Source - RNS
RNS Number : 3963I
Inch Kenneth Kajang Rubber
30 August 2016
 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

 

UNAUDITED CONDENSED CONSOLIDATED

STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED 30 JUNE 2016

 

 


Current Year Quarter


Preceding Year Corresponding Quarter

Current Year

 To date

Preceding Year Corresponding Period


31.06.2016


30.06.2015

31.06.2016

30.06.2015


RM'000

RM'000

RM'000

RM'000






Group revenue

3,202


4,422


5,017


6,284











Operating expenses

(5,801)


(6,687)


(11,547)


(12,067)











Other operating income and expenses

306

 

 

128


147


(716)









Operating loss

(2,293)


(2,137)


(6,383)


(6,499)











Finance income

 

1,041


994


2,130


1,906


Finance cost

 

(50)


-


(64)


-


Realised gain on redemption of short term investments

 

(1,341)


 

30


 

(1,329)


 

75











Share of results of associate

93


1,054


(659)


1,760




















Loss before tax

(2,550)


(59)


(6,305)


(2,758)











Taxation (note 13)

-


        (46)  


-


(46)











Net Loss

(2,550)


(105)


(6,305)


(2,804)











 

Earnings/(Loss) Per Share:









Basic and diluted (sen)

(0.63)


(0.03)


(1.56)


(0.70)

 

 

 

Exchange Rate as at 30 June 2016: 

£1      = RM5.3910

1RM  = £ 0.1855

 

(The condensed consolidated statement of profit or loss should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2015 and the accompanying explanatory notes attached to the interim financial statements)



INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

 

UNAUDITED CONDENSED CONSOLIDATED

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2016

 

 

 


Current Year Quarter


Preceding Year Corresponding Quarter

Current Year

 To date

Preceding Year Corresponding Period


31.06.2016


30.06.2015

31.06.2016

30.06.2015


RM'000

RM'000

RM'000

RM'000






Net loss for the period

(2,550)


(105)


(6,305)


(2,804)

 









 

Other comprehensive (loss)/income :








 

Revaluation of available-for-sale investments

     and short term investments

 

381


 

381


 

381


 

839

 

Reclassification adjustments on

     short term investments

 

-


 

-


 

-


 

-

 

Revaluation of freehold lands

-


-


-


-

 

Exchange differences on translating foreign operations

 

69


 

67


 

99


 

1,246

 









 

Total comprehensive (loss)/income for the period

 

(2,100)


 

343


 

(5,825)


 

(719)

 









 









 








 





 

 

 

 

 

(The condensed consolidated statement of comprehensive income should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2015 and the accompanying explanatory notes attached to the interim financial statements)



INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

 

                UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

 



31.06.2016

31.12.2015


Notes

RM'000

RM'000



(Unaudited)

(Audited)

ASSETS




Non-current assets




  Property, plant & equipment

16

463,939


462,381


 

  Intangible assets  

17

91


35


 

  Investment properties

18

70


71


 

  Investment in associated undertaking

20

24,081


24,740


 

  Goodwill on consolidation

21

71


71


 

  Available-for-sale investments

22

75


84


 



488,327


487,382


 

Current assets






 

  Inventories


1,185


1,555


 

  Trade and other receivables


89,628


93,820


 

  Short term investments

23

102,539


110,422


 

  Cash and cash equivalents

24

28,925


26,755


 



222,277


232,552


 







 

TOTAL ASSETS


710,604


719,934


 







 

EQUITY AND LIABILITIES






 

Equity attributable to shareholders of the Company






 

  Share capital


287,343


287,343


 

  Share premium


8


8


 

  Property revaluation reserve


228,085


228,085


 

  Investment revaluation reserve


15,603


15,222


 

  Foreign currency translation reserve


(92)


(190)


 

  Retained earnings


114,653


123,821


 



645,600


654,289


 







 

Less : Treasury shares

25

(15,980)


(15,980)


 







 

TOTAL EQUITY


629,620


638,309


 







 

Current liabilities






 

  Trade and other payables


4,902


5,507


 

  Taxation payable


39


75


 



4,941


5,582


 

Non-current liabilities






 

  Employee entitlements


15



 

  Deferred tax liabilities


76,028


76,028


 



76,043


76,043


 







 

TOTAL LIABILITIES


80,984


81,625


 







 

