TIDMIKK
RNS Number : 5271Z
Inch Kenneth Kajang Rubber
27 May 2016
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
(Incorporated in Scotland)
UNAUDITED CONDENSED CONSOLIDATED
STATEMENT OF PROFIT OR LOSS FOR THE PERIODED 31 MARCH 2016
Current Preceding Current Preceding
Year Year Corresponding Year Year Corresponding
Quarter Quarter To Period
date
31.03.2016 31.03.2015 31.03.2016 31.03.2015
RM'000 RM'000 RM'000 RM'000
Group revenue 1,815 1,862 1,815 1,862
Operating expenses (5,746) (5,380) (5,746) (5,380)
Other operating income
and expenses (159) (844) (159) (844)
----------- -------------------- ----------- --------------------
Operating loss (4,090) (4,362) (4,090) (4,362)
Finance income 1,089 912 1,089 912
Finance cost (14) - (14)
Realised gain on
redemption of short
term investments 12 45 12 45
Share of results
of associate (752) 706 (752) 706
Loss before tax (3,755) (2,699) (3,755) (2,699)
Taxation (note 13) - - - -
Net Loss (3,755) (2,699) (3,755) (2,699)
=========== ==================== =========== ====================
Earnings/(Loss) Per
Share:
Basic and diluted
(sen) (0.93) (0.67) (0.93) (0.67)
Exchange Rate as at 31 March 20165:
GBP1 = RM5.6234
1RM = GBP 0.1778
(The condensed consolidated statement of profit or loss should
be read in conjunction with the Audited Financial Statements for
the year ended 31 December 2015 and the accompanying explanatory
notes attached to the interim financial statements)
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
(Incorporated in Scotland)
UNAUDITED CONDENSED CONSOLIDATED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE PERIODED 31 MARCH 2016
Current Preceding Current Preceding
Year Year Corresponding Year Year Corresponding
Quarter Quarter To Period
date
31.03.2016 31.03.2015 31.03.2016 31.03.2015
RM'000 RM'000 RM'000 RM'000
Net loss for the period (3,755) (2,699) (3,755) (2,699)
Other comprehensive
(loss)/income :
Revaluation of available-for-sale
investments
and short term investments - 458 - 458
Reclassification adjustments
on - - - -
short term investments
Revaluation of freehold - - - -
lands
Exchange differences
on translating foreign
operations 30 1,179 30 1,179
Total comprehensive
(loss)/income for
the period (3,725) (1,062) (3,725) (1,062)
----------- -------------------- ----------- --------------------
(The condensed consolidated statement of comprehensive income
should be read in conjunction with the Audited Financial Statements
for the year ended 31 December 2015 and the accompanying
explanatory notes attached to the interim financial statements)
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
(Incorporated in Scotland)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
AS AT 31 MARCH 2016
31.03.2016 31.12.2015
Notes RM'000 RM'000
(Unaudited) (Audited)
ASSETS
Non-current assets
Property, plant & equipment 16 463,336 462,381
Intangible assets 17 93 35
Investment properties 18 71 71
Investment in associated
undertaking 20 23,988 24,740
Goodwill on consolidation 21 71 71
Available-for-sale investments 22 79 84
487,638 487,382
------------ -----------
Current assets
Inventories 1,378 1,555
Trade and other receivables 91,064 93,820
Short term investments 23 106,759 110,422
Cash and cash equivalents 24 28,052 26,755
------------ -----------
227,253 232,552
------------ -----------
TOTAL ASSETS 714,891 719,934
============ ===========
EQUITY AND LIABILITIES
Equity attributable to
shareholders of the Company
Share capital 287,343 287,343
Share premium 8 8
Property revaluation
reserve 228,085 228,085
Investment revaluation
reserve 15,705 15,222
Foreign currency translation
reserve (30) (190)
Retained earnings 117,428 123,821
------------ -----------
648,539 654,289
Less : Treasury shares 25 (15,980) (15,980)
TOTAL EQUITY 632,559 638,309
------------ -----------
Current liabilities
Trade and other payables 6,214 5,507
Taxation payable 75 75
------------ -----------
6,289 5,582
------------ -----------
Non-current liabilities
Employee entitlements 15 15
Deferred tax liabilities 76,028 76,028
------------ -----------
76,043 76,043
------------ -----------
TOTAL LIABILITIES 82,332 81,625
------------ -----------
TOTAL EQUITY AND LIABILITIES 714,891 719,934
============ ===========
Net assets per share 1.57 1.58
(The condensed consolidated statement of financial position
should be read in conjunction with the Audited Financial Statements
for the year ended 31 December 2015 and the accompanying
