Suria Capital Holdings Berhad

Transcription

1 Laporan Tahunan Annual Report 2. Significant Accounting Policies (Contd.) j) Leases A lease is recognised as a finance lease if it transfers substantially to the all the risks and rewards incident to ownership. All other leases are classified as operating leases. i) Finance Leases Assets acquired by way of hire purchase or finance leases are stated at an amount equal to the lower of their fair values and the present value of the minimum lease payments at the inception of the leases, less accumulated depreciation and impairment losses. The corresponding liability is included in the balance sheet as borrowings. In calculating the present value of the minimum lease payments, the discount factor used is the interest rate implicit in the lease, when it is practicable to determine; otherwise, the s incremental borrowing rate is used. Lease payments are apportioned between the finance costs and the reduction of the outstanding liability. Finance costs, which represent the difference between the total leasing commitments and the fair value of the assets acquired, are recognised as an expense in the income statement over the term of the relevant lease so as to produce a constant periodic rate of charge on the remaining balance of the obligations for each accounting period. The depreciation policy for leased assets is consistent with that for depreciable property, plant and equipment as described in Note 2(d). ii) Operating Leases Operating lease payments are recognised as an expense in the income statement on a straight-line basis over the term of the relevant lease. k) Provisions for Liabilities Provisions for liabilities are recognised when the has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, the amount of a provision is the present value of the expenditure expected to be required to settle the obligation. 59

2 Laporan Tahunan Annual Report 2. Significant Accounting Policies (Contd.) l) Income Tax Income tax on the profit for the year comprises current and deferred tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the year and is measured using the tax rates that have been enacted at the balance sheet date. Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts in the financial statements. In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is recognised in the income statement, except when it arises from a transaction which is recognised directly in equity, in which case the deferred tax is also recognised directly in equity. m) Employee Benefits i) Short Term Benefits Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees of the. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensated absences, and short term nonaccumulating compensated absences such as sick leave are recognised when the absences occur. ii) Defined Contribution Plans As required by law, companies in Malaysia make contributions to the Employees Provident Fund ( EPF ). Such contributions are recognised as an expense in the income statement as incurred. 60

3 Laporan Tahunan Annual Report 2. Significant Accounting Policies (Contd.) n) Revenue Recognition Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the and the amount of the revenue can be measured reliably. i) Sale of Completed Properties Revenue relating to the sale of completed properties is recognised net of discounts upon the transfer of risks and rewards. ii) Revenue from Port Operations Revenue from port operations are recognised on an accrual basis when the services are performed. iii) Sale of Goods Revenue relating to sale of goods is recognised net of discounts upon the transfer of risks and rewards. iv) Revenue from Services Revenue from services rendered is recognised net of discounts as and when the services are performed. v) Interest Income Interest income is recognised on a time proportion basis that reflects the effective yield on the asset. vi) Dividend Income Dividend income is recognised when the right to receive payment is establish. o) Foreign Currencies Transactions in foreign currencies are initially recorded in Ringgit Malaysia at rates exchange ruling at the date of transaction. At each balance sheet date, foreign currency monetary items are translated into Ringgit Malaysia at exchange rates ruling at that date. All exchange rate differences are taken to the income statement. 61

4 Laporan Tahunan Annual Report 2. Significant Accounting Policies (Contd.) o) Foreign Currencies (Contd.) The principal exchange rates used for each respective unit of foreign currency ruling at the balance sheet date are as follows: United States Dollars 3.80 Singapore Dollars 2.19 p) Impairment of Assets At each balance sheet date, the reviews the carrying amounts of its assets, to determine whether there is any indication of impairment. If any such indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable amounts. Recoverable amount is the higher of net selling price and value in use, which is measured by reference to discounted future cash flows. An impairment loss is recognised as an expense in the income statement immediately. q) Financial Instruments Financial instruments are recognised in the balance sheets when the has become a party to the contractual provisions of the instrument. Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. Interest, dividends, gains and losses relating to a financial instrument classified as a liability, are reported as expense or income. Distributions to holders of financial instruments classified as equity are recognised directly in equity. i) Marketable Securities RM Marketable securities are carried at the lower of cost and market value, determined on an aggregate basis. Cost is determined on the weighted average basis while market value is determined based on quoted market values. Increases or decreases in the carrying amount of marketable securities are recognised in the income statement. On disposal of marketable securities, the difference between net disposal proceeds and the carrying amount is recognised in the income statement. 62

