Download PDF - ChartNexus

Notes to the Financial Statements (cont’d)
For the financial year ended 31 December 2011
19. Investment in associates and jointly controlled entity (cont’d)
Impairment assessment
The investment in quoted shares relates to the investment in Asian Mineral Resources Limited (“AMR”), a company listed on
Toronto Stock Exchange. In the current financial year, an additional impairment loss of RM6,442,000 (2010: RM58,127,000)
for the Group and RM8,679,000 (2010: RM68,064,000) for the Company was recognised based on fair value less cost to
sell, which was the market bid price of C$0.05 per share at 31 December 2011. The carrying amount of this investment was
RM4,867,000 for the Group and Company as at 31 December 2011.
The investment in unquoted shares relates to the investment in Guilin Hinwei Tin Co Ltd. In the current financial year, an
additional impairment loss of RM2,000,000 (2010: RM8,800,000) for the Group and RM1,975,000 (2010: RM13,981,000) for
the Company was recognised based on fair value less cost to sell, which was determined by the estimated net realizable value
of the net assets in this investment. The carrying amount of this investment was RM2,475,000 for the Group and Company
as at 31 December 2011.
Details of the associates are as follows:
Name of associates
Held by the Company:
Country of
incorporation Principal activities
Redring Solder (M) Sdn. Bhd. Malaysia Manufacture and sale of
solder products
Asian Mineral Resources Limited
(“AMR”) (a)
New Zealand (1) Exploration and development
of mineral property
interests (2)
Guilin Hinwei Tin Co Ltd. (“Guilin”) China Smelting, refining and sales
of tin and tin products
Proportion of
ownership interest
2011 2010
% %
40 40
15 18
35 35
(1) AMR was originally incorporated in New Zealand in year 1988 and was subsequently incorporated under the laws of the
Province of British Columbia, Canada by a certificate of continuance as of December 2004.
(2) Its principal mineral property interests, held through a joint-venture is in Ban Phuc Project area located in Son La Province,
in northwestern Vietnam.
(a) Although the Company holds less than 20% interest in the shareholding in this investment, the Company exercises
significant influence by virtue of its representative on the Board of this associate company.
MALAYSIA SMELTING CORPORATION (43072-A) • ANNUAL REPORT 2011 123