NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 22 ASSETS CLASSIFIED AS HELD FOR SALE (CONTINUED) (e) On 26 February 2021, the Company’s 70% owned subsidiary, Petro-Pipe (Sabah) Sdn. Bhd. (“PPS”) entered into a sale and purchase agreement for the disposal of leasehold land for a consideration of RM21,562,000. On 15 May 2021, PPS 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 RM10,609,000 being recognised in the statement of profit or loss. Details of the assets classified as held for sale are as follows: Group 2022 2021 RM’000 RM’000 Property, plant and equipment 3,531 39,501 Right-of-use assets 12,640 5,408 16,171 44,909 23 ASSETS AND LIABILITIES OF DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE On 10 October 2022, the Company’s indirect wholly-owned subsidiary, Wasco China International Limited (“WCIL”) entered into a sale and purchase agreement for the disposal of the Company’s indirect 65% owned subsidiaries, Ashburn International Trade (Tianjin) Co. Ltd. and Ashburn Offshore Oil & Gas Equipment & Engineering (Tianjin) Co. Ltd. for a consideration of RMB8,500,000 (equivalent to approximately RM5,440,000). 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 assets and liabilities of the subsidiaries has been classified as assets and liabilities of disposal group held for sale and assets of disposal group classified as held for sale is presented as part of the Energy Solutions Services segment in Note 43. Details of the disposal group classified as held for sale are as follows: 2022 Group RM’000 Property, plant and equipment 139 Inventories 1,473 Trade and other receivables 11,140 Tax recoverable 66 Cash and bank balances 11,841 Total assets of disposal group classified as held for sale 24,659 Trade and other payables (14,589) Current tax liabilities (2) Dividend payable (4,368) Total liabilities of disposal group classified as held for sale (18,959) Annual Report 2022 Wah Seong Corporation Berhad 175
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