Annual Report (Complete) - MYCRON Steel Berhad

More documents

Recommendations

Info

Notes to the Financial Statements 30 June 2010 (continued) 14. SUBSIDIARIES Company Unquoted shares, at cost Amount owing by a subsidiary 2010 RM 134,062,000 31,027,209 165,089,209 2009 RM 134,062,000 31,027,209 165,089,209 The amount owing by a subsidiary was reclassified as part of the interest in subsidiaries as the amount owing is akin to investment in subsidiaries. The details of the subsidiaries are as follows: Group equity interest Name Principal activities 2010 % 2009 % Mycron Steel CRC Sdn Bhd Manufacturing and trading of cold rolled steel sheets in coils 100 100 Silver Victory Sdn Bhd Dormant 100 100 All subsidiaries are incorporated in Malaysia and are audited by PricewaterhouseCoopers, Malaysia. 15. ASSOCIATE Group Share of net assets of an associate 2010 RM 17,043,110 2009 RM 17,140,735 Less: Impairment loss As at 1 July Impairment loss for the current financial year (3,955,000) (3,955,000) (3,940,993) - As at 30 June (7,895,993) 9,147,117 (3,955,000) 13,185,735 Company Unquoted shares, at cost Less: Impairment loss As at 1 July Impairment loss for the current financial year As at 30 June 17,000,000 (3,955,000) (3,940,993) (7,895,993) 9,104,007 17,000,000 (3,955,000) - (3,955,000) 13,045,000 The share of net assets of an associate at 30 June 2010 include goodwill of RM1,364,476 (2009: RM1,364,476). pg 71 | Mycron Steel Berhad
Notes to the Financial Statements 30 June 2010 (continued) 15. ASSOCIATE (continued) The Group’s share of revenue, profit, assets (including goodwill) and liabilities of the associate are as follows: 2010 RM 2009 RM Revenue Loss after tax - 1,172,780 (97,625) (121,500) Non-current assets Current assets Non-current liabilities Current liabilities Net assets 17,270,591 2,461,506 (740,900) (1,948,087) 17,043,110 17,308,697 2,530,610 (672,868) (2,025,704) 17,140,735 The details of the associate, which is incorporated in Malaysia is as follows: Proportion of ownership interest Name Principal activities 2010 % 2009 % PMP Galvanizers Sdn Bhd* (“PMP”) Manufacturing and trading of galvanised metal 20 20 * Shareholding held directly by the Company. In previous financial year, the Group has commenced legal action to recoup their cost of investment in PMP as a result of non compliance of certain conditions by the vendor pursuant to a shareholder’s agreement entered in 2005. During the financial year, the vendor has filed for a change in the jurisdiction for the case to be heard against the Group on the investment in PMP and the key assumption used in the value-in-use computation has changed since prior financial year as follows: (a) (b) The investment expected to be recovered in 7 years (2009: 5 years) from commencement of legal proceedings in view of legal action taken by vendor; and The industry discount rate of 10.97% (2009: 6.85%) per annum. The amount receivables representing the cost of investment in PMP is in accordance with the terms of the shareholders’ agreement and it is supported by a legal opinion. The discount rate was derived based on weighted average cost of capital of companies in the cold rolled coil industry. As at 30 June 2010, the Group has recognised an impairment loss of RM3,940,993 (2009: RM3,955,000) in PMP as the recoverable amount of PMP was lower than its carrying amount. 16. AVAILABLE-FOR-SALE FINANCIAL ASSETS Group/Company 2010 RM 2009 RM Equity securities: - Unquoted At 1 July Less: Impairment loss At 30 June 934,528 (616,926) 317,602 934,528 - 934,528 The available-for-sale financial asset represents the Group’s investment in Maybach Logistics Sdn Bhd (“Maybach”), a company providing logistics services. During the financial year, the Group and Company have recognised an impairment loss of RM616,927 respectively on the investment, as the recoverable amount of the investment was lower than its carrying value. The recoverable amount of the investment was determined by adjusting the net assets of Maybach with, impairment loss on a trade receivable and an aircraft, and accruals for maintenance cost of an aircraft. pg 72 | Mycron Steel Berhad
Page 2 and 3:
Contents Notice of Seventh (7th) An
Page 4 and 5:
Notice of Seventh Annual General Me
Page 6 and 7:
Chairman’s Statement On behalf of
Page 8 and 9:
Chairman’s Statement (continued)
Page 10 and 11:
Corporate Information Domicile : Ma
Page 12 and 13:
Mycron Steel Berhad pg 11 | Mycron
Page 14 and 15:
Quality Recognition pg 13 | Mycron
Page 16 and 17:
Profile of Directors Tunku Dato’
Page 18 and 19:
Profile of Directors (continued) Da
Page 20 and 21:
Profile of Directors (continued) En
Page 22 and 23: Analysis of Shareholdings As at 15
Page 24 and 25: Analysis of Shareholdings As at 15
Page 26 and 27: Statement on Corporate Governance (
Page 36 and 37: Statement on Internal Control 1. In
Page 38 and 39: Statement on Internal Control (cont
Page 40 and 41: Audit Committee Report (continued)
Page 42 and 43: Directors’ Report for the financi
Page 44 and 45: Directors’ Report for the financi
Page 46 and 47: Statement by Directors Pursuant to
Page 48 and 49: Income Statements for the financial
Page 50 and 51: Consolidated Statement of Changes i
Page 52 and 53: Cash Flow Statements for the financ
Page 54 and 55: Notes to the Financial Statements 3
Page 82 and 83: THIS PAGE HAS BEEN INTENTIONALLY LE
Page 84 and 85: FORM OF PROXY (please refer to the
show all

Annual Report (Complete) - MYCRON Steel Berhad

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?