Excel Force MSC Berhad Annual Report 2016

EXCEL FORCE MSC BERHAD ANNUAL REPORT 2016 111 Notes to the Financial Statements 31 December 2016 (cont’d) 33. DISPOSAL OF SUBSIDIARIES (cont’d) (ii) On 15 September 2016, the Group disposed the entire shareholding of 360,000 ordinary shares of RM1.00 each in Winvest, a 51% owned subsidiary of the Company for a cash consideration of RM66,738. The analysis of disposal of Winvest is as follows: Group 2016 RM Property, plant and equipment 101,628 Receivables 116,086 Cash and bank balances 129,662 Payables (387,955) (40,579) Goodwill 32,528 Non-controlling interests 19,884 Total net assets disposed off 11,833 Less: Total disposal proceeds (66,738) Gain on disposal of subsidiary 54,905 Cash outflow arising from disposal Cash consideration representing cash inflow of the Company 66,738 Cash and cash equivalents of subsidiary disposed (129,662) Net cash outflow from disposal (62,924) The disposal of subsidiary had the following effect on the financial results of the Company: Company 2016 RM Total disposal proceeds 66,738 Less: Cost of investment in subsidiary (306,000) Loss on disposal of subsidiary (239,262) 34. EVENT SUBSEQUENT TO THE END OF REPORTING PERIOD On 31 March 2017, the Company has entered into Share Sale Agreement with its subsidiary, Insage (MSC) Sdn. Bhd. (‘Insage’) to acquire the entire shareholdings of 80,000 ordinary shares of RM1.00 for cash consideration of RM1.00. Upon completion, Insage will be 100% wholly owned subsidiary of the Company.