Announcement Details :
ECONOMIC PROFIT AND LOSS STATEMENT FOR THE 4TH QUARTER 2008
Economic profit or loss is an amount earned for a period by a business after deducting the operating expenses and a charge of opportunity cost of capital employed. The economic profit and loss statement set out in Table 1 is disclosed on a voluntary basis.
The assumptions used in computing the economic profit/loss are set out below:
(i) The cost of equity is calculated based on the following formula:
Cost of equity = (Beta x Market Risk Premium) + Risk Free Rate
(ii) The Beta used in the calculation is the 5 years adjusted Bloomberg Rate:
Quarterly Period Beta
4th Quarter 2008=1.373
3rd Quarter 2008=1.248
(iii)The risk free rate is the rate of return of a 10-year Malaysian Government Securities at the closing of the reporting period:
Risk Free Rate
At 31 December 2008 3.170%
At 30 September 2008 4.550%
(iv) The market risk premium is assumed at 5.2%, which represents the market return in excess of the return earned on risk free asset.
TABLE 1 |
31 Dec 2008
(Unaudited)
RM'000
|
Group profit after taxation |
32,575
|
Adjustments |
 |
- Deferred tax assets |
17,000
|
- Deferred tax liabilities |
(1,539)
|
Adjusted Group profit after taxation |
48,036
|
Less: Cost of capital employed |
(48,076)
|
Economic loss |
(40)
|
|
|