 28 943,706<br />
1.66(m) Retained profits 29 8,969,699<br />
Shareholders' Equity 23,118,359<br />
1.66(l) Minority interest 2,461,253<br />
1.53 NON CURRENT LIABILITIES<br />
1.66(i) Deferred tax liabilities 13 1,174,856<br />
1.66(k)<br />
BALANCE SHEETS - Cont'd<br />
AS AT 31 DECEMBER 2009<br />
Hire purchase and finance lease<br />
payables 22 91,622<br />
1.66(k) Other bank borrowings 23 247,290<br />
1.66(j) Provisions 24 30,449<br />
1.67 Retirement benefit obligation 30 66,743<br />
1,610,960<br />
27,190,572<br />
THE GROUP THE COMPANY<br />
11,050,200<br />
458,500<br />
557,002<br />
685,440<br />
4,357,983<br />
17,109,125<br />
2,304,446<br />
929,279<br />
105,812<br />
265,977<br />
44,888<br />
72,240<br />
1,418,196<br />
20,831,767<br />
11,320,200<br />
1,242,500<br />
-<br />
-<br />
2,707,503<br />
15,270,203<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
15,270,203<br />
11,050,200<br />
458,500<br />
-<br />
-<br />
4,772,689<br />
16,281,389<br />
-<br />
-<br />
-<br />
41,534<br />
-<br />
-<br />
41,534<br />
16,322,923<br />
10
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(b)<br />
1.46(b),(c)<br />
INCOME STATEMENTS - Expenses Classified by Function<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
2009 2008 2009 2008<br />
1.46(d),(e) Note RM RM RM RM<br />
1.75(a) Revenue 31 23,743,683<br />
1.82 Cost of sales (12,966,796)<br />
1.75 Gross profit 10,776,887<br />
1.82 Other income 352,383<br />
1.82 Distribution costs (618,208)<br />
1.82 Administrative expenses (2,140,037)<br />
1.82 Other expenses (764,448)<br />
1.75(b) Profit from operations 7,606,577<br />
1.75(c) Finance costs (234,750)<br />
1.75(d),12.39 Share of profit of associates 275,354<br />
Share of profit of jointly-controlled<br />
entities 631,116<br />
1.75 Profit before tax 32 8,278,297<br />
1.75(e) Income tax expense 33<br />
- Company and subsidiaries (1,154,309)<br />
- share of tax expense in associates (49,654)<br />
- share of tax expense in jointlycontrolled<br />
entities (75,734)<br />
Profit after tax<br />
(1,279,697)<br />
6,998,600<br />
Minority interest (156,807)<br />
1.75(i) Profit For The Financial Year 6,841,793<br />
THE GROUP THE COMPANY<br />
19,326,112<br />
(11,656,606)<br />
7,669,506<br />
345,597<br />
(663,922)<br />
(1,014,755)<br />
(625,671)<br />
5,710,755<br />
(256,549)<br />
89,460<br />
499,541<br />
6,043,207<br />
(1,149,001)<br />
(19,681)<br />
(74,931)<br />
(1,243,613)<br />
4,799,594<br />
(129,530)<br />
4,670,064<br />
381,809<br />
-<br />
381,809<br />
107,585<br />
-<br />
(265,406)<br />
(13,761)<br />
210,227<br />
(30,504)<br />
-<br />
-<br />
179,723<br />
(7,869)<br />
-<br />
-<br />
(7,869)<br />
171,854<br />
-<br />
171,854<br />
291,722<br />
-<br />
291,722<br />
117,737<br />
-<br />
(251,828)<br />
(2,060)<br />
155,571<br />
(24,262)<br />
-<br />
-<br />
131,309<br />
-<br />
-<br />
-<br />
-<br />
131,309<br />
-<br />
131,309<br />
11
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(b)<br />
1.46(b),(c)<br />
2009 2008 2009 2008<br />
1.46(d),(e) Note RM RM RM RM<br />
1.75(a) Revenue 31 23,743,683<br />
1.80 Other income 336,627<br />
1.80<br />
INCOME STATEMENTS - Expenses Classified by Nature<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
19,326,112<br />
345,597<br />
381,809<br />
107,585<br />
Changes in inventories of finished<br />
goods and work in progress 268,393 (493,001) -<br />
1.80 Raw materials and consumable used (46,289)<br />
7.40(b) Contract costs recognised (1,352,588)<br />
32.50(b) Property development costs recognised (8,010,989)<br />
1.80 Staff costs (490,010)<br />
1.80,14.15(c) Depreciation expense (1,228,514)<br />
1.80 Amortisation charges (1,832,375)<br />
Impairment losses recognised (40,007)<br />
Impairment losses reversed 15,756<br />
1.80 Other expenses (3,757,110)<br />
1.75(b) Profit from operations 7,606,577<br />
1.75(c) Finance costs (234,750)<br />
1.75(d),12.39 Share of profit of associates 275,354<br />
Share of profit of jointly-controlled<br />
entities 631,116<br />
1.75 Profit before tax 32 8,278,297<br />
1.75(e) Income tax expense 33<br />
- Company and subsidiaries (1,154,309)<br />
- share of tax expense in associates (49,654)<br />
- share of tax expense in jointlycontrolled<br />
entities (75,734)<br />
Profit after tax<br />
(1,279,697)<br />
6,998,600<br />
Minority interest (156,807)<br />
1.75(i) Profit For The Financial Year 6,841,793<br />
THE GROUP THE COMPANY<br />
(68,739)<br />
(1,166,701)<br />
(5,145,983)<br />
(342,001)<br />
(876,403)<br />
(1,503,955)<br />
(16,187)<br />
-<br />
(4,347,984)<br />
5,710,755<br />
(256,549)<br />
89,460<br />
499,541<br />
6,043,207<br />
(1,149,001)<br />
(19,681)<br />
(74,931)<br />
(1,243,613)<br />
4,799,594<br />
(129,530)<br />
4,670,064<br />
-<br />
-<br />
-<br />
(58,975)<br />
(469)<br />
-<br />
-<br />
-<br />
(219,723)<br />
210,227<br />
(30,504)<br />
-<br />
-<br />
179,723<br />
(7,869)<br />
-<br />
-<br />
(7,869)<br />
171,854<br />
-<br />
171,854<br />
291,722<br />
117,737<br />
-<br />
-<br />
-<br />
-<br />
(38,305)<br />
(492)<br />
-<br />
-<br />
-<br />
(215,091)<br />
155,571<br />
(24,262)<br />
-<br />
-<br />
131,309<br />
-<br />
-<br />
-<br />
-<br />
131,309<br />
-<br />
131,309<br />
12
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(c)<br />
1.46(b),(c)<br />
1.86(e),(f)<br />
STATEMENTS OF CHANGES IN EQUITY<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
Share<br />
Capital<br />
Share<br />
Premium<br />
Revaluation<br />
Reserves<br />
Translation<br />
Reserves<br />
Retained<br />
Profits Total<br />
1.46(d),(e) THE GROUP Note RM RM RM RM RM RM<br />
Balance at 1 January 2008 11,045,200<br />
1.86(b) Revaluation of landed property -<br />
1.86(b) Exchange differences on translation of foreign entities -<br />
1.86(a) Profit for the <strong>financial</strong> year -<br />
1.86(d) Dividends 34 -<br />
1.86(d) Issue of shares 25 & 26 5,000<br />
Balance at 31 December 2008 11,050,200<br />
1.86(b) Revaluation of landed property -<br />
1.86(b) Exchange differences on translation of foreign entities -<br />
1.86(a) Profit for the <strong>financial</strong> year -<br />
1.86(d) Dividends 34 -<br />
1.86(d) Issue of shares 25 & 26 270,000<br />
Transfer to retained profits on disposal -<br />
Balance at 31 December 2009 11,320,200<br />
450,000<br />
-<br />
-<br />
-<br />
-<br />
8,500<br />
458,500<br />
-<br />
-<br />
-<br />
-<br />
784,000<br />
-<br />
1,242,500<br />
553,718<br />
3,284<br />
-<br />
-<br />
-<br />
-<br />
557,002<br />
92,215<br />
-<br />
-<br />
-<br />
-<br />
(6,963)<br />
642,254<br />
454,049<br />
-<br />
231,391<br />
-<br />
-<br />
-<br />
685,440<br />
-<br />
258,266<br />
-<br />
-<br />
-<br />
-<br />
943,706<br />
1,896,959<br />
-<br />
-<br />
4,670,064<br />
(2,209,040)<br />
-<br />
4,357,983<br />
-<br />
-<br />
6,841,793<br />
(2,237,040)<br />
-<br />
6,963<br />
8,969,699<br />
14,399,926<br />
3,284<br />
231,391<br />
4,670,064<br />
(2,209,040)<br />
13,500<br />
17,109,125<br />
92,215<br />
258,266<br />
6,841,793<br />
(2,237,040)<br />
1,054,000<br />
13<br />
-<br />
23,118,359
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(c)<br />
1.46(b),(c)<br />
1.86(e),(f)<br />
STATEMENTS OF CHANGES IN EQUITY - Cont'd<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
Share<br />
Capital<br />
Share<br />
Premium<br />
Retained<br />
Profits Total<br />
1.46(d),(e) THE COMPANY Note RM RM RM RM<br />
Balance at 1 January 2008 11,045,200<br />
1.86(a) Profit for the <strong>financial</strong> year -<br />
1.86(d) Dividends 34 -<br />
1.86(d) Issue of shares 25 & 26 5,000<br />
Balance at 31 December 2008 11,050,200<br />
1.86(a) Profit for the <strong>financial</strong> year -<br />
1.86(d) Dividends 34 -<br />
1.86(d) Issue of shares 25 & 26 270,000<br />
Balance at 31 December 2009 11,320,200<br />
450,000<br />
-<br />
-<br />
8,500<br />
458,500<br />
-<br />
-<br />
784,000<br />
1,242,500<br />
6,850,420<br />
131,309<br />
(2,209,040)<br />
-<br />
4,772,689<br />
171,854<br />
(2,237,040)<br />
-<br />
2,707,503<br />
18,345,620<br />
131,309<br />
(2,209,040)<br />
13,500<br />
16,281,389<br />
171,854<br />
(2,237,040)<br />
1,054,000<br />
15,270,203<br />
14
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(d)<br />
1.46(b),(c)<br />
CASH FLOW STATEMENTS<br />
2009 2008 2009 2008<br />
1.46(d),(e) Note RM RM RM RM<br />
5.10, 5.18(b) CASH FLOWS FROM OPERATING ACTIVITIES<br />
5.18(b) Profit before tax 8,278,297<br />
5.20(b),(c) Adjustments for:<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
Allowance for doubtful debts 9,438<br />
Amortisation charges 1,832,375<br />
Bad debts written off 2,512<br />
Defined benefits plan expense 37,693<br />
Depreciation of property, plant and equipment 1,228,514<br />
Dividend income (1,718)<br />
Gain on disposal of investment property (2,659)<br />
Gain on disposal of land held for development (14)<br />
Gain on disposal of other investments (64,242)<br />
(Gain)/Loss on disposal of subsidiary (1,459)<br />
(Gain)/Loss on disposal of property, plant and equipment (760)<br />
Impairment losses 40,007<br />
Interest expense 234,750<br />
Interest income (657)<br />
Inventories written down to net realisable value 31,250<br />
Provision for legal costs 347<br />
Provision for warranties 113,718<br />
Reversal of allowance for doubtful debts (348)<br />
Reversal of impairment losses (15,756)<br />
Reversal of inventories written down (14,694)<br />
Reversal of provision for warranties (72,911)<br />
Share of profit of associates (275,354)<br />
Share of profit of jointly-controlled entities (631,116)<br />
Unrealised loss on foreign exchange 90,459<br />
Operating profit before changes in working capital 10,817,672<br />
5.20(a) Decrease/(increase) in property development costs 347,396<br />
5.20(a) Decrease in bank balances held under H.D.A. 119,905<br />
Decrease/(increase) in inventories 811,629<br />
5.20(a) Decrease in trade and other receivables 83,436<br />
Increase/(decrease) in trade and other payables 746,796<br />
Cash generated from operations 12,926,834<br />
Contributions to defined benefits plan (43,190)<br />
5.35 Income taxes paid (969,178)<br />
5.31 Interest paid (235,464)<br />
Interest received 657<br />
Utilisation of provisions (57,503)<br />
Net cash from operating activities 11,622,156<br />
THE GROUP THE COMPANY<br />
6,043,207<br />
13,578<br />
1,503,955<br />
1,081<br />
31,270<br />
876,403<br />
(2,105)<br />
(173)<br />
-<br />
(15,914)<br />
-<br />
(1,088)<br />
16,187<br />
256,549<br />
(718)<br />
45,303<br />
-<br />
91,634<br />
(732)<br />
-<br />
(21,600)<br />
(31,695)<br />
(89,460)<br />
(499,541)<br />
79,948<br />
8,296,089<br />
(302,533)<br />
23,019<br />
(130,215)<br />
179,842<br />
(504,553)<br />
7,561,649<br />
(41,540)<br />
(765,940)<br />
(256,917)<br />
718<br />
(60,078)<br />
6,437,892<br />
179,723<br />
-<br />
-<br />
-<br />
-<br />
469<br />
-<br />
-<br />
-<br />
(24,474)<br />
293,051<br />
(152)<br />
-<br />
30,504<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
479,121<br />
-<br />
-<br />
-<br />
1,944,303<br />
11,365<br />
2,434,789<br />
-<br />
(7,869)<br />
(30,504)<br />
-<br />
-<br />
2,396,416<br />
131,309<br />
15<br />
-<br />
-<br />
-<br />
-<br />
492<br />
-<br />
-<br />
-<br />
5,011<br />
-<br />
-<br />
28<br />
24,262<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
161,102<br />
-<br />
-<br />
-<br />
2,056,317<br />
(69,504)<br />
2,147,915<br />
-<br />
-<br />
(24,262)<br />
-<br />
-<br />
2,123,653
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(d)<br />
1.46(b),(c)<br />
CASH FLOW STATEMENTS - Cont'd<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
2009 2008 2009 2008<br />
1.46(d),(e) Note RM RM RM RM<br />
5.10, 5.16 CASH FLOWS FROM INVESTING ACTIVITIES<br />
Acquisition of land held for development (215,536)<br />
5.39 Acquisition of subsidiary, net of cash acquired 35 (1,299,748)<br />
Advance to associates (18,496)<br />
5.39 Disposal of subsidiary, net of cash disposed off 36 423,004<br />
5.31 Dividend income 1,718<br />
Interest paid (325)<br />
Proceeds from disposal of investment property 48,325<br />
Proceeds from disposal of land held for development 405<br />
Proceeds from disposal of other investments 633,737<br />
Proceeds from disposal of property, plant and equipment 18,739<br />
Purchases of investment property (1,000,000)<br />
Purchases of other intangible assets, net of grant (1,380,954)<br />
Purchases of other investments (337,990)<br />
5.43 Purchases of property, plant and equipment 37 (3,708,324)<br />
Net cash used in investing activities (6,835,445)<br />
5.10, 5.17 CASH FLOWS FROM FINANCING ACTIVITIES<br />
5.31 Dividends paid (2,237,040)<br />
Issuance of shares 54,000<br />
5.23 Proceeds from other short term borrowings 10,921,954<br />
Proceeds from term loans 495,043<br />
Repayments of hire purchase and finance lease (409,908)<br />
5.23 Repayments of other short term borrowings (11,418,268)<br />
Repayments of term loans (2,211,628)<br />
Net cash used in financing activities (4,805,847)<br />
Net (decrease)/increase in cash and cash equivalents (19,136)<br />
Cash and cash equivalents at beginning of <strong>financial</strong> year (17,323)<br />
Cash and cash equivalents at end of <strong>financial</strong> year 38 (36,459)<br />
THE GROUP THE COMPANY<br />
(115,822)<br />
-<br />
(50,782)<br />
-<br />
2,105<br />
(642)<br />
4,000<br />
-<br />
473,561<br />
31,450<br />
(45,089)<br />
(1,501,746)<br />
(632,780)<br />
(594,536)<br />
(2,430,281)<br />
(2,209,040)<br />
13,500<br />
9,950,329<br />
594,032<br />
(506,969)<br />
(10,469,787)<br />
(1,329,049)<br />
(3,956,984)<br />
50,627<br />
(67,950)<br />
(17,323)<br />
-<br />
(500,000)<br />
-<br />
223,274<br />
-<br />
-<br />
-<br />
-<br />
180,078<br />
1,329<br />
-<br />
-<br />
(110,000)<br />
(677)<br />
(205,996)<br />
(2,237,040)<br />
54,000<br />
4,950,965<br />
45,909<br />
-<br />
(4,879,198)<br />
(116,814)<br />
(2,182,178)<br />
8,242<br />
(44,182)<br />
(35,940)<br />
16<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
