GHL System Berhad Annual Report 2018

a n n u a l r e p o r t 2 0 1 8 109 NOT ES TO THE F I NANC I A L STAT EMENTS 3 1 D e c e m b e r 2 0 1 8 C O N T ’ D 16. INVESTMENTS IN JOINT VENTURES AND AN ASSOCIATE (cont’d) (b) In the previous financial year, the Group acquired an additional of 49,000 ordinary shares in MRuncit Commerce Sdn. Bhd. (“Mruncit”) for total cash consideration of RM49,000. On 4 January 2018, Mruncit has increased its issued and paid-up share capital from RM1,290,000 to RM4,090,000 by way of allotment and issuance of 700,000 new ordinary shares for a cash consideration of RM2,800,000 for working capital purpose. As a result of the allotment, the equity interest of the Group in Mruncit is diluted from 49% to 32%. Consequently, Mruncit became an associate of the Group. (c) Deemed disposal of a joint venture during the financial year ended 31 December 2018 The details of the deemed disposal are as follows: At date of disposal Group RM Cost of investment 632,100 Share of post-acquisition reserves (53,179) Accumulated impairment losses (397,700) Share of interest in joint venture 181,221 Fair value of interest held (1,022,488) Fair value gain on disposal (841,267) (d) The Group does not have any joint venture, which is individually material to the Group for both financial years ended 31 December 2017 and 31 December 2018. (e) Set out below is the financial information of all individually immaterial joint ventures on an aggregate basis. Group 2017 RM Carrying amounts of interests in joint ventures 136,798 Share of results for the financial year Share of profit 18,253 Share of other comprehensive income - Share of total comprehensive income 18,253