Page 85 - HRC_AR2020

HENGYUAN REFINING COMPANY BERHAD I 83

notes to tHe financial stateMents

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

1 General inforMation

The principal activities of the Company consist of refining and manufacturing of petroleum products. There has been no
significant change in these activities during the financial year.

The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Market
of the Bursa Malaysia Securities Berhad (“Bursa Malaysia”).
The Company regards Malaysia Hengyuan International Limited (“MHIL”), a company incorporated in Labuan, Malaysia
and Shandong Hengyuan Petrochemical Group Company Limited, a company incorporated in China, as its immediate and
ultimate holding companies respectively.

The address of the registered office of the Company is:
Unit 30-01, Level 30
Tower A, Vertical Business Suite
Avenue 3, Bangsar South
No. 8, Jalan Kerinchi
59200 Kuala Lumpur
The address of the principal place of business of the Company is:
Batu 1, Jalan Pantai
71000 Port Dickson
Negeri Sembilan

2 sUMMarY of siGnificant accoUntinG policies

2.1 Basis of preparation
The financial statements of the Company have been prepared in accordance with the Malaysian Financial Reporting
Standards (“MFRS”), International Financial Reporting Standards and the requirements of the Companies Act 2016
in Malaysia.
The financial statements of the Company have been prepared under the historical cost convention, unless otherwise
indicated in the summary of significant accounting policies.
All values are rounded to the nearest thousand (“RM’000”) except when otherwise indicated.
The preparation of financial statements in conformity with MFRS requires the use of certain critical accounting estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the
reported period. It also requires Directors to exercise their judgement in the process of applying the Company’s
accounting policies. Although these estimates and judgement are based on the Directors’ best knowledge of current
events and actions, actual results may differ. As at 31 December 2020, the areas involving a higher degree of judgement
or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in
Note 3.