MALAYSIAN RESOURCES CORPORATION BERHAD
(Incorporated in Malaysia - Company No.7994-D)
REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013
Condensed Consolidated Statement Comprehensive IncomeIndividual Quarter Cumulative Quarter
3 months ended 12 months ended
In RM’000 Note 31.12.2013 31.12.2012 31.12.2013 31.12.2012
(unaudited) (unaudited)
Continuing operations
Revenue 369,004 303,075 940,910 1,283,204
Expenses (354,411) (284,065) (1,060,179) (1,146,867)
Other operating income 14 41,042 44,015 151,776 114,291
Profit from operations 55,635 63,025 32,507 250,628
Finance cost (36,007) (35,935) (147,905) (118,495)
Share of results of associates (29) 1,504 6,010 2,627
Share of results of jointly controlled
entities (278) 3,824 (979) (758)
Profit/(loss) before tax 19,321 32,418 (110,367) 134,002
Income tax expense 15 (9,148) (23,345) (12,481) (42,835)
Profit/(loss) from continuing operations 10,173 9,073 (122,848) 91,167
Profit from discontinuing operations 844 - 4,897 -
11,017 9,073 (117,951) 91,167
Other comprehensive income
for the financial year, net of tax
from continuing operations
- Currency translation differences (444) (22) (939) (237)
- Actuarial loss on defined benefit
obligation (275) - (275) -
Total comprehensive income/(loss)
for the financial year, net of tax 10,298 9,051 (119,165) 90,930
Condensed Consolidated Statement Comprehensive IncomeIndividual Quarter Cumulative Quarter
3 months ended 12 months ended
In RM’000 Note 31.12.2013 31.12.2012 31.12.2013 31.12.2012
(unaudited) (unaudited)
Profit/(loss) attributable to owners of :
The Company
- from continuing operations 1,373 (2,972) (114,029) 60,122
- from discontinuing operations 844 - 4,897 -
2,217 (2,972) (109,132) 60,122
Non-controlling interest 8,800 12,045 (8,819) 31,045
11,017 9,073 (117,951) 91,167
Total comprehensive income/(loss) for
the financial year, net of tax attributable
to the owner of:
Equity holders of the Company
- from continuing operations 786 (3,032) (114,957) 59,956
- from discontinuing operations 844 - 4,897 -
1,630 (3,032) (110,060) 59,956
Non-controlling interest 8,668 12,083 (9,105) 30,974
10,298 9,051 (119,165) 90,930
Earnings/(loss) per share attributable to
the ordinary equity holders of the
Company (sen)
Basic and diluted
- from the continuing operations 23 0.08 (0.21) (7.71) 4.34
- from the discontinuing operations 23 0.05 - 0.33 -
0.13 (0.21) (7.38) 4.34
Note: The discontinuing operations in the current quarter and the financial year ended 31December 2013 are in relation to the proposed disposal of an investment property, see Note 16(c) for details.