5 Laporan Tahunan Annual Report 2. Significant Accounting Policies (Contd.) q) Financial Instruments (Contd.) ii) iii) iv) Receivables Receivables are carried at anticipated realisable values. Bad debts are written off when identified. An estimate is made for doubtful debts based on a review of all outstanding amounts at the balance sheet date. Payables Payables are stated at cost which is the fair value of the consideration to be paid in the future for goods and services received. Equity Instruments Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in which they are declared. 3. Significant Events a) Matters relating to a subsidiary company i) On 1 September, Sabah Ports Sdn. Bhd. ( SPSB ), a wholly-owned subsidiary, completed the take over of the business undertakings of Sabah Ports Authority pursuant to the Privatisation Agreement between the, the State Government of Sabah and Sabah Ports Authority ( SPA ) on 23 September ( the Privatisation Agreement ). Pursuant to the terms of the Privatisation Agreement, SPSB entered into Business Sale Agreement, Port Lease Agreement and Headquarter Lease Agreement with SPA. ii) Pursuant to the Loan Agreement between the Government of Malaysia and SPA dated 31 December, the Government of Malaysia agreed to make available to SPA a sum of RM193 million to SPA to be on-lend to SPSB for the purpose of financing the purchase of cargo handling equipment and construction of the Sepangar Bay Container Terminal. The Sub-Loan Agreement between SPA and SPSB was signed on 5 February This financial assistance is made pursuant to Clause 15.1 of the Privatisation Agreement. 63

6 Laporan Tahunan Annual Report 3. Significant Events (Contd.) b) Changes in Corporate Structure (Contd.) 4. Revenue i) On 24 March, the acquired 100% equity interest in Suria Bumiria Sdn. Bhd., a company incorporated in Malaysia. The paid up capital of the company is RM2. ii) On 11 October, the acquired 60% equity interest in Tricubes Suria Sdn. Bhd. (formerly known as Prima Eraglobal Sdn. Bhd.), a company incorporated in Malaysia. The paid up capital of the company at the date of acquisition is RM100,000. iii) On 1 September, the acquired 70% equity interest in S.P. Satria Sdn. Bhd., a company incorporated in Malaysia. The paid up capital of the company is RM500,000. iv) On 27 May, the acquired 100% equity interest in SCHB Engineering Services Sdn. Bhd. (formerly known as Mega Intraway Sdn. Bhd.), a company incorporated in Malaysia. The paid up capital of the company at the date of acquisition is RM2. v) On 22 December, the acquired 40% equity interest in Hikmat Bumimaju Sdn. Bhd., a company incorporated in Malaysia. The paid up capital of the company is RM1,000,000. Revenue of the and of the comprises: Management fees - - 1,200 - Sale of completed properties 15,124 3,161 15,124 3,161 Dividend income received on shares quoted in Malaysia (gross) Dividend income received on unit trust funds Fixed deposits interest income 5,530 6,731 5,530 6,731 Income from port operations - At wharves 45, Anchorage 5, Ferry terminal ,952 10,366 22,337 10,366 64

