MKH Annual Report 2018

143 MKH Berhad Annual Report 2018 15. INVESTMENT IN SUBSIDIARIES (Cont’d) Proportion of ownership interest and voting power Country of held by the Group Name of subsidiary incorporation Principal activities 2018 2017 Subsidiary of Kajang Resources Corporation Sdn. Bhd. MKH Property Ventures Malaysia Property development 51% - Sdn. Bhd. (Note 30) # Subsidiaries audited by firms of auditors other than Deloitte PLT. ∞ During the financial year, the Company acquired the subsidiary for a total cash consideration of RM2. € During the financial year, the Company subscribed for additional 26,600,000 (2017: Nil) new ordinary shares in Detik Merdu Sdn. Bhd., 1,000,000 (2017: Nil) new ordinary shares in Srijang Indah Sdn. Bhd., 3,495,394 (2017: 940,606) new ordinary shares in Srijang Kemajuan Sdn. Bhd., 11,155,327 (2017: 28,226,373) new ordinary shares in Suria Villa Sdn. Bhd. and Nil (2017: 2,500,000) new ordinary shares in Stand Allied Corporation Sdn. Bhd. * During the financial year, the Company received bonus shares of 18,000,000 ordinary shares from Pelangi Semenyih Sdn. Bhd. (“PSSB”). On 28 September 2018, PSSB reduced its share capital from RM23,000,000 to RM2,000,000 via cancellation of 21,000,000 ordinary shares comprising 3,000,000 cash and 18,000,000 non- cash allotment. This has resulted the Company recognised a gain on investment in subsidiary arising from realisation of bonus share of RM18,000,000 in the current year. ~ In the previous financial year, the Company acquired the subsidiaries for a total cash consideration of AUS100 and RM2 respectively. Ω In the previous financial year, the Company subscribed for 508 new ordinary shares in the subsidiary, representing 51% of the total allotment of 998 new ordinary shares. @ The investment in shares have been pledged as security for credit facilities granted to subsidiaries as disclosed in Note 28. ! The company is not audited by Deloitte PLT. As the company is dormant, no statutory audit is required under the Australian Corporations Act. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2018