2003 - KNM Steel Sdn Bhd

KNM GROUP BERHAD (521348-H)NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2003(s)Revenuei) Construction contractsRevenue from fixed price construction contracts is recognised on the percentage of completionmethod, measured by reference to completion of a physical proportion of the contract work.When the outcome of a construction contract cannot be estimated reliably, revenue is recognisedonly to the extent of contract costs incurred that is probable to be recoverable and contract costs arerecognised as an expense in the period in which they are incurred.An expected loss on a contract is recognised immediately in the income statement.ii)Dividend incomeDividend income is recognised when the right to receive payment is established.(t)Interest IncomeInterest income is recognised in the income statement as it accrues, taking into account the effective yieldon the asset.(u)Financing CostsAll interest and other costs incurred in connection with borrowings, other than that capitalised in accordancewith Note 1(k), are expensed as incurred. The interest component of hire purchase payments is recognisedin the income statement so as to give a constant periodic rate of interest on the outstanding liability at theend of each accounting period.2. PROPERTY, PLANT AND EQUIPMENTLong term Short term Furniture,Group leasehold leasehold Plant and Motor fittings andland land Buildings machinery vehicles equipment TotalCost RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000Acquisition of subsidiaries 8,651 2,255 41,534 38,949 1,840 5,584 98,813Additions – – 4,725 3,447 428 999 9,599Disposals – – – (14) – (8) (22)At 31 December 2003 8,651 2,255 46,259 42,382 2,268 6,575 108,390Accumulated depreciationAcquisition of subsidiaries 349 14 1,711 16,766 956 1,929 21,725Charge for the year 80 30 503 2,606 206 420 3,845Disposals – – – (8) – (3) (11)At 31 December 2003 429 44 2,214 19,364 1,162 2,346 25,559Net book valueAt 31 December 2003 8,222 2,211 44,045 23,018 1,106 4,229 82,831Accumulated depreciation above includes the accumulated depreciation prior to acquisition by the Company inthe year.2003 ANNUAL REPORT41