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Kumpulan Fima Berhad

(11817-V)

168

Notes to the

financial statements

31 march 2017

13. Property, plant and equipment (cont’d.)

(a)

Buildings, plant and machinery, storage tanks and pipelines of the subsidiaries carrying out bulking activities with a net

book value of approximately RM21,186,000 (2016: RM24,631,000) are situated on land which is leased from Lembaga

Pelabuhan Kelang (“LPK”) by the subsidiaries. The lease will expire in 2022.

(b)

A building of a subsidiary, Fima Palmbulk Services Sdn. Bhd., with a net book value of RM1 (2016: RM1) was constructed

on land leased from Penang Port Commission. The subsidiary has a renewal option to renew the lease for a term of five

years beginning from 1 July 2018 to 30 June 2023. It is expected that the subsidiary will continue to lease the land from

Penang Port Commision.

(c)

Included in the property, plant and equipment of the Group and of the Company are cost of fully depreciated assets

which are still in use amounting to approximately RM196,773,000 (2016: RM195,555,000) and RM2,641,000 (2016:

RM2,339,000) respectively.

(d)

The factory extension of the Group with a net book value of RM127,565 (2016: RM179,000) was constructed on a piece

of land leased from the lessor. The lease will expire on 30 April 2020.

(e)

If the total amounts of the freehold land, leasehold land and buildings had been determined in accordance with the

historical cost convention, they would have been included at:

Group

2017

2016

RM’000

RM’000

Cost

Freehold land

3,508

3,508

Leasehold land

62,817

62,817

Buildings

25,207

20,554

91,532

86,879

Accumulated depreciation

Leasehold land

(4,071)

(2,726)

Buildings

(7,474)

(4,437)

(11,545)

(7,163)

Net carrying amount

79,987

79,716