CAHYA MATA SARAWAK ANNUAL REPORT 2016

www.cmsb .com.my Cahya Mata Sarawak Berhad 154 Section 07 Financial StatementS NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2016 21. INVESTMENTS IN JOINT VENTURES (CONT'D.) Name of joint ventures Principal activities Proportion of ownership interest 2016 2015 % % PPES Works Wibawa JV Connection of water supply and all submarine related works 50.0 50.0 PPES Works (Sarawak) Sdn. Bhd. - PN Construction Sdn. Bhd. Construction of Aquatic Centre 49.0 49.0 UEM Construction Sdn. Bhd. - PPES Works (Sarawak) Sdn. Bhd. JV Construction of Lawas Hospital Phase 2A 30.0 30.0 (i) Although the Group has ownership of more than half of the voting power, the joint venture agreement established joint control over the subject entity. No single venturer is in a position to control the relevant activities unilaterally. (ii) Ownership interests in COPE-KPF Opportunities 1 Sdn. Bhd. and COPE Opportunities 2 Sdn. Bhd. are held through redeemable preference shares vide respective shareholders’ agreements. During the financial year, the Group increased its investments in the joint ventures by subscribing to new redeemable preference shares for a total cash consideration of RM3,601,092. (iii) In the previous financial year, the Group invested RM102,000 into PPES Works Larico JV for initial capital requirements. Material joint ventures The following table summarises the financial information in respect of each of the Group’s material joint ventures. The summarised financial information represents the amounts in the MFRS financial statements of the joint ventures and not the Group’s share of those amounts. COPE-KPF Opportunities 1 Sdn. Bhd. COPE Opportunities 2 Sdn. Bhd. RM’000 RM’000 2016 As at 31 December Non-current assets 127,066 115,814 Cash and cash equivalents 2,239 3,827 Other current assets 10,208 25,918 Current liabilities (21,530) (38,651) Net assets 117,983 106,908 Year ended 31 December Revenue 687 1,609 Profit for the year 30,792 38,680 Total comprehensive income 30,792 38,680