For personal use only - ASX · Net cash from financing activities 3,624,706 2,092,468 NET...

Company No. 726333-X

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JACK-IN PILE (M) SDN. BHD. Company No. 726333-X (Incorporated in Malaysia)

REPORTS AND FINANCIAL STATEMENTS 31 MARCH 2015 CONTENTS PAGE CORPORATE INFORMATION 2 DIRECTORS’ REPORT 3 - 6 DIRECTORS’ STATEMENT 7 STATUTORY DECLARATION 7 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS 8 - 9 BALANCE SHEET 10 INCOME STATEMENT 11 STATEMENT OF CHANGES IN EQUITY 12 CASH FLOW STATEMENT 13 - 14 NOTES TO THE FINANCIAL STATEMENTS 15 - 31

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CORPORATE INFORMATION Directors H’ng Bok Chuan Foong Chee Hoe Secretary Phoon Sow Cheng Registered Office No.11-1 Jalan Kuchai Maju 8 Kuchai Entrepreneurs Park Off Jalan Kuchai Lama 58200 Kuala Lumpur Business Address No. 59-3 Jalan Sri Permaisuri 8 Bandar Sri Permaisuri 56000 Kuala Lumpur Auditors Grant Thornton Chartered Accountants

Bankers Malayan Banking Berhad CIMB Bank Berhad AmBank (M) Berhad OCBC Bank (Malaysia) Berhad United Overseas Bank (Malaysia) Berhad HSBC Bank (Malaysia) Berhad

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DIRECTORS’ REPORT FOR THE FINANCIAL YEAR ENDED 31 MARCH 2015

The directors have pleasure in submitting their report and the audited financial statements of the Company for the financial year ended 31 March 2015. PRINCIPAL ACTIVITY The principal activity of the Company in the course of the financial year remains unchanged and is engaged in the provision of piling contract services. RESULTS RM Profit after taxation for the year 5,926,175 In the opinion of the directors, the results of the operations of the Company for the financial year ended 31 March 2015 have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of that financial year and the date of this report. DIVIDENDS No dividends have been declared or paid by the Company since the end of the previous financial year. The directors do not recommend any dividend payment for the financial year. RESERVES AND PROVISIONS There were no material transfers to or from reserves or provisions during the financial year other than those disclosed in the financial statements.

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SHARE CAPITAL AND DEBENTURE During the financial year, the Company increased its issued and paid-up share capital from RM4,500,000 to RM5,000,000 by an allotment of 500,000 new ordinary shares of RM1 each at par for cash. The new shares rank pari passu with the existing shares in all respects. On 19 December 2014, the 500,000 redeemable preference shares were redeemed at a redemption price of RM1 each. Other than the foregoing, the Company did not issue any other share or debenture. DIRECTORS The directors who served since the date of the last report are as follows: H’ng Bok Chuan Foong Chee Hoe DIRECTORS’ INTERESTS IN SHARES According to the Register of Directors’ Shareholdings, the interests of directors in office at the end of the financial year in shares in the Company during the financial year are as follows: ----- Number of ordinary shares of RM1 each ----- Balance Balance at at 1.4.14 Allotment Bought 31.3.15 Direct Interest: H’ng Bok Chuan 3,500,000 400,000 500,000 4,400,000 Foong Chee Hoe 500,000 100,000 - 600,000 ---- Number of preference shares of RM1 each ---- Balance Balance at at 1.4.14 Bought Redeemed 31.3.15 Direct Interest: H’ng Bok Chuan 300,000 100,000 (400,000) - Foong Chee Hoe 100,000 - (100,000) -

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DIRECTORS’ BENEFITS Since the end of the previous financial year, no director of the Company has received or become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by the directors shown in the financial statements) by reason of a contract made by the Company or a related company with a director or with a firm of which the director is a member or with a company in which the director has a substantial financial interest, other than those related party transactions disclosed in notes to the financial statement. During and at the end of the financial year, no arrangements subsisted to which the Company is a party, with the objects of enabling directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate. OTHER STATUTORY INFORMATION Before the financial statements of the Company were made out, the directors took reasonable steps: (i) to ascertain that proper action had been taken in relation to the writing off of bad

debts and the making of provision for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate provision had been made for doubtful debts, and

(ii) to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected so to realise.

