FGV HOLDINGS BERHAD | AUDITED FINANCIAL STATEMENTS 2023 201 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 57 SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (CONTINUED) (ii) In relation to the first issuance of Sukuk Murabahah of RM500.0 million pursuant to the Sukuk Murabahah Programme on 31 December 2021, the Company, on 15 December 2023, announced that the Company has upsized the Sukuk Murabahah Programme from up to RM500.0 million to RM3.0 billion in nominal value (“Upsizing of the Sukuk Murabahah Programme”) and revised certain terms and conditions of the Sukuk Murabahah Programme. The Sukuk Murabahah to be issued under the Sukuk Murabahah Programme may be issued on a rated, unrated or a combination of rated and unrated as the Issuer may decide prior to each issuance. The Company has obtained confirmation of preliminary rating of AA-IS from MARC Ratings Berhad vide its letter dated 11 December 2023. The proceeds from the issuance of the Sukuk Murabahah shall be utilised to fund the Group of companies’ capital expenditure, working capital and other general corporate purposes and to refinance the existing Islamic financing or borrowing or future Islamic financing of the Group. For the avoidance of doubt, all utilisation of proceeds raised under the Sukuk Murabahah shall at all times be Shariah-compliant. 58 COMPARATIVES In the current financial year, the Group applied a voluntary change of accounting policy on its cash and cash equivalents, in relation to the classification of its demand deposit, arising from the issuance of Agenda Decision (“AD”) that was published on 22 April 2022, which clarified that the restrictions on the use of a demand deposit arising from a contract with a third party do not result in the deposit no longer being cash, unless those restrictions change the nature of the deposit in a way that it would no longer meet the definition of cash in MFRS 107. As a result of the change in accounting policy, deposit with restriction which was previously excluded as cash and cash equivalents is now recognised as cash and cash equivalents of the Group. The effect of the change in accounting policy on the financial statements is disclosed as follows: Statement of cash flows for the financial year ended 31 December 2022 Group As previously stated RM’000 Reclassification RM’000 As presented RM’000 Cash flows from financing activities Increase in restricted cash (3,348) 3,348 - Net cash used in financing activities (2,173,340) 3,348 (2,169,992) Net (decrease)/increase in cash and cash equivalents (670,685) 3,348 (667,337) Effects of foreign exchange rate changes 32,777 - 32,777 Cash and cash equivalent at the beginning of the financial year 1,967,191 64,475 2,031,666 Cash and cash equivalent at the end of the financial year 1,329,283 67,823 1,397,106 59 APPROVAL OF FINANCIAL STATEMENTS The financial statements have been approved for issue in accordance with a resolution of the Board of Directors on 27 March 2024.
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