ANNUAL REPORT 2012 - Wawasan TKH Holdings Berhad

WAWASAN TKH HOLDINGS BERHAD (540218-A)
ANNUAL REPORT 2012
095
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2012 (cont’d)
28. COMMITMENTS (cont’d)
(b) Operating lease commitments
(i) The Group as lessor
The Group has entered into non-cancellable lease arrangements on certain properties for a term
of three (3) years. The leases include a clause to enable upward revision of the rental charge on an
annual basis depending on prevailing market conditions.
Not later than one (1) year
Later than one (1) year and not later than five (5) years
29. CONTINGENCIES
The Directors are of the opinion that provisions are not required in respect of these matters, as it is not
probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable
measurement.
(a) Guarantees
The Company has provided corporate guarantees for
credit facilities of certain subsidiaries
The Directors are of the view that the chances of the banks to call upon the corporate guarantees are
remote. Accordingly, the fair values of the above corporate guarantees given to the subsidiaries for
banking facilities are negligible.
(b) Filling and leveling obligations (unsecured)
As highlighted in the previous financial years, AKI has contingent liabilities, which are not readily
ascertainable in respect of filling and leveling obligations stipulated in the Mining Enactment F.M.S.
Chapter 147 (‘the Enactment’).
The Board of Directors is of the view that there are no contingent liabilities in respect of filling and leveling
obligations on these mining leases as AKI has fulfilled its obligations as stipulated in the Enactment.
Moreover, the leases on these leasehold mining lands have expired and are currently awaiting the
extension from the Mineral and Geosciences Department. As for the mining on the third party land, there
are no obligation stipulated in the respective agreement in respect of filling and leveling.
30. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR
(a) On 24 April 2012, a major shareholder of the Company, namely WTKHSB, exercised 5 million detachable
warrants 2008/2013 (‘Warrants’) at exercise price of RM0.21 per Warrant on the basis of one (1) new
ordinary share for every one (1) Warrant exercised pursuant to the Deed Poll dated 24 July 2008. The new
ordinary shares of RM0.10 each rank pari passu in all respect with the existing shares of the Company.
(b) On 14 December 2012, a major shareholder of the Company, namely WTKHSB, exercised 11 million
detachable warrants 2008/2013 (‘Warrants’) at exercise price of RM0.21 per Warrant on the basis of
one (1) new ordinary share for every one (1) Warrant exercised pursuant to the Deed Poll dated 24 July
2008. The new ordinary shares of RM0.10 each rank pari passu in all respect with the existing shares
of the Company