KENANGA ANNUAL REPORT 2018

NOTES TO THE FINANCIAL STATEMENTS 31 December 2018 185 ANNUAL REPORT 2018 15. INVESTMENTS IN ASSOCIATES (CONT’D.) (a) Details of the associates are as follows: Name Place of incorporation Principal activities Effectiv equity interest 2018 2017 % % Kenanga Investment Corporation Ltd* Sri Lanka Investment banking related activities 45.0 45.0 Al Wasatah Al Maliah Company* (“Wasatah Capital”) Kingdom of Saudi Arabia Dealing as principal and provision of underwriting, arranging, managing investment funds and custodian services 29.6 29.6 Kenanga Vietnam Securities Joint Stock Corporation* ^ Vietnam Securities, brokerage depository and advisory business 49.0 49.0 * Audited by firms other than Messrs. Ernst & Young. ^ Equity accounted for using unaudited management accounts. The Group and the Bank carried out an impairment assessment on the associates in accordance with the accounting policy stated in Note 3.4(I). The recoverable amount is based on the Group’s share of net tangible assets of the associates. Based on management’s assessment, the Group and the Bank have made adequate provision for impairment loss on the investments as at the financial year end. (b) Summarised financial information of the material associate is as follows: The summarised financial information represents the amounts in the MFRS financial statements of the material associate and not the Group’s share of those amounts. (i) Summarised statement of financial position Wasatah Capital 2018 2017 RM’000 RM’000 Current assets 76,748 59,904 Non-current assets 119,217 144,246 Total assets 195,965 204,150 Current liabilities* 10,000 997 Non-current liabilities 2,706 2,215 Total liabilities 12,706 3,212 Net assets 183,259 200,938 * The net asset is net of zakat expenses which is not shared by non-Saudi shareholders in accordance with the regulations of Zakat department of Zakat & Income Tax as applicable in the Kingdom of Saudi Arabia. Therefore, the net assets will not representing the Group’s and the Bank’s share of net assets in Wasatah Capital that disclosed in Note 15(b)(iii) below. The difference will be the total zakat expenses that was fully borne by the Saudi shareholders.