17 PROPERTY, PLANT AND EQUIPMENT (continued) (b) Impairment assessment (continued) Financial year ended 31 December 2021 (continued) (c) MSM Perlis Sdn Bhd (“MSM Perlis”) (continued) After considering the condition of the bearer plants as a result of the cessation of the plantation operations and a fire during the financial year ended 31 December 2020 which resulted in a write-off of RM27,244,000, an impairment assessment was performed on bearer plants. The assessment indicated the recoverable amount of the bearer plant assets as nil. Accordingly, an impairment of RM43,705,000 was recorded in the financial year ended 31 December 2020. During the current financial year, the Group carried out an assessment on the recoverable amount of certain plant and machinery assets previously impaired in financial year ended 31 December 2019. Following the assessment, the Group has reversed a total impairment of RM5,127,000 as a result of a change in the recoverable amount of these assets. During the financial year ended 31 December 2020, leasehold plantation land and leasehold factory land located at Chuping, Perlis were transferred to Assets Held for Sale following offer received from potential buyer. On 29 September 2021, MSM Malaysia Holdings Berhad (“the Company”) completed the disposal of the entire equity of MSM Perlis Sdn Bhd (“MSMP”), a wholly owned subsidiary of MSMH, for a total cash consideration of RM181,106,000. The assets and liabilities of MSMP were deconsolidated upon completion of the disposal. The effects of the disposal is reflected in Note 20 to the financial statements. Furniture fittings, equipment, and motor Company vehicles RM’000 2021 Cost At 1 January 2021 5,801 Addition 968 Disposal (534) At 31 December 2021 6,235 Accumulated depreciation At 1 January 2021 3,831 Charge for the financial year 650 Disposal (534) At 31 December 2021 3,947 Net book value At 31 December 2021 2,288 NOTESTOTHE FINANCIAL STATEMENTS FORTHE FINANCIALYEAR ENDED 31 DECEMBER 2021 WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 332
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