Page 51 - ar2012

TEHO INTERNATIONAL INC LTD Annual Report 2012 49
Notes to the
Financial Statements
30 June 2012
16. Intangible Assets (Continued)
16A. Goodwill (Continued)
The group prepares cash fow forecasts derived from the most recent fnancial budgets
approved by management for the next 5 years and estimated growth rate of 2%. The
rate used to discount the forecasted cash fows for TEHO Engineering Pte Ltd is 11%.
16B. Other Intangible Assets
Customer
Relationship Orderbook Total
$ $ $
Group
Fair value :
Additions through acquisition of subsidiary
(Note 26) 1,715,000 638,000 2,353,000
At 30 June 2012 1,715,000 638,000 2,353,000
Accumulated Amortisation and Impairment:
Amortisation for the year 57,000 159,000 216,000
At 30 June 2012 57,000 159,000 216,000
Net book value:
At 30 June 2012 1,658,000 479,000 2,137,000
The value is regarded as the lowest level for fair value measurement of the valuation
includes inputs for the assets that are not based on observablemarket data (unobservable
inputs).
The amortisation expense is charged as other charges in the statement of comprehensive
income.
17. Investments in Subsidiaries
Company
2012
$
2011
$
Unquoted shares at cost:
Cost at the beginning of the year 13,320,943 12,993,360
Additions 6,565,034 327,583
Cost at the end of the year 19,885,977 13,320,943
Net book value of the subsidiaries 24,694,896 21,391,882
Analysis of the above amount denominated in non-functional currency:
United States Dollar 539,943 539,943
17. Investments in Subsidiaries (Continued)
The subsidiaries held by the Company are listed below:
Name of Subsidiaries, Country of
Incorporation, Place of Operations
and Principal Activities
(and Independent Auditors)
Cost in Books
of Company / Group
Effective
Percentage
of Equity Held
2012
$
2011
$
2012
%
2011
%
Held by the company:
TEHO Ropes & Supplies Pte. Ltd. (a) 12,781,000 12,781,000 100 100
Singapore
Supply of rigging and mooring
equipment as well as related services
to customers mainly in the marine,
offshore oil and gas industries
TEHO International (USA), LLC (b) 539,943 539,943 100 100
United States of America
Trading in rigging and mooring
equipment as well as related services
to customers mainly in the marine,
offshore oil and gas industries
(Smith Leonard PLLC)
TEHO (Shanghai) Co., Ltd. (c) 165,033 – 100 –
People Republic of China
(Incorporated 10 January 2012)
Supply of rigging and mooring
equipment as well as related services
to customers mainly in the marine,
offshore oil and gas industries
(RSM China CPAs)
TEHO Offshore Pte. Ltd. (d) 1 – 100 –
Singapore (Incorporated 11 April 2012)
Dormant
TEHO Engineering Pte. Ltd. (a) 6,400,000 – 100 –
Singapore (Acquired 10 May 2012)
Supply of offshore oil and gas equipment
to offshore oil and gas industries