MKH Annual Report 2019

162 A N N U A L R E P O R T 2 0 1 9 14. INVESTMENT IN SUBSIDIARIES (CONT’D) Ω In the previous financial year, the Company received bonus shares of 10,000,000 ordinary shares from Metro Kajang Construction Sdn. Bhd. (“MKCSB”). On 5 November 2018, MKCSB reduced its ordinary share capital from RM20,000,000 to RM2,000,000 via cancellation of 18,000,000 ordinary shares comprising 7,759,506 cash and 10,240,494 non-cash allotment. This has resulted the Company recognised a gain on investment in subsidiary arising from realisation of bonus share of RM10,000,000 in the current year. * In the previous 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 previous financial year. ∞ In the previous financial year, the Company acquired the subsidiary for a total cash consideration of RM2. # Subsidiaries audited by firms of auditors other than Deloitte PLT. @ The investment in shares have been pledged as security for credit facilities granted to subsidiaries as disclosed in Note 29. ! The company is not audited by Deloitte PLT. As the company is dormant, no statutory audit is required under the Australian Corporations Act. Redeemable Convertible Preference Shares The salient features of the Redeemable Convertible Preference Shares (“RCPS”) of the subsidiaries are as follows: (a) Dividends The holder has the right to be paid, out of such profits of the subsidiary available for distribution determined by the directors at their discretion to be distributed in respect of each financial year or other accounting period of the subsidiary, a dividend at a rate as the Board of Directors shall determine from time to time. (b) Voting rights The RCPS carry rights to vote at any general meeting of the subsidiary if: (i) any resolution is proposed for the winding up of the subsidiary, in which case the holder of the RCPS may only then vote at such general meeting on the election of a chairman, any motion for adjournment and the resolution for winding up; or (ii) the meeting is convened for the purpose of considering the reduction of the capital of the subsidiary; or (iii) the meeting is relating to any dividend or part thereof unpaid on any RCPS; or NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2019