explanatory notes attached to the interim financial statements)
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
(Incorporated in Scotland)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
FOR THE PERIODED 31 MARCH 2015
Share Share Property Investment Foreign Retained Treasury Total
Capital Premium Revaluation Revaluation Exchange Earnings Shares Equity
Reserve Reserve Reserve
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
-------- -------- ------------ ------------ --------- --------- --------- --------
3 Months ended 31
March 2016
At 1 January
2016 287,343 8 228,085 15,222 (190) 123,821 (15,980) 638,309
Loss for the
period - - - - - (3,755) - (3,755)
Other comprehensive
(loss)/income:
Revaluation -
of freehold
lands - - - - - -
Revaluation -
of investments - - - - - -
Foreign currency
translation - - - 161 - - 161
Total comprehensive
(loss)/income - - - 161 (3,755) - (3,594)
-------- -------- ------------ ------------ --------- --------- --------- --------
Other movements: - - - - (2,638) - (2,638)
At 31 March
2016 287,343 8 228,085 15,705 (30) 117,428 (15,980) 632,559
======== ======== ============ ============ ========= ========= ========= ========
3 Months ended 31
March 2015
At 1 January
2015 287,343 8 287,371 12,312 (1,303) 133,043 (15,980) 702,794
Loss for the
period - - - - - (2,699) - (2,699)
Other comprehensive
income/(loss):
Revaluation -
of freehold
lands - - - - - - -
Reclassification
adjustments
on redemption -
of short
term investments - - - - - - -
Revaluation
of investments - - - 458 - - - 458
Foreign currency
translation - - - - 929 250 - 1,179
Total comprehensive
(loss)/income - - - 458 929 (2,449) - (1,062)
-------- -------- ------------ ------------ --------- --------- --------- --------
Other movements:
At 31 March
2015 287,343 8 287,371 12,770 (374) 130,594 (15,980) 701,732
======== ======== ============ ============ ========= ========= ========= ========
(The condensed consolidated statement of changes in equity
should be read in conjunction with the Audited Financial Statements
for the year ended 31 December 2015 and the accompanying
explanatory notes attached to the interim financial statements)
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
(Incorporated in Scotland)
UNAUDITED CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
FOR THE PERIODED 31 MARCH 2016
3 months ended
31.03.2016 31.03.2015
RM'000 RM'000
Cash flows from operating
activities
Group operating loss (4,090) (4,362)
Adjustments for :
Dividend income - -
Depreciation and amortisation 1,071 327
Operating loss before changes
in working capital (3,019) (4,035)
Changes in working capital:
Decrease in inventories 177 484
Increase/(decrease) in trade
and other receivables 2,756 (11,985)
Increase/(decrease) in trade
and other payables 707 46
Tax paid 0 (70)
----------- -----------
Net cash used in operating
activities 621 (15,560)
----------- -----------
Investing activities
Interest and dividends received 1,089 912
Short term investments 2,343 7,600
Assets under construction (329) (1,410)
Payment to acquire property,
plant and equipment (2,427) (146)
----------- -----------
Net cash generated from investing
activities 676 6,956
----------- -----------
Increase/(decrease) in cash
and cash equivalents 1,297 (8,604)
Cash and cash equivalents
at 1 January 26,755 43,738
Cash and cash equivalents
at 31 March 28,052 35,134
=========== ===========
Cash and cash equivalents
comprise of :
Cash and bank balances 4,147 5,543
Short term deposits 23,905 29,591
------- -------
28,052 35,134
======= =======
(The condensed consolidated cash flow statements should be read
in conjunction with the Audited Financial Statements for the year
ended 31 December 2015 and the accompanying explanatory notes
attached to the interim financial statements)
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
NOTES TO THE UNAUDITED CONDENSED FINANCIAL INFORMATION
FOR THE PERIODED 31 MARCH 2016
1. Basis of preparation and accounting policies
1.1 Reporting entity
Inch Kenneth Kajang Rubber Public Limited Company ("the
Company") is a company incorporated in Scotland with its registered
office at 7 Castle Street, Edinburgh EH2 3AP, Scotland. The
principal operating office is at 22(nd) Floor Menara Promet (KH),
Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia. All of the
operations of the Company and its subsidiaries are located in
Malaysia and Thailand.