At the date of this report, the directors are not aware of any circumstances: (i) that would render the amount written off for bad debts or the amount of the

provision for doubtful debts in the Company inadequate to any substantial extent, and

(ii) that would render the value attributed to the current assets of the financial

statements of the Company misleading, and (iii) that would render any amount stated in the financial statements of the Company

misleading, and (iii) which have arisen which render adherence to the existing methods of valuation of

assets or liabilities of the Company misleading or inappropriate.

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2015 2014NOTE RM RM

ASSETS

Non-current assetsProperty, plant and equipment 3 36,199,288 37,210,977

Current assetsGross amount due from customers 4 6,758,450 9,298,900Trade receivables 5 68,118,274 32,995,176Other receivables, deposits and prepayments 6 2,810,754 3,238,455Tax recoverable - 50,376Cash and cash equivalents 7 6,390,904 4,002,658

84,078,382 49,585,565

TOTAL ASSETS 120,277,670 86,796,542

EQUITY AND LIABILITIESShare capital 8 5,000,000 4,500,000Capital redemption reserve 9 500,000 - Retained profits 10 23,101,292 17,675,117Total equity 28,601,292 22,175,117

Non-current liabilitiesBorrowings 11 14,861,173 16,365,064 Deferred tax liabilities 12 1,189,429 1,309,429Redeemable preference shares 13 - 500,000

16,050,602 18,174,493

Current liabilitiesGross amount due to customers 4 7,400,489 7,284,513Trade payables 14 44,287,922 24,888,753Other payables and accruals 15 1,972,814 2,567,235Borrowings 11 21,153,779 11,706,431Provision for taxation 810,772 -

75,625,776 46,446,932Total liabilities 91,676,378 64,621,425

TOTAL EQUITY AND LIABILITIES 120,277,670 86,796,542

The notes set out on pages 15 to 31 form an integral part of these financial statements.

JACK-IN PILE (M) SDN. BHD.Company No. 726333-X(Incorporated in Malaysia)

BALANCE SHEET AS AT 31 MARCH 2015

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2015 2014NOTE RM RM

Contract revenue 16 115,519,769 58,459,932

Contract costs (94,945,810) (50,221,520)

Attributable profit 20,573,959 8,238,412

Other income 1,685,606 9,921,164

Administrative expenses (12,617,427) (10,949,339)

Operating profit 9,642,138 7,210,237

Finance costs (1,885,167) (1,697,714)

Profit before taxation 17 7,756,971 5,512,523

Taxation 18 (1,830,796) (1,613,033)

Profit for the year 5,926,175 3,899,490


INCOME STATEMENTFOR THE FINANCIAL YEAR ENDED 31 MARCH 2015

JACK-IN PILE (M) SDN. BHD.Company No. 726333-X

(Incorporated In Malaysia)

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Capital Share Redemption Retained Total

Capital Reserve Profits EquityNOTE RM RM RM RM

2015

Balance at beginning 4,500,000 - 17,675,117 22,175,117

Cash allotment, at par 8 500,000 - - 500,000

Redemption of redeemable preference shares 9 - 500,000 (500,000) -

Profit for the year - - 5,926,175 5,926,175

Balance at end 5,000,000 500,000 23,101,292 28,601,292

2014

Balance at beginning 1,500,000 - 13,775,627 15,275,627

Cash allotment, at par 3,000,000 - - 3,000,000

Profit for the year - - 3,899,490 3,899,490

Balance at end 4,500,000 - 17,675,117 22,175,117


FOR THE FINANCIAL YEAR ENDED 31 MARCH 2015

(Incorporated in Malaysia)

STATEMENT OF CHANGES IN EQUITY

JACK-IN PILE (M) SDN. BHD.Company No. 726333-X

|--------Distributable--------|

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2015 2014RM RM

CASH FLOWS FROM OPERATING ACTIVITIESProfit before taxation 7,756,971 5,512,523 Adjustments for : Allowance for doubtful debts - 648,741 Bad debts 962,808 772,290 Debts waived by suppliers - (5,814,146) Depreciation 6,101,880 4,836,184 Gain on disposal of property, plant and equipment (179,525) (3,166,192) Interest expense 1,885,167 1,697,714 Interest income (33,128) (116,359) Property, plant and equipment written off - 1

Operating profit before working capital changes 16,494,173 4,370,756 Increase in receivables (33,117,755) (8,357,231) Increase in payables 18,860,724 6,848,542

