18. INVESTMENT IN SUBSIDIARIES (CONTD.) (a) Cost of investment in subsidiary companies (contd.) (iv) Capital reduction of OGB On 15 February 2021, OGB had undertaken capital reduction exercise of RM101.8 million by way of offsetting against the loan amount due from the Company. Consequently, the cost of investment of OGB reduced from RM1,002.4 million to RM900.6 million. This capital reduction exercise has no cash flows impact to the Company. (v) Liquidation of FLLC On 29 May 2021, FLLC, a 75% subsidiary of the Company, which was under Members’ Voluntary Winding-Up, has ceased to be a subsidiary of the Company upon cancellation and termination of its Trade License from the Commercial Register in accordance with Federal Law No. (5) of 1975 and Federal Law No. (8) of 1984 of United Arab Emirates. The financial impact of the liquidation to the Group is as follows: RM’000 RM’000 Final distribution to shareholders, via cash 152 Net asset at the date of liquidation (836) Less: Non-controlling interest 209 Group’s share of net assets (627) (627) Transfer from statutory reserve 279 Transfer from foreign exchange reserve (3,679) (3,400) (3,400) Net loss on liquidation of a subsidiary (3,875) The financial impact of the liquidation to the Company is as follows: RM’000 Final distribution to shareholders, via cash 152 Less: Cost of investment (418) Net loss on liquidation of a subsidiary (266) (vi) Dissolution of FHH On 14 March 2021, FHH, a wholly-owned subsidiary of the Company, which was under Members’ Voluntary Liquidation, has dissolved and ceased to be a subsidiary of the Company. The dissolution of FHH has no cash flows impact to the Company. 18. INVESTMENT IN SUBSIDIARIES (CONTD.) (b) Impairment of investment in subsidiaries The movement in accumulated impairment loss as follows: Company 2022 RM’000 2021 RM’000 At 1 January 410,784 560,993 Impairment loss on investment in a subsidiary company 4,516 40,350 Dissolution of FHH (Note 18(a)(vi)) – (190,559) At 31 December 415,300 410,784 During the current financial year, an impairment loss of RM4.5 million was recognised against the carrying amount of its investment in Edgenta Environmental & Material Testing Sdn. Bhd. (“EEMT”) of RM25.9 million to its recoverable amounts. Based on management’s assessment, the recoverable amount of its investment in EEMT was RM21.4 million which was estimated based on the net tangible asset of EEMT. In the previous financial year, an impairment loss of RM40.3 million was recognised against the carrying amount of its investment in OGB of RM516.5 million to its recoverable amounts. Based on management’s assessment, the recoverable amount of its investment in OGB was RM476.2 million which was estimated based on the VIU of OGB. Summarised financial information Summarised financial information of Rimbunan Melati Sdn. Bhd. (“Rimbunan Melati”), which has non-controlling interests that are material to the Group, is set out below. The summarised financial information presented below is the amount before intercompany elimination. The non-controlling interests in respect of other entities within the Group are not material to the Group. (i) Summarised statement of financial position Rimbunan Melati 2022 RM’000 2021 RM’000 Current assets, representing total assets 11,857 11,815 Current liabilities, representing total liabilities (26) (162) Net assets 11,831 11,653 Equity attributable to owners of the Company 6,507 6,409 Non-controlling interests 5,324 5,244 p.324 p.325 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 FINANCIAL STATEMENTS Notes to the financial statements For the year ended 31 December 2022 Notes to the financial statements For the year ended 31 December 2022
RkJQdWJsaXNoZXIy NDgzMzc=