2001 Annual Report - Kian Joo Can

More documents

Recommendations

Info

NOTES TO THE FINANCIAL STAT E M E N T S 31 December 2001 1. GENERAL The Company is a public company limited by shares and is domiciled in Malaysia. The registered office and principal place of business is located at Lot 10, Jalan Perusahaan 1, 68100 Batu Caves, Selangor Darul Ehsan. The principal activities of the Company are that of manufacture and distribution of tin cans and investment holding. The principal activities of the Group are that of manufacture and distribution of tin cans, 2-piece aluminium beverage cans, polyethelene terephalate products and corrugated fibreboard cartons, provisions of engineering services, letting of property and provision of share registration and management services. The financial statements are expressed in Ringgit Malaysia. The number of employees as at 31 December 2001 for the Group is 2,142 (2000 : 2,161) and for the Company is 661 (2000 : 721) respectively. 2. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Accounting The financial statements of the Group and of the Company are prepared under the historical cost convention modified to include the revaluation of certain assets and comply with applicable approved accounting standards issued by the Malaysian Accounting Standards Board ("MASB"). Certain properties of the Group and of the Company were revalued by the Directors in periods prior to 1998. As permitted by MASB Standard No. 15, Property, Plant and Equipment, these assets are stated at their previous revalued amount (subject to continuity in depreciation policy and the requirement to write an asset down to its recoverable amount) on the basis that the revaluation carried out then, was a one off isolated event and not intended to be the adoption of a revaluation policy in place of a cost policy. (b) Basis of Consolidation The consolidated financial statements incorporate the financial statements of the Company and all its subsidiary companies. Subsidiary companies are those companies in which the Group has power to exercise control over the financial and operating policies so as to obtain benefits from their activities. All the subsidiary companies are consolidated using the acquisition method of accounting except those acquisitions of subsidiary companies which meet the criteria for merger accounting under MASB Standard No. 21, Business Combinations, are accounted under that method. (i) Under the acquisition method of accounting, the results of subsidiary companies acquired or disposed of during the year are included from the date of acquisition or up to the date of disposal. At the date of acquisition, the fair values of the subsidiary companies' net assets are determined and these values are reflected in the consolidated financial statements. The difference between the acquisition cost and the fair value of assets acquired is reflected as goodwill or reserve on consolidation as appropriate. Goodwill on consolidation is written off against reserve. (ii) Under the merger method of accounting, the results of the subsidiary companies are presented as if the companies had been combined through the current and previous financial years. All significant intra-group transactions are eliminated in the consolidated financial statements. KIAN JOO CAN FACTORY BERHAD (3186-P) 2001 / Annual Report . 37
NOTES TO THE FINANCIAL STAT E M E N T S 31 December 2001 ( c o n t ’ d ) 2. SIGNIFICANT ACCOUNTING POLICIES (cont’d) (c) Associated Companies Associated company is a company in which the Company has a long term equity interest of between 20 and 50 percent and where it exercises significant influence through Board representation. The Group equity-accounts for its share of post-acquisition results and reserves of associated companies based on the latest audited or management financial statements of the companies concerned. The Group's share of results and reserves of associated companies acquired or disposed is included in the consolidated financial statements from the date of acquisition and up to the date of disposal. (d) Depreciation of Property, Plant and Equipment All property, plant and equipment are stated at cost/deemed cost less accumulated depreciation. Freehold land and capital work-in-progress are not depreciated. Leasehold land is amortised to write off the value of leasehold land over the unexpired lease terms ranging from 23 to 89 years. All other property, plant and equipment are depreciated on a straight-line basis calculated to write off the assets over their estimated useful lives at the following annual rates:- % Buildings 2 Plant, machinery and equipment 6 2/3 - 20 Furniture, fittings and equipment 10 - 33 1/3 Motor vehicles 20 (e) (f) Investment Investment in subsidiary companies and other long term investment are stated at cost. They are written down only when the Directors are of the opinion that there is a permanent diminution in value. Inventories Inventories are stated at the lower of cost and net realisable value. Raw materials comprise the purchase price including duties and other attributable expenses and are determined using the first-in first-out basis. Work-in-progress and finished goods comprise the cost of materials, labour and appropriate production overheads and are based on standard cost, which approximates actual cost. In arriving at net realisable value, due allowance is made for all obsolete and slow moving items. (g) Debtors Debtors are recognised and carried at original invoiced amount less an allowance for any uncollectible amounts. Known bad debts are written off and specific provision is made for any debts considered to be doubtful of collection. (h) Transactions in Foreign Currencies Transactions in foreign currencies are recorded in Ringgit Malaysia at the exchange rates ruling at the time of the transaction. Foreign currency assets and liabilities are reported in Ringgit Malaysia at the exchange rates ruling at the balance sheet date. All gains or losses on foreign currency transactions are dealt with in the income statement. The average rates ruling at balance sheet date are as follows:- 2001 2000 RM RM One (1) United States Dollar 3.8000 3.8000 One (1) Singapore Dollar 2.0535 2.1930 One (1) Hong Kong Dollar 0.4874 0.4873 One (1) Sterling Pound 5.5100 5.6635 One (1) Swiss Franc 2.2690 2.3240 One (1) Japanese Yen 0.0289 0.0332 38 . Annual Report / 2001 KIAN JOO CAN FACTORY BERHAD (3186-P)
Page 1 and 2: (Incorporated In Malaysia) (3186-P)
Page 3 and 4: NOTICE OF Annual General Meeting NO
Page 5 and 6: CORPORATE Information DIRECTORS Y.A
Page 7 and 8: FIVE YEAR Financial Highlights 2001
Page 9 and 10: PROFILE OF Directors YAM TUNKU NAQU
Page 11 and 12: PROFILE OF Directors (Cont’d) SEE
Page 13 and 14: Corporate Governance Statement (Con
Page 15 and 16: Corporate Governance Statement (Con
Page 17 and 18: AUDIT COMMITTEE Report MEMBERSHIPS
Page 19 and 20: AUDIT COMMITTEE Report (Cont’d) S
Page 21 and 22: CHAIRMAN’S Statement (Cont’d) G
Page 23 and 24: D I R E C T O R S ’ R e p o r t T
Page 25 and 26: D I R E C T O R S ’ R e p o r t (
Page 27 and 28: D I R E C T O R S ’ R e p o rt (
Page 29 and 30: STATEMENT BY DIRECTORS Pursuant to
Page 31 and 32: BALANCE SHEETS as at 31 December 20
Page 33 and 34: CONSOLIDATED STATEMENT OF CHANGES I
Page 35 and 36: C O N S O L I D ATED CASH FLOW STAT
Page 37: CASH FLOW STAT E M E N T for the ye
Page 41 and 42: NOTES TO THE FINANCIAL STAT E M E N
Page 59 and 60: LIST OF PROPERT I E S as at 31 Dece
Page 61 and 62: A N A LYSIS OF SHAREHOLDINGS as at
Page 63 and 64: D A I N R A E C LYSIS T O R S OF
Page 65: Please fold here Affix stamp here T

2001 Annual Report - Kian Joo Can

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?