NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 21 CASH AND BANK BALANCES (CONTINUED) The Group’s and the Company’s cash and cash equivalents exposure to foreign currency (a currency which is other than the functional currency of the Group entities and the Company) risk were: Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 - United States Dollar 120,640 21,868 367 69 - Singapore Dollar 7,482 6,197 122 113 - Japanese Yen 5,148 1,844 - - - China Renminbi 1,666 1,488 - - - Euro Dollar 1,603 9,154 - - - British Pound 959 - - - - Qatari Rial 740 - - - - Indonesian Rupiah 331 1,867 - - 138,569 42,418 489 182 Cash and bank balances are deposits held at call with banks and earn no interest. 22 ASSETS CLASSIFIED AS HELD FOR SALE (a) On 28 April 2022, the Company’s wholly-owned subsidiary, Petro-Pipe Industries (M) Sdn. Bhd. entered into a sale and purchase agreement for the disposal of leasehold land for a consideration of RM26,528,000. The completion of the disposal is subject to fulfilment of the condition precedent as stipulated in the sale and purchase agreement. Pursuant to MFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’, the carrying amount of the leasehold land has been classified as assets held for sale and is presented as part of the Industrial Trading & Services segment in Note 43. (b) On 11 November 2021, the Company’s wholly-owned subsidiary, Petro-Pipe Industries (M) Sdn. Bhd. (“PPIM”) entered into a sale and purchase agreement for the disposal of leasehold land for a consideration of RM11,565,000. On 30 May 2022, PPIM completed the disposal of the said leasehold land by fulfilling condition precedent as stipulated in the sale and purchase agreement. Accordingly, the carrying amount of the said plant and machineries was derecognised as assets held for sale, resulting in a gain on disposal of RM5,150,000 being recognised in the statement of profit or loss. (c) On 23 November 2021, the Company’s indirect wholly-owned subsidiary, WS Engineering & Fabrication Pte Ltd (“WSEF”) offered an Option to Purchase for the disposal of buildings for a total consideration of SGD13,000,000 (equivalent to approximately RM40,102,000). On 2 September 2022, WSEF received from the purchaser a letter from National Environment Agency (“NEA”) of Singapore dated 19 August 2022. The purchaser was unable to procure and obtain written approval from the Jurong Town Corporation following the rejection by the NEA of Singapore on the intended use of the buildings by the purchaser. Accordingly, the carrying amount of the buildings was derecognised as assets held for sale and classified as property, plant and equipment. (d) On 23 December 2020, the Company’s wholly-owned subsidiary, Petro-Pipe Industries (M) Sdn. Bhd. (“PPIM”) entered into a sale and purchase agreement for the disposal of leasehold land for a consideration of RM27,791,000. On 30 September 2021, PPIM completed the disposal of the said leasehold land by fulfilling condition precedent as stipulated in the sale and purchase agreement. Accordingly, the carrying amount of the said plant and machineries was derecognised as assets held for sale, resulting in a gain on disposal of RM7,473,000 being recognised in the statement of profit or loss. Wah Seong Corporation Berhad Annual Report 2022 174
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