FGV Annual Report 2012

19 F i n a n c i a l S t a t e m e n t s 2 0 1 2 P e n y a t a K e w a n g a n Group Company Note 2012 2011 2012 2011 (Restated) RM’000 RM’000 RM’000 RM’000 NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 4,219,523 1,045,409 4,026,127 (111,017) Effect of foreign exchange rate changes (4,004) (5,268) 2,633 – CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL YEAR 1,457,484 417,343 154,945 265,962 CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR 31 5,673,003 1,457,484 4,183,705 154,945 # Net capital contribution to a significant shareholder represents net cash flows arising from the operation of plantation estates for the comparative year, deemed to be a net capital contribution to FELDA following the application of predecessor method of accounting. Significant non-cash transactions: (a) Financial year ended 31 December 2012 Group and Company On 17 May 2012, the Company converted its 329,949,500 Redeemable and Non-voting Convertible Preference Shares (“RCPS”) and 570,590,000 Redeemable Cumulative and Non-voting Convertible Preference Shares (“RCCPS”) at a nominal value of RM0.01 and a premium of RM0.99 per shares into 900,539,500 ordinary shares of RM1.00 each, resulting in an increase the issued and paid up share capital of the Company by RM900,539,500 from RM1,767,612,000 to RM2,668,151,500. Company (i) On 31 December 2012, the Company subscribed for 1,142,038,242 RCPS of RM0.01 each from Felda Global Ventures Downstream Sdn Bhd (“FGVD”), a wholly owned subsidiary of the Company, by conversion of amount due from FGVD of RM1,142,038,242. (ii) On 31 December 2012, the Company subscribed for 196,493,801 RCPS of RM0.01 each from Felda Global Ventures Plantations Sdn Bhd (“FGVP”), a wholly owned subsidiary of the Company, by conversion of amount due from FGVP of RM196,493,801. (b) Financial year ended 31 December 2011 Group (i) On 20 May 2011, as part of the corporate reorganisation listing MSM Malaysia Holdings Berhad (“MSMH”), Felda Global Ventures Perlis Sdn Bhd (“FGVP”), a subsidiary of the Company, transferred its sugar cane cultivation operations in Chuping to Kilang Gula Felda Perlis Sdn Bhd (“KGFP”), a subsidiary, for a purchase consideration of RM106,209,770 and FGVP subsequently had nominated the Company to receive KGFPs’shares (refer Note 21 (d)(iii)(a)). The nomination of KGFPs’shares by FGVP to the Company was to partly settle an amount due from FGVP to the Company of RM47,521,993. (ii) On 20 May 2011, as part of the corporate reorganisation scheme to list MSMH, the Company disposed its entire equity interest in KGFP to MSMH for RM665,227,332 which was satisfied through the increase of 190.1 million new MSMH shares at issue price of RM3.50 per share. At the same date, an associate of the company, Felda Holdings Berhad, declared a dividend-in-specie by way of distributing its 36.2 million MSMH shares amounting to RM126.7 million, of which 17.7 million of MSMH shares amounting to RM62.1 million was received by the Company (refer Note 21 (d)(iii)(c)). (iii) On 30 December 2011, the Company fully redeemed 104,655,238 Redeemable Cumulative and Non-voting Convertible Preference Shares (“RCCPS”) E and RCCPS F of RM0.01 each following the disposal of 100% equity interest of Felda Global Ventures Middle East Sdn Bhd (“FGVME”) to its ultimate holding body, Lembaga Kemajuan Tanah Persekutuan (“FELDA”), by way of transferring 104,655,200 Redeemable and Non-voting Convertible Preference Shares (“RCPS”) B amounting to RM103,606,096 in FGVME held by the Company to FELDA to settle the total amount of prepaid Ijarah lease, borne by the Company to FELDA.