The consolidated unaudited financial information of the Company
as at 31 March 2016 includes the Company, its subsidiaries and its
interest in an associated undertaking (together referred to as the
"Group").
1.2 Basis of preparation
The unaudited financial information has been prepared on a going
concern basis and in accordance with IAS34 Interim Financial
Reporting. The financial information has been prepared under the
historical cost convention except for the fair value measurement of
available-for-sale investments and freehold estate lands. The
financial information is also presented to comply in all material
respects of the requirement of the Malaysian FRS 134 Interim
Financial Reporting and Chapter 9 of the Bursa Malaysia Listing
Requirements.
The unaudited quarterly consolidated financial information to 31
March 2016 included in this Announcement has been prepared by
applying accounting policies consistent with those used in the
preparation of the most recent audited financial statements of the
Group, being for the year ended 31 December 2015. The consolidated
financial statements of the Group for the year ended 31 December
2015 are available at Company website, Bursa Malaysia website, the
Company's registered office in Scotland and its operating office in
Malaysia.
1.3 Changes in accounting policies
On 19 November 2011, the Malaysian Accounting Standards Board
("MASB") issued a new MASB approved accounting framework, the
Malaysian Financial Reporting Standards ("MFRS Framework"). The
MFRS Framework is to be applied by all Entities Other Than Private
Entities for annual periods beginning on or after 1 January 2012,
with the exception of entities that are within the scope of MFRS
141 "Agriculture" and/or IC Interpretation 15 "Agreements for
Construction of Real Estate", including their parent, significant
investor and venturer (herein called "Transitioning Entities").
Based on the MASB announcement on 2 September 2014, adoption of
the MFRS Framework by Transitioning Entities will only be mandatory
for annual periods beginning on or after 1 January 2017.
The subsidiaries within the Group fall within the scope
definition of Transitioning Entities and have opted to defer
adoption of the new MFRS Framework. However the Group financial
statements will continue to be prepared using the IFRS Framework
for the financial statements for the year ending 31 December 2017.
The subsidiaries expect to be in a position to fully comply with
these requirements for the financial year ending 31 December
2017.
The Group foresees that there will be no material impact on the
financial statements as the real estate business would only be
operational after 2016 and the current oil palm plantation has
already exceeded its normal economic lifespan.
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE PERIODED 31 MARCH 2016
1. Basis of preparation and accounting policies (continued)
1.4 Non-statutory accounts
The financial information contained in this report does not
constitute full statutory accounts within the meaning of Section
434 of the United Kingdom's Companies Act 2006.
1.5 Independent auditors' report of preceding financial year ended 31 December 2015
There was no qualification made on the preceding audited
financial statements for the year ended 31 December 2015, further
it did not contain a statement under section 498(2) or 498(3) of
the Companies Act 2006 and did not include reference to any matters
to which the auditor drew attention by way of emphasis.
1.6 Approval by Board of Directors
This consolidated interim financial information was approved by
the Board of Directors on 24 May 2016.
2. Review of performance
The Group's turnover was RM1.815 million for the first quarter
ended 31 March 2016 as compared to RM1.862 million for the
corresponding first quarter in the preceding year. The slight
decrease in Group's turnover by RM0.05 million is mainly due to the
lower market price of CV (constant viscosity) rubber blocks
produced by the subsidiary in Thailand. The tourism division
however improved their revenue by RM0.2 million during this
financial period under review.
The revenue of the associate company, Concrete Engineering
Products Berhad ("CEPCO") for the 3 months ended 31 March 2016
reduced to RM31.89 million (IKKR's share: RM7.14 million) compared
to RM47.62 million (IKKR's share: RM10.67 million) in the preceding
year, a decrease of RM3.53 million in respect of IKKR's share. The
decreased sales volume is mainly due to lower actual deliveries
arising from the festivities and holidays during this quarter.
The Group's loss before tax for the first quarter ended 31 March
2016 was RM3.755 million as compared to a loss of RM2.699 million
for the corresponding first quarter ended 31 March 2015. The loss
incurred was partly due to the reduction in revenue derived from
the manufacturing division and the share of loss from Cepco.
