NOTES TO THE FINANCIAL STATEMENTS
31 December 2014
(cont’d)
E X C E L F O R C E M S C B E R H A D • A N N U A L R E P O R T 2 0 1 4
106
35. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR
(a) On 13 November 2013, the Company signed a Sale and Purchase Agreement (‘SPA’) to acquire a
new long term leasehold land and building from Plaza 33 Sdn. Bhd. for a purchase consideration of
RM14,500,000. The Company paid a deposit of 10% of the purchase consideration, which amounted
to RM1,450,000 upon the signing of the SPA. The remaining purchase consideration for the new
long term leasehold land and building was financed by partly cash and a new term loan facility of
RM8,000,000 undertaken by the Company during the financial year. The acquisition of the new long
term leasehold land and building was completed on 11 February 2014.
On 25 July 2014, the Company completed the disposal of the previous long term leasehold land and
building of the Company for a cash consideration of RM5,000,000 which resulted in a gain on disposal
of RM1,392,668. The gain on disposal was accounted for in the current year’s financial statements of
the Group and of the Company.
(b) On 3 November 2014, theCompany acquired fifty onepercent (51%) equity interest comprising 306,000
ordinary shares of RM1.00 each of the issued and paid up ordinary share capital of Winvest Global
Sdn. Bhd. (‘Winvest’) for a cash consideration of RM306,000. Winvest is a company incorporated in
Malaysia which is engaged in research, development and commercialisation of share investment
solution and provision of investment education and training services to investors.
The tentative fair value of the identifiable assets and liabilities of Winvest as at the date of acquisition
are as follows:
RM
Property, plant and equipment
186,533
Trade and other receivables
212,129
Cash and bank balances
1,027,363
Trade and other payables
(877,005)
Deferred tax liabilities
(12,800)
Total identifiable assets
536,220
36. SIGNIFICANT EVENT SUBSEQUENT TO THE END OF THE REPORTING PERIOD
On 26 March 2015, the 52% owned subsidiary of the Group, Capital Market Risk Advisor Sdn. Bhd. (‘CMRA’)
was served with a Writ of Summon and Statement of Claim (‘SOC’) issued by the Kuala Lumpur High Court
Guaman No. 22IP-5-03/2015 by Risk-X Sdn. Bhd. (“RX”) (“the Plaintiff”) to restrain the selling and distributing
of their software product known as ORMS V6 without permission.
In the SOC, the Plaintiff is claiming to restrain CMRA fromusing, selling or trading computer program software
similar to computer program identified as ORMS V6 and to restrain CMRA from using ORMS V6 and declare
the “pass off” of the said program as that of CMRA. The Plaintiff has claimed for general damages to be
assessed and specific and exemplary damages without any quantification in their prayer and no interest
was claimed.
On 3 April 2015, a Notice of Application (Ex-parte) was served by the Plaintiff to restrain CMRA from using,
selling and dealing with ORMS V6 and to restrain three (3) ex-employees (‘Defendants’) of CMRA from
continuing their employment with CMRA.
The hearing of the Notice of Application has been fixed on 11 May 2015 and the Company will be defending
the suit.
