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ASIA MEDIA GROUP Berhad
Annual Report 2016
102
Notes to the Financial Statements
(continued)
9.
Investment in subsidiaries (cont’d)
# The auditors’ report of these subsidiaries contains a paragraph of material uncertainty
related to going concern in relation to the appropriateness of the going concern basis of
accounting used in the preparation of their financial statements. The holding company will
provide financial support to these subsidiaries.
*
The audited financial statements of the subsidiary are not available for consolidation. The
subsidiary is consolidated based on management accounts.
^ Audited by firm of auditors other than ECOVIS AHL PLT
(a) Impairment assessment of investments in subsidiaries
Investments in subsidiaries are tested for impairment when such indicators exist. This
requires an estimation of the value-in-use of these investments. In making this assessment,
amongst others, the management has taken into consideration the projected long-term
growth in the broadcasting advertising industry as well as oil palm plantation activities of
the respective subsidiaries of the Group.
Based on the impairment assessment performed, no provision for impairment of investment
in subsidiaries has been made in the current year as the estimated recoverable amounts
of the investment are higher than their carrying amounts.
(b) Acquisition of subsidiary
On 2 February 2016, DPO Plantations Sdn. Bhd. (“DPO”), a wholly owned subsidiary of
the Company, has entered into a joint venture agreement (“JVA”) with Pelita Holdings
Sdn. Bhd. (“PHSB”) to develop a parcel of native customary rights land situated at Loba
Bunut, Bintangor, Sarikei Division, Sarawak, into an oil palm plantation via a joint venture
company (“JVC”) to be formed by DPO and PHSB.
The JVC shall be incorporated with an initial authorised share capital of RM100,000 and
issued and paid-up share capital of RM100, comprising ordinary shares of RM1.00 each.
And are to be subscribed by DPO and PHSB in the agreed proportions of 60% and 40%
respectively. The 40% proportion to be held by PHSB comprises 10% held for PHSB itself
and 30% held in trust for the NCR owners.
On 4 March 2016, the JVC has been incorporated under the name of DPO Pelita Bintangor
Sdn. Bhd. ("DPB"). The authorised share capital of DPB as of this date are RM400,000
divided into 400,000 ordinary shares of RM1.00 each and the total issued and paid-up
shares alloted is 2 shares of RM1.00 each.
On 9 March 2016, DPB increased its issued and paid-up share capital from RM2 to RM100
by issuance of 98 new ordinary shares of RM1.00 each at par.