MKH Annual Report 2018

192 MKH Berhad Annual Report 2018 37. SIGNIFICANT EVENT SUBSEQUENT TO THE FINANCIAL YEAR END (a) On 26 October 2018, Perkasa Bernas (M) Sdn. Bhd. (“PBSB”), a wholly owned subsidiary of the Company acquired 4 ordinary shares representing 40% of the equity interest of Daksina Harta Sdn. Bhd. (“DHSB”), for a cash consideration of RM5,000,000. The Group has on 9 November 2018 completed the acquisition. As a result, DHSB become an associate of PBSB and of the Group; (b) On 19 December 2018, the Company acquired 1 ordinary share representing 100% of the equity interest of Nexus Starship Sdn. Bhd. (“NSSB”), for a cash consideration of RM1. As a result, NSSB became a 100% owned subsidiary of the Company; and (c) On 20 December 2018, NSSB, a wholly-owned subsidiary of the Company acquired 1 ordinary share representing 100% of the equity interest of Quantum Density Sdn. Bhd. (“QDSB”), for a cash consideration of RM1. As a result, QDSB became a 100% owned subsidiary of NSSB and of the Group. Subsequently, on 26 December 2018, NSSB entered into a Subscription and Shareholders’ Agreement (“SSA”) with Usaha Nusantara Sdn. Bhd. for the subscription of shares in QDSB. Upon completion of the SSA, QDSB will become a 50.0004% owned subsidiary of NSSB and of the Group. 38. OPERATING LEASE ARRANGEMENTS - THE GROUP AS LESSOR The Group has entered into property leases on its investment properties, which comprise freehold and leasehold land and buildings, with non-cancellable lease terms ranging from 12 to 30 years. The lease contracts contain fixed upward revision of the rental charges over the lease period. Future minimum rental receivables under non-cancellable operating leases at the reporting date but not recognised as receivables, are as follows: The Group 2018 2017 RM RM Not later than 1 year 4,008,356 3,967,901 Later than 1 year but not later than 5 years 17,620,009 17,176,433 Later than 5 years 40,481,302 44,933,234 62,109,667 66,077,568 FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2018 NOTES TO THE FINANCIAL STATEMENTS