GHL System Berhad Annual Report 2017

GHL SYSTEMS BERHAD 98 NOTES TO THE FINANCIAL STATEMENTS 31 December 2017 CONT’D 15. INVESTMENTS IN JOINT VENTURES (cont’d) (a) The details of the joint ventures are as follows: Name of company Country of incorporation Effective interest in equity Principal activities 2017 2016 % % MRuncit Commerce Sdn. Bhd. # Malaysia 49 49 Engaged in the business of developing and selling software and e-commerce. e-pay Pakistan (Private) Limited ^ Pakistan 50 50 Dormant. Electronic Payment Network (Thailand) Co. Limited ^ Thailand 16 16 Dormant. # Joint venture audited by BDO in Malaysia. ^ The unaudited financial statements were used in the consolidation of the results of the joint ventures. All the above joint ventures are accounted for using the equity method in the consolidated financial statements. (b) During the financial year, the Group acquired an additional of 49,000 (2016: 147,000) ordinary shares in MRuncit Commerce Sdn. Bhd. for total cash consideration of RM49,000 (2016: RM147,000). However, there was no change in the Group’s equity interest in MRuncit Commerce Sdn. Bhd.. (c) The Group does not have any joint venture, which is individually material to the Group for both financial years ended 31 December 2016 and 31 December 2017. 16. AVAILABLE-FOR-SALE INVESTMENTS Group 2017 2016 RM RM Available-for-sale financial assets 8,000,000 8,000,000 The fair value of the available-for-sale investments are determined by reference to the exchange quoted market bid price at the close of the business at the end of the reporting period. The fair values of available-for-sale investments are categorised into Level 2 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 fair value measurement during the financial year. Available-for-sale investments of the Group of RM8,000,000 are pledged to licensed banks as security for banking facilities to the Group as disclosed in Note 23 to the financial statements.