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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 325

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

16 PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS
(i) In the previous financial year, after analysing the market outlook, competitive intensity and the attractiveness of the
industry, the Group had strategically decided to exit its non-core business, i.e. the rubber, oil palm and mango plantation.
The Group therefore presents and discloses in its financial statements the financial effects of the non-core business in
accordance to MFRS 5 ‘Non-Current Assets Held for Sale and Discontinued Operations’.
(ii) Analysis of the profit and loss of discontinued operations is as follows:
2021 2020
RM’000 RM’000
Revenue - -
Cost of sales - -
Gross profit - -
Other operating income 89,493 619
Administrative expenses (755) (555)
Other operating expenses - (75,155)
Profit/(Loss) before taxation 88,738 (75,091)
Taxation - deferred tax (Note 32) - -
Profit/(Loss) from discontinued operation 88,738 (75,091)
(iii) Analysis of the cash flows of discontinued operations is as follows:

2021 2020
RM’000 RM’000

Operating cash flows (1,893) (14,069)
Investing cash flows 1,815 619
Total cash outflow (78) (13,450)
(iv) Profit/(Loss) before taxation from discontinued operations is stated after charging/(crediting):

2021 2020
RM’000 RM’000
Reversal of impairment of asset held for sale - (1,762)
Impairment of property, plant and equipment - 43,705
(Reversal of impairment)/Impairment of receivables (16) 20
Depreciation of property, plant and equipment - 2,011
Depreciation of right-of-use assets - 2,674
Property, plant and equipment written-off - 27,244
Staff costs 183 307
Gain on disposal of a subsidiary (85,527) -
Inventories written off - 177
Gain on disposal of property, plant and equipment (1,572) (566)
During the financial year ended 31 December 2019, the recoverability of plantation assets which included leasehold land
and bearer plants was determined based on the offer price received from a potential buyer. Following the assessment,
an impairment of RM1,762,000 was made during financial year ended 31 December 2019 upon reclassification of the
asset to Assets Held for Sale from Right-of-Use Assets and Property, Plant and Equipment.