The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Annual Financial Report for the year ended 31 December 2012
Condensed Consolidated Statement of Financial PositionAs at As at As at
In RM’000 31.12.2013 31.12.2012 1.1.2012
(unaudited) (audited & (audited &
restated) restated)
ASSETS
Non-current assets
Property, plant and equipment 37,879 38,750 43,189
Investment properties 857,480 1,040,695 848,783
Land held for property development 818,996 620,904 734,135
Service concession asset - - 1,265,658
Associates 90,958 61,382 58,755
Jointly controlled entities 94,988 93,367 96,725
Trade receivables 531,909 - -
Long term loan and receivable - 81,963 74,910
Available for sale financial assets 577 577 577
Intangible assets 291,100 74,888 76,886
Deferred tax assets 33,513 39,108 29,452
2,757,400 2,051,634 3,229,070
Current assets
Inventories 8,399 9,749 16,753
Properties development costs 716,443 481,761 408,497
Trade and other receivables 649,160 1,428,661 1,120,572
Amount due from jointly controlled entities 537 749 2,841
Tax recoverable 10,480 12,406 10,018
Financial assets at fair value through profit or loss 4,533 3,984 4,545
Deposits, cash and bank balances 603,435 644,201 616,188
1,992,987 2,581,511 2,179,414
Assets held for sale (see Note A below) 1,852,337 1,321,672 -
TOTAL ASSETS 6,602,724 5,954,817 5,408,484
Condensed Consolidated Statement of Financial PositionAs at As at As at
In RM’000 31.12.2013 31.12.2012 1.1.2012
(unaudited) (audited & (audited &
restated) restated)
EQUITY AND LIABILITIES
Equity attributable to equity holders of the Company
Share capital 1,651,311 1,387,811 1,386,155
Accumulated losses (275,056) (140,759) (191,203)
Other reserves 299,161 166,744 176,818
1,675,416 1,413,796 1,371,770
Non-controlling interest 61,318 69,134 38,131
Total equity 1,736,734 1,482,930 1,409,901
Non-current liabilities
Loan stock at cost 7,000 14,845 14,354
Senior and Junior Sukuk - - 1,058,485
Long term borrowings 908,986 890,040 1,317,688
Long term liabilities 27,128 17,234 18,366
Deferred tax liabilities 95,068 51,221 46,869
1,038,182 973,340 2,455,762
Current liabilities
Trade payables 763,463 684,932 778,916
Other payables 337,627 269,288 298,866
Current tax liabilities 9,639 9,915 2,665
Senior and Junior Sukuk 1,058,462 1,058,471 -
Short term borrowings 1,535,851 1,360,941 352,231
Guaranteed return to a non controlling interest 115,000 115,000 110,143
3,820,042 3,498,547 1,542,821
Liabilities associated with assets held for sale 7,766 - -
(see Note A below)
Total liabilities 4,865,990 4,471,887 3,998,583
TOTAL EQUITY AND LIABILITIES 6,602,724 5,954,817 5,408,484
Net assets per share attributable to the
equity holders of the Company (sen) 101.5 101.9 99.0
Condensed Consolidated Statement of Financial PositionAs at As at As at
In RM’000 31.12.2013 31.12.2012 1.1.2012
(unaudited) (audited & (audited &
restated) restated)
Note A
Assets held for sale
Non-current
Investment properties 401,817 - -
Service concession asset 1,321,672 1,321,672 -
Long term loan and receivable 128,848 - -
1,852,337 1,321,672 -
Liabilities associated with assets held for sale
Current
Other payables 7,766 - -
The Condensed Consolidated Statement of Financial Position should be read in conjunction with the Annual Financial Report for the year ended 31 December 2012.
