PRG Holdings Berhad Annual Report 2020

Annual Report 2020 117 11. INVESTMENTS IN SUBSIDIARIES (continued) (e) In the previous financial year: (continued) (iii) (continued) The fair value of the assets acquired and the liabilities assumed from the acquisition of MHGL and its subsidiaries are as follows: Fair value Acquiree’s recognised carrying on amount acquisition RM’000 RM’000 Property, plant and equipment 1,176 1,176 Right-of-use assets 496 496 Inventories 4,217 4,217 Trade receivables 5,280 5,280 Other receivables, deposits and prepayments 6,582 6,582 Cash and bank balances 1,038 1,038 Trade payables (2,109) (2,109) Other payables, deposits and accruals (3,463) (3,463) Lease liabilities (500) (500) Current tax liabilities (1,497) (1,497) Net identifiable assets 11,220 Add: Goodwill 62,118 Add: Intangible assets 5,502 Add: Profit guarantee 2,593 Less: Deferred tax liabilities (1,248) Share consideration 80,185 Net cash inflow of the Group on acquisition 1,038 (iv) On 13 December 2019, PRG Healthcare, a wholly-owned subsidiary of the Company had entered into a shares sale agreement with Dr. Bernard Chin Sze Piaw (“Dr Chin”) to acquire remaining 450 ordinary shares representing 45% of the issued share capital of PRGA, which was a joint venture to the Group, from Dr Chin for a purchase consideration of RM1.00. Dr Chin had on 16 December 2019 resigned as a Director in PRGA and pursuant to that, PRG Healthcare has obtained control of PRGA. Consequently, the investment in PRGA had been transferred from investment in joint venture to investments in subsidiaries. The details of deemed disposal of the joint venture is disclosed in Note 13 to the financial statements. Goodwill on consolidation arising from the acquisition of PRGA of RM66,000 was accounted for using the acquisition method of accounting. Notes to the Financial Statements 31 December 2020 cont’d