The following are the Statements of Financial Position of Ombak Bhd and its related companies as at 31 March 2022: Ombak Bhd RM million Karang Bhd RM million Beting Bhd RM million Bayu Bhd RM million Property, Plant & Equipment 119 71 36 15 Investment 96 35 10 3 Inventories Bills Receivables 12 18 25 4 Trade Receivables Loan to Beting Bhd 10 8 12 5 3 2 2 7 - 1 - Cash & Cash Equivalent 4 3 1 3 Total Ordinary Share issued at RM1 each 5% Cummulative Preference Share 251 100 37 137 86 31 70 30 20 issued at RM1.00 each Retained Profit b/f Current Year Profit Other Component of Equity Bank Loan Trade Payables Bills Payables Total 40 10 18 16 3 4 2 3 1 2 2 - - - 59 23 25 18 20 20 5 7 251 137 86 2226 - 4 1 31 Ombak Bhd acquired 75% of the ordinary shares of Karang Bhd at RM1.30 per share on 1 April 2020 when the retained profit of Karang Bhd was RM6 million. A plant of Karang Bhd was revalued on the acquisition date at RM1 million above the carrying value. Karang Bhd has not amended its books to reflect the new value. Ombak Bhd and Karang Bhd acquired 3 million and 18 million of the ordinary shares of Beting Bhd respectively on 1 April 2021 at the market price. The market price of Beting Bhd share was RM1.40 per share on this date. Ombak Bhd also acquired 4 million of Beting Bhd's preference shares at RM1 each. In Beting Bhd's records, a R&D expenses of RM2 million was documented. 40% of the expenses were for research activities. Ombak Bhd wish to recognise the R&D expenses as intangible asset.