162 DRB-HICOM BERHADANNUAL REPORT 2017
DIRECTORS' REPORT The Directors of DRB-HICOM Berhad hereby submit their report together with the audited financial statements of the Group and of the Company for the financial year ended 31 March 2017. PRINCIPAL ACTIVITIES
The Company is an investment holding company with investments in the automotive (including defence and composite manufacturing), services (including integrated logistics, banking and postal businesses) and property, asset and construction segments. There was no significant change in these activities during the financial year. Information relating to the subsidiary companies, joint ventures and associated companies are described in Note 3 to the financial statements. FINANCIAL RESULTS
Group RM’000
Company RM’000
Net (loss)/profit for the financial year (260,402) 356,519
Attributable to:
Owners of the Company (454,401) 276,864
Holders of Perpetual Sukuk 79,655 79,655
Holders of Redeemable Convertible Cumulative Preference Shares 40,685 -
Non-controlling interest 73,659 -
(260,402) 356,519
DIVIDENDS
Dividends paid and proposed by the Company since 31 March 2016 was as follows: RM’000 In respect of the financial year ended 31 March 2016:
Single tier first and final dividend of 2.0 sen per share, paid on 1 November 2016 38,665
The Directors recommend the payment of a single tier first and final dividend of 1.0 sen per share amounting to RM19,332,371 in respect of the financial year ended 31 March 2017, subject to the approval of shareholders at the forthcoming Annual General Meeting of the Company. RESERVES AND PROVISIONS
All material transfers to or from reserves and provisions during the financial year are disclosed in the financial statements.
DIRECTORS’ REPORT
163DRB-HICOM BERHADANNUAL REPORT 2017
DIRECTORS' REPORT (Continued) SIGNIFICANT AND SUBSEQUENT EVENTS
The details of significant and subsequent events are as disclosed in Notes 57 and 58 to the financial statements. DIRECTORS OF THE COMPANY
The Directors of the Company who have held office during the period since the beginning of the financial year to the date of this report are: Brig. Gen. (K) Tan Sri Dato’ Sri (Dr.) Haji Mohd (Chairman) Khamil bin Jamil Dato’ Sri Syed Faisal Albar bin Syed A.R. Albar (Group Managing Director) Datuk Ooi Teik Huat Dato’ Ibrahim bin Taib Dato’ Siti Fatimah binti Daud (Appointed on 1 April 2016) Datuk Idris bin Abdullah @ Das Murthy (Appointed on 1 January 2017) Dato’ Abdul Rahman bin Ahmad* (Appointed on 16 May 2016 and retired on
29 September 2016) Datuk Haji Abdul Rahman bin Mohd Ramli* (Retired on 29 September 2016) Ong Ie Cheong (Resigned on 1 January 2017) Tan Sri Marzuki bin Mohd Noor (Resigned on 1 January 2017)
* The Directors did not seek for re-election at the Annual General Meeting on 29 September 2016. DIRECTORS’ INTERESTS
According to the Register of Directors’ Shareholdings, particulars of interests of Directors of the Company who held office at the end of the financial year, in shares of the Company and in its related corporations were as follows: Number of ordinary shares As at
1 April 2016
Acquired
Disposed As at
31 March 2017 Holding Company Etika Strategi Sdn. Bhd. Direct interest Brig. Gen. (K) Tan Sri Dato’ Sri (Dr.) Haji Mohd Khamil bin Jamil
30,000
-
-
30,000 Other than as disclosed above, according to the Register of Directors’ Shareholdings, none of the other Directors of the Company in office at the end of the financial year held any interest in shares in the Company or its related corporations during the financial year.
164 DRB-HICOM BERHADANNUAL REPORT 2017
DIRECTORS’ REPORT (Continued) DIRECTORS’ BENEFITS
During and at the end of the financial year, no arrangement subsisted to which the Company is a party, being arrangements with the object or objects of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.
Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other than emoluments disclosed in Note 7 to the financial statements) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest. DIRECTORS’ INDEMNITY
Directors’ liability insurance is in place to protect the Directors of the Company against potential costs and liabilities arising from claims brought against the Directors. DIRECTORS OF THE SUBSIDIARY COMPANIES
The following is a list of Directors of the subsidiary companies who have held office during the period since the beginning of the financial year to the date of this report: Brig. Gen. (K) Tan Sri Dato’ Sri (Dr.) Haji Mohd
Khamil bin Jamil Tengku Dato’ Seri Hasmuddin bin Tengku Othman
Dato’ Sri Syed Faisal Albar bin Syed A.R. Albar Tan Sri Dato’ Dr Mohd Munir bin Abdul Majid Datuk Mohamed Razeek bin Md Hussain
Maricar Tan Sri Dato’ Seri Mohd Zahidi bin Haji Zainuddin
Dato’ Abdul Harith bin Abdullah Gen. Tan Sri Dato’ Sri Roslan bin Saad Dato’ Khalid bin Abdol Rahman Dato’ Sri Che Khalib bin Mohamad Noh Dato’ Chan Choy Lin Dato’ Azmi bin Abdullah Dato’ Haji Mohd Redza Shah bin Abdul Wahid Dato’ Haji Kamil Khalid Ariff Dato’ Ahmad Fuaad bin Mohd Kenali Dato’ Mohamad bin Saif @ Saib Dato’ Md Radzaif bin Mohamed Dato’ Haji Mohd Izani bin Ghani Dato’ Haji Mohd Zain bin Haji Hassan Dato’ Wong Lum Kong Dato’ Mohd Shukrie bin Mohd Salleh* Dato’ Lim Tiong Boon Dato’ Bahar bin Ahmad Dato’ Hilmi bin Mohd Noor Dato’ Haji Amril bin Samsudin Dato’ Eshah binti Meor Suleiman* Dato’ Azlan bin Shahrim* Dato’ Ibrahim Mahaludin bin Puteh* Amalanathan Thomas Dato’ Abdul Hamid bin Sh Mohamed* Aminah binti Othman Dato’ Sri Dr. Mohmad Isa bin Hussain*
Hamizan bin Osman Dato’ Zainudin bin Che Din Rohime bin Shafie Dato’ Sri Solah bin Mat Hassan Ainol Azmil bin Abu Bakar Dato’ Dr. Adnan bin Alias Mohammed Shukor bin Ismail Datuk Kamarudin bin Md Ali Mohd Aslam Khan bin Farikullah Datuk Puteh Rukiah binti Abd Majid* Mohd Khalid bin Yusof Datuk Lee Chin Yong Shuhaida binti Nun Dr. Azura binti Othman Muhammad Noor bin Abd Aziz @ Hashim* Dr. Hans Eggenberger PeerMohamed bin Ibramsha Lim How Ghee Azman Hanafi bin Abdullah Rin Nan Lun Fakihah binti Azahari Rin Nan Yoong Mohamad Fazly bin Hassan Ho Chun Foh
165DRB-HICOM BERHADANNUAL REPORT 2017
DIRECTORS’ REPORT (Continued) DIRECTORS OF THE SUBSIDIARY COMPANIES (Continued)
The following is a list of Directors of the subsidiary companies who have held office during the period since the beginning of the financial year to the date of this report: (Continued) Koon Chee Wah Kamil Ahmad Merican Tung Kok Sing Ng Kong Chin Chai Lai Sim Tang Hon Shan Ain bin Saim David Chan Mun Wai Vipin Kumar Agrawal Lim Hwa Yu* Muhammad Aris bin Anuar Tay Inn Meng Matsuo Hirokazu Hasnul bin Haniff* Shoichi Araya Martin Erdmann Schuler Gerhard Meier David Castell Arenillas Chong Hock Lye Richard Hill Adi Asri bin Baharom Jonathan Garwood Syed Alwi bin Mohamed Sultan Michael Boore Nor Azizan bin Tarja @ Tarjo* Christopher Michael Adams Elias bin Effendy* Wong Yoke Kow (Alternate Director to Dato’ Wong Lum Kong) Dato’ Siti Fatimah binti Daud (Appointed on 1 April 2016) Yohan bin Mokhtar (Appointed on 1 April 2016) Naoki Kawaguchi (Appointed on 12 April 2016) Shaharul Farez bin Hassan (Appointed on 25 July 2016) Norahmadi bin Sulong (Appointed on 1 August 2016) Varsha Chandukar (Appointed on 30 August 2016) Amran bin Mohd Tomin (Appointed on 17 November 2016) Loo Hon Kok (Appointed on 21 November 2016) Azwan bin Sulaiman (Appointed on 21 November 2016) Ahmad Suhaimi bin Endut (Alternate Director to Dato’ Sri
Dr. Mohmad Isa bin Hussain)* (Appointed on 7 December 2016)
Datuk Idris bin Abdullah @ Das Murthy (Appointed on 1 January 2017) Toshihide Saito (Alternate Director to Shoichi Araya) (Appointed on 1 January 2017) Ghazali bin Haji Darman (Appointed on 4 January 2017) Abd Aziz bin Miskon (Appointed on 13 January 2017) Mazatul ‘Aini Shahar binti Abdul Malek Shahar (Appointed on 21 February 2017) Abdul Rashid bin Musa (Appointed on 21 February 2017) Takeshi Mishina (Appointed on 20 March 2017) Dato’ Mohd Fuad bin Abd Latiff (Appointed on 1 July 2017) Yoshitaka Tamura (Resigned on 1 April 2016) Bahaman bin Kamaruzzaman (Resigned on 2 April 2016) Dato’ Hisham bin Othman (Resigned on 15 April 2016) Che Akhma bin Ismail (Resigned on 24 June 2016) Norzahid bin Mohd Zahudi (Resigned on 24 June 2016) Tan Hui Sheng (Resigned on 30 June 2016) Nasharuddin bin Zaini (Alternate Director to Datuk
