98
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
16. FIXED DEPOSITS WITH LICENSED BANKS
Fixed deposits with licensed banks of the Group and of the Company earn effective interests ranging from
0.25% to 3.50% (2013: 0.25% to 3.10%) and 2.90% to 3.60% (2013: 2.87% to 2.93%) per annum. The fixed
deposits of the Group and of the Company have average maturity periods ranging from 14 to 365 days (2013:
7 to 365 days) and 14 to 93 days (2013: 7 to 22 days).
The fixed deposits of the Group and of the Company amounting to RM4,240,380 (2013: RM482,406) and
RM1,008,049 (2013: Nil) are pledged to licensed banks as security for banking facilities granted to the Group
and the Company.
Pursuant to the Services Agreement (“SA”) entered between TTES Frontken Integrated Services Sdn. Bhd.
(formerly known as TTES Team & Specialist Sdn. Bhd.) (“TTES”) and its customers, TTES is required to pledge
the fixed deposits with licensed banks as security for the projects that are secured by TTES. Based on the
SA, the projects will be completed by 2016. Hence, the fixed deposits are classified as non-current assets.
17. INVENTORIES
The Group
2014
2013
RM
RM
At cost:
Raw materials
4,001,682
5,596,649
Work-in-progress
6,125,305
2,596,323
Finished goods
145,387
5,464,585
10,272,374
13,657,557
Recognised in profit or loss:
Inventories recognised as cost of sales
10,851,404
7,707,691
Allowance for impairment loss in inventories
937,972
–
None of the inventories is carried at net realisable value.
18. AMOUNT OWING BY A CONTRACT CUSTOMER
The Group
2014
2013
RM
RM
Contract costs incurred plus recognised profits
88,659,311
1,531,670
Less: Progress billings
(86,822,311)
(1,531,670)
1,837,000
–
Presented as:
Amount owing by a contract customer
1,837,000
–
