GHL System Berhad Annual Report 2020

144 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 ) NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 21. OTHER INVESTMENTS (cont’d) (a) The Group and Company’s other investments are classified as financial assets measured at fair value through profit or loss. These are strategic investments for which the Company considers this classification to be appropriate and relevant. (b) In the previous financial year, the Group’s and Company’s investment in unquoted shares outside Malaysia are categorised as Level 3 in the fair value hierarchy. Fair values of investments in unquoted shares are estimated based on the estimation of value in use. The following table shows a reconciliation of Level 3 fair values of equity investments: Group and Company 2020 2019 RM RM Balance as at 1 January - - Addition - - Disposal - (2,117,588) Fair value changes - 2,117,588 Balance as at 31 December - - In the previous financial year, the Company disposed its investment in unquoted shares. The Group and Company does not hold any equity securities as at the reporting date for each period. (c) Unquoted unit trust in Malaysia and unquoted short term money market funds held by the Group and the Company comprises money-market fund which is highly liquid, readily convertible to cash and are subject to insignificant risk of changes in value and hence, meet the definition to be classified as cash and cash equivalents. (d) Other investments are denominated in RM. (e) Unquoted unit trust in Malaysia and unquoted short term money market fund of the Group and of the Company are categorised as Level 2 in the fair value hierarchy. The fair value of investment is determined by reference to the counter party quotes at the close of the business at the end of the reporting period. (f) The following table shows a reconciliation of Level 2 fair values of other investments: Group Company 2020 2019 2020 2019 RM RM RM RM Balance as at 1 January 53,270,574 42,833,438 42,164,039 42,732,647 Addition 97,200,000 56,780,000 89,200,000 41,080,000 Interest received 1,777,320 1,715,669 1,503,240 1,475,495 Disposal (87,342,431) (48,102,250) (72,740,627) (43,177,755) Fair value changes (95,896) 43,717 (110,132) 53,652 64,809,567 53,270,574 60,016,520 42,164,039 (g) Information on financial risk of investment is disclosed in Note 33 to the financial statements.