37,842<br />
586<br />
(513)<br />
-<br />
(135,712)<br />
(1,088)<br />
(98,885)<br />
(2,209,040)<br />
13,500<br />
3,950,491<br />
32,012<br />
-<br />
(3,753,950)<br />
(45,059)<br />
(2,012,046)<br />
12,722<br />
(56,904)<br />
(44,182)
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
1.102(a)<br />
1.102(b)<br />
1.102(c)<br />
1.102(d)<br />
1.46(d)<br />
1.91(a)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
1. GENERAL INFORMATION<br />
The Company is a private limited company incorporated and domiciled in Malaysia. The<br />
registered office and principal place of business is located at 83A, Jalan Emas 1, Taman Sri Skudai,<br />
81300 Johor Bahru, Johor.<br />
The principal activities of the Company are that of investment holding and provision of<br />
management services to its subsidiaries. The principal activities of the subsidiaries are described in<br />
Note 9. There have been no significant changes in the nature of the activities during the <strong>financial</strong><br />
year.<br />
The Company is a subsidiary of Be Competent Sdn. Bhd., a company incorporated in Malaysia,<br />
which is also regarded by the directors as the ultimate holding company of the Company.<br />
The number of employees of the Group and the Company as at 31 December 2009 are 35 and 3<br />
(2008: 30 and 2) respectively.<br />
The <strong>financial</strong> <strong>statements</strong> of the Group and the Company are reported in Ringgit Malaysia (RM).<br />
2. BASIS OF PREPARATION<br />
The <strong>financial</strong> <strong>statements</strong> have been prepared in accordance with the MASB Applicable Approved<br />
Accounting Standards for Private Entities in Malaysia and the provisions of the Companies Act,<br />
1965.<br />
3. SIGNIFICANT ACCOUNTING POLICIES<br />
1.97(a) The <strong>financial</strong> <strong>statements</strong> have been prepared on the historical cost basis, except for the revaluation<br />
of certain assets. The principal accounting policies adopted are set out below:<br />
11.11<br />
11.6<br />
11.44,<br />
11.47(c)<br />
11.26<br />
11.21<br />
15.78(a)<br />
Consolidation<br />
The consolidated <strong>financial</strong> <strong>statements</strong> incorporate the <strong>financial</strong> <strong>statements</strong> of the Company and its<br />
subsidiaries. Subsidiaries are entities controlled by the Company. Control exists when the<br />
Company has the power to govern the <strong>financial</strong> and operating policies of an entity so as to obtain<br />
benefits from its activities.<br />
Investments in subsidiaries are stated in the Company’s <strong>financial</strong> <strong>statements</strong> at cost, less<br />
impairment losses, if any.<br />
The results of subsidiaries acquired or disposed of during the <strong>financial</strong> year are included in the<br />
consolidated <strong>financial</strong> <strong>statements</strong> from the acquisition date or up to the effective date of disposal,<br />
where appropriate. Consolidated <strong>financial</strong> <strong>statements</strong> are prepared using uniform accounting<br />
policies for like transactions and other events in similar circumstances.<br />
All intragroup balances, transactions, income and expenses are eliminated in full on consolidation.<br />
Property, Plant and Equipment<br />
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated<br />
impairment losses, if any, except for freehold land and buildings.<br />
17
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
15.78(a)<br />
15.34<br />
15.43<br />
15.44<br />
15.45<br />
14.15(a),(b)<br />
15.78(b),(c)<br />
15.59<br />
15.74<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
Assets stated at valuation<br />
Freehold land and buildings are stated at their revalued amount, being its fair value at the date of<br />
revaluation, less subsequent accumulated depreciation and subsequent impairment losses, if any.<br />
Revaluations are made with sufficient regularity to ensure that the carrying amount does not<br />
differ materially from that which would be determined using fair value at the balance sheet date.<br />
Any revaluation increase arising from the revaluation is credited to revaluation reserves account,<br />
except when the increase is recognised in the income <strong>statements</strong> to the extent that it reverses a<br />
revaluation decrease of the same asset previously recognised in income <strong>statements</strong>. Any<br />
revaluation decrease arising from the revaluation is recognised in income <strong>statements</strong>, except when<br />
the decrease is debited to the revaluation reserves account to the extent of any credit balance<br />
existing in the revaluation reserves account in respect of that asset. Revaluation surplus is<br />
transferred directly to retained profits when the asset is retired or disposed of.<br />
Except for freehold land and assets under construction, depreciation is provided on a straight-line<br />
method so as to write off the cost or valuation of the assets over their estimated useful lives, as<br />
follows:<br />
Buildings 50 years<br />
Plant and machinery 10 years<br />
Motor vehicles 5 years<br />
Equipment, furniture and fittings 3 ~ 5 years<br />
The residual values and the useful lives of assets, if significant, are reviewed at each balance sheet.<br />
The gain or loss arising from the disposal or retirement of an asset, determined as the difference<br />
between the net disposal proceeds, if any, and the carrying amount of the item, are recognised in<br />
income <strong>statements</strong>.<br />
Depreciation of an asset begins when it is ready for its intended use.<br />
IAS25 Investment Property<br />
Investment property, principally comprising of property held to earn rentals or for capital<br />
appreciation or both, are held for long term rental yields and are not occupied by the Group.<br />
Investment property is carried at market value determined annually by external independent<br />
valuers.<br />
Any revaluation increase arising from the revaluation is credited to revaluation reserves account,<br />
except when the increase is recognised in the income <strong>statements</strong> to the extent that it reverses a<br />
revaluation decrease of the same asset previously recognised in income <strong>statements</strong>. Any<br />
revaluation decrease arising from the revaluation is recognised in income <strong>statements</strong>, except when<br />
the decrease is debited to the revaluation reserves account to the extent of any credit balance<br />
existing in the revaluation reserves account in respect of that asset. Revaluation surplus is<br />
transferred directly to retained profits when the asset is retired or disposed of.<br />
18
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
32.50(a)<br />
4.30(a)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
Property Development Activities<br />
Land held for property development is carried at cost less any accumulated impairment losses<br />
and is classified as non-current asset where no development activities are carried out or where<br />
development activities are not expected to be completed within the normal operating cycle.<br />
Property development costs comprise all costs that are directly attributable to development<br />
activities including costs associated with the acquisition of land, costs related directly to a specific<br />
property development activity and costs attributable to the development activities in general and<br />
can be allocated to the project.<br />
When the development and construction activities have commenced and the <strong>financial</strong> outcome of<br />
the development activities can be reliably estimated, property development revenue will be<br />
recognised for the development unit sold and determined by reference to the stage of completion<br />
of the development activity at the balance sheet date. Stage of completion is determined based on<br />
the proportion that property development costs incurred for work performed to date bear to the<br />
estimated total property development costs.<br />
When the outcome of a property development activity cannot be estimated reliably, property<br />
development revenue is recognised only to the extent of property development costs incurred that<br />
it is probable will be recoverable and property development costs are recognised as an expense in<br />
the <strong>financial</strong> year in which they are incurred.<br />
An expected loss on the property development activity is recognised as an expense immediately<br />
(including costs to be incurred over the defects liability period).<br />
Inventories of unsold completed development units are stated at the lower of cost and net<br />
realisable value. Net realisable value represents the estimated selling price less all estimated costs<br />
of completion and costs to be incurred in marketing, selling and distribution.<br />
Goodwill<br />
Goodwill arising on the acquisition of a subsidiary, being the excess of the cost of the business<br />
combination over the Group’s interest in the net fair value of the identifiable assets and liabilities,<br />
is initially measured at cost and recognised as an asset. Goodwill is subsequently measured at<br />
cost less accumulated amortisation and accumulated impairment losses, if any.<br />
Goodwill is amortised using the straight line method over its estimated useful life of 15 years.<br />
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination<br />
of the income <strong>statements</strong> on disposal.<br />
Goodwill arising on the acquisition of an associate or an equity-accounted jointly controlled entity<br />
is included within the carrying amount of the investment and is assessed for impairment as part of<br />
the investment.<br />
Other Intangible Assets<br />
Expenditure incurred on research activities is recognised in income <strong>statements</strong> as and when it is<br />
incurred.<br />
19
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
4.30(b),(c)<br />
12.3<br />
12.6<br />
12.6<br />
12.22<br />
12.31<br />
16.3<br />
16.50<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
Other intangible assets with finite useful lives are stated at cost less accumulated amortisation and<br />
accumulated impairment losses, if any. Other intangible assets are amortised on a straight-line<br />
method over their estimated useful lives, as follows:<br />
Software development costs 5 years<br />
Patents and trademarks 10 years<br />
Investments in Associates<br />
An associate is an entity over which the Group has significant influence and that is neither a<br />
subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the<br />
<strong>financial</strong> and operating policy decisions of the investee but is not control or joint control over<br />
those policies.<br />
Investments in associates are stated in the Company’s <strong>financial</strong> <strong>statements</strong> at cost, less impairment<br />
losses, if any.<br />
Investments in associates are accounted for in the Group’s consolidated <strong>financial</strong> <strong>statements</strong> using<br />
equity method until the date the Group ceases to have significant influence over the associates.<br />
Under the equity method, the investments in associates are initially recognised at cost and the<br />
carrying amount is increased or decreased to recognise the investor’s share of the results of the<br />
investees after the date of acquisition, less impairment losses, if any. Losses of associates in excess<br />
of the Group’s interest in the associates, include any long-term interests that form part of the<br />
Group’s net investment in the associates, are not recognised.<br />
Profits or losses on transactions entered between the Group and the associates are eliminated to<br />
the extent of the Group’s interest in the associates.<br />
Investments in Joint Ventures<br />
A joint venture is a contractual arrangement whereby the Group and other parties undertake an<br />
economic activity that is subject to joint control, where the strategic <strong>financial</strong> and operating<br />
decisions relating to the activity require the unanimous consent of the parties sharing control.<br />
Investment in jointly-controlled entities are accounted for in the Group’s consolidated <strong>financial</strong><br />
<strong>statements</strong> using equity method until the date the Group ceases to have joint control.<br />
IAS 25 Other Investments<br />
Other non-current investments are stated at cost less impairment losses, if any. Other current<br />
investments are stated at the lower of cost and net realisable value.<br />
23 Impairment of Assets<br />
At each balance sheet date, the Group and the Company assess whether there is any indication<br />
that an asset may be impaired. If any such indication exists, the recoverable amounts of the assets<br />
are estimated.<br />
When it is not possible to estimate the recoverable amount of an individual asset, the Group and<br />
the Company estimate the recoverable amount of the cash-generating unit to which the asset<br />
belongs.<br />
20
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
6.9<br />
6.11(a)<br />
6.11(b),(c)<br />
6.17<br />
6.39<br />
6.47<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
Recoverable amount is the higher of the net selling price and value in use. In assessing value in<br />
use, the estimated future cash flows are discounted to their present value using a pre-tax discount<br />
rate that reflects current market assessments of the time value of money and the risks specific to<br />
the asset.<br />
If the recoverable amount of an asset (or a cash-generating unit) is less than its carrying amount,<br />
an impairment loss is recognised to reduce the carrying amount to its recoverable amount. An<br />
impairment loss for a cash-generating unit is firstly allocated to reduce the carrying amount of<br />
goodwill allocated to the cash-generating unit, and then, to the other non-current assets of the unit<br />
