DESTINI AR 2017

7. Investment in Joint Venture (Cont’d) Details of the joint venture are as follows: Effective Country of equity interest Name of company incorporation 2017 2016 Principal activities % % Destini Avia Technique Malaysia 50 50 Specialise in maintenance, repair and overhaul Sdn. Bhd. ("DATSB") for aircraft components and equipment catered to commercial aviation sector Invation Aero Sdn Bhd. ("IASB") Malaysia 50 - Sale of rotary wing and fixed wing aircraft, supply (formerly known as Urban and provision of maintenance, repair and Fleet Sdn. Bhd.)* overhaul services and other related services * Joint venture not audited by UHY On 20 June 2017, Destini Aviation Sdn. Bhd. (“DASB”), a wholly-owned subsidiary of the Company, has entered into a Joint Venture and Shareholders Agreement with a joint venture partner to form a jointly controlled entity, Invation Aero Sdn. Bhd. (“IASB”) (formerly known as Urban Fleet Sdn. Bhd.) at equal basis of equity interest in IASB held by both parties. DASB subscribed 1 ordinary share, representing 50% equity interest in IASB for cash consideration of RM1. There are no commitment nor contingent liabilities relating to the Group’s interest in the joint ventures. Summarised financial information of the Group’s joint venture is set out below. The summarised financial information represents the amounts in the MFRS financial statements of joint venture and not the Group’s share of those amounts. DATSB IASB 2017 2016 2017 2016 RM RM RM RM Summarised statements of financial position Non-current assets 1,136,315 926,107 6,777 - Current assets 2,069,325 293,580 1,002 - Current liabilities (5,154,790) (1,939,023) (174,635) - Net liabilities (1,949,150) (719,336) (166,856) - Interest in joint venture 50% 50% 50% - Group's share of net liabilities (974,575) (359,668) (83,428) - Carrying value of the Group's interest in joint venture (974,575) (359,668) (83,428) - 133 DESTINI BERHAD Annual Report 2017