For personal use only - Home - Australian Securities ... Office No.11-1 Jalan Kuchai Maju 8 Kuchai Entrepreneurs Park Off Jalan Kuchai Lama 58200 Kuala Lumpur Business Address No

Company No. 726333-X

1

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

REPORT AND FINANCIAL STATEMENTS 31 MARCH 2016

CONTENTS PAGE CORPORATE INFORMATION 2 DIRECTORS’ REPORT 3 - 6 DIRECTORS’ STATEMENT 7 STATUTORY DECLARATION 7 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS 8 - 10 STATEMENT OF FINANCIAL POSITION 11 STATEMENT OF COMPREHENSIVE INCOME 12 STATEMENT OF CHANGES IN EQUITY 13 STATEMENT OF CASH FLOWS 14 - 15 NOTES TO THE FINANCIAL STATEMENTS 16 - 53

For

per

sona

l use

onl

y


2


CORPORATE INFORMATION Directors H’ng Bok Chuan Foong Chee Hoe H’ng Hup Choong Secretaries Phoon Sow Cheng Tan Peck Mooi 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 AmBank (M) Berhad CIMB Bank Berhad HSBC Bank (Malaysia) Berhad Malayan Banking Berhad OCBC Bank (Malaysia) Berhad Public Islamic Bank Berhad United Overseas Bank (Malaysia) Berhad

For

per

sona

l use

onl

y


3


DIRECTORS’ REPORT FOR THE FINANCIAL YEAR ENDED 31 MARCH 2016

The directors have pleasure in submitting their report and the audited financial statements of the Company for the financial year ended 31 March 2016. PRINCIPAL ACTIVITY The principal activity of the Company in the course of the financial year remains unchanged and consists of the provision of piling contract services. RESULTS RM Profit after taxation for the year 8,715,184 In the opinion of the directors, the results of the operations of the Company for the financial year ended 31 March 2016 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 other than those disclosed in the financial statements. 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.

For

per

sona

l use

onl

y


4

SHARE CAPITAL AND DEBENTURE During the financial year, 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 H’ng Hup Choong (appointed on 1.9.16) 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 1.4.15 Bought Sold 31.3.16 Direct Interest: H’ng Bok Chuan 4,400,000 - - 4,400,000 Foong Chee Hoe 600,000 - (600,000) - 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.

For

per

sona

l use

onl

y


5

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 (iv) which have arisen which render adherence to the existing methods of valuation of

assets or liabilities of the Company misleading or inappropriate. At the date of this report, there does not exist: (i) any charge on the assets of the Company that has arisen since the end of the financial

year which secures the liabilities of any other person, and (ii) any contingent liability in respect of the Company that has arisen since the end of the

financial year. No contingent liability or other liability of the Company has become enforceable, or is likely to become enforceable, within the period of twelve months after the end of the financial year which, in the opinion of the directors, will or may substantially affect the ability of the Company to meet its obligations as and when they fall due.

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y


31.3.16 31.3.15 1.4.14NOTE RM RM RM

ASSETS

Non-current assetsProperty, plant and equipment 4 31,753,667 36,199,288 37,210,977Investment property 5 2,500,000 - -

34,253,667 36,199,288 37,210,977

Current assetsGross amount due from customers 6 26,197,145 6,758,450 9,298,900Trade receivables 7 63,399,745 68,118,274 32,995,176Other receivables, deposits and prepayments8 8,135,095 2,810,754 3,238,455Tax recoverable - - 50,376Fixed deposits with licensed banks 9 6,824,486 4,402,574 3,152,975Cash and bank balances 184,210 1,988,330 849,683

104,740,681 84,078,382 49,585,565

TOTAL ASSETS 138,994,348 120,277,670 86,796,542

EQUITY AND LIABILITIESShare capital 10 5,000,000 5,000,000 4,500,000Revaluation reserve 11 278,494 - - Capital redemption reserve 12 500,000 500,000 - Retained profits 13 31,816,476 23,101,292 17,675,117Total equity 37,594,970 28,601,292 22,175,117

Non-current liabilitiesBorrowings 14 11,719,934 14,861,173 16,365,064 Deferred tax liabilities 15 1,348,683 1,189,429 1,309,429Redeemable preference shares 16 - - 500,000

13,068,617 16,050,602 18,174,493

Current liabilitiesGross amount due to customers 6 4,090,749 7,400,489 7,284,513Trade payables 17 58,697,426 44,287,922 24,888,753Other payables, accruals and provision 18 5,179,827 1,972,814 2,567,235Borrowings 14 19,014,760 21,153,779 11,706,431Provision for taxation 1,347,999 810,772 -

88,330,761 75,625,776 46,446,932Total liabilities 101,399,378 91,676,378 64,621,425

TOTAL EQUITY AND LIABILITIES 138,994,348 120,277,670 86,796,542

The notes set out on pages 16 to 53 form an integral part of these financial statements.

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

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2016

11

For

per

sona

l use

onl

y


2016 2015NOTE RM RM

Contract revenue 19 157,313,286 115,519,769

Contract costs (132,267,056) (94,945,810)

Attributable profit 25,046,230 20,573,959

Other income 2,342,443 1,685,606

Administrative expenses (13,911,091) (12,617,427)

Operating profit 13,477,582 9,642,138

Finance costs (1,858,090) (1,885,167)

Profit before taxation 20 11,619,492 7,756,971

Taxation 21 (2,904,308) (1,830,796)

Profit for the year 8,715,184 5,926,175

Other comprehensive income, net of tax:

278,494 -

8,993,678 5,926,175


Revaluation surplus on commercial lot

Total comprehensive income for the year

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

STATEMENT OF COMPREHENSIVE INCOMEFOR THE FINANCIAL YEAR ENDED 31 MARCH 2016

Items that will not be reclassified subsequently to profit or loss

12

For

per

sona

l use

onl

y


|------ Non-distributable ------| |-Distributable-|Capital

Share Revaluation Redemption Retained TotalCapital Reserve Reserve Profits Equity

NOTE RM RM RM RM RM

2016

Balance at beginning 5,000,000 - 500,000 23,101,292 28,601,292

Total comprehensive income for the year - 278,494 - 8,715,184 8,993,678

Balance at end 5,000,000 278,494 500,000 31,816,476 37,594,970

2015

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

Total comprehensive income for the year - - - 5,926,175 5,926,175

Transactions with owners:Cash allotment, at par 10 500,000 - - - 500,000

Redemption of redeemable preference shares 16 - - 500,000 (500,000) -

500,000 - 500,000 (500,000) 500,000

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



STATEMENT OF CHANGES IN EQUITYFOR THE FINANCIAL YEAR ENDED 31 MARCH 2016

13

For

per

sona

l use

onl

y


2016 2015RM RM

CASH FLOWS FROM OPERATING ACTIVITIESProfit before taxation 11,619,492 7,756,971 Adjustments for : Bad debts 43,908 962,808 Depreciation 5,662,121 6,101,880 Gain on disposal of property, plant and equipment (1,527,407) (179,525) Impairment loss on receivables 83,147 - Interest expense 1,858,090 1,885,167 Interest income (222,031) (33,128) Property, plant and equipment written off 2,250 -