Mohamed Razeek bin Md Hussain Maricar) (Resigned on 25 July 2016)
Sharifatul Hanizah binti Said Ali (Resigned on 1 August 2016) Datuk Ir Kamarulzaman bin Haji Zainal (Resigned on 15 August 2016) Kaye Amies (Resigned on 30 August 2016) Osamu Fujimoto (Resigned on 1 September 2016) Datuk Haji Abdul Rahman bin Mohd Ramli (Resigned on 29 September 2016) Brian John Collier (Resigned on 30 September 2016) Abdul Jabar bin Abdul Majid (Resigned on 12 October 2016) Suzana binti Mohd Drus (Resigned on 31 December 2016)
166 DRB-HICOM BERHADANNUAL REPORT 2017
DIRECTORS’ REPORT (Continued) DIRECTORS OF THE SUBSIDIARY COMPANIES (Continued)
The following is a list of Directors of the subsidiary companies who have held office during the period since the beginning of the financial year to the date of this report: (Continued) Tan Sri Marzuki bin Mohd Noor (Resigned on 1 January 2017) Ong Ie Cheong (Resigned on 1 January 2017) Yukihiro Kakishima (Resigned on 1 January 2017) Azhar bin Ahmad (Resigned on 13 January 2017) Mashitah binti Osman (Resigned on 14 February 2017) Zul Bahari bin Abu Bakar (Resigned on 17 February 2017) Hwang Chee Leong (Resigned on 17 February 2017) Wong Teng Joo (Resigned on 17 February 2017) Syed Mohamad Jamil bin Syed Ahmad (Resigned on 28 February 2017) Yoshihiro Yamazaki (Resigned on 20 March 2017) Dato’ Syed Mohamad bin Syed Murtaza (Resigned on 6 April 2017) Mohd Rani Hisham bin Samsudin (Resigned on 25 April 2017) Choo Chun Kui (Resigned on 8 May 2017)
* By virtue of Pos Malaysia Berhad became a subsidiary company of the Group. STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS
Before the statements of comprehensive income and statements of financial position were made out, the Directors took reasonable steps: (a) to ascertain that action had been taken in relation to the writing off of bad debts and the making of
allowance for doubtful debts and had satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for doubtful debts; and
(b) to ensure that any current assets which were unlikely to realise their values as shown in the
accounting records of the Group and of the Company in the ordinary course of business had been written down to an amount which they might be expected so to realise.
At the date of this report, the Directors are not aware of any circumstances: (a) which would render the amounts written off for bad debts or the amounts of the allowance for
doubtful debts made in the financial statements of the Group and of the Company inadequate to any substantial extent;
(b) which would render the values attributed to current assets in the financial statements of the Group
and of the Company misleading; and (c) which have arisen which would render adherence to the existing method of valuation of assets or
liabilities of the Group and of the Company misleading or inappropriate. No contingent or other liability has become enforceable or is likely to become enforceable within the period of 12 months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group or of the Company to meet their obligations as and when they fall due.
167DRB-HICOM BERHADANNUAL REPORT 2017
DIRECTORS’ REPORT (Continued)
STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS (Continued) At the date of this report, there does not exist: (a) any charge on the assets of the Group and of the Company which has arisen since the end of the
financial year which secures the liability of any other person; or (b) any contingent liability of the Group and of the Company which has arisen since the end of the
financial year.
At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Group and of the Company which would render any amount stated in the financial statements misleading. In the opinion of the Directors, other than as disclosed in the financial statements: (a) the results of the Group’s and of the Company’s operations during the financial year were not
substantially affected by any item, transaction or event of a material and unusual nature; and (b) there has not arisen in the interval between the end of the financial year and the date of this report
any item, transaction or event of a material and unusual nature likely to substantially affect the results of the operations of the Group or of the Company for the financial year in which this report is made.
HOLDING COMPANY
The Directors regard Etika Strategi Sdn. Bhd., a company incorporated in Malaysia, as the holding company. AUDITORS
The auditors’ remuneration are disclosed in Note 6 to the financial statements. The auditors, Ernst & Young, have expressed their willingness to continue in office. Signed on behalf of the Board in accordance with a resolution of the Directors dated 10 July 2017. BRIG. GEN. (K) TAN SRI DATO’ SRI (DR.) HAJI MOHD KHAMIL BIN JAMIL Chairman DATO’ SRI SYED FAISAL ALBAR BIN SYED A.R. ALBAR Group Managing Director
168 DRB-HICOM BERHADANNUAL REPORT 2017
STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
Group Company
Note
2017
RM’000
2016 (Restated)
RM’000
2017
RM’000
2016
RM’000
Revenue 4 12,058,334 12,172,941 897,315 399,434
Cost of sales 5 (10,556,030) (11,001,547) - -
Gross profit 1,502,304 1,171,394 897,315 399,434
Other income
- gain on disposals of subsidiary companies (net) 52(i) 398,257 - - -
- others 439,248 469,483 15,437 8,207
Selling and distribution costs (343,907) (378,761) - -
Administrative expenses (1,404,943) (1,601,500) (32,154) (52,028)
Other expenses
- loss on re-measurement of the previously held equity interest in an associated company at its acquisition-date fair value 6 (130,221) - - -
- others (561,499) (327,717) (363,074) (590,972)
Finance costs 9 (370,905) (382,094) (158,708) (151,215)
Share of results of joint ventures (net of tax) 19(d) 9,575 22,059 - -
Share of results of associated companies (net of tax) 20(h) 239,907 205,006 - -
(Loss)/profit before taxation 6 (222,184) (822,130) 358,816 (386,574)
Taxation 10 (38,218) (49,491) (2,297) (2,698)
Net (loss)/profit for the financial year (260,402) (871,621) 356,519 (389,272) Other comprehensive (loss)/income
Items that will not be reclassified subsequently to profit or loss:
Net gain/(loss) on valuation of post-employment benefit obligations 4,376 (5,478) - -
Fair value adjustment on investment properties - 528 - -
Items that will be reclassified subsequently to profit or loss:
Net (loss)/gain on fair value changes of investment securities: available-for-sale (11,560) 10,804 - -
Currency translation differences of foreign subsidiary companies (3,644) 54,857 - -
Sub-total carried forward (10,828) 60,711 - -
STATEMENTS OF COMPREHENSIVE INCOMEFor The Financial Year Ended 31 March 2017
169DRB-HICOM BERHADANNUAL REPORT 2017
STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 (Continued)
Group Company
Note
2017
RM’000
2016 (Restated)
RM’000
2017
RM’000
2016
RM’000 Other comprehensive (loss)/income
(Continued)
Sub-total brought forward (10,828) 60,711 - -
Reclassification adjustments:
Transfer of reserve of a foreign subsidiary company to profit or loss upon disposal (37,387) - - -
Transfer of reserve of an associated company to profit or loss upon disposal - (4,604) - -
Other comprehensive (loss)/income for the financial year (net of tax) (48,215) 56,107 - -
Total comprehensive (loss)/income for the financial year (308,617) (815,514) 356,519 (389,272)
Net (loss)/profit for the financial year attributable to:
Owners of the Company (454,401) (992,763) 276,864 (466,137)
Holders of Perpetual Sukuk 79,655 76,865 79,655 76,865
Holders of Redeemable Convertible Cumulative Preference Shares 40,685 - - -
Non-controlling interest 73,659 44,277 - -
(260,402) (871,621) 356,519 (389,272)
Total comprehensive (loss)/income for the financial year attributable to:
Owners of the Company (500,127) (941,273) 276,864 (466,137)
Holders of Perpetual Sukuk 79,655 76,865 79,655 76,865
Holders of Redeemable Convertible Cumulative Preference Shares 40,685 - - -
Non-controlling interest 71,170 48,894 - -
(308,617) (815,514) 356,519 (389,272) Basic and diluted loss per share (sen) 12 (23.50) (51.35)
The notes set out on pages 21 to 189 form an integral part of the financial statements.
STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 (Continued)
Group Company
Note
2017
RM’000
2016 (Restated)
RM’000
2017
RM’000
2016
RM’000 Other comprehensive (loss)/income
(Continued)
Sub-total brought forward (10,828) 60,711 - -
Reclassification adjustments:
Transfer of reserve of a foreign subsidiary company to profit or loss upon disposal (37,387) - - -
Transfer of reserve of an associated company to profit or loss upon disposal - (4,604) - -
Other comprehensive (loss)/income for the financial year (net of tax) (48,215) 56,107 - -
Total comprehensive (loss)/income for the financial year (308,617) (815,514) 356,519 (389,272)
Net (loss)/profit for the financial year attributable to:
Owners of the Company (454,401) (992,763) 276,864 (466,137)
Holders of Perpetual Sukuk 79,655 76,865 79,655 76,865
Holders of Redeemable Convertible Cumulative Preference Shares 40,685 - - -
Non-controlling interest 73,659 44,277 - -
(260,402) (871,621) 356,519 (389,272)
Total comprehensive (loss)/income for the financial year attributable to:
Owners of the Company (500,127) (941,273) 276,864 (466,137)
Holders of Perpetual Sukuk 79,655 76,865 79,655 76,865
Holders of Redeemable Convertible Cumulative Preference Shares 40,685 - - -
Non-controlling interest 71,170 48,894 - -
(308,617) (815,514) 356,519 (389,272) Basic and diluted loss per share (sen) 12 (23.50) (51.35)
The notes set out on pages 21 to 189 form an integral part of the financial statements. The notes set out on pages 182 to 350 form an integral part of the financial statements.
170 DRB-HICOM BERHADANNUAL REPORT 2017
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2017
Note
2017
RM’000
2016 (Restated)
RM’000 ASSETS NON-CURRENT ASSETS
Property, plant and equipment 13 6,352,474 5,708,050 Concession assets 14 217,152 227,051 Prepaid lease properties 15 50,813 52,024 Investment properties 16 246,889 617,955 Land held for property development 17(a) 1,182,226 985,141 Joint ventures 19 413,826 451,023 Associated companies 20 756,543 1,364,616 Intangible assets 21 1,812,523 1,680,322 Deferred tax assets 22 147,192 91,719 Investment securities: financial assets at fair value through
profit or loss
23(a)
- Banking 197,208 186,355
Investment securities: available-for-sale 23(b) - Banking 5,040,929 5,058,434 - Non-banking 46,153 46,203
Investment securities: held-to-maturity 23(c) - Banking 142,168 140,607
Trade and other receivables 29 264,144 104,589 Other assets 24 516 441 Banking related assets
- Financing of customers 25 10,772,103 10,600,485 - Statutory deposit with Bank Negara Malaysia 26 698,636 703,261
28,341,495 28,018,276
CURRENT ASSETS
Assets held for sale 27 4,500 10,819 Inventories 28 2,285,452 1,760,627 Property development costs 17(b) 140,186 284,145 Trade and other receivables 29 3,859,027 4,274,409 Tax recoverable 198,533 243,000 Investment securities: financial assets at fair value through
profit or loss 23(a)
- Non-banking 175 -
Investment securities: available-for-sale 23(b) - Banking 1,090,487 641,732
Banking related assets - Cash and short-term funds 32 1,049,925 1,069,101 - Financing of customers 25 3,939,713 3,726,891
Short term deposits 30 1,332,531 1,420,553 Cash and bank balances 31 1,544,331 550,999 Derivative assets 33 61,494 40,951
15,506,354 14,023,227
TOTAL ASSETS 43,847,849 42,041,503
CONSOLIDATED STATEMENT OFFINANCIAL POSITIONAs At 31 March 2017
171DRB-HICOM BERHADANNUAL REPORT 2017
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2017 (Continued)
The notes set out on pages 21 to 189 form an integral part of the financial statements.
Note
2017
RM’000
2016 (Restated)
RM’000
EQUITY AND LIABILITIES EQUITY
Share capital 34 1,740,302 1,719,601 Reserves 4,333,727 4,822,624
Equity attributable to Owners of the Company 6,074,029 6,542,225 Perpetual Sukuk 35 1,051,839 1,051,859 Redeemable Convertible Cumulative Preference Shares 36 1,289,550 - Non-controlling interest 1,723,097 908,359
TOTAL EQUITY 10,138,515 8,502,443
NON-CURRENT LIABILITIES
Deferred income 37 151,621 119,690
Long term borrowings 38 4,105,407 4,303,493 Provision for liabilities and charges 39 90,556 125,204 Provision for concession assets 40 138,809 103,841 Post-employment benefit obligations 41 37,741 44,033
Deferred tax liabilities 22 129,375 66,335 Banking related liabilities
- Deposits from customers 42 418,615 66,987
5,072,124 4,829,583
CURRENT LIABILITIES
Deferred income 37 48,410 64,570
Trade and other payables 43 6,420,456 6,155,527 Provision for liabilities and charges 39 274,993 283,792 Provision for concession assets 40 6,146 25,214 Post-employment benefit obligations 41 495 477
Bank borrowings 44 - Bank overdrafts 6,511 21,462 - Others 2,186,391 2,546,305
Tax payable 78,815 15,514
Banking related liabilities - Deposits from customers 42 18,979,279 19,026,668 - Deposits and placements of banks and other financial
institutions 45 561,654
442,252
- Bills and acceptances payable 46 9,196 29,350 Derivative liabilities 33 64,864 98,346
28,637,210 28,709,477 TOTAL LIABILITIES 33,709,334 33,539,060 TOTAL EQUITY AND LIABILITIES 43,847,849 42,041,503
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2017 (Continued)
The notes set out on pages 21 to 189 form an integral part of the financial statements.
Note
2017
RM’000
2016 (Restated)
RM’000
EQUITY AND LIABILITIES EQUITY
Share capital 34 1,740,302 1,719,601 Reserves 4,333,727 4,822,624
Equity attributable to Owners of the Company 6,074,029 6,542,225 Perpetual Sukuk 35 1,051,839 1,051,859 Redeemable Convertible Cumulative Preference Shares 36 1,289,550 - Non-controlling interest 1,723,097 908,359
TOTAL EQUITY 10,138,515 8,502,443
NON-CURRENT LIABILITIES
Deferred income 37 151,621 119,690
Long term borrowings 38 4,105,407 4,303,493 Provision for liabilities and charges 39 90,556 125,204 Provision for concession assets 40 138,809 103,841 Post-employment benefit obligations 41 37,741 44,033
Deferred tax liabilities 22 129,375 66,335 Banking related liabilities
- Deposits from customers 42 418,615 66,987
5,072,124 4,829,583
CURRENT LIABILITIES
Deferred income 37 48,410 64,570
Trade and other payables 43 6,420,456 6,155,527 Provision for liabilities and charges 39 274,993 283,792 Provision for concession assets 40 6,146 25,214 Post-employment benefit obligations 41 495 477
Bank borrowings 44 - Bank overdrafts 6,511 21,462 - Others 2,186,391 2,546,305
Tax payable 78,815 15,514
Banking related liabilities - Deposits from customers 42 18,979,279 19,026,668 - Deposits and placements of banks and other financial
institutions 45 561,654
442,252
- Bills and acceptances payable 46 9,196 29,350 Derivative liabilities 33 64,864 98,346
28,637,210 28,709,477 TOTAL LIABILITIES 33,709,334 33,539,060 TOTAL EQUITY AND LIABILITIES 43,847,849 42,041,503
The notes set out on pages 182 to 350 form an integral part of the financial statements.
172 DRB-HICOM BERHADANNUAL REPORT 2017
COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2017
The notes set out on pages 21 to 189 form an integral part of the financial statements.
