Excel Force MSC Berhad Annual Report 2016

EXCEL FORCE MSC BERHAD ANNUAL REPORT 2016 110 Notes to the Financial Statements 31 December 2016 (cont’d) 33. DISPOSAL OF SUBSIDIARIES (i) On 31 May 2016, the Group disposed the entire shareholding of 130,000 ordinary shares of RM1.00 each in CMRA, a 52% owned subsidiary of the Company for a cash consideration of RM416,000. The analysis of disposal of CMRA is as follows: Group 2016 RM Property, plant and equipment 39,220 Product development costs 896,052 Receivables 316,783 Cash and bank balances 110,897 Payables (589,937) 773,015 Non-controlling interests (371,048) Total net assets disposed off 401,967 Less: Total disposal proceeds (416,000) Gain on disposal of subsidiary 14,033 Cash outflow arising from disposal Cash consideration representing cash inflow of the Company 416,000 Cash and cash equivalents of subsidiary disposed (110,897) Net cash inflow from disposal 305,103 The disposal of subsidiary had the following effect on the financial results of the Company: Company 2016 RM Total disposal proceeds 416,000 Less: Cost of investment in subsidiary (130,000) Gain on disposal of subsidiary 286,000