TOTAL EQUITY AND LIABILITIES


710,604


719,934


 







 

Net assets per share

 


1.56


1.58


 

(The condensed consolidated statement of financial position should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2015 and the accompanying explanatory notes attached to the interim financial statements)

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2016

 


Share

Share

Property

Investment

Foreign

Retained

Treasury

Total


Capital

Premium

Revaluation

Revaluation

Exchange

Earnings 

Shares

Equity




Reserve

Reserve

Reserve





RM'000

RM'000

RM'000

RM'000

RM'000

RM'000

RM'000

RM'000










6 Months ended 30 June 2016

















At 1 January 2016

287,343

8

228,085

15,222

(191)

128,821

(15,980)

638,309










Loss for the period

-

-

-

-

-

(6,305)

-

(6,305)










Other comprehensive

(loss)/income:









Revaluation of freehold lands

-

-

-

-

-

-

-

-

Revaluation of investments

-

-

-

381

-

-

-

381

Foreign currency translation

-

-

-

-

99

-

-

99

Total comprehensive

(loss)/income

-

-

-

381

99

(6,305)

 

-

(5,825)










Other movements:









Dividends paid






(4,677)


(4,677)










At 30 June 2016

287,343

8

228,085

15,603

(92)

114,653

(15,980)

629,620










6 Months ended 30 June 2015

















At 1 January 2015

287,343

8

287,371

12,312

(1,303)

133,043

(15,980)

702,794










Loss for the period

-

-

-

-

-

(2,804)

-

(2,804)










Other comprehensive

income/(loss):









Revaluation of freehold lands

-

-

-

-

-

-

-

-

Reclassification adjustments

     on redemption of short

     term investments

-

-

-

-

-

-

-

-

Revaluation of investments

-

-

-

839

-

-

-

839

Foreign currency translation

-

-

-

-

996

250

-

1,246

Total comprehensive

(loss)/income

-

-

-

839

996

(2,554)

 

-

(719)










Other movements:









Dividends paid

-

-

-

-

-

(4,395)

-

(4,395)










At 30 June 2015

287,343

8

287,371

13,151

(307)

126,094

(15,980)

697,680

 

 (The condensed consolidated statement of changes in equity should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2015 and the accompanying explanatory notes attached to the interim financial statements)

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

 

UNAUDITED CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2016

 


6 months ended


30.06.2016

30.06.2015

 


RM'000

RM'000

 

Cash flows from operating activities



 

Group operating loss   

(6,383)


(6,499)


 






 

Adjustments for :





 

Dividend income

-


-


 

Fixed assets written off

-


6


 

Depreciation and amortisation

1,432


926


 

Operating loss before changes in working capital

(4,951)


(5,567)


 






 

Changes in working capital:





 

Decrease in inventories

370


2,454


 

Increase/(decrease) in trade and other receivables

4,192


(8,560)


 

Increase/(decrease) in trade and other payables

 

(605)


371


 

Tax paid

(55)


(134)


 

Net cash used in operating activities

(1,049)


(11,436)


 






 

Investing activities





 

  Proceeds from disposal of investment

-


-


 

  Interest and dividends received

2,130


1,906


 

  Short term investments

7,883


5,905


 

  Assets under construction

(1,708)


(3,172)


 

  Payments to acquire intangible assets

(56)


(28)


 

  Payment to acquire property, plant and equipment

(353)


(396)


 

Net cash generated from investing activities

7,896


4,215


 






 

Financing activities





 

  Dividend paid

(4,677)


(4,395)


 

Net cash used in financing activities

(4,677)


(4,395)


 






 

Increase/(decrease) in cash and cash equivalents

2,170


(11,616)


 






 

Cash and cash equivalents at 1 January

26,755


43,738


 






 

Cash and cash equivalents at 31 March

28,925


32,122


 

 

Cash and cash equivalents comprise of :





Cash and bank balances

5,868


8,076


Short term deposits

23,057


24,046



28,925


32,122


 

 (The condensed consolidated cash flow statements should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2015 and the accompanying explanatory notes attached to the interim financial statements)

 

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED CONDENSED FINANCIAL INFORMATION

FOR THE PERIOD ENDED 30 JUNE 2016

 

1.             Basis of preparation and accounting policies

 

1.1           Reporting entity

 

Inch Kenneth Kajang Rubber Public Limited Company ("the Company") is a company incorporated in Scotland with its registered office at 7 Castle Street, Edinburgh EH2 3AP, Scotland. The principal operating office is at 22nd Floor Menara Promet (KH), Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia. All of the operations of the Company and its subsidiaries are located in Malaysia and Thailand.