Note
2017 RM’000
2016 RM’000
ASSETS NON-CURRENT ASSETS
Property, plant and equipment 13 120 371 Investment properties 16 130,654 136,355 Subsidiary companies 18 8,393,610 8,118,732 Joint ventures 19 4,686 4,686 Associated companies 20 61,170 676,440
8,590,240 8,936,584
CURRENT ASSETS Trade and other receivables 29 1,223,107 1,146,431 Short term deposits 30 223,771 239,534 Cash and bank balances 31 33,707 11,909
1,480,585 1,397,874 TOTAL ASSETS 10,070,825 10,334,458
EQUITY AND LIABILITIES EQUITY
Share capital 34 1,740,302 1,719,601 Reserves 3,921,988 3,704,490
Equity attributable to Owners of the Company 5,662,290 5,424,091 Perpetual Sukuk 35 1,051,839 1,051,859
TOTAL EQUITY 6,714,129 6,475,950
NON-CURRENT LIABILITIES
Long term borrowings 38 1,538,388 1,405,632 Deferred tax liabilities 22 647 1,278
1,539,035 1,406,910
CURRENT LIABILITIES Trade and other payables 43 1,569,910 1,741,705 Bank borrowings - Others 44 245,631 708,694 Tax payable 2,120 1,199
1,817,661 2,451,598 TOTAL LIABILITIES 3,356,696 3,858,508
TOTAL EQUITY AND LIABILITIES 10,070,825 10,334,458
The notes set out on pages 182 to 350 form an integral part of the financial statements.
COMPANY STATEMENT OFFINANCIAL POSITIONAs At 31 March 2017
173DRB-HICOM BERHADANNUAL REPORT 2017
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mp
any
RM
’000
Per
pet
ual
S
uku
k (N
ote
35)
RM
’000
No
n-
con
tro
llin
g
Inte
rest
R
M’0
00
T
ota
l R
M’0
00
2017
At 1
Apr
il 20
16
1,
719,
601
20,7
01
1,00
0,03
9 (4
3,63
1)
6,74
9 36
7,63
8 3,
471,
991
6,54
3,08
8 1,
051,
859
- 90
8,34
2 8,
503,
289
Prio
r ye
ar’s
adj
ustm
ents
51
(i)(f
) -
- -
- -
- (8
63)
(863
) -
- 17
(8
46)
As
rest
ated
1,71
9,60
1 20
,701
1,
000,
039
(43,
631)
6,
749
367,
638
3,47
1,12
8 6,
542,
225
1,05
1,85
9 -
908,
359
8,50
2,44
3
Tra
nsfe
r of
sha
re p
rem
ium
on
31
Janu
ary
2017
20,7
01
(20,
701)
-
- -
- -
- -
- -
-
Net
(lo
ss)/
prof
it fo
r th
e fin
anci
al y
ear
-
- -
- -
- (4
54,4
01)
(454
,401
) 79
,655
40
,685
73
,659
(2
60,4
02)
Oth
er c
ompr
ehen
sive
(lo
ss)/
inco
me
for
the
finan
cial
yea
r, n
et o
f tax
- -
- (4
2,29
1)
(8,1
07)
4,67
2 -
(45,
726)
-
- (2
,489
) (4
8,21
5)
Tot
al c
ompr
ehen
sive
(lo
ss)/
inco
me
for
the
finan
cial
yea
r
- -
- (4
2,29
1)
(8,1
07)
4,67
2 (4
54,4
01)
(500
,127
) 79
,655
40
,685
71
,170
(3
08,6
17)
Tra
nsac
tions
with
Ow
ners
Net
issu
ance
of R
CC
PS
- -
- -
- -
- -
- 1,
248,
865
- 1,
248,
865
Dis
trib
utio
n to
hol
ders
of
Per
petu
al S
ukuk
- -
- -
- -
- -
(79,
675)
-
- (7
9,67
5)
Dis
posa
ls o
f sub
sidi
ary
com
pani
es
52(i)
-
- (1
,965
) -
- -
1,96
5 -
- -
(27,
185)
(2
7,18
5)
Sub
-tot
al c
arrie
d fo
rwar
d
1,74
0,30
2 -
998,
074
(85,
922)
(1
,358
) 37
2,31
0 3,
018,
692
6,04
2,09
8 1,
051,
839
1,28
9,55
0 95
2,34
4 9,
335,
831
CO
NS
OLI
DAT
ED
STA
TE
ME
NT
OF
CH
AN
GE
S IN
EQ
UIT
YFo
r Th
e Fi
nanc
ial Y
ear
Ende
d 31
Mar
ch 2
017
174 DRB-HICOM BERHADANNUAL REPORT 2017
CO
NS
OL
IDA
TE
D S
TA
TE
ME
NT
OF
CH
AN
GE
S IN
EQ
UIT
Y F
OR
TH
E F
INA
NC
IAL
YE
AR
EN
DE
D 3
1 M
AR
CH
201
7 (C
on
tin
ued
)
No
n-d
istr
ibu
tab
le
R
edee
mab
le
Co
nve
rtib
le
Cu
mu
lati
ve
Pre
fere
nce
S
har
es
(“R
CC
PS
”)
(N
ote
36)
R
M’0
00
No
te
Sh
are
Cap
ital
(N
ote
34)
R
M’0
00
Sh
are
Pre
miu
m
RM
’000
Mer
ger
R
eser
ve
(No
te 4
7)
RM
’000
Cu
rren
cy
Tra
nsl
atio
n
Dif
fere
nce
s R
M’0
00
Ava
ilab
le-
for-
sale
R
eser
ve
RM
’000
Oth
er
Res
erve
s (N
ote
48)
R
M’0
00
Ret
ain
ed
Ear
nin
gs
RM
’000
Eq
uit
y at
trib
uta
ble
to
O
wn
ers
of
the
Co
mp
any
RM
’000
Per
pet
ual
S
uku
k (N
ote
35)
RM
’000
No
n-
con
tro
llin
g
Inte
rest
R
M’0
00
T
ota
l R
M’0
00
2017
(C
on
tin
ued
)
Sub
-tot
al b
roug
ht fo
rwar
d
1,74
0,30
2 -
998,
074
(85,
922)
(1
,358
) 37
2,31
0 3,
018,
692
6,04
2,09
8 1,
051,
839
1,28
9,55
0 95
2,34
4 9,
335,
831
Effe
ct o
n de
cons
olid
atio
n of
su
bsid
iary
com
pani
es
unde
r cr
edito
rs’ v
olun
tary
w
indi
ng u
p
- -
214,
201
- -
660
(215
,456
) (5
95)
- -
(13,
849)
(1
4,44
4)
Effe
ct o
f cha
nges
in
shar
ehol
ding
/ass
ets
in
subs
idia
ry c
ompa
nies
- -
- 1,
591
- 81
,072
(1
1,47
2)
71,1
91
- -
299,
820
371,
011
Effe
ct o
f cha
nge
of a
n as
soci
ated
com
pany
to a
su
bsid
iary
com
pan
y
-
- -
- -
(368
) 36
8 -
- -
507,
426
507,
426
Tra
nsfe
r of
sub
sidi
ary
com
pani
es’ r
eser
ves
-
- -
- -
46,4
57
(46,
457)
-
- -
- -
Div
iden
d pa
id to
non
-co
ntro
lling
inte
rest
- -
- -
- -
- -
- -
(22,
644)
(2
2,64
4)
Firs
t and
fina
l div
iden
d in
re
spec
t of f
inan
cial
yea
r en
ded
31 M
arch
201
6 11
-
- -
- -
- (3
8,66
5)
(38,
665)
