PRG Holdings Berhad Annual Report 2019

PRG HOLDINGS BERHAD 160 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 cont’d 26. DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE (a) On 26 July 2019, the Company with its subsidiaries, PRG Property Sdn. Bhd. and Premier De Muara Sdn. Bhd. (“PDMSB”) had entered into a conditional share sale agreement with Liveintent Sdn. Bhd. for the proposed disposal of 150,000 ordinary shares representing its entire 60% equity interest in PDMSB by PRG Property Sdn. Bhd. to Liveintent Sdn. Bhd.. Details of the proposed disposal are described in Note 38(v) to the financial statements. Accordingly, the assets and liabilities of PDMSB under property development and construction segment are classified as disposal group classified as held for sale and the financial results of PDMSB are classified as discontinued operations. (b) On 16 September 2019, an associate of the Group, Furnitech Components (Vietnam) Co., Ltd. (“FCV”) had entered into a binding term sheet with an independent third party for the acquisition of entire 100% equity interest in FCV from the current owners of FCV. Details of the proposed disposal are described in Note 38(vi) to the financial statements. Accordingly, the investment in FCV under manufacturing segment is classified as disposal group classified as held for sale. (c) On 4 October 2019, a subsidiary of the Company, Furniweb Holdings Limited (“FHL”) had entered into a binding term sheet with an independent third party potential purchaser for the sale of Premier Elastic Webbing & Accessories (Vietnam) Co., Ltd. (“PEWA”), a subsidiary of FHL. Details of the proposed disposal are described in Note 38(vii) to the financial statements. Accordingly, the assets and liabilities of PEWA under manufacturing segment are classified as disposal group classified as held for sale and the financial results of PEWA are classified as discontinued operations. (d) The assets and associated liabilities held for sale as at 31 December 2019 are as follows: PDMSB PEWA FCV Total Note RM’000 RM’000 RM’000 RM’000 Assets held for sale Property, plant and equipment 7 90 9,930 - 10,020 Intangible assets 9 2 5 - 7 Right-of-use assets 8 132 1,754 - 1,886 Investment in associates 11 - - 334 334 Deferred tax assets 14 2,818 - - 2,818 Inventories 168,132 4,578 - 172,710 Trade and other receivables 40,234 2,516 - 42,750 Contract assets 14,511 - - 14,511 Current tax assets 2,117 39 - 2,156 Cash and bank balances 1,122 1,640 - 2,762 229,158 20,462 334 249,954 Less: Impairment loss - (5,624) - (5,624) 229,158 14,838 334 244,330 PDMSB PEWA Total Note RM’000 RM’000 RM’000 Liabilities directly associated with assets held for sale Trade and other payables 99,576 2,069 101,645 Contract liabilities 61,170 37 61,207 Lease liabilities 25 124 2,082 2,206 Borrowings 7,730 3,878 11,608 168,600 8,066 176,666