notes to the financial statements
for the financial year ended 31 December 2014 (Continued)
8 INVESTMENT IN SUBSIDIARIES (CONTINUED)
ø
On 31 January 2013, the Group subscribed an additional 16,000 shares in Atama Resources Inc. (“ARI”) for a cash consideration of USD9,300,000 (equivalent
to RM28,672,000). With the completion of this subscription, the Group’s effective equity interest in ARI increased to 51%. Accordingly, ARI and its subsidiaries,
namely Atama Plantation SARL, Signet Plus Sdn. Bhd., Agro Commodities Inc. and Atama Forest SARL became subsidiaries effective 31 January 2013 (Refer
Note 43(b)(ii)).
@
On 7 March 2012, PT MPE Deepwater, indirect wholly-owned subsidiary of the Company had at its Extraordinary General Meeting, inter-alia, approved the special
resolutions to wind up the company by way of Member’s Voluntary Winding Up. As a result, the Directors did not have control over the subsidiary and as such it
was not consolidated.
π
Although the Company does not own more than 50% of the equity shares of Wasco Oilfield Services Sdn. Bhd. (“WOS”) and Wasco Lindung Sdn. Bhd. (“WL”),
and consequently it does not control more than half of the voting power of those shares, it has the power to appoint and remove the majority of the Board of
Directors of WOS and WL and control of these entities is by the Company. Consequently, Wasco Oilfield Services Sdn. Bhd. and Wasco Lindung Sdn. Bhd. are
controlled by the Company and is consolidated in these financial statements.
On 17 February 2015, PMT Industries Sdn. Bhd., an indirect wholly-owned subsidiary of the Company acquired the remaining 17% equity interest in PMT-Phoenix
Industries Sdn. Bhd. (‘PMTPI”). Upon completion of the acquisition, PMTPI became an indirect wholly-owned subsidiary of the Company.
On 21 April 2015, Syn Tai Hung (Cambodia) Co. Ltd ("Syn Tai Hung Cambodia") had been incorporated in Cambodia, with an initial issued and paid-up share capital of
USD300,000 divided into 300,00 shares of USD1.00 each. Upon incorporation of Syn Tai Hung Cambodia, it became an 80% owned indirect subsidiary of the Company,
held through its indirect wholly-owned subsidiaries, namely STH Sri Bulatan Sdn. Bhd. and Stellar Marketing Sdn. Bhd., with equity interests of 70% and 10%,
respectively.
Non-controlling interests in subsidiaries
The Group’s subsidiaries that have material non-controlling interests (“NCI”) are as follows:
Group
Mackenzie
Industries
Sdn. Bhd.
Atama
Resources
Inc.
Group
Wasco
Coatings
Malaysia
Sdn. Bhd.
Petro-Pipe
(Sabah)
Sdn. Bhd.
Other
individually
immaterial
subsidiaries
Total
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
2014
NCI percentage of ownership interest and
voting interest
40%
49%
30%
40%
Carrying amount of NCI
12,017
65,576
107,901
4,412
3,400
193,306
Total comprehensive income/(expense)
allocated to NCI
3,673
(13,918)
29,735
(6,966)
8,251
20,775
102
Wah Seong Corporation Berhad • Annual Report 2014
