The Audit Committee was established on 15 January 2000 by the Board of Directors to assist the Board in its
C) INTERNAL AUDIT
2. Significant accounting policies (continued) (u) Earnings per ordinary share
The Group presents basic and diluted earnings per share data for its ordinary shares (“EPS”).
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.
(v) Operating segments
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ operating results are reviewed regularly by the chief operating decision maker, which in this case are the Executive Chairman and Managing Director of the Group, to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available.
(w) Contingencies
(i) Contingent liabilities
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is not recognised in the statements of financial position and is disclosed as a contingent liability, unless the probability of 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 liabilities unless the probability of outflow of economic benefits is remote.
(ii) Contingent assets
When an inflow of economic benefit of an asset is probable where it arises from past events and where existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity, the asset is not recognised in the statements of financial position but is being disclosed as a contingent asset. When the inflow of economic benefit is virtually certain, then the related asset is recognised.
(x) Fair value measurements
Fair value of an asset or a liability is determined as 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 measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market or in the absence of a principal market, in the most advantageous market.
For non-financial asset, the fair value measurement 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.
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139
(x) Fair value measurements (continued)
When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair value is categorised into different levels in a fair value hierarchy based on the input used in the valuation technique as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the measurement date.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: unobservable inputs for the asset or liability.
The Group recognises transfers between levels of the fair value hierarchy as of the date of the event or change in circumstances that caused the transfers.
Annual Report | 2020
3.Property, plant and equipment Note
Freehold land RM’000
Long term leasehold land RM’000
Buil
dings and
improvements RM’000
Farm buildings RM’000
Fishing boat and
equipment RM’000
Furniture,
fittings and equipment RM’000
Plant and machinery RM’000
Motor vehicles RM’000
Bearer plants RM’000
Capital work-in- progress RM’000Total RM’000 Group Cost At 1 April 2018149,27096,247379,056416,91576,027143,159986,102110,056133,681121,3432,611,856 Additions27,06829,40031,3808,7232834,37052,15817,2515,198100,286305,862 Disposals———(741)(2,778)(463)(3,786)(4,557)——(12,325) Written off(10)—(183)(1)—(688)(3,958)(93)——(4,933) Transfer in/(out)2,573—12,23628,8137,88613,08750,6611,416—(116,672)— Government grant——(2,449)——(83)————(2,532) Effect of movements in exchange rates609—6595,445—1,5303,1324392,70266615,182 At 31 March 2019179,510125,647420,699459,15481,163190,9121,084,309124,512141,581105,6232,913,110 Adjustment on initial application of MFRS 16—(125,647)(446)————(125)——(126,218) At 1 April 2019179,510—420,253459,15481,163190,9121,084,309124,387141,581105,6232,786,892 Additions24,170—34,77522,4291,02257,86552,34415,4353,960146,975358,975 Disposals——(252)(2,380)(6,025)(625)(5,962)(2,446)——(17,690) Written off——(206)(543)(270)(678)(4,255)(291)—(924)(7,167) Transfer in/(out)282—34,15945,8707211,46627,290774—(119,913)— Transfer from asset held for sale17——5,478——67157———5,702 Government grant——(2,136)———————(2,136) Effect of movements in exchange rates(2,604)—(2,713)(8,652)—(4,475)(8,830)(998)(11,103)(1,452)(40,827) At 31 March 2020201,358—489,358515,87875,962254,5321,145,053136,861134,438130,3093,083,749 A Milestone on Our Sus Growth Journey
141
3.Property, plant and equipment (continued) Note
Freehold land RM’000
Long term leasehold land RM’000
Buil
dings and
improvements RM’000
Farm buildings RM’000
Fishing boat and
equipment RM’000
Furniture,
fittings and equipment RM’000
Plant and machinery RM’000
Motor vehicles RM’000
Bearer plants RM’000
