KENANGA ANNUAL REPORT 2019

196 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 14. INVESTMENTS IN ASSOCIATES Group Bank 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Unquoted shares at cost 88,644 88,644 68,435 68,435 Share of post acquisition losses (18,061) (22,611) - - Share of changes in other comprehensive loss (4,017) (6,295) - - Dividends received (102) (102) - - Foreign exchange differences 17,788 18,783 - - 84,252 78,419 68,435 68,435 Less: Accumulated impairment losses (19,610) (19,610) (12,200) (12,200) 64,642 58,809 56,235 56,235 Represented by: Share of net tangible assets 64,642 58,809 (a) Details of the associates are as follows: Name Place of incorporation Principal activities Effective equity interest 2019 % 2018 % 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 PLT. ^ 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(l). 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.