Cash generated from operations 2,237,142 2,862,067 Income tax paid (1,548,378) (1,372,702) Income tax refunded 458,730 668,403 Interest paid (712,661) (987,148)

Net cash from operating activities 434,833 1,170,620

CASH FLOWS FROM INVESTING ACTIVITIESInterest received 33,128 116,359 Proceeds from disposal of property, plant and equipment 467,138 8,750,338

* Purchase of property, plant and equipment (3,262,804) (14,248,814) Net cash used in investing activities (2,762,538) (5,382,117)

CASH FLOWS FROM FINANCING ACTIVITIESDrawdown of term loans 1,684,455 1,365,156 Drawdown of bankers acceptance 1,966,180 1,904,043 Drawdown of trust receipts 7,134,894 899,796 Interest paid (1,172,506) (710,566) Payment of hire purchase payables (4,797,718) (2,509,844) Placements of fixed deposits (1,250,599) (1,086,946) (Redemption of)/Proceeds from issuance of redeemable preference shares (500,000) 200,000 Proceeds from issuance of ordinary shares 500,000 3,000,000 Advance from/(Repayment) to directors 60,000 (969,171) Net cash from financing activities 3,624,706 2,092,468 NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS CARRIED FORWARD 1,297,001 (2,119,029)


JACK-IN PILE (M) SDN. BHD.Company No. 726333-X(Incorporated in Malaysia)

CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 31 MARCH 2015

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2015 2014RM RM

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS BROUGHT FORWARD 1,297,001 (2,119,029)

CASH AND CASH EQUIVALENTS AT BEGINNING (1,620,378) 498,651

CASH AND CASH EQUIVALENTS AT END (323,377) (1,620,378)

Represented by:Cash balances 6,390,904 4,002,658Bank overdrafts (2,311,707) (2,471,061)

4,079,197 1,531,597Less: Fixed deposits pledged with licensed banks (4,402,574) (3,151,975)

(323,377) (1,620,378)

* Purchase of property, plant and equipmentTotal acquisition cost 5,377,804 33,910,555Acquired under hire purchase loans (2,115,000) (19,661,741)

Total cash acquisition 3,262,804 14,248,814


FOR THE FINANCIAL YEAR ENDED 31 MARCH 2015CASH FLOW STATEMENT

(Incorporated in Malaysia)Company No. 726333-X

JACK-IN PILE (M) SDN. BHD.

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NOTES TO THE FINANCIAL STATEMENTS – 31 MARCH 2015

1. GENERAL INFORMATION

The Company is a private limited liability company, incorporated and domiciled in Malaysia.

The principal activity of the Company in the course of the financial year remains unchanged and is engaged in the provision of piling contract services. The registered office of the Company is located at No.11-1, Jalan Kuchai Maju 8, Kuchai Entrepreneurs Park, Off Jalan Kuchai Lama, 58200 Kuala Lumpur. The principal place of business of the Company is located at No. 59-3, Jalan Sri Permaisuri 8, Bandar Sri Permaisuri, 56000 Kuala Lumpur.

The financial statements were authorised for issue by the Board of Directors in

accordance with a resolution of the directors on 1 September 2015. 2. SIGNIFICANT ACCOUNTING POLICIES

The following accounting policies adopted by the Company are consistent with those adopted in the previous financial years. 2.1 Basis of Preparation

The financial statements of the Company are prepared under the historical cost convention unless otherwise indicated in the accounting policies below and in accordance with applicable Private Entities Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia. The financial statements are presented in Ringgit Malaysia (“RM”), which is also the Company’s functional currency.

2.2 Malaysian Private Entities Reporting Standard

On 14 February 2014, the Malaysian Accounting Standards Board

(“MASB”) issued a new MASB approved accounting framework, the Malaysian Private Entities Reporting Standard (“MPERS”).

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The Company will be required to prepare financial statements using the MPERS for the financial year ending 31 March 2017. In presenting its first MPERS financial statements, the Company will be required to restate the comparative financial statements to amounts reflecting the application of MPERS. The adjustments required on transition will be made, retrospectively, against opening retained profits. The financial performance and financial position as disclosed in these financial statements for the financial year ended 31 March 2015 could be different if prepared under the MPERS. The Company expects to be in a position to fully comply with the requirements of the MPERS for the financial year ending 31 March 2017.