Capital work-in- progress RM’000Total RM’000 Group (continued) Depreciation and impairment loss At 1 April 2018 - Accumulated depreciation—9,11371,980103,95925,12469,251414,20077,62826,391—797,646 - Accumulated impairment loss——332——2011,1621——1,696 —9,11372,312103,95925,12469,452415,36277,62926,391—799,342 Depreciation for the year—2,21216,90223,6895,21420,97367,87314,1105,902—156,875 Disposals———(352)(1,903)(324)(1,238)(4,066)——(7,883) Written off——(169)——(418)(3,168)(92)——(3,847) Impairment loss——————4,000———4,000 Effect of movements in exchange rates——186517—4341,464218434—3,253 At 31 March 2019 - Accumulated depreciation—11,32588,899127,81328,43589,916479,13187,79832,727—946,044 - Accumulated impairment loss——332——2015,1621——5,696 —11,32589,231127,81328,43590,117484,29387,79932,727—951,740 Adjustment on initial application of MFRS 16—(11,325)(67)————(2)——(11,394) At 1 April 2019——89,164127,81328,43590,117484,29387,79732,727—940,346 Depreciation for the year——20,45224,4914,52023,43770,17315,9025,954—164,929 Disposals——(163)(2,131)(3,582)(426)(4,983)(1,872)——(13,157) Written off——(206)(543)(270)(525)(3,734)(288)——(5,566) Transfer from asset held for sale - Accumulated depreciation17——1,036——3370———1,139 - Accumulated impairment loss17——563———————563 ——1,599——3370———1,702 Effect of movements in exchange rates——(871)(925)—(1,298)(5,009)(746)(2,078)—(10,927)
Annual Report | 2020
3.Property, plant and equipment (continued) Note
Freehold land RM’000
Long term leasehold land RM’000
Buil
dings and
improvements RM’000
Farm buildings RM’000
Fishing boat and
equipment RM’000
Furniture,
fittings and equipment RM’000
Plant and machinery RM’000
Motor vehicles RM’000
Bearer plants RM’000
Capital work-in- progress RM’000Total RM’000 Group (continued) Depreciation and impairment loss At 1 April 2018 - Accumulated depreciation—9,11371,980103,95925,12469,251414,20077,62826,391—797,646 - Accumulated impairment loss——332——2011,1621——1,696 —9,11372,312103,95925,12469,452415,36277,62926,391—799,342 Depreciation for the year—2,21216,90223,6895,21420,97367,87314,1105,902—156,875 Disposals———(352)(1,903)(324)(1,238)(4,066)——(7,883) Written off——(169)——(418)(3,168)(92)——(3,847) Impairment loss——————4,000———4,000 Effect of movements in exchange rates——186517—4341,464218434—3,253 At 31 March 2019 - Accumulated depreciation—11,32588,899127,81328,43589,916479,13187,79832,727—946,044 - Accumulated impairment loss——332——2015,1621——5,696 —11,32589,231127,81328,43590,117484,29387,79932,727—951,740 Adjustment on initial application of MFRS 16—(11,325)(67)————(2)——(11,394) At 1 April 2019——89,164127,81328,43590,117484,29387,79732,727—940,346 Depreciation for the year——20,45224,4914,52023,43770,17315,9025,954—164,929 Disposals——(163)(2,131)(3,582)(426)(4,983)(1,872)——(13,157) Written off——(206)(543)(270)(525)(3,734)(288)——(5,566) Transfer from asset held for sale - Accumulated depreciation17——1,036——3370———1,139 - Accumulated impairment loss17——563———————563 ——1,599——3370———1,702 Effect of movements in exchange rates——(871)(925)—(1,298)(5,009)(746)(2,078)—(10,927) 3.Property, plant and equipment (continued) Note
Freehold land RM’000
Long term leasehold land RM’000
Buil
dings and
improvements RM’000
Farm buildings RM’000
Fishing boat and
equipment RM’000
Furniture,
fittings and equipment RM’000
Plant and machinery RM’000
Motor vehicles RM’000
Bearer plants RM’000
Capital work-in- progress RM’000Total RM’000 Group (continued) Depreciation and impairment loss (continued) At 31 March 2020 - Accumulated depreciation——109,080148,70529,103111,137535,648100,79236,603—1,071,068 - Accumulated impairment loss——895——2015,1621——6,259 ——109,975148,70529,103111,338540,810100,79336,603—1,077,327 Carrying amounts At 1 April 2018149,27087,134306,744312,95650,90373,707570,74032,427107,290121,3431,812,514 At 31 March/1 April 2019179,510114,322331,468331,34152,728100,795600,01636,713108,854105,6231,961,370 At 31 March 2020201,358—379,383367,17346,859143,194604,24336,06897,835130,3092,006,422 A Milestone on Our Sus Growth Journey
143
Motor vehicles RM’000 Company
Cost
At 1 April 2018 751
Disposal (256)
At 31 March 2019/1 April 2019/31 March 2020 495
Accumulated depreciation
At 1 April 2018 602
Depreciation for the year 37
Disposal (202)
At 31 March/1 April 2019 437
Depreciation for the year 24
At 31 March 2020 461
Carrying amounts
At 1 April 2018 149
At 31 March/1 April 2019 58
At 31 March 2020 34
3.1 Government grant
During the year, a subsidiary of the Company received a government grant in respect of the integrated shrimp farm amounting to RM2,136,000 (2019: RM2,532,000).
3.2 Assets under hire purchase
Included in property, plant and equipment of the Group are assets acquired under hire purchase arrangements with the following net book value:
Group
RM’0002020 2019 RM’000
Motor vehicles 244 123
Plant and machinery 324 —
3.3 Capital work-in-progress
Capital work-in-progress is in respect of the on-going construction of buildings and installation of plant and machinery in certain subsidiaries.
Annual Report | 2020