-
- -
(38,
665)
At
31 M
arch
201
7
1,74
0,30
2 -
1,21
2,27
5 (8
4,33
1)
(1,3
58)
500,
131
2,70
7,01
0 6,
074,
029
1,05
1,83
9 1,
289,
550
1,72
3,09
7 10
,138
,515
175DRB-HICOM BERHADANNUAL REPORT 2017
CO
NS
OL
IDA
TE
D S
TA
TE
ME
NT
OF
CH
AN
GE
S IN
EQ
UIT
Y F
OR
TH
E F
INA
NC
IAL
YE
AR
EN
DE
D 3
1 M
AR
CH
201
7 (C
on
tin
ued
)
No
te
N
on
-dis
trib
uta
ble
Eq
uit
y at
trib
uta
ble
to
O
wn
ers
of
the
Co
mp
any
RM
’000
Sh
are
C
apit
al
(No
te 3
4)
RM
’000
S
har
e P
rem
ium
R
M’0
00
Mer
ger
R
eser
ve
(No
te 4
7)
RM
’000
Cu
rren
cy
Tran
slat
ion
D
iffe
ren
ces
RM
’000
Ava
ilab
le-
for-
sale
R
eser
ve
RM
’000
Oth
er
Res
erve
s (N
ote
48)
R
M’0
00
Ret
ain
ed
Ear
nin
gs
R
M’0
00
Per
pet
ual
S
uku
k (N
ote
35)
R
M’0
00
No
n-
con
tro
llin
g
Inte
rest
R
M’0
00
To
tal
RM
’000
2016
(R
esta
ted
)
At 1
Apr
il 20
15
1,
719,
601
20
,701
1,
000,
039
(92,
529)
(8
14)
324,
688
4,59
8,80
8 7,
570,
494
822,
291
959,
290
9,35
2,07
5
Net
(lo
ss)/
prof
it fo
r th
e fin
anci
al
year
- -
-
-
-
- (9
92,7
63)
(992
,763
) 76
,865
44
,277
(8
71,6
21)
Oth
er c
ompr
ehen
sive
in
com
e/(lo
ss)
for
the
finan
cial
ye
ar, n
et o
f tax
- -
- 48
,898
7,
563
(4,9
71)
- 51
,490
-
4,61
7 56
,107
Tot
al c
ompr
ehen
sive
inco
me/
(loss
) fo
r th
e fin
anci
al y
ear
-
- -
48,8
98
7,56
3 (4
,971
) (9
92,7
63)
(941
,273
) 76
,865
48
,894
(8
15,5
14)
Tra
nsac
tions
with
Ow
ners
Net
issu
ance
of P
erpe
tual
Suk
uk
-
- -
-
- -
- -
223,
841
-
223
,841
Dis
trib
utio
n to
hol
ders
of P
erpe
tual
S
ukuk
- -
-
-
-
- -
-
(7
1,13
8)
- (7
1,13
8)
Acq
uisi
tion
of a
sub
sidi
ary
com
pany
51
(iii)
- -
-
-
-
- -
- -
(3,0
31)
(3,0
31)
Cap
ital r
epay
men
t to
non-
cont
rolli
ng
inte
rest
of a
sub
sidi
ary
com
pany
- -
-
-
-
- -
- -
(86,
460)
(8
6,46
0)
Tra
nsfe
r of
a s
ubsi
diar
y co
mpa
ny’s
re
serv
es
-
- -
-
- 47
,921
(4
7,92
1)
- -
- -
Div
iden
d pa
id to
non
-con
trol
ling
inte
rest
- -
-
-
-
- -
- -
(10,
334)
(1
0,33
4)
Fin
al d
ivid
end
in r
espe
ct o
f fin
anci
al y
ear
ende
d 31
Mar
ch
2015
11
-
- -
-
- -
(86,
996)
(8
6,99
6)
- -
(86,
996)
At
31 M
arch
201
6
1,
719,
601
20
,701
1,
000,
039
(43,
631)
6,
749
367,
638
3,47
1,12
8 6,
542,
225
1,05
1,85
9 90
8,35
9 8,
502,
443
The
not
es s
et o
ut o
n pa
ges
21 to
189
form
an
inte
gral
par
t of t
he fi
nanc
ial s
tate
men
ts.
The
note
s se
t out
on
page
s 18
2 to
350
form
an
inte
gral
par
t of t
he fi
nanc
ial s
tate
men
ts.
176 DRB-HICOM BERHADANNUAL REPORT 2017
CO
MP
AN
Y S
TA
TE
ME
NT
OF
CH
AN
GE
S IN
EQ
UIT
Y F
OR
TH
E F
INA
NC
IAL
YE
AR
EN
DE
D 3
1 M
AR
CH
201
7
No
te
N
on
-dis
trib
uta
ble
D
istr
ibu
tabl
e
Eq
uity
at
trib
uta
ble
to
Ow
ner
s o
f th
e C
om
pan
y
R
M’0
00
Per
pet
ual
Su
kuk
(N
ote
35)
RM
’000
Sh
are
Cap
ital
(No
te 3
4)
RM
’000
Sh
are
P
rem
ium
RM
’000
Mer
ger
Res
erve
(N
ote
47)
R
M’0
00
Ret
ain
ed
Ear
nin
gs
(No
te 5
0)
RM
’000
T
ota
l R
M’0
00
2017
At 1
Apr
il 20
16
1,
719,
601
20,7
01
2,31
8,32
1 1,
365,
468
5,42
4,09
1 1,
051,
859
6,47
5,95
0
Tra
nsfe
r of
sha
re p
rem
ium
on
31 J
anua
ry 2
017
20
,701
(2
0,70
1)
- -
- -
-
Net
pro
fit fo
r th
e fin
anci
al y
ear
repr
esen
ting
tota
l com
preh
ensi
ve in
com
e fo
r th
e fin
anci
al y
ear
-
- -
276,
864
276,
864
79,6
55
356,
519
Tra
nsac
tions
with
Ow
ners
Dis
trib
utio
n to
hol
ders
of P
erpe
tual
Suk
uk
-
- -
- -
(79,
675)
(7
9,67
5)
Firs
t and
fina
l div
iden
d in
res
pect
of f
inan
cial
yea
r en
ded
31 M
arch
201
6 11
-
- -
(38,
665)
(3
8,66
5)
- (3
8,66
5)
At
31 M
arch
201
7
1,74
0,30
2 -
2,31
8,32
1 1,
603,
667
5,66
2,29
0 1,
051,
839
6,71
4,12
9
2016
At 1
Apr
il 20
15
1,
719,
601
20,7
01
2,31
8,32
1 1,
918,
601
5,97
7,22
4 82
2,29
1 6,
799,
515
Net
(lo
ss)/
prof
it fo
r th
e fin
anci
al y
ear
repr
esen
ting
tota
l com
preh
ensi
ve
(loss
)/in
com
e fo
r th
e fin
anci
al y
ear
-
- -
(466
,137
) (4
66,1
37)
76,8
65
(389
,272
)
Tra
nsac
tions
with
Ow
ners
Net
issu
ance
of P
erpe
tual
Suk
uk
-
- -
- -
223,
841
223,
841
Dis
trib
utio
n to
hol
ders
of P
erpe
tual
Suk
uk
-
- -
- -
(71,
138)
(7
1,13
8)
Fin
al d
ivid
end
in r
espe
ct o
f fin
anci
al y
ear
ende
d 31
Mar
ch 2
015
11
- -
- (8
6,99
6)
(86,
996)
-
(86,
996)
At
31 M
arch
201
6
1,
719,
601
20,7
01
2,31
8,32
1 1,
365,
468
5,42
4,09
1 1,
051,
859
6,47
5,95
0
The
not
es s
et o
ut o
n pa
ges
21 to
189
form
an
inte
gral
par
t of t
he fi
nanc
ial s
tate
men
ts.
CO
MP
AN
Y S
TAT
EM
EN
T O
F C
HA
NG
ES
IN E
QU
ITY
For
The
Fina
ncia
l Yea
r En
ded
31 M
arch
201
7
The
note
s se
t out
on
page
s 18
2 to
350
form
an
inte
gral
par
t of t
he fi
nanc
ial s
tate
men
ts.
