Eng - IOI Group

Notes To The Financial Statements cont’d41. ACQUISITION OF SUBSIDIARIES cont’d41.2 Pan-Century Edible Oils Sdn Bhd and Pan-Century Oleochemicals Sdn Bhd cont’dThe acquisition had the following effects on the Group’s assets and liabilities on acquisition date:PreacquisitionFair Recognisedcarrying value values onamount adjustments acquisitionRM’000 RM’000 RM’000Property, plant and equipment 222,687 152,980 375,667Prepaid lease payments 14,596 11,404 26,000Inventories 86,073 - 86,073Trade and other receivables 121,080 - 121,080Cash and cash equivalents (3,733) - (3,733)Trade and other payables (82,851) - (82,851)Short term borrowings (109,156) - (109,156)Long term borrowings (15,408) - (15,408)Deferred tax liabilities (9,282) (42,740) (52,022)Long term liabilities (7,354) - (7,354)Net identifiable assets 216,652 121,644 338,296Goodwill on consolidation 86,070Purchase consideration discharged by cash 424,366Add: cash and cash equivalents of subsidiaries acquired 3,733Cash outflow on acquisition of subsidiaries 428,099The effect of the above acquisition on the financial results of the Group for the current financial year is as follows:RM’000Operating profit 14,875Net interest expense (1,953)Profit before taxation 12,922Taxation 260Increase in Group’s net profit 13,182219ANNUAL REPORT 2007IOI Corporation Berhad