Operating profit before working capital changes 17,519,570 16,494,173 Increase in receivables (20,171,562) (33,117,755) Increase in payables 14,257,008 18,860,724

Cash generated from operations 11,605,016 2,237,142 Income tax paid (2,295,773) (1,548,378) Income tax refunded - 458,730 Interest paid (656,763) (712,661)

Net cash from operating activities 8,652,480 434,833

CASH FLOWS FROM INVESTING ACTIVITIESInterest received 222,031 33,128 Proceeds from disposal of property, plant and equipment 1,985,000 467,138

* Purchase of property, plant and equipment (3,595,263) (3,262,804) Net cash used in investing activities (1,388,232) (2,762,538)

CASH FLOWS FROM FINANCING ACTIVITIESAdvance from directors 49,769 60,000 Drawdown of bankers acceptance 986,820 1,966,180 Drawdown of term loans 1,126,545 1,684,455 Interest paid (1,201,327) (1,172,506) Payment of hire purchase payables (4,316,435) (4,797,718) Placements of fixed deposits (2,421,912) (1,250,599) Proceeds from issuance of ordinary shares - 500,000 Redemption of redeemable preference shares - (500,000) (Repayment)/Drawdown of trust receipts (3,357,414) 7,134,894 Net cash (used in)/from financing activities (9,133,954) 3,624,706 NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS CARRIED FORWARD (1,869,706) 1,297,001



STATEMENT OF CASH FLOWSFOR THE FINANCIAL YEAR ENDED 31 MARCH 2016

14

For

per

sona

l use

onl

y


2016 2015RM RM

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS BROUGHT FORWARD (1,869,706) 1,297,001

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

CASH AND CASH EQUIVALENTS AT END (2,193,083) (323,377)

Represented by:Cash balances 184,210 1,988,330Bank overdrafts (2,377,293) (2,311,707)

(2,193,083) (323,377)

* Purchase of property, plant and equipmentTotal acquisition cost 3,809,903 5,377,804Acquired under hire purchase loans (214,640) (2,115,000)

Total cash acquisition 3,595,263 3,262,804


FOR THE FINANCIAL YEAR ENDED 31 MARCH 2016CASH FLOW STATEMENT

(Incorporated in Malaysia)Company No. 726333-X

JACK-IN PILE (M) SDN. BHD.

15

For

per

sona

l use

onl

y


16


NOTES TO THE FINANCIAL STATEMENTS – 31 MARCH 2016

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 period remains unchanged and consists of 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 29 September 2016.

2. BASIS OF PREPARATION

2.1 Statement of Compliance

The financial statements of the Company have been prepared in accordance with applicable Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and the requirements of the Companies Act,1965 in Malaysia.

2.2 Basis of Measurement

The financial statements of the Company are prepared under the historical cost convention unless otherwise indicated in the summary of accounting policies as set out in Note 3. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

For

per

sona

l use

onl

y


17

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to their fair value measurement as a whole:

- Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or

liabilities. - Level 2 - Valuation techniques for which the lowest level input that is

significant to their fair value measurement is directly or indirectly observable.

- Level 3 - Valuation techniques for which the lowest level input that is significant to their fair value measurement is unobservable.

2.3 Functional and Presentation Currency The financial statements are presented in Ringgit Malaysia (“RM”) which is also the

Company’s functional currency.

2.4 First-time Adoption of MFRS

In the previous financial years, the financial statements of the Company were prepared in accordance with Private Entities Reporting Standards (“PERS”). This is the Company’s first financial statements prepared in accordance with MFRS and MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards has been applied.

For

per

sona

l use

onl

y


18

The following accounting policies have been applied in preparing the financial statements of the Company for the financial year ended 31 March 2016, the comparative information presented in this financial statements for the financial year ended 31 March 2015 and in the preparation of the opening MFRS statement of financial position at 1 April 2014 (the Company’s date of transition to MFRS).

The transition to MFRS does not have any financial impact to the statement of financial position of the Company as at 1 April 2014 and 31 March 2015, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the financial year ended 31 March 2015 other than additional disclosure requirements. Therefore, no restatement to the comparative information is required.

2.5 Standards Issued But Not Yet Effective

The Company has not applied the following Standards that have been issued by the Malaysian Accounting Standards Board (“MASB”) but are not yet effective for the Company:

Effective for annual periods beginning on or after 1 January 2016 MFRS 14 Regulatory Deferral Accounts MFRS 10, MFRS 12 and MFRS 128 Investment Entities: Applying the Consolidation

Exception Amendments to MFRS 11 Accounting for Acquisitions of Interests in Joint Operations Amendments to MFRS 101 Disclosure Initiative Amendments to MFRS 116 and MFRS 138 Clarification of Acceptable Methods of

Depreciation and Amortisation Amendments to MFRS 116 and MFRS 141 Agriculture: Bearer Plants Amendments to MFRS 127 Equity Method in Separate Financial Statements Annual Improvements to MFRS 2012–2014 Cycle

Effective for financial periods beginning on or after 1 January 2017 Amendments to MFRS 167 Disclosure Initiatives

Amendments to MFRS 112 Recognition of Deferred Tax Assets for Unrealised Losses

Effective for annual periods beginning on or after 1 January 2018 MFRS 9 Financial Instruments (IFRS 9 issued by IASB in July 2014) MFRS 15 Revenue from Contracts with Customers Amendments to MFRS 2 Classification and Measurement of Share-based Payment

Transactions Amendments to MFRS 7 Mandatory Date of MFRS 9 and Transition Disclosures

Effective for annual periods beginning on or after 1 January 2019 MFRS 16 Leases

Effective date yet to be confirmed Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an

Investor and its Associate or Joint Venture

For

per

sona

l use

onl

y


19

The initial application of the above standards is not expected to have any material impacts to the financial statements of the Company upon adoption, except as mentioned below:

MFRS 16 Leases

The scope of MFRS 16 includes leases of all assets, with certain exceptions. A lease is defined as a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration.

MFRS 16 requires lessees to account for all leases under a single on-balance sheet model in a similar way to finance leases under IAS 17. The standard includes two recognition exemptions for lessees – leases of ‘low-value’ assets (e.g. personal computers) and short-term leases (i.e. leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e. the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e. the right-of-use asset).

Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset. Lessees will be required to remeasure the lease liability upon the occurrence of certain events (e.g. a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the re-measurement of the lease liability as an adjustment to the right-of-use asset.

Lessor accounting is substantially unchanged from today’s accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases.

Either a full or modified retrospective application is required for annual periods beginning on or after 1 January 2019 with early adoption permitted. The Company is currently assessing the financial impact of adopting MFRS 16.

