FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 283 35 ASSETS HELD FOR SALE AND LIABILITIES RELATED TO ASSETS HELD FOR SALE (CONT’D.) Assets held for sale in PUP On 2 December 2013, PUP received a deposit of RM24,780,000 as part of the purchase consideration for the sale of land in Kukup, Johor. On 10 February 2014, the Group entered into a binding agreement to sell the land for RM121.3 million. The disposal is subject to the fulfilment of the condition precedents stipulated in the agreement. Assets held for sale and liabilities related to assets held for sale in FHB (i) Cessation of Felda Farm Products Sdn. Bhd. On 4 April 2013, the Board of Directors of a subsidiary of the Group, Felda Farm Products Sdn. Bhd. (“FFP”), a subsidiary of FHB, approved a plan to gradually cease the operations of FFP by way of disposal of assets to a significant shareholder and Felda Global Ventures Plantations (Malaysia) Sdn. Bhd. (“FGVPM”), a wholly-owned subsidiary of the Company. Following the disposal of a portion assets in December 2013, FFP has ceased its operations. The remaining assets and liabilities of FFP amounting to RM26,339,000 and RM4,667,000 respectively were presented in the statement of financial position as “Assets held for sale” and “Liabilities related to assets held for sale”. (ii) Proposed disposal of Malaysia Cocoa Manufacturing Sdn. Bhd. The Group has approved a proposal to exit the cocoa business of Malaysia Cocoa Manufacturing Sdn. Bhd. (“MCM”), a subsidiary of FHB, with the disposal of 100% equity as the preferred option. Since the disposals were highly probable and the carrying value is to be recovered principally through a sale transaction, the assets and liabilities of MCM were presented in the statement of financial position as “Assets held for sale and “Liabilities related to assets held for sale”. The details as at 31 December 2013 consist of the following: 2013 RM’000 Assets Property, plant and equipment 11,703 Inventories 24,578 Receivable 16,677 Tax recoverable 47 Deposit, cash and bank balance 4,610 Assets held for sale 57,615 Liabilities Borrowings 89,888 Payables 4,912 Derivative financial liabilities 324 Retirement benefits 215 Liabilities related to assets held for sale 95,339