2.3 Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

Property, plant and equipment are depreciated over their estimated useful

lives on the straight line method at the following annual rates: Buildings 2% Plant, machinery and site equipment 12% - 20% Office equipment, furniture, fittings and renovation 20% - 50% Motor vehicles 20%

Freehold land is not depreciated as it has an infinite life.

Upon disposal of an item of property, plant and equipment, the difference between the net disposal proceeds and its carrying amount is charged or credited to the income statement.

2.4 Hire Purchase

Property, plant and equipment financed under hire purchase are capitalised in the financial statements and are depreciated in accordance with the accounting policy as set out in Note 2.3. Outstanding obligations due under hire purchase after deducting finance costs are included as liabilities in the financial statements. The finance costs are charged to the income statement over the period of the respective agreements using the sum-of-digits method.

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2.5 Construction Contracts Where the outcome of a construction contract can be reliably estimated, contract revenue and contracts costs are recognised as revenue and expenses respectively by using the stage of completion method. The stage of completion is measured by reference to the proportion of the survey of works performed to date to the estimated total contract sum. Where the outcome of a construction contract cannot be reliably estimated, contract revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expense in the year in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately. When the total of costs incurred on construction contracts plus recognised profits (less recognised losses), exceeds progress billing, the balance is classified as amount due from customers on contracts. When progress billings exceeds costs incurred plus recognised profits (less recognised losses), the balance is classified as amount due to customers on contracts.

2.6 Receivables

Receivables are stated at their anticipated realisable values.

Known bad debts are written off and specific provision is made for any

debts considered to be doubtful of collection. 2.7 Payables

Payables are stated at cost which is the fair value of the consideration to be paid in future for goods and services received.

2.8 Provisions Provisions are recognised when the Company has a present obligation as a

result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, the amount of a provision is the present value of the expenditure expected to be required to settle the obligation.

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2.9 Impairment of Assets

At each balance sheet date, the Company reviews the carrying amounts of its assets other than financial assets to determine whether there is any indication of impairment. If any such indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable amounts. Recoverable amount is the higher of net selling price and value in use, which is measured by reference to discounted future cash flows.

An impairment loss is recognised as an expense in the income statement immediately, unless the asset is carried at a revalued amount. Any impairment loss of a revalued asset is treated as a revaluation decrease to the extent of any unutilised previously recognised revaluation surplus for the same asset. Reversal of impairment losses recognised in prior years is recorded when the impairment losses recognised for the asset no longer exist or have decreased.

2.10 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction, production or preparation of assets until they are ready for their intended use or sale are capitalised as part of the cost of those assets. Other borrowing costs are recognised as expenses in the year in which they are incurred.

2.11 Revenue Recognition

(i) Construction contract

Revenue from construction contracts is recognised on the percentage of completion method as set out in Note 2.5.

(ii) Interest and rental income

Interest and rental income are recognised on an accrual basis.

2.12 Employee Benefits

Short term benefits

Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees of the Company. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensated absences, and short term non-accumulating compensated absences such as sick leave are recognised when the absences occur.

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Defined contribution plans As required by law, companies in Malaysia make contributions to the

national pension scheme, the Employees Provident Fund (“EPF”). Such contributions are recognised as an expense in the income statement as incurred.

2.13 Income Tax

Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected amount of income tax payable in respect of the taxable profit for the year and is measured using the tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts in the financial statements. In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled based on the tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date.

2.14 Foreign Currency Translations

Transactions in foreign currencies are translated into Ringgit Malaysia at

the exchange rates prevailing at the dates of the transactions. At each balance sheet date, foreign currency monetary items are translated into Ringgit Malaysia at the exchange rates ruling at the date. All exchange gains or losses are included in the income statement.

2.15 Cash and Cash Equivalents

Cash comprises cash in hand, cash at bank and demand deposits. Cash equivalents are short term and highly liquid investments that are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value against which bank overdraft balances, if any, are deducted.

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2.16 Contingencies

A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future events not wholly within the control of the Company.

Contingent liabilities and assets are not recognised in the statement of

financial position of the Company.

2.17 Share Capital and Share Issuance Expenses An equity instrument is any contract that evidences a residual interest in

the assets of the Company after deducting all of its liabilities. Ordinary shares are equity instruments.

Share capital represents the nominal value of shares that have been issued.

Dividends on ordinary shares are accounted for in shareholder’s equity as an appropriation of retained profits and recognised as a liability in the period in which they are declared.

