84 MSC BERHAD Notes to the Financial Statements (cont’d) 7. Investment in Subsidiary Companies (cont’d) (e) Acquisition of non-controlling interests Xifu Sdn. Bhd. In previous financial year, the Company acquired additional 30% equity interest in Xifu Sdn. Bhd. (“Xifu”) for RM1 in cash, increasing its ownership from 70% to 100%. The carrying amount of Xifu’s net assets in the Group’s financial statements on the date of acquisition was RM702,678. The Group recognised a decrease in non-controlling interest of RM210,803 and an increase in retained earnings of RM210,802. The effect of changes in the equity interest in Xifu Sdn. Bhd. that is attributable to owners of the Company: RM Carrying amount of non-controlling interest acquired 210,803 Consideration paid to non-controlling interest (1) Increase in parent’s equity 210,802 (f) Material partly-owned subsidiary company Set out below are the Group’s subsidiary company that has material non-controlling interests: Name of company Profit/(Loss) allocated to non-controlling interest Accumulated non-controlling interest 2024 2023 2024 2023 RM RM RM RM Xifu Sdn. Bhd. - (334,287) - - (g) Material accounting policy information Investment in subsidiaries are measured in the Company’s statements of financial position at cost less accumulated impairment losses. 8. Investment in an Associate Group Company 2024 2023 2024 2023 RM RM RM RM At cost Unquoted shares in Malaysia 300,000 300,000 - 300,000 Share of post-acquisition reserve 58,682 18,048 - - Balance at the end of the financial year/period 358,682 318,048 - 300,000 On 21 December 2023, as part of implementation of Corporate Reorganisation Exercise mentioned in Note 7(c), the Company has transferred 28.57% of issued share capital in Millapp Sdn. Bhd. to E2 Trade Sdn. Bhd., a wholly-owned subsidiary company. Upon completion of the transfer, Millapp become an associate of E2 Trade Sdn. Bhd.. The changes in ownership above did not result any changes in equity interest at group level.
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