Weida (M) Bhd. ( ) (Incorporated in Malaysia) and its subsidiaries Financial statements for the financial year ended 31 March 2015
1 Weida (M) Bhd. ( ) (Incorporated in Malaysia) and its subsidiaries Directors' report for the financial year ended 31 March 2015 The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the financial year ended 31 March 2015. Principal activities The Company is principally engaged in investment holding and the provision of management services to its subsidiaries while the principal activities of the subsidiaries are as stated in Note 5 to the financial statements. There has been no significant change in the nature of these activities during the financial year. Results Group RM Company RM Profit for the financial year attributable to: Owners of the Company 17,417,368 7,175,066 Non-controlling interests 3,358,977-20,776,345 7,175,066 ========= ========= Dividends Since the end of the previous financial year, the Company paid a first and final single tier exempt dividend of 3.00 sen per ordinary share of RM0.50 each totalling RM3,806,842 in respect of the financial year ended 31 March 2014 on 21 November 2014. The Directors are recommending a first and final single-tier exempt dividend of 3.00 sen per ordinary share of RM0.50 each totalling RM3,806,836 in respect of the financial year ended 31 March 2015, the payment of which is subject to approval by shareholders at the forthcoming Annual General Meeting.
2 Reserves and provisions There were no material transfers to or from reserves and provisions during the financial year under review, except as disclosed in the financial statements. Directors of the Company Directors who served since the date of the last report are: Dato Lee Choon Chin Jee Hon Chong Chew Chin Choong Yeoh Chin Hoe Lee Pet Loi Dato Jamelah Binti Jamaluddin (appointed on 9.1.2015) Liew Jee Min @ Chong Jee Min (appointed on 3.7.2015) Datuk Dr Stalin Hardin (retired on 26.5.2015) Directors interests in shares The interests of the Directors (including where applicable the interests of their spouses or children who themselves are not Directors of the Company) in the shares of the Company and of its related corporations (other than wholly owned subsidiaries) at the financial year end as recorded in the Register of Directors Shareholdings are as follows: Shareholdings in the Company in which Directors have direct interests Number of ordinary shares of RM0.50 each At At 1.4.2014 Bought Sold 31.3.2015 Dato Lee Choon Chin 7,074,242 - - 7,074,242 Datuk Dr Stalin Hardin 33,334 - - 33,334 Jee Hon Chong 1,764,776 - - 1,764,776 Lee Pet Loi 12,000 - - 12,000 Shareholdings in which Dato Lee Choon Chin has deemed interests Number of ordinary shares Par At Bought/ At value 1.4.2014 Allotment Sold 31.3.2015 The Company * RM0.50 26,048,974 499,000-26,547,974
3 Directors interests in shares (continued) Shareholdings in which Dato Lee Choon Chin has deemed interests (continued) Subsidiaries Number of ordinary shares Par At Bought/ At value 1.4.2014 Allotment Sold 31.3.2015 Weida Environmental Technology Sdn. Bhd. ** RM1.00 56,000 - - 56,000 Sar-Alam Indah Sdn. Bhd. ** RM1.00 580,000 - - 580,000 Renexus-Weida Sdn. Bhd. ** RM1.00 312,840 - - 312,840 Weida (B) Sdn. Bhd. ** BND1.00 24,999 - - 24,999 Weida Philippines Inc. ** PHP1.00 8,407,277 - - 8,407,277 LIPP Biogas (Malaysia) Sdn. Bhd. ** RM1.00 640,000 - - 640,000 Hydro Solutions Sdn. Bhd. ** RM1.00 2 - - 2 Loyal Paragon Sdn. Bhd. ** RM1.00 2,250,000 9-2,250,009 Blast Power Sdn. Bhd. ** RM1.00 153,000 102,000-255,000 Weida Communications Sdn. Bhd. ** RM1.00-140,000-140,000 Vista Cape Sdn. Bhd. ** RM1.00-51 - 51 Weida Towers Sdn. Bhd.** RM1.00 100,000 - ( 30,000) 70,000 Atlas Arrow Sdn. Bhd. ** RM1.00-75 - 75 BND = Brunei Dollar PHP = Philippine Peso * Deemed interest by virtue of his substantial interest in Weida Management Sdn. Bhd.. ** Deemed interest by virtue of his substantial interest in Weida (M) Bhd..
4 Directors interests in shares (continued) None of the other Directors had any interest in the shares of the Company and of its related corporations during and at the end of the financial year. Directors' benefits Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown in the financial statements or the fixed salary of a full time employee of the Company or of related corporations) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest, other than certain Directors who have significant financial interests in companies which traded with certain companies in the Group in the ordinary course of business (see Note 33 to the financial statements). There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate. Issue of shares and debentures There was neither change in the authorised, issued and paid-up capitals of the Company, nor issuances of debentures by the Company, during the financial year. Options granted over unissued shares No options were granted to any person to take up unissued shares of the Company during the financial year. Other statutory information Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that: i. all known bad debts have been written off and adequate provision made for doubtful debts, and ii. any current assets which were unlikely to be realised in the ordinary course of business have been written down to an amount which they might be expected so to realise.