177DRB-HICOM BERHADANNUAL REPORT 2017
STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
Group Company 2017
RM’000
2016 (Restated)
RM’000
2017
RM’000
2016
RM’000 CASH FLOWS FROM OPERATING
ACTIVITIES Net (loss)/profit for the financial year (260,402) (871,621) 356,519 (389,272)
Adjustments for non-cash items:
Allowance for financing of customers 75,778 68,165 - -
Allowance for doubtful debts (net of write backs):
- trade and other receivables 55 24,006 18 -
- project development receivables - 120,500 - -
Amortisation of:
- concession assets 11,819 12,182 - -
- intangible assets 231,386 178,579 - -
- prepaid lease properties 1,393 1,388 - -
Depreciation of property, plant and equipment 667,640 544,742 251 252
Finance costs 370,905 382,094 158,708 151,215
Financing written off 1,689 18,321 - -
Impairment loss of (net): - intangible assets 55,593 81,473 - -
- investment in subsidiary companies - - 360,154 581,000
- investment in an associated company - - 2,900 530
- investment securities: available-for-sale 16,899 22,825 - -
- property, plant and equipment 8,049 4,355 - -
Inventories written off/down (net of write backs) 17,730 29,659 - -
Loss on re-measurement of the previously held equity interest in an associated company at its acquisition-date fair value
130,221 - - -
Provision for concession assets 34,967 31,941 - -
Provision for liabilities and charges (net) 61,218 284,105 - -
Taxation 38,218 49,491 2,297 2,698
Unrealised foreign exchange differences (net) 81,915 (32,996) - -
Write off of:
- intangible assets 71,348 - - -
- property, plant and equipment 3,729 2,805 - -
Amortisation of deferred income (79,125) (59,361) - -
Dividend income:
- subsidiary companies - - (695,159) (182,600)
- joint venture - - (797) (468)
- associated companies - - (110,296) (152,713)
- other investment (1,328) - - -
Sub-total carried forward 1,539,697 892,653 74,595 10,642
STATEMENTS OF CASH FLOWSFor The Financial Year Ended 31 March 2017
178 DRB-HICOM BERHADANNUAL REPORT 2017
STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 (Continued)
Group Company 2017
RM’000
2016 (Restated)
RM’000
2017
RM’000
2016
RM’000 CASH FLOWS FROM OPERATING
ACTIVITIES (Continued)
Sub-total brought forward 1,539,697 892,653 74,595 10,642
(Gain)/loss on fair value adjustments of:
- investment properties (15,647) (15,420) (6,416) 8,134
- investment securities: financial assets at fair value through profit or loss
(4,812) - - -
Interest income on:
- short term deposits (57,375) (53,126) (8,207) (6,749)
- subsidiary companies - - (76,970) (50,161)
Marked to market (gain)/loss on derivatives (net) (54,025) 75,519 - -
Net gain on disposals of:
- assets held for sale (4,213) (12,267) - -
- investment properties (68) - (500) -
- investment securities: available-for-sale (17,983) (10,250) - -
- investment securities: financial assets at fair value through profit or loss
(907) (617) - -
- property, plant and equipment (52,339) (9,290) - -
- subsidiary companies (398,257) - - -
Share of results of joint ventures (net of tax) (9,575) (22,059) - -
Share of results of associated companies (net of tax) (239,907) (205,006) - -
Cash inflow/(outflow) before working
capital changes
684,589 640,137 (17,498) (38,134)
Amounts due from customers on contracts 786,893 (561,652) - -
Amounts due to customers on contracts 120,342 (10) - -
Inter-company balances 4,937 (72,916) 34,569 70,492
Inventories (553,065) 574,849 - -
Property development costs (94,022) (226,723) - -
Trade and other receivables 64,782 602,071 (450) 7,168
Trade and other payables (543,480) 103,324 (8,294) 69,635
Financing of customers (479,812) (1,149,462) - -
Statutory deposit with Bank Negara Malaysia 4,625 54,460 - -
Deposits from customers 304,239 171,631 - -
Deposits and placements of banks and other financial institutions 119,402 33,416 - -
Bills and acceptances payable (20,154) (38,373) - -
Sub-total carried forward 399,276 130,752 8,327 109,161
179DRB-HICOM BERHADANNUAL REPORT 2017
STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 (Continued)
Group Company
2017
RM’000
2016 (Restated)
RM’000
2017
RM’000
2016
RM’000
CASH FLOWS FROM OPERATING ACTIVITIES (Continued)
Sub-total brought forward 399,276 130,752 8,327 109,161
Interest received 57,102 51,024 8,930 6,268
Dividends received from:
- subsidiary companies - - 695,159 182,600
- joint ventures 39,281 18,556 797 468
- associated companies 134,557 167,061 110,296 152,713
- other investment 1,328 - - -
Finance costs paid (355,518) (378,804) (150,844) (145,521)
Taxation refunds/(paid), net 49,133 (42,512) (339) 41,071
Provision for liabilities and charges paid (153,201) (83,927) - -
Deferred income received 95,873 53,151 - -
Post-employment benefit obligations paid (14,880) (12,502) - -
Provision for concession assets paid (20,987) (3,599) - -
Net cash inflow/(outflow) from operating activities 231,964 (100,800) 672,326 346,760
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of investment securities by a
banking subsidiary company (8,931,887) (6,561,266) - -
Acquisition/subscription of additional shares in a subsidiary company (46) - - (2,056)
Additional cost incurred for land held for property development - (657) - -
Additional/new investment in a joint venture/ an associated company (32,252) (70,752) - -
Capital repayment to non-controlling interest of a subsidiary company - (86,460) - -
Capital repayment by an associated company 7,200 - 7,200 -
Maturity of investment securities 84,206 - - -
Movement in fixed deposits placement with maturity profile more than 3 months 25,154 (11,091) 10,570 (972)
Net cash inflow/(outflow) from acquisitions of subsidiary companies 607,037 (102,627) - (19,568)
Net cash inflow from disposals of subsidiary companies 496,623 - - -
Sub-total carried forward (7,743,965) (6,832,853) 17,770 (22,596)
STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 (Continued)
Group Company
2017
RM’000
2016 (Restated)
RM’000
2017
RM’000
2016
RM’000
CASH FLOWS FROM OPERATING ACTIVITIES (Continued)
Sub-total brought forward 399,276 130,752 8,327 109,161
Interest received 57,102 51,024 8,930 6,268
Dividends received from:
- subsidiary companies - - 695,159 182,600
- joint ventures 39,281 18,556 797 468
- associated companies 134,557 167,061 110,296 152,713
- other investment 1,328 - - -
Finance costs paid (355,518) (378,804) (150,844) (145,521)
Taxation refunds/(paid), net 49,133 (42,512) (339) 41,071
Provision for liabilities and charges paid (153,201) (83,927) - -
Deferred income received 95,873 53,151 - -
Post-employment benefit obligations paid (14,880) (12,502) - -
Provision for concession assets paid (20,987) (3,599) - -
Net cash inflow/(outflow) from operating activities 231,964 (100,800) 672,326 346,760
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of investment securities by a
banking subsidiary company (8,931,887) (6,561,266) - -
Acquisition/subscription of additional shares in a subsidiary company (46) - - (2,056)
Additional cost incurred for land held for property development - (657) - -
Additional/new investment in a joint venture/ an associated company (32,252) (70,752) - -
Capital repayment to non-controlling interest of a subsidiary company - (86,460) - -
Capital repayment by an associated company 7,200 - 7,200 -
Maturity of investment securities 84,206 - - -
Movement in fixed deposits placement with maturity profile more than 3 months 25,154 (11,091) 10,570 (972)
Net cash inflow/(outflow) from acquisitions of subsidiary companies 607,037 (102,627) - (19,568)
Net cash inflow from disposals of subsidiary companies 496,623 - - -
Sub-total carried forward (7,743,965) (6,832,853) 17,770 (22,596)
180 DRB-HICOM BERHADANNUAL REPORT 2017
STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 (Continued)
Group Company 2017
RM’000
2016 (Restated)
RM’000
2017
RM’000
2016
RM’000 CASH FLOWS FROM INVESTING
ACTIVITIES (Continued)
Sub-total brought forward (7,743,965) (6,832,853) 17,770 (22,596)
Net cash outflow from deconsolidation of subsidiary companies (53) - - -
Proceeds from disposals of investment securities by a banking subsidiary company 7,944,507 6,800,089 - -
Proceeds from disposals of property, plant and equipment/investment properties/intangible assets/other assets/assets held for sale 91,728 91,821 11,300 -
Purchases of property, plant and equipment/prepaid lease properties/investment properties/intangible assets (818,735) (1,108,504) (41) (173)
Redemptions of investment securities by a banking subsidiary company 578,718 473,000 - -
Redemption of preference shares by a joint venture 5,000 5,000 - -
Net cash inflow/(outflow) from investing activities 57,200 (571,447) 29,029 (22,769)
CASH FLOWS FROM FINANCING ACTIVITIES
Bank balances in Escrow account arising from Redeemable Convertible Cumulative Preference Shares (“RCCPS”) (3,019) - - -
Dividends paid to non-controlling interest (22,644) (10,334) - -
Dividends paid to shareholders (38,665) (115,995) (38,665) (115,995)
Distribution paid to holders of Perpetual Sukuk (79,675) (71,138) (79,675) (71,138)
Movement in fixed deposits held as security/sinking fund 187,893 39,646 - -
Net proceeds from issuance of RCCPS 1,248,865 - - -
Net proceeds from issuance of Perpetual Sukuk - 223,841 - 223,841
Proceeds from bank borrowings 5,229,103 4,799,928 330,000 86,500
Repayment of borrowings/hire purchase and finance leases (5,732,849) (4,833,443) (658,037) (621,023)
Loans from subsidiary companies (net of repayment) - - (238,373) 38,163
Net cash inflow/(outflow) from financing activities 789,009 32,505 (684,750) (459,652)
STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 (Continued)
Group Company 2017
RM’000
2016 (Restated)
RM’000
2017
RM’000
2016
RM’000 CASH FLOWS FROM INVESTING
ACTIVITIES (Continued)
Sub-total brought forward (7,743,965) (6,832,853) 17,770 (22,596)
Net cash outflow from deconsolidation of subsidiary companies (53) - - -
Proceeds from disposals of investment securities by a banking subsidiary company 7,944,507 6,800,089 - -
Proceeds from disposals of property, plant and equipment/investment properties/intangible assets/other assets/assets held for sale 91,728 91,821 11,300 -
Purchases of property, plant and equipment/prepaid lease properties/investment properties/intangible assets (818,735) (1,108,504) (41) (173)