pro rata on the basis of the carrying amount of each non-current asset in the unit.<br />
An impairment loss is recognised immediately in income <strong>statements</strong>, unless it reverses a previous<br />
revaluation, in which case it is treated as a revaluation decrease.<br />
An impairment loss recognised in prior <strong>financial</strong> periods for an asset, other than goodwill, is<br />
reversed if there has been a change in the estimates used to determine the asset’s recoverable<br />
amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does<br />
not exceed the carrying amount that would have been determined, net of depreciation if no<br />
impairment loss had been recognised, and is recognised immediately in income <strong>statements</strong>, unless<br />
it reverses a previous revaluation, in which case it is treated as a revaluation increase.<br />
Foreign Currency ~ Foreign Currency Transactions<br />
Transactions in foreign currencies are initially translated at the exchange rate at the dates of the<br />
transactions.<br />
At the balance sheet date, foreign currency monetary assets and liabilities are translated into<br />
Ringgit Malaysia at the exchange rate ruling at that date. Exchange differences arising on the<br />
settlement or translation of monetary items are recognised in income <strong>statements</strong>.<br />
Non-monetary assets and liabilities measured at historical cost in a foreign currency are translated<br />
using exchange rates at the date of the transactions. Non-monetary assets and liabilities measured<br />
at fair value in a foreign currency are translated using exchange rates at the date when the fair<br />
value was determined.<br />
Foreign Currency ~ Net Investment in a Foreign Operation<br />
Exchange differences arising on the monetary items that, in substance, forms part of the<br />
Company’s net investment in a foreign operation are recognised in the Company’s income<br />
<strong>statements</strong>. In the consolidated <strong>financial</strong> <strong>statements</strong>, such exchange differences are reclassified to<br />
equity only if the monetary items are denominated in either the reporting currency of the<br />
Company or the foreign operation. Deferred exchange differences are recognised in income<br />
<strong>statements</strong> on disposal of the investment.<br />
Foreign Currency ~ Foreign Entity<br />
Assets and liabilities of a foreign entity are translated into Ringgit Malaysia using the exchange<br />
rate ruling at the balance sheet date. Income and expenses are translated using exchange rate<br />
approximates to those ruling at the date of the transactions. All resulting exchange differences are<br />
recognised in equity.<br />
21
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
6.48 On the disposal of a foreign entity, cumulative deferred exchange differences are recognised in the<br />
consolidated income <strong>statements</strong> as part of the gain or loss on sale.<br />
2.37(a)<br />
MAS5.38<br />
(b)<br />
7.40(c)<br />
7.40(d)<br />
7.40(c)<br />
7.40(c)<br />
5.36<br />
Inventories<br />
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct<br />
materials, direct labour costs and overheads, where applicable, that have been incurred in<br />
bringing the inventories to their present location and condition. Cost is calculated using the Firstin<br />
First-out method. Net realisable value represents the estimated selling price less all estimated<br />
costs of completion and costs to be incurred in marketing, selling and distribution.<br />
Aquaculture inventories are valued at the lower of cost and net realisable value. Aquaculture<br />
inventories are inventories of the identifiable cost units and consist of the aggregate costs of<br />
materials, direct farm labour and production overheads and other costs incurred in nurturing the<br />
species cultured to their saleable condition.<br />
Net realisable value is estimated based on the most reliable evidence available at the time the<br />
estimates are made as to what the inventories are expected to realise upon completion of the cycle.<br />
Receivables<br />
Receivables are measured at anticipated realisable values. Appropriate allowances for estimated<br />
irrecoverable amounts are recognised in income <strong>statements</strong>.<br />
Construction Contract<br />
When the outcome of a construction contract activity can be estimated reliably, contract revenue<br />
and contract costs associated with the construction contract are recognised as revenue and<br />
expenses respectively by reference to the stage of completion of the contract activity at the balance<br />
sheet date. Stage of completion is determined based on the proportion that contract costs incurred<br />
for work performed to date bear to the estimated total contract costs.<br />
When the outcome of a construction contract cannot be estimated reliably, contract revenue are<br />
recognised only to the extent of contract costs incurred that it is probable will be recoverable and<br />
contract costs are recognised as an expense in the <strong>financial</strong> year in which they are incurred.<br />
Contract revenue also includes variations in contract work, claims and incentive payments to the<br />
extent that it is probable that they will result in revenue and they can be measured reliably.<br />
An expected loss on the construction contract is recognised as an expense immediately.<br />
Cash and Cash Equivalents<br />
5.45 Cash and cash equivalents comprise cash and bank balances, short-term deposits and other shortterm,<br />
highly liquid investments that are readily convertible to a known amount of cash with an<br />
insignificant risk of changes in value. For the purpose of the cash flow <strong>statements</strong>, cash and cash<br />
equivalents are presented net of bank overdrafts.<br />
Payables<br />
Payables are stated at cost which is the consideration to be paid in the future for goods and<br />
services rendered.<br />
22
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
10.8<br />
10.22<br />
10.28<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
Interest-Bearing Liabilities<br />
Interest-bearing liabilities are recognised initially at cost, and subsequently measured at amortised<br />
cost with any difference between proceeds and the settlement and redemption value recognised in<br />
income <strong>statements</strong> over the period of borrowing on an effective interest basis.<br />
Hire Purchase and Finance Lease Payables<br />
Hire purchase and leases of property, plant and equipment, which are classified as finance lease,<br />
where substantially all the risks and benefits incidental to the ownership of the assets, but not the<br />
legal ownership, are transferred to the Group and the Company.<br />
Assets under hire purchase and finance lease are depreciated on a straight-line basis over the<br />
shorter of the hire and lease terms or their useful lives. Hire purchase and finance lease interest is<br />
recognised as an expense in income <strong>statements</strong> over the lease period so as to give a constant<br />
periodic rate of interest on the outstanding liability at the end of each accounting period.<br />
All other leases are classified as operating lease and the lease rentals are recognised as an expense<br />
in income <strong>statements</strong> on a straight-line basis over the lease periods.<br />
Provisions<br />
20.15 A provision is recognised when the Group and the Company have a present obligation as a result<br />
of a past event and it is probable that an outflow of resources embodying economic benefits will<br />
be required to settle the obligation. Provisions are recognised based on a reliable estimate of the<br />
amount of the obligation.<br />
31.40<br />
31.30<br />
Equity<br />
Equity issued by the Company is recognised at the proceeds received, net of direct issue costs.<br />
Government Grants<br />
Government grants are recognised when there is reasonable assurance that the Group and the<br />
Company will comply with the conditions attaching to them and the grants will be received.<br />
Government grants are recognised as income on a systematic basis over the periods necessary to<br />
match them with the related costs which they are intended to compensate.<br />
Government grants related to assets are presented in the balance sheets by setting up the grant as<br />
deferred income while government grant related to income is presented as a credit in income<br />
<strong>statements</strong> separately.<br />
Alternative presentation format for government grants:<br />
Government grants related to assets are presented in the balance sheets by deducting the grant in<br />
arriving at the carrying amount of the asset, while government grants related to income are<br />
deducted against the related expenses.<br />
8.36(a) Revenue<br />
Revenue from sales of goods is recognised when the significant risks and rewards of ownership<br />
have been transferred to the buyer. Revenue is measured at the fair value of the consideration<br />
received or receivable, net of discounts and taxes applicable to the revenue.<br />
23
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
MAS5.38(a)<br />
29.11<br />
29.12<br />
29.15<br />
29.18<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
Revenue from rendering of services is measured by reference to the stage of completion of the<br />
transaction at the balance sheet date.<br />
Interest income is recognised using the effective interest method, and accrued on a time basis.<br />
Royalty income, licence fee income and property rental income are recognised on an accrual basis<br />
in accordance with the substance of the relevant agreement.<br />
Dividend income is recognised when the shareholder’s rights to receive payment is established.<br />
Income of aquaculture products is determined based on the project approach by matching costs<br />
and revenues of each individual production cycle. Revenue is recognised at the point of sale.<br />
Short-term Employment Benefits<br />
Short-term employment benefits, such as wages, salaries and social security contributions, are<br />
recognised as an expense in the <strong>financial</strong> year in which the associated services are rendered by<br />
employees of the Group and the Company.<br />
Short-term accumulating compensated absences, such as paid annual leave, are recognised when<br />
the employees render services that increase their entitlement to future compensated absences.<br />
Non-accumulating compensated absences, such as sick and medical leaves, are recognised when<br />
the absences occur.<br />
The expected cost of accumulating compensated absences is measured as the additional amount<br />
expected to be paid as a result of the unused entitlement that has accumulated at the balance sheet<br />
date.<br />
Profit-sharing and bonus plans are recognised when the Group and the Company have a present<br />
legal or constructive obligation to make payments as a result of past events and a reliable estimate<br />
of the obligation can be made. A present obligation exists when, and only when the Group and<br />
the Company have no realistic alternative but to make the payments.<br />
Defined Contribution Plan<br />
29.46 Contributions to the statutory pension scheme are recognised as an expense in income <strong>statements</strong><br />
in the <strong>financial</strong> year to which they relate.<br />
29.125(a)<br />
29.125(a)<br />
Defined Benefit Plan<br />
The Group operates a funded Retirement Benefit Plan (the Plan) for its eligible employees.<br />
Contributions to the Plan are made quarterly and are charged to income <strong>statements</strong> so as to<br />
spread the cost of the Plan over the employees’ working lives in the Group.<br />
The Group’s obligations under the Plan are determined based on triennial actuarial valuations<br />
where the amounts of benefits that the employees have earned in return for their services in the<br />
current and prior <strong>financial</strong> years are estimated. The present values of the Plan’s obligations and<br />
the related current service and any past service cost are determined using the Projected Unit<br />
Credit Method.<br />
24
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
29.93<br />
29.97<br />
29.55<br />
29.114<br />
29.138<br />
29.145<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
Actuarial gains and losses are recognised as income or expense if the net cumulative unrecognised<br />
actuarial gains and losses at the end of the previous reporting period exceed 10% of the greater of<br />
the present value of the obligation and the fair value of Plan assets at the balance sheet date.<br />
Past service cost is recognised as an expense on a straight-line basis over the average period until<br />
the benefits become vested. To the extent that the benefits are already vested immediately<br />
following the introduction of, or changes to, the Plan, the past service cost is recognised<br />
immediately.<br />
The Plan recognised in the balance sheets is the net total of the present value of the Plan adjusted<br />
for unrecognised actuarial gains or losses, unrecognised past service cost, minus the fair value of<br />
Plan assets. Any asset resulting from the computation is stated at the lower of the amount<br />
determined or the total of any cumulative unrecognised actuarial losses and past service cost, and<br />
the present value of available refunds and reductions in future contribution to the Plan.<br />
Gains or losses on the curtailment or settlement of the Plan are recognised when the curtailment or<br />
settlement occurs.<br />
Termination Benefits<br />
Termination benefits are recognised when the Group and the Company are demonstrably<br />
committed to terminate the employment of the employees before the normal retirement date or<br />
provide termination benefits as a result of an offer made for voluntary redundancy.<br />
Termination benefits in relation to the offer made for voluntary redundancy is measured based on<br />
the number of employees expected to accept the offer.<br />
