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