GHL System Berhad Annual Report 2020

123 a n n u a l r e p o r t 2 0 2 0 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 16. INVESTMENTS IN SUBSIDIARIES (cont’d) (d) The details of the subsidiaries are as follows: (cont’d) Name of company Country of incorporation/ Principal place of business Effective interest in equity 2020 2019 % % Principal activities Subsidiary of Paysys (M) Sdn. Bhd Paysys Communications Sdn. Bhd. # Malaysia 100.00 100.00 Engaged in developing payment solution together with relevant hardware require for a complete solution. Paysys Technology Sdn. Bhd. # Malaysia 100.00 100.00 Dormant. # Subsidiaries audited by BDO PLT Malaysia or BDO PLT member firms. ^ Subsidiaries not audited by BDO PLT Malaysia or BDO PLT member firms. * 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.. (e) Disposal of subsidiary during the financial year (i) Speed Pay Plc (“Speed Pay”) During the year, GHL Asia Pacific Limited (“GAPL”), a wholly owned subsidiary of the Company, disposed its entire holding of 51.0% equity interest in Speed Pay, to Mr Lim Sambat, the minority shareholder of Speed Pay for cash consideration of USD250,000 (equivalent to RM1,008,625). As at the reporting date, the shares of Speed Pay held by GHL Asia Pacific Limited, has yet to be transferred to Mr Lim Sambat. The Directors have determined that the Group has lost control over Speed Pay on 17 December 2020 by virtue of an agreement with Mr Lim Sambat that Speed Pay’s shares currently held by GAPL are held on trust of Mr Lim Sambat, pending transfers. Based on the term of the agreement, the Group neither receive any significant returns related to the operation and net asset of Speed Pay nor the ability to direct Speed Pay’s activities that significantly affect its returns. Speed Pay was not classified as held for sale as at 31 December 2019 and the comparative statement of profit or loss and other comprehensive income has been re-represented to show the discontinued operation separately from continuing operations. Management committed to a plan to sell Speed Pay in mid 2020 due to strategic decision to place greater focus on the Group’s core operation in Malaysia.