Page 123 - S P Setia Annual Report 2013
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Annual Report 2013 S P SETIA BERHAD GROUP Financial Statements | 121





NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2013 (CONT’D)






3. inVeStment PROPeRtieS (cOnt’D)

Included in investment properties under construction of the Group is interest expense of RM Nil (2012 : RM3,193,000) incurred during the
fnancial year.
Title deeds to certain of the Group’s investment properties costing RM399,000 (2012 : RM399,000) have yet to be issued in or transferred to
the name of the Company and subsidiary companies concerned.

The Group’s investment properties at a net carrying amount of RM616,884,000 (2012 : RM341,333,000) have been charged to banks to
secure the long term borrowings referred to in note 25, 29 and 30 below.

The fair values of the investment properties at 31 October 2013 are arrived at by reference to market evidence of transaction prices for
similar properties and are performed by registered valuers having appropriate recognised professional qualifcation and recent experiences
in the locations and category of properties being valued.

The fair value of investment properties under construction amounting to RM118,508,000 (2012 : RM47,609,000) cannot be reliably and
seperately determined until the construction is completed or the fair value becomes reliably determinable, whichever is earlier.


4. lanD HelD FOR PROPeRtY DeVelOPment
Freehold leasehold Development
Group land land expenditure total
2013 Rm’000 Rm’000 Rm’000 Rm’000

cost
At 1 November 2012 2,915,883 732,704 865,450 4,514,037
Additions 951,143 148,660 483,457 1,583,260
Acquisition of additional equity interest in subsidiary companies 24,470 - 4,220 28,690
Transfer to property, plant and equipment (see note 2) - - (10,787) (10,787)
Transfer to investment properties (see note 3) (225,700) - (17,755) (243,455)
Transfer to property development costs (see note 15) (340,443) (505,684) (168,577) (1,014,704)
Reclassifed from other receivables, deposits and prepayments 45,753 - - 45,753
Exchange differences 12,165 2,974 539 15,678
At 31 October 2013 3,383,271 378,654 1,156,547 4,918,472

2012

cost
At 1 November 2011 1,226,129 9,850 595,315 1,831,294
Additions 2,103,903 635,571 430,398 3,169,872
Transfer from investment properties (see note 3) 1,266 - - 1,266
Transfer to property development costs (see note 15) (465,124) (80,747) (305,450) (851,321)
Reclassifed from other receivables, deposits and prepayments 102,911 114,815 146,287 364,013
Reclassifcation (48,624) 48,624 - -
Exchange differences (4,578) 4,591 (1,100) (1,087)
At 31 October 2012 2,915,883 732,704 865,450 4,514,037

Included in additions is borrowing costs of RM87,891,000 (2012 : RM55,043,000) incurred during the fnancial year.
Land held for property development included above at a carrying amount of RM2,368,326,000 (2012 : RM2,602,677,000) have been charged
to banks to partially secure the long term borrowings, revolving credits and bank overdrafts referred to in notes 25, 29 and 30 below.
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