OTHERS MELEWAR INDUSTRIAL GROUP BERHAD ("MIG" OR "THE GROUP") REVALUATION OF PROPERTY, PLANT AND EQUIPMENT
MELEWAR INDUSTRIAL GROUP BERHAD |
Type | Announcement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subject | OTHERS |
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Description | MELEWAR INDUSTRIAL GROUP BERHAD ("MIG" OR "THE GROUP") REVALUATION OF PROPERTY, PLANT AND EQUIPMENT |
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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:
NOTE
(A) Land and building comprise of: RM
(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
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 |