BERJAYA GROUP BERHAD - Berjaya Corporation Berhad

92
N O T E S T O T H E A C C O U N T S
30 APRIL 1998
14 INVESTMENT PROPERTIES (CONTINUED)
Investment properties at cost or valuation amounting to RM335,808,000 (1997: RM180,724,000) have been
pledged to financial institutions for credit facilities granted to subsidiary companies.
Included in the cost of the freehold land and buildings is interest capitalised during the development period
of RM8,946,000 (1997: RM3,187,000).
15 ASSOCIATED COMPANIES
Group
Company
1998 1997 1998 1997
RM’000 RM’000 RM’000 RM’000
Quoted shares - outside Malaysia 187,560 173,923 - -
Unquoted shares 447,435 265,984 46,545 8,995
Group’s share of post acquisition reserves (63,270) (28,062) - -
571,725 411,845 46,545 8,995
Provision for diminution in value (75,215) (36,248) - -
496,510 375,597 46,545 8,995
Market value :
Quoted shares - outside Malaysia 33,661 49,311 - -
The Group’s interest in the associated companies is represented by:
Share of net assets 301,354 248,932
Premium on acquisition 195,156 126,665
496,510 375,597
Provision for diminution in value of certain investment in quoted shares outside Malaysia has not been made
as the Directors are of the opinion that the diminution is temporary in nature.
The Group’s equity interest in the associated companies, their respective principal activities and countries
of incorporation are shown in Note 36.
16 SUBSIDIARY COMPANIES
Group
Company
1998 1997 1998 1997
RM’000 RM’000 RM’000 RM’000
Unconsolidated subsidiary company 346,539 - - -
Unquoted shares at cost - - 1,171,298 841,217
Provision for diminution in value (231,028) - (203,234) (209,734)
115,511 - 968,064 631,483
Quoted shares at cost - - 245,554 245,554
115,511 - 1,213,618 877,037
Market value of quoted shares - - 314,300 933,077
The results of operations and net assets of Roasters Corp., a company incorporated in Florida, U.S.A., of
which the Group has 73.5% equity interest, has not been consolidated because the company has been placed
under voluntary reorganisation pursuant to Chapter 11 Reorganisation Protection in the United States
Federal Court in which the Group has lost its management control over the affairs of the company during the
financial year.
The Group’s equity interests in the subsidiary companies, their respective principal activities and countries
of incorporation are shown in Note 36.