Dagang NeXchange Berhad Annual Report 2018

35. SIGNIFICANT EVENTS Significant events during and subsequent to the financial year are as follows:- (i) On 27 February 2018, a subsidiary of the Company incorporated a subsidiary known as PT Dagang Net Indonesia (“PT Dagang”). The issued share capital of PT Dagang is IDR2,500,000,000 (RM708,321) comprising 2,500 ordinary shares. The subsidiary had subscribed for 99% of the issued and paid up capital of PT Dagang in cash and the remaining 1% by Muhammad Suryadi, a citizen of Indonesia. (ii) On 24 April 2018, a subsidiary of the Company acquired 800,000 ordinary shares representing 80% equity interest in DNeXPORT Sdn. Bhd. (“DNeXPORT”) from the Company, for a total cash consideration of RM800,000 (“Internal Re-organisation”). (iii) On 4 May 2018, a 51% owned subsidiary, DNeX RFID Sdn. Bhd. (“DNeX RFID”) accepted a letter of award of sub-contract works for the TnG eWallet for Local and Foreign Vehicles. (iv) On 14 August 2018, a subsidiary of the Company accepted the award of sub-contract works for hardware equipment and ICT facilities. (v) On 28 August 2018, a 51% owned subsidiary, DNeX Telco Services Sdn. Bhd. (“DNeX Telco”) accepted a letter of award for the IGG Marine Installation Subcontract. (vi) On 17 October 2018, DNeX Telco accepted a letter of award for the “CS KDDI Pacific Link” Segment 13 & 15 Cable Repair in Indonesia Water. DNeX Telco also on the same date, accepted a letter of award for the “CS KDDI Pacific Link” Sea US Cable Repair in Davao – Philippines. (vii) On 23 October 2018, a 80% owned subsidiary, DNeX Oilfield Services Sdn. Bhd. (“DNeX Oilfield”), entered into a service contract with Hess Exploration and Production Malaysia B.V. for the provision of solid expandable tubulars for North Malay Basin. (viii) On 26 October 2018, a deemed 60% owned subsidiary, Innovation Associates Consulting Sdn. Bhd. (“IAC”) received a letter of award from the Accountant General’s Department Malaysia and subsequently accepted a contract named “Perkhidmatan Penyenggaraan Perkakasan, Peralatan Rangkaian dan Perisian iGFMAS” for a contract sum of RM59,360,000 (inclusive of 6% Sales and Services Tax). (ix) On 21 November 2018, a 51% owned subsidiary of the Company, Genaxis Group Sdn. Bhd. (formerly known as Genaxis Sdn. Bhd.), entered into a Joint Venture and Shareholders Agreement with Agorai Pte. Ltd. and Dynaniaga Sdn. Bhd. to regulate their relationship with each other in carrying out the business of a consultancy and advisory practice focused on artificial intelligence services and such other related businesses which the board of directors of the JV Company may approve from time to time. (x) On 22 November 2018, a wholly-owned subsidiary of the Company incorporated a wholly-owned subsidiary, DNeX Clean Utilities Sdn. Bhd. (“DCU”) by subscribing for 100,000 ordinary shares representing the entire issued and paid up capital of DCU. 179 Annual Report 2018 Notes to the Financial Statements (CONTINUED) FINANCIAL STATEMENTS