Annual Report - Bina Puri

Notes to and Forming Part of the Financial Statements (Cont’d)
5. INVESTMENT PROPERTIES (Cont’d)
The Group has developed certain criteria based on FRS 140 in making judgement whether a property qualified
as an investment property. Investment property is a property held to earn rentals or for capital appreciation or
for both. In making judgement, the Group considers whether a property generates cash flows largely independent
of other assets held by the Group. Owner-occupied properties generate cash flows that are attributable not only
to the properties, but also other assets and in the production and supply of goods and services. Judgement is also
made on an individual property basis to determine whether ancillary services are so significant that the property
does not qualify as an investment property.The fair value of the investment properties at the end of the financial
year was determined by the directors based on various studies conducted which reasonably reflect market
conditions of similar properties at the balance sheet date.
6. INVESTMENTS IN SUBSIDIARIES
2008 2007
RM'000 RM'000
Unquoted shares
- at cost 78,725 40,918
- at valuation 4,264 4,264
82,989 45,182
Less:
Allowance for diminution in value 4,444 4,444
78,545 40,738
The unquoted shares stated at valuation were revalued by the directors in 1994 based on the value of the
underlying net tangible assets of the subsidiary concerned.
The 1994 valuation was a one-off exercise. It is not the Group's policy to carry out regular revaluations of its
investments in subsidiaries, and accordingly, the carrying amount of the revalued investment has been retained
on the basis of this one-off revaluation as surrogate cost.
The subsidiaries, all of which are incorporated in Malaysia except where indicated, are as follows:
Gross equity
interest
2008 2007 Principal activities
% %
Subsidiaries of the Company
Bina Puri Sdn Bhd 100 100 Contractor of earthworks, buildings and road
construction
Bina Puri Construction Sdn Bhd 100 – Contractors of earthworks, buildings and road
construction and property development
Aksi Bina Puri Sdn Bhd 70 70 Property developer
Bina Puri Ventures Sdn Bhd 100 100 Investment holding and contractors of earthworks,
(formerly known as Maskimi
buildings and road construction
Sdn Bhd)
Maskimi Venture Sdn Bhd 100 – Commission agent
BINA PURI HOLDINGS BHD
Annual Report 2008
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