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 172 37 DIVIDENDS Group and Company 2017 RM’000 2016 RM’000 In respect of the financial year ended 31 December 2016: 1 st interim single tier cash dividend of 0.5 sen per share paid on 5 October 2016 - 3,864 In respect of the financial year ended 31 December 2015: 2 nd interim single tier cash dividend of 1.0 sen per share paid on 5 April 2016 - 7,728 - 11,592 38 DISPOSAL OF SUBSIDIARIES (a) Disposal of subsidiary during the financial year On 21 December 2017, the Company and WSC Capital Sdn Bhd (“WSC Capital”), a direct wholly-owned subsidiary of the Company had disposed of 2,000,001 ordinary shares and 3,000,000 redeemable preference shares of WS Agro Industries Pte Ltd (“WS Agro”), representing 100% equity interest in WS Agro, for a total cash consideration of USD6,000,000. As a result of the disposal, WS Agro ceased to be a wholly-owned subsidiary of the Company. Details of the disposal and the net cash flow on disposal are as follows: At the date of disposal RM’000 Investment in associate 24,104 Other receivables 59 Amount owing by associate 1,785 Cash and bank balances 5 Other payables (15) Amount owing to related company (1) Group share of net assets disposed 25,937 Net disposal proceeds 24,469 Net loss on disposal before reclassification of foreign currency translation reserve (1,468) Reclassification of foreign currency translation reserve to profit or loss (6,895) Net loss on disposal (8,363) Less: Cash and bank balances of subsidiary disposed (5) Proceeds receivable 8,363 Net cash outflow on disposal (5) (b) Disposal of subsidiary in the preceding financial year On 14 March 2016, WSN Investments Limited, an indirect wholly-owned subsidiary of the Company, disposed 2,500,000 ordinary shares of Naira$1 each in the issued and paid-up share capital of LTT Oil & Gas Nigeria (“LTT”), representing 100% equity interest in LTT to Pan African International Limited for a total cash consideration of USD900,000 (equivalent to approximately RM3,703,000). As a result of the disposal, LTT ceased to be an indirect subsidiary of the Company.