2018 UEM Edgenta Annual Report

17. INVESTMENT IN SUBSIDIARIES Company 2018 2017 RM’000 RM’000 Unquoted shares, at cost: - Malaysian subsidiaries 2,134,211 2,134,211 - Foreign subsidiaries 86,795 86,795 2,221,006 2,221,006 Less: Accumulated impairment (a) (431,963) (302,963) 1,789,043 1,918,043 Certain unquoted shares in subsidiaries are pledged to financial institutions for facilities granted to the Group and the Company as disclosed in Note 29(a). Further details of the subsidiaries are disclosed in Note 45. (a) Impairment of investment in a subsidiary During the current financial year, an impairment loss of RM129.0 million (2017: RM111.9 million) was recognised against the carrying amount of its investment in Opus Group Berhad (“OGB”) to its recoverable amount. Based on management’s assessment, the recoverable amount of its investment in OGB was RM761.6 million (2017: RM890.6 million) which was estimated based on the value-in-use of OGB. (b) Restructuring of Edgenta UEMS Pte. Ltd. (Formerly known as UEMS Pte. Ltd.) On 10 August 2018, Edgenta UEMS Pte. Ltd. became a direct subsidiary of Edgenta (Singapore) Pte. Ltd. (“ESG”), a wholly-owned subsidiary of the Company via the transfer of shares by way of distribution-in-specie from Asia Integrated Facility Solutions Pte. Ltd. (“AIFS”), a wholly owned subsidiary of ESG. The restructuring had no material effect to the financial statements of the Group and Company. (c) Dissolution of International Business Link Inc. (“IBL”) On 1 November 2018, IBL, a wholly-owned subsidiary of Opus Group Berhad, which in turn is a wholly-owned subsidiary of the Company, had been struck off from the British Virgin Islands’ Registry of Corporate Affairs. (d) Members’ voluntary winding-up of AIFS and Asia Facility Solutions Pte. Ltd. (“AFS”) On 22 November 2017, AIFS and AFS, indirect wholly-owned subsidiaries of the Company incorporated in Singapore, had been placed under members’ voluntary winding-up pursuant to Section 290(1) of the Singapore Companies Act (Cap. 50). The members’ voluntary winding up was completed on 27 December 2018. The voluntary wind-up had no material effect to the earnings, gearing or net asset of the Group and Company. Financial Review Stakeholder Information AGM Information 203 Governance Review of Sustainability Activities