KUB Malaysia Berhad Annual Report 2021

18. INVESTMENTS IN SUBSIDIARIES (cont’d) (d) Transactions during the financial period (i) Subscription of new shares in the subsidiaries The Company had increased its investment in subsidiaries amounting to RM141,858,000 by capitalising the advances made to the following subsidiaries: Date of No. of share Subsidiaries Allotment (Units) RM’000 Restoran Kualiti Sdn Bhd 11 June 2021 131,707,846 131,708 Cybertrek (Malaysia) Sdn Bhd 4 June 2020 5,149,973 5,150 KUB Malua Plantation Sdn Bhd 25 September 2020 5,000,000 5,000 Subsequently, the impairment losses provided for Restoran Kualiti Sdn Bhd and Cybertrek (Malaysia) Sdn Bhd amounting to RM136,858,000 previously, has been transferred to impaired account for unquoted shares. (ii) Reversal during the period During the period, there was repayment from a subsidiary namely KUB Ekuiti Sdn Bhd amounting to RM8,375,000 and the reversal of impairment has been recognised in profit or loss accordingly. (iii) Disposal of a subsidiary On 8 April 2021, the Company entered into a Share Sale Agreement with Tradewinds Plantation Berhad for the disposal of its 100% equity interest in KUB Malua Plantation Sdn Bhd (‘KUB Malua’) comprising 10,000,000 ordinary shares of RM1 per share and shareholders advances of RM8,637,000 for a total cash consideration of RM10,549,000 as determined at the completion date. Upon the disposal of KUB Malua, the amount outstanding from the said company of RM18,561,000 has been written off, which has resulted in loss on disposal of RM26,649,000 was recognised in profit or loss as disclosed in Note 9. The transaction was completed on 30 April 2021. KUB Malua is principally involved in cultivation of oil palm and management of oil palm estates in Kinabatangan, Sabah. Effect of disposal of KUB Malua to the financial position of the Group in the current period were as follows: 30.6.2021 RM’000 Property, plant and equipment (Note 15) 97,839 Biological assets (Note 22) 599 Trade and other receivables 1,189 Cash and bank balances 3,641 Trade and other payables (4,090) Amount due to holding company (18,561) Borrowings (Note 27) (69,814) Net assets disposed 10,803 Non-recoverability of intercompany advances 18,561 Loss on disposal of a subsidiary (Note 9) (18,815) Proceeds from disposal 10,549 Less: Cash and cash equivalents (3,641) Cash flow on disposal, net of cash disposed of 6,908 107 ANNUAL REPORT 2021 FINANCIAL STATEMENTS