Condensed Consolidated Statement of Cash Flows12 months ended
In RM’000 31.12.2013 31.12.2012
(unaudited)
Operating activities
Cash receipts from customers 1,226,700 1,395,598
Cash paid to suppliers and employees (1,144,069) (1,713,692)
Cash used in operations 82,631 (318,094)
Finance cost paid (1,438) (1,502)
Taxes paid (24,176) (42,912)
Net cash generated from/(used in) operating activities from continuing operations 57,017 (362,508)
Net cash generated from operating activities from discontinuing operations 6,378 -
Net cash used in operating activities 63,395 (362,508)
Investing activities
Acquisition of equity investments (121,855) (4,644)
Divestment of equity investments 1,245 150
Dividend received 255 249
Non-equity investments 7,502 10,539
Acquisition of subsidiaries 12,580 -
Net cash (used in)/ generated from investing activities from continuing operations (100,273) 6,294
Net cash generated from investing activities from discontinuing operations 1,570 -
Net cash (used in)/ generated from investing activities (98,703) 6,294
Financing activities
Proceed from issue of share capital - 2,006
Dividend paid to equity holders (26,368) (20,796)
Proceeds from borrowings 808,871 799,011
Repayment of borrowings (596,779) (221,555)
Interest paid (172,707) (174,439)
Placement of restricted cash (39,808) (1,274)
Net cash (used in)/ generated from financing activities from
continuing operations (26,791) 382,953
Net cash used in financing activities from discontinuing operations (27,196) -
Net cash (used in)/generated from financing activities (53,987) 382,953
Net (decrease)/increase in cash and cash equivalent (89,295) 26,739
Cash and cash equivalents at beginning of the financial year 397,815 371,076
Cash and cash equivalent at end of financial year 308,520 397,815
For the purpose of the statement of cash flows, the cash and cash equivalents comprised the following:
Bank balances and deposits 603,435 644,201
Bank overdraft (391) -
603,044 644,201
Less: Bank balances and deposits held as security value (294,524) (246,386)
308,520 397,815
The Condensed Consolidated Statements of Cash Flows should be read in conjunction with the Annual Financial Report for the year ended 31 December 2012
Condensed Consolidated Statement of Changes in EquityAttributable to equity holders of the Company ______
Non-
Share Share Other Accumulated controlling Total
In RM’000 Capital premium reserves ______losses Total interests equity
At 1 January 2013 1,387,811 134,475 32,269 (136,354) 1,418,201 69,144 1,487,345
(as previously stated)
Prior year adjustments (Note 2) - - - (4,405) (4,405) (10) (4,415)
At 1 January 2013 (restated) 1,387,811 134,475 32,269 (140,759) 1,413,796 69,134 1,482,930
Comprehensive income
- Loss for the financial year - - - (109,132) (109,132) (8,819) (117,951)
Other comprehensive income
- Currency translation differences - - (657) - (657) (282) (939)
- Actuarial loss on defined benefit
obligation - - (271) - (271) (4) (275)
Total comprehensive income - - (928) (109,132) (110,060) (9,105) (119,165)
Transactions with owners
Acquisition of subsidiaries 263,500 113,305 19,574 - 396,379 1,491 397,870
Employees’ share option scheme
- options granted - - 1,669 - 1,669 - 1,669
- options lapsed - - (1,203) 1,203 - - -
Dividends
- financial year ended
31 December 2012 - - - (26,368) (26,368) - (26,368)
- financial year ended
31 December 2013 - - - - - (202) (202)
Total transactions with owners 263,500 113,305 20,040 (25,165) 371,680 1,289 372,969
At 31 December 2013 1,651,311 247,780 51,381 (275,056) 1,675,416 61,318 1,736,734
(unaudited)
Condensed Consolidated Statement of Changes in EquityAttributable to equity holders of the Company ______
Non-
Share Share Other Accumulated controlling Total
In RM’000 Capital premium reserves ______losses Total interests equity
At 1 January 2012 1,386,155 132,226 44,592 (186,788) 1,376,185 38,131 1,414,316
(as previously stated)
Prior year adjustments (Note 2) - - - (4,405) (4,405) (10) (4,415)
At 1 January 2012 (restated) 1,386,155 132,226 44,592 (191,193) 1,371,780 38,121 1,409,901
Comprehensive income
- Profit for the financial year - - - 60,122 60,122 31,045 91,167
Other comprehensive income
- Currency translation differences - - (166) - (166) (71) (237)
Total comprehensive income - - (166) 60,122 59,956 30,974 90,930
Transactions with owners
Issue of shares
- exercise of ESOS options 1,656 251 - - 1,907 - 1,907
Employees’ share option scheme
- options exercised - 1,998 (1,998) - - - -
- options lapsed - - (3,597) 3,597 - - -
- options rescinded - - (7,511) 7,511 - - -
- options extended - - 904 904 - 904
Acquisition of additional interest
in subsidiaries - - 45 - 45 99 144
Dividends
- financial year ended
31 December 2011 - - - (20,796) (20,796) - (20,796)
Profit distribution by a jointly
controlled entity
- financial year ended
31 December 2012 - - - - - (60) (60)
Total transactions with owners 1,656 2,249 (12,157) (9,688) (17,940) 39 (17,901)
At 31 December 2012 1,387,811 134,475 32,269 (140,759) 1,413,796 69,134 1,482,930
(audited)
The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Annual Financial Report for the year ended 31 December 2012
Notes to the Interim Report1. Basis of preparation
The financial report has been prepared in accordance with FRS 134, Interim Financial Reporting and paragraph 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad, and should be read in conjunction with the Group’s financial statements for the financial year ended 31 December 2012.