3. Comparison with preceding quarter
The Group recorded a pre-tax loss of RM3.755 million for the
current quarter under review compared to a pre-tax loss of RM0.305
million in the 4th quarter ended 31 December 2015. The loss
incurred in the last 4th quarter ended 31 December 2015 was mainly
due to the loss incurred at the tourism division as the resort was
not in full operations at that time.
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE PERIODED 31 MARCH 2016
4. Commentary on prospects
Effort to develop our land bank in Kajang is aggressively being
pursued as this will be the main income driver for the Group. We
have undertaken a very thorough planning process as we have to
ensure that the development project will be a success, not only for
the Company but also for the town of Kajang. We however do not
expect to see the returns during the current financial year.
After the refurbishment at our resort, we are now looking
forward for higher revenue to be generated from our tourism sector,
and we expect that our manufacturing sector will at least be at a
breakeven level as rubber prices have not been fluctuating
aggressively as before. Our associate company, CEPCO, is also
expected to do better this year with their new projects coming in.
With that scenario in place, the Board therefore anticipates a
better performance by the Group for this financial year.
5. Comparison with profit forecasts
As the Group does not issue profit forecasts, no comparison can
be made.
6. Changes in composition of the Group
There were no changes in the composition of the Group during the
financial period under review.
7. Status of corporate proposals
There are no corporate proposals that have been announced but
not completed as at the date of this announcement.
8. Realised and Unrealised Profits
The breakdown of retained profits of the Group as at 31 March
2016, pursuant to the format prescribed by Bursa, is as
follows:
As at As at
31 Mar 31 Dec
2016 2015
RM'000 RM'000
Total Retained Profits of the Company
and its subsidiaries:
- Realised 129,906 133,187
- Unrealised 122 90
---------- --------
130,028 133,277
Total share of Retained Profits/(Losses)
from CEPCO:
- Realised - -
- Unrealised (5,293) (2,149)
---------- --------
(5,293) (2,149)
Less : Consolidation
effects (7,307) (7,307)
---------- --------
Total Group Retained
Profit 117,428 123,821
========== ========
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE PERIODED 31 MARCH 2016
9. Seasonal or cyclical factors
The performance of the Group was not subject to any material
seasonal or cyclical fluctuations. There is however some
seasonality fluctuation in the manufacturing and tourism
sector.
10. Material changes in estimates
There were no material changes in accounting estimates of
amounts, reported in prior interim periods of the current financial
year or in prior financial year, that have a material effect in the
current quarter.
11. Segmental reporting
Segmental reporting for the period ended 31 March 2016 is as
follows:
Plantation Tourism Manufacturing Others Total
RM'000 RM'000 RM'000 RM'000 RM'000
----------- -------- -------------- -------- --------
Revenue
From external
customers 54 1,121 605 36 1,816
Segment revenues 54 1,121 605 36 1,816
Finance income - 21 - 1,068 1,089
Share of profit
of CEPCO - - - (752) (752)
Realised gain - (12) - - -
on redemption
of short term
investment
Depreciation
and amortisation (7) (152) (410) - (569)
Other expenses (64) (1,672) (1,073) (2,542) (5,351)
----------- -------- -------------- -------- --------
Segment profit/(loss) (10) (670) (877) (1,366) (3,755)
----------- -------- -------------- -------- --------
Segment assets 115,032 32,748 9,722 557,389 714,891
----------- -------- -------------- -------- --------
Segment liabilities 1,503 1,906 35 78,889 82,332
----------- -------- -------------- -------- --------
Other disclosures
Investment in
CEPCO - - - 23,988 23,988
Capital expenditure
Tangible - 2,326 - 32 2,358
Assets under
construction 329 - - - 329
Intangible - 62 - - 62
(As at 31 March 2016, the revenue of our associate company,
Cepco is RM31.888 million for the 3 months ended 31 March 2016
(IKKR's share: RM7.143 million)
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE PERIODED 31 MARCH 2016
12. Impairment in value of subsidiaries and associate
There are no impairment to be incurred in investment in
subsidiaries and associate during the financial period ended 31
March 2016.
13. Taxation
Current Cumulative
Quarter Year To-Date
Ended
31 Mar 31 Mar
2016 2016
RM'000 RM'000
Corporation taxation - -
- credit/(charge)
======== =============
Other than the subsidiary in Thailand which is a tax resident
there, the Company and the Group are tax resident in Malaysia. The
Group is liable to corporation tax in Malaysia and Thailand but is
not subject to United Kingdom corporation tax.
