CAHYA MATA SARAWAK ANNUAL REPORT 2016

www.cmsb .com.my Cahya Mata Sarawak Berhad 150 Section 07 Financial StatementS NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2016 20. INVESTMENTS IN ASSOCIATES (CONT'D.) (d) Acquisition of an associate On 23 October 2015, the Group and the Company completed the acquisition of a new associate, Sacofa Sdn. Bhd. (“Sacofa”), which entailed the acquisition of 42,435,817 ordinary shares representing 50% equity interest of the issued and paid up capital in Sacofa Sdn. Bhd. for a total cash consideration of RM186,790,429. The acquistion of Sacofawas accounted for using the provisional values which resulted in a provisional surplus of the Group’s share of the fair value of net identifiable assets of Sacofa over the purchase consideration as reflected in the share of associates’ results in the previous financial year. A purchase price allocation (“PPA”) exercise on Sacofa’s identifiable assets and liabilities was carried out to determine the share of net fair value as at the acquisition date. The PPA exercise was completed during the year and there is no change to the provisional values accounted for as at the acquisition date. (e) Material associates The following table summarises the financial information in respect of each of the Group’s material associates. The summarised financial information represents the amounts in the MFRS financial statements of the associates and not the Group’s share of those amounts. Kenanga Investment Bank Berhad Group KKB Engineering Berhad Group OM Materials (Sarawak) Sdn. Bhd. Sacofa Sdn. Bhd. Group 2016 RM’000 RM’000 RM’000 RM’000 As at 31 December Non-current assets 548,113 146,992 1,922,585 508,254 Current assets 5,521,667 184,836 1,058,787 257,570 Current liabilities (5,173,588) (29,650) (502,098) (178,579) Non-current liabilities - (5,299) (2,133,857) (72,005) Net assets 896,192 296,879 345,417 515,240 Year ended 31 December Revenue 585,317 103,111 481,554 194,769 Profit/(loss) for the year 20,207 (5,743) (257,645) 73,902 Other comprehensive income 11,254 - 220,434 (97) Total comprehensive income 31,461 (5,743) (37,211) 73,805 Dividends received by the Group during the year - 2,068 - -