cont'd - KNM Steel Sdn Bhd

KNM GROUP BERHAD I Annual Report 201273Notes to the Financial Statements (cont’d)3. Property, plant and equipment (Cont’d)3.1 Depreciation charge for the year is allocated as follows:Group2012 2011RM’000 RM’000Income statement (Note 22) 11,595 10,649Construction work-in-progress (Note 12.1) 51,041 50,18062,636 60,8293.2 RevaluationFreehold lands and buildings are stated at Directors’ valuation based on professional valuations on theopen market basis conducted in December 2009 by chartered surveyors in W.M. Malik & Kamaruzaman,C.H. Williams Talhar & Wong, Jiangsu Zhongda Real Estate Appraisal & Consultation Co. Ltd., PT DutaPerkasa Propertindo, Cluttons LLC, Suncorp Valuations Ltd., Gabetti Property Solutions FranchisingAgency, PWC AG WPG and CPCON Gestao Patrimonial.Had freehold lands and buildings been carried at historical cost less accumulated depreciation, the carryingamount of the freehold lands and buildings that would have been included in the financial statements atthe end of the year would be as follows:Group31.12.2012 31.12.2011 1.1.2011RM’000 RM’000 RM’000Freehold lands 152,924 25,868 25,390Buildings 364,700 381,530 379,261517,624 407,398 404,6513.3 SecurityCertain freehold lands and buildings and capital work-in-progress of the Group costing/valued atRM103,158,000 (31 December 2011: RM98,902,000; 1 January 2011: RM88,461,000) in subsidiariesare charged to certain licensed banks as security for credit facilities granted to the subsidiaries (Note16).3.4 LandsIncluded in the carrying amounts of lands are:Group31.12.2012 31.12.2011 1.1.2011RM’000 RM’000 RM’000Leasehold lands- Unexpired period less than 50 years 26,382 27,052 25,960- Unexpired period more than 50 years 13,972 14,364 14,463Freehold lands 166,314 39,259 43,134Included herein leasehold lands that are in substance is a finance lease.206,668 80,675 83,557