FGV Audited Financial Statements 2019

157 01 S E C T I O N NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 AUDITED FINANCIAL STATEMENTS 2019 26 INTERESTS IN JOINT VENTURES (CONTINUED) There are no material contingent liabilities relating to the Group’s interest in the joint ventures. (i) Refining, processing and packing of palm oil based products (ii) Oil palm plantation operation (iii) Processing and selling of oleochemical products (iv) Investment holding (v) Manufacturing and marketing of finished customer and industrial palm oil products (vi) Futures trading (vii) Developing, constructing, operating and maintaining a power plant (viii) Under liquidation (ix) Dormant (x) Technical advisory services in agriculture sector (xi) Cultivation of oil palms # The Group treated these entities as joint ventures as the shareholder agreements require unanimous consent over decisions about relevant activities among the partners. Note (a) On 5 September 2019, Felda Holdings Bhd. (“FHB”), a wholly-owned subsidiary of the Company, increased the shareholder’s contribution amounting to RM6.58 million in Mapak Edible Oils (Pvt) Ltd. (“MEO”), an indirect joint venture of the Company, for the purpose of funding the proposed expansion of oilseed crushing and solvent extraction plants. Note (b) On 21 November 2019, the Board of Directors of the Company announced that the members’ voluntary winding-up process (In Members’ Voluntarily Liquidation) for ProXcel Sdn. Bhd. (“ProXcel”), an indirect joint venture company of the Company had been completed and ProXcel was deemed fully dissolved on 21 November 2019 pursuant to Section 459 (5) of the Companies Act 2016. As a result, the Group derecognised its interest in ProXcel and the effect of the dissolvement was not material to the Group. Note (c) On 3 January 2019, in relation to the Termination of the Joint Venture Agreement between FGV Myanmar (L) Pte. Ltd., a wholly owned subsidiary of the Company and Pho La Min Trading Company Limited in 12 May 2017, the Board of Directors of the Company announced that FGV Pho La Min Co., Ltd. (“FGV PLM”), an indirect joint venture of the Company has been terminated. This was following the notification received from The Government of the Republic of the Union of Myanmar, Ministry of Investment and Foreign Economic Relations, Directorate of Investment and Company Administration. As a result, FGV PLM had ceased to be a joint venture company of the Group. The termination did not have material financial impact to the Group for the financial year ending 31 December 2019. The joint venture companies above are private companies and have no quoted market price available for their shares. There are no material contingent liabilities relating to the Group’s interest in the joint ventures.