Basic HTML Version
NOTES TO
THE FINANCIAL
STATEMENTS
FOR THE YEAR
ENDED 30 JUNE 2014
5. CONCESSION ASSETS
Group
2014 2013
RM'000 RM'000
Expressway, at cost
At 1 July 1,485,696 -
Acquisition of subsidiaries - 1,485,696
Additions during the year 94,656 -
Borrowing costs capitalised during the year 7,631 -
At 30 June 1,587,983 1,485,696
Less: Accumulated amortisation
At 1 July 2,091 -
Charge for the year 6,282 2,091
At 30 June 8,373 2,091
Net carrying amount At 30 June 1,579,610 1,483,605
The concession assets are related to a concession agreement (“CA”) dated 12 August 2004 entered into between
Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (“Kesturi”) and the Government of Malaysia (“Government”) whereby
the Government granted Kesturi the right and authority to undertake the design, construction, operation, management
and maintenance of the Duta-Ulu Kelang Expressway (“DUKE Project”) commences from the Jalan Duta Interchange
to Hill View Interchange and the Karak Link from Sentul Pasar Interchange to Greenwood Interchange. The concession
period is for a period of 34 years which commenced from 11 August 2005.
On 3 December 2012, Kesturi entered into a Supplementary Concession Agreement (“SCA”) with the Government in
relation to the extension of the DUKE Project (“DUKE Phase-2”). The DUKE Phase 2 commences from Menjalara
Interchange at Bandar Menjalara to Segambut Interchange and Jalan Tun Razak near Kuala Lumpur Hospital/Institut
Jantung Negara to Jalan Gombak. The concession period under the SCA is for a period of 54 years commencing from
11 August 2005 and shall, subject to terms and conditions of the SCA, be extended for a further period of 10 years.
The CA and SCA may be terminated by either the Government or Kesturi if either party fails to remedy its default within
the period specified in the CA and SCA. The Government may terminate the CA and SCA by giving notice within the
specific period in the CA and SCA. Upon expiry of the concession period, Kesturi shall hand over the concession
assets to the Government in a well-maintained condition and make good any defects at Kesturi’s own expenses within
twelve months after the date of handing over.
The concession assets are charged as security for the borrowings as disclosed in note 19.
6. INVESTMENTS IN SUBSIDIARIES
Company
2014 2013
RM'000 RM'000
Unquoted shares, at cost 360,227 359,727
Less: Accumulated impairment losses (3,924) (3,924)
EKOVEST BERHAD
ANNUAL REPORT 2014
76