MFRS 15 Revenue from Contracts with Customers MFRS 15 replaces the guidance in MFRS 111 Construction Contracts, MFRS 118

Revenue, IC Int 13 Customer Loyalty Programmes, IC Int 15 Agreements for Construction of Real Estate, IC Int 18 Transfers of Assets from Customers and IC Int 131 Revenue – Barter Transactions Involving Advertising Services. Upon adoption of MFRS 15, it is expected that the timing of revenue recognition might be different as compared with the current practices.

The adoption of MFRS 15 will result in a change in accounting policy. The Company is currently assessing the financial impact of adopting MFRS 15.

For

per

sona

l use

onl

y


20

2.6 Significant Accounting Estimates and Judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. There are no significant areas of critical judgement in applying accounting policies that have any significant effect on the amount recognised in the financial statements.

Key Sources of Estimation Uncertainty The key assumptions concerning the future and other key sources of estimation

uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

(i) Useful lives of depreciable assets The depreciable costs of plant and equipment are allocated on the straight line

basis over their estimated useful lives. Management estimates the useful lives of these assets to be within 2 to 8 years. Changes in the expected level of usage and technological developments could impact the economic useful lives and residual value of these assets.

(ii) Impairment of property, plant and equipment The Company performs an impairment review as and when there are

impairment indicators to ensure that the carrying amount of the property, plant and equipment does not exceed its recoverable amount. The recoverable amount represents the present value of the estimated future cash flows expected to arise from continuing operations. Therefore, in arriving at the recoverable amount, management exercises judgement in estimating the future cash flows, growth rate and discount rate.

(iii) Construction contracts The Company recognises construction contract revenue and expenses in the

profit or loss using the stage of completion method. The stage of completion is assessed by reference to the proportion that contract costs incurred for work performed to-date bear to the estimated total contract costs.

For

per

sona

l use

onl

y


21

Significant judgement is required in determining the stage of completion, the extent of the costs incurred and the estimated total revenue and costs, as well as recoverability of the construction projects. Total revenue also includes an estimation of the recoverable variation works that are recoverable from the customers. Using experience gained on each particular contract and taking into account the expectations of the time and materials required to complete the contract, management estimates the profitability of the contract on an individual basis at any particular time.

(iv) Impairment of loans and receivables

The Company assesses at the end of each reporting period whether there is any objective evidence that a financial asset is impaired. To determine whether there is objective evidence of impairment, the Company considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments.

Where there is objective evidence of impairment, the amount and timing of future cash flows are estimated based on historical loss experience of assets with similar credit risk characteristics.

3. SIGNIFICANT ACCOUNTING POLICIES

The following accounting policies adopted by the Company are consistent with those adopted in the previous financial year unless indicated below.

3.1 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. Capital expenditure-in-progress represents assets under construction, and which are not ready for commercial use at the end of the reporting period. Capital expenditure-in-progress is stated at cost and is transferred to the relevant category of assets and depreciated accordingly when the assets are completed and ready for commercial use.

For

per

sona

l use

onl

y


22

The residual value, useful life and depreciation method are reviewed at the end of each reporting period to ensure that the amount, method and period of depreciation are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the items of property, plant and equipment.

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 profit or loss.

3.2 Investment Property

Investment property is property which is held either to earn rental income or for capital appreciation or for both. Such property is measured initially at cost, including transaction costs. Subsequent to initial recognition, investment property is stated at fair value.

Fair value is arrived at using market-based approach undertaken by external independent qualified valuers.

Gains or losses arising from changes in the fair values of investment property are

recognised in profit or loss in the year in which they arise. Investment property is derecognised when either they have been disposed of or when

the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognised in profit or loss in the year in which they arise.

3.3 Leases The determination of whether an arrangement is, or contains, a lease is based on the

substance of the arrangement at the inception date, whether fulfilment of the arrangement is dependent on the use of a specific asset or asset or the arrangement conveys a right to use the asset, even if that right is not explicitly specific in an arrangement.

Finance lease

A finance lease which includes hire purchase arrangement, is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset to the lessee. Title may or may not eventually be transferred.

For

per

sona

l use

onl

y


23

Minimum lease payments made under finance leases are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised as finance costs in the profit or loss. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Leasehold land which in substance is a finance lease is classified as property, plant and equipment.

Operating leases

Leases where the Company does not assume substantially all the risks and rewards of

ownership are classified as operating leases and, except for property interest held under operating lease, the leased assets are not recognised on the statement of financial position. Property interest held under an operating lease, which is held to earn rental income or for capital appreciation or both, is classified as investment property.

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised in profit or loss as an integral part of the total lease expense, over the term of the lease. Contingent rentals are charged to profit or loss in the reporting period in which they are incurred.

Leasehold land which in substance is an operating lease is classified as prepaid land lease payments.

3.4 Construction Contracts

Where the outcome of a construction contract can be estimated reliably, contract revenue and contracts costs are recognised over the period of contract as revenue and expenses respectively by reference to the percentage of completion of the contract activity at the end of the reporting period. The Company uses the percentage of completion method to determine the appropriate amount of revenue and costs to be recognised in a period of the contract by reference to the proportion that contract costs incurred for work performed to date bear to the estimated total contract cost.

Where the outcome of a construction contract cannot be estimated reliably, 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 period in which they are incurred.

For

per

sona

l use

onl

y


24

Irrespective of whether the outcome of a construction contract can be estimated reliably, when it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Contract revenue comprises the initial amount of revenue agreed in the contract and variations in contract work, claims and incentive payments to the extent that it is probably that they will result in revenue and they are capable of being reliably measured.

The aggregate of the costs incurred and the profit/loss recognised on each contract is compared against the progress billings up to the year end. Where costs incurred and recognised profits (less recognised losses) exceeds progress billings, the balance is shown as amount due from customers on contracts under current assets. Where progress billings exceeds costs incurred plus recognised profits (less recognised losses), the balance is shown as amount due to customers on contracts under current liabilities.

3.5 Impairment of Non-financial Assets The carrying amounts of non-financial assets are reviewed at the end of each reporting

period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For the purpose of impairment testing, assets are grouped together into the smallest

group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (“CGU”).

The recoverable amount of an asset of CGU is the greater of its value in use and its fair

value less costs of disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognised in profit or loss if the carrying amount of an asset or

its related CGU exceeds its estimated recoverable amount. Impairment losses recognised in prior periods are assessed at the end of each reporting

period for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognised. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to profit or loss in the financial year in which the reversals are recognised.

For

per

sona

l use

onl

y


25

3.6 Financial Instruments 3.6.1 Initial recognition and measurement

A financial asset or a financial liability is recognised in the statement of financial position when, and only when, the Company becomes a party to the contractual provisions of the instrument.

A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at fair value through profit or loss, transactions costs that are directly attributable to the acquisition or issue of the financial instrument.

