87
Annual Report 2015
TEHO INTERNATIONAL INC LTD.
27 ACQUISITION OF SUBSIDIARIES (CONT’D)
(i) ECG Property Services Pte. Ltd. (cont’d)
The contributions from ECG Property Services for the period between the date of
acquisition and end of the financial year and if the acquisition had occurred on 1 July
2014, respectively, are as follows:
From date of From 1 July
acquisition in
2014 to
2015
30 June 2015
$
$
Revenue
3,719,257
7,903,807
Profit, net of tax
(1,229,580)
(1,229,347)
Consideration transferred/to be transferred
The consideration transferred/to be transferred is as follows:
Group
2015
$
Cash
3,000,000
Deferred cash consideration (Note 16(a))
2,000,000
42,857,143 ordinary shares issued (Note 12)
8,570,000
Total consideration transferred
13,570,000
The fair value of the ordinary shares issued was based on the listed share price of the
Company at 28 November 2014 of $0.20 per share.
The net assets acquired and the related fair values are determined through a
purchase price allocation valuation carried out by the management as shown in the
following table. Goodwill arising on acquistion is determined on a provisional basis
as management is in the process of assessing the fair value of the intangibles, if any.
27 ACQUISITION OF SUBSIDIARIES (CONT’D)
(i) ECG Property Services Pte. Ltd. (cont’d)
Acquisition-related costs
The Group incurred acquisition-related costs of $104,800 on legal fees and due
diligence costs. The costs have been included in other administrative expenses.
Identifiable assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired and
liabilities assumed at the acquisition date.
At fair values
2015
$
Cash and cash equivalents
587,727
Plant and equipment
197,058
Trade and other receivables
1,155,446
Investment in associate
162,407
Other assets
17,876
Trade and other payables
(1,024,264)
Income tax payable
(765)
Deferred tax liabilities
(1,238)
Identifiable net assets acquired
1,094,247
The trade and other receivables comprise gross contractual amounts due of
$1,155,446, none of which was expected to be uncollectible at the acquisition date.
NOTES TO THE
FINANCIAL STATEMENTS
Year ended 30 June 2015