7 Laporan Tahunan Annual Report 5. Cost of Sales Cost of sales represents cost of completed properties and inventories sold and cost of services rendered. 6. Profit from Operations Profit from operations is stated after charging/(crediting): Allowance for diminution in value of marketable securities written back - (855) - (855) Amortisation of goodwill on business acquisition Amortisation of port concession rights 1, Allowance for diminution in value of marketable securities Auditors remuneration: - Statutory audit - Other services Bad debts written off Depreciation of property, plant and equipment 2, Directors remuneration (Note 7) 1,301 1,058 1,081 1,058 Equipment written off Interest income on fixed deposits (5,849) (6,731) (5,530) (6,731) Gain on disposal of equipment (144) (55) (144) (55) Loss/(gain) on disposal of marketable securities 57 (1,146) 57 (1,146) Over-accrual of property development expenses written back - (392) - (392) Provision for impairment loss on land held for development - 1,052-1,052 Provision for unutilised leave and other benefits Provision for doubtful debts Rental of office premises Staff costs (Note 8) 12,408 1,953 2,126 1,888 65

8 Laporan Tahunan Annual Report 7. Directors' Remuneration Executive directors: Salaries Other emoluments Benefits-in-kind Non-executive directors: Fees Other emoluments Benefits-in-kind Total directors remuneration 1,301 1,058 1,081 1,058 The number of directors of the and of the whose total remuneration during the year fell within the following bands is analysed below: Number of directors Executive directors: Below RM50, RM50,001 RM150, RM200,001 RM300, RM400,001 RM450,000 1* 1 1* 1 Non-executive directors: Below RM50, RM50,001 RM100, RM150,000 RM200, RM250,000 RM300, * During the year, one of the executive directors was redesignated to become non-executive director. 66

9 Laporan Tahunan Annual Report 8. Staff Costs Salaries, wages and allowances 11,008 1,712 1,854 1,647 Employees Provident Fund contributions 1, SOCSO contributions Bonuses ,408 1,953 2,126 1, Finance Costs Interest on finance lease Exceptional Item The item in previous year was related receipt of the final settlement sum received in respect of disputes over determination of total sale consideration of Sabah Bank Berhad, a former subsidiary company. 11. Taxation Tax expense for the year: Malaysian income tax 6, Deferred tax relating to origination and reversal of temporary differences 1, (Over)/under provision in prior year (148) 57 (148) 57 7, Income tax is calculated at the Malaysian statutory income tax rate of 28% (: 28%) of the estimated assessable profit for the year. 67

10 Laporan Tahunan Annual Report 11. Taxation (Contd.) A reconciliation of the income tax expense applicable to profit before taxation at the statutory income tax rate to income tax expense at the effective income tax rate of the and of the is as follows: Profit before taxation 23,457 23, ,431 Taxation at Malaysian statutory tax rate of 28% (: 28%) 6,568 6, ,561 Income not subject to tax (184) (6,502) (184) (6,502) Expenses not deductible for tax purposes 1, Deferred tax not recognised on deductible temporary differences Effect of utilisation of capital capital allowances brought forward (1,206) (Over)/under provision of income tax expense in prior year (148) 57 (148) 57 Tax expense for the year 7, Tax losses are analysed as follows: Tax savings recognised during the year arising from: Utilisation of current year tax losses 768 1, ,228 Utilisation of tax losses brought forward from previous years Unutilised tax losses carried forward 2,508 2,477 2,508 2,477 Unabsorbed capital allowances are analysed as follows: Unabsorbed capital allowances carried forward 1,486 1,125 1,486 1,125 68

11 Laporan Tahunan Annual Report 12. Earnings Per Ordinary Share (Sen) a) Basic Basic earnings per ordinary share is calculated by dividing the profit for the year by the number of ordinary shares in issue during the financial year. Profit for the year 16,366 22,408 Number of ordinary shares in issue ( 000) 566, ,656 Basic earnings per ordinary share (sen) b) Diluted The has no dilutive potential ordinary shares as the Employees Share Option Scheme lapsed on 21 September and it has not been renewed since. 13. Property, Plant and Equipment *Leasehold land and buildings Wharves and jetties Cargo handling equipment Motor vehicles, furniture, equipment and renovation Capital work-inprogress Total Cost At ,138-3,138 Additions 2,220 28,623 20,336 11,794 93, ,532 Disposal (987) - (987) At ,220 28,623 20,336 13,945 93, ,683 69