Borrowing costs<br />
27.29(a) Borrowing costs that are directly attributable to the acquisition, construction or production of a<br />
qualifying asset are capitalised as part of the cost of the asset when the expenditures for the asset<br />
and borrowing costs are being incurred, and activities that are necessary to prepare the asset for<br />
its intended use or sale are in progress. Capitalisation of borrowing costs is suspended during any<br />
extended periods in which active development is interrupted and ceased when substantially all<br />
the activities necessary to prepare the qualifying asset for its intended use or sale are complete.<br />
All other borrowing costs are recognised as an expense in income <strong>statements</strong> in the <strong>financial</strong> year<br />
in which they are incurred.<br />
Income Tax<br />
25 Income tax comprises of current tax and deferred tax.<br />
Current tax and deferred tax are charged or credited to equity if the tax relates to items that are<br />
credited or charged directly to equity.<br />
Current tax liabilities are measured based on the amounts expected to be paid, using the tax rates<br />
that have been enacted or substantially enacted by the balance sheet date.<br />
25
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
Deferred tax is provided in full, using the liability method, on temporary differences which are the<br />
differences between the carrying amount in the <strong>financial</strong> <strong>statements</strong> and the corresponding tax<br />
base of an asset or liability at the balance sheet date.<br />
Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets<br />
are recognised for all deductible temporary differences to the extent that it is probable that taxable<br />
profit will be available against which the deductible temporary differences can be utilised.<br />
Deferred tax liabilities and assets are not recognised if the temporary differences arise from<br />
goodwill and for initial recognition of assets or liabilities that affect neither accounting profit nor<br />
taxable profit. Deferred tax liabilities and assets reflect the tax consequences that would follow<br />
from the manner in which the entity expects to recover or settle the carrying amounts of its assets<br />
and liabilities and are measured using the tax rates that have been enacted or substantially<br />
enacted by the balance sheet date.<br />
The carrying amount of the deferred tax assets are reviewed at each balance sheet date, and the<br />
carrying amount is reduced to the extent that it is no longer probable that sufficient taxable profit<br />
will be available to allow all or part of the asset to be utilised. The reduction is reversed to the<br />
extent that it becomes probable that sufficient taxable profit will be available.<br />
26
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
4. PROPERTY, PLANT AND EQUIPMENT<br />
Freehold<br />
Land# Buildings #<br />
Plant and<br />
Machinery<br />
Motor<br />
Vehicles<br />
Equipment,<br />
Furniture and<br />
Fittings<br />
Properties<br />
Under<br />
Construction * Total<br />
THE GROUP RM RM RM RM RM RM RM<br />
Cost / Valuation<br />
15.78(d) At 1 January 2009 1,429,010<br />
15.78(e)(i) Additions 59,178<br />
15.78(e)(iii) Acquistion of a subsidiary 65,073<br />
15.78(e)(iv) Revaluation surplus 97<br />
15.78(e)(ii) Disposals (102)<br />
15.78(e)(ii) Disposal of a subsidiary (3,215)<br />
15.78(e)(ix) Reclassification -<br />
IAS25 Transfer from investment properties -<br />
IAS25 Transfer to investment properties -<br />
15.78(e)(viii) Exchange differences on consolidation 123<br />
15.78(d) At 31 December 2009 1,550,164<br />
Accumulated depreciation and impairment losses<br />
15.78(d) At 1 January 2009 -<br />
15.78(e)(v) Impairment losses recognised -<br />
15.78(e)(iv) Reversal of impairment losses -<br />
15.78(e)(ii) Disposals -<br />
15.78(e)(ii) Disposal of a subsidiary -<br />
15.78(e)(vii) Depreciation charge -<br />
15.78(e)(viii) Exchange differences on consolidation -<br />
15.78(d) At 31 December 2009 -<br />
Carrying Amounts<br />
15.78(d) At 31 December 2008 1,429,010<br />
15.78(d) At 31 December 2009 1,550,164<br />
15.78(a) # At 2009 valuation<br />
* Disclosure requirement under MASB 15.79(c)<br />
15.78(e) Note: Comparative information is not required to be presented<br />
2,549,121<br />
2,000,393<br />
59,605<br />
342<br />
(650)<br />
(65,913)<br />
134,607<br />
543,924<br />
-<br />
349<br />
5,221,778<br />
436,905<br />
-<br />
-<br />
(130)<br />
(34,978)<br />
176,854<br />
87<br />
578,738<br />
2,112,216<br />
4,643,040<br />
1,546,950<br />
238,652<br />
-<br />
-<br />
(239)<br />
(1,324,041)<br />
-<br />
-<br />
-<br />
-<br />
461,322<br />
1,247,864<br />
2,046<br />
(303)<br />
(120)<br />
(903,048)<br />
39,985<br />
-<br />
386,424<br />
299,086<br />
74,898<br />
2,303,021<br />
1,594,500<br />
295,950<br />
-<br />
(32,012)<br />
(932,085)<br />
-<br />
-<br />
-<br />
65,954<br />
3,295,328<br />
1,068,521<br />
-<br />
-<br />
(20,194)<br />
(569,403)<br />
878,774<br />
32,910<br />
1,390,608<br />
1,234,500<br />
1,904,720<br />
769,504<br />
45,960<br />
79,605<br />
-<br />
(32,011)<br />
(76,904)<br />
-<br />
-<br />
-<br />
3,201<br />
789,355<br />
211,247<br />
-<br />
-<br />
(26,591)<br />
(54,921)<br />
132,901<br />
636<br />
263,272<br />
558,257<br />
526,083<br />
905,695<br />
325,943<br />
-<br />
-<br />
-<br />
-<br />
(134,607)<br />
-<br />
(78,954)<br />
-<br />
1,018,077<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
905,695<br />
1,018,077<br />
9,503,301<br />
4,264,626<br />
500,233<br />
439<br />
(65,014)<br />
(2,402,158)<br />
-<br />
543,924<br />
(78,954)<br />
69,627<br />
12,336,024<br />
2,964,537<br />
2,046<br />
(303)<br />
(47,035)<br />
(1,562,350)<br />
1,228,514<br />
33,633<br />
2,619,042<br />
6,538,764<br />
9,716,982<br />
27
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
THE COMPANY<br />
Cost<br />
Equipment,<br />
Furniture<br />
and Fittings<br />
RM<br />
15.78(d) At 1 January 2009 5,351<br />
15.78(e)(i) Additions 677<br />
15.78(e)(ii) Disposals (1,133)<br />
15.78() At 31 December 2009 4,895<br />
Accumulated depreciation<br />
15.78(d) At 1 January 2009 1,281<br />
15.78(e)(ii) Disposals (122)<br />
15.78(e)(vii) Depreciation charge 469<br />
15.78(d) At 31 December 2009 1,628<br />
Carrying amounts<br />
15.78(d) At 31 December 2008 4,070<br />
15.78(d) At 31 December 2009 3,267<br />
15.78(e) Note: Comparative information is not required to be presented.<br />
23.119 In 2009, the Group carried out a review of the recoverable amount of the Group’s assets located in<br />
United Kingdom following an unexpected change in marketing plan. Based on the assessment, an<br />
impairment loss of RM2,046 (2008: RM Nil) was recognised during the <strong>financial</strong> year. These assets<br />
are used by the software segment. The recoverable amounts of the assets have been determined<br />
based on their value in use. The discount rate used for the current estimate was 6%. The discount<br />
rate used when the recoverable amount of these assets was previously estimated in 2008 was 5%.<br />
15.82 Freehold land and buildings of the Group were revalued at 31 December 2009 by Messrs. Valuer &<br />
Co., an independent professional valuer, based on the open market values on an existing use basis.<br />
The revaluation surplus of RM439 (2008: RM3,459) has been transferred to revaluation reserves<br />
accounts of the Group.<br />
15.82 Had the freehold land and buildings been carried at historical cost less accumulated depreciation<br />
and accumulated impairment losses, if any, the carrying amount of the freehold land and buildings<br />
of the Group would have been as follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Freehold land 1,264,180 1,143,123 - -<br />
Buildings 3,781,201 1,859,101 - -<br />
5,045,381<br />
3,002,224<br />
-<br />
28<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
15.84<br />
15.85<br />
15.79(a)<br />
10.26(a)<br />
15.79(a)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
If the entity availed itself for the transitional provision when the MASB first adopted IAS 16 PPE:<br />
Freehold land and buildings of the Group and the Company were revalued in 1995 by an<br />
independent professional valuer based on the open market values on an existing use basis. As the<br />
Group and the Company have availed themselves of the transitional provision when the MASB<br />
first adopted IAS 16 Property, Plant and Equipment, the freehold land and buildings are stated on<br />
the basis of their 1995 valuations and do not adopted a policy of revaluation.<br />
Due to the absence of historical records, the Group and the Company are not able to determine the<br />
carrying amounts of the property, plant and equipment that would have been recognised had the<br />
assets been carried under the cost model.<br />
The carrying amounts of the property, plant and equipment under hire purchase and finance lease<br />
of the Group are as follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Plant and machinery 28,594 92,021 - -<br />
Motor vehicles 487,490 143,932 - -<br />
516,084<br />
235,953<br />
The Group has pledged the following property, plant and equipment to licensed banks to secure<br />
banking facilities granted to the Group:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Freehold land 49,390 65,138 - -<br />
Buildings 60,302 87,194 - -<br />
109,692<br />
152,332<br />
The entities are encouraged, but not required, to disclose the following information:<br />
15.83(a) The carrying amounts of temporarily idle property, plant and equipment of the Group are as<br />
follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Plant and machinery 10,400 38,100 - -<br />
Equipment, furniture and fittings 5,400 6,800 - -<br />
15,800<br />
44,900<br />
-<br />
-<br />
-<br />
29<br />
-<br />
-<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
15.83(b) The gross carrying amounts of fully depreciated property, plant and equipment of the Group are as<br />
follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Plant and machinery 29,100 78,800 - -<br />
Equipment, furniture and fittings 19,000 21,300 - -<br />
48,100<br />
100,100<br />
15.83(c) The carrying amounts of property, plant and equipment of the Group which have been retired from<br />
active use are as follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Plant and machinery 33,000 64,000 - -<br />
Equipment, furniture and fittings 62,000 29,000 - -<br />
95,000<br />
93,000<br />
15.83(d) The fair value of property, plant and equipment of the Group, which are measured using cost<br />
model amounting to RM2,256,900, is RM3,360,500.<br />
IAS 25 5. INVESTMENT PROPERTY<br />
-<br />
-<br />
THE THE<br />
GROUP COMPANY<br />
RM RM<br />
At 1 January 2008 4,464,418 -<br />
Additions 45,089 -<br />
Disposals (3,827) -<br />
Exchange gain on consolidation 765 -<br />
At 31 December 2008 4,506,445 -<br />
Additions 1,000,000 -<br />
Acquisition of a subsidiary 1,217,852 -<br />
Revaluation surplus 91,798 -<br />
Disposals (45,666) -<br />
Exchange loss on consolidation (156) -<br />
Transfer from property, plant and equipment 78,954 -<br />
Transfer to property, plant and equipment (543,924) -<br />
At 31 December 2009<br />
6,305,303<br />
30<br />
-<br />
-<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
The fair value of the investment property of the Group at 31 December 2009 is determined by a<br />
valuation carried out by Messrs. Valuer & Co., an independent professional valuer, based on the<br />
open market values on an existing use basis. Messrs. Valuer & Co. have relevant recognised<br />
professional qualification and have recent experience in valuing properties in the relevant<br />
locations.<br />
The Group has pledged investment property with carrying amount of RM3,983,000 (2008:<br />
RM1,198,000) to licensed banks to secure banking facilities granted to the Group.<br />
If the entity availed itself for the transitional provision when MASB first adopted IAS 16 PPE:<br />
Investment property of the Group was revalued in 1995 by an independent professional valuer<br />
based on the open market values on an existing use basis. As the Group has availed themselves of<br />
the transitional provision when MASB first adopted IAS 16 Property, Plant and Equipment, the<br />
investment property is stated on the basis of their 1995 valuations and does not adopt a policy of<br />
revaluation.<br />
6. LAND HELD FOR DEVELOPMENT<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
32.51(a)<br />
Cost<br />
At beginning of the <strong>financial</strong> year 117,180 60,327 - -<br />
32.51(b)(i) Additions 215,536 115,822 - -<br />
32.51(b)(i) Acquisition of a subsidiary 1,495,060 - - -<br />
32.51(b)(ii) Disposals (391) - - -<br />
32.51(b)(iii) Transfer to property development costs (861,666) (58,969) - -<br />
32.51(a) At end of the <strong>financial</strong> year 965,719 117,180 - -<br />
Accumulated impairment losses<br />
32.51(a) At beginning of the <strong>financial</strong> year (14,558) - - -<br />
32.51(b)(iv) Impairment losses recognised - (14,558) - -<br />
32.51(b)(iv) Reversal of impairment losses 14,558 - - -<br />
32.51(a) At end of the <strong>financial</strong> year - (14,558) - -<br />
32.51(a)<br />
Carrying amounts<br />
At end of the <strong>financial</strong> year<br />
965,719<br />
102,622<br />
32.52(b) Land held for development with carrying amounts of RM657,890 (2008: RM102,622) were pledged<br />
to licensed banks to secure banking facilities granted to the Group.<br />
-<br />
31<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
7. GOODWILL<br />
THE GROUP RM<br />
Cost<br />
At 1 January 2008 6,701,026<br />
Exchange loss on consolidation (119,218)<br />
At 31 December 2008 6,581,808<br />
Exchange gain on consolidation 205,128<br />
Acquisition of a subsidiary 1,397,252<br />
Eliminated on disposal of a subsidiary (176,930)<br />
At 31 December 2009 8,007,258<br />
Amortisation<br />
At 1 January 2008 2,310,308<br />
