Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 109 7. Investment in Subsidiary Companies (cont’d) (b) Changes in group structure (cont’d) (i) On 9 March 2016, DPB increased its issued and paid-up share capital from RM2 to RM100 by issuance of 98 new ordinary shares at par value of RM1.00 each. Subsequently, on 22 December 2017, the Company entered into a Shares Sale Agreement (“SSA”) with a third party to dispose the entire equity shares in DPO Plantation Sdn. Bhd. (“DPO”) for a total consideration of RM4 million. In addition, the purchaser principally agreed to repay the amount due to the Company as at the financial year end of RM915,906. In this regard, an impairment loss on the cost of investment of RM1 million is recognised in profit or loss in the current financial year. And, the Directors are of the view that there is no impairment necessary in the consolidated financial statements. As at 31 December 2017, the conditions precedent as set out in the SSA have yet to be fulfilled. Impact of disposal is disclosed in Note 14. (ii) On 5 January 2018, Transnet Express Sdn. Bhd. (In Member’s Voluntary Liquidation) (“Transnet”), a wholly-owned indirect subsidiary company of the Company convened a final meeting to conclude the winding up proceedings. The Transnet shall be deemed dissolved on the expiration of three (3) months after lodgement of statutory return with the Companies Commission of Malaysia. 8. Goodwill on Consolidation Group 2017 2016 RM RM Cost At 1 January/31 December 2,612,310 2,612,310 Accumulated impairment loss At 1 January/31 December (2,612,310) (2,612,310) Carrying amount At 31 December - - NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (cont’d)