Yinson Annual Report 2018

Notes to the Financial Statements (Cont’d) For the financial year ended 31 January 2018 47. DISCONTINUED OPERATIONS (CONTINUED) Subsequently on 28 September 2015, YHB entered into a conditional share sale agreement (“SSA”) to divest its entire equity interest in the Target Subsidiaries to Liannex Labuan. At the request of Liannex Labuan, it was agreed for Liannex Labuan to novate all its liabilities, obligations, duties, rights, title, benefit, interests, covenants and undertaking under the SSA to Liannex Asia Pacific Sdn Bhd (“Liannex Asia Pacific”) via a novation agreement entered into between YHB, Liannex Labuan and Liannex Asia Pacific on 15 July 2016. This has resulted in Liannex Asia Pacific being the acquirer of the Target Subsidiaries. Pursuant to the Completion Audit/Review in October 2016, a net loss of RM3.51 million was recognised at Group level in the income statements in the previous financial year. Results of the discontinued operations In the financial year ended 31 January 2016, the Target Subsidiaries were classified as a disposal group held for sale and as discontinued operations. The disposal was completed on 26 July 2016 and YHB ceased to recognise the results of the disposal group upon the date of completion. The results of the disposal group in the previous financial year are presented below. Group 2017 Note RM’000 Revenue 220,966 Expenses (211,680) Finance costs (7,053) Share of results of associate 21 656 Profit before tax from discontinued operations^ 2,889 Income tax expense (Note 13) (607) Profit from discontinued operations 2,282 ^ The following items have been charged/(credited) in arriving profit before tax from discontinued operation: Group 2017 RM’000 Bad debts recovered (202) Impairment loss on trade receivables 1,426 Reversal of write down of inventories (577) Unrealised loss on foreign exchange 209 Gain on sale of other investments 196 Property, plant and equipment written off 49 Operating leases - Minimum lease payment for land and buildings 127 Fee for statutory audits - Other auditors 73 Interest income (167) Employee benefits expenses 3,948 186 Yinson Holdings Berhad Annual Report 2018 Accountability