KUB Malaysia Berhad Annual Report 2021

13. NON-CURRENT ASSETS HELD FOR SALE The movements of the non-current assets held for sale for the current period and previous year are as follows: Group Company 30.6.2021 31.12.2019 30.6.2021 31.12.2019 RM’000 RM’000 RM’000 RM’000 As at 1 January 1,840 106,805 1,840 8,593 Transfer from/(to) property, plant and equipment (Note 15) 17,004 (52,181) - 1,840 Transfer from biological assets (Note 22) 778 - - - Transfer from deferred income (Note 34) - (4,811) - - Disposals (19,622) (47,973) (1,840) (8,593) As at 30 June/31 December - 1,840 - 1,840 Non-current assets held for sale in current period (i) The disposal of an office floor located at Oasis Square, Ara Damansara was completed on 26 February 2020 with a net sale consideration of RM2,809,000. The gain on disposal of RM969,000 was recognised in profit or loss as disclosed in Note 9. (ii) On 10 June 2020, KUB Agro Holdings Sdn Bhd, a wholly-owned subsidiary of KUB Ekuiti Sdn Bhd, which in turn is a wholly-owned subsidiary of the Company, had entered into a conditional Sale and Purchase Agreement with Beradin Plantation Sdn Bhd for the disposal of two oil palm estates known as Kahang Estate and Sungai Yong Estate measuring in aggregate 2,656.16 hectares for a total net cash consideration of RM140,303,000, after real property gains tax and other transaction costs amounting to RM17,697,000. The carrying amount of the said two oil palm estates was RM17,782,000. The disposal was completed on 2 April 2021 with a net gain on disposal of RM122,521,000 as disclosed in Note 9. Non-current assets held for sale in prior year As at 31 December 2019, the non-current assets held for sale of the Group/Company is in respect of an office floor located at Oasis Square, Ara Damansara with carrying value of RM1,840,000. Apart from the above, following are the transactions during the the previous financial year: (i) Transfer of carrying value of oil palm plantation in Mukah, Sarawak RM52,618,000 to property, plant and equipment following the Group’s decision not to sell the assets. (ii) Changes in carrying amount of assets to be disposed from the property, plant and equipment including building, furniture fittings and motor vehicles amounting to RM1,403,000 in relation to the disposal of a palm oil mill in Mukah, Sarawak. (iii) Disposal of a mill, ancillary equipment and machineries for a palm oil mill in Mukah, Sarawak for a net sales consideration of RM42,887,000 which was completed on 22 November 2019. The carrying value of the assets as at the disposal date was RM39,380,000 after the effect of government grant in relation to the construction of the mill which was transferred to the assets held for sale prior to the disposal of RM4,811,000. As a result, the net gain on disposal from the sale was RM3,507,000 as disclosed in Note 9. (iv) On 8 November 2019, the Company had disposed of a piece of leasehold land of the Company measuring approximately 4,238 square metres held under H.S.(D) 316917, PT 9 Seksyen 26, Bandar Petaling Jaya, Daerah Petaling, Negeri Selangor for a net sales consideration of RM33,858,000. The carrying value of the assets prior to the disposal was RM8,593,000. This has resulted in a net gain on disposal after cost to sell of RM25,265,000 as disclosed in Note 9. 89 ANNUAL REPORT 2021 FINANCIAL STATEMENTS