DESTINI AR 2017

5. Investment in Subsidiaries (Cont’d) (b) Acquisition of subsidiaries (Cont’d) Goodwill arising from business combination (Cont’d) The goodwill recognised on the acquisition is attributable mainly to the skills and technical talent of the acquired business’s work force and the synergies expected to be achieved from integrating the subsidiaries into the Group’s existing business. Acquisition-related costs The Group incurred acquisition-related costs of RM101,000 (2016: RM86,000) related to external legal fees and due diligence costs. The expenses have been included in administrative expenses in the profit or loss. (c) Disposal of a subsidiary On 29 December 2017, the Company entered into a share sale agreement (“SSA”) with a third party for disposal of its entire 51.92% equity interest in its subsidiary, Green Pluslink Sdn Bhd (“GPSB”), comprising of 2,700,000 ordinary shares in GPSB for a total cash consideration of RM4,400,000. RM Property, plant and equipment 6,031,284 Inventories 149,621 Trade and other receivables 433,240 Cash and bank balances 223,240 Trade and other payables (119,167) Amount due to holding company (10,571,041) Amount due to related companies (1,749,857) Finance lease liabilities (94,736) Net liabilities (5,697,416) Add: Non-controlling interests 2,885,761 Total net liabilities disposed (2,811,655) Gain on disposal 7,211,655 Proceeds from disposal 4,400,000 Less: Cash and bank balances disposed (223,240) Net cash inflows from disposal 4,176,760 There was no disposal in the previous financial year. There are no significant restrictions on the ability of the subsidiaries to transfer funds to the Group in the form of cash dividends or repayment of loans and advances. Generally, for all subsidiaries which are not wholly-owned by the Company, non-controlling shareholders hold protective rights restricting the Company’s ability to use the assets of the subsidiaries and settle the liabilities of the Group, unless approval is obtained from non-controlling shareholders. 130 DESTINI BERHAD Financial Statements Notes to the 31 December 2017