12 Laporan Tahunan Annual Report 13. Property, Plant and Equipment (Contd.) *Leasehold land and buildings Wharves and jetties Cargo handling equipment Motor vehicles, furniture, equipment and renovation Capital work-inprogress Total Accumulated Depreciation At ,884-1,884 Charge for the year ,058 1,478-2,966 Disposal (709) - (709) At ,058 2,653-4,141 Net Book Value At ,212 28,201 19,278 11,292 93, ,542 At ,254-1,254 Depreciation charge for *Leasehold land and buildings Leasehold land Buildings Total Cost Additions and at , ,220 Accumulated Depreciation Charge for the year and at Net Book Value At , ,212 70

13 Laporan Tahunan Annual Report 13. Property, Plant and Equipment (Contd.) Cost Office equipment Furniture and office renovations Motor vehicles Total At ,121 2,851 Additions Disposals (5) - (697) (702) At ,017 1, ,984 Accumulated Depreciation At ,117 1,872 Charge for the year Disposals - - (697) (697) At ,528 Net Book Value At ,456 At Depreciation charge for During the year, the and the acquired plant and equipment with an aggregate cost of RM156,532,861 (: RM573,193) and RM835,063 (: RM299,162) respectively of which none (: RM60,100) were acquired by means of finance lease arrangement and RM156,532,861 and RM835,063 (: RM513,093 and RM239,062) by cash payments respectively. The net book value of equipment held under finance lease arrangement is RM50,083 (: RM57,095). Capital work-in-progress is in respect of the ongoing constructions of the Sepangar Bay Container Terminal which include an operation building. 71

14 Laporan Tahunan Annual Report 14. Investments in Subsidiaries At cost: Unquoted shares of RM1 each 100,410 - Details of the subsidiary companies, which is incorporated in Malaysia at 31 December are as follows: Name of subsidiaries Sabah Ports Sdn. Bhd. Equity Interest Principal activities Held (%) Provision of port and related services for which the company is to maintain and develop ports facilities in Sabah Suria Bumiria Sdn. Bhd. Development of KK Port Land into an International Cruise Terminal, Integrated Tourism and Commercial Development Project SCHB Engineering Services Sdn. Bhd. (Formerly known as Mega Intraway Sdn. Bhd.) Investment holding company S.P. Satria Sdn. Bhd. Distributor of cargo handling equipment, spare parts and maintenance services 70 - Tricubes Suria Sdn. Bhd. (Formerly known as Prima Eraglobal Sdn. Bhd.) Provision of Information Technology products and services Investment in Associate Unquoted shares at cost Share of post-acquisition reserves (9)

15 Laporan Tahunan Annual Report 15. Investment in Associate (Contd.) Details of the associated company, which is incorporated in Malaysia, as at 31 December are as follows: Name of associate Hikmat Bumimaju Sdn. Bhd. Principal activities Rehabilitation and refurbishment of railway tracks Equity Interest Held (%) Intangible Assets Intangible assets comprise: a) Port Concession Rights Purchase consideration 127,221 - Less: Net assets acquired Total assets acquired 124,526 Total liabilities assumed (109,817) - 14, ,512 - Less: Amortisation for the year (1,250) - At 31 December 111,262 - b) Goodwill on Business Acquisition Goodwill arising from business acquisition 4,694 - Less: Amortisation for the year (52) At 31 December 4,642 - Total 115,904-73

16 Laporan Tahunan Annual Report 17. Land Held for Development Lands, at cost 54,649 1, ,135 Development expenditure 986 5, ,986 55,635 7, ,121 Less: Provision for impairment loss - (1,052) - (1,052) 55,635 6, ,069 One parcel of the lands is zoned under industrial and the title of which is in the process of being issued by the relevant authorities. 18. Loan to Subsidiary This represents an unsecured interest-free loan given to a subsidiary company pursuant to the provisions of the Privatisation Agreement. The repayment of the loan is subordinated to all and any amounts owing to the State Government of Sabah and SPA from time to time under the terms of the Privatisation Agreement, Business Sale Agreement, Port Lease Agreement and SPA Headquarters Lease Agreement and all related documents. 19. Inventories At cost - Completed properties 2,840 8,791 2,840 8,791 Spare parts 2, Consumable stores ,557 8,791 2,840 8,791 There were no inventories stated at net realisable value at 31 December. 74

