EXCEL FORCE MSC BERHAD Annual Report 2017

82 7. Investment in Subsidiary Companies (cont’d) (b) Incorporation of a subsidiary company On 21 November 2017, the Company incorporated a wholly-owned subsidiary company, ETSB with an initial share capital of RM2.00 comprising 2 ordinary shares. ETSB is principally engaged in investment holding. (c) Acquisition of equity interest from non-controlling interests On 31 March 2017, the Company acquired additional 40% equity interest in Insage (MSC) Sdn. Bhd. (“Insage”) for a cash consideration of RM1, thus increasing its equity interest from 60% to 100%. The effect of changes in equity interest that is attributable to the owners of the parent is as follows: Group 2017 2016 RM RM Carrying amount of non-controlling interests acquired (80,744) - Consideration paid to non-controlling interests (1) - Decrease in parent’s equity (80,745) - (d) Additional investment in a subsidiary company On 30 December 2017, Insage, a wholly-owned subsidiary company of the Company, increased its paid up share capital from 200,000 to 700,000 ordinary shares for a total cash consideration of RM500,000. The Company subscribed for the entire increase in ordinary shares of Insage. (e) Disposal of subsidiary companies (i) In the previous financial year, the Company disposed its entire shareholdings of 130,000 ordinary shares of RM1.00 each in Capital Market Risk Advisor Sdn. Bhd., a 52% owned subsidiary company of the Company for a cash consideration of RM416,000. (ii) In the previous financial year, the Company disposed its entire shareholding of 306,000 ordinary shares of RM1.00 each in Winvest Global Sdn. Bhd., a 51% owned subsidiary company of the Company for a cash consideration of RM66,738. Notes To The Financial Statements 31 December 2017 (cont’d)