My EG Services Berhad Annual Report 2019

MY E.G. SERVICES BERHAD [Registration No. 200001003034 (505639-K)] 140 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019 (CONT’D) 8. INVESTMENTS IN JOINT VENTURES The Group The Company 31.12.2019 30.9.2018 31.12.2019 30.9.2018 RM’000 RM’000 RM’000 RM’000 Unquoted shares, at cost 6,874 2,726 6,359 2,726 Share of post acquisition losses (2,118) (720) - - 4,756 2,006 6,359 2,726 The details of the joint ventures are as follows:- Name of Joint Venture Principal Place of Business Effective Equity Interest Principal Activities 2019 2018 Joint Venture of the Company I-Pay MYEG Philippines Inc. (“MYEG Philippines”) Philippines 40% 40% Development and implementation of Electronic Government Services projects and provision of other related services including payment services in the Republic of the Philippines. Joint Venture of MYEGBD MYEG (BD) Ltd. Bangladesh 40% - Investment holding. (a) The Group’s involvement in joint arrangements are structured through separate vehicles which provide the Group rights to the net assets of the entities. Accordingly, the Group has classified these investments as joint ventures. (b) In the previous financial period, the Company entered into a joint venture agreement with I-Pay Commerce Ventures Inc. to incorporate MYEG Philippines on 11 August 2017. The Company will hold 40% equity interest in MYEG Philippines for a total cash consideration of USD2,000,000. As at the end of the financial period, the total paid-up cash consideration amounted to USD1,500,000 (approximately RM6,359,000). The Company will further inject the required capitalisation subject to the fulfilment of the conditions as stated in the joint venture agreement.