The accounting policies and methods of computation adopted for the financial report are consistent with those adopted for the annual financial statements for the financial year ended 31 December 2012, other than for the compliance with the new/revised Financial Reporting Standards (FRS) that came into effect during the financial year under review.
The Group has applied the following new standards, amendments to standard and interpretations that came into effect during the financial year under review:
· FRS 10 “Consolidated Financial Statements”
· FRS 11 “Joint Arrangement”
· FRS 12 “Disclosures of Interest in Other Entities”
· FRS 13 “Fair Value Measurement”
· The revised FRS 127 “Separate Financial Statements”
· The revised FRS 128 “Investments in Associates and Joint Ventures”
· Amendments to FRS 7 “Financial Instruments: Disclosures”
· Amendments to FRS 10, 11 & 12 “Consolidated Financial Statements, Joint
Arrangements and Disclosures of Interests in Others Entities: Transition Guidance”
· Amendment to FRS 101 “Presentation of Items of Other Comprehensive Income”
· Amendment to FRS 119 “Employee Benefits”
The above new standards, amendments to standard and interpretations do not have material effects on the Group’s financial result for the financial year under review nor the Group’s shareholders’ funds as at 31 December 2013 except for the Amendment to FRS 119.
Amendment to FRS 119 makes significant changes to the recognition and measurement of defined benefit pension expenses and termination benefits, and to the disclosures for all employee benefits. Actuarial gains and losses will no longer be deferred using the Corridor Approach. FRS 119 has withdrawn the application of this amendment.
The effect of Amendment to FRS 119 is shown in Note 2, Changes in accounting policies.
The Malaysian Accounting Standard Board has given the Transitioning Entities the option to continue to apply the Financial Reporting Standards framework until 31 December 2014. The Group is a Transitioning Entities due to its involvement in the development and construction of real estate. The Group shall adopt the new IFRS-compliant framework, Malaysian Financial Reporting Standard from financial year beginning 1 January 2015.
Notes to the Interim Report2. Changes in accounting policies
During the current financial period, the Group made prior year adjustments relating to Amendment to FRS 119. Under the new standard, there is no recognition of actuarial gains and losses through the profit or loss. The accumulated unrecognized actuarial gains or losses would be recognized as retirement benefit reserve. All actuarial gains or losses arising in the future will be charged to Other Comprehensive Income.
The financial effects arising from the Group’s prior year adjustments are as follows:
As previously / Prior year / AsReported / adjustments / restated
RM'000 / RM'000 / RM'000
At 1 January 2012
Statement of financial position
Equity and liabilities
Accumulated losses / (186,788) / (4,405) / (191,193)
Long term liabilities / 13,951 / 4,415 / 18,366
At 31 December 2012
Statement of financial position
Equity and liabilities
Accumulated losses / (136,354) / (4,405) / (140,759)
Long term liabilities / 12,819 / 4,415 / 17,234
3. Audit report of the preceding annual financial statements
The audit report of the Group’s preceding annual financial statements was not subject to any qualification.
4. Seasonal or cyclical fluctuations
The businesses of the Group were not materially affected by any seasonal or cyclical fluctuations during the current financial year.
5. Items of unusual nature, size or incidence