MKH Annual Report 2017

30. ACQUISITION OF SUBSIDIARIES (continued) In the previous financial year (continued) (b) During the financial year, the Company completed the purchase price allocation exercise to determine the fair values assigned to the subsidiary’s identifiable assets and liabilities acquired in the previous financial year pursuant to the requirements of MFRS 3: Business Combinations. Upon finalisation of this exercise, the resulting on consolidation was adjusted accordingly as follows: The Group Fair Provisional Fair value value fair value adjustment RM RM RM Property, plant and equipments (Note 10) 2,505,288 2,505,288 - Biological assets (Note 12) 52,950,000 72,411,849 (19,461,849) Prepaid lease payments (Note 13) 20,580,000 1,118,151 19,461,849 Inventories 878,788 878,788 - Receivables, deposits and prepayments 266,895 266,895 - Cash and bank balances 2,371,550 2,371,550 - Deferred tax liabilities (Note 18) (7,240,563) (7,240,563) - Provisions (Note 26) (418,548) (418,548) - Payables and accruals (12,877,978) (12,877,978) - Loans and borrowings (38,437,817) (38,437,817) - Total identifiable net assets 20,577,615 20,577,615 - Non-controlling interests (5,144,404) (5,144,404) - Equity attributable to owners of the parent 15,433,211 15,433,211 - Gain on bargain purchase on acquisition included in other income (433,211) (433,211) - Total purchase consideration to be paid in cash 15,000,000 15,000,000 - Cash and bank balances of subsidiary acquired (2,371,550) (2,371,550) - Purchase consideration outstanding (13,500,000) (13,500,000) - Acquisition of subsidiary, net of cash acquired (871,550) (871,550) - (c) On 16 June 2016, the Company acquired 100% equity interest in Metro Emart Sdn. Bhd. for a cash consideration of RM2. The said acquisition did not give rise to a material impact on the financial statements of the Group. Notes to the Financial Statements For the Financial Year ended 30 September 2017 181 MKH Berhad • Annual Report 2017