NOTES TO THE FINANCIAL STATEMENTS Cont’d 7. Investments in subsidiaries cont’d 7.2 Transactions with non-controlling interests cont’d During the current and previous financial years, both parties had agreed to further settlements on the previous cash consideration as follows: 2022 and 2021 The NCI was not entitled to a preference dividend declared and paid to Press Metal Berhad (“PMB”), the former holding company of PMBTU amounted to RM74,000,000 (2021: RM72,000,000), which resulted in a dilution of its interest in PMBTU by RM14,800,000 (2021: RM14,400,000). 7.3 Share capital reduction of PMBS On 19 January 2022, PMBS, a 60%-owned subsidiary of PMB, reduced its ordinary share capital from RM5,000,000 comprising 5,000,000 ordinary shares to RM10 comprising 10 ordinary shares at an issue price of RM1.00 each via cancellation of RM5,000,000 ordinary shares at an issue price of RM1.00 each. The reduction in the issued share capital is effected by the repayment of paid up share capital to the shareholders, which is in excess of the needs of the Company. This has resulted in a decrease in NCI by RM2,000,000. 7.4 Impairment loss During the current and previous financial years, decline in business activities of a subsidiary caused the Company to assess the recoverable amount of investment in the subsidiary. The Company has estimated the recoverable amount of the investment in the subsidiary to be lower than its carrying amount. Arising from the above, an impairment loss of RM7,128,000 (2021: RM3,500,000) was recognised in profit or loss. The recoverable value of the investment in the subsidiary was based on the estimated value in use, determined by discounting future cash flows to be generated from the subsidiary. 8. Investments in associates Group Company 2022 2021 2022 2021 Note RM’000 RM’000 RM’000 RM’000 Investments in: - Quoted shares 8.1 44,026 11,812 44,026 11,812 - Irredeemable convertible unsecured loan stocks (“ICULS”) together with free detachable warrants 8.1 58,844 58,844 58,844 58,844 - Unquoted shares 1,137,261 1,137,261 1,104,821 1,104,821 Share of post-acquisition reserves 303,465 133,748 - - Group’s share of net assets 1,543,596 1,341,665 1,207,691 1,175,477 Level 1 fair value of quoted instruments: - Quoted shares 947,091 527,450 947,091 527,450 - ICULS 376,074 274,892 376,074 274,892 - warrants 8.1 - 96,749 - 96,749 ANNUAL REPORT 2022 248
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