2.18 Redeemable preference shares Preference shares are classified as equity if it is non-redeemable, or is

redeemable but only at the Company’s option, and any dividends are discretionary. Dividends thereon are recognised as distribution within equity.

Preference shares are classified as liability if it is redeemable on a specific

date or at the option of the equity holders and dividend payments are not discretionary. Dividends thereon are recognised as interest expense in profit or loss as incurred.

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3.PROPERTY, PLANT AND EQUIPMENT

Plant, Officemachinery equipment,

Freehold and site furniture, fittings Motor land Buildings equipment and renovation vehicles TotalRM RM RM RM RM RM

2015

At costBalance at beginning 1,151,969 4,451,629 46,998,663 505,864 1,474,031 54,582,156 Additions - 166,400 4,549,069 66,305 596,030 5,377,804 Disposals - - (1,067,762) - (49,145) (1,116,907)

Balance at end 1,151,969 4,618,029 50,479,970 572,169 2,020,916 58,843,053

Accumulated depreciationBalance at beginning - 178,504 15,779,923 366,448 1,046,304 17,371,179 Current charge - 89,033 5,701,952 66,344 244,551 6,101,880 Disposals - - (798,988) - (30,306) (829,294)

Balance at end - 267,537 20,682,887 432,792 1,260,549 22,643,765

Carrying amount 1,151,969 4,350,492 29,797,083 139,377 760,367 36,199,288

2014

At costBalance at beginning 1,151,969 2,213,629 21,872,660 403,102 1,339,755 26,981,115 Additions - 2,238,000 31,360,517 102,762 209,276 33,910,555 Disposals - - (6,179,514) - (75,000) (6,254,514) Written off - - (55,000) - - (55,000)

Balance at end 1,151,969 4,451,629 46,998,663 505,864 1,474,031 54,582,156

Accumulated depreciationBalance at beginning - 108,121 11,949,706 299,501 903,034 13,260,362 Current charge - 70,383 4,511,834 66,947 187,020 4,836,184 Disposals - - (626,618) - (43,750) (670,368) Written off - - (54,999) - - (54,999)

Balance at end - 178,504 15,779,923 366,448 1,046,304 17,371,179

Carrying amount 1,151,969 4,273,125 31,218,740 139,416 427,727 37,210,977

The freehold land and buildings are pledged to licensed banks for banking facilities granted to the Company.

Included in the carrying amount are the following property, plant and equipment being acquired under hire purchase loans :

2015 2014 RM RM

Plant, machinery and site equipment 24,207,398 25,925,365 Motor vehicles 432,044 310,311

24,639,442 26,235,676

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4. GROSS AMOUNT DUE FROM/(TO) CUSTOMERS

2015 2014 RM RM

Construction contract costs incurred to date 37,825,551 23,607,381 Add: Attributable profit 11,181,628 6,817,994

49,007,179 30,425,375 Less: Progress billings (49,649,218) (28,410,988)

(642,039) 2,014,387

Analysed as: Amount due from customers 6,758,450 9,298,900 Amount due to customers (7,400,489) (7,284,513)

(642,039) 2,014,387

5. TRADE RECEIVABLES

2015 2014 RM RM

Total amount 71,775,317 36,725,035 Less: Allowance for doubtful debts Balance at beginning 3,729,859 3,756,173 Current year - 648,741 Doubtful debts recovered (72,816) (675,055) Balance at end (3,657,043) (3,729,859)

68,118,274 32,995,176

The currency profile of trade receivables is as follows: Ringgit Malaysia 71,775,317 36,639,904 Singapore Dollar - 85,131

71,775,317 36,725,035

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Included in trade receivables are the following:-

(i) Retention sum receivables amounting to RM6,815,422 (2014: RM4,847,857),

(ii) An amount of RM3,686,685 (2014: RM1,324,507) due from companies in which a director of the Company has financial interests, and

(iii) An amount of RM7,152,767 (2014: RMNil) due from a company in which a person connected to the director of the Company has financial interests.

The normal credit terms granted to trade receivables range from 30 days (2014: 30 days). Other credit terms are assessed and approved on a case-by-case basis.

6. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

2015 2014 RM RM

Other receivables 206,754 1,498,348 Sundry deposits 1,848,300 852,014 Prepayments 755,700 888,093

2,810,754 3,238,455

Included in other receivables is an amount of RM35,816 (2014: RM1,158,014) due from companies in which certain directors of the Company have financial interests.

