MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 231 Financial Statements 15. INVESTMENTS IN SUBSIDIARIES (CONT'D.) (b) Disposal of a subsidiary 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 previous 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 was not material to the consolidated net profit of the Group in the previous financial year. The net effect of the above disposal to the Group's cash flows and carrying amount of assets and liabilities disposed are as follows: Carrying amount at disposal date RM'000 Property, plant and equipment 222,272 Non-current assets 74,967 Current assets 230,622 Current liabilities (223,778) Non-current liabilities (19,729) Net assets disposed 284,354 Gain on disposal of subsidiary RM'000 Sale consideration 357,989 Net assets disposed (284,354) Gain on disposal of subsidiary 73,635 The effect of the disposal on cash flows is as follows: RM'000 Sale consideration received 324,000 Less: Cash and cash equivalents disposed (32,494) Net cash flow on disposal 291,506 Details of the subsidiaries are disclosed in Note 39.