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    RM'000 RM'000 Document Transcript

    • SUNWAY CONSTRUCTION BERHAD (27175-V) 3RD QUARTER FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2003 NOTES TO THE ACCOUNTS 1. Accounting Policies The quarterly financial statements have been prepared using the same accounting policies and methods of computation applied in the most recent annual audited financial statements, and should be read in conjunction with the audited financial statement for the year ended 31 December 2002. The accounting policies and methods of computation adopted by the Group in this interim financial report are consistent with those adopted in the annual financial year ended 31 December 2002, except for the following: (i) Adoption of MASB No.25, Income Taxes, whereby deferred tax asset have been recognised in the Balance Sheet for the unutilised tax losses to the extent that it is probable to be utilised against future taxable profit. (ii) Adoption of MASB No. 29, Employee Benefits, whereby employee benefits are recognized in the income statement. The adoption of this new MASB does not have any material impact on the result of the Group. The comparative figures for the above have been restated retrospectively to reflect the impact as the prior year adjustment. 2. Qualified Audit Report The financial statement for the year ended 31 December 2002 was not qualified. 3. Seasonal or Cyclical Factors Apart from the festive breaks in the first quarter, The Group’s operations are not significantly affected by any seasonal or cyclical factors. 4. Unusual Items There were no items affecting assets, liabilities, equity, net income, or cash flows that are unusual because of their nature, size, or incidence. 5. Changes in Estimates There is no significant change in estimates of amounts reported in the current quarter or the previous financial year. 6. Issuances and Repayment of Debt and Equity Securities There have been no issuance and repayment of debt and equity securities, share buy- backs, share cancellations, shares held as treasury shares and resale of treasury shares during the current financial year-to-date, except for the issuance of 2,916,000 new ordinary shares of RM1.25 each pursuant to the exercise of the Employees’ Share Option Scheme.
    • SUNWAY CONSTRUCTION BERHAD (27175-V) 3RD QUARTER FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2003 NOTES TO THE ACCOUNTS 7. Dividend Paid The Board of Directors does not recommend any dividend during the reporting period. 8. Segmental Reporting Segment Profit before Revenue taxation RM’000 RM’000 Construction 800,727 49,445 Property development 1,517 646 802,244 50,091 9. Valuation of Property, Plant and Equipment The Group did not carry out any valuation on its property, plant and equipment. 10. Material Subsequent Event On 6 October 2003, an announcement had been made to the KLSE that the Company had entered into an agreement with Suncity, a related party whereby Suncon had appointed Suncity as a project manager for the development of that piece of land in Mukim Bukit Raja, State of Selangor. Other than the above, there were no other material events subsequent to 30 September 2003, which are likely to affect the result of the Group’s operations substantially. 11. Changes in the Composition of the Group The Company had on 7 July 2003 completed the proposed acquisition of 100% equity interest in Sunway Machinery Services Sdn Bhd. The effect on acquisition on the interim financial statements is as follows: RM’000 Increase in the Group’s net profit for the 3 months ended 30 September 2003 720 Increase in the Group’s net assets as at 30 September 2003 1,139 Increase in cash and cash equivalents 7,005 12. Changes in Contingent Liabilities Details of contingent liabilities as at the date of issue of the report are as follows: - 30.9.2003 31.12.2002 RM ‘000 RM ‘000 Guarantees given to bankers for facilities granted to: - - Subsidiaries 245 237 - Related companies 3,975 3,975 - Third parties 31,334 24,755
    • SUNWAY CONSTRUCTION BERHAD (27175-V) 3RD QUARTER FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2003 NOTES TO THE ACCOUNTS 13. Review of Performance of the Company and its Subsidiaries For the first 9 months of the year, the Group recorded revenue and profit before tax of RM802.2 million and RM 50.1 million respectively as compared to RM362.1 million and RM 25.4 million in the previous corresponding period last year. This represents an increase of 127% in revenue and 97 % in profit before tax. The commendable performance is mainly due to progress of work as scheduled for major projects at Kajang Ring Road, Putrajaya and KLCC Convention Centre. 14. Comment on the Quarterly Results (current quarter compared with the preceding quarter) For the third quarter of the year, the Group registered higher turnover and profit before tax of RM 281.8 million and RM 17.6 million respectively as compared to RM277.7 million and RM 16.7 million in the preceding quarter. This represents 1.5% increase in turnover and 5% increase in profit before tax. 15. Current year Prospects With the healthy outstanding order book in hand, the management is confident that the performance for the last quarter would be maintained. 16. Profit Forecast The Group has no profit forecast or profit guarantee published in the public documents. 17. Taxation Individual Quarter Cumulative Quarter 30.9.2003 30.9.2002 30.9.2003 30.9.2002 RM’000 Malaysian Taxation (4,010) (582) (12,509) (2,483) Deferred Tax Liabilities 9 (7) (11) (140) Deferred Tax Assets (1,066) (2,449) (5,067) (589) (14,969) (2,623) The effective tax rate of the Group for the current quarter is higher than the statutory tax rate mainly due to losses of a subsidiary cannot be set off against the profits made by other companies in the Group. 18. Profits/(Losses) on Sales of Unquoted Investments and/or Properties There were no other profits/(losses) from the sales of investments and/or properties for the current financial period ended 30 September 2003. 19. Quoted Securities There were no disposals or purchases of quoted securities for the current financial period ended 30 September 2003.
