Statements
4. STAFF COSTS
Directors’ remunerations Employee Provident Fund Salaries and other staff costs
Provision for accumulating compensated absences
Group Company
2010 2009 2010 2009
RM RM RM RM
1,010,837 1,298,486 1,010,837 1,298,486 2,166,363 1,939,955 2,166,363 1,939,955 14,079,558 14,936,543 14,079,558 14,936,543
79,374 47,252 79,374 47,252
17,336,132 18,222,236 17,336,132 18,222,236
Company No. 691431 - D Employee Benefits
(i) Short term employee benefits
Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees of the Company. Short term accumulating compensated absences such as paid annual leaves are recognised when services are rendered by employees that increase their entitlement to future compensated absences.
(ii) Defined contribution plan
As required by law, companies in Malaysia make contributions to the Employees Provident Fund (“EPF”). Such contributions are recognised as an expense in the income statement as incurred.
Other receivables, deposits and prepayments
Other receivables, deposits and prepayments are stated at cost net of allowance for doubtful debts.
Liabilities and provision
Other payables and accruals are stated at cost.
Provision for liabilities are recognised when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
Cash Flow Statements
The Group and the Company adopt the indirect method in the preparation of the cash flow statements.
Cash equivalents are short-term, highly liquid investments that are readily convertible to cash with insignificant risks of changes in value.
Cash and cash equivalents
Cash and cash equivalents consist of cash in hand, balances and deposits with licensed financial institutions.
Company No. 691431 - D Income
(i) Services
Income from services rendered is recognised net of discounts in the income statements as and when services are performed.
(ii) Interest income
Interest income is recognised in the income statements as and when there is reasonable assurance that it will be received.
Expenses
Operating lease payments
Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognised in the income statement as an integral part of the total lease payments made.
Government grants
Government grant is recognised initially as deferred income when there is reasonable assurance that it will be received and that the Company will comply with the conditions associated with the grant. Grants that compensate the Company for expenses incurred are recognised in the income statements over the period necessary to match them with the related costs that they are intended to compensate. Grants that compensate the Company for the cost of an asset are recognised in the income statements on a systematic basis over the useful life of the asset.
4. STAFF COSTS
Directors’ remunerations Employee Provident Fund Salaries and other staff costs
Provision for accumulating compensated absences
Group Company
2010 2009 2010 2009
RM RM RM RM
1,010,837 1,298,486 1,010,837 1,298,486 2,166,363 1,939,955 2,166,363 1,939,955 14,079,558 14,936,543 14,079,558 14,936,543
79,374 47,252 79,374 47,252
17,336,132 18,222,236 17,336,132 18,222,236
Company No. 691431 - D 5. PROFIT BEFORE TAX
Profit before tax is arrived at after charging/(crediting) the followings:
Audit fee
Depreciation of property, plant and equipment Amortisation of intangible assets Rental of premises Lease rental Interest expense Realised loss/(gain) on foreign exchange (Reversal of allowance)/
Allowance for doubtful debts
Interest income Amortisation of developmental grants Amortisation of non-developmental grants
Note Group Company
2010 2009 2010 2009
RM RM RM RM
26,000 22,000 20,000 20,000
7 2,896,706 2,882,915 2,896,706 2,882,915
8 677,058 112,843 677,058 112,843
3,765,169 3,343,770 3,765,169 3,343,770
325,923 261,296 325,923 261,296
18,287 19,411 18,287 19,411
3,172 (3,454) 3,172 (3,454)
(82,527) 268,861 (82,527) 268,861
(9,210,706) (6,692,972) (8,796,075) (6,692,972) 13 (31,294,720) (17,005,449) (31,294,720) (17,005,449)
13 (35,999,197) (37,623,096) (35,999,197) (37,623,096)
Company No. 691431 - D 6. TAX EXPENSE
A reconciliation of income tax expense applicable to profit before tax at the statutory income tax rate to income tax expense at the effective income tax rate of the Group and of the Company is as follows:
The Company has been granted a tax exemption on its statutory income under subsection 127 (3A) Income Tax Act 1967 (for all sources of income except for dividend income) for the period of 5 years commencing from year of assessment 2006 to 2010. During current financial year, the Company has been granted an extension for the period of 5 years commencing from year of assessment 2011 to 2015.