The effective tax rate on the Group's loss is higher than the
statutory tax rate substantially due to the non-taxability of
losses due to impairment in investments and stocks.
14. Loss per share
The basic and diluted loss per share for the current quarter and
cumulative year to-date have been computed based on Group's loss
for the financial current quarter/cumulative year to-date divided
by the weighted average number of ordinary shares of GBP0.10 each
in issue after adjusting for movements in treasury shares during
the financial current quarter/cumulative year to-date. The Company
does not have any outstanding share options or other potentially
dilutive financial instruments currently in issue.
Cumulative Year
Current Quarter To-date
Ended Ended
31 Mar 31 Mar 31 Mar 31 Mar
2016 2015 2016 2015
Net loss
attributable
to the owners
of the Company
(RM'000) (3,754) (2,699) (3,754) (2,699)
-------- -------- -------- --------
Weighted
average
number of
ordinary
shares in
issue after
adjusting
for movements
in treasury
shares (No.
of Shares
('000)) 403,209 403,209 403,209 403,209
-------- -------- -------- --------
Basic and
diluted
loss per
share (Sen) (0.93) (0.67) (0.93) (0.67)
-------- -------- -------- --------
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE PERIODED 31 MARCH 2016
15. Dividends proposed and paid
Detail of the interim dividend proposed and paid by the Board of
Directors are as follows:
Interim dividend for financial year ended 31 December 2015
Approved and declared on 28 April 2016
Date paid 30 May 2016
Number of ordinary shares on which dividends were paid ('000) 403,209.2
Dividend per share (single-tier) GBP0.002 (RM0.0116)
Net dividend paid (RM'000) 4,677
16. Property, plant & equipment
Prepaid Assets
Land and under
Freehold Land Buildings Others Total
Lands Improvements Construction
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
--------- ------------- ---------- ------------- ------- --------
Cost
At 1 January
2016 449,623 3,639 21,518 4,729 9.772 489,281
Additions - - 1,995 329 363 2,756
Disposal - - - - - -
Exchange differences - - - - - -
--------- ------------- ---------- ------------- ------- --------
At 31 March
2016 449,623 3,639 21,518 5,058 10,132 492,037
--------- ------------- ---------- ------------- ------- --------
Accumulated
depreciation
At 1 January
2016 - 1,216 17,639 - 8,045 26,900
Charge for
period - 16 586 - 439 1,067
On disposal - - - - - -
Exchange differences - (30) (152) - (315) (497)
--------- ------------- ---------- ------------- ------- --------
At 31 March
2016 - 1,202 18,073 - 8,169 28,701
--------- ------------- ---------- ------------- ------- --------
Net book value
At 31 March
2016 449,623 2,437 3,445 5,058 1,963 463,336
========= ============= ========== ============= ======= ========
At 31 December
2015 449,623 2,423 3,879 4,729 1,727 462,381
========= ============= ========== ============= ======= ========
17. Intangible assets
Computer software and
corporate website creation
Group and Company 31 Mar 31 Dec
2016 2015
RM'000 RM'000
--------- ---------
Cost
At 1 January 106 75
Additions 62 31
Disposals - -
--------- ---------
Total 168 106
--------- ---------
Accumulated depreciation
At 1 January 71 55
Charge for period 4 16
On disposals - -
--------- ---------
Total 75 71
--------- ---------
Net book value 93 35
========= =========
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE PERIODED 31 MARCH 2016
18. Investment Property
Group 31 Mar 31 Dec
2016 2015
RM'000 RM'000
--------- ---------
Cost
At 1 January 100 100
Transfer from property, - -
plant & equipment
Total 100 100
--------- ---------
Accumulated depreciation
At 1 January 29 28
Charge for the year - 1
Total 29 29
--------- ---------
Net book value
Total 71 71
========= =========
Included in investment property is apartment at Amber Tower Seri
Mas Condominium, Cheras, Kuala Lumpur.
The investment property is valued at cost less accumulated
depreciation. The fair value of the investment property is
estimated at RM0.3 million.
19. Carrying amount of property, plant and equipment
Fair value measurement of the Group's and Company's freehold
lands
The Group's freehold lands are stated at their revalued amounts,
being the fair value at the date of revaluation. In order to
establish the 31 December 2015 valuation of the Group's freehold
lands, valuations were obtained.