3.6.2 Financial instrument categories and subsequent measurement The Company categorises financial instruments as follows:

Financial assets

Loans and receivables

Loans and receivables category comprises debt instruments that are not quoted in an active market.

Financial assets categorised as loans and receivables are subsequently measured at

amortised cost using the effective interest method. Loans and receivables are classified as current assets, except for those having maturity

dates later than 12 months after the end of the reporting period which are classified as non-current.

All financial assets are subject to review for impairment.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost.

Financial liabilities are classified as current liabilities, except for those having maturity dates later than 12 months after the end of the reporting period which are classified as non-current.

3.6.3 Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount reported in the

statement of financial position if, and only if, there is currently a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

For

per

sona

l use

onl

y


26

3.6.4 Derecognition

A financial asset or part of it is derecognised, when and only when the contractual rights to the cash flows from the financial asset expire or the financial asset is transferred to another party without retaining control or substantially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in equity is recognised in the profit or loss.

A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expired. On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

3.7 Impairment of Financial Assets

All financial assets are assessed at the end of each reporting period whether there is any objective evidence of impairment as a result of one or more events having an impact on the estimated future cash flows of the asset. Losses expected as a result of future events, no matter how likely, are not recognised.

An impairment loss in respect of loans and receivables is recognised in profit or loss and is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account.

If, in a subsequent period, the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed, to the extent that the asset’s carrying amount does not exceed what the carrying amount would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in profit or loss.

3.8 Cash and Cash Equivalents

Cash comprises cash in hand, cash at bank and demand deposits. Cash equivalents are short term, 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.

For

per

sona

l use

onl

y


27

3.9 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 the end of each reporting period 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.

3.10 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is necessary to complete and prepare the asset for its intended use or sale. Capitalisation of borrowing costs commences when the activities to prepare the asset for its intended use or sale are in progress and the expenditures and borrowing costs are incurred. Borrowing costs are capitalised until the assets are substantially completed for their intended use or sale.

Other borrowing costs are recognised as expenses in the period in which they are incurred.

3.11 Income Recognition Construction contract revenue

Revenue from construction contracts is recognised on the percentage of completion method as set out in Note 3.4.

Rental income Rental income are recognised on the accrual basis. Interest income Interest income is recognised on a time proportion basis using the applicable effective

interest rate. 3.12 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.

For

per

sona

l use

onl

y


28

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 profit or loss as incurred.

3.13 Income Tax

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to a business combination or items recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted by the end of the reporting period, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities in the statement of financial position and their tax bases.

Deferred tax is not recognised for the following temporary differences: the initial recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised. Deferred tax assets are reviewed at the end of each reporting period and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Unutilised reinvestment allowance and investment tax allowance, being tax incentives that is not a tax base of an asset, is recognised as a deferred tax asset to the extent that it is probable that the future taxable profits will be available to set off against the unutilised tax incentive.

For

per

sona

l use

onl

y


29

3.14 Goods and Services Tax

Goods and Services Tax (“GST”) is a consumption tax based on the value-added concept. GST is imposed on goods and services at every production and distribution stage in the supply chain including importation of goods and services, at the applicable tax rate of 6%. Input tax that a company pays on business purchases is offset against output tax.

Revenue, expenses and assets are recognised net of GST except:

- where the GST incurred in a purchase of asset or service is not recoverable from the

authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

- receivables and payables that are stated with GST inclusive.

The net GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statements of financial position.

3.15 Foreign Currency Translation

Assets and liabilities in foreign currencies at the end of the reporting period are translated into Ringgit Malaysia at the rates of exchange approximately ruling on that date. Transactions in foreign currencies during the year have been translated into Ringgit Malaysia at the rates of exchange approximately ruling on the transaction dates. All exchange gains or losses are recognised in profit or loss.

3.16 Share Capital 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.

3.17 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.

For

per

sona

l use

onl

y


30

3.18 Contingencies Where it is not probable that an inflow or an outflow of economic benefits will be

required, or the amount cannot be estimated reliably, the asset or the obligation is not recognised in the statements of financial position and is disclosed as a contingent asset or contingent liability, unless the probability of inflow or outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent assets or contingent liabilities unless the probability of inflow or outflow of economic benefits is remote.

3.19 Related Parties

A related party is a person or entity that is related to the Company. A related party transaction is a transfer of resources, services or obligations between the Company and its related party, regardless of whether a price is charged. (a) A person or a close member of that person’s family is related to the Company if

that person: (i) Has control or joint control over the Company; (ii) Has significant influence over the Company; or (iii) Is a member of the key management personnel of the holding company of

the Company, or the Company.

(b) An entity is related to the Company if any of the following conditions applies:

(i) The entity and the Company are members of the same group. (ii) One entity is an associate or joint venture of the other entity. (iii) Both entities are joint ventures of the same third party. (iv) One entity is a joint venture of a third entity and the other entity is an

associate of the third entity. (v) The entity is a post-employment benefit plan for the benefits of employees

of either the Company or an entity related to the Company. (vi) The entity is controlled or jointly-controlled by a person identified in (a)

above. (vii) A person identified in (a)(i) above has significant influence over the

Company or is a member of the key management personnel of the holding company or the Company.

(viii) The entity, or any member of a group when it is a part, provides key management personnel services to the Company or to the parent of the Company.

For

per

sona

l use

onl

y


4.PROPERTY, PLANT AND EQUIPMENT

Plant, Officemachinery equipment, Capital

Freehold and site furniture, fittings Motor expenditureland Buildings equipment and renovation vehicles in progress TotalRM RM RM RM RM RM RM

At cost

Balance at 1 April 2014 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 31 March 2015 1,151,969 4,618,029 50,479,970 572,169 2,020,916 - 58,843,053 Additions - - 1,697,838 73,465 323,232 1,715,368 3,809,903 Disposals - - (2,097,406) - - - (2,097,406) Reclassification - (165,000) - - - 165,000 - Revaluation - 262,000 - - - - 262,000 Transferred to investment property - (2,500,000) - - - - (2,500,000) Written off - (1,400) - (850) - - (2,250)

Balance at 31 March 2016 1,151,969 2,213,629 50,080,402 644,784 2,344,148 1,880,368 58,315,300

Accumulated depreciation

Balance at 1 April 2014 - 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 31 March 2015 - 267,537 20,682,887 432,792 1,260,549 - 22,643,765 Current charge - 77,842 5,221,461 91,490 271,328 - 5,662,121 Disposals - - (1,639,813) - - - (1,639,813) Revaluation - (104,440) - - - - (104,440)

Balance at 31 March 2016 - 240,939 24,264,535 524,282 1,531,877 - 26,561,633

Carrying amount

Balance at 1 April 2014 1,151,969 4,273,125 31,218,740 139,416 427,727 - 37,210,977

Balance at 31 March 2015 1,151,969 4,350,492 29,797,083 139,377 760,367 - 36,199,288

Balance at 31 March 2016 1,151,969 1,972,690 25,815,867 120,502 812,271 1,880,368 31,753,667

The freehold land, buildings and capital expenditure in progress 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 finance lease:

31.3.16 31.3.15 1.4.14RM RM RM

Plant, machinery and site equipment 19,173,884 24,207,398 25,925,365 Motor vehicles 580,582 432,044 310,311

19,754,466 24,639,442 26,235,676

31

For

per

sona

l use

onl

y


32

5. INVESTMENT PROPERTY 31.3.16 31.3.15 1.4.14 RM RM RM At fair value Commercial lot transferred from property, plant and equipment 2,500,000 - -

(i) The investment property is pledged to a licensed bank for banking facilities granted to the Company.

