15. Investments in subsidiaries (cont’d.) a. (iv) Loss from remeasurement of previously held interest in the joint venture on the date of acquisition RM’000 Carrying amount of equity interests previously owned at the date of acquisition 273,501 Less: Fair value of equity interests previously owned at the date of acquisition (249,201) Loss from remeasurement of previously held interest in the joint venture 24,300 Gain on acquisition of subsidiary RM’000 Purchase consideration satisfied in cash 238,565 Fair value of equity interests previously owned at the date of acquisition, net of intra-group elimination 227,149 465,714 Less: Fair value of net identifiable assets (498,401) Gain on acquisition of subsidiary (32,687) Impact of acquisition in profit or loss In the current financial year, Paramount contributed revenue of RM37,957,000 and a net profit of RM16,963,000 to the consolidated net profit for the year. If the acquisition had occurred on 1 January 2016, management estimates that the Group’s revenue and profit for the year would have increased by RM65,204,000 and RM41,011,000 respectively. In determining these amounts, management has assumed that the fair value adjustments that arose on the date of acquisition would have been the same had the acquisition occurred on 1 January 2016. b. In the previous financial year, the Corporation wound up its subsidiary, Bunga Kasturi (L) Private Limited (“BKPL”) which ceased operation and became dormant on 22 March 2011. The winding up resulted in a capital distribution of RM57,221,000 which settled the amount due to BKPL. c. The Corporation had on 24 October 2016 completed the disposal of its entire equity interest in MISC Integrated Logistics Sdn. Bhd. (“MILS”), a wholly-owned subsidiary of the Group, to Swift Haulage Sdn. Bhd. (“SWIFT”) for a total consideration of RM357,989,000. As a result, the Group and the Corporation recognised a gain on disposal of RM73,635,000 and RM29,983,000 respectively in the current financial year. Accordingly, MILS ceased to be a subsidiary of the Corporation from the said date. The net profit contributed by MILS from 1 January 2016 to the date of disposal is not material to the consolidated net profit of the Group for the year. Financial Statements 241
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