87
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
10. PROPERTY, PLANT AND EQUIPMENT (CONT’D)
As of 31 December 2014, freehold land and buildings, long leasehold land and buildings and plant and
machinery of the Group with a total net book value of RM69,163,072 (2013: RM70,570,104) have been charged
as collateral to certain banks for term loans and bank borrowings granted to the Group as mentioned in Note
23 to the financial statements.
Included in property, plant and equipment of the Group are plant and equipment acquired under hire purchase
arrangements with net book value totalling RM7,994,418 (2013: RM9,221,768).
11. ASSET HELD FOR SALE
On 8 November 2013, Frontken (Singapore) Pte Ltd, a wholly-owned subsidiary of the Company, entered into
an agreement to dispose of 1,397,400 ordinary shares, representing its entire 20% equity interest in Chinyee
Engineering & Machinery Pte. Ltd. to Mencast Holdings Ltd. for a cash consideration of SGD1.7 million.
The disposal was completed in March 2014. Accordingly, the carrying value of the investment amounting to
RM1,371,418 is classified as asset held for sale.
In the previous financial year, the assets held for sale was disposed of to a third party with a total consideration
of RM985,834 resulting in a loss of RM134,425.
12. INVESTMENTS IN SUBSIDIARIES
The Company
2014
2013
RM
RM
Quoted shares outside Malaysia - at cost
32,175,037
32,175,037
Unquoted shares - at cost
52,445,878
41,408,256
84,620,915
73,583,293
Impairment of investments in subsidiaries
(1,197,852)
(982,665)
83,423,063
72,600,628
Market value of quoted shares
31,910,097
19,357,227
Unquoted shares - at cost:-
At beginning of the year
41,408,256
41,408,256
Addition during the year
11,037,622
–
At end of the year
52,445,878
41,408,256
Impairment of investments in subsidiaries:-
At beginning of the year
(982,665)
(982,665)
Addition during the year
(215,187)
–
At end of the year
(1,197,852)
(982,665)
