FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 270 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013 27 RECEIVABLES Group Company 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000 Non-current assets Prepayment ^@ 69,544 8,198 - - Deposits τ 12,719 - - - Others 2,178 - - - 84,441 8,198 - - Current assets Trade receivables * 1,011,606 490,537 - - Less: Provision for impairment (5,529) - - - 1,006,077 490,537 - - Amount due from customer on contracts 5,638 - - - Total trade receivables 1,011,715 490,537 - - Other receivables ∞ 213,366 84,479 4,141 1,903 Dividend receivable - 88,091 170,201 297,313 Prepayments @ 86,392 77,403 442 1,733 Deposits τ 40,039 2,255 190 98 1,351,512 742,765 174,974 301,047 Total 1,435,953 750,963 174,974 301,047 ^ On 9 May 2012, Kilang Gula Felda Perlis Sdn. Bhd. (“KGFP”), a subsidiary of the Group, 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 at 31 December 2013, the construction is 70% complete and is expected to be ready for use in March 2014. In December 2013, KGFP signed the Standard Gas Supply Agreement (“GSA”). Based on the terms of the agreement, the GSA will be effective from March 2014 until December 2022. τ Included in the deposits as at 31 December 2013 are deposits paid by Felda Global Ventures Kalimantan Sdn. Bhd. (“FGVK”), a wholly- owned subsidiary of the Company, in connection with the proposed acquisition of a 95% equity interest in PT. Temila Agro Abadi and PT. Landak Bhakti Palma of 35% and 20% respectively amounting to RM12.72 million which are expected to be completed in 2014. @ Included in prepayments as at 31 December 2013 and 31 December 2012 is a security deposit amounted to RM62,120,000 (2012: RM62,120,000) paid to a significant shareholder under the LLA dated 1 November 2011, which shall be set off towards any payment of the lease amount prior to expiry or sooner determination of the LLA. * Included in trade receivables is sugar subsidy receivable from Government of Malaysia of RM14,890,775 (2012: RM26,147,000) and cooking oil subsidy receivable from Malaysian Palm Oil Board of RM39,051,610 (2012: RM nil). ∞ Included in the other receivables as at 31 December 2013 is a receivable from the Perlis State Government amounting to RM43.04 million in respect of compulsory acquisition of Lot 194 Mukim Chuping, Perlis from Felda Global Ventures Perlis Sdn. Bhd., a wholly-owned subsidiary of the Company as described in Note 20 and compensation receivable arising from land reclaimed by felda amounting to RM82.94 million (2012: RM nil) (Note 45).