Wah Seong Corporation Berhad Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 FINANCIAL STATEMENTS WAH SEONG CORPORATION BERHAD ANNUAL REPORT 2017 129 7 INVESTMENT IN SUBSIDIARIES (CONTINUED) π Although the Company does not own more than 50% of the equity shares of Wasco Oilfield Services Sdn. Bhd. (“WOS”) and Wasco Lindung Sdn. Bhd. (“WL”), and consequently it does not control more than half of the voting power of those shares, it has the power to appoint and remove the majority of the Board of Directors of WOS and WL as such control of these entities is by the Company. Consequently, WOS and WL are controlled by the Company and is consolidated in these financial statements. Non-controlling interests in subsidiaries The Group’s subsidiaries that have material non-controlling interests (“NCI”) are as follows: Group Mackenzie Industries Sdn. Bhd. RM’000 Wasco Coatings Malaysia Sdn. Bhd. RM’000 Petro- Pipe (Sabah) Sdn. Bhd. RM’000 Other individually immaterial subsidiaries RM’000 Total RM’000 2017 NCI percentage of ownership interest and voting interest 40% 30% 40% Carrying amount of NCI 9,961 90,640 (1,584) (2,806) 96,211 Net (loss)/profit allocated to NCI (1,066) 3,428 (1,428) 688 1,622 Summarised financial information before intra-group elimination As at 31 December Non-current assets 5,794 33,816 80,087 Current assets 90,732 383,197 43,157 Current liabilities (71,624) (114,880) (127,204) Net assets/(liabilities) 24,902 302,133 (3,960) Financial year ended 31 December Revenue 76,489 259,999 65,682 Net (loss)/profit (2,664) 11,426 (3,569) Cash flows generated from/ (used in) operating activities 5,688 12,083 (8,641) Cash flows used in investing activities (17,130) (22,465) (3,213) Cash flows generated from/ (used in) financing activities 28,633 26,284 (2,727) Net change in cash and cash equivalents 17,191 15,902 (14,581) Dividends paid/payable to NCI - - -