(ii) The investment property is held to earn rental income and for capital

appreciation.

The amount in relation to the investment property recognised in the profit or loss are as follows:

31.3.16 31.3.15 1.4.14 RM RM RM Rental income from investment property 158,491 - - Direct operating expenses arising from investment property that generated rental income during the period 736 - -

(iii) The fair value of the investment property amounted to RM2,500,000 and is

categorised under Level 2 of the fair value hierarchy. The fair values of the investment property has been generally derived using the sales comparison approach. Selling prices of comparable properties in close proximity are adjusted for differences in key attributes such as property size, age and condition of the building. The most significant input into this valuation approach is price per square foot of comparable properties.

For

per

sona

l use

onl

y


33

6. GROSS AMOUNT DUE FROM/(TO) CUSTOMERS 31.3.16 31.3.15 1.4.14 RM RM RM Construction work-in-progress Aggregate costs incurred to date 114,650,637 37,825,551 23,607,381 Add: Attributable profit 33,999,080 11,181,628 6,817,994 148,649,717 49,007,179 30,425,375 Less: Progress billings (126,543,321) (49,649,218) (28,410,988) 22,106,396 (642,039) 2,014,387

Analysed as: Amount due from customers 26,197,145 6,758,450 9,298,900 Amount due to customers (4,090,749) (7,400,489) (7,284,513) 22,106,396 (642,039) 2,014,387

7. TRADE RECEIVABLES 31.3.16 31.3.15 1.4.14 RM RM RM Total amount 67,047,285 71,775,317 36,725,035 Less: Accumulated impairment loss Balance at beginning 3,657,043 3,729,859 3,756,173 Current year 83,147 - 648,741 Recovered (92,650) (72,816) (675,055) Balance at end (3,647,540) (3,657,043) (3,729,859) 63,399,745 68,118,274 32,995,176

For

per

sona

l use

onl

y


34

Included in trade receivables are the following:-

(i) Retention sum relating to on-going and completed projects receivable amounting to RM13,671,304 (31.3.15: RM6,815,422; 1.4.14: RM4,847,857). Retention sum are unsecured and non-interest bearing.

(ii) An amount of RM8,750,187 (31.3.15: RM10,839,452; 1.4.14: RM1,324,507) due from companies in which certain directors of the Company have financial interests.

(iii) An amount of RM869,998 (31.3.15: RM Nil; 1.4.14: RM Nil) due from a company in which a key management personnel of the Company has financial interests.

The normal credit terms granted to trade receivables are 30 days (31.3.15: 30 days; 31.3.14: 30 days). Other credit terms are assessed and approved on a case-by-case basis.

8. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

31.3.16 31.3.15 1.4.14 RM RM RM

Other receivables 3,649,779 206,754 1,498,348 Sundry deposits 1,887,280 1,848,300 852,014 Deposits for purchase of plant and machinery 861,239 - - Prepayments 1,418,593 755,700 888,093 GST claimable 318,204 - - 8,135,095 2,810,754 3,238,455

Included in other receivables are the following:-

(i) An amount of RM3,849 (31.3.15: RM35,816; 1.4.14: RM Nil) due from a company in which a director of the Company has financial interests.

(ii) An amount of RM3,444,296 (31.3.15: RM Nil; 1.4.14: RM Nil) due from a company in which a key management personnel of the Company has financial interests.

9. FIXED DEPOSITS WITH LICENSED BANKS

The effective interest rates and maturity of the fixed deposits at the end of the reporting period range from 2.90% to 3.30% (31.3.15: 3.00% to 3.30%; 1.4.14: 2.75% to 3.15%) per annum and 1 to 12 months (31.3.15: 1 to 12 months; 1.4.14: 1 to 27 months) respectively.

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

For

per

sona

l use

onl

y


35

10. SHARE CAPITAL Number of ordinary shares of RM1 each Amount 31.3.16 31.3.15 1.4.14 31.3.16 31.3.15 1.4.14 RM RM RM

Authorised: Balance at beginning 5,000,000 4,500,000 4,500,000 5,000,000 4,500,000 4,500,000 Creation - 500,000 - - 500,000 -

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

Issued and

fully paid: Balance at beginning 5,000,000 4,500,000 1,500,000 5,000,000 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 5,000,000 4,500,000 5,000,000 5,000,000 4,500,000

11. REVALUATION RESERVE

This is in respect of revaluation surplus net of deferred tax of a commercial lot included in property, plant and equipment immediately prior to its transfer to investment property.

12. CAPITAL REDEMPTION RESERVE The capital redemption reserve may be applied in paying up unissued shares of the

Company to be issued to members of the Company as fully paid bonus shares.

For

per

sona

l use

onl

y


36

13. RETAINED PROFITS

The Company falls under the single tier system and accordingly there are no restrictions on the Company to frank the payment of dividends out of its entire retained earnings and all dividends paid are tax exempted in the hands of the shareholders.

14. BORROWINGS 31.3.16 31.3.15 1.4.14 RM RM RM

Non-current liabilities Finance lease liabilities 7,784,286 12,066,455 14,674,531 Term loans 3,935,648 2,794,718 1,690,533 11,719,934 14,861,173 16,365,064

Current liabilities

Bank overdrafts 2,377,293 2,311,707 2,471,061 Bankers’ acceptance 6,843,000 5,856,180 3,890,000 Finance lease liabilities 4,412,836 4,232,462 4,307,104 Term loans 704,355 718,740 138,470 Trust receipts 4,677,276 8,034,690 899,796 19,014,760 21,153,779 11,706,431

Total borrowings 30,734,694 36,014,952 28,071,495

The borrowings (except for certain finance lease liabilities) are secured by way of:

(i) A first party legal charge over the Company’s land, buildings, commercial lot in progress and investment property;

(ii) Pledge of fixed deposits of the Company; and (iii) Joint and several guarantee by the directors of the Company.

The finance lease liabilities are secured over the leased assets as disclosed in Note 4.

