Fraser & Neave Holdings Bhd Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 06 Financial Statements 175 NOTES TO THE FINANCIAL STATEMENTS 9. INVESTMENT IN A JOINT VENTURE Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 At cost Unquoted shares 500 500 500 500 Share of post-acquisition reserves (22,694) (15,399) – – (22,194) (14,899) 500 500 Shareholder’s loan 126,820 126,820 126,820 126,820 Interest on shareholder’s loan 38,279 32,465 38,279 32,465 142,905 144,386 165,599 159,785 Less: Unrealised profit (55,292) (55,292) – – 87,613 89,094 165,599 159,785 The joint venture is incorporated in Malaysia and the details are as follows: Name of joint venture Principal activity/Nature of relationship Effective ownership and voting interest (%) 2019 2018 Vacaron Company Sdn Bhd (“VCSB”) (Financial year end: 30 September) Property development/Strategic to the property development activities of the Group 50.00 50.00 The following table summarises the information of VCSB, adjusted for any differences in accounting policies and reconciles the information to the carrying amount of the Group’s interest in VCSB, which is accounted for using the equity method. Group 2019 RM’000 2018 RM’000 Summarised financial information As at 30 September Non-current assets 30 2,708 Current assets 286,169 286,428 Current liabilities (330,606) (318,954) Year ended 30 September Revenue – – Loss for the year (14,589) (13,117) Reconciliation of net liabilities to carrying amount as at 30 September Group’s share of net liabilities (22,203) (14,908) Goodwill 9 9 Shareholder’s loan 126,820 126,820 Interest on shareholder’s loan 38,279 32,465 Elimination of unrealised profit (55,292) (55,292) Carrying amount in the statement of financial position 87,613 89,094 Group’s share of loss for the year (7,295) (6,558) The joint venture had no other contingent liabilities or capital commitments as at 30 September 2019 and 2018. VCSB cannot distribute its profits without the consent from the two venture partners.