DESTINI Annual Report 2018

5. Investment in Subsidiaries (Cont’d) (b) Acquisition of subsidiaries During the financial year (Cont’d) Fair value of identifiable assets acquired and liabilities assumed Net cash inflows arising from acquisition of subsidiaries Goodwill arising from business combination 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 Nil RM101,000 related to external legal fees and due diligence costs. The expenses have been included in administrative expenses in the profit or loss. 2017 RM Property, plant and equipment 1,099,214 Inventories 649,364 Trade and other receivables 3,097,845 Cash and bank balances 8,230,270 Trade and other payables (21,914,237) Finance lease liabilities (201,630) Total identifiable net liabilities (9,039,174) 2017 RM Purchase consideration settled in cash (5,500,012) Cash and cash equivalents of subsidiaries acquired 8,230,270 2,730,258 2017 RM Fair value of consideration transferred via cash 5,500,012 Non-controlling interests, based on their proportionate interest in the recognised amounts of the assets and liabilities of the acquiree (2,711,755) Fair value of identifiable assets acquired and liabilities assumed 9,039,174 Goodwill 11,827,431 DESTINI BERHAD ANNUAL REPORT 2018 149