5 Other statutory information (continued) At the date of this report, the Directors are not aware of any circumstances: i. that would render the amount written off for bad debts, or the amount of the provision for doubtful debts, in the Group and in the Company inadequate to any substantial extent, or ii. iii. iv. that would render the value attributed to the current assets in the financial statements of the Group and of the Company misleading, or which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate, or not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial statements of the Group and of the Company misleading. At the date of this report, there does not exist: i. any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and which secures the liabilities of any other person, or ii. any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year. No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations as and when they fall due. In the opinion of the Directors, other than the allowance for impairment loss on property, plant and equipment amounting to RM2,322,585 of the Group (see Note 3.5 to the financial statements), the financial performance of the Group and of the Company for the financial year ended 31 March 2015 have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of that financial year and the date of this report. Significant event during the financial year The details of the significant event that occurred during the financial year are disclosed in Note 34 to the financial statements. Significant subsequent event The details of the significant subsequent event are disclosed in Note 35 to the financial statements.
6 Auditors The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment. Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:......... Yeoh Chin Hoe...... Dato Lee Choon Chin Kuching, Date: 3 July 2015
7 Weida (M) Bhd. ( ) (Incorporated in Malaysia) and its subsidiaries Statements of financial position as at 31 March 2015 Group Company 2015 2014 2015 2014 Note RM RM RM RM Assets Property, plant and equipment 3 102,470,765 88,113,557 1,319,294 2,670,938 Prepaid lease payments 4 3,170,194 3,289,330 - - Investment in subsidiaries 5 - - 66,308,622 60,896,581 Investment in an associate 6 401,883 474,305 490,000 490,000 Goodwill 7 573,718 615,376 - - Other intangible assets 8 29,391,574 42,713,286 - - Trade and other receivables 9 4,446,546 15,017,046 2,775,227 2,775,227 Other investments 10 325,732 325,771 3,732 3,771 Deferred tax assets 11 3,597,534 5,103,189 - - Total non-current assets 144,377,946 155,651,860 70,896,875 66,836,517 --------------- --------------- --------------- --------------- Inventories 12 45,126,563 52,148,411 - - Property development costs 13 75,695,785 72,202,746 - - Trade and other receivables 9 149,934,404 95,975,315 98,970,573 55,035,600 Deposits and prepayments 14 28,812,370 3,795,279 487,904 451,404 Current tax recoverable 3,776,222 2,116,569 441,176 1,236,510 Derivative financial assets 15 33,485 - - - Cash and cash equivalents 16 176,188,465 245,334,371 107,492,948 177,530,003 Total current assets 479,567,294 471,572,691 207,392,601 234,253,517 --------------- --------------- --------------- --------------- Total assets 623,945,240 627,224,551 278,289,476 301,090,034 ========= ========= ========= =========
8 Statements of financial position as at 31 March 2015 (continued) Group Company 2015 2014 2015 2014 Note RM RM RM RM Equity Share capital 17.1 66,666,666 66,666,666 66,666,666 66,666,666 Reserves 17.2 312,294,106 283,819,492 147,194,220 143,826,450 Total equity attributable to owners of the Company 378,960,772 350,486,158 213,860,886 210,493,116 Non-controlling interests 5 10,880,752 7,504,209 - - Total equity 389,841,524 357,990,367 213,860,886 210,493,116 ========= ========= ========= ========= Liabilities Loans and borrowings 18 58,557,021 68,273,467 23,645,154 38,074,817 Deferred tax liabilities 11 11,129,183 8,442,812 - - Total non-current liabilities 69,686,204 76,716,279 23,645,154 38,074,817 --------------- --------------- --------------- --------------- Trade and other payables 19 111,196,154 104,281,217 26,358,328 34,497,928 Derivative financial liabilities 15-56,951 - - Loans and borrowings 18 52,933,075 87,199,701 14,425,108 18,024,173 Current tax payable 288,283 980,036 - - Total current liabilities 164,417,512 192,517,905 40,783,436 52,522,101 --------------- --------------- --------------- --------------- Total liabilities 234,103,716 269,234,184 64,428,590 90,596,918 ========= ========= ========= ========= Total equity and liabilities 623,945,240 627,224,551 278,289,476 301,090,034 ========= ========= ========= ========= The notes on pages 22 to 152 are an integral part of these financial statements.