17 Laporan Tahunan Annual Report 20. Trade Receivables Trade receivables 12,173 1,662 6,039 1,662 Less: Provision for doubtful debts (254) ,919 1,662 6,039 1,662 The s normal trade credit term range from 28 days to 90 days. Other credit terms are assessed and approved on a case-by-case basis. The has no significant concentration of credit risk that may arise from exposures to a single debtor or to groups of debtors. 21. Other Receivables Sundry receivables 3,345 1,777 1,984 1,777 Deposit paid to Sabah State Government for the acquisition of the business undertakings of Sabah Ports Authority - 63, Sundry deposits 4,202 3,990 3,290 3,953 Prepayments Tax recoverable 1,463 1,975 1,463 1,975 Project development cost Contractors advances 2, Business acquisition costs - 4, Project management costs ,506 75,614 6,812 7,773 75

18 Laporan Tahunan Annual Report 21. Other Receivables (Contd.) Business acquisition costs in previous year represent the costs incurred to date on the proposed acquisition of the business undertakings of Sabah Ports Authority. Upon completion of the said acquisition during the year, the costs were deemed to be part of the total cost of acquisition of the Sabah ports operations. The project management costs in previous year represent the preliminary costs incurred to date on the construction of the Sepangar Bay Container Terminal which Sabah Ports Sdn. Bhd. is obliged to undertake upon the completion of the take over of the ports operations. The has no significant concentration of credit risk that may arise from exposures to a single debtor or to group of debtors. 22. Amounts Due from Subsidiaries These amounts are unsecured, interest-free and have no fixed terms of repayment. 23. Amount Due from Associate The amount due from associate is unsecured, interest-free and has no fixed terms of repayment. 24. Marketable Securities At cost: Shares quoted in Malaysia 609 1, ,344 Unit trust funds quoted in Malaysia 13,734 12,368 13,734 12,368 14,343 13,712 14,343 13,712 Allowance for diminution in value of marketable securities (61) (26) (61) (26) 14,282 13,686 14,282 13,686 76

19 Laporan Tahunan Annual Report 24. Marketable Securities (Contd.) Market value: Shares quoted in Malaysia 580 1, ,318 Unit trust funds quoted in Malaysia 13,702 12,368 13,702 12,368 14,282 13,686 14,282 13, Fixed Deposits with Licensed Banks The interest rates of fixed deposits for the financial year range from 2.8% to 3.00% per annum. The fixed deposits are renewable on a monthly basis. 26. Cash and Bank Balances Cash and bank balances 5,148 1,919 1,069 1,919 Housing Development account with a licensed bank ,217 1,959 1,138 1,959 The Housing Development Account is maintained in accordance with Section 7(A) of the Housing Developers (Control and Licensing) Act, 1966 and therefore, restricted from use in other operations. 27. Trade Payables The normal trade credit terms granted to the range from 30 days to 90 days. 77

20 Laporan Tahunan Annual Report 28. Other Payables Sundry payables Accruals and provisions 7,755 1, ,507 Deposits received Amount due to contractors 6, Retention monies of contractors 9, ,542 2,793 1,681 2, Amount due to Sabah Ports Authority The amount due to Sabah Ports Authority ( SPA ) is in respect of reimbursement of mainly capital expenditure incurred by SPA pursuant to the Privatisation Agreement. 30. Lease Payable Minimum lease payments: and Not later than 1 year Later than 1 year and not later than 2 years 7 23 Later than 2 years and not later than 5 years Less: Future finance charges (2) (5) Present value of finance lease liabilities Present value of finance lease liabilities: Not later than 1 year Later than 1 year and not later than 2 years 7 22 Later than 2 years and not later than 5 years

