ANNUAL REPORT 2008 - KNM Steel Sdn Bhd

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NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 2. Significant accounting policies (cont’d) (r) Revenue recognition (Cont’d) (v) Services Revenue from services rendered is recognised in the income statements in proportion to the stage of completion of the transaction at the balance sheet date. The stage of completion is assessed by reference to surveys of work performed. (s) Interest income and borrowing costs Interest income is recognised as it accrues, using the effective interest method. All borrowing costs are recognised in the income statement using the effective interest method, in the period in which they are incurred except to the extent that they are capitalised as being directly attributable to the acquisition, construction or production of an asset which necessarily takes a substantial period of time to be prepared for its intended use. The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of borrowing costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or completed. (t) Earnings per ordinary share The Group presents basic and diluted earnings per ordinary share (“EPS”) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise share options granted to employees. (u) Segment reporting A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. (v) Contingent liabilities Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its group, the Company considers these to be insurance arrangements, and accounts for them as such. In this respect, the Company treats the guarantee contract as a contingent liability until such time as it becomes probable that the Company will be required to make a payment under the guarantee. KNM GROUP BERHAD 72 ANNUAL REPORT 2008
NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 3. Property, plant and equipment Furniture, Capital Group Freehold Building Plant and Motor fittings and work-inland Buildings improvements machineries vehicles equipment progress Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Cost/Valuation At 1 January 2007 4,317 256,445 2,419 221,655 8,083 15,126 3,975 512,020 Additions 3,895 13,031 – 36,168 2,753 2,438 39,760 98,045 Disposals – – (60) (1,974) (1,092) (139) – (3,265) Effect of movements in exchange rates – 3,254 104 1,723 97 (614) 6 4,570 At 31 December 2007/ 1 January 2008 8,212 272,730 2,463 257,572 9,841 16,811 43,741 611,370 Additions 1,645 11,484 544 62,038 451 7,995 66,426 150,583 Disposals – (269) – (758) (1,095) (189) – (2,311) Transfer – 57,898 524 12,860 1,096 1,652 (74,030) – Acquisition of subsidiaries 18,270 46,203 3,115 79,421 2,381 22,413 12,284 184,087 Effect of movements in exchange rates (2,085) 4,605 (376) (4,452) (16) 3,683 (1,519) (160) At 31 December 2008 26,042 392,651 6,270 406,681 12,658 52,365 46,902 943,569 Representing items at: Cost 26,042 341,257 6,270 406,681 12,658 52,365 46,902 892,175 Directors’ valuation – 2004 – 51,394 – – – – – 51,394 26,042 392,651 6,270 406,681 12,658 52,365 46,902 943,569 Depreciation At 1 January 2007 – 11,431 1,004 91,392 6,417 7,821 – 118,065 Depreciation for the year – 4,467 212 18,859 911 1,472 – 25,921 Disposals – – (58) (898) (922) (116) – (1,994) Effect of movements in exchange rates – 63 44 139 99 60 – 405 At 31 December 2007/ 1 January 2008 – 15,961 1,202 109,492 6,505 9,237 – 142,397 Depreciation for the year – 7,321 371 24,707 1,057 5,361 – 38,817 Disposals – (54) – (363) (92) (179) – (688) Acquisition of subsidiaries – 2,302 880 11,261 514 11,456 – 26,413 Effect of movements in exchange rates – 616 (134) 421 79 993 – 1,975 At 31 December 2008 – 26,146 2,319 145,518 8,063 26,868 – 208,914 Carrying amounts At 1 January 2007 4,317 245,014 1,415 130,263 1,666 7,305 3,975 393,955 At 31 December 2007/ 1 January 2008 8,212 256,769 1,261 148,080 3,336 7,574 43,741 468,973 At 31 December 2008 26,042 366,505 3,951 261,163 4,595 25,497 46,902 734,655 KNM GROUP BERHAD 73 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
Page 23 and 24: CORPORATE GOVERNANCE STATEMENT (CON
Page 35 and 36: AUDIT COMMITTEE REPORT (CONT’D) 2
Page 37 and 38: AUDIT COMMITTEE REPORT (CONT’D) (
Page 39 and 40: STATEMENT ON INTERNAL CONTROL The B
Page 41 and 42: ANALYSIS OF SHAREHOLDINGS as at 18
Page 43 and 44: ANALYSIS OF SHAREHOLDINGS as at 18
Page 45 and 46: LIST OF MAJOR PROPERTIES OWNED BY T
Page 47 and 48: DIRECTORS’ REPORT for year ended
Page 49 and 50: DIRECTORS’ REPORT (CONT’D) Dire
Page 51 and 52: DIRECTORS’ REPORT (CONT’D) Opti
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
Page 61 and 62: CASH FLOW STATEMENTS FOR THE YEAR E
Page 63 and 64: NOTES TO THE FINANCIAL STATEMENTS (
Page 73: NOTES TO THE FINANCIAL STATEMENTS (
Page 121 and 122: INDEPENDENT AUDITORS’ REPORT TO T
Page 123 and 124: NOTICE OF ANNUAL GENERAL MEETING NO
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NOTICE OF ANNUAL GENERAL MEETING (C
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KNM GROUP BERHAD (Company No. 52134
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(521348-H)
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ANNUAL REPORT 2008 - KNM Steel Sdn Bhd

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