Excel Force MSC Berhad Annual Report 2015

NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (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 5 110 34. ACQUISITIONS OF SUBSIDIARIES (continued) The fair value of the identifiable assets and liabilities of Winvest as at the date of acquisition is as follows: 2014 RM Property, plant and equipment (Note 7) 186,533 Trade and other receivables 212,129 Cash and bank balances 1,027,363 Trade and other payables (877,005) Deferred tax liabilities (Note 21) (12,800) Total identifiable assets 536,220 Less: Non-controlling interests (262,748) Group’s share of net assets (at 51%) 273,472 Add: Goodwill (Note 9) 32,528 Total cost of acquisition 306,000 Less: Cash and bank balances of subsidiary acquired (1,027,363) Net cash inflow of the Group on acquisition 721,363 The acquisition had no material impact to the Group’s financial statements. 35. SIGNIFICANT EVENT DURING THE FINANCIAL YEAR 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 distribution 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. Pending the full hearing of the Plaintiff’s claim, on 3 April 2015, a Notice of Application for interlocutory injunction 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. On 26 June 2015, the Kuala Lumpur High Court dismissed the Plaintiff’s application for interlocutory injunction. The Plaintiff’s claim was heard on 10 September 2015, 30 September 2015, 21 October 2015, 26 October 2015 and 22 January 2016 whereby witnesses were called and evidence adduced in Court. On 24 February 2016, the Kuala Lumpur High Court dismissed the Plaintiff’s claim with costs of RM80,000 awarded to the Defendants. On 2 March 2016, CMRA was served with a Notice of Appeal by the Plaintiff to the Court of Appeal against the Kuala Lumpur High Court’s decision dismissing the Plaintiff’s claim with costs. The Court of Appeal will fixed a hearing date after the filing of the Record of Appeal which is to be filed within eight (8) weeks from 2 March 2016. The Court of Appeal has also fixed on 28 April 2016 for case management.