ANNUAL REPORT 2008 - KNM Steel Sdn Bhd

NOTES TO THE
FINANCIAL STATEMENTS (CONT’D)
3. Property, plant and equipment (cont’d)
3.1 Depreciation charge for the year is allocated as follows:
Group
2008 2007
RM’000 RM’000
Income statement (Note 19) 6,301 2,524
Construction work-in-progress (Note 12.2) 32,516 23,397
38,817 25,921
3.2 Revaluation
Buildings are stated at Directors’ valuation based on professional valuations on the open market
basis conducted in December 2004 by Kamaruzaman Jamil, a chartered surveyor in W.M. Malik &
Kamaruzaman and Wong Fong and Xu Xiao Fan, certified valuers in Tian Yuan Fixed Assets Consultation
and Valuation Ltd. Co.
Had the buildings been carried at historical cost less accumulated depreciation, the carrying amount of
the buildings that would have been included in the financial statements at the end of the year would be
as follows:
Group
2008 2007
RM’000 RM’000
Buildings 40,390 41,414
3.3 Security
Certain freehold land and buildings of the Group costing/valued at RM119,655,985 (2007 - RM95,701,000)
in a subsidiary are charged to certain licensed banks as security for credit facilities granted to the
subsidiaries (Note 15).
3.4 Assets acquired under finance lease
The carrying amounts of property, plant and equipment acquired under finance lease purchase agreements
are as follows:
Group
2008 2007
RM’000 RM’000
Freehold land 5,899 –
Building 7,794 –
Plant and machineries 399 –
Furniture, fittings and equipment 16 –
14,108 –
KNM GROUP BERHAD
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ANNUAL REPORT 2008