Yinson Annual Report 2021

310 YINSON HOLDINGS BERHAD SECTION 07 : ACCOUNTABILITY NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2021 46. Summary of effects of acquisition and re-organisation of companies (continued) 2020 (continued) Internal re-organisation of companies (continued) (e) On 31 December 2019, Yinson Global Corporation (HK) Limited, an indirect wholly owned subsidiary of the Company, completed the acquisition of 100% equity interest in Yinson Juniper Ltd. ("YJL") from the Company for a consideration of USD2. As a result, YJL became an indirect wholly owned subsidiary of the Company. (f) On 30 January 2020, Yinson Offshore Services Sdn. Bhd., a direct wholly owned subsidiary of the Company, completed the acquisition of 70% equity interest in Regulus Offshore Sdn. Bhd. ("RO") from the Company for a consideration of RM6,650,062. As a result, RO became a 70% indirect owned subsidiary of the Company. 47. Summary of effects of dilution and disposal of companies On 28 April 2020, a Share Subscription Agreement between the Company, Yinson Boronia Consortium Pte. Ltd. (“YBCPL”), Yinson Acacia Limited, both of which are indirect wholly owned subsidiaries of the Company, Sumitomo Corporation and Japan Offshore Facility Investment 1 Pte. Ltd. (“JOFI”) (“Share Subscription Agreement”) was entered into in respect of Project Marlim. The Share Subscription Agreement was completed on 11 May 2020. Pursuant to the Share Subscription Agreement, YBCPL allotted and issued to JOFI 3,340,000 new ordinary shares representing 25% of the enlarged issued share capital of YBCPL (“Subscription Shares”) for a cash consideration of USD3 million. On 28 May 2020, YBCPL further allotted and issued to JOFI 21,660,000 new ordinary shares for a cash consideration of USD22 million. Following the issuance of 25,000,000 new ordinary shares for a total cash consideration of USD25 million, the Group still controls YBCPL, retaining an effective equity interest in YBCPL of 75%. This resulted in an increase in non- controlling interest of USD25 million (RM107 million) (representing 25% interest) and an increase in equity attributable to the owners of the Company of USD0.4 million (RM2 million). The effect of changes in the ownership interest of YBCPL on the equity attributable to owners of the Company during the year is summarised as follows: RM million Consideration received from non-controlling interests 109 Less: Carrying amount of interests in subsidiary disposed (107) Excess of consideration received recognised in parent's equity 2 48. Significant event in the current reporting period The World Health Organisation had, on 11 March 2020, declared COVID-19 as a pandemic. Even with countries introducing their respective vaccination programmes, the pandemic situation is expected to remain a significant challenge for the next 1 to 2 years, affecting business and social activities. Encouragingly, the Group's business continuity plans have succeeded to ensure minimum disruption to its daily operations. Threats and uncertainties which stemmed from the pandemic are mitigated by the fact that the Group’s revenue stream comes primarily from long term fixed priced contracts with reputable oil companies. Nevertheless, the Group will continue to monitor and assess macro developments in order to take pre-emptive and proactive measures to mitigate adverse impacts as and when necessary. The extent to which the pandemic may further impact the Group’s operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence. These developments include the duration and severity of the outbreak, and the actions that may be required to contain the virus or treat its impact. In particular, the protracted duration and additional resources required to safely contain Covid-19 globally, could adversely impact the Group’s operations, work force, cash flows and financial position for the current financial year. Hence, without a firmly established plan for vaccine distribution, the related impact arising from Covid-19 cannot be reasonably estimated at this time for the financial year ending 31 January 2022.