-- On 18 January 2016 by Nilai Properties Consultants Sdn Bhd
(V(1) 0065), an independent valuer not related to the Group, using
the open market basis method. The total valuation of the land in
Kajang and Bangi at 31 December 2015 was at RM431.5 million. The
Group's lands are currently being used for the Group's plantation
activities for growing of oil palm fresh fruit bunches. The Group
has been given consent for the change of use of the lands. Further
commentary on the Group's plans for its land is included in the
Chairman's Statement.
There is no indication of any significant difference between the
carrying amount and market values of land and buildings shown above
at 31 December 2015 except freehold lands which are held under Inch
Kenneth Kajang Rubber Public Limited Company, Inch Kenneth
Development (M) Sdn Bhd and Motel Desa Sdn Bhd. The historical cost
of the above freehold lands of the Group is RM107.242 million and
of the Company is RM0.407 million. There are no restrictions on the
title of the Group's property, plant and equipment.
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE PERIODED 31 MARCH 2016
19. Carrying amount of property, plant and equipment (continued)
The fair values of all the freehold lands of the Group and
Company are classified as Level 2. There were no transfers between
Levels 1 and 2 during current quarter under review.
Based on IFRS 13, a three-level fair value hierarchy as
follows:
Level 1: Quoted prices (unadjusted) in active markets for
identical assets or liabilities;
Level 2: Inputs other than quoted prices included within Level 1
that are observable for the assets or liabilities, either directly
(i.e. as prices) or indirectly (i.e. derived from prices);
Level 3: Inputs for the assets or liabilities that are not based
on observable market date (unobservable inputs).
Assets under construction
This represents 22 units of low cost terrace houses under
construction at Dunedin estate, Mukim of Semenyih. The total
contract sum is approximate RM4 million. The construction is
expected to be completed in second half of year 2016.
20. Investment in associated undertaking
The Group's investment in associated undertaking represents a
22.40% interest in Concrete Engineering Products Berhad ("CEPCO"),
a public company incorporated in Malaysia. The principal activity
of CEPCO is the manufacture and distribution of prestressed spun
concrete piles and poles. The Group's investment in CEPCO is
accounted for under the equity accounting method as follows:
31 Mar 2016
RM'000
Shares
At 1 January 2016 and 31 March
2016 40,914
Share of retained profits
At 1 January 2016 15,441
Share of profit for 2016 (752)
--------------
At 31 March 2016 14,689
--------------
Share of dividend
At 1 January 2016 (1,104)
Share of dividend 2016 -
----------------
At 31 March 2016 (1,104)
----------------
Impairment of goodwill
At 1 January 2016 (30,511)
Impairment 2016 -
----------------
At 31 March 2016 (30,511)
----------------
Net book value
At 31 March 2016 23,988
================
At 31 December 2015 24,740
================
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE PERIODED 31 MARCH 2016
20. Investment in associated undertaking (continued)
The Group's share of the net assets of
CEPCO as at 31 Mar 2016 comprised:
31 Mar
2016
RM'000
Share of assets
Share of non-current assets 19,552
Share of current assets 28,659
---------
48,211
---------
Share of liabilities
Share of non-current liabilities (2,256)
Share of current liabilities (20,459)
---------
(22,715)
---------
Share of net assets 25,495
Goodwill (net of impairment) arising
on the acquisition of CEPCO (1,507)
Carrying value of CEPCO 23,988
=========
The Group's share of the results of CEPCO for the financial
period ended 31 March 2016 was as follows:
31 Mar
2016
RM'000
Share of revenue 7,143
=========
Share of operating profit (179)
Share of finance costs (213)
Share of taxation (360)
Share of profit for the financial
period - included in Group statement
of profit or loss (752)
=========
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE PERIODED 31 MARCH 2016
21. Goodwill on consolidation
31 Mar 31 Dec
2016 2015
RM'000 RM'000
At cost
At 1 January 4,573 4,573
Arising from acquisition - -
of new subsidiary
Total 4,573 4,573
------- -------
Accumulated impairment
At 1 January (,4,502) (4,502)
Impairment losses - -
Total (4,502) (4,502)
--------- --------
Carrying amount at end
of the financial period 71 71
=== ===
22. Available-for-sale investments
31 Mar 31 Dec
2016 2015
Quoted shares: RM'000 RM'000
Balance at 1 January 84 57
Disposal of investments - -
Fair value adjustments (5) 27
Balance at fair values 79 84
======= =======
23. Short term investments
31 Mar 31 Dec
2016 2015
RM'000 RM'000
Investments on unit trusts
with:
Licensed investment banks 106,759 110,422
======== ========
Unquoted unit trusts are measured at mark to market based on the
net asset value at each reporting date. The time weighted rate of
return of these investments at the reporting date were between
2.50% and 3.41% (2014: 1.76% to 3.47%).