Exchange gain on consolidation (28,392)<br />
Amortisation charge 471,051<br />
At 31 December 2008 2,752,967<br />
Exchange loss on consolidation 34,691<br />
Amortisation charge 391,289<br />
At 31 December 2009 3,178,947<br />
Impairment losses<br />
At 1 January 2009 -<br />
Impairment losses recognised 37,961<br />
At 31 December 2009 37,961<br />
Carrying amount<br />
At 31 December 2008<br />
At 31 December 2009<br />
3,828,841<br />
4,790,350<br />
32
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
4.30(e)<br />
8. OTHER INTANGIBLE ASSETS<br />
Software<br />
Development Patents and<br />
Costs Trademarks Total<br />
THE GROUP RM RM RM<br />
31.40(b)<br />
31.40(c)<br />
Cost<br />
At 1 January 2008 5,204,374 364,867 5,569,241<br />
Acquisition of a subsidiary - - -<br />
Exchange gain on consolidation - 159 159<br />
Additions 1,403,020 98,726 1,501,746<br />
At 31 December 2008<br />
Additions net of government grant<br />
receipt of RM230,000 for software<br />
6,607,394 463,752 7,071,146<br />
development costs<br />
1,304,054 76,900 1,380,954<br />
Exchange gain on consolidation - 43 43<br />
Disposals - - -<br />
At 31 December 2009 7,911,448 540,695 8,452,143<br />
Amortisation and Impairment Losses<br />
At 1 January 2008 1,724,307 90,274 1,814,581<br />
Impairment losses recognised - 986 986<br />
Exchange loss on consolidation - 35 35<br />
Amortisation charge 986,504 46,400 1,032,904<br />
At 31 December 2008 2,710,811 137,695 2,848,506<br />
Exchange loss on consolidation - 20 20<br />
Impairment losses reversed - (895) (895)<br />
Disposals - - -<br />
Amortisation charge 1,387,016 54,070 1,441,086<br />
At 31 December 2009 4,097,827 190,890 4,288,717<br />
Carrying amounts<br />
At 31 December 2008<br />
At 31 December 2009<br />
3,896,583<br />
3,813,621<br />
326,057<br />
349,805<br />
4,222,640<br />
4,163,426<br />
Government grant related to assets is deducted in arriving at the carrying amount of the assets<br />
During the <strong>financial</strong> year, a subsidiary obtained a government grant under the Research &<br />
Development Grant Scheme up to a maximum of RM1 million on the approved research and<br />
development expenditures incurred.<br />
The government grant granted is subject to the fulfilment of the condition that the percentage of the<br />
knowledge workers should attain 20% of the total workforce of the said subsidiary by 30 June 2010.<br />
The subsidiary has, subsequent to the <strong>financial</strong> year, achieved this condition.<br />
33
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
31.25 The reconciliation of the amortisation before and after deduction of related government grant<br />
recognised as income is as follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Amortisation charge before deduction of<br />
the grant<br />
Effect of the grant on the amortisation<br />
charge (the approved research and<br />
development project is still on-going)<br />
Amortisation charge for the <strong>financial</strong> year<br />
1,441,086<br />
-<br />
1,441,086<br />
1,032,904<br />
-<br />
1,032,904<br />
The carrying amount of other intangible assets whose title is restricted is RM290,000 (2008:<br />
RM310,000).<br />
The carrying amount of other intangible assets pledged as securities for liabilities is RM540,000<br />
(2008: RM500,000).<br />
9. SUBSIDIARIES<br />
-<br />
-<br />
-<br />
THE COMPANY<br />
2009 2008<br />
RM RM<br />
11.32 Investments in subsidiaries 12,320,305 11,336,630<br />
Less: Impairment loss recognised (656) (656)<br />
12,319,649<br />
34<br />
-<br />
-<br />
-<br />
11,335,974
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
11.47(a) Details of the Company’s subsidiaries as at 31 December 2009 are as follows:<br />
CA174(2)<br />
(c)(i)<br />
Name of Subsidiaries<br />
Country of<br />
Incorporation<br />
Principal activities<br />
Proportion<br />
of ownership<br />
interest<br />
Proportion<br />
of voting<br />
power held<br />
% %<br />
<strong>AXP</strong> Holdings Sdn. Bhd. Malaysia Investment holding 100 100<br />
AE R & D Sdn. Bhd. Malaysia Research & development 100 100<br />
AE S & I Sdn. Bhd. Malaysia Marketing of software 100 100<br />
<strong>AXP</strong> Technical Sdn. Bhd. Malaysia Publisher of newsletters 100 100<br />
<strong>AXP</strong> Land Sdn. Bhd. Malaysia Property investment and<br />
development<br />
100 100<br />
<strong>AXP</strong> Property Sdn. Bhd. Malaysia Property investment and<br />
development<br />
100 100<br />
<strong>AXP</strong> Building Sdn. Bhd. Malaysia Construction contractor 100 100<br />
<strong>AXP</strong> Aquaculture Sdn.<br />
Bhd.<br />
Malaysia Aquaculture products 100 100<br />
AE (BVI) Limited * British Virgin<br />
Island<br />
Investment holding 100 100<br />
AE S & I Pte. Ltd. * Republic of<br />
Singapore<br />
Marketing of software 100 100<br />
AE S & I Limited *<br />
AE S & I (NZ) Limited *<br />
AE S & I (PRC) Co., Ltd. *<br />
Hong Kong SAR<br />
New Zealand<br />
People’s Republic<br />
of China<br />
Marketing of software<br />
Marketing of software<br />
Marketing of software<br />
100<br />
80<br />
60<br />
100<br />
80<br />
60<br />
AE S & I (UK) Limited * United Kingdom Marketing of software 90 90<br />
AE S & I (America) Inc. * United States Marketing of software 90 90<br />
AE S & I (Japan) Inc. * Japan Marketing of software 70 45<br />
* The <strong>financial</strong> <strong>statements</strong> of these subsidiaries are audited by the associate firms of Auditors &<br />
Co. in the respective countries.<br />
11.47(b)(ii) Although the Group holds not more than half of the voting power in AE S & I (Japan) Inc., the<br />
Company has the power to cast the majority of votes at meetings of the Board of Directors and the<br />
control of the entity is by the Board. Thus, AE S & I (Japan) Inc. is controlled by the Company and<br />
the <strong>financial</strong> <strong>statements</strong> of that company are included in the consolidated <strong>financial</strong> <strong>statements</strong>.<br />
11.47(b)(iii) The Group owns 51% of equity interest in SERP (Asia-Pacific) Pte. Ltd., a company incorporated in<br />
the Republic of Singapore. However, by virtue of an agreement with the other investor, the Group<br />
does not have control nor significant influence over that company as the other investor has the<br />
power to govern the <strong>financial</strong> and operating policies as well as the power to appoint or remove the<br />
majority of the members of the Board of Directors and the control of the entity is by the Board.<br />
Consequently, the investment is recognised as other investments of the Group.<br />
35
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
When the Company elects not to prepare consolidated <strong>financial</strong> <strong>statements</strong> in accordance with<br />
MASB 11.8, if the Company is a wholly-owned subsidiary of another company, which is also<br />
incorporated in Malaysia, the following disclosure is required:<br />
11.8 The Company does not present consolidated <strong>financial</strong> <strong>statements</strong> in accordance with MASB 11.8 as<br />
the Company is a wholly-owned subsidiary of Be Competent Sdn. Bhd., a company incorporated<br />
in Malaysia and produces consolidated <strong>financial</strong> <strong>statements</strong>. The consolidated <strong>financial</strong> <strong>statements</strong><br />
of Be Competent Sdn. Bhd., which include the <strong>financial</strong> <strong>statements</strong> of the Company, are obtainable<br />
from 83A, Jalan Emas 1, Taman Sri Skudai, 81300 Johor Bahru, Johor.<br />
10. INVESTMENT IN ASSOCIATES<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Cost of investment in:<br />
Unquoted associates 350,000 350,000 23,093 23,093<br />
Quoted associate<br />
Share of post-acquisition profit, net of<br />
628,900 628,900 - -<br />
dividend received<br />
406,214 180,514<br />
-<br />
-<br />
Loan to associates 99,201 80,705 - -<br />
Market value of quoted associate<br />
1,484,315<br />
693,000<br />
1,240,119<br />
642,900<br />
12.37(a) Details of the Group’s associates as at 31 December 2009 are as follows:<br />
Country of<br />
Incorporation<br />
23,093<br />
Proportion<br />
of ownership<br />
interest<br />
-<br />
23,093<br />
36<br />
-<br />
Proportion<br />
of voting<br />
power held<br />
Name of Associates<br />
Principal activities<br />
% %<br />
<strong>AXP</strong> (S) Limited * Republic of Singapore Investment holding<br />
and software<br />
consultancy services<br />
35 35<br />
SERP Sdn. Bhd. Malaysia Marketing of SERP 25 18<br />
AE (HK) Limited Hong Kong SAR Investment holding<br />
and software<br />
consultancy services<br />
40 40<br />
AE (NZ) Limited New Zealand Dormant 30 30<br />
AE Co., Ltd. People’s Republic of Manufacturer of<br />
40 40<br />
China<br />
computer hardware<br />
* The share capital of this associate is quoted on Catalist of Stock Exchange of Singapore.
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
Although the Group holds less than 20% of the voting power in SERP Sdn. Bhd., the Group<br />
exercises significant influence by virtue of the Group’s right in participation in the policy-making<br />
processes.<br />
Although the Group holds 25% in SERP Pte. Ltd., a company incorporated in the Republic of<br />
Singapore, the Group does not have significant influence over SERP Pte. Ltd. as the Group has only<br />
one representative on the Board of Directors out of six directors. Consequently, the investment is<br />
recognised as other investments of the Group.<br />
The <strong>financial</strong> <strong>statements</strong> of AE Co., Ltd. are made up to 30 September to coincide with the <strong>financial</strong><br />
year-end of another investor of AE Co., Ltd., which is incorporated in United States, due to the<br />
statutory requirements in United States. For the purpose of applying the equity method of<br />
accounting, the <strong>financial</strong> <strong>statements</strong> of AE Co., Ltd. for the <strong>financial</strong> year ended 30 September 2009<br />
have been used, and appropriate adjustments have been made for significant transactions between<br />
30 September 2009 and 31 December 2009.<br />
As a result of the borrowings’ terms and conditions, the loan to SERP Sdn. Bhd. of RM47,809 (2008:<br />
RM47,201) is subordinate to the borrowings obtained from an offshore bank.<br />
12.38(a) The following amounts are the Group’s share of the investments in associates:<br />
THE GROUP<br />
2009 2008<br />
RM RM<br />
Assets and Liabilities<br />
Total Assets 2,160,986 1,805,703<br />
Total Liabilities 775,872 646,289<br />
Group’s share of associates’ net assets<br />
1,385,114<br />
1,159,414<br />
Results<br />
Revenue 3,104,983 1,309,042<br />
Profit For The Financial Year<br />
Group’s share of associates’ profit for the <strong>financial</strong> year<br />
536,820<br />
225,700<br />
213,850<br />
69,779<br />
37
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
12.39 The Group has discontinued recognition of its share of losses of AE (HK) Limited as the share of<br />
accumulated losses of the associate has exceeded the Group’s interest in that associate. The<br />
unrecognised share of losses of AE (HK) Limited are as follows:<br />
THE GROUP<br />
2009 2008<br />
RM RM<br />
Group’s unrecognised share of losses:<br />
At beginning of the <strong>financial</strong> year 775,000 430,000<br />
Current year 453,000 345,000<br />
At end of the <strong>financial</strong> year<br />
1,228,000<br />
11. INVESTMENT IN JOINTLY-CONTROLLED ENTITIES<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
775,000<br />
Cost of investment in unquoted shares<br />
Share of post-acquisition profit, net of<br />
300,000 300,000 - -<br />
dividend received<br />
905,535 350,153<br />
-<br />
-<br />
1,205,535<br />
650,153<br />
16.60 Details of significant jointly-controlled entities of the Group are as follows:<br />
Name of Jointly-Controlled Entities<br />
Country of Incorporation<br />
and Residence<br />
Proportion of ownership<br />
interest held by the Group<br />
(%)<br />
Held though subsidiaries 2009 2008<br />
<strong>AXP</strong>-China Co., Ltd. People’s Republic of China 50 50<br />
<strong>AXP</strong>-Singapore Pte. Ltd. Republic of Singapore 40 40<br />
16.60 The following amounts are the Group’s share of the investment in jointly-controlled entities:<br />
THE GROUP<br />
2009 2008<br />
RM RM<br />
Assets and Liabilities<br />
Non-current assets 895,795 743,900<br />
Current assets 615,202 126,906<br />
Group’s Share of Total Assets 1,510,997 870,806<br />
-<br />
38<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
THE GROUP<br />
2009 2008<br />
RM RM<br />
Non-current liabilities 98,003 86,048<br />
Current liabilities 207,459 134,605<br />
Group’s Share of Total Liabilities 305,462 220,653<br />
Group’s Share of Net Assets 1,205,535 650,153<br />
Group’s Share of Results<br />
Revenue 2,450,785 1,968,054<br />
Operating Expenses (1,819,669) (1,468,513)<br />
Profit Before Tax 631,116 499,541<br />
Income Tax Expense (75,734) (74,931)<br />
Profit After Tax<br />
555,382<br />
424,610<br />
IAS 25 12. OTHER INVESTMENTS<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Non-current:<br />
Quoted investments at cost:<br />
Shares outside Malaysia 74,065 69,880 - -<br />
Shares in Malaysia<br />
Unquoted investments at cost:<br />
332,940 454,511 19,370 17,952<br />
Shares in Malaysia 30,760 85,900 - -<br />
437,765<br />
610,291<br />
19,370<br />
17,952<br />
Current<br />
Quoted investments at cost:<br />
Shares outside Malaysia 17,796 45,099 - -<br />
Shares in Malaysia 79,006 110,682 5,068 52,090<br />
96,802<br />
155,781<br />
5,068<br />
52,090<br />
Market value of quoted investments –<br />
published price<br />
Shares outside Malaysia 105,800 135,768 - -<br />
Shares in Malaysia 466,782 693,301 31,412 83,210<br />
The market value of quoted investments is based on quoted market prices at the balance sheet date.<br />
39
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
13. DEFERRED TAX ASSETS / LIABILITIES<br />