    • SUNWAY CONSTRUCTION BERHAD (27175-V) 3RD QUARTER FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2003 NOTES TO THE ACCOUNTS 20. Status of Corporate Proposals Announced On 18 August 2003 and 5 September 2003, announcements were jointly made to the KLSE by the Group and its holding company , Sunway Holding Incorporated Bhd, in relation to the asset-backed securities (ABS) exercise. In this proposed exercise, the independent firm of valuers valued the properties of RM 58.2 million to be sold to a bankruptcy - remote special purpose vehicle called ABS Land & Properties Bhd (ALP) and to immediately realize the cash of RM 23 million to repay borrowing. The above corporate exercise is pending approval from the Shareholders and the Securities Commission and if completed by year end, this would result in the Group realizing a loss after tax of RM 3.4 million. Other than the above, there were no other corporate proposals announced but not completed as at the date of issue of this report. 21. Group Borrowing and Debt Securities Group borrowing as at the end of the reporting period 30 September 2003 are as follows: - RM'000 Short-term borrowing Unsecured: Bank Overdraft 616 Bank Overdraft (Denominated in S$) 8,100 Bankers Acceptance (Denominated in S$) 5,403 Secured: Hire Purchase 50 Hire Purchase (Denominated in S$) 801 Hire Purchase (Denominated in IDR) 49 Long-term borrowing Unsecured: Term Loan 52,304 Secured: Hire Purchase 61 Hire Purchase (Denominated in S$) 535 Hire Purchase (Denominated in IDR) 121 Secured short-term borrowing above is included as cash and cash equivalents in the condensed consolidated cash flow statement. 22. Off Balance Sheet Financial Instruments There were no financial instruments with off balance sheet risk for the financial period ended 30 September 2003.
    • SUNWAY CONSTRUCTION BERHAD (27175-V) 3RD QUARTER FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2003 NOTES TO THE ACCOUNTS 23. Material Litigation There is no pending material litigation that will have adverse impact on the financial position of the Group for the period ended 30 September 2003. 24. Earnings per share Individual Quarter Cumulative Quarter 30-Sep-03 30-Sep-02 30-Sep-03 30-Sep-02 Basic Earnings per share Net Profit for the period (RM’000) 12,400 8,247 34,411 22,192 Weighted average number of 180,661 180,159 180,661 180,159 ordinary share in issue (‘000) Basic Earnings per share (sen) 6.87 4.58 19.05 12.32 Diluted Earnings per share (sen) 6.82 N/A 18.92 N/A 25. Receipt of Notice of Conditional Voluntary General Offer On 17 November 2003,an announcement has been released to the Kuala Lumpur Stock Exchange that the Group had received, on the same day ,a Notice of Conditional Voluntary General Offer from Commerce International Merchant Bankers Berhad ("CIMB"), on behalf of Sunway Holdings Incorporated Berhad ("SunInc") to acquire the following: (i) the remaining ordinary shares of RM1.00 each in SunCon ("SunCon Share(s)"); and (ii) such number of new SunCon Shares that may be issued pursuant to the exercise of any outstanding options granted under SunCon’s Employee Share Option Scheme ("ESOS"), which are not already held by SunInc, at an offer price of RM2.73 for each SunCon Share to be satisfied via: - RM1.10 cash, and - One (1) ordinary share of RM1.00 of SunInc ("SunInc Share") to be issued at an issue price of RM1.63 per SunInc Share, credited as fully paid-up. By order of the Board Susan S C Cheah Tan Kim Aun Secretaries
    • SUNWAY CONSTRUCTION BERHAD (27175-V) 3RD QUARTER FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2003 NOTES TO THE ACCOUNTS