21 Laporan Tahunan Annual Report 30. Lease Payable (Contd.) Analysed as: and Due within 12 months Due after 12 months The lease liability bears interest at the balance sheet date of 14% (: 14%) per annum. 31. Share Capital Number of Ordinary Share of RM1.00 Each Amount Authorised: At 31 December 800,000, ,000, , ,000 Issued and fully paid: At 31 December 566,655, ,655, , , Deferred Tax Liabilities At 1 January - - Recognised in income statement (Note 11) 1,086 - At 31 December 1,086-79

22 Laporan Tahunan Annual Report 32. Deferred Tax Liabilities (Contd.) Presented after appropriate offsetting as follows: Deferred tax assets - - Deferred tax liabilities 1,086-1,086 - The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as follows: Deferred Tax Liabilities of the : Property, Plant and Equipment At 1 January - Recognised in income statement 1,086 At 31 December 1,086 Deferred tax assets have not been recognised in respect of the following items: and Unutilised business losses 2,508 2,477 Unabsorbed capital allowances 1,510 1,125 Taxable temporary differences (530) (258) 3,488 3,344 Deferred tax assets have not been recognised in respect of these items as the utilisation of these tax assets may not be probable. 80

23 Laporan Tahunan Annual Report 33. Cash and Cash Equivalents Fixed deposits with licensed banks (Note 25) 108, ,817 63, ,817 Cash and bank balances (Note 26) 5,148 1,919 1,069 1,919 Housing Development Account with licensed bank (Note 26) , ,776 65, , Contingent Liabilities Unsecured: Guarantee given to banks for credit facilities granted to staff 11, Claim for liquidated damages arising from late delivery of vacant possession of properties sold , Significant Related Party Transactions Transaction with a subsidiary company Management fees charged to Sabah Ports Sdn. Bhd. 1,200 - The directors are of the opinion that the above transaction has been entered into in the normal course of business and has been established on terms and conditions that are not materially different from those obtainable in transaction with unrelated parties 81

24 Laporan Tahunan Annual Report 36. Commitments Capital expenditure: Approved and contracted for: Acquisition of business undertakings of Sabah Ports Authority and development properties pursuant to the Privatisation Agreement - 147,000-59,749 Acquisition of equipment Installation, commission and maintenance of electrical works at Tawau Port Project management consultancy fees for the Sepangar Bay Container Terminal project 180,679 2, Organisation transformation programme Navigation study on Sepangar Bay Container Terminal project Approved but not contracted for: Purchase of equipment 580, Improvement on port infrastructure 598, ,359, ,277-59, Subsequent Events a) On 19 January 2005, SPSB entered into an Agreement with Tricubes Suria Sdn.Bhd. (TSSB), a partly-owned subsidiary of the, to help implement and select software, hardware and services for SPSB s proposed Integrated Port Management System. b) On 20 January 2005, SPSB entered into a Co-Operation Agreement with Sabah Timber Industries Association (STIA), to streamline stevedoring activities in relation to midstream loading of timber and timber related products in Sabah. 82

25 Laporan Tahunan Annual Report 38. Financial Instruments a) Financial Risk Management Objectives and Policies The s financial risk management policy seeks to ensure that adequate financial resources are available for the development of the s businesses whilst managing its interest, liquidity and credit risks. The operates within clearly defined guidelines that are approved by the Board of the Directors and the s policy is not to engage in speculative transactions. b) Interest Rate Risk The s primary interest rate risk relates to interest-bearing debts, and the has no substantial long-term interest-bearing assets at 31 December. The investment in financial assets is short term in nature and they are not held for speculative purposes but have been mostly placed in fixed deposits or occasionally, in short term commercial papers which yield better returns than cash at bank. The information on maturity dates and effective interest rates of financial assets and liabilities are disclosed in their respective notes. c) Liquidity Risk The actively manages its debt maturity profile, operating cash flows and the availability of funding so as to ensure that all repayment and funding needs are met. As part of its overall prudent liquidity management, the maintains sufficient levels of cash or cash convertible investments to meet its working capital requirements. As at 31 December, the had at its disposal, cash amounting to RM113,219,851 (: RM238,775,488). d) Credit Risk Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. Credit risk is minimised through bank guarantees by customers and monitored by limiting the s associations to business partners with high creditworthiness. Trade receivables are monitored on an ongoing basis via group management reporting procedures. The does not have any significant exposure to any individual customer nor does it have any major concentration of credit risk related to any financial instruments. 83