9 Weida (M) Bhd. ( ) (Incorporated in Malaysia) and its subsidiaries Statements of profit or loss and other comprehensive income for the financial year ended 31 March 2015 Group Company 2015 2014 2015 2014 Note RM RM RM RM Revenue 20 333,841,242 318,229,825 13,575,031 26,366,642 Other income 12,837,453 11,815,681 7,878,923 3,238,256 Contract and property development costs recognised ( 94,946,562) ( 56,698,569) - - Raw materials and consumables used ( 74,493,704) ( 76,034,126) - - Purchase of finished goods ( 22,127,360) ( 34,842,320) - - Changes in inventories ( 1,543,946) 551,754 - - Employee benefits ( 47,973,748) ( 47,833,124) ( 12,638,395) ( 9,716,311) Depreciation and amortisation expenses ( 22,672,696) ( 25,640,761) ( 1,025,097) ( 1,113,387) Plant and production overheads ( 17,978,370) ( 20,033,535) - - Transportation charges ( 9,052,703) ( 9,988,453) - - Other expenses ( 27,670,534) ( 28,802,572) ( 3,966,101) ( 6,369,984) Results from operating activities 21 28,219,072 30,723,800 3,824,361 12,405,216 Interest income 22 6,917,589 8,460,152 7,259,043 6,723,138 Interest expenses 22 ( 5,897,828) ( 5,294,407) ( 3,618,377) ( 4,880,057) Profit payments on Islamic Bonds - ( 2,258,927) - - Net financing income 1,019,761 906,818 3,640,666 1,843,081 Share of results of equity accounted associate 6 ( 72,422) ( 11,337) - - Profit before tax 29,166,411 31,619,281 7,465,027 14,248,297 Tax expense 24 ( 8,390,066) ( 8,668,273) ( 289,961) ( 2,734,858) Profit for the financial year 20,776,345 22,951,008 7,175,066 11,513,439 --------------- --------------- --------------- ---------------
10 Statements of profit or loss and other comprehensive income for the financial year ended 31 March 2015 (continued) Group Company 2015 2014 2015 2014 Note RM RM RM RM Profit for the financial year (continued) 20,776,345 22,951,008 7,175,066 11,513,439 Other comprehensive income/(loss), net of tax Item that will not be reclassified subsequently to profit or loss Revaluation of land and buildings 3.2 15,734,213 - - - Items that may be reclassified subsequently to profit or loss Foreign exchange translation differences for foreign operations ( 1,028,864) 347,516 - - Fair value changes of available-for-sale financial assets ( 39) 233,462 ( 39) 233,462 ( 1,028,903) 580,978 ( 39) 233,462 Other comprehensive income/(loss) for the financial year, net of tax 14,705,310 580,978 ( 39) 233,462 Total comprehensive income for the financial year 35,481,655 23,531,986 7,175,027 11,746,901 ========= ========= ========= ========= Profit for the financial year attributable to: - Owners of the Company 17,417,368 22,143,213 7,175,066 11,513,439 - Non-controlling interests 5 3,358,977 807,795 - - 20,776,345 22,951,008 7,175,066 11,513,439 ========= ========= ========= ========= Total comprehensive income attributable to: - Owners of the Company 32,303,782 22,624,970 7,175,027 11,746,901 - Non-controlling interests 3,177,873 907,016 - - 35,481,655 23,531,986 7,175,027 11,746,901 ========= ========= ========= ========= Basic/Diluted earnings per ordinary share (sen) 25 13.73 17.45 ========= ========= The notes on pages 22 to 152 are an integral part of these financial statements.
11 Weida (M) Bhd. ( ) (Incorporated in Malaysia) and its subsidiaries Consolidated statement of changes in equity for the financial year ended 31 March 2015 Attributable to owners of the Company Non-distributable Foreign exchange Distributable Share Revaluation translation Treasury Fair value Retained Non-controlling Total capital reserve reserve shares reserve earnings Total interests equity Group Note RM RM RM RM RM RM RM RM RM At 1 April 2013 66,666,666 9,983,039 ( 1,521,377) ( 4,599,294) ( 228,264) 262,795,237 333,096,007 13,496,231 346,592,238 Realisation of revaluation reserve - ( 258,913) - - - 258,913 - - - Foreign exchange translation differences for foreign operations - - 248,295 - - - 248,295 99,221 347,516 Fair value changes of available-for-sale financial assets - - - - 233,462-233,462-233,462 Total other comprehensive income for the financial year - - 248,295-233,462-481,757 99,221 580,978 Profit for the financial year - - - - - 22,143,213 22,143,213 807,795 22,951,008 Total comprehensive income for the financial year - - 248,295-233,462 22,143,213 22,624,970 907,016 23,531,986 Subtotal 66,666,666 9,724,126 ( 1,273,082) ( 4,599,294) 5,198 285,197,363 355,720,977 14,403,247 370,124,224 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
12 Consolidated statement of changes in equity for the financial year ended 31 March 2015 (continued) Attributable to owners of the Company Non-distributable Foreign exchange Distributable Share Revaluation translation Treasury Fair value Retained Non-controlling Total capital reserve reserve shares reserve earnings Total interests equity Group (continued) Note RM RM RM RM RM RM RM RM RM Subtotal (continued) 66,666,666 9,724,126 ( 1,273,082) ( 4,599,294) 5,198 285,197,363 355,720,977 14,403,247 370,124,224 Distributions to owners of the Company - Own shares acquired 17.2 - - - ( 404) - - ( 404) - ( 404) - Dividends 26.2 - - - - - ( 5,234,415) ( 5,234,415) - ( 5,234,415) Total transactions with owners of the Company - - - ( 404) - ( 5,234,415) ( 5,234,819) - ( 5,234,819) Acquisition of a subsidiary 30(i) - - - - - - - 41,170 41,170 Issue of ordinary shares by subsidiary - - - - - - - 98,000 98,000 Dividends to non-controlling interests - - - - - - - ( 4,902,300) ( 4,902,300) Total transactions with non-controlling interests - - - - - - - ( 4,763,130) ( 4,763,130) Disposal of subsidiaries 30(iii) - - - - - - - ( 1,940,787) ( 1,940,787) Winding-up of subsidiary 30(iv) - - - - - - - ( 195,121) ( 195,121) At 31 March 2014/1 April 2014 66,666,666 9,724,126 ( 1,273,082) ( 4,599,698) 5,198 279,962,948 350,486,158 7,504,209 357,990,367 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- (Note 17.1) (Note 17.2) (Note 17.2) (Note 17.2) (Note 17.2) (Note 5)
