90
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
27 OPERATING SEGMENTS (CONT’D)
Revenue from major customers
Group
2016
2015
$
$
Top 1 customer
4,330,073 3,731,763
Top 2 customers
6,647,570 6,364,840
Top 3 customers
8,746,582 7,523,025
28 ACQUISITIONOF SUBSIDIARIES
2015
(i)
ECG Property Services Pte. Ltd.
On 28 November 2014, the Group acquired the entire share capital of ECG
Property Services Pte. Ltd. (“ECG Property Services”). As a result, ECG Property
Services became a wholly owned subsidiary of the Group (see Note 7 for the
principal activities).
Acquiring ECG Property Serviceswill enable the Group to gain a foothold in the real
estate business, strengthen the existing property development and investment
business and provide the Group with a fuller range of property services in order
to undertake the development project in Cambodia.
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:
28 ACQUISITIONOF SUBSIDIARIES (CONT’D)
(i)
ECG Property Services Pte. Ltd. (cont’d)
From date of
From
acquisition in 1 July 2014 to
2015 30 June 2015
$
$
Revenue
3,719,257 7,903,807
Loss, 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 17(a))
2,000,000
42,857,143 ordinary shares issued (Note 13)
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 (“PPA”) valuation carried out by the management as
shown in the following table. Goodwill arising on acquisition was determined on
a provisional basis as at 30 June 2015 as management was still in the process of
assessing the fair value of the intangibles.