26 Laporan Tahunan Annual Report 38. Financial Instruments (Contd.) e) Fair Values The nominal/notional amount and net fair value of financial instruments not recognised in the balance sheet of the and of the as at the end of the financial year is: Nominal/ notional amount Net fair value Nominal/ notional amount Net fair value At 31 December : Contingent liabilities (Note 34) 12,005 * 302 * At 31 December : Contingent liability (Note 34) 302 * 302 * * It is not practicable to estimate the fair value of contingent liabilities reliably due to the uncertainties of timing, costs and eventual outcome. The following methods and assumptions are used to estimate the fair values of the following: i) Cash and Cash Equivalents, Trade and Other Receivables and Payables The carrying amounts approximate fair values due to the relatively short term maturity of these financial instruments. ii) Amounts Due from Subsidiaries In the opinion of the directors, it is not practicable to determine the fair values of these amounts reliably due principally to a lack of fixed repayment terms entered by the parties involved and without incurring excessive costs. However, the does not anticipate the carrying amounts recorded at the balance sheet date to be significantly different from the values that would eventually be received. 84

27 Laporan Tahunan Annual Report 38. Financial Instruments (Contd.) e) Fair Values (Contd.) iii) Marketable Securities The fair value of quoted shares and unit trust funds is determined by reference to stock exchange quoted market bid prices at the close of the business on the balance sheet date. iv) Lease Payable The carrying value of the s lease payable is deemed to equal the fair value, which the estimates based on incremental rates of comparable borrowing arrangements. 85

28 Laporan Tahunan Annual Report 39. Segment Information Information by industry segments on the s operations is as follows: Revenue and Expenses Investment holding Property development Port operations Eliminations Consolidated Revenue Income from port operations - At wharves , , Anchorage , , Ferry terminal Sale of completed properties ,124 3, ,124 3,161 Dividend income from shares and unit trust funds Management fees 1, (1,200) Fixed deposits interest income 5,530 6, ,530 6,731 7,213 7,205 15,124 3,161 50,815 - (1,200) - 71,952 10,366 86

29 Laporan Tahunan Annual Report 39. Segment Information (Contd.) Information by industry segments on the s operations is as follows: Revenue and Expenses Investment holding Property development Port operations Eliminated Consolidated Results Segment results 7,213 7, (1,081) 27,561 - (1,200) - 33,661 6,124 Other operating income 1,903 1,245 Administrative expenses (12,095) (5,733) Profit from operations 23,469 1,636 Finance cost (3) (3) Share of results of associate (9) - Profit before exceptional item 23,457 1,633 Exceptional item - 21,500 Profit before taxation 23,457 23,133 Taxation (7,086) (725) Profit after taxation 16,371 22,408 Minority interests (5) - Profit for the year 16,366 22,408 87

30 Laporan Tahunan Annual Report 39. Segment Information (Contd.) Investment holding Property development Port operations EliminateCdo n s o l i dated Assets and Liabilities Segment assets 233, ,307 10,580 18, ,917 - (91,203) - 483, ,871 Unallocated corporate assets 1,463 8, , ,850 Segment liabilities 2,045 1, , ,019 - (91,203) - 118,649 3,031 Unallocated corporate liabilities 6, ,093 3,031 Other information Depreciation of property, plant and equipment 2, Non-cash expenses other than depreciation