KENANGA ANNUAL REPORT 2017

14. INVESTMENT IN SUBSIDIARIES (CONT’D.) (i) Acquisition of remaining 27% equity interest in Kenanga Futures Sdn Bhd (formerly known as Kenanga Deutsche Futures Sdn Bhd) (Note 53 (1)). (ii) Being deemed disposal of a wholly-owned subsidiary, ECML Nominees (Asing) Sdn Bhd (“ECMLNA”) (now known as Rakuten Trade Sdn Bhd), to Rakuten Securities, Inc. which acquired 50% equity interest of Rakuten Trade Sdn Bhd (formerly known as ECMLNA). As a result of loss of control over ECMLNA, the investment in subsidiary was derecognised and reclassified to investment in a joint venture/ jointly controlled company. The dilution of the equity interest in ECMLNA constituted a deemed disposal of the Bank’s equity interest in subsidiary. (iii) Based on merger/common control accounting, K & N Kenanga Holdings Berhad (“KNKH”), Kenanga Capital Sdn Bhd, Kenanga Capital Islamic Sdn Bhd, Kenanga Private Equity Sdn Bhd and Kenanga Management & Services Sdn Bhd became wholly-owned subsidiaries of the Bank, pursuant to the Group internal reorganisation. Details of the subsidiary companies are as follows: Name Principal activities Effective equity interest Non-controlling interest 2017 2016 2017 2016 % % % % Local subsidiary companies Kenanga Futures Sdn Bhd (formerly known as Kenanga Deutsche Futures Sdn Bhd) (“KF”) Futures broker 100 73 – 27 Kenanga Nominees (Asing) Sdn Bhd Provision of nominee services 100 100 – – Kenanga Nominees (Tempatan) Sdn Bhd Provision of nominee services 100 100 – – Kenanga Private Equity Sdn Bhd Private equity management 100 100 – – ECML Berhad Dormant 100 100 – – ECML Nominees (Tempatan) Sdn Bhd Dormant 100 100 – – Avenue Kestrel Sdn Bhd Dormant 100 100 – – K & N Kenanga Holdings Berhad Investment holding 100 100 – – The subsidiary company of K & N Kenanga Holdings Berhad is: SSSB Management Services Sdn Bhd Dormant 100 100 – – Kenanga Management & Services Sdn Bhd Provision of car park management services 100 100 – – Kenanga Investors Berhad Promotion and management of collective investment schemes and management of investment funds 100 100 – – Kenanga Investment Bank Berhad 31 December 2017 130 notes to the financial statements