FGV Annual Report 2012

83 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 25 LOAN DUE FROM OTHER RELATED COMPANY (continued) The loan due from a related company, Felda Iffco Inc. (“FINA”), a subsidiary of a jointly controlled entity, FISB, is denominated in US Dollar, unsecured, charged at market interest rate of 8% (2011: 8%) per annum and repayable in five annual instalments of RM9,309,000 commencing on 30 December 2010. In 2012, FINA notified the Group of its current financial position and requested that for the terms of the promissory note to be modified by allowing FINA to defer the payment due on 30 December 2012 to 31 December 2013 and to extend the repayment terms of the original promissory note by an additional one year. On 14 January 2013, the Group agreed to these amendments. As at 31 December 2012, the loan due from a related company was impaired and fully provided for due to the financial difficulties faced by FINA and the low probability of generating sufficient cash flows to enable repayment in future years. 26 RECEIVABLES Group Company 2012 2011 2012 2011 RM’000 RM’000 RM’000 RM’000 Non-current assets Prepayment^ 8,198 – – – Current assets Trade receivables* 490,537 305,466 – – Less: Provision for impairment – (79) – – 490,537 305,387 – – Other receivables 84,479 67,897 1,903 636 Dividend receivable 88,091 6,172 297,313 6,172 Prepayments@ 77,403 16,237 1,733 53 Deposits# 2,255 7,888 98 98 742,765 403,581 301,047 6,959 Total 750,963 403,581 301,047 6,959 ^ On 9 May 2012, Kilang Gula Felda Perlis Sdn Bhd (“KGFP”), a subsidiary of the Company, entered into a Pre-Supply Agreement (“PSA”) with Gas Malaysia Berhad (“GMB”) for the purpose of obtaining gas supply in conjunction with its plan to convert its Biomass boiler to Natural Gas Boiler. The terms and conditions of the PSA state that GMB will carry out the construction of the gas distribution pipeline and metering facilities and KGFP is required to pay for construction costs amounting to RM8,198,000. The payment was made in August 2012 and is currently classified as advance payment in the statement of financial position. As of 31 December 2012, the construction is 40% complete and is expected to be ready for use in January 2014. @ Included in prepayments as at 31 December 2012 is an advance payment for LLA charges amounting to RM62,120,000 to a significant shareholder, in connection with the commencement of the LLA. # Included in deposits as at 31 December 2011 is a deposit for 35% of the purchase consideration amounting to RM5,775,000 paid by Felda Global Ventures Kalimantan Sdn Bhd (“FGVK”), a subsidiary of the Company, in connection with the acquisition of 95% equity interest in PT Citra Niaga Perkasa. * Included in trade receivables is sugar subsidy receivable from Government of Malaysia of RM26,147,000 (2011: RM21,107,000).