DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
|
Annual Report
2015
72
1.
Basis of preparation (cont’d)
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis, other than as disclosed in
Note 2.
The Group and the Company has prepared its financial statements on a going concern basis,
notwithstanding that the current liabilities exceeded its current assets by RM214 million and RM14
million respectively.
The Group is in the process of carrying out action plans in order to address the net current liabilities
position, amongst which include, to refinance the existing loans and borrowings.
The subsidiary of the Group has obtained an offer letter for Islamic bond or Sukuk programme to raise
up to RM650 million for refinancing purpose subsequent to the financial year ended as disclosed
in Note 40 (b) to the financial statements. The proceeds from the bond issuance will be used to
refinance part of its outstanding borrowings especially the short term borrowings.
At the time of this report, there is no reason for the Directors to believe that the preparation of financial
statements of the Group and the Company on a going basis is inappropriate. Accordingly, the
financial statements do not include any adjustments relating to the recoverability and classification
of recorded assets amounts or to the amounts and classification of liabilities that may be necessary
if the Group and the Company is unable to continue as a going concern.
(c) Functional and presentation currency
These financial statements are presented in Ringgit Malaysia (RM), which is the Company’s functional
currency.
(d) Use of estimates and judgements
The preparation of financial statements in conformity with MFRSs requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
affected.
There are no significant areas of estimation uncertainty and critical judgements in applying
accounting policies that have significant effect on the amounts recognised in the financial
statements other than business combination in Note 36.
2.
Significant accounting policies
The accounting policies set out below have been applied consistently to the periods presented in these
financial statements and have been applied consistently by Group entities, unless otherwise stated.
Notes to the
Financial Statements
(cont’d)
