129 ANNUAL REPORT 2024 Notes to The Financial Statements 31 December 2024 14. Investments in subsidiaries Company 2024 2023 $ $ Movements during the year: Balance at beginning of year 5,723,472 5,723,472 Acquisition of equity shares from non-controlling interests # 1,160,289 – Subscriptions of additional equity shares of subsidiaries ^ 1,652,802 – Allowance for impairment (600,000) – Balance at end of year 7,936,563 5,723,472 Total cost comprising: Unquoted equity shares at cost 9,901,063 7,087,972 Allowance for impairment (1,964,500) (1,364,500) Total at cost 7,936,563 5,723,472 Movements in allowance for impairment: At beginning of year 1,364,500 1,364,500 Impairment loss charged to profit or loss included in other losses * 600,000 – At end of the year 1,964,500 1,364,500 # Acquisition of non-controlling interest without change in control During the reporting year, the Company acquired 9% and 12% of the equity interests held by non-controlling shareholders in the subsidiaries, Megachem Raya Pte Ltd (“Megachem Raya”) and Megachem (UK) Ltd (“Megachem UK”), for cash considerations of $766,874 and $393,415 respectively. Upon completion of these acquisitions, the Company’s equity interests held in Megachem Raya and Megachem UK had increased to 83% and 97% respectively. The carrying amount of the non-controlling interests of Megachem Raya and Megachem UK at date of acquisitions were approximately $719,461 and $332,332. The difference between the changes in the balance of non-controlling interests and the considerations the Company paid, amounting to $108,496 in total, was recognised in retained earnings. ^ During the reporting year, the Company’s receivables from Megachem Specialty Chemicals (I) Private Limited (“Megachem India”) and Megachem Australia Pty Ltd (“Megachem Australia”) of $750,433 and $902,369 respectively were converted to the costs of investments in these two subsidiaries. * The additional impairment loss was recognised on the Company’s investment in Megachem India during the year. The decreasing performance of Megachem India Limited was considered sufficient evidence for recognition of impairment loss as at 31 December 2024.
RkJQdWJsaXNoZXIy NTkwNzg=