102 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 19 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Significant impairment of property, plant and equipment (continued) Financial year ended 31 December 2023 (continued) b) PT. Citra Niaga Perkasa and PT. Temila Agro Abadi (“PT CNP” and “PT TAA”) (continued) The financial impact of the disposal of PT CNP and PT TAA is reflected in Note 23 (a) to the financial statements. Based on the disposal price offered, the recoverable amount of the two subsidiaries were RM103,929,000, which resulted in the total impairment loss of RM9,327,000 for property, plant and equipment and RM38,646,000 for intangible assets. The impairment loss totalling RM47,973,000 was recognised as the Group’s impairment of non-financial assets and included as impairment loss within the Plantation Sector in the Group’s segment reporting (Note 18). c) FGV Palm Industries Sdn. Bhd. (“FGVPI”) A biomass power plant continued to be in a loss making position as a result of low utilisation factors during the financial year, which has been identified as indicator for impairment of the asset. Based on the impairment assessment, the recoverable amount of the biomass power plant was RM41,100,000, which resulted in the impairment loss of RM9,100,000 for property, plant and equipment. The recoverable amount was determined using value-in-use calculation based on cash flow projections covering a 15 year period. The key assumptions on the assessment were as follows: (i) Export utilisation factor 17% - 37% (ii) Electricity rate (RM/KwH) 0.80 (iii) Other income per annum (RM’000) 13,672 (iv) Total cost per annum (RM’000) 27,427 - 29,142 All impairment losses in FGVPI was recognised as the Group’s impairment of non-financial assets and included as impairment loss within the Plantation Sector in the Group’s segment reporting (Note 18). d) FGV Kernel Products Sdn. Bhd. (“FGVKP”) As at 31 December 2023, certain mills in FGVKP were in loss making position due to the downward trend of selling price for palm kernel expeller (“PKE”), crude palm kernel oil (“CPKO”) as well as low utilisation factor, and this has been identified as an indicator impairment for the assets. Based on the impairment assessment, one of the mill’s recoverable amount of RM719,000, resulted in the impairment loss of RM7,181,000 for property, plant and equipment. The impairment loss was recognised as the Group’s impairment of non-financial assets and included as impairment loss within the Plantation Sector in the Group’s segment reporting (Note 18).
RkJQdWJsaXNoZXIy NDgzMzc=