Crescendo : 3rd Quarter Report 2023

CRESCENDO CORPORATION BERHAD

199501030544 (359750-D)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	INDIVIDUAL QUARTER	CUMULATIVE QUARTER
	CURRENT	PRECEDING YEAR	CURRENT	PRECEDING YEAR
	YEAR	CORRESPONDING	YEAR	CORRESPONDING
	QUARTER	QUARTER	TO-DATE	PERIOD
	31.10.2022	31.10.2021	31.10.2022	31.10.2021
	RM'000	RM'000	RM'000	RM'000
Revenue	51,264	51,641	176,444	162,554
Cost of sales	(35,850)	(31,084)	(110,776)	(105,110)
Gross profit	15,414	20,557	65,668	57,444
Other income	3,421	1,400	10,743	7,343
Administration expenses	(8,443)	(8,642)	(25,124)	(24,562)
Finance costs	(2,940)	(4,803)	(8,997)	(11,227)
Profit before tax	7,452	8,512	42,290	28,998
Tax expenses	(2,448)	(3,759)	(12,577)	(10,499)
Profit for the period	5,004	4,753	29,713	18,499
Other comprehensive income,
net of tax
Net movement on cash flow hedges	106	(10,616)	372	(8,483)
Tax relating to cash flow hedges	(26)	2,548	(89)	2,036
Total other comprehensive income
for the period, net of tax	80	(8,068)	283	(6,447)
Total comprehensive income
for the period	5,084	(3,315)	29,996	12,052
Profit attributable to:
Owners of the Company	4,856	4,342	28,162	16,978
Non-controlling interests	148	411	1,551	1,521
	5,004	4,753	29,713	18,499
Total comprehensive income
attributable to:
Owners of the Company	4,936	(3,727)	28,445	10,525
Non-controlling interests	148	412	1,551	1,527
	5,084	(3,315)	29,996	12,052
Earnings per share attributable to
owners of the Company:
Basic (sen)	1.74	1.55	10.08	6.08

The Unaudited Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Annual Financial Statements for the financial year ended 31 January 2022 and the accompanying explanatory notes attached to the interim financial statements.

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CRESCENDO CORPORATION BERHAD

199501030544 (359750-D)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	AS AT	AS AT
	31.10.2022	31.1.2022
	RM'000	RM'000
ASSETS
Non-current assets
Property, plant and equipment	131,352	156,799
Right-of-use assets	4,160	4,398
Bearer plants	4,872	5,082
Investment properties	279,473	275,485
Inventories	634,237	606,386
Deferred tax assets	38,846	36,689
	1,092,940	1,084,839
Current assets
Inventories	126,295	141,895
Receivables	56,855	56,733
Contract assets	3,344	5,843
Prepaid operating expenditure	12,136	11,821
Tax recoverable	2,939	3,760
Short term funds	993	3,472
Cash and bank balances	106,145	107,555
	308,707	331,079
TOTAL ASSETS	1,401,647	1,415,918
EQUITY AND LIABILITIES
Equity attributable to owners of the Company
Share capital	299,572	299,572
Treasury shares	(3,115)	(3,115)
Other reserves	(15)	(298)
Retained earnings	636,261	622,070
	932,703	918,229
Non-controlling interests	52,691	52,598
Total equity	985,394	970,827
Non-current liabilities
Loans and borrowings	222,071	269,212
Deferred tax liabilities	31,682	32,267
Derivative financial liabilities	20	392
	253,773	301,871
Current liabilities
Trade and other payables	65,474	65,091
Contract liabilities	12,507	13,267
Loans and borrowings	69,861	62,516
Tax payable	6,255	2,346
Dividend payable	8,383	-
	162,480	143,220
Total liabilities	416,253	445,091
TOTAL EQUITY AND LIABILITIES	1,401,647	1,415,918
Net assets per share (RM)	3.34	3.29

The Unaudited Condensed Consolidated Statement of Financial Position should be read in conjunction with the Annual Financial Statements for the financial year ended 31 January 2022 and the accompanying explanatory notes attached to the interim financial statements.

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CRESCENDO CORPORATION BERHAD 199501030544 (359750-D)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
			Attributable to owners of the Company
			Non-distributable	Distributable
							Non-
	Total		Share	Other	Retained	Treasury	Controlling
	Equity	Total	Capital	Reserves	Earnings	Shares	Interests
	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000
9 months ended 31 October 2022
Balance as at 1 February 2022	970,827	918,229	299,572	(298)	622,070	(3,115)	52,598
Total comprehensive income	29,996	28,445	-	283	28,162	-	1,551
Transactions with owners
Dividend paid to non-controlling interests	(1,458)	-	-	-	-	-	(1,458)
Dividends	(13,971)	(13,971)	-	-	(13,971)	-	-
Total transactions with owners	(15,429)	(13,971)	-	-	(13,971)	-	(1,458)
Balance as at 31 October 2022	985,394	932,703	299,572	(15)	636,261	(3,115)	52,691
9 months ended 31 October 2021
Balance as at 1 February 2021	965,957	914,279	299,572	6,526	611,296	(3,115)	51,678
Total comprehensive income	12,052	10,525	-	(6,453)	16,978	-	1,527
Realisation of capital reserve	-	-	-	(426)	426	-	-
Transactions with owners
Dividend paid to non-controlling interests	(1,543)	-	-	-	-	-	(1,543)
Dividends	(11,176)	(11,176)	-	-	(11,176)	-	-
Total transactions with owners	(12,719)	(11,176)	-	-	(11,176)	-	(1,543)
Balance as at 31 October 2021	965,290	913,628	299,572	(353)	617,524	(3,115)	51,662

The Unaudited Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Annual Financial Statements for the financial year ended 31 January 2022 and the accompanying explanatory notes attached to the interim financial statements.

