Wah Seong Corporation Berhad Annual Report 2021 139 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 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 2021 2020 RM’000 RM’000 At 1 January 173,526 127,526 Impairment loss recognised 8,124 46,000 181,650 173,526 During the financial year ended 31 December 2021, due to the uncertainty of the future economic condition, the investment in a subsidiary of the Company was not expected to be recovered. The recoverable amount was RM6,665,000, determined through the higher of value in use or fair value less cost to sell. As a result, impairment loss of RM8,124,000 was recognised in the profit and loss. For the previous financial year ended 31 December 2020, due to the negative impact of Covid-19 pandemic, the investment in a subsidiary of the Company was not expected to be recovered. The recoverable amount was 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 recognised in the profit and loss. Details of subsidiaries are as follows: Group’s effective interest 2021 % 2020 % Country of incorporation Principal activities 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. -q -q 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 Infra Services Sdn. Bhd. (formerly known as Wasco CPM Sdn. Bhd.) 91s 51 Malaysia Engineering, procurement and construction of onshore and near shore of hydrocarbon, water and slurry pipelines and associated facilities
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