Wah Seong Corporation Berhad Annual Report 2020

129 ANNUAL REPORT 2020 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 9 INVESTMENT IN SUBSIDIARIES (CONTINUED) The movements in the allowance for impairment losses of investment in subsidiaries during the financial year are as follows: Company 2020 2019 RM’000 RM’000 At 1 January 127,526 127,526 Impairment loss recognised 46,000 - 173,526 127,526 Due to the negative impact of Covid-19 pandemic, the investment in a subsidiary of the Company is not expected to be recovered. The recoverable amount is RM3,000,000, determined through the higher of value in use or fair value less cost to sell. As a result, impairment loss of RM46,000,000 was charged. Details of subsidiaries are as follows: Group’s effective interest Country of incorporation Principal activities 2020 % 2019 % Wasco Energy Ltd. 100 100 Bermuda Investment holding Wasco Management Services Sdn. Bhd. 100 100 Malaysia Provision of management support services * Wasco Capital Pte. Limited 100 100 Singapore Investment and management of treasury activities ~ Wasco (Australia) Pty. Ltd. 60 60 Australia Provision of construction services for the oil and gas industry # Wasco Coatings Limited 100 100 Hong Kong, SAR Investment holding * Wasco Coatings UK Ltd. 100 100 England and Wales Investment holding * Wasco Management Services S.R.L. - m 100 Italy Dormant (Dissolved) * Wasco Coatings Singapore Pte. Ltd. 100 100 Singapore Investment holding ~ Turn Key Pipeline Services B.V. 100 100 The Netherlands Provision of engineering design, construction, installation services and supply of equipment for pipe coating plant and facilities for the oil and gas industry Wasco CPM Sdn. Bhd. 51 51 Malaysia Engineering, procurement and construction of onshore and near shore of hydrocarbon, water and slurry pipelines and associated facilities * Eco Consortium Sdn. Bhd. 48 π 48 e Malaysia Dormant