PRG Holdings Berhad Annual Report 2018

10. INVESTMENTS IN ASSOCIATES Group 2018 2017 RM’000 RM’000 Unquoted equity shares, at cost 2,973 2,571 Goodwill 6,597 3,244 Share of post-acquisition reserves (1,569) (368) 8,001 5,447 Less: Impairment loss (118) - 7,883 5,447 The details of the associates are as follows: Interest in equity held Country of by subsidiaries Name of company incorporation 2018 2017 Principal activities % % Furnitech Components (Vietnam) Co., Ltd. Vietnam 45.06 45.06 Manufacture and sale of metal (“Furnitech”) * # components for furniture Premier Mirach Sdn. Bhd. ** Malaysia 25 25 Construction related activities Premier Aspirasi Development Sdn. Bhd. ** Malaysia 49 49 Property development and related activities Esther Postpartum Care Sdn. Bhd. (“EPC”)** Malaysia 26.21 - Confinement services * Audited by a member firm of BDO International. ** Associates are equity accounted based on management accounts for the financial period ended 31 December 2018. # On 14 September 2017, the charter capital of Furnitech was increased from USD2,600,000 to USD3,910,000. As a result, the Group’s effective interest in Furnitech was reduced to 45.06% and Furnitech became an associate since then. The summarised financial information of the associates are as follows: Other immaterial Furnitech EPC associates Total 2018 RM’000 RM’000 RM’000 RM’000 Assets and liabilities Non-current assets 5,588 1,840 1,847 9,275 Current assets 5,741 403 5,298 11,442 Current liabilities (9,264) (944) (5,334) (15,542) Net assets 2,065 1,299 1,811 5,175 Carrying amount of the investments in associates (including goodwill) 4,175 3,694 14 7,883 2018 A N N U A L R E P O R T 122 notes to the financial statements 31 December 2018 (continued)