Background Image
Table of Contents Table of Contents
Previous Page  187 / 234 Next Page
Information
Show Menu
Previous Page 187 / 234 Next Page
Page Background

Annual Report 2014 | S P SETIA BERHAD GROUP | 185

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2014

V. FINANCIAL STATEMENTS

40. CHANGES INTHE COMPOSITION OFTHE GROUP

(a) Acquisition of subsidiary

On 17 September 2014, the Company acquired the entire issued share capital comprising 2 ordinary shares of RM1 each of KL

East Sdn Bhd for a total cash consideration of RM2. The subsidiary had not commenced operations since its incorporation. The

acquisition was completed in current year and had no significant impact on the Group’s financial position as at the end of the

financial year.

(b) Disposal of subsidiary

On 27 October 2014, the Company disposed of its entire equity interest in S P Setia Security Services Sdn Bhd (“SPSSS”),

comprising 153,000 ordinary shares of RM1.00 each for a total cash consideration of RM278,000. Accordingly, SPSSS ceased to be

a 51% subsidiary of the Company. The Group recognised a net loss of RM146,000 arising from the disposal of the subsidiary. No

disclosures are made on the effects of this disposal as the financial impact is immaterial to the financial position of the Group.

(c) Derecognition of subsidiaries

During the financial year, the Company liquidated the following subsidiaries:

- Aneka Baru (M) Sdn Bhd (54% equity interest)

- Yunikhas Sdn Bhd (54% equity interest)

- Suharta Development Sdn Bhd (31% equity interest)

The Group recognises a net loss of RM2,215,000 arising from derecognition of the subsidiaries. These subsidiaries were inactive

and accordingly, no disclosures are made on the effects of derecognition as the financial impact is immaterial to the financial position

of the Group.

(d) Consolidation of two additional subsidiaries

Upon adopting of FRS 10 in the current financial year, the Group has consolidated two additional subsidiaries namely S P Setia

Foundation and Setia Badminton Academy from its inception. The consolidation of these subsidiaries has no material financial

impact on the financial position, financial performance and cash flow of the Group.