Frontken Berhad Annual Report 2017

88 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 10. PROPERTY, PLANT AND EQUIPMENT (CONT’D) As of 31 December 2017, freehold land and buildings, long-term leasehold land and buildings and plant and machinery of the Group with a total net book value of RM76,966,680 (2016: RM72,364,307) have been charged as collateral to certain banks for term loans and bank borrowings granted to the Group as mentioned in Note 22 to the financial statements. Included in property, plant and equipment of the Group are plant and equipment acquired under hire purchase arrangements with net book value totalling RM321,132 (2016: RM652,076). 11. INVESTMENTS IN SUBSIDIARIES The Company 2017 2016 RM RM Unquoted shares, at cost:- At beginning of the year 121,499,940 88,663,164 Transferred from a subsidiary - 25,545,404 Addition during the year 13,273,927 7,399,142 Dissolution of a subsidiary - (107,770) 134,773,867 121,499,940 Accumulated impairment losses (987,241) (987,241) 133,786,626 120,512,699 The details of the subsidiaries are as follows: Name of Subsidiaries Principal Place of Business/ Country of Incorporation Percentage of Issued Share Capital Held by Parent Principal Activities 2017 2016 % % Subsidiaries of the Company Frontken Malaysia Sdn. Bhd. (“FMSB”) 2 Malaysia 100 100 Provision of surface metamorphosis technology using thermal spray coating processes and a series of complementary processes including mechanical and chemical engineering works. Frontken (Singapore) Pte. Ltd. (“FSPL”) 1 Singapore 100 100 Provision of surface metamorphosis technology using thermal spray coating processes and a series of complementary processes including mechanical and chemical engineering works. PT Frontken Indonesia 1 Indonesia 95 95 Provision of surface metamorphosis technology using thermal spray coating processes and a series of complementary processes including mechanical and chemical engineering works. TTES Frontken Integrated Services Sdn. Bhd. (“TTES”) 2,3 Malaysia 45 45 Engaged in the business of turbo machinery technical engineering services. Ares Green Technology Corporation (“AGTC”) 1 Taiwan 84.65 73.22 Provision of surface treatment and advanced precision cleaning for the TFT - LCD (Thin Film Transistor - Liquid Crystal display) and semi-conductor industries. Notes To The Financial Statements (cont’d)