160 / 220
1 5 6
NOTES TO THE FINANCIAL STATEMENTS
31 MARCH 2018
fInanCIal StatementS
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 RM17,940,000 (2017: RM21,186,000) 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 (2017: 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 RM212,478,299 (2017: RM196,773,000) and RM2,694,472 (2017:
RM2,641,000) respectively.
(d)
Freehold land and buildings have been revalued on 31 March 2015 based on valuations performed by accredited
independent valuers. The valuations have been performed by the valuer and are based on proprietary databases of
prices of transactions for properties of similar nature, location and condition.
(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
2018
2017
RM’000
RM’000
Cost
Freehold land
2,178
2,178
Leasehold land
103,663
74,551
Buildings
24,513
25,207
130,354
101,936
Accumulated depreciation
Leasehold land
9,524
5,165
Buildings
12,138
12,762
21,662
17,927
Net carrying amount
108,692
84,009