23 INVESTMENT IN SUBSIDIARIES (CONTINUED) (b) Strike off and share subscription of subsidiaries during the financial year Note 1 On June 2024, the process to strike off the name of FGV Resources Sdn. Bhd. (“FGVR”), a wholly owned subsidiary of the Company, from the Register of the Companies Commission of Malaysia under Section 550 of the Companies Act 2016 (“the Act”) has been completed and FGVR was deemed duly dissolved under the Act. The dissolvement did not have material financial impact to the Group and the Company for the financial year ended 31 December 2024. Note 2 During the financial year, Felda Holdings Bhd. (“FHB”), a wholly owned subsidiary of the Company, has fully subscribed to the remaining 1,800,000 ordinary shares held by non-controlling interests, representing 10% of the total issued and paid-up capital in FGV Logistics Sdn. Bhd. (“FGVL”), for a cash consideration of RM1,400,000. (c) Disposal and share subscription of subsidiaries in the previous financial year (i) On 20 November 2023, FGV Kalimantan Sdn. Bhd., a wholly-owned subsidiary of the Company, disposed its 95% equity interest in PT. Citra Niaga Perkasa (“PTCNP”) and PT. Temila Agro Abadi (“PTTAA”), for a total consideration of RM103,929,000, resulting in a loss on disposal of RM2,234,000 to the Group. The effects of the disposal of PTCNP and PT TAA on the financial position of the Group as at the previous financial year end is as follows: Net assets disposed RM’000 Property, plant and equipment 84,083 Right-of-use assets 9,807 Intangible assets 5,387 Inventories 354 Receivables 3,222 Biological assets 799 Cash and cash equivalents 293 Payables (40) Non-controlling interests 2,258 Net assets disposed 106,163 Loss on disposal of subsidiaries (2,234) Proceeds from disposal 103,929 Less: Cash and cash equivalents (293) Net cash inflow from disposal of subsidiaries 103,636 On the disposal of PTCNP and PTTAA, the Group also recognised a loss of RM6.36 million arising from realisation of accumulated foreign exchange differences in foreign exchange reserve to profit or loss. This resulted in a cumulative loss on disposal of subsidiaries of RM8,594,000. (ii) In the previous financial year, FHB, a wholly owned subsidiary of the Company, had subscribed 3,600,000 ordinary shares in its 72% interest in FGV Palm Industries Sdn. Bhd. (“FGVPI”), for a total consideration of RM3,600,000 and 1,400,000 ordinary shares, which was equivalent to RM1,400,000, had been subscribed by FGVPI’s non-controlling interest. FGV Holdings Berhad | Audited Financial Statements 2024 Notes to the Financial Statements For the financial year ended 31 December 2024 124
RkJQdWJsaXNoZXIy NDgzMzc=