2003 - KNM Steel Sdn Bhd

KNM GROUP BERHAD (521348-H)NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2003The acquisition had the following effect on the Group’s assets and liabilities as at 31 December 2003.Balance sheet:2003RM’000Property, plant and equipment 82,831Current assets 90,786Current liabilities (75,641)Long term and deferred liabilities (18,917)Increase in the Group’s net assets 79,059The fair values of assets and liabilities assumed in the acquisition of KNM Process Systems Sdn. Bhd. and thecash flow effects are as follows:2003RM’000Non-current assetsProperty, plant and equipment 77,088Current assets 86,481Current liabilities (94,431)Long term and deferred liabilities (14,123)Net assets 55,015Negative goodwill on acquisition (20,829)34,186Purchase consideration satisfied by way of issuance of shares (34,186)–Cash acquired 1,422Net cash inflow 1,42228. COMPARATIVE FIGURESThere are no comparative figures for the consolidated financial statements as this is the first set of consolidatedfinancial statements prepared by the Group.2003 ANNUAL REPORT57