28. NET ASSETS CLASSIFIED AS HELD FOR SALE During the financial year, the Board of Directors approved the plan to dispose Faber Union Sdn. Bhd. (“FUSB”), an indirect wholly-owned subsidiary of the Company via Faber Development Holdings Sdn. Bhd. (“FDH”). The sale of FUSB is expected to be completed within 12 months from the reporting date and accordingly, FUSB was classified as a disposal group held for sale as at 31 December 2022. Summarised statement of financial position The major classes of assets and liabilities of FUSB classified as held for sale as at 31 December 2022 are as follows: 2022 RM’000 Assets Plant and equipment 8 Trade and other receivables 1,823 Inventories 49,493 Tax recoverable 2,884 Cash and short-term deposit 35,840 Assets held for sale 90,048 Liabilities Accruals, representing liability directly associated with assets held for sale (3,171) Net assets of disposal group 86,877 The assets are measured at the lower of their carrying amount and fair value less costs to sell. FUSB has not been disclosed as discontinued operation as the Group considers its operation to be immaterial. 29. SHARE CAPITAL Number of ordinary shares Amount 2022 ’000 2021 ’000 2022 RM’000 2021 RM’000 Issued and fully paid up At 1 January/31 December 831,624 831,624 268,074 268,074 The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company’s residual assets. 30. CAPITAL AND OTHER MERGER RESERVE The acquisitions of Opus Group Berhad and Edgenta PROPEL Berhad in prior years, which was accounted for using the pooling of interest method, gave rise to the following: (a) Capital reserve This reserve represents the excess of issue price of the Company’s shares over the par value in accordance with Section 60(4)(a) of the Companies Act, 1965. This reserve had been partially set off against the merger deficit reserve in prior years for the purpose of presentation in the financial statements of the Group. (b) Other merger reserve This reserve represents the excess of fair value of the Company’s shares at the acquisition date over the issue price. This reserve had been fully set off against the merger deficit reserve for the purpose of presentation in the financial statements of the Group. 31. OTHER RESERVES Group Statutory reserve RM’000 (Note a) Foreign currency translation reserve RM’000 (Note b) Other reserve RM’000 (Note c) Total RM’000 At 1 January 2021 279 (25,782) 9,163 (16,340) Foreign currency translation – 12,824 – 12,824 Exchange differences reclassified to profit or loss – 3,679 – 3,679 Liquidation of a subsidiary (279) – – (279) At 31 December 2021 – (9,279) 9,163 (116) Foreign currency translation – 23,182 – 23,182 At 31 December 2022 – 13,903 9,163 23,066 (a) Statutory reserve In accordance with the United Arab Emirates (“UAE”) Commercial Companies Law, 10% of profit for each year from a Limited Liability Company incorporated in the UAE is transferred to a legal reserve until such time as the reserve equalled 50% of the paid-up capital. FLLC has resolved to discontinue such annual transfers since the reserve has equalled to 50% of its share capital. This reserve is not available for distribution except as stipulated by UAE law. FLLC has been dissolved in prior year. (b) Foreign currency translation reserve The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. It is also used to record the exchange differences arising from monetary items which form part of the Group’s net investment in foreign operations, where the monetary item is denominated in either the functional currency of the reporting entity or the foreign operation. (c) Other reserve Other reserve arose from the redemption of redeemable preference shares in prior years by a subsidiary. p.340 p.341 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 FINANCIAL STATEMENTS Notes to the financial statements For the year ended 31 December 2022 Notes to the financial statements For the year ended 31 December 2022
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