Download PDF - ChartNexus

More documents

Recommendations

Info

Notes to the Financial Statements (cont’d) For the financial year ended 31 December 2011 38. Financial risk management objectives and policies (cont’d) (e) Commodity price risk (cont’d) Fuel is purchased at the spot rate available at time of purchase, which exposes the Group to the impact of changes to world prices for crude oil. However, the Group continues to assess the potential financial risk associated with rising crude oil prices and whether the risk requires the use of derivative instruments. At the reporting date, there was no outstanding forward tin sales contract (2010: Nil). (f) Market price risk Market price risk is the risk that the fair value or future cash flows of the Group’s financial instruments will fluctuate because of changes in market prices (other than interest or exchange rates). The Group is exposed to equity price risk arising from its investment in quoted equity instruments. The quoted equity instrument outside Malaysia is listed on Australian Securities Exchange in Australia. This instrument is classified as available-for-sale financial asset. At the reporting date, if the share price has been 5% higher, with all other variables held constant, the Group’s AFS reserves in equity would have been RM1,000 higher. If the share price has been 5% lower, with all other variables held constant, the Group’s profit net of tax would have been RM1,000 lower, arising from impairment loss on the investment in equity instrument. (g) Capital management The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the various core businesses. The Group allocates the amount of capital in proportion to risk, manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristic of the underlying assets. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, sell assets or increase borrowings. The Group monitors the return of capital, which is defined as total shareholders’ equity (excluding noncontrolling interests), and gearing ratio, which is defined as total borrowings over the tangible networth (total equity less intangible assets). The Group seeks to maintain a balance between the higher returns that might be possible with higher level of borrowings and the advantages and security afforded by a sound capital position. The Company maintains a Group Gearing ratio (total bank borrowings: tangible networth) of not more than 3.0. Group 2011 2010 RM’000 RM’000 Share capital 100,000 75,000 Share premium 76,372 1,706 Retained earnings 249,301 199,940 Other reserves 1,073 (8,589) Reserve of disposal group classified as held for sale – (3,256) Total shareholders’ equity 426,746 264,801 Non-controlling interests 35,551 42,624 Total equity 462,297 307,425 Less: Intangible assets (Note 17) 1,721 1,547 Tangible networth 460,576 305,878 Total borrowings (Note 28) 563,453 701,040 Gearing ratio as defined above 1.2 2.3 MALAYSIA SMELTING CORPORATION (43072-A) • ANNUAL REPORT 2011 161
Notes to the Financial Statements (cont’d) For the financial year ended 31 December 2011 39. Fair values of financial instruments 162 (a) Fair value of financial instruments that are carried at fair value The following table shows an analysis of financial instruments carried at fair value by level of fair value hierarchy: Building on Success: Developing Resources for the Future Quoted prices in active markets for identical instruments Group and Company 2011 Significant other observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) RM’000 RM’000 RM’000 RM’000 Financial assets: Available-for-sale financial assets (Note 20) - Equity instruments (quoted) 18 – – 18 - Equity instruments (unquoted) Derivatives (Note 34) – – 17,718 17,718 - Foreign currency forward contracts – – – – At 31 December 2011 18 – 17,718 17,736 Financial liabilities: Derivatives (Note 34) - Foreign currency forward contracts – (419) – (419) - Interest rate swap contracts – (865) – (865) At 31 December 2011 – (1,284) – (1,284) Quoted prices in active markets for identical instruments Group and Company 2010 Significant other observable inputs Significant unobservable inputs Total (Level 1) (Level 2) (Level 3) RM’000 RM’000 RM’000 RM’000 Financial assets: Available-for-sale financial assets (Note 20) - Equity instruments (quoted) 47 – – 47 - Equity instruments (unquoted) Derivatives (Note 34) – – 34,320 34,320 - Foreign currency forward contracts – 1,162 – 1,162 At 31 December 2010 47 1,162 34,320 35,529 Financial liabilities: Derivatives (Note 34) - Foreign currency forward contracts – (1) – (1) - Interest rate swap contracts – (1,375) – (1,375) At 31 December 2010 – (1,376) – (1,376)
Page 1 and 2:
ANNUAL REPORT 2011 Building on Succ
Page 3 and 4:
viSion To be a successful world-cla
Page 5 and 6:
Corporate Profile Malaysia Smelting
Page 7 and 8:
Corporate Profile (cont’d) For of
Page 9 and 10:
Notice of Annual General Meeting NO
Page 11 and 12:
Group Financial Highlights 10 Build
Page 13 and 14:
Board of Directors From left to rig
Page 15 and 16:
Directors’ Profile 14 Building on
Page 17 and 18:
Directors’ Profile (cont’d) 16
Page 19 and 20:
Statement by the Chairman 18 Buildi
Page 21 and 22:
Statement by the Chairman (cont’d
Page 23 and 24:
Group Chief Executive Officer/Execu
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Securing the Future (cont’d) 32 B
Page 35 and 36:
Securing the Future (cont’d) Ore
Page 37 and 38:
Tin Market Review 2011-2012 (cont
Page 39 and 40:
Tin Market Review 2011-2012 (cont
Page 41 and 42:
New Opportunities for Tin Use (cont
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Corporate Social Responsibility (co
Page 49 and 50:
Corporate Social Responsibility (co
Page 51 and 52:
Statement on Corporate Governance (
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Audit Committee (cont’d) 3. Quoru
Page 63 and 64:
Audit Committee Report Membership T
Page 65 and 66:
Audit Committee Report (cont’d) I
Page 67 and 68:
Statement on Internal Control (cont
Page 69 and 70:
Directors’ Report The directors h
Page 71 and 72:
Directors’ Report (cont’d) Dire
Page 73 and 74:
Statement by Directors Pursuant to
Page 75 and 76:
Independent Auditors’ Report (con
Page 77 and 78:
Statements of Comprehensive Income
Page 79 and 80:
Statements of Financial Position (c
Page 81 and 82:
Statements of Changes in Equity For
Page 83 and 84:
Statements of Cash Flows For the fi
Page 85 and 86:
Notes to the Financial Statements (
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112: Notes to the Financial Statements (
Page 161: Notes to the Financial Statements (
Page 175 and 176: Supplementary information 44. Break
Page 177 and 178: List of Properties of the Group 31
Page 179 and 180: Tin Statistics (cont’d) 178 Produ
Page 181 and 182: Shareholding Statistics as at 21 Ma
Page 183 and 184: Shareholding Statistics (cont’d)
Page 185 and 186: 184 To: The Company Secretary MALAY
show all

Download PDF - ChartNexus

Create successful ePaper yourself

Delete template?

Save as template?