TANJUNG OFFSHORE BERHAD

NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2009
5. PROPERTY, PLANT AND EQUIPMENT (continued)
83
TANJUNG OFFSHORE BERHAD (662315-U)
ANNUAL REPORT 2009
GROUP Freehold Leasehold
Vessels under land land Furniture and Workshop Offi ce Motor
Vessels commissioning and building and building fi ttings Renovation tools equipments vehicles Machinery Total
RM RM RM RM RM RM RM RM RM RM RM
At 31 December 2008
Cost or Valuation
Beginning of the year
At cost 249,102,595 54,191,553 4,041,366 2,478,000 1,319,023 5,124,191 400,234 4,392,920 2,958,403 6,636,120 330,644,405
Addition 1,350,000 177,390,040 1,038,402 36,706 1,009,609 2,156,884 291,296 5,425,597 967,821 1,445,065 191,111,420
Revaluation 85,847,404 - - - - - - - - - 85,847,404
Disposal - - - - - (9,420) - (73,600) (66,183) (53,862) (203,065)
Write off - - - - - (458,568) - - - - (458,568)
Tranfer (to)/from 93,657,329 (93,657,329) - - - - - - - - -
End of the year 429,957,328 137,924,264 5,079,768 2,514,706 2,328,632 6,813,087 691,530 9,744,917 3,860,041 8,027,323 606,941,596
Representing:
At cost 95,007,328 137,924,264 5,079,768 2,514,706 2,328,632 6,813,087 691,530 9,744,917 3,860,041 8,027,323 271,991,596
At valuation 334,950,000 - - - - - - - - - 334,950,000
Accumulated
Depreciation
429,957,328 137,924,264 5,079,768 2,514,706 2,328,632 6,813,087 691,530 9,744,917 3,860,041 8,027,323 606,941,596
Beginning of the year 13,079,455 - 317,127 133,533 451,941 1,336,219 42,798 935,183 1,185,214 1,759,516 19,240,986
Reversal of depreciation
due to revaluation (19,307,020) - - - - - - - - - (19,307,020)
Charge for the year 14,999,034 - 99,842 51,771 179,681 605,488 56,203 801,069 835,209 767,060 18,395,357
Effects of movements in
exchange rates - - - - - - - (1,604) - (10,242) (11,846)
Disposal - - - - - - - (25,612) (4,756) (48,380) (78,748)
Write off - - - - - (94,291) - - - - (94,291)
End of the year 8,771,469 - 416,969 185,304 631,622 1,847,416 99,001 1,709,036 2,015,667 2,467,954 18,144,438
Net Book Value
At cost 92,252,277 137,924,264 4,662,799 2,329,402 1,697,010 4,965,671 592,529 8,035,881 1,844,374 5,559,369 259,863,576
At valuation 328,933,582 - - - - - - - - - 328,933,582
421,185,859 137,924,264 4,662,799 2,329,402 1,697,010 4,965,671 592,529 8,035,881 1,844,374 5,559,369 588,797,158
a) Included in the property, plant and equipment are motor vehicles and offi ce equipment which is acquired by means of hire
purchase and lease arrangements with a net book value of RM854,809 (2008: RM1,424,833) and RM840,445 (2008:
RM1,103,348) respectively.
b) Borrowing costs amounting to RM3,515,940 (2008: RM6,859,487) from various fi nancier entered into for new vessels
under construction and commissioning were capitalised.
c) Freehold and leasehold land and building have been pledged to secure the Group’s bank overdraft as disclosed in Note
16 to the fi nancial statements.
d) Certain vessels have been pledged to secure the relevant borrowings from the banks and Bonds Programme as disclosed
in Notes 20 and 21 to the fi nancial statements respectively.
e) On 17 July 2008, an independent professional valuer, Matthews Daniel International Pte. Ltd. has revalued seven (7)
vessels within the Group on an open market value basis. Had the revalued vessels been carried at historical cost, the net
book value of the vessels that would have been included in the fi nancial statements of the Group as at 31 December 2009
would have been recorded as follows:
2009 2008
RM RM
Vessels 211,697,376 224,151,005