 

The consolidated unaudited financial information of the Company as at 31 June 2016 includes the Company, its subsidiaries and its interest in an associated undertaking (together referred to as the "Group").

 

1.2           Basis of preparation

 

The unaudited financial information has been prepared on a going concern basis and in accordance with IAS34 Interim Financial Reporting. The financial information has been prepared under the historical cost convention except for the fair value measurement of available-for-sale investments and freehold estate lands. The financial information is also presented to comply in all material respects of the requirement of the Malaysian FRS 134 Interim Financial Reporting and Chapter 9 of the Bursa Malaysia Listing Requirements.

 

The unaudited quarterly consolidated financial information to 31 June 2016 included in this Announcement has been prepared by applying accounting policies consistent with those used in the preparation of the most recent audited financial statements of the Group, being for the year ended 31 December 2015. The consolidated financial statements of the Group for the year ended 31 December 2015 are available at Company website, Bursa Malaysia website, the Company's registered office in Scotland and its operating office in Malaysia.

 

1.3          Changes in accounting policies

 

On 19 November 2011, the Malaysian Accounting Standards Board ("MASB") issued a new MASB approved accounting framework, the Malaysian Financial Reporting Standards ("MFRS Framework"). The MFRS Framework is to be applied by all Entities Other Than Private Entities for annual periods beginning on or after 1 January 2012, with the exception of entities that are within the scope of MFRS 141 "Agriculture" and/or IC Interpretation 15 "Agreements for Construction of Real Estate", including their parent, significant investor and venturer (herein called "Transitioning Entities").

 

Based on the MASB announcement on 2 September 2014, adoption of the MFRS Framework by Transitioning Entities will only be mandatory for annual periods beginning on or after 1 January 2017.    

 

The subsidiaries within the Group fall within the scope definition of Transitioning Entities and have opted to defer adoption of the new MFRS Framework. However the Group financial statements will continue to be prepared using the IFRS Framework for the financial statements for the year ending 31 December 2017. The subsidiaries expect to be in a position to fully comply with these requirements for the financial year ending 31 December 2017.

 

The Group foresees that there will be no material impact on the financial statements as the real estate business would only be operational after 2016 and the current oil palm plantation has already exceeded its normal economic lifespan.

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

FOR THE PERIOD ENDED 30 JUNE 2016

 

1.             Basis of preparation and accounting policies (continued)

 

1.4          Non-statutory accounts

 

The financial information contained in this report does not constitute full statutory accounts within the meaning of Section 434 of the United Kingdom's Companies Act 2006.

 

1.5          Independent auditors' report of preceding financial year ended 31 December 2015

 

There was no qualification made on the preceding audited financial statements for the year ended 31 December 2015, further it did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006 and did not include reference to any matters to which the auditor drew attention by way of emphasis.

 

1.6          Approval by Board of Directors

 

This consolidated interim financial information was approved by the Board of Directors on 23 August 2016.

 

2.             Review of performance

 

The Group's turnover was RM5.017 million for the second quarter ended 30 June 2016 as compared to RM6.284 million for the corresponding second quarter in the preceding year. The decrease in Group turnover by RM1.3 million is mainly due to the lower market price of CV (constant viscosity) rubber blocks produced by the subsidiary in Thailand. The tourism division however improved their revenue by RM0.5 million during this financial period under review.

 

The revenue of the associate company, Concrete Engineering Products Berhad ("CEPCO") for the  6 months ended 30 June 2016 reduced to RM81.39 million (IKKR's share: RM18.23 million) compared to RM122.06 million (IKKR's share: RM27.34 million) in the preceding year, a decrease of RM9.11 million in respect of IKKR's share. The decreased sales volume is mainly due to lower deliveries arising from the deferment of certain projects.

 

The Group's loss before tax for the second quarter ended 30 June 2016 was RM6.305 million as compared to a loss of RM2.804 million for the corresponding second quarter ended 30 June 2015. The loss incurred was mainly due to the reduction in revenue derived from the manufacturing division and the share of loss from Cepco, as compared to the share of profit last year.

