20 INVESTMENTS IN SUBSIDIARIES Company 2021 2020 RM’000 RM’000 Unquoted investments, at cost At 1 January 2,157,406 2,157,406 Additional investment in a subsidiary (Note 20(a)) 122,000 - Disposal of investment in subsidiary (Note 20(b)) (913,937) - At 31 December 1,365,469 2,157,406 Accumulated impairment At 1 January 856,168 828,806 Charged during the year (Note 20(c)) - 27,362 Disposal of investment in subsidiary (Note 20(b)) (762,550) - At 31 December 93,618 856,168 Net investment in subsidiaries 1,271,851 1,301,238 (a) Capital injection in a subsidiary During the financial year ended 31 December 2021, MSM Malaysia Holdings Berhad (“the Company”) made a capital injection of RM122,000,000 to MSM Perlis Sdn Bhd (“MSMP”) for the purpose of balance sheet restructuring prior to disposal of MSMP. (b) Disposal of a subsidiary during the financial year On 29 September 2021, the Company completed the disposal of the entire equity of MSMP, a wholly owned subsidiary of the Company, for a total cash consideration of RM181,106,000, which resulted in a gain on disposal of RM91,814,000 to the Group and a gain on disposal of RM28,721,000 to the Company after net cost to sell. The effect of the disposal of MSM Perlis Sdn. Bhd. on the financial position of the Group as at the financial year end is as follows: Net asset disposed RM’000 Asset held for sale 89,421 Receivables 439 Income tax recoverable 533 Cash and cash equivalents 5,204 Payables (72) Deferred tax liabilities (7,171) Net asset disposed 88,354 Cost to sell 938 Gain on disposal of a subsidiary# 91,814 Proceeds from disposal of a subsidiary 181,106 # Of the total gain, RM6,287,000 is shown as gain disposal for continuing operations and RM85,527,000 is shown as gain on disposal from discontinued operations. NOTESTOTHE FINANCIAL STATEMENTS FORTHE FINANCIALYEAR ENDED 31 DECEMBER 2021 SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 339
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