MELEWAR

0.255

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OTHERS MELEWAR INDUSTRIAL GROUP BERHAD ("MIG" OR "THE GROUP") REVALUATION OF PROPERTY, PLANT AND EQUIPMENT

MELEWAR INDUSTRIAL GROUP BERHAD

Type Announcement
Subject OTHERS
Description
MELEWAR INDUSTRIAL GROUP BERHAD ("MIG" OR "THE GROUP") 
REVALUATION OF PROPERTY, PLANT AND EQUIPMENT

1.   INTRODUCTION

 

Pursuant to Paragraph 9.19(46) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of MIG (“the Board”) wishes to announce that MIG had undertaken a revaluation exercise on the land, buildings, plant, machinery and electrical installation held by the Group. The Board had at its meeting held on 28 August 2020 approved the valuation reports and the incorporation of the revaluation surplus arising from the revaluation in the fourth quarter unaudited financial results of MIG for the financial year ended 30 June 2020.

 

2.   PURPOSE

 

The revaluation was carried out in accordance with the Group’s accounting policy to determine the fair value of the Group’s property, plant and equipment comprising the land, building, plant, machinery and electrical installation periodically, with sufficient regularity.

 

3.   REVALUATION SURPLUS

 

The details of the revaluation surplus are set out below:

 

Location of the Property, Plant and Equipment

Type of Property, Plant and Equipment

 

Valuer / Valuation date

 

 

Market Value  (RM)

Gross Revaluation Surplus/(Deficit) (RM)

 

Lot 53, Persiaran Selangor, 40200 Shah Alam,

Selangor

 

 

Industrial land and factory cum office building (Leasehold)

 

 

PA International Property Consultants (KL) Sdn. Bhd.

30 June 2020

 

29,300,000

 

752,926

 

Plant, machinery & electrical installation

 

 

 

PA International Property Consultants (KL) Sdn. Bhd.

30 June 2020

 

 

6,738,000

 

(100,729)

Location of the Property, Plant and Equipment

Type of Property, Plant and Equipment

 

Valuer/Valuation date

 

 

Market Value (RM)

Gross Revaluation Surplus/(Deficit) (RM)

 

No. 49, Jalan Utas 15/7,

40200 Shah Alam,

Selangor

 

Industrial land and factory building (Leasehold)

 

 

PA International Property Consultants (KL) Sdn. Bhd.

30 June 2020

 

 

40,000,000

 

633,281

 

Plant, machinery & electrical installation

 

PA International Property Consultants (KL) Sdn. Bhd.

30 June 2020

 

 

7,975,000

 

(186,799)

 

Lot 10, Persiaran Selangor,

40200 Shah Alam

Selangor

 

Industrial land and factory building (Leasehold)

 

 

PA International Property Consultants (KL) Sdn. Bhd.

30 June 2020

 

 

29,400,000

 

664,543

 

Plant, machinery & electrical installation

 

 

PA International Property Consultants (KL) Sdn. Bhd.

30 June 2020

 

 

16,404,000

 

(145,110)

 

Lot 16, Jalan Pengapit 15/19,

40200 Shah Alam,

Selangor

 

(Note A(i))

 

Industrial land and factory building (Leasehold)

 

 

Oregeon Property Consultancy Sdn. Bhd.

15 March 2020

 

 

13,500,000

 

1,000,000

 

Plant, machinery & electrical installation

 

Oregeon Property Consultancy Sdn. Bhd.

15 March 2020

 

 

77,000

 

1,058

 

Lot 717, Jalan Sungai Rasau,

Seksyen 16,

40200 Shah Alam,

Selangor

 

 

Industrial land and factory cum office building (Freehold)

 

 

PA International Property Consultants (KL) Sdn. Bhd.

30 June 2020

 

107,500,000

 

(405,827)

 

Plant, machinery & electrical installation

 

 

PA International Property Consultants (KL) Sdn. Bhd.

30 June 2020

 

 

152,513,000

 

(2,687,125)

 

 

 

403,407,000

(473,782)

      NOTE

 

(A) Land and building comprise of:

                                                                             RM

  • upward revaluation                    1,644,922       Revaluation Surplus

 

  • downward revaluation               (707,000)(i)     Debited to profit or loss as fair value loss

 

(i) The Group has in mid-June 2020 received a conditional offer from a Real Estate Investment Trust (REIT) to buy the Property on Lot 16, Jalan Pengapit for RM11.87 million subject to contract. For the purpose of fair value accounting the Property for the financial year ended 30 June 2020, the lower of the aforesaid offered value versus the latest independent valuation (dated 15 March 2020) was used as the indicative ‘fair value’. Given that the opening carrying fair value of the Property was RM12.58 million, a fair value loss of RM0.7 million is recognised in the Statement of Profit or Loss for the current financial quarter.

 

Considering that property disposal to a REIT would be exempted from RPGT, a write-back of deferred tax liability estimated at around RM1 million giving rise to a gain in Profit or Loss would occur should the said REIT offer be contracted and concluded in the next financial year. The Property has been rented out since June 2018. The tenant did not renew the tenancy at expiry on 30 June 2020.

 

(B) Plant, machinery & electrical installation comprise of:

                                                                             RM

  • upward revaluation                       533,377       Revaluation Surplus

 

  • downward revaluation               (3,652,081)      Charged to profit or loss as impairment losses

 

 

4.   EFFECT ON NET ASSETS PER SHARE

 

Based on the fourth quarter unaudited financial results of MIG for the financial year ended 30 June 2020, the net assets per share of MIG increased from RM0.90 to RM0.91 upon incorporation of the revaluation surplus, net of deferred tax, of RM1,655,507.

 

 

5.   DOCUMENTS AVAILABLE FOR INSPECTION

 

The valuation reports of the property, plant and equipment are available for inspection at the Registered Office of MIG at Suite 11.05, 11th Floor, No.566, Jalan Ipoh, 51200 Kuala Lumpur during normal business hours from Monday to Friday (except for Public Holidays) for a period of three (3) months from the date of this announcement.

 

This announcement is dated 28 August 2020.






Announcement Info

Company Name MELEWAR INDUSTRIAL GROUP BERHAD
Stock Name MELEWAR
Date Announced 28 Aug 2020
Category General Announcement for PLC
Reference Number GA1-26082020-00160