notes to the financial statements
for the financial year ended 31 December 2014 (Continued)
9 INVESTMENT IN ASSOCIATES (CONTINUED)
Impairment of investment in an associate
The movements for allowance for impairment loss on investment in associates during the financial year are as follows:
Group
2014
2013
RM'000
RM'000
At 1 January
4,499
4,248
Disposal of associate
(4,627)
-
Effect of exchange rate changes
128
251
At 31 December
-
4,499
Details of associates are as follows:
Country of
incorporation
Group’s effective interest
Principal activities
2014
2013
%
%
Petra Energy Berhad
Malaysia
27
27 Investment holding
Turn Key Pipeline Services B.V.
The Netherlands
-
@
40 Provision of engineering design, construction,
installation services and supply of equipment for
pipe coating plant and facilities for the oil and gas
industry
TOT Inspection Sdn. Bhd.
Malaysia
-
^
45 Dormant (In Members’ Voluntary Winding Up)
Syarikat Beka Sdn. Bhd.
Malaysia
48
48 Dormant
Wah Seong Boustead Company Limited
Myanmar
50
50 Property development, trading and provision of
auxiliary services
HICOM Petro-Pipes Sdn. Bhd.
Malaysia
49
49 Dormant
^
On 10 December 2014, TOT Inspection Sdn. Bhd. (“TOTI”) had at its Extraordinary General Meeting, inter-alia, approved the special resolution to wind up TOTI by
way of Members’ Voluntary Winding Up.
@
On 31 July 2014, Wasco Coatings Singapore Pte. Ltd., an indirect wholly-owned subsidiary of the Company, acquired 22,041 ordinary shares of Euro 1.00 each,
representing 60% of the entire issued and paid-up share capital of Turn Key Pipeline Services B.V. (“TKPS”) for a total cash consideration of Euro1.00. Upon
completion of the acquisition of TKPS shares, TKPS became a wholly-owned subsidiary of the Company. Refer to Note 8.
On 9 March 2015, Petro-Pipe Industries (M) Sdn. Bhd., an indirect wholly-owned subsidiary of the Company, completed the disposal of 7,350,000 ordinary shares of
RM1.00 each in the issued and paid-up share capital of Hicom Petro-Pipes Sdn. Bhd. (“HPP”), representing 49% equity interest in HPP for a total cash consideration of
RM6,883,163. As a result of the disposal, HPP ceased to be an indirect associate of the Company.
106
Wah Seong Corporation Berhad • Annual Report 2014
