NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2022 (cont’d) 10. Investment in joint ventures (CONT’D) (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. The Company has fully paid up its cash consideration in the previous financial year. During the previous financial year 31 December 2021, the Company entered into a subscription agreement with MYEG Philippines to further subscribe for an additional 5,923,415 issued share capital for total cash consideration of USD0.9 million (approximately RM3,826,000) as part of the required capitalisation subject to the fulfilment of the conditions as stated in the subscription agreement. Upon fulfilment of the condition stated in the subscription agreement, the Company will then hold 49% equity interest in MYEG Philippines. (c) The summarised unaudited financial information for the material joint venture of the Group is as follows: MYEG Philippines 2022 2021 RM’000 RM’000 Non-current assets 2,098 2,255 Current assets 9,452 6,655 Non-current liabilities (2,682) (11,222) Current liabilities (6,268) (3,598) Net assets/(liabilities) 2,600 (5,910) Financial year ended 31 December Revenue 16,182 12,377 Loss/Total comprehensive loss during the financial year (310) (1,635) Group’s share of losses/total comprehensive loss for the financial year (124) (654) Reconciliation of net liabilities to carrying amount Group’s share of net assets/(liabilities) 1,040 (2,364) Add: Deposits for future stock subscriptions 7,931 11,211 Carrying amount of the Group’s interest in this joint venture 8,971 8,847 (d) The summarised unaudited financial information for the immaterial joint venture of the Group is as follows: MYEG (BD) Ltd. 2022 2021 RM’000 RM’000 Financial year ended 31 December Group’s share of losses/total comprehensive loss for the financial year - (38) Carrying amount of the Group’s interest in this joint venture 408 408 202
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