FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 253 22 INVESTMENT IN SUBSIDIARIES (Cont’d.) (b) Incorporation and acquisition of subsidiaries (Cont’d.) (ii) The effects of the acquisition of FHB is as follows: (Cont’d.) The effect of the acquisition of FHB on the financial results of the Group during the financial year had the acquisition taken effect at the beginning of the financial year is shown below: RM’000 Revenue 15,026,627 Cost of sales (14,021,853) Gross profit 1,004,774 Other operating income 74,064 Selling and distribution costs (164,183) Administrative expenses (513,381) Other operating expenses (78,097) Other losses-net (13,551) Finance income-net 11,992 Share of results of associates 19,226 Share of results of joint ventures 42,556 Profit before taxation 383,400 Zakat (9,642) Taxation (128,599) Profit for the financial year from continuing operations 245,159 Discontinued operations Loss for the financial year from discontinued operations (34,661) 210,498 (c) Acquisition of biodiesel refinery and glycerine purification plant Felda Global Ventures Downstream Sdn. Bhd. (“FGVD”), a wholly-owned subsidiary of the Company, acquired a biodiesel refinery and glycerine purification plant which resulted in a business combination. The acquisition was completed on 9 October 2013. The effects of the acquisition of the business is as follows: Fair value RM’000 Buildings 3,900 Plant and machinery 35,553 39,453 Purchase consideration, representing net cash outflow on acquisition 36,922 Fair value of assets acquired (39,453) Negative goodwill arising from the acquisition of a business (2,531)