FGV Annual Report 2017

ANNUAL INTEGRATED REPORT 2017 FINANCIAL STATEMENTS 243 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 22 INTERESTS IN ASSOCIATES (CONTINUED) Set out below are details of the associates of the Group as at 31 December 2017. The associates as listed below have share capital consisting of ordinary and RCPS shares, which are held directly and indirectly by the Group, have financial years ending 31 December, unless otherwise stated, and are measured by way of equity accounting. Name of company Place of business/ country of incorporation Group’s effective interest Nature of business 2017 % 2016 % Indirect associates Associates of FHB Taiko Clay Chemicals Sdn. Bhd.* Malaysia 21.6 21.6 (i) Paragon Yield Sdn. Bhd. Malaysia 30.0 30.0 (ii) Nilai Education Sdn. Bhd. Malaysia 30.0 30.0 (iii) FKW Global Commodities (PVT) Limited Malaysia 30.0 30.0 (iv) Associate of PUP Malacca Plantation Sdn. Bhd. Malaysia 34.33 34.33 (v) (i) Manufacturing and sale of activated bleaching earth (ii) Investment holding (iii) Management of an educational institute (iv) Commodity trading (v) Investment holding and cultivation of oil palm * The Group’s effective interest is based on 30% holding in Taiko Clay Chemicals Sdn. Bhd. by Felda Palm Industries Sdn. Bhd., a 72% owned subsidiary of the Group. There are no material contingent liabilities relating to the Group’s interests in the associates. The associate companies above are private companies and have no quoted market price available for their shares. During the financial year, Paragon Yield Sdn. Bhd. redeemed its RCPS held by the Group for a total consideration of RM5,400,000, resulting in a gain on redemption of RM2,700,000. The redemption of RCPS did not affect the Group’s effective interest in the associate.