DESTINI Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS 6. Investment in Subsidiaries (Cont’d) (b) Acquisition of subsidiaries During the financial year On 19 April 2019, Destini Rail Sdn. Bhd., a wholly-owned subsidiary of the Company, incorporated a new wholly- owned subsidiary namely DLP Rail Sdn. Bhd. under the Companies Act, 2016 as a private company limited by shares with 100,000 ordinary shares for total consideration of RM100,000. The effect of incorporation of subsidiary company did not have any material effect on the financial results and position of the Group. In previous financial year On 5 June 2018, the Company incorporated a new wholly-owned subsidiary company at Malaysia with the name Destini Empire Properties Sdn. Bhd. (“DEPSB”) with the registered capital of RM1. Subsequent to the financial year (i) On 20 February 2020, Destini Armade Pte.Ltd., a wholley-owned subsidiary of the Company, incorporated a 99.99% owned subsidiary company, PT Destini Marina Perkasa, with cash subscription of Indonesian Rupiah 99,999,000 (approximately RM29,500). (ii) On 20 May 2020, Destini Berhad incorporated a 60% owned subsidiary company, Blackstone Dagangan Pte. Ltd., with cash subscription of Singapore Dollars 6 (approximately RM18). There are no significant restrictions on the ability of the subsidiaries to transfer funds to the Group in the form of cash dividends or repayment of loans and advances. Generally, for all subsidiaries which are not wholly-owned by the Company, non-controlling shareholders hold protective rights restricting the Company's ability to use the assets of the subsidiaries and settle the liabilities of the Group, unless approval is obtained from non-controlling shareholders. 7. Investment in Associates Group Company 2019 2018 2019 2018 Outside Malaysia RM RM RM RM At cost Unquoted shares 315,406 315,406 - - Less: Share of post acquisition reserve (315,406) (315,406) - - - - - - FINANCIAL STATEMENTS 06 ANNUAL REPORT 2019 147