In accordance with the Companies Act 2016, Mr Brendan Low Chin Yong's interest in the shares of the Company. Bhd., Shande Ancestral Park Berhad and the warrants held by the executors under section 8 of the Companies Act, 2016.
STATUTORY DECLARATION
In the opinion of the Directors, the financial statements on pages 87 to 195 have been prepared in accordance with the Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia, so as to present a true and fair view to provide a true and fair view of the financial position of the Group and of the Company as at 31 December 2020 and of their financial performance and cash flows for the financial year then ended. Signed on behalf of the Board of Directors in accordance with a decision of the Board of Directors.
TO THE MEMBERS OF
HARN LEN CORPORATION BHD
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF HARN LEN CORPORATION BHD
Management judgment is required to assess the going concern status of the group and the company. The Group and the Company recognize right-of-use assets on the commencement date of the lease agreement (ie the date on which the underlying asset is available for use). A financial asset is recognized in the statement of financial position when and only when the group and the company become a party to the contractual provisions of the instrument.
A financial liability is recognized in the statement of financial position when and only when the Group and the Company become parties to the contractual provisions of the instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Group and the Company after deducting all its liabilities. All transactions with Group and Company owners are recorded separately within equity.
AMOUNT OWING FROM/(TO) SUBSIDIARIES
The values assigned to key assumptions represent management's assessment of current trends in oil palm plantation in Sarawak and are based on external and internal sources (historical data). Any subsequent changes in market conditions or decisions on harvest levels may have a material impact on asset values as future cash flows may differ from these estimates. The assessment of the Group's goodwill impairment, as described above, included a sensitivity analysis on the key assumptions used.
Based on the results of the sensitivity analysis, no reasonable change in the key assumptions used would result in an impairment charge for the current financial year.
BIOLOGICAL ASSETS
The sales costs of the Group and the Company include written-off inventories in the amount of RMNil and RMNil respectively (2019: RMN 309,865 and RMN 309,865 respectively).
TRADE RECEIVABLES
Trade receivables include receivables from the sale of plantation products and related products and rentals. The credit terms granted to the Group's and the Company's customers are 7 days (2019: 7 days). Trade receivables are recorded at their original invoice amounts, which represent their fair value upon initial recognition.
Information regarding the Group's and the Company's exposure to the credit risk and ECLs for trade receivables is disclosed in Note 31(b) to the Financial Statements.
OTHER RECEIVABLES
Bhd., for a cash consideration of RM13,600,000 to an external party who is also a supplier to the Company. The sales proceeds must be set off against amounts to be paid to the supplier as agreed between both parties. Based on the above factors, there was no change in the estimation technique or significant assumptions made during the current year ending in the assessment of the adjustment for expected credit losses for sales proceeds receivable from the sale of investment in a subsidiary.
At the end of the financial period, he is still waiting for the land title to be transferred.
AMOUNT OWING FROM/(TO) AFFILIATED COMPANIES
The advance payment for the acquisition of Sarawak land from natives of RM1,925,175 is made by a subsidiary of the company, Harn Len Development (Jerok) Sdn. The prepayment amount has been fully impaired as title could not be obtained and the amount is considered unrecoverable. Applicable amounts from/(to) affiliated companies relate to share of profits or losses arising from the group's and company's property and plantation management, advances or payments on behalf, which are unsecured, interest-free and must be repaid on demand.
CASH AND BANK BALANCES
The sale and purchase of the property is subject to the fulfillment of several conditions precedent ("Conditions Prior"). The risk and transfer of possession of the estate and the mill will take place upon completion of all conditions precedent and full payment of the total consideration. The remainder of the purchase price was fully paid by Far East to the Company and the disposal was completed on August 25, 2020.
The new ordinary shares issued during the financial year ranked pari passu in all respects with the existing ordinary shares of the Company.
RESERVES
During the financial year ended 31 December 2020, the Company repurchased 480,500 of its issued shares from the open market at total consideration paid, including transaction costs of RM241,390. During the financial year ended 31 December 2020, the Company repurchased 4,633,000 from its treasury -shares transferred in respect of share awards to employees under the Employee Share Scheme (Note 28). Issue Date Maturity Date (RM). a) The warrants may be exercised at any time during the term of the warrants of seven (7) years commencing from the date of issue of the warrants and ending on the expiry date.
All of the company's retained earnings are available for distribution as lump sum dividends to the company's shareholders.
DEFERRED TAX LIABILITIES
The reserve consists of the fair value of services received from employees based on the fair value of the stock option granted. When the options are exercised, the amount from the option reserve is transferred to the share capital. Deferred tax liabilities/(claims) at the end of the reporting date consist of temporary differences arising from:-.
The unutilized tax losses available for set-off against future taxable profits of the Group and the Company, with the following expiration or when there is a material change in shareholders (of 50% or more), whichever is earlier, in accordance with the current tax legislation.
