FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 252 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 22 INVESTMENT IN SUBSIDIARIES (CONTINUED) (b) Liquidation and dissolvement of subsidiaries during the financial year Note 1 On 9 April 2018, the member’s voluntary winding up process for Felda Rubber Products Sdn. Bhd. ( “ FRP ” ), a dormant indirect subsidiary of the Company had been completed and was deemed fully dissolved pursuant to Section 459(5) of the Companies Act 2016. As a result, the Group derecognised its interest in FRP and recorded a gain on liquidation of RM988,000 during the financial year. Note 2 On 30 October 2018, the member’s voluntary winding up process for Sutrajaya Shipping Sdn. Bhd. ( “ SSSB ” ), a dormant indirect subsidiary of the Company had been completed and was deemed fully dissolved pursuant to Section 459(5) of the Companies Act 2016. The capital return was received in 2016 and the impact of the dissolvement had been recorded in the same year. Note 3 On 23 November 2018, the process to strike-off the name of FGV Green Rubber Sdn. Bhd. ( “ FGVGR ” ), a dormant indirect subsidiary of the Company, from the Register of the Companies Commission of Malaysia under Section 550 of the Companies Act 2016 ( “ the Act ” ) has completed and FGVGR has been duly dissolved under the Act. As a result, the Group derecognised its interest in FGVGR and the effect of the dissolvement was not material to the Group. Note 4 On 29 November 2018, the member’s voluntary winding up process for Felda Construction Sdn. Bhd. ( “ FCSB ” ) and Felda Farm Products Sdn. Bhd. ( “ FFPSB ” ), both dormant and indirect subsidiaries of the Company have been completed. Both FCSB and FFPSB are deemed fully dissolved pursuant to Section 459(5) of the Companies Act 2016. As a result, the Group derecognised its interest in FCSB and FFPSB and recorded a gain on liquidation of RM324,000 and RM600,000 respectively during the financial year. (c) Liquidation, incorporation and restructuring of subsidiaries in previous financial year Note 5 On 10 February 2017, the member’s voluntary winding up process for Felda Global Ventures Livestock Sdn. Bhd. ( “ FGVL ” ), a dormant subsidiary of the Company had been completed and was deemed fully dissolved pursuant to Section 459(5) of the Companies Act 2016. As a result, the Group derecognised its interest in FGVL and recorded a loss on liquidation of RM68,000 in previous financial year. Note 6 On 21 July 2017, the Company incorporated a wholly-owned subsidiary known as FGV Leads Sdn. Bhd., a company incorporated in Malaysia with a share capital of RM2.