FGV Annual Integrated Report 2019

37 ANNUAL INTEGRATED REPORT 2019 03 S E C T I O N Total Assets Total assets reduced by 7% from RM18,992 million to RM17,702 million, attributed to: • A decrease in property, plant and equipment mainly due to an impairment of RM160 million relating to the rationalisation plan of a sugar refinery and a biogas plant which was operating below its capacity. • A disposal of investments in an associate, Paragon Yield Sdn. Bhd., with a carrying value of RM30 million. • Impairment of amount due from/loan due from joint ventures of RM137 million and a repayment of a loan of RM22 million from another joint venture company. • The decrease was partially offset by the increase in deposits, cash and bank balances due to the reduction in inventory holding cost, proceeds from the disposal of FGV China Oils Ltd. and Paragon Yield Sdn. Bhd. of RM126 million and better tax recoverability. Total Liabilities Total liabilities reduced by 6% from RM12,388 million to RM11,601 million: • Mainly due to decrease in borrowings, reduction in loan due to a significant shareholder and lower payables. Total Equity Total Equity reduced by 8% from RM6,604 million to RM6,100 million: • Loss recorded during the year and dividends paid to non-controlling interests of subsidiaries led to lower total equity. MANAGEMENT DISCUSSION & ANALYSIS STATEMENTS AND ANALYSIS GROUP FINANCIAL POSITION Logistics Division The Logistics Division recorded a higher profit of RM87.49 million in 2019 compared to RM73.14 million in 2018 due to higher throughput and tonnage carried in the current financial year. Others Division The Others Division recorded losses of RM57.28 million in 2019 compared to a RM5.51 million loss in 2018 due to net impairment of receivables of RM8 million and property, plant and equipment of RM21 million. This was compounded by the provision for separation scheme valued at RM20 million following the proposed closure of two entities. The proposed closure is in line with the Group’s initiative to focus on its core business.