For

per

sona

l use

onl

y


37

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

Average More than More than effective one year and two years interest rate Within less than and less than More than per annum Total one year two years five years five years (%) RM RM RM RM RM

31.3.16 Bank overdrafts 7.85 to 8.10 2,377,293 2,377,293 - - - Bankers’ acceptance 4.65 to 5.93 6,843,000 6,843,000 - - - Finance lease liabilities 2.37 to 4.00 12,197,122 4,412,836 4,686,322 3,093,612 4,352 Term loans 4.55 to 6.13 4,640,003 704,355 744,951 1,627,467 1,563,230 Trust receipts 5.45 4,677,276 4,677,276 - - -

31.3.15 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 - - - Finance lease liabilities 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 - - -

1.4.14 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 - - - Finance lease liabilities 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 - - -

For

per

sona

l use

onl

y


38

15. DEFERRED TAX LIABILITIES

31.3.16 31.3.15 1.4.14 RM RM RM

Revaluation surplus Deferred tax on revaluation surplus 87,946 - -

Excess of capital allowances over depreciation on property, plant and equipment

Balance at beginning 1,189,429 1,309,429 1,215,429 Recognised in profit or loss 28,835 (121,000) 11,000

1,218,264 1,188,429 1,226,429 Under provision in prior year 42,473 1,000 83,000 Balance at end 1,260,737 1,189,429 1,309,429 1,348,683 1,189,429 1,309,429

16. REDEEMABLE PREFERENCE SHARES

Number of shares of RM1 each Amount 31.3.16 31.3.15 1.4.14 31.3.16 31.3.15 1.4.14 RM 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.

The main features of the redeemable preference shares of the Company as set out in the Articles of Association are as follows:

For

per

sona

l use

onl

y


39

(i) The right to dividends attached to those preference shares shall rank in priority to all other shares in the capital of the Company and accordingly the Company’s profits shall be applied in payment of such dividends before any payment of dividends on all other shares in the capital of the Company.

(ii) The right on winding up to repayment of the capital paid up on those shares and payments of arrears of dividend down to the commencement of winding up (whether earned or declared or not) in priority to ordinary shares in the Company but to no further rights to participate in the profits or assets of the Company.

(iii) The preference shares shall not entitle the holders to receive notice of or to attend or vote at any general meeting of the Company unless the business of the meeting includes the consideration of a resolution for the winding up of a Company or reducing its capital or the sale of the undertaking of the Company or if any resolution directly modifies or abrogates any of the special rights or privileges attached to the preference shares, in which case the holders of the preference shares shall be entitled to vote on such resolution or resolutions and shall be entitled a show of hand representing one vote and under poll voting, one vote for every preference share held.

(iv) The Company or holder of the preference shares may at any time give notice in writing (“Redemption Notice”) to the holder of preference shares or the Company (as the case may be) of its intention to redeem all or any part of the preference shares which have been issued and are fully paid up on a date (“Redemption Date”) which shall be specified in the Redemption Notice.

(v) On the Redemption Date, the Company or the holder of the preference shares exercising the Right of Redemption shall be entitled and bound to redeem the preference shares specified in the Redemption Notice at par or at par plus a premium as shall be agreed between the Company and the holder of preference shares together with a sum equal to arrears of dividend declared thereon up to the date of redemption against delivery to the Company of the certificates for the shares to be redeemed, and the Company shall issue free of charge fresh certificates for any unredeemed shares.

(vi) All the provisions of the Act relating to the redemption of shares and the creation of a Capital Redemption Reserve shall be duly observed.

17. TRADE PAYABLES

Included in trade payables are the following:-

(i) An amount of RM1,183,509 (31.3.15: RM2,953,775; 1.4.14: RM1,085,672) due to companies in which certain directors of the Company have financial interests.

(ii) An amount of RM158,877 (31.3.15: RM Nil; 1.4.14: RM Nil) due to a company in which a key management personnel of the Company has financial interests.

The normal credit terms granted by trade payables range from 30 to 150 days (31.3.15: 30 to 150 days; 1.4.14: 30 to 150 days).

For

per

sona

l use

onl

y


40

18. OTHER PAYABLES, ACCRUALS AND PROVISION 31.3.16 31.3.15 1.4.14 RM RM RM Other payables 3,298,420 1,077,930 1,802,470 Amount due to directors 791,027 741,258 681,259 Accruals 188,380 101,626 31,506 Deposits received 52,000 52,000 52,000 Provision for claim (Note 24.2) 850,000 - - 5,179,827 1,972,814 2,567,235 Included in other payables is an amount of RM100,454 (31.3.15: RM Nil; 1.4.14:

RM286,089) due to companies in which a director of the Company has financial interests.

The amount due to directors represent advances which are non-interest bearing, unsecured and is payable on demand.

19. CONTRACT REVENUE

Revenue represents progress billing received and receivable on construction contracts which reflects the percentage of completion of the contracts as at the end of the reporting period.

20. PROFIT BEFORE TAXATION This is arrived at:

2016 2015 RM RM

After charging: Audit fee - current year 45,000 20,000 - under provision in prior year - 5,000 Bad debts 43,908 962,808 Depreciation 5,662,121 6,101,880 Directors’ fee 330,000 300,000 Impairment loss on receivables 83,147 -

For

per

sona

l use

onl

y


41

2016 2015 RM RM Interest expense on:

- Bankers’ acceptance 835,509 508,291 - Bank guarantee 58,292 175,280 - Finance - current year 500,097 570,207

- interest waived (890,878) (694,365) - Hire purchase 920,614 1,119,918 - Overdraft 153,743 153,248 - Term loan 280,713 52,588 Property, plant and equipment written off 2,250 - Rental of office equipment 2,850 7,873 Rental of premises 75,760 69,350

* Staff costs 12,977,932 10,574,584

And crediting:

Doubtful debts recovered 92,650 72,816 Gain on disposal of property, plant and equipment 1,527,407 179,525 Interest income 222,031 33,128 Rental income 251,763 606,654

* Staff costs

- Salaries, overtime and allowance 5,268,813 4,092,622 - Wages 6,276,932 5,483,057 - Bonus 737,795 404,164 - EPF 640,223 546,259 - SOCSO 54,169 48,482 12,977,932 10,574,584 Included in staff costs are the following: (i) Directors’ emoluments - Salaries and bonus 175,000 119,600 - EPF 20,400 6,900

195,400 126,500 (ii) Staff cost recognised under construction cost incurred to date 10,041,909 8,416,170

For

per

sona

l use

onl

y


42

21. TAXATION

2016 2015 RM RM

Malaysia income tax: Based on results for the financial year - Current tax (2,833,000) (2,359,151) - Deferred tax

Relating to origination and reversal of temporary differences (28,835) 126,168 Changes in tax rate - (5,168) (28,835) 121,000 (2,861,835) (2,238,151)

(Under)/Over provision in prior years - Current tax - 408,355 - Deferred tax (42,473) (1,000)

(42,473) 407,355 (2,904,308) (1,830,796)

The reconciliation of tax expense of the Company is as follows: 2016 2015

RM RM

Profit before taxation 11,619,492 7,756,971

Income tax at Malaysia statutory tax rate of 24% (2015: 25%) (2,788,678) (1,939,243)

