Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 21 ASSETS CLASSIFIED AS HELD FOR SALE (a) On 29 February 2024, the Company entered into a sale and purchase agreement for the disposal of leasehold buildings for a consideration of RM36,000,000. 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 buildings has been classified as assets held for sale and is presented as part of the Others segment in Note 43. (b) On 12 October 2023, the Company’s wholly-owned subsidiary, Wasco Agrotech Sdn. Bhd. (formerly known as PMT Industries Sdn. Bhd.) (“WAT”), entered into a sale and purchase agreement for the disposal of freehold land and buildings for a consideration of RM40,000,000. 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 buildings has been classified as assets held for sale and is presented as part of the Bioenergy Services segment in Note 43. Subsequently on 16 January 2024, WAT completed the disposal of the said freehold land and buildings by fulfilling condition precedent as stipulated in the sale and purchase agreement. (c) On 12 July 2023, the Company’s wholly-owned subsidiary, Maple Sunpark Sdn. Bhd. (“MSSB”) entered into a sale and purchase agreement for the disposal of leasehold land for a consideration of RM22,193,000. On 19 October 2023, MSSB 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 leasehold land was derecognised as assets held for sale, resulting in a gain on disposal of RM14,846,000 being recognised in the statement of profit or loss during the financial year. (d) On 28 April 2022, 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 RM26,528,000. On 15 February 2023, 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 leasehold land was derecognised as assets held for sale, resulting in a gain on disposal of RM8,249,000 being recognised in the statement of profit or loss during the financial year. (e) 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 in the previous financial year. (f) 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. Integrated Annual Report 2023 244
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