25.79(f) The following are the movements of deferred tax assets and liabilities (before offsetting):<br />
Charge (credit) to Acquisition Disposal<br />
At 1 Income<br />
Exchange of<br />
of At 31<br />
THE GROUP<br />
January Statement Equity difference subsidiary subsidiary December<br />
2009 RM RM RM RM RM RM RM<br />
Deferred tax assets<br />
Provisions 58,844 (4,610) - - - - 54,234<br />
Employees benefits 24,890 3,641 - - 3,268 (512) 31,287<br />
Unused tax losses 52,035 344 - 10 - - 52,389<br />
135,769 (625) - 10 3,268 (512) 137,910<br />
Deferred tax liabilities<br />
Properties 1,024,538 196,104 22 39,085 71,847 (37,825) 1,293,771<br />
Trade receivables 9,346 (1,452) - 25 321 (230) 8,010<br />
1,033,884 194,652 22 39,110 72,168 (38,055) 1,301,781<br />
2008<br />
Deferred tax assets<br />
Provisions 53,273 5,571 - - - - 58,844<br />
Employees benefits 22,100 2,790 - - - - 24,890<br />
Unused tax losses 51,769 286 - (20) - - 52,035<br />
127,142 8,647 - (20) - - 135,769<br />
Deferred tax liabilities<br />
Properties 724,746 325,286 175 (25,669) - - 1,024,538<br />
Trade receivables 9,226 151 - (31) - - 9,346<br />
733,972 325,437 175 (25,700) - - 1,033,884<br />
40
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
25.72 Deferred tax assets and liabilities are offset when the Group and the Company have a legally<br />
enforceable right to set off current tax assets against current tax liabilities and deferred tax relate to<br />
income taxes levied by the same taxation authority on the same taxable entity. The amounts of<br />
deferred tax assets and liabilities, after appropriate offsetting, are included in the balance sheet, as<br />
follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Deferred tax assets 10,985 31,164 - -<br />
Deferred tax liabilities 1,174,856 929,279 - -<br />
25.79(e) The following temporary differences have not been recognised:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Deductible temporary differences 40,300 32,200 - -<br />
Unused tax losses 23,900 34,900 - -<br />
64,200<br />
67,100<br />
25.26, 37 Deferred tax assets are not recognised for the above temporary differences as it is not probable that<br />
future taxable profit will be available against which the deductible temporary differences and<br />
unused tax losses can be utilised by the Group as the future profit streams are unpredictable.<br />
However, the unused tax losses may be carried forward indefinitely.<br />
14. PROPERTY DEVELOPMENT COSTS<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
32.50(c)(i) At beginning of the <strong>financial</strong> year:<br />
Land 53,856 23,010 - -<br />
Development costs 83,974 130,952 - -<br />
Add:<br />
137,830 153,962 - -<br />
32.50(c)(iv) Transfer from land held for<br />
development<br />
861,666 58,969<br />
-<br />
-<br />
Acquisition of subsidiary 987,342 - - -<br />
32.50(c)(ii) Development costs incurred<br />
Less:<br />
8,645,329 5,234,942 - -<br />
32.50(c)(iv) Completed properties transferred to<br />
inventories<br />
(456,237) (83,126)<br />
-<br />
-<br />
-<br />
41<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
32.50(c)(iii) Costs recognised as expenses in<br />
income <strong>statements</strong>:<br />
32.50(c)(iii) Prior <strong>financial</strong> years (2,973,797) (80,934) - -<br />
32.50(c)(iii) Current <strong>financial</strong> year (6,010,989) (5,145,983) - -<br />
(8,984,786) (5,226,917)<br />
32.50(c)(i)<br />
At end of the <strong>financial</strong> year<br />
1,191,144<br />
32.50(c)(i) Property development costs at end of the <strong>financial</strong> year represent:<br />
32.52(b)<br />
137,830<br />
Land 440,604 53,856 - -<br />
Development costs 750,540 83,974 - -<br />
1,191,144<br />
137,830<br />
Property development costs with a net carrying amount of RM786,911 (2008: RM137,830) were<br />
pledged to licensed banks to secure banking facilities granted to the Group.<br />
2.37(b) 15. INVENTORIES<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
At cost:<br />
Raw materials - 108,682 - -<br />
Work-in-progress - 36,772 - -<br />
Finished goods - 457,480 - -<br />
Aquaculture inventories 33 75 - -<br />
Building materials 11,420 10,640 - -<br />
Publications 57 58 - -<br />
32.48 Unsold completed development units 311,621 33,756 - -<br />
323,131 647,463 - -<br />
2.37(c) At net realisable value:<br />
Finished goods - 87,321 - -<br />
32.48 Unsold completed development units 70,667 35,352 - -<br />
70,667 122,673 - -<br />
393,798<br />
770,136<br />
2.37(f) Inventories of the Group with a carrying value of RM82,288 (2008: RM69,108) have been pledged to<br />
licensed banks for bank facilities granted to certain subsidiaries.<br />
-<br />
-<br />
-<br />
42<br />
-<br />
-<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
16. TRADE AND OTHER RECEIVABLES<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
1.72 Trade receivables 827,105 1,071,588 - -<br />
Less: Allowance for doubtful debts (69,392) (63,377) - -<br />
Net trade receivables 757,713 1,008,211 - -<br />
1.72 Other receivables, deposits and<br />
prepayments:<br />
- Other receivables 189,973 158,352 3,534 2,424<br />
- Deposits 38,637 39,194 189 321<br />
- Prepayments 50,594 66,227 43 27<br />
279,204 263,773 3,766 2,772<br />
1.72 Amounts due from subsidiaries:<br />
- trade nature - - 765,394 593,201<br />
- non-trade nature and unsecured - - 2,702,515 4,820,005<br />
- Less: Allowance for doubtful debts - - - -<br />
- - 3,467,909 5,413,206<br />
1,036,917<br />
1,271,984<br />
3,471,675<br />
5,415,978<br />
Included in trade receivables of the Group is RM143,682 (2008: RM284,791) owing by companies in<br />
which certain directors of the Company have interests.<br />
Included in other receivables of the Group is RM12,730 (2008: RM32,905) owing by companies in<br />
which certain directors of the Company have interests. The outstanding amount is unsecured,<br />
interest-free and has no fixed terms of repayments.<br />
7.43 17. GROSS AMOUNT DUE FROM CUSTOMERS<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
7.41(a) Aggregate contract costs incurred to date 2,393,904 1,650,960 - -<br />
7.41(a) Add: Attributable profits recognised 703,586 461,986 - -<br />
7.41(a) Less: Expected losses recognised (10,395) (8,267) - -<br />
3,087,095 2,104,679 - -<br />
Less: Progress billings (2,985,697) (1,996,496) - -<br />
101,398<br />
108,183<br />
7.41(c) Retentions included in trade receivables 69,294 80,933 - -<br />
-<br />
43<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
18. FIXED DEPOSITS WITH LICENSED BANKS<br />
Fixed deposits amounting to RM3,540 (2008: RM3,540) are pledged to licensed banks for bank<br />
facilities granted to the Group.<br />
19. CASH AND BANK BALANCES<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Cash on hand and at bank<br />
Cash at bank held under Housing<br />
40,340 38,262 128 214<br />
Development Account<br />
56,965 176,870<br />
-<br />
-<br />
97,305<br />
215,132<br />
32.50(e) Cash at bank held under Housing Development Account are opened and maintained under Section<br />
7A of the Housing Development (Control and Licensing) Act 1966.<br />
132.60(a) 20. TRADE AND OTHER PAYABLES<br />
128<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
1.72 Trade payables 1,396,016 568,165 - -<br />
1.72 Other payables and accruals:<br />
- Other payables 218,900 304,254 179,936 123,902<br />
- Accruals 262,611 239,430 239 320<br />
7.41(b) - Advances received from contract<br />
customers<br />
3,211 1,453<br />
-<br />
-<br />
484,722 545,137 180,175 124,222<br />
1.72 Amounts due to subsidiaries:<br />
- trade nature - - - -<br />
- non-trade nature and unsecured - - 160,303 204,891<br />
- - 160,303 204,891<br />
1,880,738<br />
1,113,302<br />
340,478<br />
214<br />
329,113<br />
Included in trade payables of the Group is RM439,792 (RM290,012) owing to companies in which<br />
certain directors of the Company have interests.<br />
Included in other payables of the Group is RM43,905 (RM46,711) owing to companies in which<br />
certain directors of the Company have interests. The outstanding amount is unsecured, interestfree<br />
and has no fixed terms of repayments.<br />
44
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
7.43 21. GROSS AMOUNT DUE TO CUSTOMERS<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
7.41(a) Aggregate contract costs incurred to date 76,960 33,911 - -<br />
7.41(a) Add: Attributable profits recognised 8,056 5,966 - -<br />
7.41(a) Less: Expected losses recognised (3,095) - - -<br />
81,921 39,877 - -<br />
Less: Progress billings (78,710) (38,424) - -<br />
7.41(c) Retentions included in trade receivables 7,472 6,279 - -<br />
22. HIRE PURCHASE AND FINANCE LEASE PAYABLES<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
10.26(b) Minimum lease payments<br />
- not later than 1 year<br />
- later than 1 year and not later than 5<br />
64,326 59,872 - -<br />
years<br />
98,467 114,297<br />
-<br />
-<br />
- later than 5 years 364 2,769 - -<br />
163,157 176,938 - -<br />
Future finance charges<br />
Present value of hire purchase and<br />
(14,569) (17,650) - -<br />
finance lease payables<br />
148,588 159,288<br />
-<br />
-<br />
10.26(b) Present value of hire purchase and<br />
finance lease payables is analysed as<br />
follows:<br />
- not later than 1 year<br />
- later than 1 year and not later than 5<br />
56,966 53,476 - -<br />
years<br />
91,293 103,502<br />
-<br />
-<br />
- later than 5 years 329 2,310 - -<br />
91,622 105,812 - -<br />
3,211<br />
148,588<br />
1,453<br />
159,288<br />
10.26(c) The Group obtains finance lease and hire purchase facilities to finance certain of its plant and<br />
machinery and motor vehicles. The average remaining lease term is 4 years as at 31 December<br />
2009. Implicit interest rate of the finance lease and hire purchase are fixed at the date of the<br />
agreement, and the amount of lease payments are fixed throughout the lease period. The Group<br />
has the option to purchase the assets at the end of the agreement with minimum purchase<br />
considerations. There is no significant restriction clauses imposed on the finance lease and hire<br />
purchase arrangements.<br />
-<br />
-<br />
45<br />
-<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
23. BANK OVERDRAFTS AND OTHER BANK BORROWINGS<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
BANK OVERDRAFTS<br />
- Secured 179,756 221,126 36,068 44,396<br />
- Unsecured 100,560 103,099 - -<br />
280,316<br />
324,225<br />
36,068<br />
44,396<br />
OTHER BANK BORROWINGS<br />
1.73(f) Non-current Liabilities<br />
Term loans:<br />
- Secured 247,290 265,977 - 41,534<br />
- Unsecured - - - -<br />
247,290 265,977 - 41,534<br />
Current Liabilities<br />
Secured:<br />
- term loans 504,598 662,922 40,751 70,122<br />
- revolving credits 1,715,425 1,148,796 154,750 82,817<br />
- other short-term trade facilities 12,744 120,183 - -<br />
Unsecured:<br />
- term loans 46,182 22,755 - -<br />
- other short-term trade facilities 118,064 140,756 - -<br />
2,397,013 2,095,412 195,501 152,939<br />
2,644,303<br />
2,361,389<br />
195,501<br />
194,473<br />
The secured bank overdrafts and other bank borrowings of the Group and the Company are<br />
secured by a legal charge over the Group’s and the Company’s landed properties, fixed and<br />
floating charges over assets of certain subsidiaries and guaranteed by the Company.<br />
The entities are encouraged, but not required, to disclose the following information:<br />
5.50(a) At the balance sheet date, the Group has undrawn committed credit facilities of RM758,100 (2008:<br />
RM449,700) where all the precedent conditions had been met.<br />
24. PROVISIONS<br />
Warranties Legal Costs Total<br />
THE GROUP RM RM RM<br />
20.85(a) At 1 January 2009 210,156 - 210,156<br />
20.85(b) Additions 113,718 347 114,065<br />
20.85(c) Utilisations (57,503) - (57,503)<br />
20.85(d) Reversals (72,911) - (72,911)<br />
20.85(a) At 31 December 2009 193,460 347 193,807<br />
20.85 Note: Comparative information is not required to be presented.<br />
46
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
20.86<br />
20.86<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Represent:<br />
- Current liability 163,358 165,268 - -<br />
- Non-current liability 30,449 44,888 - -<br />
193,807<br />
210,156<br />
Warranties<br />
Provision for warranties is made based on the management’s best estimate of the expenditure<br />
required, based on past experience of similar products and services, to be incurred during the<br />
warranty periods.<br />
Legal Costs<br />
During the <strong>financial</strong> year, a supplier of a subsidiary took legal action against the said subsidiary<br />
seeking damages, including interest costs and legal costs incurred and to be incurred, from the said<br />
subsidiary for the delay in making payments, but the subsidiary disputes liability due to the quality<br />
of the products supplied by the supplier did not meet its requirement. However, its lawyer advises<br />
that it is probable that the subsidiary will be found liable. A provision has been set up to recognise<br />
further costs associate with settling the supplier.<br />
1.74(a) 25. SHARE CAPITAL<br />
THE GROUP AND THE COMPANY<br />
2009 2008 2009 2008<br />
Number of Shares RM RM<br />
Authorised:<br />
At beginning of the <strong>financial</strong> year 40,000,000 40,000,000 40,000,000 40,000,000<br />
Created during the <strong>financial</strong> year 10,000,000 - 10,000,000 -<br />
At end of the <strong>financial</strong> year<br />
50,000,000<br />
40,000,000<br />
-<br />
50,000,000<br />
47<br />
-<br />
40,000,000<br />
Issued and fully paid:<br />
At beginning of the <strong>financial</strong> year 11,050,200 11,045,200 11,050,200 11,045,200<br />
Issued during the <strong>financial</strong> year 270,000 5,000 270,000 5,000<br />
At end of the <strong>financial</strong> year<br />
11,320,200<br />
11,050,200<br />
11,320,200<br />
11,050,200<br />
During the <strong>financial</strong> year, the authorised share capital of the Company has been increased to<br />
50,000,000 ordinary shares by the creation of 10,000,000 ordinary shares of RM1 each.
