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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
10.
PROPERTY, PLANT AND EQUIPMENT (CONT’D)
As of 31 December 2015, freehold land and buildings, long leasehold land and buildings and plant and machinery of the
Group with a total net book value of RM76,256,680 (2014: RM69,163,072) have been charged as collateral to certain
banks for term loans and bank borrowings granted to the Group as mentioned in Note 22 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 RM3,219,816 (2014: RM7,994,418).
11.
INVESTMENTS IN SUBSIDIARIES
The Company
2015
2014
RM
RM
Quoted shares outside Malaysia - at cost
-
32,175,037
Unquoted shares - at cost:
- In Malaysia
21,166,738
21,166,738
- Outside Malaysia
67,496,426
31,279,140
88,663,164
52,445,878
Impairment of investments in subsidiaries
(987,241)
(1,197,852)
87,675,923
83,423,063
Market value of quoted shares
Not applicable
31,910,097
Unquoted shares - at cost:
At beginning of the year
52,445,878
41,408,256
Reclassification from quoted shares
32,175,037
-
Addition during the year
5,103,100
11,037,622
Disposal during the year
(1,060,851)
-
At end of the year
88,663,164
52,445,878
Impairment of investments in subsidiaries:
At beginning of the year
(1,197,852)
(982,665)
Addition during the year
(441,468)
(215,187)
Disposal during the year
652,079
-
At end of the year
(987,241)
(1,197,852)
During the financial year, the Company has carried out a review of the recoverable amount of its investment in subsidiaries
that had been persistently making losses. A total impairment losses of RM441,468 (2014: RM215,187) representing the
write-down of the investments, was recognised in “Administrative Expenses” line item of the statement of profit or loss
and other comprehensive income. The carrying amount of the investments is determined based on estimated fair value
of the subsidiaries as at end of the reporting period.
NOTES TO THE FINANCIAL STATEMENTS
(cont’d)