Redemptions of investment securities by a banking subsidiary company 578,718 473,000 - -
Redemption of preference shares by a joint venture 5,000 5,000 - -
Net cash inflow/(outflow) from investing activities 57,200 (571,447) 29,029 (22,769)
CASH FLOWS FROM FINANCING ACTIVITIES
Bank balances in Escrow account arising from Redeemable Convertible Cumulative Preference Shares (“RCCPS”) (3,019) - - -
Dividends paid to non-controlling interest (22,644) (10,334) - -
Dividends paid to shareholders (38,665) (115,995) (38,665) (115,995)
Distribution paid to holders of Perpetual Sukuk (79,675) (71,138) (79,675) (71,138)
Movement in fixed deposits held as security/sinking fund 187,893 39,646 - -
Net proceeds from issuance of RCCPS 1,248,865 - - -
Net proceeds from issuance of Perpetual Sukuk - 223,841 - 223,841
Proceeds from bank borrowings 5,229,103 4,799,928 330,000 86,500
Repayment of borrowings/hire purchase and finance leases (5,732,849) (4,833,443) (658,037) (621,023)
Loans from subsidiary companies (net of repayment) - - (238,373) 38,163
Net cash inflow/(outflow) from financing activities 789,009 32,505 (684,750) (459,652)
181DRB-HICOM BERHADANNUAL REPORT 2017
STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 (Continued)
Group Company
Note
2017
RM’000
2016 (Restated)
RM’000
2017
RM’000
2016
RM’000 NET INCREASE/(DECREASE) IN CASH
AND CASH EQUIVALENTS 1,078,173 (639,742) 16,605 (135,661)
Effects of foreign currency translation (270) 19,838 - -
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE FINANCIAL YEAR 1,945,062 2,564,966 240,331 375,992
CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL YEAR 3,022,965 1,945,062 256,936 240,331
(a) Cash and cash equivalents at end of the financial year comprise the following:
Short term deposits 1,332,531 1,420,553 223,771 239,534
Cash and bank balances 1,544,331 550,999 33,707 11,909
Cash and short-term funds of a banking subsidiary company
1,049,925 1,069,101 - -
Bank overdrafts (6,511) (21,462) - - 3,920,276 3,019,191 257,478 251,443
Less: Fixed deposits held as security/sinking fund 30(b) (830,665)
(1,018,558)
-
-
Less: Fixed deposits with maturity profile more than 3 months 30(a) (11,242)
(36,396)
(542)
(11,112)
Less: Bank balance in respect of Automotive Development Fund (19,817)
(19,175)
-
-
Less: Bank balances in Escrow account arising from RCCPS (3,019)
-
-
-
Less: Collections held by a postal subsidiary company on behalf of third parties (32,568)
-
-
- 3,022,965 1,945,062 256,936 240,331
(b) Non-cash transactions:
The principal non-cash transactions during the financial year comprise the following:
(i) Acquisitions of property, plant and equipment/intangible assets/investment properties by means of hire purchase, finance lease and payable 53,918 41,748 - -
The notes set out on pages 21 to 189 form an integral part of the financial statements. The notes set out on pages 182 to 350 form an integral part of the financial statements.
182 DRB-HICOM BERHADANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2017 1 CORPORATE INFORMATION
The Company is an investment holding company with investments in the automotive (including defence and composite manufacturing), services (including integrated logistics, banking and postal businesses) and property, asset and construction segments. There was no significant change in these activities during the financial year. The principal activities of the subsidiary companies, joint ventures and associated companies are described in Note 3. The Directors regard Etika Strategi Sdn. Bhd., a company incorporated in Malaysia, as the holding company.
The Company is a public limited liability company, incorporated and domiciled in Malaysia, and
listed on the Bursa Malaysia Securities Berhad. The address of the registered office and principal place of business of the Company is Level 5, Wisma DRB-HICOM, No. 2, Jalan Usahawan U1/8, Seksyen U1, 40150 Shah Alam, Selangor Darul Ehsan, Malaysia.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies, unless otherwise stated below, have been used consistently in dealing with items which are considered material in relation to the financial statements:
2.1 Basis of preparation
The financial statements comply with the provisions of the Companies Act 2016 and Financial Reporting Standards (“FRSs”) in Malaysia.
The financial statements of the Group and of the Company are prepared under the
historical cost convention except for those that are disclosed in this summary of significant accounting policies.
The preparation of financial statements in conformity with the provisions of the Companies Act 2016 and FRSs in Malaysia, requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported year. Actual results could differ from those estimates. There are no areas involving a higher degree of judgement or complexity, or areas where estimates and assumptions are significant to the financial statements other than as disclosed in Note 56. The comparatives for 31 March 2016 have been restated with adjustments arising from the completion of the purchase price allocation exercise as disclosed in Note 51(i)(f). Certain other comparatives have been reclassified to be consistent with current year’s presentation.
NOTES TO THE FINANCIAL STATEMENTS31 March 2017
183DRB-HICOM BERHADANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2017 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2.2 Changes in accounting policies and effects arising from adoption of new/revised and amendments to FRSs
(i) Changes in accounting policies and effects for the current financial year
The new/revised accounting standards and amendments to published
standards issued by Malaysian Accounting Standards Board (“MASB”) that are applicable to the Group and the Company and effective for the current financial year are as follows:
The adoption of the above standards and amendments did not result in material impact to the financial statements of the Group and of the Company.
(ii) Adoption of Malaysian Financial Reporting Standards Framework (“MFRS”)
On 28 October 2015, MASB has announced to defer the effective date for transitioning entities to apply the MFRS Framework to annual periods beginning on or after 1 January 2018. Therefore, the Group as a transitioning entity will have to adopt the MFRS Framework for annual periods beginning on or after 1 January 2018.
2.3 Impact of new MASB pronouncements
The Group and the Company have not adopted the following published new/amended standards that are applicable to the Group and the Company beginning on or after 1 April 2017. The Group and the Company are currently assessing the impact of the adoption and application of the above new/amended standards.
FRS 14 Regulatory Deferral Accounts
Amendments to FRS 11 Accounting for Acquisitions of Interest in Joint Operations
Amendments to FRS 10, FRS 12 and FRS 128
Investment Entities: Applying the Consolidation Exception
Amendments to FRS 101 Disclosure Initiative
Amendments to FRS 116 and FRS 138
Clarification of Acceptable Methods of Depreciation and Amortisation
Amendments to FRS 127 Equity Method in Separate Financial Statements
Annual Improvements to FRSs 2012 – 2014 Cycle
FRS 9 Financial Instruments
Amendments to FRS 107 Disclosure Initiative
Amendments to FRS 112 Recognition of Deferred Tax Assets for Unrealised Losses
Amendments to FRS 140 Transfers of Investment Property
Annual Improvements to FRSs 2014 – 2016 Cycle
184 DRB-HICOM BERHADANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2017 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2.4 Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiary companies made up to the end of the financial year. Consistent accounting policies are applied to like transactions and events in similar circumstances. Subsidiary companies are those companies in which the Group has the following policies:
(i) Control exists when the Group has existing rights that give it the current ability to
direct the activities that signi�cantly a�ect investee’s returns, the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
(ii) Potential voting rights are considered when assessing control only when such rights are substantive.
(iii) The Group considers it has de facto power over an investee when, despite not
having the majority of voting rights, it has the current ability to direct the activities of the investee that signi�cantly a�ect the investee’s return.
The Group's subsidiary companies are listed in Note 3.
All the subsidiary companies are consolidated using the purchase method of accounting where the results of subsidiary companies acquired or disposed off during the financial year are included from the date on which control is transferred to the Group and are no longer consolidated from the date on which the control ceases. At the date of acquisition, the fair values of the subsidiary companies’ identi�able assets acquired and liabilities and contingent liabilities assumed are determined and these values are reflected in the consolidated financial statements. The cost of an acquisition is measured at fair value of assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Acquisition-related costs are expensed.
The total assets and liabilities of subsidiary companies are included in the consolidated statement of financial position and the interests of non-controlling shareholders in the net assets are stated separately. Losses within a subsidiary company are attributed to the non-controlling interest even if that results in a deficit balance. All significant inter-company transactions, balances and unrealised gains on transactions are eliminated on consolidation and unrealised losses on transactions are also eliminated after considering impairment indicators, only to the extent that cost can be recovered. Changes in the Group’s owne rship interests in subsidiary companies that do not result in the Group losing control over the subsidiary companies are accounted for as equity transactions. The carrying amounts of the Group’s interests a nd the non-controlling interest are adjusted to reflect the changes in their relative interests in the subsidiary companies. The resulting difference is recognised directly in equity and attributed to Owners of the Company.