13 Consolidated statement of changes in equity for the financial year ended 31 March 2015 (continued) Attributable to owners of the Company Non-distributable Foreign exchange Distributable Share Revaluation translation Treasury Fair value Retained Non-controlling Total capital reserve reserve shares reserve earnings Total interests equity Group (continued) Note RM RM RM RM RM RM RM RM RM At 31 March 2014/ 1 April 2014 66,666,666 9,724,126 ( 1,273,082) ( 4,599,698) 5,198 279,962,948 350,486,158 7,504,209 357,990,367 Realisation of revaluation reserve - ( 308,031) - - - 308,031 - - - Foreign exchange translation differences for foreign operations - - ( 847,760) - - - ( 847,760) ( 181,104) ( 1,028,864) Fair value changes of available-for-sale financial assets - - - - ( 39) - ( 39) - ( 39) Revaluation of land and buildings - 15,734,213 - - - - 15,734,213-15,734,213 Total other comprehensive income/(loss) for the financial year - 15,734,213 ( 847,760) - ( 39) - 14,886,414 ( 181,104) 14,705,310 Profit for the financial year - - - - - 17,417,368 17,417,368 3,358,977 20,776,345 Total comprehensive income/(loss) for the financial year - 15,734,213 ( 847,760) - ( 39) 17,417,368 32,303,782 3,177,873 35,481,655 Subtotal 66,666,666 25,150,308 ( 2,120,842) ( 4,599,698) 5,159 297,688,347 382,789,940 10,682,082 393,472,022 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
14 Consolidated statement of changes in equity for the financial year ended 31 March 2015 (continued) Attributable to owners of the Company Non-distributable Foreign exchange Distributable Share Revaluation translation Treasury Fair value Retained Non-controlling Total capital reserve reserve shares reserve earnings Total interests equity Group (continued) Note RM RM RM RM RM RM RM RM RM Subtotal (continued) 66,666,666 25,150,308 ( 2,120,842) ( 4,599,698) 5,159 297,688,347 382,789,940 10,682,082 393,472,022 Distributions to owners of the Company - Own shares acquired 17.2 - - - ( 415) - - ( 415) - ( 415) - Dividends 26.2 - - - - - ( 3,806,842) ( 3,806,842) - ( 3,806,842) - - - ( 415) - ( 3,806,842) ( 3,807,257) - ( 3,807,257) Changes in ownership interest in a subsidiary - - - - - ( 21,911) ( 21,911) 51,911 30,000 Total transactions with owners of the Company - - - ( 415) - ( 3,828,753) ( 3,829,168) 51,911 ( 3,777,257) Acquisition of a subsidiary 30(i) - - - - - - - ( 11,239) ( 11,239) Issue of ordinary shares by a subsidiary - - - - - - - 157,998 157,998 Total transactions with non-controlling interests - - - - - - - 146,759 146,759 At 31 March 2015 66,666,666 25,150,308 ( 2,120,842) ( 4,600,113) 5,159 293,859,594 378,960,772 10,880,752 389,841,524 ========= ========= ========= ========= ========= ========= ========= ========= ========= (Note 17.1) (Note 17.2) (Note 17.2) (Note 17.2) (Note 17.2) (Note 5)
15 Statement of changes in equity for the financial year ended 31 March 2015 Non-distributable Distributable Share Treasury Fair value Retained capital shares reserve earnings Total Company Note RM RM RM RM RM At 1 April 2013 66,666,666 ( 4,599,294) ( 228,264) 142,141,926 203,981,034 Total other comprehensive income for the financial year - Fair value changes of available-for-sale financial assets - - 233,462-233,462 Profit for the financial year - - - 11,513,439 11,513,439 Total comprehensive income for the financial year - - 233,462 11,513,439 11,746,901 Distributions to owners of the Company - Own shares acquired 17.2 - ( 404) - - ( 404) - Dividends 26.2 - - - ( 5,234,415) ( 5,234,415) Total distributions to owners of the Company - ( 404) - ( 5,234,415) ( 5,234,819) At 31 March 2014/1 April 2014 66,666,666 ( 4,599,698) 5,198 148,420,950 210,493,116 --------------- --------------- --------------- --------------- --------------- (Note 17.1) (Note 17.2) (Note 17.2)
16 Statement of changes in equity for the financial year ended 31 March 2015 (continued) Non-distributable Distributable Share Treasury Fair value Retained capital shares reserve earnings Total Company (continued) Note RM RM RM RM RM At 31 March 2014/1 April 2014 66,666,666 ( 4,599,698) 5,198 148,420,950 210,493,116 Total other comprehensive (loss)/income for the financial year - Fair value changes of available-for-sale financial assets - - ( 39) - ( 39) Profit for the financial year - - - 7,175,066 7,175,066 Total comprehensive (loss)/income for the financial year - - ( 39) 7,175,066 7,175,027 Distributions to owners of the Company - Own shares acquired 17.2 - ( 415) - - ( 415) - Dividends 26.2 - - - ( 3,806,842) ( 3,806,842) Total distributions to owners of the Company - ( 415) - ( 3,806,842) ( 3,807,257) At 31 March 2015 66,666,666 ( 4,600,113) 5,159 151,789,174 213,860,886 ========= ========= ========= ========= ========= (Note 17.1) (Note 17.2) (Note 17.2) The notes on pages 22 to 152 are an integral part of these financial statements.
