NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2022 (cont’d) 8. Investment in subsidiaries (CONT’D) 2021 (cont’d) Incorporation of subsidiaries (cont’d) (f) On 15 November 2021, MYEGC incorporated a wholly-owned subsidiary with 100 ordinary shares, representing 100% of equity interest in Beli Mart for a total consideration of RM100. Acquisition of subsidiaries (i) Acquisition of NFT Labuan, NFT Capital and NFT Creative On 1 May 2021, GVSB acquired 100,000 ordinary shares, representing 100% of equity interests in NFT Creative for a total consideration of RM1,250,000. As part of the restructuring of the acquisition, GVSB acquired 100 ordinary shares representing 100% equity interest of both NFT Labuan and NFT Capital on 18 November 2021 and 13 September 2021. The net assets of NFT Creative as at acquisition date is as follows:- Group 2021 RM’000 Equipment 21 Trade receivables 7 Other receivable # Cash and bank balances 7 Other payables (434) Net identifiable liabilities (399) Add: Goodwill on consolidation 1,548 1,149 Less: Cash and bank balances of subsidiaries acquired (7) 1,142 # - represents an amount less than RM1,000 The goodwill is attributable mainly to control premium paid. In addition, the purchase consideration also included benefits derived from the expected revenue growth of the subsidiaries, its future market development as well as a customer list. These benefit are not recognised separately from goodwill because they do not meet the recognition criteria for identifiable intangible assets. The goodwill is not deductible for tax purpose. The subsidiaries have contributed revenue of RM20,250 and loss after taxation of RM30,843,676 to the Group since the date of acquisition. If the acquisition was effective at the beginning of the current financial year, the Group’s revenue and profit after taxation for the current financial year would have been RM721,877,821 and RM316,657,476. Increases in stake of subsidiaries (i) On 20 April 2021, EGSB subscribed for an additional 79,998 ordinary shares, representing 80% of the equity interest in MYEG TwoCar for a total consideration of RM79,998. (ii) On 1 July 2021, MYEGM subscribed for an additional 508 ordinary shares, representing 51% of the equity interest in MYEG VAC for a total consideration of RM508. 198
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