GHL System Berhad Annual Report 2019

G H L S Y S T E M S B E R H A D 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) 132 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 17. INVESTMENTS IN JOINT VENTURES AND AN ASSOCIATE (cont’d) (b) Deemed disposal of a joint venture during the financial year ended 31 December 2018 The details of the deemed disposal are as follows: 2018 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) (c) The Group does not have any joint venture, which is individually material to the Group for both financial years ended 31 December 2018 and 31 December 2019. (d) The details of the associate as follows: Name of company Country of incorporation/ Principal place of business Effective indirect interest in equity Principal activities 2019 2018 % % Associate of Mobiepay Sdn. Bhd. MRuncit Commerce Sdn. Bhd. # Malaysia 29.17 29.17 Engaged in the business of developing and selling software and e-commerce. Associate of Pay Here Sdn. Bhd. MRuncit Commerce Sdn. Bhd. # Malaysia 2.59 2.59 Engaged in the business of developing and selling software and e-commerce. # Associate audited by BDO PLT Malaysia. Associate is accounted for using the equity method in the consolidated financial statements. (e) In the previous financial year, MRuncit Commerce Sdn. Bhd. (“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. (f) During the financial year, the Group acquired an additional of 349,360 ordinary shares in Mruncit for total cash consideration of RM635,200 for working capital purpose.