FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 268 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 22 INVESTMENT IN SUBSIDIARIES (CONTINUED) (c) Incorporation, acquisitions and disposal of subsidiaries in previous financial year (continued) (i) The effects of the acquisition of FGVCO is as follows: (continued) The effect of the acquisition of FGVCO on the financial results of the Group in previous financial year had the acquisition taken effect at the beginning of the previous financial year is shown below: RM'000 Revenue 292,046 Cost of sales (297,986) Gross loss (5,940) Other operating income 778 Selling and distribution costs (5,665) Administrative expenses (19,072) Finance costs (3,123) Loss before taxation (33,022) Taxation (829) Loss after taxation (33,851) (ii) The effects of the acquisitions and incorporations of other subsidiaries in previous financial year PT BAN and MSM Trading International DMCC in United Arab Emirates are newly incorporated subsidiaries of the Group. FGV Lipid, MSM Sugar Refinery and FGV Logistics are newly acquired dormant subsidiaries of the Group. The effects of the incorporations and acquisition of these companies are not material to the Group in the previous financial year.