 

3.             Comparison with preceding quarter

 

The Group recorded a pre-tax loss of RM2.55 million for the current quarter under review compared to a pre-tax loss of RM3.755 million in the preceding quarter ended 31 March 2016. The loss incurred in the 1st quarter ended 31 March 2016 was mainly due to the loss incurred at the tourism division as the resort was only in full operations by second half of February 2016.

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

FOR THE PERIOD ENDED 30 JUNE 2016

 

4.             Commentary on prospects 

 

We have undertaken a very thorough planning process for the proposed property development project in Kajang, as we have to ensure that the development project will be a success, not only for the Company but also for the town of Kajang. Except for the approval of certain authorities, we are ready to submit the Planning Approval to Majlis Perbandaran Kajang by 4th Quarter this year. We however do not expect to see the returns during the current financial year.

 

After the refurbishment at our resort, we can see higher revenue generated from our tourism sector, and we expect that our manufacturing sector will at least be at a breakeven level as rubber prices have not been fluctuating aggressively as before. Our associate company, CEPCO, is expected to be about the same as last year due to the overall slowdown in the construction sector. With that scenario in place, the Board therefore anticipates a better performance by the Group for this financial year.

 

5.             Comparison with profit forecasts

               

                As the Group does not issue profit forecasts, no comparison can be made.

 

6.             Changes in composition of the Group

 

                There were no changes in the composition of the Group during the financial period under review.

 

7.             Status of corporate proposals

 

There are no corporate proposals that have been announced but not completed as at the date of this announcement.

 

8.             Realised and Unrealised Profits

 

The breakdown of retained profits of the Group as at 30 June 2016, pursuant to the format prescribed by Bursa, is as follows:


   As at


As at


30 June 2016


31 Dec 2015

 

 

   RM'000


RM'000

Total Retained Profits of the Company and its subsidiaries:

 - Realised

124,583


133,187

 - Unrealised

185


90

 

 

124,768


133,277

Total share of Retained Profits/(Losses) from CEPCO:

 - Realised

-


-

 - Unrealised

(2,808)


(2,149)


(2,808)


(2,149)

Less : Consolidation effects 

(7,307)


(7,307)

Total Group Retained Profit

114,653

 

123,821





 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                                       FOR THE PERIOD ENDED 30 JUNE 2016

 

9.             Seasonal or cyclical factors

 

The performance of the Group was not subject to any material seasonal or cyclical fluctuations. There is however some seasonality fluctuation in the manufacturing and tourism sector.

 

10.           Material changes in estimates

 

There were no material changes in accounting estimates of amounts, reported in prior interim periods of the current financial year or in prior financial year, that have a material effect in the current quarter.

 

11.           Segmental reporting

 

Segmental reporting for the period ended 30 June 2016 is as follows:

 


Plantation

Tourism

Manufacturing

Others

Total


RM'000

RM'000

RM'000

RM'000

RM'000

Revenue






From external customers

161

3,767

1,018

71

5,017

 

Segment revenues

 

161

 

3,767

 

1,018

 

71

 

5,017







Finance income

-

38

-

2,092

2,130

Share of profit of CEPCO

-

-

-

(659)

(659)

Realised gain on redemption of short term investment

-

12

 

-

(1,341)

(1,329)

Depreciation and amortisation

(15)

(334)

(429)

(31)

(809)

Other expenses

(138)

(3,313)

(1,499)

(5,705)

(10,655)

Segment profit/(loss)

8

170

(910)

(5,099)

(6,305)







Segment assets

115,032

29,774

5,099

560,700

710,605







Segment liabilities

1,441

2,416

24

77,103

80,984







Other disclosures

Investment in CEPCO

-

-

-

24,081

24,081

Capital expenditure

     Tangible

     Assets under construction

     Intangible

 

 

-

382

-

 

1,791

1,326

63

 

-

-

-

 

31

-

-

 

1,822

1,708

63

(As at 30 June 2016, the revenue of our associate company, Cepco is RM81.388 million for the 6 months ended 30 June 2016 (IKKR's share: RM18.231 million)

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                                       FOR THE PERIOD ENDED 30 JUNE 2016

 

12.           Impairment in value of subsidiaries and associate

 

There are no impairment to be incurred in investment in subsidiaries and associate during the financial period ended 30 June 2016.