17 Weida (M) Bhd. ( ) (Incorporated in Malaysia) and its subsidiaries Statements of cash flows for the financial year ended 31 March 2015 Group Company 2015 2014 2015 2014 Note RM RM RM RM Cash flows from operating activities Profit before tax 29,166,411 31,619,281 7,465,027 14,248,297 Adjustments for: Amortisation of: - goodwill 7 41,658 41,658 - - - other intangible assets 8.2 13,321,712 16,874,841 - - - prepaid lease payments 4 119,136 119,136 - - Depreciation of property, plant and equipment 3.4 9,190,190 8,605,126 1,025,098 1,113,387 Goodwill written off 7 20,578 8,150 - - Derivative (gain)/loss on forward foreign exchange contracts ( 90,436) 178,283 - - Dividend income ( 151) ( 25,942) ( 3,334,231) ( 17,066,642) (Gain)/Loss on disposal of: - investment in subsidiaries - ( 242,193) - - - other investments - ( 1,378,160) - ( 1,378,160) - property, plant and equipment ( 157,940) ( 1,653,490) ( 240,456) ( 71,566) - assets classified as held for sale - 98,974 - - Gain on winding-up of subsidiaries 30(iv) - ( 8,332) - ( 98,296) Interest expenses 22 5,897,828 5,294,407 3,618,377 4,880,057 Interest income 22 ( 6,917,589) ( 8,460,152) ( 7,259,043) ( 6,723,138) Profit payments on Islamic Bonds - 2,258,927 - - Impairment loss on property, plant and equipment 3.5 2,322,585 - - - (Reversal of)/impairment loss on receivables 21 ( 222,377) 150,141-1,596,765 Property, plant and equipment written off 90,227 159,814 1,563 12,866 Unrealised foreign exchange (gain)/loss 21 ( 2,152,914) 1,451,516 864 1,423 Share of results of equity accounted associate 72,422 11,337 - - Operating profit/(loss) before changes in working capital 50,701,340 55,103,322 1,277,199 ( 3,485,007) -------------- -------------- -------------- --------------
18 Statements of cash flows for the financial year ended 31 March 2015 (continued) Group Company 2015 2014 2015 2014 Note RM RM RM RM Cash flows from operating activities (continued) Operating profit/(loss) before changes in working capital (continued) 50,701,340 55,103,322 1,277,199 ( 3,485,007) Changes in working capital: Inventories 7,021,848 ( 6,979,922) - - Property development costs ( 2,010,970) ( 69,761,505) - - Trade and other receivables, deposits and prepayments, including derivatives ( 67,284,828) 52,316,133 ( 43,971,474) ( 30,803,301) Trade and other payables, including derivatives 8,227,643 ( 565,292) ( 8,140,464) ( 9,316,252) Cash (used in)/generated from operations ( 3,344,967) 30,112,736 ( 50,834,739) ( 43,604,560) Interest paid ( 233,209) ( 119,811) ( 33,047) ( 38,168) Income tax (paid)/refunded ( 9,318,148) ( 14,208,563) 505,373 ( 2,078,094) Net cash (used in)/from operating activities ( 12,896,324) 15,784,362 ( 50,362,413) ( 45,720,822) --------------- --------------- --------------- --------------- Cash flows from investing activities Acquisition of: - a subsidiary 30 ( 1,221) ( 40,999) ( 58) ( 51,000) - property, plant and equipment [Note (i)] ( 7,199,173) ( 17,074,407) ( 326,818) ( 556,198) Net increase/(decrease) in investment in subsidiaries ( 21,911) - ( 5,411,983) 14,089,590 Increase in investment in an associate - ( 90,000) - ( 90,000) Subtotal ( 7,222,305) ( 17,205,406) ( 5,738,859) 13,392,392 --------------- --------------- --------------- ---------------
19 Statements of cash flows for the financial year ended 31 March 2015 (continued) Group Company 2015 2014 2015 2014 Note RM RM RM RM Cash flows from investing activities (continued) Subtotal (continued) ( 7,222,305) ( 17,205,406) ( 5,738,859) 13,392,392 Proceeds from disposal of: - subsidiaries 30-251,651 - - - other investments - 2,660,971-2,660,971 - property, plant and equipment 768,301 1,599,075 1,219,257 202,109 - assets held for sale - 5,000,000 - - Net proceeds from winding-up of subsidiaries - - - 458,263 Proceeds from issuance of shares to non-controlling interests 209,909 98,000 - - (Increase)/Decrease in cash and cash equivalents pledged with licenced banks ( 21,475) 463,420 - - Dividends received 151 25,942 3,334,231 14,241,245 Interest received 6,070,501 5,676,736 7,259,043 6,723,138 Net cash (used in)/from investing activities ( 194,918) ( 1,429,611) 6,073,672 37,678,118 --------------- --------------- --------------- --------------- Cash flows from financing activities Net repayments of Islamic Bonds ( 28,958,582) ( 34,611,187) - - Net repayment of other loans and borrowings ( 15,770,490) ( 9,275,726) ( 18,355,728) ( 18,016,419) Purchase of treasury shares 17.2 ( 415) ( 404) ( 415) ( 404) Interest paid ( 6,565,145) ( 7,521,656) ( 3,585,329) ( 4,841,889) Dividends paid to: - owners of the Company 26.2 ( 3,806,842) ( 5,234,415) ( 3,806,842) ( 5,234,415) - non-controlling interests - ( 4,902,300) - - Net cash used in financing activities ( 55,101,474) ( 61,545,688) ( 25,748,314) ( 28,093,127) --------------- --------------- --------------- ---------------
20 Statements of cash flows for the financial year ended 31 March 2015 (continued) Group Company 2015 2014 2015 2014 Note RM RM RM RM Net decrease in cash and equivalents ( 68,192,716) ( 47,190,937) ( 70,037,055) ( 36,135,831) Effect of exchange rate fluctuations on cash held ( 974,665) ( 274,263) - - Cash and cash equivalents at beginning of financial year 244,516,083 291,981,283 177,530,003 213,665,834 Cash and cash equivalents at end of financial year [Note (ii)] 175,348,702 244,516,083 107,492,948 177,530,003 ========= ========= ========= ========= Notes (i) Acquisition of property, plant and equipment During the financial year, the Group and the Company acquired property, plant and equipment in the following manners: Group Company 2015 2014 2015 2014 RM RM RM RM Paid using internal funds 7,199,173 17,074,407 326,818 556,198 In the form of finance lease 746,000 3,211,650 327,000 - Total (see Note 3) 7,945,173 20,286,057 653,818 556,198 ========= ========= ========= =========
21 Statements of cash flows for the financial year ended 31 March 2015 (continued) Notes (continued) (ii) Cash and cash equivalents Cash and cash equivalents included in the statements of cash flows comprise the following amounts in the statements of financial position: Group Company 2015 2014 2015 2014 RM RM RM RM Deposits placed with licensed banks with maturities less than three months 154,020,654 216,643,711 106,626,311 176,641,445 Cash in hand and at banks 21,325,175 27,703,256 866,637 888,558 Designated bank accounts 2,873 169,116 - - Total cash and cash equivalents as shown in the statements of cash flows (see Note 16) 175,348,702 244,516,083 107,492,948 177,530,003 ========= ========= ========= ========= The notes on pages 22 to 152 are an integral part of these financial statements.
