My EG Services Berhad Annual Report 2020

MY E.G. SERVICES BERHAD Regisration No. 200001003034 (505639-K) 168 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2020 (CONT’D) 7. INVESTMENTS IN JOINT VENTURES The Group The Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Unquoted shares, at cost 8,938 6,874 8,423 6,359 Share of post acquisition losses (2,817) (2,118) - - 6,121 4,756 8,423 6,359 The details of the joint ventures are as follows:- Name of Joint Venture Principal Place of Business Effective Equity Interest Principal Activities 2020 2019 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% 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) On 11 August 2017, the Company entered into a Joint Venture Agreement with I-Pay Commerce Ventures Inc. to incorporate MYEG Philippines. The Company will hold 40% equity interest in MYEG Philippines for a total cash consideration of USD2 million. As at the end of the financial year, the total paid-up cash consideration amounted to USD2 million (approximately RM8,423,000). The Company has fully paid up its cash consideration during the financial year. (c) The summarised unaudited financial information for the joint venture of the Group is as follows:- MYEG PHILIPPINES 2020 2019 RM’000 RM’000 Non-current assets 2,044 584 Current assets 6,032 3,797 Non-current liabilities (7,444) (5,220) Current liabilities (4,917) (1,708) Net liabilities (4,285) (2,547)