 

13.           Taxation


Current


Cumulative


Quarter Ended


Year To-Date


30 June 2016


30 June 2016


RM'000


RM'000







Corporation taxation - credit/(charge)

-



-


 

Other than the subsidiary in Thailand which is a tax resident there, the Company and the Group are tax resident in Malaysia. The Group is liable to corporation tax in Malaysia and Thailand but is not subject to United Kingdom corporation tax.

 

The effective tax rate on the Group's loss is higher than the statutory tax rate substantially due to the non-taxability of losses due to impairment in investments and stocks.

 

14.           Loss per share

 

The basic and diluted loss per share for the current quarter and cumulative year to-date have been computed based on Group's loss for the financial current quarter/cumulative year to-date divided by the weighted average number of ordinary shares of £0.10 each in issue after adjusting for movements in treasury shares during the financial current quarter/cumulative year to-date. The Company does not have any outstanding share options or other potentially dilutive financial instruments currently in issue.

 





Current Quarter


Cumulative Year To-date






Ended




Ended






30 June 2016


30 June 2015


30 June 2016


30 June 2015












Net loss attributable to the owners of the Company (RM'000)

(2,550)


(105)


(6,305)


(2,804)












Weighted average number of ordinary shares in issue after adjusting for movements in treasury shares (No. of Shares ('000))

403,209


403,209


403,209


403,209












Basic and diluted loss per share (Sen)

(0.63)


(0.03)


(1.56)


(0.70)

 

 

 

 



INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                                       FOR THE PERIOD ENDED 30 JUNE 2016

 

15.           Dividends proposed and paid

 

            Detail of the interim dividend proposed and paid by the Board of Directors are as follows:

           

            Interim dividend for financial year ended                                                        31 December 2015                                Approved and declared on                                                                                           28 April 2016

                Date paid                                                                                                               30 May 2016

Number of ordinary shares on which dividends were paid ('000)                403,209.2

Dividend per share (single-tier)                                                                         £0.002 (RM0.0116)

Net dividend paid (RM'000)                                                                               4,677

 

16.           Property, plant & equipment


Freehold

Prepaid Land and Land

Buildings

Assets

under

Others

Total


Lands

Improvements


Construction




RM'000

RM'000

RM'000

RM'000

RM'000

RM'000

Cost







At 1 January 2016

449,623

3,639

21,518

4,729

9.772

489,281

Additions

-

-

1,822

1,708

311

3,841

Disposal

-

-

-

-

-

-

Exchange differences

-

-

-

-

-

-

At 31 March 2016

449,623

3,639

23,340

6,437

10,083

493,122








Accumulated depreciation







At 1 January 2016

-

1,216

17,639

-

8,045

26,900

Charge for period

-

20

575

-

837

1,432

On disposal

-

-

-

-

-

-

Exchange differences

-

38

193

-

620

851

At 31 March 2016

-

1,274

18,407

-

9,502

29,183








Net book value







At 31 March 2016

449,623

2,365

4,933

6,437

581

463,939

 

At 31 December 2015

449,623

 

2,423

3,879

 

4,729

1,727

462,381

               

17.           Intangible assets

 

Computer software and corporate website creation






 

Group and Company



 

30 June 2016

 

30 June 2015





RM'000

RM'000

Cost






At 1 January




106

75

Additions




63

31

Disposals




-

-

Total 




169

106

 

Accumulated depreciation





At 1 January




71

55

Charge for period




7

16

On disposals




-

-

Total 




78

71

Net book value




91

35

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                                 FOR THE PERIOD ENDED 30 JUNE 2016

 

18.           Investment Property

 

 

Group




 

30 June 2016

 

31 Dec 2015





RM'000

RM'000

Cost






At 1 January




100

100

Transfer from property, plant & equipment




-

-







Total 




100

100

 

Accumulated depreciation






At 1 January




29

28

Charge for the year




1

1







Total 




30

29

 

Net book value

Total

 

 



70

71

 

 

Included in investment property is apartment at Amber Tower Seri Mas Condominium, Cheras, Kuala Lumpur.

 

The investment property is valued at cost less accumulated depreciation. The fair value of the investment property is estimated at RM0.3 million.

 

19.           Carrying amount of property, plant and equipment

 

Fair value measurement of the Group's and Company's freehold lands

 

The Group's freehold lands are stated at their revalued amounts, being the fair value at the date of revaluation. In order to establish the 31 December 2015 valuation of the Group's freehold lands, valuations were obtained.