22 Weida (M) Bhd. ( ) (Incorporated in Malaysia) and its subsidiaries Notes to the financial statements Weida (M) Bhd. is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad. The address of its registered office of the Company is Wisma Hock Peng, Ground Floor to 2 nd Floor, 123, Green Heights, Jalan Lapangan Terbang, 93250 Kuching, Sarawak. The consolidated financial statements of the Company as at and for the financial year ended 31 March 2015 comprise the Company and its subsidiaries (together referred to as the Group and individually referred to as Group entities ) and the Group s interest in an associate. The financial statements of the Company as at and for the financial year ended 31 March 2015 do not include other entities. The Company is principally engaged in investment holding and the provision of management services to its subsidiaries while the principal activities of the subsidiaries are as stated in Note 5 to the financial statements. These financial statements were authorised for issue by the Board of Directors on 3 July 2015. 1. Basis of preparation (a) Statement of compliance The financial statements of the Group and the Company have been prepared in accordance with Financial Reporting Standards ( FRSs ) and the requirements of the Companies Act, 1965 in Malaysia. Given that certain Group entities are transitioning entities (being entities subject to the application of IC Interpretation 15, Agreements for the Construction of Real Estate and the entity that consolidates or equity accounts or proportionately consolidates the first-mentioned entities), the Group is currently exempted from adopting the Malaysian Financial Reporting Standards ( MFRSs ) Framework until 1 April 2017 as mandated by the Malaysian Accounting Standards Board ( MASB ). As a result, the Group (including the transitioning entities) will continue to apply FRS as their financial reporting framework to prepare their financial statements for annual periods ending on 31 March 2016 and 31 March 2017.
23 1. Basis of preparation (continued) (a) Statement of compliance (continued) The following are accounting standards, amendments and interpretations of the FRS framework that have been issued by the MASB but are not yet effective nor early adopted by the Group and the Company: FRS/Amendment/Interpretation Effective date Amendments to FRS 1, First-time Adoption of Financial Reporting Standards (Annual Improvements 2011-2013 Cycle) 1 July 2014 Amendments to FRS 2, Share-based Payment (Annual Improvements 2010-2012 Cycle) 1 July 2014 Amendments to FRS 3, Business Combinations (Annual Improvements 2010-2012 Cycle and 2011-2013 Cycle) 1 July 2014 Amendments to FRS 8, Operating Segments (Annual Improvements 2010-2012 Cycle) 1 July 2014 Amendments to FRS 13, Fair Value Measurement (Annual Improvements 2010-2012 Cycle and 2011-2013 Cycle) 1 July 2014 Amendments to FRS 116, Property, Plant and Equipment (Annual Improvements 2010-2012 Cycle) 1 July 2014 Amendments to FRS 119, Employee Benefits - Defined Benefit Plans: Employee Contributions 1 July 2014 Amendments to FRS 124, Related Party Disclosures (Annual Improvements 2010-2012 Cycle) 1 July 2014 Amendments to FRS 138, Intangible Assets (Annual Improvements 2010-2012 Cycle) 1 July 2014 Amendments to FRS 140, Investment Property (Annual Improvements 2011-2013 Cycle) 1 July 2014 Amendments to FRS 5, Non-current Assets Held for Sale and Discontinued Operations (Annual Improvements 2012-2014 Cycle) 1 January 2016 Amendments to FRS 7, Financial Instruments: Disclosures (Annual Improvements 2012-2014 Cycle) 1 January 2016 Amendments to FRS 10, Consolidated Financial Statements and FRS 128, Investments in Associates and Joint Ventures - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 1 January 2016
24 1. Basis of preparation (continued) (a) Statement of compliance (continued) FRS/Amendment/Interpretation Effective date Amendments to FRS 10, Consolidated Financial Statements, FRS 12, Disclosure of Interests in Other Entities and FRS 128, Investments in Associates and Joint Ventures - Investment Entities: Applying the Consolidation Exception 1 January 2016 Amendments to FRS 11, Joints Arrangements - Accounting for Acquisitions of Interests in Joint Operations 1 January 2016 FRS 14, Regulatory Deferral Accounts 1 January 2016 Amendments to FRS 101, Presentation of Financial Statements-Disclosure Initiative 1 January 2016 Amendments to FRS 116, Property, Plant and Equipment and FRS 138, Intangible Assets - Clarification of Acceptable Methods of Depreciation and Amortisation 1 January 2016 Amendments to FRS 119, Employee Benefits (Annual Improvements 2012-2014 Cycle) 1 January 2016 Amendments to FRS 127, Separate Financial Statements - Equity Method in Separate Financial Statements 1 January 2016 Amendments to FRS 134, Interim Financial Reporting (Annual Improvements 2012-2014 Cycle) 1 January 2016 The Group and the Company plan to apply: from the annual period beginning on 1 April 2015 for those accounting standards, amendments or interpretations that are effective for annual period beginning on or after 1 July 2014, except for Amendments to FRS 2, Amendments to FRS 1, Amendments to FRS 119 and Amendments to FRS 140 which are assessed as presently not applicable to the Group and the Company. from the annual period beginning on 1 April 2016 for those accounting standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January 2016, except for Amendments to FRS 5, Amendments to FRS 11, FRS 14 and Amendments to FRS 119, which are assessed as presently not applicable to the Group and the Company. The initial application of the above mentioned accounting standards, amendments or interpretations are not expected to have any material impacts for the current and prior period of the financial statements of the Group and the Company.
