Wah Seong Corporation Berhad Annual Report 2019

136 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 10 INVESTMENT IN SUBSIDIARIES (CONTINUED) o On 24 June 2019, Syn Tai Hung Trading Sdn. Bhd. (“STHT”), an indirect wholly-owned subsidiary of the Company, had acquired 30,000 and 60,000 ordinary shares, representing 10% and 20% equity interest respectively in the issued and paid-up share capital of Syn Tai Hung (Cambodia) Co., Ltd. (“STH Cambodia”) from Petro-Pipe Engineering Services Sdn. Bhd., an indirect wholly-owned subsidiary of the Company and Mr Okhna Ing Veasna for a total nominal consideration of USD100 and USD200 respectively. Upon completion of the acquisition of STH Cambodia shares, STH Cambodia became an indirect wholly- owned subsidiary of the Company, held through STHT. n On 12 June 2019, Wasco CPM Sdn. Bhd. (“Wasco CPM”), an indirect 51% owned subsidiary of the Company, had acquired 9,500 ordinary shares, representing 95% of equity interest in the total number of issued and paid- up share capital of Eco Consortium Sdn. Bhd. (“ECSB”), for a total consideration of RM1. Upon completion of the acquisition of ECSB shares, ECSB became an indirect 48% owned subsidiary of the Company, held through Wasco CPM. Although the Company does not own more than 50% of the equity shares of ECSB 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 ECSB as such control of these entities is by the Company. Consequently, ECSB is controlled by the Company and is consolidated in these financial statements. m On 28 February 2019, Asiana Emas Sdn. Bhd. (“AESB”), an indirect wholly-owned subsidiary of the Company, had increased its equity interest in Petro-Pipe (Sabah) Sdn. Bhd. (“PPS”) from 60% to 70% following the Renounceable Rights Issue Exercise undertaken by PPS of 10,000,000 ordinary shares issued at RM2.00 each. The Renounceable Rights Issue shares was issued and allotted proportionately to PPS’s existing shareholders, namely AESB and Sabah Energy Corporation Sdn. Bhd. (“SEC”) which SEC had renounced in totality. l On 5 December 2018, Wasco Engineering & Technology Inc. (“WETI”), an indirect 65% owned subsidiary of the Company, had at its Shareholders’ Meeting inter-alia, approved the resolution to voluntary wind up WETI in accordance with the rules and regulations of the BVI Business Companies Act, 2014. The application for the appointment of Voluntary Liquidator was duly filed and approved by the Financial Services Commission of British Virgin Islands on 4 January 2019. As a result, the Group no longer controls the subsidiary and as such it was not consolidated. On 17 April 2019, WETI had completed the voluntary liquidation. k On 27 December 2018, Syn Tai Hung Trading Sdn. Bhd. (“STHT”), an indirect wholly-owned subsidiary of the Company, had transferred 1,000,000 ordinary shares, representing 100% equity interest in the issued and paid- up share capital of Syn Tai Hung Marketing Sdn. Bhd. (“STHM”) to WDG Resources Sdn. Bhd. (“WDG”), a 60% owned subsidiary of the Company, for a total cash consideration of RM163,233. As a result, STHM became a wholly-owned subsidiary of WDG and an indirect 60% owned subsidiary of the Company, held through WDG. j On 20 December 2018, the Company had disposed of 50,000 ordinary shares, representing 100% equity interest in the issued and paid-up share capital of Peakvest Sdn. Bhd. (“PSB”) to Jutasama Sdn. Bhd. (“JSB”), a wholly-owned subsidiary of the Company, for a total cash consideration of RM50,000. As a result, PSB ceased to be a direct wholly-owned subsidiary of the Company and became an indirect wholly-owned subsidiary of the Company, held through JSB. i On 12 December 2018, Spirolite Marketing Sdn. Bhd. (“Spirolite Marketing”), an indirect wholly-owned subsidiary of the Company, had at its Extraordinary General Meeting inter-alia, approved the special resolution to wind up Spirolite Marketing by way of Member’s Voluntary Winding Up. As a result, the Group no longer controls the subsidiary and as such it was not consolidated. h On 6 September 2018, PMT Saito Sdn. Bhd. (“PMTS”) was incorporated in Malaysia. PMTS has an initial issued and paid-up share capital of RM1,000 divided into 1,000 ordinary shares. PMTS became an indirect 51% owned subsidiary of the Company, held through PMT Industries Sdn. Bhd., an indirect wholly-owned subsidiary, and Saito Separator Limited, with equity interest of 51% and 49% respectively.