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TEHO INTERNATIONAL INC LTD Annual Report 2012 55
Notes to the
Financial Statements
30 June 2012
26. Acquisition of Subsidiary (Continued)
The net assets acquired and the related fair values are as determined though a purchase
price allocation valuation carried out by an independent valuer as follows:
Pre –
acquisition
book value
under FRS At fair values
$ $
Property, plant and equipment 2,893 2,893
Inventories 280,584 371,405
Trade receivables 637,319 637,319
Other assets 1,000 1,000
Cash and cash equivalents 1,833,468 1,833,468
Income tax payable (160,323) (220,170)
Trade and other payables (697,027) (697,027)
Deferred tax liabilities – (415,450)
1,897,914 1,513,438
The goodwill arising on acquisition is as follows:
2012
$
Consideration transferred 6,382,000
Fair value of identifable net assets acquired (1,513,438)
Goodwill and intangibles arising on acquisition (Note 16A and 16B) 4,868,562
These consist of:
$
Goodwill 2,515,562
Intangibles 2,353,000
4,868,562
26. Acquisition of Subsidiary (Continued)
An analysis of the cash fows in respect of the acquisition of subsidiary is as follows:
Provisional
Fair Value
Restate
Fair Value
$ $
Cash consideration 5,282,000 5,282,000
Cash and cash equivalents acquired (1,833,468) (1,833,468)
Net outfow of cash and cash equivalents included
in cash fows from investing activities 3,448,532 3,488,532
The goodwill arising on the acquisition of TEHO Engineering Pte Ltd is attributable to the
anticipated proftability of this subsidiary. The goodwill is not deductible for tax purpose.
The intangibles arising on the acquisition of the subsidiary comprises the fair value of
customer relationship of $1,715,000 and the fair value of order book outstanding at the
date of acquisition of $638,000.
The contributions from the acquired subsidiary for the period between the date of
acquisition and the end of the reporting year were as follows:
From date of
acquisition in
2012
For the
reporting year
2012
$ $
Revenue 1,446,907 5,606,435
Proft, net of tax 405,276 1,163,109