GHL System Berhad Annual Report 2017

GHL SYSTEMS BERHAD 96 NOTES TO THE FINANCIAL STATEMENTS 31 December 2017 CONT’D 14. INVESTMENTS IN SUBSIDIARIES (cont’d) (d) The details of the subsidiaries are as follows: (cont’d) Name of company Country of incorporation Effective interest in equity Principal activities 2017 2016 % % Subsidiary of GHL Systems Philippines, Inc. Pinoytek Solusyen, Inc. @ Philippines 40.00 40.00 Dormant. Subsidiary of GHL (Thailand) Co., Ltd. Conscious Object Development Co. Ltd. Thailand 97.74 95.45 Dormant. # Subsidiaries audited by BDO in Malaysia. ^ Effective interest of the Group in PT. Spotpay Indonesia (“Spotpay”) is 100% taking into account 99% interest in equity of Spotpay held by a wholly-owned subsidiary of the Company, GHL Asia Pacific Limited. @ The Group controls Pinoytek Solusyen, Inc. (“Pinoytek”) and e-pay Thailand Co. Limited (“e-pay Thailand”) even though it owns less than fifty percent (50%) of the voting rights. This is due to the key management personnel of Pinoytek and e-pay Thailand, who have the ability to direct the relevant activities, are employees of the Group. Furthermore, a significant portion of Pinoytek’s and e-pay Thailand’s activities are conducted on behalf of the Group. * Effective interest of the Group in PT e-pay Indonesia (“e-pay Indo”) is 100% taking into account 21.20% interest in equity of e-pay Indo held by a wholly-owned subsidiary of the Company, EPY Capital Holdings Limited and 78.80% interest in equity of e-pay Indo held by an indirect subsidiary of the Company, e-pay (M) Sdn. Bhd.. : Subsidiary incorporated during the financial year. (e) De-registration of subsidiary On 24 March 2017, a wholly-owned subsidiary of the Company, e-pay Asia Pty. Ltd., had been de-registered from the Australian Securities and Investments Commission. (i) Effects of the de-registration of e-pay Asia Pty. Ltd. are as follows: 2017 RM Carrying amount of shares at the date of disposal 42,862,857 Less: Realisation of post-acquisition reserves - Accumulated losses (39,586,726) - Exchange translation reserve reclassified to profit or loss (3,165,518) Loss on de-registration of a subsidiary 110,613 (f) Acquisition of a subsidiary On 10 July 2017, the Group had undertaken an internal restructuring exercise involving the acquisition by the Company of the entire equity interests in e-pay (M) Sdn. Bhd. (“EPM”) from EPY Capital Holdings Limited, a wholly-owned subsidiary of the Company for a total consideration of RM6. Subsequent to the acquisition, EPM became a direct wholly-owned subsidiary of the Company.