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE PERIODED 31 MARCH 2016
24. Cash and cash equivalents
31 Mar 31 Dec
2016 2015
RM'000 RM'000
Cash at bank 4,059 2,763
Cash in hand 88 66
Deposits with Licensed
banks 22,823 22,683
Investments Licensed banks 1,082 1,243
Total 28,052 26,755
======= =======
The effective interest rates of deposits at the reporting date
were between 2.64% and 4.08% (2015: 1.5% to 3.25%). Included in
Group's 2016 deposits with licensed banks is the short term
deposits totalling to RM27,588 which was pledged with commercial
banks as collateral for issuing letters of guarantee.
The investments with licensed banks are qualified as a cash
equivalent as they are readily convertible to a known amount of
cash with an insignificant risk of changes in value.
25. Repurchases equity securities - Treasury Shares
Share buyback by the Company
A total of 17,540,800 shares were bought back and retained as
treasury shares as at 31 March 2016 at the total cost of RM15.98
million (average of RM0.9110 per share). However during the current
quarter, there was no share buyback and no resale or cancellation
of treasury shares.
Subsequent to the financial period ended 31 March 2016, the
Company has not repurchased any of its issued ordinary shares. The
issued and paid up share capital of the Company remains at
420,750,000 ordinary shares of GBP0.10 each.
26. Profit on sale of unquoted investments and/or properties
There were no sales of unquoted investments and/or properties
outside the ordinary course of business of the Group for the period
under review.
27. Off balance sheet financial instruments
During the period under review, the Group has not entered into
any financial instruments contract involving off "statement of
financial position".
28. Changes in material contingent liabilities or contingent assets
There have been no changes in material contingent liabilities or
contingent assets since the last annual statement of financial
position date.
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
FOR THE PERIODED 31 MARCH 2016
29. Notes to the statement of profit or loss
Included in the statement of profit or loss for the current
quarter and financial year-to-date, are as follows:-
Current Current
Quarter year-to-date
31 Mar 31 Mar
2016 2016
RM'000 RM'000
Interest income 1,088 1,088
Other income including
investment income 225 225
Depreciation and amortisation (1,071) (1,071)
Provision for or write-off
of receivables - -
Provision for or write-off
of assets - -
Provision for or write-off
of inventories - -
Gain/(loss) on disposal
of quoted/unquoted investments - -
Realised gain on redemption
of short term investments 12 12
Gain on disposal of assets - -
Impairment of associate - -
Provision for contingent
liability - -
Foreign exchange loss (310) (310)
Decrease in fair value
of quoted investment (5) (5)
30. Debt and equity securities
On 16 June 2015 the Company obtained approval from its
shareholders for the renewal of the proposed purchase of up to ten
percent (10%) of the issued and paid-up share capital of the
Company.
During the first quarter of year 2016, the Company has not
repurchased any of its issued ordinary shares from the open market.
The Company held a total of 17,540,800 treasury shares as at 31
March 2016.
Apart from the above, there were no other issues or repayments
of debt securities or equity securities, share cancellations,
shares held as treasury shares or re-sale of treasury shares for
the current quarter.
31. Material litigation
There was no material litigation against the Group for the
period under review.
32. Significant events during and after the year end
No significant events occurred during or after the period under
review.
33. Related party transactions
Transactions within the Group have been eliminated in the
preparation of the financial information set out in this report and
are not disclosed in this note. Balance and transaction with other
related parties are disclosed under the relevant notes.
No related party transactions have taken place during the
current financial period under review which have materially
affected the financial position or the performance of the group.
The nature and amounts of related party transactions in the three
months period of the current financial year are consistent with
those reported in the group's Annual Report and Accounts 2015.
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRFPGUGCAUPQURM
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