 

·      On 18 January 2016 by Nilai Properties Consultants Sdn Bhd (V(1) 0065), an independent valuer not related to the Group, using the open market basis method. The total valuation of the land in Kajang and Bangi at 31 December 2015 was at RM431.5 million. The Group's lands are currently being used for the Group's plantation activities for growing of oil palm fresh fruit bunches. The Group has been given consent for the change of use of the lands. Further commentary on the Group's plans for its land is included in the Chairman's Statement.

 

There is no indication of any significant difference between the carrying amount and market values of land and buildings shown above at 31 December 2015 except freehold lands which are held under Inch Kenneth Kajang Rubber Public Limited Company, Inch Kenneth Development (M) Sdn Bhd and Motel Desa Sdn Bhd. The historical cost of the above freehold lands of the Group is RM107.242 million and of the Company is RM0.407 million. There are no restrictions on the title of the Group's property, plant and equipment.

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                                 FOR THE PERIOD ENDED 30 JUNE 2016

 

19.           Carrying amount of property, plant and equipment (continued)

 

The fair values of all the freehold lands of the Group and Company are classified as Level 2. There were no transfers between Levels 1 and 2 during current quarter under review.

 

Based on IFRS 13, a three-level fair value hierarchy as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

Level 3: Inputs for the assets or liabilities that are not based on observable market date (unobservable inputs). 

 

Assets under construction

This represents 22 units of low cost terrace houses under construction at Dunedin estate, Mukim of Semenyih. The total contract sum is approximate RM4 million. The construction is expected to be completed in second half of year 2016.

 

20.           Investment in associated undertaking

 

The Group's investment in associated undertaking represents a 22.40% interest in Concrete Engineering Products Berhad ("CEPCO"), a public company incorporated in Malaysia. The principal activity of CEPCO is the manufacture and distribution of prestressed spun concrete piles and poles. The Group's investment in CEPCO is accounted for under the equity accounting method as follows:


 

30 June 2016

 


RM'000

 

Shares


 

At 1 January 2016 and 30 June 2016

40,914

 



 

Share of retained profits


 

At 1 January 2016

15,441

 

Share of profit for 2016

(659)

 

At 30 June 2016

14,782

 



 

Share of dividend


At 1 January 2016

(1,104)

Share of dividend 2016

-

At 30 June 2016

(1,104)

 

Impairment of goodwill


At 1 January 2016

(30,511)

Impairment 2016

-

At 30 June 2016

(30,511)



Net book value


At 30 June 2016

24,081

At 31 December 2015

24,740

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                     FOR THE PERIOD ENDED 30 JUNE 2016

 

20.           Investment in associated undertaking (continued)

 

The Group's share of the net assets of CEPCO as at 30 June 2016 comprised:

 



 

30 June 2016

 


   RM'000

 

 

Share of assets


 

Share of non-current assets

19,267

 

Share of current assets

30,886

 


50,153

 

Share of liabilities


 

Share of non-current liabilities

(1,266)

 

Share of current liabilities

(23,299)

 


(24,565)

 



 

Share of net assets

25,588

 

Goodwill (net of impairment) arising on the acquisition of CEPCO

(1,507)

 



 

Carrying value of CEPCO

24,081

 

 

 

The Group's share of the results of CEPCO for the financial period ended 30 June 2016 was as follows:


 

30 June 2016


   RM'000

 

Share of revenue

18,231



Share of operating profit

315

Share of finance costs

(413)

Share of taxation 

(561)



 

Share of profit for the financial period - included in Group statement of profit or loss

 

(659)

 

 

 

 INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                     FOR THE PERIOD ENDED 30 JUNE 2016

 

21.           Goodwill on consolidation


30 June 2016


31 Dec 2015


RM'000


RM'000

At cost

 

 




At 1 January

4,573


4,573

 

Arising from acquisition of new subsidiary

-


-

 





 

Total

4,573


4,573

 

 

  Accumulated impairment

 

At 1 January

(,4,502)


(4,502)

Impairment losses

-


-





Total

(4,502)


(4,502)

 

Carrying amount at end of the financial period

71


71

 

22.           Available-for-sale investments


30 June 2016


31 Dec 2015

Quoted shares:

RM'000


RM'000





Balance at 1 January

84


57

Disposal of investments

-


-

Fair value adjustments

(9)


27





Balance at fair values

75


84

 

23.           Short term investments


31 Mar 2016


31 Dec 2015


RM'000


RM'000

Investments on unit trusts with:

 




Licensed investment banks

102,539


110,422

 

 

Unquoted unit trusts are measured at mark to market based on the net asset value at each reporting date. The time weighted rate of return of these investments at the reporting date were between 2.50% and 3.41% (2015: 1.76% to 3.47%).

