PRG Holdings Berhad Annual Report 2019

ANNUAL REPORT 2019 133 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 cont’d 11. INVESTMENTS IN ASSOCIATES (continued) Movements in the impairment allowance for investments in associates are as follows: Group 2019 2018 RM’000 RM’000 At 1 January 118 - Charge for the financial year 4,630 118 At 31 December 4,748 118 During the financial year, the impairment losses on investments in associates of RM4,630,000 have been recognised due to declining business operations. 12. INVESTMENTS IN JOINT VENTURES Group 2019 2018 RM’000 RM’000 Unquoted equity shares, at cost 570 756 Goodwill - 3,939 Share of post-acquisition reserves, net of dividends received 541 404 1,111 5,099 Less: Impairment loss - - 1,111 5,099 The details of the joint ventures are as follows: Interest in equity held by subsidiaries Name of company Country of incorporation 2019 2018 Principal activities % % Trunet (Vietnam) Co., Ltd. (“TNV”)* Vietnam 50 50 Manufacture and marketing of meat netting PRG Active Sdn. Bhd. (“PRGA”) # Malaysia - 55 Medical consultation * Audited by a member firm of BDO International. # The Group considers that it has obtained control of PRGA as at 31 December 2019 and accounts for it as investment in a subsidiary (Note 10). The joint ventures, in which the Group participates, are unlisted separate structured entities whose quoted market prices are not available. The contractual arrangement stipulates unanimous consent of all parties over relevant activities of joint ventures and provides the Group with only the rights to the net assets of the joint arrangements, with the rights to the assets and obligation for liabilities of the joint arrangements resting primarily with the joint ventures. These joint arrangements have been classified as joint ventures and have been included in the consolidated financial statements using the equity method.