SCC Holdings Berhad Annual Report 2017

56 SCC Holdings Berhad (511477-A) | Annual Report 2017 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (CONT’D) 5. Investments in Subsidiary Companies (Cont’d) Details of the subsidiary companies are as follows: Country of Effective Name of company incorporation interest Principal activities 2017 2016 % % Direct holding: SCC Corporation Sdn. Bhd. (“SCCC”) Malaysia 100 100 Selling, marketing and distribution of livestock health products and clean feed solutions to feed mills and livestock industries; and selling, marketing and distribution of food service equipment, including provisions of installments, services and supply of ingredients and specialists products for food and beverage industries. Anitox (M) Sdn. Bhd. (“ASB”) Malaysia 100 100 Sale, marketing and distribution of animal health products. SCC Food Manufacturing Sdn. Bhd. (“SCCFM”) Malaysia 100 100 Processing and purchasing products. Held through SCCC Positive Insight Sdn. Bhd. (“PI”) Malaysia 100 100 Sale, marketing and distribution of animal health products. Knowledge Mission Sdn. Bhd. (“KM”) Malaysia 100 100 Dormant. 6. Goodwill on Consolidation Group 2017 2016 RM’000 RM’000 At 1 January/31 December 8 8 The goodwill was derived from the acquisition of a wholly-owned subsidiary company, SCC Food Manufacturing Sdn. Bhd. in the previous financial years. Management determined the recoverable amount of the goodwill on consolidation of each subsidiary company based on the individual assets’ value in use and the probability of the realisation of the assets. The present value of the future cash flows to be generated by the asset is the asset’s value in use, and it is assumed to be the same as the net worth of the asset as at reporting date. An impairment loss is recognised immediately in the profit or loss if the recoverable amount is less than the carrying amount.