Changes in the Group’s ownership interests in subsidiary companies that do not result in the Group losing control over the subsidiary companies are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interest are adjusted to reflect the changes in their relative interests in the subsidiary companies. The resulting difference is recognised directly in equity and attributed to Owners of the Company.
the fair values of the subsidiary companies’ identifiable assets acquired and liabilities and
direct the activities that significantly affect investee’s returns, the Group is
NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2017 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2.4 Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiary companies made up to the end of the financial year. Consistent accounting policies are applied to like transactions and events in similar circumstances. Subsidiary companies are those companies in which the Group has the following policies:
(i) Control exists when the Group has existing rights that give it the current ability to
direct the activities that signi�cantly a�ect investee’s returns, the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
(ii) Potential voting rights are considered when assessing control only when such rights are substantive.
(iii) The Group considers it has de facto power over an investee when, despite not
having the majority of voting rights, it has the current ability to direct the activities of the investee that signi�cantly a�ect the investee’s return.
The Group's subsidiary companies are listed in Note 3.
All the subsidiary companies are consolidated using the purchase method of accounting where the results of subsidiary companies acquired or disposed off during the financial year are included from the date on which control is transferred to the Group and are no longer consolidated from the date on which the control ceases. At the date of acquisition, the fair values of the subsidiary companies’ identi�able assets acquired and liabilities and contingent liabilities assumed are determined and these values are reflected in the consolidated financial statements. The cost of an acquisition is measured at fair value of assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Acquisition-related costs are expensed.
The total assets and liabilities of subsidiary companies are included in the consolidated statement of financial position and the interests of non-controlling shareholders in the net assets are stated separately. Losses within a subsidiary company are attributed to the non-controlling interest even if that results in a deficit balance. All significant inter-company transactions, balances and unrealised gains on transactions are eliminated on consolidation and unrealised losses on transactions are also eliminated after considering impairment indicators, only to the extent that cost can be recovered. Changes in the Group’s owne rship interests in subsidiary companies that do not result in the Group losing control over the subsidiary companies are accounted for as equity transactions. The carrying amounts of the Group’s interests a nd the non-controlling interest are adjusted to reflect the changes in their relative interests in the subsidiary companies. The resulting difference is recognised directly in equity and attributed to Owners of the Company.
NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2017 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2.4 Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiary companies made up to the end of the financial year. Consistent accounting policies are applied to like transactions and events in similar circumstances. Subsidiary companies are those companies in which the Group has the following policies:
(i) Control exists when the Group has existing rights that give it the current ability to
direct the activities that signi�cantly a�ect investee’s returns, the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
(ii) Potential voting rights are considered when assessing control only when such rights are substantive.
(iii) The Group considers it has de facto power over an investee when, despite not
having the majority of voting rights, it has the current ability to direct the activities of the investee that signi�cantly a�ect the investee’s return.
The Group's subsidiary companies are listed in Note 3.
All the subsidiary companies are consolidated using the purchase method of accounting where the results of subsidiary companies acquired or disposed off during the financial year are included from the date on which control is transferred to the Group and are no longer consolidated from the date on which the control ceases. At the date of acquisition, the fair values of the subsidiary companies’ identi�able assets acquired and liabilities and contingent liabilities assumed are determined and these values are reflected in the consolidated financial statements. The cost of an acquisition is measured at fair value of assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Acquisition-related costs are expensed.
The total assets and liabilities of subsidiary companies are included in the consolidated statement of financial position and the interests of non-controlling shareholders in the net assets are stated separately. Losses within a subsidiary company are attributed to the non-controlling interest even if that results in a deficit balance. All significant inter-company transactions, balances and unrealised gains on transactions are eliminated on consolidation and unrealised losses on transactions are also eliminated after considering impairment indicators, only to the extent that cost can be recovered. Changes in the Group’s owne rship interests in subsidiary companies that do not result in the Group losing control over the subsidiary companies are accounted for as equity transactions. The carrying amounts of the Group’s interests a nd the non-controlling interest are adjusted to reflect the changes in their relative interests in the subsidiary companies. The resulting difference is recognised directly in equity and attributed to Owners of the Company.
185DRB-HICOM BERHADANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2017 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2.4 Basis of consolidation (Continued)
When the Group loses control of a subsidiary company, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. The gain or loss on disposal of a subsidiary company is the difference between net disposal proceeds and the Group’s share of its net assets including the cumulative amount of any currency exchange differences that relate to the subsidiary company and is recognised in profit or loss. The subsidiary company’s cumulative gain or loss which has been recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss or where applicable, transferred directly to retained earnings. The fair value of any investment retained in the former subsidiary company at the date that control is lost is regarded as the cost on initial recognition of the investment.
2.5 Non-controlling interest
Non-controlling interest represents the portion of profit or loss and net assets in subsidiary companies not held by the Group and are presented separately in statements of comprehensive income of the Group and within equity in the consolidated statement of financial position separately from parent shareholders’ equity. Non-controlling interest is initially measured at the non-controlling interest’s share of fair values of the identifiable assets and liabilities of the acquiree at the date of acquisition. The Group applies a policy of treating acquisition/disposal of shares from/to non-controlling interest as transactions with owners. Gains and losses resulting from disposal of shares in subsidiary companies to non-controlling interest are recognised in equity. For purchases from non-controlling interest, the difference between any consideration paid and the relevant share of the carrying value of net assets of the subsidiary acquired is recognised as equity.
2.6 Joint ventures and associated companies A joint venture is an enterprise which is neither a subsidiary company nor an associated company of the Group but over which there is a contractually agreed sharing of control by the Group with one or more parties over the strategic operating, investing and financial policy decisions. The decisions require the unanimous consent of the parties sharing control. An associated company is a company in which the Group is in a position to exercise significant influence in its Management but which is not control and is neither a subsidiary company nor a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the associated company but not control over those policies. The considerations made in determining joint control or significant influence are similar to those necessary to determine control over subsidiary companies. The Group’s share of results of joint ventures and associated companies are included in the consolidated statement of comprehensive income using the equity method of accounting.
186 DRB-HICOM BERHADANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2017 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2.6 Joint ventures and associated companies (Continued)
On acquisition of an investment in joint venture and associated company, any excess of the cost of investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the joint venture and the associated company is recognised as goodwill and included in the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities of the joint venture and the associated company over the cost of investment is excluded from the carrying amount of the investment and is instead included as income in the determination of the Group’s share of the joint venture’s and the associated company’s profit or loss for the period in which the investment is acquired. In the consolidated statement of financial position, the Group’s interest in joint ventures and associated companies is stated at cost plus the Group’s share of post-acquisition retained profits and reserves less impairment. Any change in other comprehensive income (“OCI”) of those investees is presented as part of the Group’s OCI. In addition, when there has been a change recognised directly in the equity of the joint venture or associated company, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. The share of the results of the joint venture and the associated company will not be taken into the Group’s statement of comprehensive income when the carrying value of the investment in joint venture and associated company reaches zero unless the Group has incurred obligations or guaranteed obligations in respect of the joint venture and the associated company. Profits and losses resulting from transactions between the Group and its joint venture and associated company are recognised in the Group’s financial statements only to the extent of unrelated investors’ interests in the joint venture and associated company. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. The financial statements of the joint ventures and the associated companies used in the preparation of the consolidated financial statements are prepared for the same reporting date as the Group. When the reporting dates of the joint ventures and the associated companies are different from the Group, the joint venture and the associated company are required to prepare additional financial statements as of the same date as that of the Group for consolidation purpose. Where necessary, adjustments are made to the financial statements of joint ventures and associated companies to ensure consistency of accounting policies with those of the Group.
The Group’s joint ventures and associated companies are listed in Note 3.
2.7 Investments in subsidiary companies, joint ventures and associated companies Investments in subsidiary companies, joint ventures and associated companies are stated at cost. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments, the difference between the net disposal proceeds and its carrying amount is charged or credited to profit or loss.
187DRB-HICOM BERHADANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2017 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2.8 Financial assets Financial assets are recognised in the statements of financial position when, and only when, the Group and the Company become a party to the contractual provisions of the financial instruments. When financial assets are recognised initially, they are measured at fair value, plus in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs. The Group and the Company determine the classification of their financial assets at the initial recognition, and the categories include financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets.
(i) Financial assets at fair value through profit or loss
Financial assets are classified as financial assets at fair value through profit or loss if they are held for trading or are designated as such upon initial recognition. Financial assets held for trading are derivatives (including separated embedded derivatives unless they are designated as effective hedging instruments as defined by FRS 139) or financial assets acquired principally f