7. CASH AND BANK EQUIVALENTS

2015 2014 RM RM

Cash and cash at bank 1,988,330 849,683 Fixed deposits with licensed banks 4,402,574 3,152,975 6,390,904 4,002,658

The effective interest rates and maturity of the fixed deposits at balance sheet date range from 3.00% to 3.30% (2014: 2.75% to 3.15%) per annum and 1 to 12 months (2014: 1 to 27 months) respectively.

The fixed deposits are pledged to licensed banks for banking facilities granted to the Company.

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8. SHARE CAPITAL Number of ordinary shares of RM1 each Amount 2015 2014 2015 2014 RM RM

Authorised 5,000,000 4,500,000 5,000,000 4,500,000

Issued and fully paid Balance at beginning 4,500,000 1,500,000 4,500,000 1,500,000 Cash allotment, at par 500,000 3,000,000 500,000 3,000,000

Balance at end 5,000,000 4,500,000 5,000,000 4,500,000

9. CAPITAL REDEMPTION RESERUE This is in respect of the redemption of preference shares and is distributable by

way of issuing bonus shares to members. 10. RETAINED PROFITS

Under the single tier system, there are no restrictions on the Company to frank the payment of dividends out of its entire retained profits and all dividends paid are tax exempted in the hands of the shareholders.

11. BORROWINGS

2015 2014 RM RM

Non-current liabilities Hire purchase payables 12,066,455 14,674,531 Term loans 2,794,718 1,690,533 14,861,173 16,365,064

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2015 2014

RM RM Current liabilities Bank overdrafts 2,311,707 2,471,061 Bankers acceptance 5,856,180 3,890,000 Hire purchase payables 4,232,462 4,307,104 Term loans 718,740 138,470 Trust receipts 8,034,690 899,796

21,153,779 11,706,431

The borrowings (except for certain hire purchase payables) are secured by way of:

(i) A first party legal charge over the Company’s land and buildings; (ii) Pledge of fixed deposits of the Company; and (iii) Joint and several guarantee by the directors of the Company and a third

party.

A summary of the effective interest rates and the maturities of the borrowings are as follows:

More than More than Average one year two years effective and less and less Interest rate Within than two than five More than Per annum Total one year years years five years RM RM RM RM RM RM 2015

Bank overdrafts 7.10 to 7.85 2,311,707 2,311,707 - - - Bankers

acceptance

4.18 to 5.01

5,856,180

5,856,180

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-

- Hire purchase

payables

2.37 to 4.00 16,298,917

4,232,462

4,371,759

7,638,722

55,974 Term loans 4.70 to 6.30 3,513,458 718,740 718,740 1,525,970 550,008 Trust receipts 7.85 8,034,690 8,034,690 - - -

2014

Bank overdrafts 7.10 to 7.85 2,471,061 2,471,061 - - - Bankers

acceptance

4.18 to 5.01

3,890,000

3,890,000

-

-

- Hire purchase

payables

2.37 to 4.00 18,981,635

4,307,104

3,873,884

10,800,647

- Term loans 4.70 to 5.75 1,829,003 138,470 144,703 481,181 1,064,649 Trust receipts 7.85 899,796 899,796 - - -

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12. DEFERRED TAX LIABILITIES

2015 2014

RM RM

Balance at beginning 1,309,429 1,215,429 Transfer (to)/from income statement (121,000) 11,000

1,188,429 1,226,429 Under provision in prior years 1,000 83,000

1,189,429 1,309,429

The temporary differences on which deferred tax liabilities have been provided for are in respect of the excess of capital allowances over depreciation on property, plant and equipment.

13. REDEEMABLE PREFERENCE SHARES Number of ordinary shares of RM1 each Amount 2015 2014 2015 2014 RM RM

Authorised - 500,000 - 500,000

Issued and fully paid: Balance at beginning 500,000 300,000 500,000 300,000 Allotment, at par - 200,000 - 200,000 Redemption, at par (500,000) - (500,000) -

Balance at end - 500,000 - 500,000

The 500,000 redeemable preference shares were redeemed at a redemption price of RM1 each on 19 December 2014.

