KENANGA ANNUAL REPORT 2019

194 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 13. INVESTMENTS IN SUBSIDIARIES (CONT’D.) (ii) Business combinations (cont’d.) Accounting for acquisition at the Group level (cont’d.) RM’000 Acquisition-related cost included in administration and general expenses in the statements of profit or loss and other comprehensive income 1,229 Since 1 July 2019, the profit before tax included in the statements of profit or loss and other comprehensive income contributed by LIB was RM1.2 million. Had LIB been consolidated from 1 January 2019, the statements of profit or loss and other comprehensive income would show profit before tax of RM2.0 million and profit after tax of RM1.6 million. Details of the subsidiary companies are as follows: Name Principal activities Effective equity interest 2019 % 2018 % Local subsidiary companies Kenanga Futures Sdn Bhd (“KF”) Futures broker 100 100 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 Dealings in securities and derivatives, and provision of corporate finance and other advisory services 100 100 ECML Nominees (Tempatan) Sdn Bhd Provision of nominee services 100 100 Avenue Kestrel Sdn Bhd Stock broking business 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 Stock broking business 100 100 Kenanga Management & Services Sdn Bhd Investment in property and provision of management and maintenance services 100 100