MSM Malaysia Holdings Berhad Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 16 LOSS FROM DISCONTINUING OPERATION (i) Pursuant to the Group's portfolio review during the financial year, after analysing the market outlook, competitive intensity and the attractiveness of the industry, the Board had strategically decided to exit its non core business, i.e. the rubber, oil palm and mango business. The Group therefore presents and discloses in its financial statements the financial effects of discontinuing operations in accordance to MFRS 5 'Non-Current Assets Held for Sale and Discontinued Operations'. (ii) Analysis of the profit and loss of discontinuing operation is as follows: 2019 2018 RM’000 RM’000 Revenue 884 1,089 Cost of sales (3,303) (1,581) Gross loss (2,419) (492) Other operating income 109 438 Administrative expenses (1,113) (1,292) Other operating expenses (15,701) (4,685) Loss before taxation (19,124) (6,031) Taxation – deferred tax (Note 32) 7,845 4,314 Loss from discontinuing operation (11,279) (1,717) (iii) Analysis of the cash flows of discontinuing operation is as follows: 2019 2018 RM’000 RM’000 Operating cash flows 13,920 (2,476) Investing cash flows (1,462) (5,658) Total cash inflow/(outflow) 12,458 (8,134) (iv) Loss before taxation from discontinuing operation is stated after charging/(crediting): 2019 2018 RM’000 RM’000 Impairment of assets held for sale 1,762 - Depreciation of property, plant and equipment 860 749 Depreciation of right-of-use assets 891 1,822 Gain on disposal of property, plant and equipment - (5) Repair and maintenance 294 552 Staff costs 3,261 3,106 Severance cost 6,500 - Legal fees 660 - Land assessment charges 4,140 - MSM Malaysia Holdings Berhad | Annual Report 2019 166