95
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
13. INVESTMENTS IN ASSOCIATES (CONT’D)
Details of the associates are as follows:
Country of
Effective
Name of Associates
Incorporation
Equity Interest
Principal Activities
2014 2013
% %
Indirect Associates
Frontken (Thailand)
Thailand
49
49
Provision of surface
Co., Ltd.
metamorphosis technology
using thermal spray
coating processes and a
series of complementary
processes including
mechanical and chemical
engineering works.
Chinyee Engineering &
Singapore
–
20
Provider of structural
Machinery Pte. Ltd.
components, assemblies
and kits to the aerospace
and technology industries.
On 8 November 2013, Frontken (Singapore) Pte. Ltd., a wholly-owned subsidiary of the Company, entered in
to 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 total 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 (Note 11).
Amount owing by associates
The Group
2014
2013
RM
RM
Amount owing by associates
- Trade
827,467
997,738
- Non-trade
356,295
348,931
1,183,762
1,346,669
The normal trade credit terms granted to associates range from 30 to 90 days (2013: 30 to 90 days).
The non-trade balance is unsecured, interest-free and repayable on demand. The amount owing is to be
settled in cash.
Transactions undertaken with associates during the financial year are as follows:
The Group
2014
2013
RM
RM
Frontken (Thailand) Co., Ltd.
Purchases
142,888
–
Chinyee Engineering & Machinery Pte. Ltd.
Sales
–
731,280
Purchases
–
73,634