25 1. Basis of preparation (continued) (a) Statement of compliance (continued) Migration to new accounting framework The Group s and the Company s financial statements for annual period beginning on 1 April 2017 will be prepared in accordance with the MFRSs issued by the MASB and International Financial Reporting Standards. The Group and the Company will apply the following MFRSs that are not yet effective: MFRS/Amendment/Interpretation Effective date MFRS 15, Revenue from Contracts with Customers 1 January 2017 MFRS 9, Financial Instruments (2014) 1 January 2018 Amendments to MFRS 7, Financial Instruments: Disclosure- Mandatory Effective Date of MFRS 9 and Transition Disclosures 1 January 2018 Material impacts of the initial application of the above accounting standards, which are or are likely to be applicable to the Group and which are to be applied retrospectively, are discussed below: (i) MFRS 15, Revenue from Contracts with Customers MFRS 15 replaces the guidance in MFRS 111, Construction Contracts, MFRS 118, Revenue, IC Interpretation 13, Customer Loyalty Programmes, IC Interpretation 15, Agreements for Construction of Real Estate, IC Interpretation 18, Transfers of Assets from Customers and IC Interpretation 131, Revenue - Barter Transactions Involving Advertising Services. The adoption of MFRS 15 will result in a change in accounting policy. The Group is currently assessing the financial impact that may arise from the adoption of MFRS 15. (ii) MFRS 9, Financial Instruments MFRS 9 replaces the guidance in MFRS 139, Financial Instruments: Recognition and Measurement on the classification and measurement of financial assets and financial liabilities, and on hedge accounting. The adoption of MFRS 9 will result in a change in accounting policy. The Group is currently assessing the financial impact that may arise from the adoption of MFRS 9.
26 1. Basis of preparation (continued) (b) Basis of measurement The financial statements have been prepared on the historical cost basis, other than as disclosed in Note 2. (c) Functional and presentation currency These financial statements are presented in Ringgit Malaysia (RM), which is the Company s functional currency. (d) Use of estimates and judgements The preparation of the financial statements in conformity with FRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected thereby. There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant effect on the amounts recognised in the financial statements other than those disclosed in the following notes: Note 3.5, impairment assessment of property, plant and equipment; Note 7, impairment testing for cash-generating units containing goodwill; Note 8, impairment assessment of other intangible assets; Note 9.4, assessment of impairment loss on receivables; Note 11, recognition of deferred tax assets; Note 19.4, estimation of land owners entitlement; and Recognition of profit from construction contracts and installation works, as follows: (i) Profit recognition from installation and construction of waste-water and water treatment systems The Group recognises contract revenue and contract costs from the installation and construction of wastewater and water treatment specialised systems in profit or loss in proportion to the stage of completion of the transactions, measured by reference to survey of work performed.
27 1. Basis of preparation (continued) (d) Use of estimates and judgements (continued) (ii) Profit recognition from telecommunication towers contracts The Group recognises contract revenue and contract costs from the construction of telecommunication towers in profit or loss using the stage of completion method, determined by reference to the physical proportion of the contract work completed. Significant judgement is required in determining the stage of completion of installation/construction contracts, accrual of costs incurred for which claims/billings have yet to be received, estimated total contract revenue and contract costs as well as the recoverability of the carrying amount of contract work-in-progress. The total contract revenue also includes an estimation of variations that are recoverable from contract customers. In making such estimations and judgements, the Group relies on, inter alia, past experiences and the assessment of its experienced project teams. (iii) Profit recognition from property developments The Group recognises property development revenue and costs in profit or loss using the stage of completion method. The stage of completion of properties sold is determined by reference to the proportion that property development costs incurred for work performed to-date bear to the estimated total property development costs. Significant judgement is required in determining the stage of completion of the development activities, extent of property development costs incurred, estimated total property development revenue and costs as well as recoverability of the development projects. In making such judgements, the Group relies, inter alia, on past experiences and the assessment of its experienced project team.