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
During the <strong>financial</strong> year, the Company has issued the following shares:<br />
Date of Issue No. of Shares Issued Issue Price Purposes<br />
6 March 2009 20,000 RM2.70 Increase working capital<br />
1 June 2009 250,000 RM4.00 Part finance the acquisition of a subsidiary<br />
The new shares issued rank pari passu in respect of the distribution of dividends and repayment of<br />
capital with the existing shares.<br />
1.74(b) 26. SHARE PREMIUM<br />
Share premium arose from issue of ordinary shares in excess of its par value, as follows:<br />
Date<br />
THE GROUP<br />
AND THE<br />
COMPANY<br />
RM<br />
1 January 2005 Issue of 300,000 shares at an issue price of RM2.50 450,000<br />
1 October 2008 Issue of 5,000 shares at an issue price of RM2.70 8,500<br />
6 March 2009 Issue of 20,000 shares at an issue price of RM2.70 34,000<br />
1 June 2009 Issue of 250,000 shares at an issue price of RM4.00 as part of<br />
the consideration for the acquisition of a subsidiary<br />
750,000<br />
1,242,500<br />
1.74(b) 27. REVALUATION RESERVES<br />
Revaluation reserves arose from the revaluation of landed property of the Group. Revaluation<br />
15.82(g) reserves are not available for distribution as dividends to the Company’s shareholders.<br />
THE THE<br />
GROUP COMPANY<br />
RM RM<br />
At 1 January 2008 553,718 -<br />
Revaluation surplus 3,459 -<br />
Deferred tax liability on revaluation surplus (175) -<br />
At 31 December 2008 557,002 -<br />
Revaluation surplus 92,237 -<br />
Deferred tax liability on revaluation surplus (22) -<br />
Transfer to retained profits on disposal (6,963) -<br />
At 31 December 2009<br />
642,254<br />
48<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
1.74(b) 28. TRANSLATION RESERVES<br />
Translation reserves arose from the exchange differences on translation of foreign operations.<br />
1.74(b) 29. RETAINED PROFITS<br />
Effective 1 January 2008, the Company is given the option to make an irrevocable election to move<br />
to a single tier system or continue to use its tax credit under Section 108 of the Income Tax Act,<br />
1967 for the purpose of dividend distribution until the tax credit is fully utilised or latest by 31<br />
December 2013. The Company has elected to continue to use its tax credit under Section 108 of the<br />
Income Tax Act, 1967.<br />
29.125<br />
(b) & (c)<br />
Accordingly, during the transitional period, the Company may utilise the credit in the Section 108<br />
balance as at 31 December 2007 to distribute cash dividend payments to ordinary shareholders as<br />
defined under the Finance Act, 2007.<br />
At the balance sheet date, subject to the agreement by the Inland Revenue Board:<br />
1. the Company has sufficient tax credit under Section 108 (6) of the Income Tax Act, 1967 to<br />
frank the payment of dividends out of all its retained profits.<br />
2. the Company has a balance of RM2,827,515 (2008: RM5,064,555) in the tax exempt account to<br />
declare tax exempt dividends.<br />
If the Company does not have sufficient tax credit to frank the payment of dividends, the disclose the<br />
following information:<br />
Subject to the agreement by the Inland Revenue Board, the Company has sufficient tax credit under<br />
Section 108 (6) of the Income Tax Act, 1967 to frank the payment of dividends up to RM659,887<br />
(2008: RM422,950) of its retained profits. The Company is required to pay an additional tax of<br />
RM573,373 (2008: RM1,217,927) to frank the payment of dividends out of all its retained profits.<br />
30. RETIREMENT BENEFIT OBLIGATION<br />
The Group operates a funded Retirement Benefit Plan (the Plan) for its eligible employees in<br />
Malaysia. The amount recognised in the balance sheet of the Plan is as follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Present value of funded obligations 238,547 203,796 - -<br />
Less: Fair value of plan assets (145,158) (106,589) - -<br />
93,389 97,207 - -<br />
Unrecognised actuarial losses (22,192) (20,283) - -<br />
Unrecognised past service cost (4,454) (4,684) - -<br />
Net liabilities recognised in balance sheet<br />
66,743<br />
72,240<br />
-<br />
49<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
29.125(e) Changes in the fair value of the plan assets are as follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
At beginning of the <strong>financial</strong> year 106,589 69,409 - -<br />
Expected return 5,216 4,749 - -<br />
Actuarial gains 431 212 - -<br />
Contributions made 43,190 41,540 - -<br />
Benefits paid (10,268) (9,321) - -<br />
At end of the <strong>financial</strong> year<br />
29.125(d) The plan assets is analysed as follows:<br />
29.125(g)<br />
145,158<br />
106,589<br />
Equity instruments 76,938 46,493 - -<br />
Cash and cash equivalents 22,279 13,541 - -<br />
Landed properties 45,592 46,124 - -<br />
Other assets 349 431 - -<br />
145,158<br />
The actual return on plan assets was RM5,647 (2008: RM4,961).<br />
106,589<br />
29.125(d) None of the above plan assets is owned by the Group and the Company. The Group and the<br />
Company do not occupy any of the above properties or use any of the above assets.<br />
29.125(e) A reconciliation of the present value of funded obligations in the balance sheet is as follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
At beginning of the <strong>financial</strong> year 203,796 178,538 - -<br />
Actuarial losses 2,340 2,112 - -<br />
Current service cost 24,875 17,883 - -<br />
Expected interest cost 17,804 14,584 - -<br />
Benefits paid (10,268) (9,321) - -<br />
At end of the <strong>financial</strong> year<br />
238,547<br />
203,796<br />
-<br />
-<br />
-<br />
50<br />
-<br />
-<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
29.125(f) Total expense recognised in income <strong>statements</strong>, included in the administrative expenses (expenses<br />
by function) or employee benefits expenses (expenses by nature) are as follow:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Current service cost 24,875 17,883 - -<br />
Expected interest cost 17,804 14,584 - -<br />
Expected return on plan assets<br />
Expected return on reimbursement right<br />
(5,216) (4,749) - -<br />
recognised as an asset<br />
-<br />
-<br />
-<br />
-<br />
Actuarial losses - 3,210 - -<br />
Past service cost 230 342 - -<br />
Effect on curtailment or settlement - - - -<br />
37,693<br />
31,270<br />
29.125(h) The principal actuarial assumptions used as at the balance sheet date are as follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
% % % %<br />
Discount rate 4 4 - -<br />
Expected rate of return on plan assets 5 5 - -<br />
Expected rate of return on<br />
reimbursement right recognised as an<br />
asset<br />
-<br />
-<br />
-<br />
-<br />
Expected rate of salary increases 5 5 - -<br />
Medical cost trend rate 8 8 - -<br />
-<br />
51<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
31. REVENUE<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
8.36(b)(i) Sales of goods 202,548 278,170 - -<br />
8.36(b)(ii) Rendering of services 786,938 734,376 - -<br />
7.40(a) Contract revenue 1,591,278 1,172,589 - -<br />
32.50(b) Property development revenue 10,013,736 6,932,479 - -<br />
8.36(b)(iii) Interest income 2,768 4,159 17 20<br />
8.36(b)(iv) Royalty income 2,748,944 2,621,434 - -<br />
8.36(b)(v) Dividend income 78,147 91,445 291,768 236,914<br />
Licence fee income 8,118,606 7,404,662 - -<br />
Management fee income - - 89,949 54,609<br />
IAS25 Rental income from investment property 200,718 86,798 75 179<br />
23,743,683<br />
19,326,112<br />
381,809<br />
291,722<br />
32. PROFIT BEFORE TAX<br />
a) Profit before tax is stated after charging / (crediting):<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
CA9.1(j) Allowance for doubtful debts:<br />
- related parties - - - -<br />
- other than related parties 9,438 13,578 - -<br />
4.30(b) Amortisation of goodwill included in<br />
other expenses #<br />
391,289 471,051<br />
-<br />
-<br />
CA9.1(f) Amortisation of other intangible assets<br />
included in: #<br />
- cost of sales 1,241,168 918,276 - -<br />
- other expenses 199,918 114,628 - -<br />
CA9.1(q) Auditors’ remunerations 250,900 250,700 25,000 20,000<br />
CA9.1(j) Bad debts written off 2,512 1,081 - -<br />
15.78(f) Compensation for impaired property,<br />
plant and equipment<br />
(1,203)<br />
-<br />
-<br />
-<br />
7.40(b) Contract costs recognised # 1,352,588 1,166,701 - -<br />
2.40(a) Cost of inventories recognised as expense 171,678 380,226 - -<br />
CA9.1(o) Directors’ remunerations:<br />
- fees 180,000 120,000 - -<br />
- salaries, bonuses and allowances 231,450 201,300 - -<br />
- defined contribution plan 25,500 23,540 - -<br />
8.36(b)(v) Dividend income (1,718) (2,105) - -<br />
1.83,<br />
14.15(c)<br />
Depreciation of property, plant and<br />
equipment #<br />
1,228,514<br />
876,403<br />
469<br />
492<br />
52
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
6.42(a) Exchange loss (gain):<br />
- realised<br />
- unrealised<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
48,903<br />
90,459<br />
(50,490)<br />
79,948<br />
CA9.1(h) (Gain) / Loss on disposal of:<br />
- property, plant and equipment (760) (1,088) (152) 28<br />
- investment property (2,659) (173) - -<br />
- land held for development (14) - - -<br />
- other investments (64,242) (15,914) (24,474) 5,011<br />
- subsidiary (1,459) - 293,051 -<br />
31.30 Government grant deducted against<br />
promotional expenses (Note c)<br />
(100)<br />
-<br />
-<br />
-<br />
31.30 Government grant recognised as other<br />
income (Note c)<br />
(100)<br />
-<br />
-<br />
-<br />
CA9.1(g) Hire of plant and machinery 2,500 5,890 - -<br />
8.36(b)(iii) Interest income from bank deposits (657) (718) - -<br />
2.40(c) Inventories written down to net realisable<br />
value<br />
31,250 45,303<br />
-<br />
-<br />
23.115(a) Impairment losses recognised, included in<br />
other expenses, of: #<br />
- goodwill<br />
37,961<br />
-<br />
-<br />
-<br />
- property, plant and equipment<br />
2,046 643<br />
-<br />
-<br />
- land held for development<br />
- 14,558<br />
-<br />
-<br />
- other intangible assets<br />
- 986<br />
-<br />
-<br />
32.50(b) Property development costs recognised # 8,010,989 5,145,983 - -<br />
20.85(b) Provision for legal costs 347 - - -<br />
20.85(b) Provision for warranties 113,718 91,634 - -<br />
CA9.1(g) Rental of premises 3,769 2,090 - -<br />
4.30(b) Research and development costs<br />
expensed off<br />
39,895 19,998<br />
-<br />
-<br />
CA9.1(j) Reversal of allowance for doubtful debts (348) (732) - -<br />
23.115(b) Reversal of impairment losses, included<br />
in other income, of: #<br />
- property, plant and equipment<br />
(303)<br />
-<br />
-<br />
-<br />
- land held for development<br />
(14,558)<br />
-<br />
-<br />
-<br />
- other intangible assets<br />
(895)<br />
-<br />
-<br />
-<br />
2.40(d) Reversal of inventories written down* (14,694) (21,600) - -<br />
20.85(d) Reversal of provision for warranties (72,911) (31,695) - -<br />
1.83 Staff costs (Note d) # 490,010 342,001 58,975 38,305<br />
2.17(e) * Inventories written down in prior <strong>financial</strong> year have been reversed during the <strong>financial</strong> year as<br />
the management has successfully secured a higher sales amount for those slow-moving<br />
inventories.<br />
2.40(b)<br />
5,605<br />
-<br />
# These items are disclosed on the face of the income <strong>statements</strong> if the entity chooses to present income <strong>statements</strong> by the<br />
nature of expenses.<br />
4,930<br />
-<br />
53
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
27 b) Finance costs<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Interest expense on:<br />
Term loans 55,439 62,288 10,172 12,716<br />
Bank overdrafts 28,322 23,411 4,914 5,432<br />
Hire purchase 6,966 7,226 - -<br />
Finance lease 7,652 8,026 - -<br />
Other short-term bank borrowings 137,410 156,608 15,418 6,114<br />
235,789 257,559 30,504 24,262<br />
Less interest expenses capitalised under:<br />
Property, plant and equipment (325) (642) - -<br />
Property development costs (714) (368) - -<br />
(1,039) (1,010) - -<br />
Amount charged to income <strong>statements</strong><br />
234,750<br />
256,549<br />
30,504<br />
24,262<br />
Finance costs capitalised as part of the cost of the qualifying assets arose from funds that are<br />
borrowed generally. The finance costs capitalised are determined by applying a capitalisation rate<br />
of 7% (2008: 7.5%) to the expenditures on that asset.<br />
c) Government Grants<br />
31.40(b) *1 If the government grant related to income is presented as a credit in the income <strong>statements</strong><br />
During the <strong>financial</strong> year, a subsidiary obtained a grant of RM10,000 in respect of approved<br />
promotional expenditure for promoting Malaysian brands overseas. The grant is presented as a<br />
component of the other income on the income <strong>statements</strong>.<br />
31.40(b)<br />
31.30<br />
*2 If the government grant related to income is deducted in reporting the related expense<br />
During the <strong>financial</strong> year, a subsidiary obtained a grant of RM10,000 in respect of approved<br />
promotional expenditure for promoting Malaysian brands overseas.<br />
The grant is deducted in reporting the related promotional expenditures, included in other<br />
expenses:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Promotional expenses before deduction of<br />
grant<br />
17,456 6,891<br />
-<br />
-<br />
Grant recognised<br />
Promotional expenses after deduction of<br />
(10,000) - - -<br />
grant<br />
7,456 6,891<br />
-<br />
-<br />
54
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
d) Staff costs<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Salaries, bonuses and allowances 351,696 226,717 53,742 34,489<br />
29.47 Contribution to defined contribution plan 37,123 26,378 4,385 3,299<br />
Expenses on defined benefits plan 37,693 31,270 - -<br />