Income not subject to tax - 1,510 Expenses not deductible for tax purposes (73,157) (295,250) Changes in tax rate - (5,168) (2,861,835) (2,238,151) (Under)/Over provision in prior years (42,473) 407,355 (2,904,308) (1,830,796)

For

per

sona

l use

onl

y


43

22. RELATED PARTY DISCLOSURES

(i) Related party transactions 2016 2015

RM RM Transactions with Chuan Un Chye (M) Sdn. Bhd.: - Progress billing to 2,227,292 278,846 - Progress billing from (1,573,286) (2,600,244) - Purchase of property, plant and equipment (585,000) (92,030) Transactions with APS Injection Piling (M) Sdn. Bhd.: - Progress billing to 2,736,107 2,494,404 - Progress billing from - (260,885) - Purchase of property, plant and equipment - (2,260)

Transactions with CUC Geotechnics Sdn. Bhd.: - Progress billing to 233,133 138,054 - Progress billing from (1,726,538) (2,992,075) - Sale of property, plant and equipment - 67,540 - Purchase of property, plant and equipment - (1,800,000) Transactions with Jack World Geotechnics Sdn. Bhd.: - Progress billing to 909,883 1,373 - Progress billing from (4,951,330) - Transactions with Sky Jack Sdn. Bhd.: - Progress billing from (4,745,626) - Transactions with HT Mines Sdn. Bhd.: - Purchase of property, plant and equipment (370,000) (358,600)

For

per

sona

l use

onl

y


44

Related party Relationship

Chuan Un Chye (M) Sdn. Bhd. A company in which a director of the Company, Mr H’ng Bok Chuan, is a major shareholder.

APS Injection Piling (M) Sdn. Bhd.and CUC Geotechnic Sdn. Bhd.

Companies in which Mr H’ng Hup Choong, the brother of a director of the Company, Mr H’ng Bok Chuan, is a major shareholder and director. However, Mr H’ng Hup Choong has ceased to be a shareholder and director of APS Injection Piling (M) Sdn. Bhd. on 6 April 2016 and 26 February 2016 respectively.

Jack World Geotechnics Sdn. Bhd. and Sky Jack Sdn. Bhd.

Key management personnel of the Company, Mr Ong Chin Yee, is a director.

HT Mines Sdn. Bhd.

A company in which a director of the Company, Mr H’ng Bok Chuan, is a shareholder. However, Mr H’ng Bok Chuan has ceased to be a shareholder of HT Mines Sdn. Bhd. on 13 July 2016.

(ii) Compensation of key management personnel

The remuneration of Directors and other members of key management personnel during the financial year are as follows:

2016 2015

RM RM

Salaries and other short term employee benefits - Directors 525,400 426,500

- Other key management personnel 939,703 988,063 1,465,103 1,414,563 Key management personnel are those persons including executive Directors having

authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly.

For

per

sona

l use

onl

y


45

23. CAPITAL COMMITMENT

2016 2015 RM RM Contracted and not provided for: - Purchase of commercial office lot 1,055,000 3,140,000 - Purchase of machinery 4,540,368 - 5,595,368 3,140,000

24. MATERIAL LITIGATIONS

24.1 Belleview Bina Sdn. Bhd. (“BBSB”) vs Jack-In Pile (M) Sdn. Bhd. (“JIP”)

JIP has filed a claim against BBSB for the sum of RM2,923,056 for work done. However, BBSB has countered claim that there are Liquidated and Ascertained Damages (“LAD”) of RM8,080,000. The solicitors of JIP are of the opinion that the LAD is not sustainable as it is confirmed in the minutes that the original work was completed on 25 September 2012 and the matter was delayed because of variation order of substantial works and intervening events. Certificate of Completion was issued in May 2013 but till to date final account has not been finalised and the Architect has on 11 March 2016 issued a fresh certificate of non-completion after given a further extension of time on February 2016. However, it is a term of the PAM 2006 contract that no extension of time is to be given 12 weeks after the date of Certificate of Practical Completion and further the Architect has been functus officio based on the time line in the PAM 2006 contract. As at the date of this report, JIP has commenced adjudication proceeding by serving a payment claim on BBSB.

For

per

sona

l use

onl

y


46

24.2 Ribuan Seni Sdn. Bhd. (“RSSB”) vs Jack-In Pile (M) Sdn. Bhd. (“JIP”)

RSSB has filed an action in the High Court of Shah Alam claiming for RM1,118,114 for work done based on the letter of award or in the alternative if the Court finds that there is no contract on a quantum meruit of RM1,339,206. The Company filed a defence and counterclaim and after setting off the outstanding claims from RSSB, the Company is still owed a sum of RM507,971.

On 29 July 2016, the High Court of Shah Alam has decided in favour of RSSB with

the reduced sum of RM872,416 as at 25 August 2016 (including interest and cost). The Company has provided for this liability as at the end of the reporting period (Note 18).

25. CATEGORIES OF FINANCIAL INSTRUMENTS

The table below provides an analysis of financial instruments categorised as loans and receivables (“L&R”) and financial liabilities measured at amortised cost (“FL”).

Carrying amount L&R FL RM RM RM 31.3.16 Financial assets Trade receivables 63,399,745 63,399,745 - Other receivables and refundable deposits 5,855,263 5,855,263 - Fixed deposits with licensed banks 6,824,486 6,824,486 - Cash and bank balances 184,210 184,210 - 76,263,704 76,263,704 -

Financial liabilities Trade payables 58,697,426 - 58,697,426 Other payable and accruals 4,277,827 - 4,277,827 Borrowings 30,734,694 - 30,734,694 93,709,947 - 93,709,947

For

per

sona

l use

onl

y


47

Carrying amount L&R FL RM RM RM 31.3.15

Financial assets Trade receivables 68,118,274 68,118,274 - Other receivables and deposits 2,055,054 2,055,054 - Fixed deposits with licensed banks 4,402,574 4,402,574 - Cash and bank balances 1,988,330 1,988,330 - 76,564,232 76,564,232 - Financial liabilities Trade payables 44,287,922 - 44,287,922 Other payable and accruals 1,972,814 - 1,972,814 Borrowings 36,014,952 - 36,014,952 82,275,688 - 82,275,688 1.4.14

Financial assets Trade receivables 32,995,176 32,995,176 - Other receivables and deposits 2,350,362 2,350,362 - Fixed deposits with licensed banks 3,152,975 3,152,975 - Cash and bank balances 849,683 849,683 - 39,348,196 39,348,196 -

Financial liabilities Trade payables 24,888,753 - 24,888,753 Other payable and accruals 2,567,235 - 2,567,235 Borrowings 28,071,495 - 28,071,495 Redeemable preference shares 500,000 - 500,000 56,027,483 - 56,027,483

For

per

sona

l use

onl

y


48

26. FINANCIAL RISK MANAGEMENT

The Company is exposed to a variety of financial risks arising from its operations and

the use of financial instruments. The key financial risks include credit risk, liquidity risk and interest rate risk. The Company operates within clearly defined guidelines that are approved by the Board and the Company’s policy is not to engage in speculative activities.

