SIGNIFICANT EVENT SUBSEQUENT TO THE BALANCE SHEET DATE
On 18 November 2010, the Group through its wholly-owned subsidiary company, DEF Sdn. Bhd., subscribed for the entire ordinary shares of GHI Sdn. BHd., for a total cash consideration of RM1,000, resulting in the latter becoming a wholly-owned subsidiary company of the Group.
SIGNIFICANT POST BALANCE SHEET EVENT
On 12 November 2010, the Company entered into a Memorandum of Understanding (“MOU”) with DEF Sdn. Bhd. (a trade debtor of the Company) to extinguish/fully settle trade debts owed to the Company by DEF Sdn. Bhd. and GHI Sdn. Bhd. (a related party of DEF Sdn. Bhd.) totalling RM32,000,000 as at the end of the financial year, via a proposed contra/set-off of properties, comprising the relevant unsold units of commercial shop lots, owned by DEF Sdn. Bhd.. DEF Sdn. Bhd. is in the process of conducting a separate settlement agreements with GHI Sdn. Bhd. relating to this exercise.
The Company has appointed a registered valuer to conduct a valuation exercise on the said properties and the outcome of the valuation was that the preliminary combined indicative values of the relevant unsold units owned by DEF Sdn. Bhd. was higher than the combined debts owed to the Company by DEF Sdn. Bhd., GHI Sdn. Bhd. and XYZ Sdn. Bhd..
This corporate exercise will require the Company’s members’ extraordinary general meeting (“EGM”) to be convened and the EGM is expected to be held in January 2011. The corporate exercise is expected to be completed within 3 months from the date of this report.