28 2. Significant accounting policies The following are the significant accounting policies of the Group and of the Company which have been consistently applied by the Group entities to the periods presented in these financial statements, unless otherwise stated. (a) Basis of consolidation (i) Subsidiaries Subsidiaries are entities, including structured entities, controlled by the Company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Potential voting rights are considered when assessing control only when such rights are substantive. The Group also considers it has de facto power over an investee when, despite not having the majority of voting rights, it has the current ability to direct the activities of the investee that significantly affect the investee s return. Investments in subsidiaries are measured in the Company s statement of financial position at cost less any impairment losses, unless the investment is classified as held for sale or distribution. The cost of investments includes transaction costs. (ii) Business combinations Business combinations are accounted for using the acquisition method from the acquisition date, which is the date on which control is transferred to the Group. For new acquisitions, the Group measures the cost of goodwill at the acquisition date as: the fair value of the consideration transferred; plus the recognised amount of any non-controlling interests in the acquiree; plus if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree; less the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
29 2. Significant accounting policies (continued) (a) Basis of consolidation (continued) (ii) Business combinations (continued) When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss. For each business combination, the Group elects whether it measures the non-controlling interests in the acquiree either at fair value or at the proportionate share of the acquiree s identifiable net assets at the acquisition date. Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred. (iii) Acquisitions of non-controlling interests The Group accounts for all changes in its ownership interest in a subsidiary that do not result in a loss of control as equity transactions between the Group and its non-controlling interest holders. Any difference between the Group s share of net assets before and after the change, and any consideration received or paid, is adjusted to or against Group reserves. (iv) Acquisitions from entities under common controls Business combinations arising from transfers of interests in entities that are under the control of the shareholder that controls the Group are accounted for as if the acquisition had occurred at the beginning of the earliest comparative period presented or, if later, at the date that common control was established; for this purpose, comparatives are restated. The assets and liabilities acquired are recognised at the carrying amounts recognised previously in the Group controlling shareholder s consolidated financial statements. The components of equity of the acquired entities are added to the same components within Group equity and any resulting gain/loss is recognised directly in equity.
30 2. Significant accounting policies (continued) (a) Basis of consolidation (continued) (v) Loss of control Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities of the former subsidiary, any non-controlling interests and the other components of equity related to the former subsidiary from the consolidated statement of financial position. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the former subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity-accounted investee or as an available-for-sale financial asset depending on the level of influence retained. (vi) Associates Associates are entities, including unincorporated entities, in which the Group has significant influence, but not control, over the financial and operating policies. Investments in associates are accounted for in the consolidated financial statements using the equity method less any impairment losses, unless it is classified as held for sale or distribution. The cost of the investment includes transaction costs. The consolidated financial statements include the Group s share of the profit or loss and other comprehensive income of the associates, after adjustments if any, to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. When the Group s share of losses exceeds its interest in an associate, the carrying amount of that interest including any long-term investments is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the associate. When the Group ceases to have significant influence over an associate, any retained interest in the former associate at the date when significant influence is lost is measured at fair value and this amount is regarded as the initial carrying amount of a financial asset. The difference between the fair value of any retained interest plus proceeds from the interest disposed of and the carrying amount of the investment at the date when equity method is discontinued is recognised in profit or loss.
31 2. Significant accounting policies (continued) (a) Basis of consolidation (continued) (vi) Associates (continued) When the Group s interest in an associate decreases but does not result in a loss of significant influence, any retained interest is not remeasured. Any gain or loss arising from the decrease in interest is recognised in profit or loss. Any gains or losses previously recognised in other comprehensive income are also reclassified proportionately to profit or loss if that gain or loss would be required to be reclassified to profit or loss on the disposal of the related assets or liabilities. Investments in associates are measured in the Company s statement of financial position at cost less any impairment losses, unless the investment is classified as held for sale or distribution. The cost of the investment includes transaction costs. (vii) Non-controlling interest Non-controlling interests at the end of the reporting period, being the equity in a subsidiary not attributable directly or indirectly to the equity holders of the Company, are presented in the consolidated statement of financial position and statement of changes in equity within equity, separately from equity attributable to the owners of the Company. Non-controlling interests in the results of the Group is presented in the consolidated statement of profit or loss and other comprehensive income as an allocation of the profit or loss and the comprehensive income for the year between non-controlling interests and owners of the Company. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance. (viii) Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.
32 2. Significant accounting policies (continued) (b) Foreign currency (i) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at the exchange rates at the transaction dates. Monetary assets and liabilities denominated in foreign currencies at the end of a reporting period (reporting date) are retranslated to the functional currency at the exchange rates at that date. Non-monetary assets and liabilities denominated in foreign currencies are not retranslated at the reporting date, except for those measured at fair values which are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences arising from the retranslation of available-for-sale equity instruments or a financial instrument designated as a hedge of currency risk, which are recognised in other comprehensive income. In the consolidated financial statements, when settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income, and are presented in the foreign currency translation reserve ( FCTR ) within equity. (ii) Operations denominated in functional currencies other than Ringgit Malaysia ( RM ) The assets and liabilities of operations denominated in functional currencies other than RM, including goodwill and fair value adjustments arising on acquisition, are translated to RM at exchange rates at the end of the reporting period. The income and expenses of foreign operations are translated to RM at exchange rates at the dates of the transactions.