18. INVESTMENTS IN SUBSIDIARIES (CONT’D.) (a) Group restructuring (cont’d.) The following group restructuring took place in the previous financial year: (cont’d.) (vi) On 3 February 2020, the Company had incorporated a wholly-owned subsidiary, Tropicana Property Services Sdn Bhd with 1 ordinary share which representing 100% of total paid-up capital for a total cash consideration of RM1. (vii) On 31 March 2020, the Company has fully redeemed the Redeemable Convertible Unsecured Loan Stocks (“RCULS”) issued by Tropicana Wisma TT Sdn Bhd (“TWTTSB”) for RM3,111,713 by offsetting of amounts owing by the Company to TWTTSB. (viii) On 18 August 2020, the Company subscribed for 5,000,000 RNCPS issued by Tropicana Corporate Solutions Sdn Bhd at an issuance price of RM1 each for a total cash consideration of RM5,000,000. (ix) On 21 September 2020, the Company had incorporated a wholly-owned subsidiary, Purple Pumkie Organic Farm Sdn Bhd with 1 ordinary share representing 100% of total paid-up capital for a total cash consideration of RM1. (x) On 20 November 2020, the Company completed a capital reduction exercise to reduce its investment in a subsidiary, Tropicana Jaya Sdn Bhd by cancelling 3,820,000 ordinary shares and 1,177,324 RNCPS, all of which are held by the Company amounting to RM4,997,324. (xi) On 8 December 2020, the Company completed a capital reduction exercise to reduce its investment in a subsidiary, Tropicana Lido Development Sdn Bhd by cancelling 6,731,440 Class-B Ordinary Shares and 1,027,290 RNCPS, all of which are held by the Company amounting to RM7,758,730. (xii) On 28 December 2020, the Company has fully redeemed the balance of the RCULS issued by Tropicana Development (Johor Bahru) Sdn Bhd (“TDJBSB”) for RM17,000,000 by offsetting of amounts owing by the Company to TDJBSB. (xiii) On 30 December 2020, the Company has partially redeemed the RNCPS issued by Tropicana Kajang Hill Sdn Bhd (“TKHSB”) for RM17,591,403 by offsetting of amounts owing by the Company to TKHSB. (xiv) On 31 December 2020, the Company has fully redeemed the RCULS issued by Daya Petaling Sdn Bhd (“DPSB”) for RM14,722,030 by offsetting of amounts owing by the Company to DPSB. (b) Impairment loss During the financial year, an impairment loss amounting to RM nil (2020: RM16,895,000) was recognised in the profit or loss of the Company as the recoverable amounts of certain subsidiaries were lower than their carrying amounts as at the reporting date. 19. INVESTMENT IN AN ASSOCIATE Group 2021 2020 RM’000 RM’000 Unquoted shares, at costs 151,552 151,552 Share of post-acquisition results and reserves 11,976 4,106 Unrealised profit arising from sale of land to associate (49,057) (59,774) 114,471 95,884 Details of the associate are as follows: Equity Country of interest Name of associate incorporation Principal activity held (%) 2021 2020 Agile Tropicana Development Sdn Bhd Malaysia Property development 30 30 (“ATROP”) The associate has been accounted for using the equity method of accounting. The summarised financial information of the associate is as follows: Group 2021 2020 RM’000 RM’000 Non-current assets 3,982 4,775 Current assets 952,602 828,131 Non-current liabilities (296,212) (259,388) Current liabilities (115,278) (54,658) Net assets 545,094 518,860 Revenue 213,409 132,443 Profit before tax 37,214 20,153 Profit after tax, representing total comprehensive income 29,599 20,153 Group’s share of results 7,870 6,046 Reversal of unrealised profits 10,717 – Adjusted Group’s share of results 18,587 6,046 The associate had no contingent liabilities or capital commitments as at 31 December 2021 or 31 December 2020. FINANCIAL STATEMENTS NOTES TO THE For the financial year ended 31 December 2021 Annual Report 2021 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 296 297
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