 

 

  

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                       FOR THE PERIOD ENDED 30 JUNE 2016

 

 

24.           Cash and cash equivalents


30 June 2016


31 Dec 2015


RM'000


RM'000





Cash at bank

4,610


2,763

Cash in hand

93


66

Deposits with Licensed banks

23,086


22,683

Investments Licensed banks

1,136


1,243





Total

28,925


26,755

 

The effective interest rates of deposits at the reporting date were between 2.75% and 4.15% (2015: 2.64% to 4.08%). Included in Group's 2016 deposits with licensed banks is the short term deposits totalling to RM27,588 (2015 : RM27,588) which was pledged with commercial banks as collateral for issuing letters of guarantee.

 

The investments with licensed banks are qualified as a cash equivalent as they are readily convertible to a known amount of cash with an insignificant risk of changes in value.

 

25.           Repurchases equity securities - Treasury Shares

               

                Share buyback by the Company

 

A total of 17,540,800 shares were bought back and retained as treasury shares as at 30 June 2016 at the total cost of RM15.98 million (average of RM0.9110 per share). However during the current quarter, there was no share buyback and no resale or cancellation of treasury shares.

 

Subsequent to the financial period ended 30 June 2016, the Company has not repurchased any of its issued ordinary shares. The issued and paid up share capital of the Company remains at 420,750,000 ordinary shares of £0.10 each.

 

26.           Profit on sale of unquoted investments and/or properties

               

There were no sales of unquoted investments and/or properties outside the ordinary course of         business of the Group for the period under review.

 

27.           Off balance sheet financial instruments

 

During the period under review, the Group has not entered into any financial instruments contract involving off "statement of financial position".

 

28.           Changes in material contingent liabilities or contingent assets

 

There have been no changes in material contingent liabilities or contingent assets since the last annual statement of financial position date.

 

 

 

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

       FOR THE PERIOD ENDED 30 JUNE 2016

 

29.           Notes to the statement of profit or loss

 

Included in the statement of profit or loss for the current quarter and financial year-to-date, are as follows:-

 

                                                                                                                    Current                   Current


Quarter


year-to-date


30 June 2016


30 June 2016


RM'000


RM'000





Interest income

1,041


2,130

Other income including investment income

78


303

Depreciation and amortisation

Provision for or write-off of receivables

Provision for or write-off of assets

Provision for or write-off of inventories

Gain/(loss) on disposal of quoted/unquoted investments

Realised gain on redemption of short term investments

Gain on disposal of assets

Impairment of associate

Provision for contingent liability

Foreign exchange loss

Decrease in fair value of quoted investment

 

(361)

-

-

-

-

(1,341)

-

-

-

466

(4)


(1,432)

-

-

-

-

(1,329)

-

-

-

(156)

(9)

30.           Debt and equity securities

 

On 24 May 2016 the Company obtained approval from its shareholders for the renewal of the proposed purchase of up to ten percent (10%) of the issued and paid-up share capital of the Company.

 

During the two quarter's of year 2016, the Company has not repurchased any of its issued ordinary shares from the open market. The Company held a total of 17,540,800 treasury shares as at 30 June 2016.

 

Apart from the above, there were no other issues or repayments of debt securities or equity securities, share cancellations, shares held as treasury shares or re-sale of treasury shares for the current quarter.

 

31.           Material litigation

 

There was no material litigation against the Group for the period under review.

 

32.           Significant events during and after the year end

 

No significant events occurred during or after the period under review.

 

33.           Related party transactions

 

Transactions within the Group have been eliminated in the preparation of the financial information set out in this report and are not disclosed in this note. Balance and transaction with other related parties are disclosed under the relevant notes.

 

No related party transactions have taken place during the current financial period under review which have materially affected the financial position or the performance of the group. The nature and amounts of related party transactions in the three months period of the current financial year are consistent with those reported in the group's Annual Report and Accounts 2015.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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