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14. TRADE PAYABLES The normal credit terms granted by trade payables range from 30 to 150 days

(2014: 30 to 150 days). Included herein is an amount of RM2,953,775 (2014: RM1,085,672) due to

companies in which certain directors of the Company have financial interests. 15. OTHER PAYABLES AND ACCRUALS

2015 2014 RM RM

Other payables 1,077,930 1,802,470 Amount due to directors 741,258 681,259

Accruals 101,626 31,506 Deposits received 52,000 52,000 1,972,814 2,567,235 Included in other payables is an amount of RM Nil (2014: RM286,089) due to a

company in which a director of the Company has financial interest. The amount due to directors and a shareholder represent advances which are non-

interest bearing, unsecured and is payable on demand. 16. CONTRACT REVENUE

Revenue represents progress billing received and receivable on construction contracts which reflects the stages of completion of the contracts.

17. PROFIT BEFORE TAXATION This is arrived at:

2015 2014 RM RM

After charging: Allowance for doubtful debts - 648,741 Audit fee - current year 20,000 20,000 - over provision in prior year 5,000 (4,000)

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2015 2014

RM RM Bad debts 962,808 772,290 Depreciation 6,101,880 4,836,184 Directors’ fee 300,000 275,000

Interest expense on: - Bankers acceptance 508,291 135,220 - Bank guarantee 175,280 52,613 - Finance - current year 570,207 706,738

- interest waived in prior year (694,365) - - Hire purchase 1,119,918 669,083 - Overdraft 153,248 92,577 - Term loan 52,588 41,483 Property, plant and equipment written off - 1 Realised loss on foreign exchange - 20,819 Rental of office equipment 7,873 21,468 Rental of premises 69,350 77,550

* Staff costs 10,574,584 8,063,878 And crediting: Debts waived by suppliers - 5,814,146 Doubtful debts recovered 72,816 675,055 Gain on disposal of property, plant and equipment 179,525 3,166,192 Interest income 33,128 116,359 Rental income 606,654 73,933

* Staff costs

- Salaries, overtime and allowance 4,092,622 3,378,507 - Wages 5,483,057 4,030,982 - Bonus 404,164 252,486 - EPF 546,259 365,830 - SOCSO 48,482 36,073 10,574,584 8,063,878

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Included in staff costs are the following:

2015 2014

RM RM (i) Directors’ emoluments - Salaries and bonus 119,600 15,000 - EPF 6,900 -

126,500 15,000 (ii) Staff cost recognised under construction cost incurred to date (Note 4) 8,416,170 5,991,946 (iii) Number of employees at balance sheet date 130 93 18. TAXATION

2015 2014

RM RM

Malaysia income tax: Based on results for the financial year - Current tax (2,359,151) (1,214,000) - Deferred tax

Relating to origination and reversal of temporary differences 126,168 (63,000) Changes in tax rate (5,168) 52,000

121,000 (11,000)

(2,238,151) (1,225,000) Over/(Under) provision in prior years - Current tax 408,355 (305,033) - Deferred tax (1,000) (83,000)

407,355 (388,033) (1,830,796) (1,613,033)

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The reconciliation of tax expense of the Company is as follows:

2015 2014 RM RM

Profit before taxation 7,756,971 5,512,523

Income tax at Malaysia statutory tax rate of 25% (1,939,243) (1,378,131) Income not subject to tax 1,510 596,775 Expenses not deductible for tax purposes (295,250) (520,644) Reduced tax rate on first RM500,000 chargeable income - 25,000 * Changes in tax rate (5,168) 52,000 (2,238,151) (1,225,000) Over/(Under) provision in prior years 407,355 (388,033) (1,830,796) (1,613,033)

* The corporate tax rate will be reduced to 24% from the year of assessment 2016 as announced in the Malaysian Budget 2014. Consequently, deferred tax liabilities are measured using this tax rate.

19. RELATED PARTY TRANSACTIONS

2015 2014 RM RM (i) Progress billings to/(from) companies in which certain directors of the Company have substantial interest

- to 13,203,476 2,129,143 - from (6,639,248) (879,215) (ii) Transactions with companies in which a corporate shareholder of the Company has substantial interest

- Debts waived - 5,814,146 - Purchase of property, plant and equipment - (5,512,899)

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20. CAPITAL COMMITMENT

2015 2014 RM RM Approved and contracted for: - Purchase of commercial office lot 3,140,000 -

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For personal use only - ASX · Net cash from financing activities 3,624,706 2,092,468 NET...

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