120
ANNUAL REPORT 2016
NOTES TOTHE FINANCIAL STATEMENTS
30 JUNE 2016
(Continued)
8.
INVESTMENT PROPERTIES (continued)
(a)
As at the end of reporting period, carrying amount of RM25,168,000 (2015: RM24,965,000) included in investment properties have
been pledged as securities for banking facilities granted to the Group as disclosed in Note 22 to the financial statements.
(b)
As at the end of reporting period, rental income of the Group derived from the investment properties amounted to RM924,000 (2015:
RM1,106,000).
(c)
During the financial year, the Group made the following cash payments to purchase investment properties:
Group
2016
RM’000
2015
RM’000
Purchase of investment properties
98
5,305
Financed by term loans
-
(4,222)
Cash payments on purchase of investment properties
98
1,083
(d)
Direct operating expenses arising from investment properties generating rental income during the financial year are as follows:
Group
2016
RM’000
2015
RM’000
Repairs and maintenance
12
13
Quit rent and assessment
44
42
(e)
The fair value of investment properties of the Group are categorised as follows:
Level 1
RM’000
Level 2
RM’000
Level 3
RM’000
Total
RM’000
2016
Freehold land, shoplots and clubhouse
-
-
27,498
27,498
Long term leasehold land and shoplots
-
-
5,303
5,303
-
-
32,801
32,801
2015
Freehold land, shoplots and clubhouse
-
-
31,626
31,626
Long term leasehold land and shoplots
-
-
6,418
6,418
-
-
38,044
38,044
(i)
There were no transfers between Level 1 and Level 2 fair value measurements during the financial years ended 30 June 2016
and 30 June 2015.
(ii)
As at 30 June 2016, the valuation of investment properties at Level 3 fair value amounting to RM32,801,000 were recommended
by the Directors based on an indicative market value from the valuation exercise carried out on an open market value basis by
an external and independent property valuer, First PacificValuers Property Consultants Sdn. Bhd., having appropriate recognised
professional qualifications and recent experience in the location and category of property being valued, and who is a member
of The Institution of Surveyors Malaysia.
The valuations were made based on comparison method that makes reference to recent sales transactions of similar properties
in the same locality on a price per square feet basis. Adjustments are then made for differences in location, size, facilities
available, market conditions and other factors in order to arrive at a common basis.
