AUDITED FINANCIAL STATEMENTS 2022 149 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 36 ASSETS HELD FOR SALE The details of assets held for sale are as follows: Group 2022 RM’000 2021 RM’000 Assets Property, plant and equipment 20,359 16,559 Right-of-use assets 7,682 7,682 Assets held for sale 28,041 24,241 Property, plant and equipment (i) During the financial year, the Lahad Datu palm oil refinery in FGV Refinery Sdn. Bhd., a subsidiary of the Group, whose carrying value was previously RM5.26 million, has been revised to RM11.36 million due to a reversal of impairment of RM6.10 million. The revised carrying value is supported by an external valuation and discussions are in place with potential buyers to realise the plant disposal. (ii) During the financial year, the carrying value of a biodiesel plant in FGV Green Energy Sdn. Bhd., an indirect subsidiary of the Group which had been fully impaired previously, has been revised to RM9.0 million following an offer received to acquire the said plant. The plant purchase price has been fully settled and the sale has been completed in the first quarter of 2023. (iii) In the previous financial year, MSMH, a subsidiary of the Group had received an offer in respect of certain plant and machinery from a scrap metal purchaser. These plant and machinery were part of assets impaired in financial year ended 31 December 2019 following cessation of refinery operations in its previous subsidiary, MSM Perlis Sdn. Bhd.. Following this offer, the Group had reversed the impairment recognised of RM11,300,000 based on the recoverable amount of the assets which is equivalent to the offer price. As the assets were planned for disposal, the assets had been reclassified to assets held for sale from property, plant and equipment. The sale of assets was completed on 17 February 2022 with no gain or loss. (iv) In the previous financial year, an apartment with carrying value of RM1.07 million in FGV Refineries Sdn. Bhd., an indirect subsidiary of the Group was disposed off for a total consideration of RM2 million, resulting in a gain on disposal of RM0.93 million. Right-of-use assets (i) In the previous financial year, MSM Prai Berhad (“MSM Prai”), an indirect subsidiary of the Group had transferred two vacant land in Pulau Indah under the right-of-use assets to assets held for sale amounting to RM7.68 million as it met the criteria of MFRS 5 ‘Non-current Assets Held For Sale and Discontinued Operations’. On 29 June 2022, MSM Prai has accepted an offer for a consideration of RM16.11 million. The Sale and Purchase Agreement was signed on 29 July 2022. The recognition of the sale is conditional upon receipt of Selangor State approval.
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