cont'd - KNM Steel Sdn Bhd

KNM GROUP BERHAD I Annual Report 2012127Notes to the Financial Statements (cont’d)32. Acquisition of subsidiary and non-controlling interests2012On 31 October 2012, the Group acquired 100% interest in Poplar Investments Limited (“PIL”) for a cashconsideration of RM128,952,000. The principal activities of the subsidiary acquired are shown in Note 31of the financial statements. Had the acquisition occurred on 1 January 2012, the acquisition would have nosignificant effect to the consolidated revenue and consolidated profit for the year.The acquisition had the following effect on the Group’s assets and liabilities on acquisition date:Pre-acquisition Fair Recognisedcarrying value values onamounts adjustments acquisitionsRM’000 RM’000 RM’000Property, plant and equipment (Note 3) 128,952 – 128,952Payables and accruals (87,513) – (87,513)Net identifiable assets and liabilities 41,439 – 41,439Consideration paid, satisfied in cash 41,439Settlement of liabilities 87,513Net cash outflow 128,9522011On 30 December 2011, the Group acquired additional 58% interest in KNM-DP Fabricators Sdn. Bhd. and itssubsidiary for a cash consideration of RM949,000, increasing its ownership from 28% to 86%.The principal activities of the subsidiaries acquired are shown in Note 31 of the financial statements. Had theacquisition occurred on 1 January 2011, the acquisition would have no significant effect to the consolidatedrevenue and consolidated profit for the year.The acquisition had the following effect on the Group’s assets and liabilities on acquisition date:Pre-acquisition Fair Recognisedcarrying value values onamounts adjustments acquisitionsRM’000 RM’000 RM’000Property, plant and equipment (Note 3) 2 – 2Trade and other receivables 17 – 17Cash and cash equivalents 9 – 9Tax recoverable 4 – 4Payables and accruals (3,148) – (3,148)Net identifiable assets and liabilities (3,116) – (3,116)Non-controlling interest 1,271Goodwill on acquisition (Note 4) 2,794Consideration paid, satisfied in cash 949Cash acquired (9)Net cash outflow 940