LOANS AND BORROWINGS
Group and Company term loans are repayable over a period ranging from 1 to 20 years, commencing 1 month after the date of initial disbursement of the facility. Interest rates for Group and Company term loans range from 3.52%. The hire purchase payables, bank overdrafts and term loans of the Group and the Company are secured by the Company's corporate guarantees.
The equity margin account of the Group and of the Company is secured by the pledged deposits of the Company.
TRADE PAYABLES
The hire purchase arrangements for both the group and the company varied from 3 to 5 years.
OTHER PAYABLES
REVENUE
A reconciliation of income tax expense applicable to profit/(loss) before tax at the statutory tax rate with the income tax expense at the effective tax rate of the Group and of the Company is as follows:-.
The main features of the ESS include the following: a) the maximum number of awards may not exceed 15% of the total number of issued shares of the company at any time during the scheme period;. During the year, 4,633,000 shares were granted free of charge to employees of the group and the company. The estimated cash value of the benefits provided to the company's directors during the financial year using group funds and other benefits was RM159,000).
Remuneration paid (on a company and group basis) to company directors is classified as follows:-.
CAPITAL COMMITMENTS
The Group and the Company are exposed to various risks relating to financial instruments. Credit risk is the risk that a counterparty will fail to meet an obligation to the Group and the Company. The credit risk concentration profile of the Group's and the Company's trade receivables at the reporting date is as follows: -.
The following table shows the areas where the Group and the Company are exposed to liquidity risk:-.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The holders did not claim any financial guarantee at the end of the reporting period. The book values of the financial assets and financial liabilities of the Group and the Company at the reporting date are approximately equal to their fair values due to their short-term nature, the insignificant impact of discounting, or they are instruments with a variable interest rate that is revalued. to market interest rates on or near the reporting date. There were no transfers between all three levels of the fair value hierarchy during the financial year.
The following summarizes the methods used to determine the fair value of the financial instruments reflected in the above table.
Fair Value
Fair Value
- OPERATING SEGMENT - GROUP
- LEGAL CASES DURING THE YEAR
- LIST OF SUBSTANTIAL SHAREHOLDERS
- LIST OF DIRECTORS’ SHAREHOLDINGS
- DISTRIBUTION OF SHAREHOLDINGS No. of
- TOP 30 LARGEST SECURITIES ACCOUNT HOLDERS No. NAME
- MAYBANK NOMINEES (TEMPATAN) SDN BHD
- AMSEC NOMINEES (TEMPATAN) SDN BHD
- HLIB NOMINEES (TEMPATAN) SDN BHD
- UOB KAY HIAN NOMINEES (TEMPATAN) SDN BHD
- UOB KAY HIAN NOMINEES (TEMPATAN) SDN BHD
- ALLIANCEGROUP NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR YONG LOY HUAT
- ALLIANCEGROUP NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR CHAN PUI LEORN
- CIMB GROUP NOMINEES (ASING) SDN. BHD
- MAYBANK NOMINEES (TEMPATAN) SDN BHD
- LIST OF SUBSTANTIAL WARRANTHOLDERS
- LOW NAM HUI UNITED HOLDINGS
- LIST OF DIRECTORS’ WARRANTHOLDINGS
- LOW NAM HUI UNITED HOLDINGS SDN BHD 10,423,403 20.06
- MAYBANK NOMINEES (TEMPATAN) SDN BHD
- CITIGROUP NOMINEES (ASING) SDN BHD
- MAYBANK NOMINEES (TEMPATAN) SDN BHD
- CGS-CIMB NOMINEES (TEMPATAN) SDN BHD
- CIMB GROUP NOMINEES (ASING) SDN. BHD
- ALLIANCEGROUP NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR CHAN PUI LEORN
- KENANGA NOMINEES (TEMPATAN) SDN BHD
- RHB CAPITAL NOMINEES (TEMPATAN) SDN BHD
- PUBLIC NOMINEES (TEMPATAN) SDN BHD
- PUBLIC NOMINEES (TEMPATAN) SDN BHD
Sons Sdn Bhd, LNH Enterprise Sdn Bhd, Seri Cemerlang Plantation (Pahang) Sdn Bhd and Shande Ancestral Park Berhad and the shares held by the Executors pursuant to Section 8 of the Companies Act, 2016. Sons Sdn Bhterhd, LN, Cemerlang Plantation (Pahang ) Sdn Bhd and Shande Ancestral Park Berhad and the shares held by his immediate family members, namely, the Executors and Low Yew Yern pursuant to Section 8 of the Companies Act, 2016. Sons Sdn Bhd, LNH Enterprise Serbhdd, Sd. Cemerlang Plantation (Pahang) Sdn Bhd and Shande Ancestral Park Berhad and the shares held by his immediate family members, namely, the Executors and Low Yew Yi pursuant to Section 8 of the Companies Act, 2016.
Sons Sdn Bhd, LNH Enterprise Sdn Bhd, Seri Cemerlang Plantation (Pahang) Sdn Bhd and Shande Ancestral Park Berhad and the shares held by the Executors pursuant to Section 8 of the Companies Act, 2016.