29.147 Termination benefits 769 - - -<br />
Other employees benefits 62,729 57,636 848 517<br />
490,010<br />
342,001<br />
58,975<br />
38,305<br />
33. INCOME TAX EXPENSE<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
25.77<br />
25.78(a)<br />
Current tax expense<br />
Current year<br />
- Malaysia 655,499 580,664 7,869 10,239<br />
CA9.1(l) - payable outside Malaysia<br />
Share of tax expense in<br />
300,457 256,348 - -<br />
- associates 49,654 19,681 - -<br />
- jointly-controlled entities 75,734 74,931 - -<br />
25.78(b) Under (over) provision in prior years<br />
1,081,344<br />
3,076<br />
931,624<br />
(4,801)<br />
7,869<br />
-<br />
10,239<br />
(10,239)<br />
Deferred tax expense<br />
1,084,420 926,823 7,869 -<br />
25.78(c)<br />
25.78(d)<br />
Temporary differences<br />
Changes in tax rates<br />
193,176<br />
2,101<br />
316,790<br />
-<br />
-<br />
-<br />
-<br />
-<br />
195,277 316,790 - -<br />
Total income tax expense<br />
1,279,697<br />
1,243,613<br />
7,869<br />
55<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
25.79(c)(i) The income tax expense is reconciled to the accounting profit at the applicable tax rate as follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Profit before tax 8,278,297 6,043,207 179,723 131,309<br />
Tax at domestic income tax of 28% (2008:<br />
28%) #<br />
Tax effects of:<br />
2,317,923 1,692,098 50,322 36,767<br />
25.79(d) Changes in tax rates for certain overseas<br />
subsidiaries<br />
2,101<br />
-<br />
-<br />
-<br />
Non-taxable income (31,114) (36,767) (57,549) (44,301)<br />
Non-deductible expenses 417,659 420,692 15,096 17,773<br />
Tax incentives<br />
Utilisation of previously unrecognised<br />
(1,057,267) (608,738)<br />
tax losses<br />
Differential tax rate for:<br />
(276) (127)<br />
-<br />
-<br />
- small & medium companies in Malaysia (200) (200) - -<br />
- subsidiaries in foreign countries (359,806) (218,544) - -<br />
- property gain tax (12,399) - - -<br />
Under (over) provision in prior years 3,076 (4,801) - (10,239)<br />
1.85<br />
1.74(c)<br />
19.11<br />
Total income tax expense<br />
# Assumption tax rate<br />
1,279,697<br />
1,243,613<br />
7,869<br />
34. DIVIDENDS<br />
On 1 April 2009, the Company paid a 10% final tax exempt dividend (total dividend of<br />
RM1,105,020) in respect of the previous <strong>financial</strong> year. The net dividend per share was 10 sen.<br />
On 31 August 2009, the directors declared a 10% interim tax exempt dividend (total dividend of<br />
RM1,132,020) in respect of the current <strong>financial</strong> year. The dividend was paid to the shareholders<br />
registered on 31 October 2009. The net dividend per share was 10 sen.<br />
The directors have proposed a 10% final tax exempt dividend in respect of the current <strong>financial</strong><br />
year. The dividend is subject to approval by the shareholders at the forthcoming Annual General<br />
Meeting and has not been included as a liability in the <strong>financial</strong> <strong>statements</strong>. Total dividend<br />
payable is RM1,132,020, and the net dividend per share is 10 sen.<br />
56<br />
-
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
11.47(b) 35. ACQUISITION OF SUBSIDIARY<br />
On 1 June 2009, the Company acquired the entire equity interest in <strong>AXP</strong> Property Sdn. Bhd., a<br />
company incorporated in Malaysia and principally engaged in property investment and<br />
development, for a total consideration of RM1,500,000.<br />
The goodwill arising from the acquisition of <strong>AXP</strong> Property Sdn. Bhd. is attributable to the<br />
anticipated profitability of the acquired business and synergy expected to arise from the acquisition<br />
to the Group’s business in accordance with the Group’s intention to diversify into property<br />
development and investment segment.<br />
The net assets acquired in the transaction, goodwill and cash flow arising therefrom, are as follows:<br />
At date of<br />
acquisition<br />
RM<br />
5.40(d) Property, plant and equipment 500,233<br />
5.40(d) Investment property 1,217,852<br />
Land held for development 1,495,060<br />
Property development costs 987,342<br />
5.40(d) Trade and other receivables 112,368<br />
5.40(c) Cash and bank balances 771<br />
5.40(d) Trade and other payables (227,684)<br />
Progress billings (300,000)<br />
5.40(d) Current tax liabilities (23,469)<br />
5.40(c) Bank overdrafts (800,519)<br />
Other bank borrowings (2,790,306)<br />
5.40(d) Deferred tax liabilities (68,900)<br />
5.40(a)<br />
102,748<br />
Goodwill on consolidation 1,397,252<br />
Purchase consideration<br />
1,500,000<br />
Less: Purchase consideration satisfied by issuance of shares (1,000,000)<br />
Purchase consideration satisfied by cash<br />
500,000<br />
5.40(b) Cash and cash equivalents acquired 799,748<br />
Acquisition of subsidiary, net of cash acquired<br />
1,299,748<br />
57
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
The effects of the acquisition on the <strong>financial</strong> position as at the balance sheet date are as follows:<br />
At<br />
31.12.2009<br />
RM<br />
Property, plant and equipment 543,234<br />
Land held for property development 455,719<br />
Property development costs 691,144<br />
Investment property 543,607<br />
Trade and other receivables 345,678<br />
Cash and bank balances 4,324<br />
Trade and other payables (265,890)<br />
Progress billings (97,597)<br />
Current tax liabilities (45,678)<br />
Bank overdrafts (657,890)<br />
Other bank borrowings (904,784)<br />
Deferred tax liabilities (68,901)<br />
Increase in Group’s net assets<br />
542,966<br />
The effects of the acquisition of <strong>AXP</strong> Property Sdn. Bhd. on the <strong>financial</strong> results of the Group during<br />
the <strong>financial</strong> year are as follows:<br />
Revenue 1,147,392<br />
Expenses (860,844)<br />
Increase in Group’s net profit<br />
RM<br />
286,548<br />
58
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
36. DISPOSAL OF SUBSIDIARY<br />
On 1 December 2009, the Company disposed off its entire interest in a subsidiary, AE Packaging<br />
Sdn. Bhd.<br />
The net assets of AE Packaging Sdn. Bhd. at the date of disposal were as follows:<br />
1.12.2009<br />
RM<br />
5.40(d) Property, plant and equipment 839,808<br />
Inventories 543,788<br />
5.40(d) Trade and other receivables 212,566<br />
5.40(c) Cash and bank balances 1,986<br />
5.40(d) Trade and other payables (880,600)<br />
5.40(d) Current tax liabilities (17,166)<br />
5.40(c) Bank overdrafts (201,716)<br />
Other bank borrowings (416,238)<br />
5.40(d) Deferred tax liabilities (37,543)<br />
5.40(d) Attributable goodwill 176,930<br />
Net assets of AE Packaging Sdn. Bhd.<br />
221,815<br />
Gain on disposal 1,459<br />
5.40(a) Total consideration<br />
223,274<br />
5.40(b) Cash and cash equivalents disposed off 199,730<br />
Proceeds from disposal of subsidiary, net of cash disposed<br />
37. PURCHASES OF PROPERTY, PLANT AND EQUIPMENT<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
423,004<br />
Purchases of property, plant and<br />
equipment<br />
4,264,626 748,665 677 1,088<br />
Less interest expense capitalised (325) (642) - -<br />
5.43 Less purchases made directly by:<br />
Long-term borrowings * (142,219) (35,799) - -<br />
Hire purchases<br />
Purchases of property, plant and<br />
(413,758) (117,688) - -<br />
equipment made by cash payments<br />
3,708,324 594,536 677 1,088<br />
5.44(b)<br />
* Note: If the assets are acquired by directly assuming the related borrowings, the transaction is<br />
deemed to be a non-cash transaction.<br />
59
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
5.45 38. CASH AND CASH EQUIVALENTS<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Fixed deposits with licensed banks 206,625 271,791 - -<br />
Cash and bank balances 97,305 215,132 128 214<br />
Bank overdrafts (280,316) (324,225) (36,068) (44,396)<br />
23,614 162,698 (35,940) (44,182)<br />
5.48 Less: Fixed deposits pledged (3,540) (3,540) - -<br />
5.48 Less: Cash at bank held under Housing<br />
Development Account<br />
Cash and cash equivalents as previously<br />
(56,965) (176,870)<br />
-<br />
-<br />
reported<br />
(36,891) (17,712) (35,940) (44,182)<br />
5.28 Effect of foreign exchange rate changes 432 389 - -<br />
15.79(d)<br />
(36,459)<br />
(17,323)<br />
(35,940)<br />
(44,182)<br />
39. COMMITMENTS<br />
As the balance sheet date, the Group and the Company have the following commitments for the<br />
acquisition of the property, plant and equipment:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Contracted but not provided for 66,504 48,040 8,593 6,594<br />
Authorised but not contracted for 124,000 324,000 - -<br />
190,504<br />
372,040<br />
16.59 The Group’s share of the capital commitments for the acquisition of the property, plant and<br />
equipment of the jointly-controlled entities are as follows:<br />
8,593<br />
THE GROUP<br />
2009 2008<br />
RM RM<br />
6,594<br />
Contracted but not provided for 459,000 982,000<br />
Authorised but not contracted for 212,000 36,000<br />
671,000<br />
1,018,000<br />
60
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
5.34 (a) &<br />
(d)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
The total minimum lease payments under non-cancellable operating leases of the Group for the<br />
leasing of certain of the office premises, with an average lease term of 8 years, is as follows:<br />
THE GROUP THE COMPANY<br />
2009 2008 2009 2008<br />
RM RM RM RM<br />
Within one year<br />
Later than one year and not later than<br />
5,430 4,390 - -<br />
five years<br />
34,500 28,610<br />
-<br />
-<br />
Later than five years 12,390 20,010 - -<br />
52,320<br />
53,010<br />
40. CONTINGENT LIABILITIES<br />
16.58 Contingent liabilities arising from the interest in jointly-controlled entities<br />
Unsecured<br />
- Guarantee given to banks in respect of bank facilities utilised by<br />
<strong>AXP</strong>-China Co., Ltd.<br />
- Guarantee given to suppliers of <strong>AXP</strong>-Singapore Pte. Ltd. in<br />
respect of facilities utilised<br />
12.36 Contingent liabilities arising from the interest in associates<br />
Unsecured<br />
- Guarantee given to an offshore bank for bank facilities utilised by<br />
SERP Sdn. Bhd.<br />
- Guarantee given to the creditors of AE (HK) Limited jointly with<br />
other investors<br />
-<br />
THE GROUP<br />
2009 2008<br />
RM RM<br />
31,040<br />
7,620<br />
38,660<br />
THE GROUP<br />
2009 2008<br />
RM RM<br />
605,040<br />
4,360<br />
609,400<br />
61<br />
-<br />
45,210<br />
4,320<br />
49,530<br />
543,790<br />
3,520<br />
547,310<br />
Contingent liabilities of the Company<br />
THE COMPANY<br />
2009 2008<br />
RM RM<br />
Unsecured<br />
- Guarantee given to subsidiaries for bank facilities granted 354,789 458,791
<strong>PERS</strong> Ref.<br />
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)<br />
(Incorporated in Malaysia)<br />
AND ITS SUBSIDIARIES<br />
1.8(e)<br />
1.46(b),(c)<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009<br />
20.87 During the <strong>financial</strong> year, a customer of a subsidiary took legal action against the said subsidiary for<br />
default in payment of the warranty claims to the said customer amounting to RM40,000. However,<br />
based on legal opinion and the warranty agreement, the said subsidiary has a merit to win the legal<br />
suit. Thus, no provision has been made in the <strong>financial</strong> <strong>statements</strong> of the Group. However,<br />
associated legal costs have been accrued in the balance sheet.<br />
19.19<br />
41. EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE<br />
Subsequent to the balance sheet date,<br />
a) the Company has obtained the court approval to appeal against a legal suit won by a creditor at<br />
the balance sheet date. Total amount claimed by the creditor is RM200,000. No provision has<br />
been made in the <strong>financial</strong> <strong>statements</strong> as the advocator of the Company estimates that the<br />
Company has a good chance to win the litigation.<br />
19.21 b) the Company has entered into an agreement with third parties to acquire the entire interest in Be<br />
Good Limited, a company incorporated in Bermuda, for a total cash consideration of RM5<br />
million. This company is principally an investment holding company with investment in several<br />
companies in North America involving in software development and consultancy services. The<br />
proposed acquisition is expected to strengthen the Group’s present in the software industry in<br />
this region. The acquisition of the interest will be funded by internally generated fund and issue<br />
of shares as disclosed in note (c) below and is expected to be completed in the second quarter of<br />
the <strong>financial</strong> year ending 31 December 2010 if the proposed acquisition is approved by the<br />
relevant authorities and the shareholders of the Company.<br />
19.16<br />
c) the directors of the Company proposed to issue additional 660,100 new ordinary shares of<br />
RM1.00 each at RM5.00 per ordinary share via 2-for-1 Right Issue and 200,000 new ordinary<br />
shares of RM1.00 each at RM5.00 per ordinary shares to selected institutional investors to partly<br />
finance the acquisition of Be Good Limited. The new shares to be issued rank pari passu in<br />
respect of the distribution of dividends and repayment of capital with the existing shares.<br />
d) one of the Group’s debtors has gone into liquidation. The total outstanding amount due from<br />
this debtor amounts to RM50,000. Of the total outstanding amount, the Group expects to recover<br />
approximately RM20,000. An allowance for doubtful debt has been made for the estimated<br />
unrecoverable amount.<br />
42. AUTHORISATION FOR ISSUE OF THE FINANCIAL STATEMENTS<br />
The <strong>financial</strong> <strong>statements</strong> of the Company were authorised for issue by the Board of Directors on 31<br />
January 2010.<br />
62