26.1 Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company’s exposure to credit risk arises principally from its trade receivables.

Trade receivables The Company extends to existing customers credit terms of 30 days. In deciding whether credit shall be extended, the Company will take into consideration factors such as the relationship with the customer, its payment history and credit worthiness. The Company subjects new customers to credit verification procedures. In addition, debt monitoring procedures are performed on an on-going basis with the result that the Company’s exposure to bad debts is not significant.

The maximum exposure to credit risk arising from trade receivables is represented by the carrying amount in the Company’s statement of financial position.

The ageing of trade receivables and accumulated impairment losses of the Company is as follows:

Gross Individual Net amount impairment amount RM RM RM

31.3.16

Not past due 26,601,297 - 26,601,297 1 to 30 days past due 6,878,339 - 6,878,339 31 to 60 days past due 4,665,111 - 4,665,111 More than 60 days 28,902,538 (3,647,540) 25,254,998 67,047,285 (3,647,540) 63,399,745

For

per

sona

l use

onl

y


49

Gross Individual Net amount impairment amount RM RM RM 31.3.15


1.4.14


Trade receivables that are neither past due nor impaired are creditworthy customers with good payment record with the Company. None of the Company’s trade receivables that are neither past due nor impaired have been renegotiated during the financial year.

The Company has trade receivables amounting to RM36,798,448 (31.3.15: RM32,915,006; 1.4.14: RM22,265,850) that are past due but not impaired as the management is of the view that these debts will be collected in due course.

The Company has significant concentration of credit risks in the form of outstanding

balance due from 2 (31.3.15: 2; 1.4.14: 2) receivables representing 23% (31.3.15: 30%; 1.4.14: 25%) of total receivables.

26.2 Liquidity risk

Liquidity risk is the risk the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Company actively manages its debt maturity profile, operating cash flows and availability of funding so as to ensure that all repayment and funding needs are met.

For

per

sona

l use

onl

y


50

The Company aims at maintaining a balance of sufficient cash and flexibility in

funding by keeping diverse sources of committed and uncommitted credit facilities from various banks. The table below summarises the maturity profile of the Company’s financial liabilities as at the end of the reporting period based on the undiscounted contractual payments:

More than More than

Carrying

Contractual

Within

one year and less

than

two years and less

than

More than amount cash flows one year two years five years five years RM RM RM RM RM RM 31.3.16

Interest bearing borrowings

30,734,694

32,736,148 19,839,176

5,937,281

5,127,010

1,832,681

Trade payables 58,697,426 58,697,426 58,697,426 - - -

Other payables and accruals 4,277,827 4,277,827 4,277,827 - - -

93,709,947 95,711,401 82,814,429 5,937,281 5,127,010 1,832,681

31.3.15 Interest

bearing borrowings

36,014,952

38,558,333

22,175,669

5,689,931

9,721,490

971,243

Trade payables 44,287,922 44,287,922 44,287,922 - - -


82,275,688 84,819,069 68,446,405 5,689,931 9,721,490 971,243

For

per

sona

l use

onl

y


51

More than More than

Carrying

Contractual

Within

one year and less

than

two years and less

than

More than amount cash flows one year two years five years five years RM RM RM RM RM RM

1.4.14 Interest

bearing borrowings

28,071,495

31,324,371

12,865,474

4,888,973

12,338,649

1,231,275

Redeemable preference shares 500,000 500,000 500,000 - - -

Trade payables 24,888,753 24,888,753 24,888,753 - - -


56,027,483 59,280,359 40,821,462 4,888,973 12,338,649 1,231,275

26.3 Interest rate risk

The Company’s fixed rate borrowings are exposed to a risk of change in their fair value due to changes in interest rates. The Company’s floating rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates.

The interest rate profile of Company’s interest-bearing financial instruments based on the carrying amount as at the end of the reporting period is as follows:

31.3.16 31.3.15 1.4.14 RM RM RM Fixed rate instruments Financial assets 6,824,486 4,402,574 3,152,975

Financial liabilities 12,197,122 16,298,917 18,981,635

Floating rate instruments Financial liabilities 18,537,572 19,716,035 9,089,860

For

per

sona

l use

onl

y


52

Fair value sensitivity analysis for fixed rate instruments The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the Company does not designate derivatives as hedging instruments under a fair value hedge accounting model. Therefore, a change in interest rates at the end of the reporting period would not affect profit or loss. Cash flow sensitivity analysis for variable rate instruments An increase of 25 basis point would have decreased profit before taxation by RM56,972 (31.3.15: RM28,642; 1.4.14: RM10,701) and a corresponding decrease would have an equal but opposite effect. This analysis assumes that all other variables remain constant.

27. CAPITAL MANAGEMENT The Company’s objectives when managing capital are to safeguard the Company’s

ability to continue as a going concern and to maintain an optimal capital structure so as to maximise shareholder value. The Directors monitor and determine to maintain an optimal gearing ratio that complies with debt covenants and regulatory requirements.

A licensed bank in which the Company obtains credit facilities has imposed a debt

covenant which requires the Company to maintain a net tangible asset position of RM20,000,000 or more. The Company’s strategy is to ensure it complies with this requirement as well as maintains its gearing at an acceptable level. The net tangible asset position of the Company as at the end of the reporting period is as follows:

31.3.16 31.3.15 1.4.14 RM RM RM Total assets 136,760,481 120,277,670 86,796,542 Less: Total liabilities (99,165,511) (91,676,378) (64,621,425)

37,594,970 28,601,292 22,175,117

For

per

sona

l use

onl

y


53

28. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts of financial assets and financial liabilities of the Company as

at the end of the reporting period approximate their fair values, either due to their short-term nature or that they are floating rate instruments that are re-priced to market interest rates on or near the end of the reporting period. The carrying amount of the non-current portion of the finance lease liabilities are reasonable approximation of fair value due to the insignificant impact of discounting.

29. EVENT AFTER THE REPORTING PERIOD On 30 May 2016, the shareholders of Jack-In Pile (M) Sdn. Bhd. had entered into a

share sale agreement with Jack-In Holdings Pte. Ltd. (“JIH”), a company incorporated in the Republic of Singapore, to disposed of their entire equity interest in the Company comprising 5,000,000 ordinary shares of RM1.00 each. The share transfer was completed on 14 July 2016 and the Company became a wholly-owned subsidiary of JIH thereon.

For

per

sona

l use

onl

y

Documents

For personal use only - Home - Australian Securities ... Office No.11-1 Jalan Kuchai Maju 8 Kuchai Entrepreneurs Park Off Jalan Kuchai Lama 58200 Kuala Lumpur Business Address No