Annual Report (Complete) - MYCRON Steel Berhad

Notes to the Financial Statements
30 June 2010
1. GENERAL INFORMATION
The principal activities of the Company are investment holding and the provision of management services to its subsidiaries. The
principal activities of the Group are manufacturing and trading of cold rolled steel sheets in coils.
There have been no significant changes in the nature of these activities during the financial year.
The Company is a public limited liability company, incorporated and domiciled in Malaysia and listed on the Main Market of the
Bursa Malaysia Securities Berhad.
The Company is a subsidiary of Melewar Industrial Group Berhad, a company incorporated in Malaysia and listed on the Main
Market of Bursa Malaysia Securities Berhad.
The registered office of the Company is:
Suite 20.03, 20th Floor
Menara MAA
No. 12 Jalan Dewan Bahasa
50460 Kuala Lumpur
The principal place of business of the Company is:
Lot 717 Jalan Sungai Rasau
40706 Shah Alam
Selangor Darul Ehsan
As at 30 June 2010, all monetary assets and liabilities of the Group and Company are denominated in Ringgit Malaysia, unless
otherwise stated.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Unless otherwise stated, the following accounting policies have been applied consistently in dealing with items that are considered
material in relation to the financial statements. These policies have been consistently applied to all the financial years presented,
unless otherwise stated.
(a)
Basis of preparation
The financial statements of the Group and Company have been prepared in accordance with the provisions of the
Companies Act, 1965 and Financial Reporting Standards (“FRS”), the MASB Approved Accounting Standards in Malaysia
for Entities Other than Private Entities. The financial statements have been prepared under the historical cost convention
except as disclosed in this summary of significant accounting policies.
The preparation of financial statements in conformity with the provisions of the Companies Act, 1965 and FRS requires the
use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues
and expense during the reported year. It also requires the Directors to exercise their judgement in the process of applying
the Group’s accounting policies. Although these estimates and judgements are based on the Directors’ best knowledge of
current events and actions, actual results may differ.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant
to the financial statements are disclosed in Note 3.
(i)
Standard that is applicable to the Group and is effective
The new accounting standard effective for the Group’s financial year beginning on or after 1 July 2009 is as follows:
• FRS 8 “Operating Segments” replaces FRS 114 2004
“Segments Reporting”
All changes in accounting policies have been made in accordance with the transition provisions in the standard.
The adoption of FRS 8 did not have a material impact on the financial statements of the Group and Company
Disclosure requirements under the standard have been adopted retrospectively.
(ii)
Standard early adopted by the Group
• FRS 139 “Financial Instruments: Recognition and Measurement” (effective 1 January 2010)
The standard establishes principles for recognising and measuring financial assets, financial liabilities and some
contracts to buy and sell non-financial items. Hedge accounting is permitted only under strict circumstances.
The Group has applied this standard since the financial year ended 31 January 2006.
The accounting policies relating to the measurement of the financial assets are described in Note 2(e) of the
financial statements.
pg 53 | Mycron Steel Berhad