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Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
10. PROPERTY, PLANT AND EQUIPMENT (CONT’D)
As of 31 December 2016, freehold land and buildings, long-term leasehold land and buildings and plant and machinery
of the Group with a total net book value of RM72,364,307 (2015: RM76,256,680) 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 RM652,076 (2015: RM3,219,816).
11. INVESTMENTS IN SUBSIDIARIES
The Company
2016
2015
RM
RM
Unquoted shares - at cost:
- In Malaysia
21,166,738
21,166,738
- Outside Malaysia
100,333,202
67,496,426
121,499,940
88,663,164
Impairment of investments in subsidiaries
(987,241)
(987,241)
120,512,699
87,675,923
Unquoted shares - at cost:-
At beginning of the year
88,663,164
52,445,878
Reclassification from quoted shares
-
32,175,037
Transferred from a subsidiary
25,545,404
-
Addition during the year
7,399,142
5,103,100
Disposal during the year
-
(1,060,851)
Dissolution of a subsidiary
(107,770)
-
At end of the year
121,499,940
88,663,164
Impairment of investments in subsidiaries:-
At beginning of the year
(987,241)
(1,197,852)
Addition during the year
-
(441,468)
Disposal during the year
-
652,079
At end of the year
(987,241)
(987,241)
In the previous 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 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)