GHL System Berhad Annual Report 2020

126 G H L S y s t e m S B e r h a d 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 16. INVESTMENTS IN SUBSIDIARIES (cont’d) (g) Acquisition of subsidiary during the financial year During the financial year, GHL Asia Pacific Limited had subscribed for 103,995 ordinary shares in GHL Philippines Financing Services for a consideration of RM835,101. GHL Philippines Financing Services became a wholly owned indirect subsidiary of the Company. (h) Acquisition of subsidiary during the financial year ended 31 December 2019 (i) Speed Pay On 22 January 2019, GAPL acquired 51% equity interest in Speed Pay comprising 1,868,702 ordinary share for a total consideration of RM8,344,620. Subsequent to the acquisition, Speed Pay became an indirect subsidiary of the Company. The fair values of the identifiable assets and liabilities acquired and the effects on cash flows arising from the acquisitions were as follows: 2019 At date of acquisition Note RM Property, plant and equipment 12 2,462,428 Trade and other receivables 209,273 Cash and bank balances 3,071,001 5,742,702 Trade and other payables (712,954) Total identifiable net assets 5,029,748 Non-controlling interests (8,017,380) Goodwill arising from acquisition 15 11,332,252 Purchase consideration 8,344,620 Cash and cash equivalents of the subsidiaries acquired (3,071,001) Net cash outflow of the Group on acquisition 5,273,619 If the acquisition occurred on 1 January 2019, revenue and profit after tax of the Group for the financial year ended 31 December 2019 would been RM347,707,438 and RM26,716,346 respectively. (ii) GHL Electronic Payment Inc. (“GEP”) In the previous financial year, GHL ePayments Sdn. Bhd. had subscribed for 107,995 ordinary shares in GEP for a consideration of RM845,158. GEP became a wholly owned indirect subsidiary of the Company.