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CRESCENDO CORPORATION BERHAD 199501030544 (359750-D)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
	9 MONTHS ENDED
	31.10.2022	31.10.2021
	RM'000	RM'000
Cash flows from operating activities
Cash received from customers	185,823	162,536
Cash paid to suppliers and employees	(114,906)	(105,351)
Cash generated from operations	70,917	57,185
Deposit interest received	1,356	541
Interest paid	(9,396)	(12,135)
Tax paid	(10,678)	(5,286)
Net cash from operating activities	52,199	40,305
Cash flows from investing activities
Acquisition of bearer plants, right-of-use assets, investment
properties and property, plant and equipment	(9,347)	(2,921)
Capital realisation from other investment	-	1,794
Pledge of time deposits	(28)	(4)
Net withdrawal from short term funds	2,500	-
Proceeds from disposal of property, plant and equipment	79	453
Net cash used in investing activities	(6,796)	(678)
Cash flows from financing activities
Proceeds from loans and borrowings	-	200,000
Repayment of loans and borrowings	(41,841)	(168,847)
Dividend paid	(5,588)	(11,176)
Dividend paid to non-controlling interests	(1,458)	(1,543)
Net cash (used in)/from financing activities	(48,887)	18,434
Net (decrease)/increase in cash and cash equivalents	(3,484)	58,061
Cash and cash equivalents at the beginning of the financial period	102,014	44,396
Cash and cash equivalents at the end of the financial period	98,530	102,457
Cash and cash equivalents at the end of the financial period
Deposits with licensed banks and other financial institution	69,817	72,073
Cash and bank balances	36,328	31,009
Bank overdrafts	(4,990)	-
	101,155	103,082
Time deposits pledged	(2,625)	(625)
	98,530	102,457

The Unaudited Condensed Consolidated Cash Flow Statement should be read in conjunction with the Annual Financial Statements for the financial year ended 31 January 2022 and the accompanying explanatory notes attached to the interim financial statements.

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CRESCENDO CORPORATION BERHAD

199501030544 (359750-D)

PART A - EXPLANATORY NOTES

A1 Basis of preparation

The interim financial report is unaudited and has been prepared in accordance with Malaysian Financial Reporting Standard ("MFRS") 134: Interim Financial Reporting issued by the Malaysian Accounting Standards Board ("MASB") and paragraph 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Securities").

The interim financial statements should be read in conjunction with the audited financial statements for the financial year ended 31 January 2022. These explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to the understanding of the changes in the financial position and performance of the Group since the financial year ended 31 January 2022.

The accounting policies and methods of computation adopted by the Group in this interim financial statements are consistent with those of the annual financial statements for the year ended 31 January 2022 except for the adoption of the following new and amended MFRSs and Issues Committee ("IC") Interpretations relevant to the current operations of the Group:

Annual Improvements to MFRS Standards 2018-2020

Amendments to MFRS 3 Reference to the Conceptual Framework

Amendments to MFRS 116 Property, Plant and Equipment-Proceeds before Intended Use

Amendments to MFRS 137 Onerous Contracts-Cost of Fulfilling a Contract

The Group has not elected for early adoption of the following new and amended MFRSs relevant to the current operations of the Group, which were issued but not yet effective:

Effective for financial periods beginning on or after

Amendments to MFRS 101 Amendments to MFRS 101 Amendments to MFRS 108 Amendments to MFRS 112

Amendments to MFRS 16 Amendments to MFRS 101 Amendments to MFRS 10

and MFRS128

Classification of Liabilities as Current or Non-current	1 Jan 2023
Disclosure of Accounting Policies	1 Jan 2023
Definition of Accounting Estimates	1 Jan 2023
Deferred Tax related to Assets and Liabilities arising from a	1 Jan 2023
Single Transaction
Lease Liability in a Sale and Leaseback	1 Jan 2024
Non-current Liabilities with Covenants	1 Jan 2024
Sale or Contribution of Assets between an Investor	Deferred
and its Associate or Joint Venture

These new and amended MFRSs are not expected to have any significant impact on the financial statements of the Group upon their initial application.

A2 Audit qualification

The auditor's report of the preceding annual financial statements of the Group did not contain any qualification.

A3 Seasonal or cyclical factors

There were no significant seasonal factors affecting the operations of the Group. However, the economic cyclical factors will have an impact on property development and construction sector.

A4 Unusual items

There were no unusual items that have material effects on the assets, liabilities, equity, net income or cash flows for the current financial year-to-date.

A5 Material changes in estimates

There were no changes in estimates that have had a material effect in the current quarter results.

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