Group Company
2010 2009 2010 2009
RM RM RM RM
Estimated current year tax
payable 32,745 - - -
Group Company
2010 2009 2010 2009
RM RM RM RM
Profit before tax Tax at statutory tax rate of 25%
Tax effects of:
Expenses not deductible for tax purposes
Income not taxable for tax purpose Tax expense for the year
4,084,742 4,254,957 3,854,811 4,375,992
1,021,186 1,063,739 963,703 1,093,998
18,415 30,259
(1,006,856) (1,093,998) (963,703) (1,093,998) 32,745
- -
- - -
Company No. 691431 - D 5. PROFIT BEFORE TAX
Profit before tax is arrived at after charging/(crediting) the followings:
Audit fee
Depreciation of property, plant and equipment Amortisation of intangible assets Rental of premises Lease rental Interest expense Realised loss/(gain) on foreign exchange (Reversal of allowance)/
Allowance for doubtful debts
Interest income Amortisation of developmental grants Amortisation of non-developmental grants
Note Group Company
2010 2009 2010 2009
RM RM RM RM
26,000 22,000 20,000 20,000
7 2,896,706 2,882,915 2,896,706 2,882,915
8 677,058 112,843 677,058 112,843
3,765,169 3,343,770 3,765,169 3,343,770
325,923 261,296 325,923 261,296
18,287 19,411 18,287 19,411
3,172 (3,454) 3,172 (3,454)
(82,527) 268,861 (82,527) 268,861
(9,210,706) (6,692,972) (8,796,075) (6,692,972) 13 (31,294,720) (17,005,449) (31,294,720) (17,005,449)
13 (35,999,197) (37,623,096) (35,999,197) (37,623,096)
Company No. 691431 - D 6. TAX EXPENSE
A reconciliation of income tax expense applicable to profit before tax at the statutory income tax rate to income tax expense at the effective income tax rate of the Group and of the Company is as follows:
The Company has been granted a tax exemption on its statutory income under subsection 127 (3A) Income Tax Act 1967 (for all sources of income except for dividend income) for the period of 5 years commencing from year of assessment 2006 to 2010. During current financial year, the Company has been granted an extension for the period of 5 years commencing from year of assessment 2011 to 2015.
Group Company
2010 2009 2010 2009
RM RM RM RM
Estimated current year tax
payable 32,745 - - -
Group Company
2010 2009 2010 2009
RM RM RM RM
Profit before tax Tax at statutory tax rate of 25%
Tax effects of:
Expenses not deductible for tax purposes
Income not taxable for tax purpose Tax expense for the year
4,084,742 4,254,957 3,854,811 4,375,992
1,021,186 1,063,739 963,703 1,093,998
18,415 30,259
(1,006,856) (1,093,998) (963,703) (1,093,998) 32,745
- -
- - -
Company No. 691431 - D
No deferred tax has been recognised for the following items:
The unutilised tax losses and deductible temporary differences do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the Company can utilise the benefits.
Deferred Tax Assets/(Liabilities)
Property, plant and equipment Unutilised tax losses
Unutilised capital allowance
(185,481) 276,257 (185,481) 276,257
30,362,673 30,362,673 30,362,673 30,362,673 2,441,287 1,861,932 2,441,287 1,861,932 32,618,479 32,500,862 32,618,479 32,500,862
Group Company
2010 2009 2010 2009
RM RM RM RM Group
Cost
As of 1 January 2009 Additions
Reclassification As of 31 December 2009/1 January 2010
Additions Reclassification As of 31 December 2010
- 902,388 6,403,824 1,252,750 667,243 162,000 9,388,205 - 16,700 1,438,803 26,634 146,646 3,322,409 4,951,192 -
- -
- 162,000 - - (162,000) -
919,088 8,004,627 1,279,384 813,889 3,322,409 14,339,397 36,524,927 230,564 1,006,620 837,709 - 6,754,762 45,354,582
37,593 17,400 99,041 - (154,034) -
36,524,927 1,187,245 9,028,647 2,216,134 813,889 9,923,137 59,693,979 Freehold
land
Office equipment
Computer equipment
Furniture and fittings
Motor vehicles
Construction and other
work-in
progress Total
RM RM RM RM RM RM RM
Group
Accumulated Depreciation As of 1 January 2009 Charge for the year As of 31 December 2009/
1 January 2010 Charge for the year As of 31 December 2010 Net Book Value
As of 31 December 2010 As of 31 December 2009
Freehold
land Office
equipment Computer
equipment Furniture
and fittings Motor vehicles
Construction and other
work-in
progress Total
RM RM RM RM RM RM RM
- -
- - -
-
404,106 2,436,944 667,878 332,752 - 3,841,680 183,104 2,306,162 254,949 138,700 - 2,882,915
587,210 4,743,106 922,827 471,452 - 6,724,595 191,255 2,220,805 332,531 152,114 - 2,896,705 778,465 6,963,911 1,255,358 623,566 - 9,621,300
36,524,927 408,780 2,064,736 960,776 190,323 9,923,137 50,072,679 331,878 3,261,521 356,557 342,437 3,322,409 7,614,802 Company No. 691431 - D