MISC Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 283 MISC BERHAD ANNUAL REPORT 2018 282 16. INVESTMENTS IN SUBSIDIARIES Corporation 2018 RM'000 2017 RM'000 At 1 January 15,858,081 18,915,174 Additional investments in subsidiaries (Note a) 789,148 568,376 Impairment of investment in unquoted subsidiaries (Note 5(a)) (41,789) (129,452) Currency translation differences 2,064,454 (3,496,017) At 31 December 18,669,894 15,858,081 Quoted shares 267,959 262,463 Unquoted shares 18,401,935 15,595,618 18,669,894 15,858,081 Included in unquoted shares are preference shares of RM12,587,056,000 (2017: RM11,952,712,000) which bear interest ranging from 3.00% to 6.00% (2017: 3.00% to 6.00%) per annum. (a) Additional investments in subsidiaries (i) During the current financial year: (a) The Corporation increased its investment in MISC Tanker Sdn Bhd ("MTSB"), a wholly owned subsidiary by RM789,148,000, in support of subsidiary's debt capitalisation exercise and as consideration for transfer ownership of Seri Cempaka, Seri Camar and Seri Cemara ships via issuance of ordinary shares and Cumulative Redeemable Preferences shares ("CRPS"). (b) The Corporation had incorporated a new subsidiary, namely Portovenere and Lerici (Labuan) Private Limited ("PLL") with an issued and paid up capital of USD10 divided into 10 ordinary shares. The incorporation of PLL is for the purpose of investment holding, owning, chartering and operating of ships. (ii) In the previous financial year: (a) The Corporation increased its investment in MTSB by RM566,346,000, in support of the subsidiary's debt capitalisation exercise and as a consideration for transfer of ships via issuance of ordinary shares and CRPS. (b) The Corporation had incorporated Eaglestar Marine Holdings (L) Pte. Ltd. (“EMH”) with a total paid up share capital of USD1,000,000 divided into 1,000,000 ordinary shares. The principal activities of EMH are the provision of marine services and investment holding. Subsequent to the incorporation of EMH, the Corporation disposed 50% of its shares in EMH to AET Inc. Limited, a wholly owned subsidiary of the Corporation. Details of the subsidiaries are disclosed in Note 40. 16. INVESTMENTS IN SUBSIDIARIES (CONT'D.) Non-controlling interests in subsidiaries The Group’s subsidiaries that have material non-controlling interests (“NCI”) are Malaysia Marine and Heavy Engineering Holdings Berhad ("MHB"), Asia LNG Transport Sdn. Bhd. ("ALT") and Asia LNG Transport Dua Sdn. Bhd. ("ALT 2") as shown below: MHB RM’000 ALT RM’000 ALT 2 RM’000 Others* RM’000 Total RM’000 2018 NCI percentage of ownership interest and voting interest 33.5% 49.0% 49.0% Carrying amount of NCI as at 31 December 777,519 136,466 38,605 60,392 1,012,982 (Loss)/profit allocated to NCI for the year ended 31 December (40,104) 7,022 (7,360) 13,280 (27,162) MHB RM’000 ALT RM’000 ALT 2 RM’000 Others* RM’000 Total RM’000 2017 NCI percentage of ownership interest and voting interest 33.5% 49.0% 49.0% Carrying amount of NCI as at 31 December 834,867 127,372 44,724 53,603 1,060,566 Profit/(loss) allocated to NCI for the year ended 31 December 4,915 (5,324) (5,342) 14,933 9,182 * Other individually immaterial subsidiaries