ANNUAL REPORT 2008 - KNM Steel Sdn Bhd

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NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 27. Related parties (cont’d) Group Allowance Bad or doubtful Transactions Gross balance Net balance for doubtful receivables amount for outstanding outstanding receivables recognised for the year ended from / (to) from / (to) at the year end 31 December 31 December 31 December 31 December 31 December 2007 RM’000 RM’000 RM’000 RM’000 RM’000 Related parties Inter Merger Sdn. Bhd. (1,832) (1,832) – – Rental of premises 1,230 Administrative charges 615 IM Bina Sdn. Bhd. (11,742) (11,742) – – Contract billing payable 18,638 Inter Merger Trading Sdn. Bhd. – – – – Purchase of materials 149 The terms and conditions for the above transactions are based on normal trade terms. All the amounts outstanding are unsecured, interest free with no fixed term of repayment and expected to be settled with cash. 28. Financial instruments Financial risk management objectives and policies Exposure to credit, interest rate, liquidity and foreign currency risks arises in the normal course of Group’s business. The Group monitors the interest rate trend and currency exchange rate on an ongoing basis. Credit risk The Group’s primary exposure to credit risk arises through its receivables. The management has an informal credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The Group also places excess funds with reputable licensed financial institutions. The management is of the view that credit risk exposure to licensed financial institutions is minimal. There were no significant concentrations of credit risk. The maximum exposure to credit risk for the Group is represented by the carrying amount of the receivables presented in the balance sheet. Interest rate risk The Group’s exposure to interest rate risk mainly arises through its fixed deposits and borrowings. KNM GROUP BERHAD 100 ANNUAL REPORT 2008
NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 28. Financial instruments (cont’d) Financial risk management objectives and policies (Cont’d) Effective interest rates/profit rates and repricing analysis In respect of interest-earning financial assets and interest-bearing financial liabilities, the following table indicates their effective interest rates/profit rates at the balance sheet date and the periods in which they reprice or mature, whichever is earlier. Group Average effective interest rates/ More profit rates Less than 1 - 2 2 – 3 3 – 4 4 – 5 than 5 per annum Total 1 year years years years years years 2008 % RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Floating rate instruments Bank overdraft - unsecured - RM 7.05 – 7.25 (103) (103) – – – – – - Euro 8.00 (47) (47) – – – – – CP/MTN 3.69 – 5.80 (300,000) (300,000) – – – – – Bridging loan – secured 6.25 – 7.75 (737,400) (737,400) – – – – – Floating rate term loans – secured - RMB 5.51 – 7.52 (5,243) (5,243) – – – – – - Euro 4.49 – 6.40 (44,639) (44,639) – – – – – - USD 5.00 (3,472) (3,472) – – – – – Floating rate term loans – unsecured - RMB 5.51 – 7.52 (19,437) (19,437) – – – – – - Euro 2.75 – 5.35 (147,480) (147,480) – – – – – - CAD 4.35 (34,427) (34,427) – – – – – - BRL 6.05 – 27.11 (8,513) (8,513) – – – – – (1,300,761) (1,300,761) – – – – – Fixed rate instruments Fixed rate term loans - unsecured - Euro 3.10 – 4.40 (9,415) (6,372) (396) (408) (421) (434) (1,384) Bills Payables - RM 3.97 – 4.54 (108,474) (108,474) – – – – – Finance lease - EUR 4.50 (11,230) (746) (787) (828) (872) (919) (7,078) Finance lease - CAD 4.83 – 15.00 (509) (233) (223) (53) – – – Deposits with licensed banks 3.45 – 5.50 129,201 129,201 – – – – – Deposits with financial institutions 3.35 26,078 26,078 – – – – – 25,651 39,454 (1,406) (1,289) (1,293) (1,353) (8,462) KNM GROUP BERHAD 101 ANNUAL REPORT 2008
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KNM GROUP BERHAD (521348-H) World C
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CONTENTS 2 Corporate Information 3
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CORPORATE STRUCTURE AS AT 18 MAY 20
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Malaysia China Canada USA Brazil Au
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CHAIRMAN'S MESSAGE (CONT’D) FINAN
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CHAIRMAN'S MESSAGE (CONT’D) GLOBA
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5-YEAR GROUP FINANCIAL HIGHLIGHTS K
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PROFILE OF DIRECTORS DATO’ MOHAMA
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PROFILE OF DIRECTORS (CONT’D) LEE
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CORPORATE GOVERNANCE STATEMENT The
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CORPORATE GOVERNANCE STATEMENT (CON
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AUDIT COMMITTEE REPORT (CONT’D) 2
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AUDIT COMMITTEE REPORT (CONT’D) (
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STATEMENT ON INTERNAL CONTROL The B
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ANALYSIS OF SHAREHOLDINGS as at 18
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ANALYSIS OF SHAREHOLDINGS as at 18
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LIST OF MAJOR PROPERTIES OWNED BY T
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DIRECTORS’ REPORT for year ended
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DIRECTORS’ REPORT (CONT’D) Dire
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Page 53 and 54: BALANCE SHEETS AT 31 DECEMBER 2008
Page 55 and 56: INCOME STATEMENTS FOR THE YEAR ENDE
Page 57 and 58: CONSOLIDATED STATEMENT OF CHANGES I
Page 59 and 60: CASH FLOW STATEMENTS FOR THE YEAR E
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Page 123 and 124: NOTICE OF ANNUAL GENERAL MEETING NO
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Page 127 and 128: KNM GROUP BERHAD (Company No. 52134
Page 129: (521348-H)
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ANNUAL REPORT 2008 - KNM Steel Sdn Bhd

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