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SEE HUP SENG LIMITED
Annual Report 2012
67
Notes to the Financial Statements
31 DECEMBER 2012
9 Subsidiary Companies
Investment in Subsidiaries
Details of subsidiary companies and their net cost of investment to the Company at 31 December are:
Company
2012 2011
S$’000 S$’000
Lesoon Equipment Pte Ltd 2,965 2,965
Gardella Singapore Coating Pte Ltd 2,500 2,500
SHS Special Coating Pte Ltd (a) – –
SHS System Pte Ltd (a) – –
SHS Offshore Pte Ltd 50 50
Speedo Corrosion Control Pte Ltd 3,500 3,500
Tat Petroleum Pte Ltd (b) 39,187 40,541
PT Tat Petroleum Indonesia 2 2
SHS Capital Pte Ltd (a) – –
Eastern Tankstore (S) Pte Ltd 4,080 –
Axxmo International Pte Ltd 1,309 –
53,593 49,558
Allowance for impairment (3,965) (3,965)
49,628 45,593
(a) The cost of investment in these subsidiary companies is S$2 each (2011: S$2 each).
(b) Acquisition of Subsidiary Companies
(i) On 9 March 2012, the Company entered into a sales and purchase agreement with GEP Asia
Holdings Pte. Ltd. to acquire a 51% interest in Eastern Tankstore (S) Pte. Ltd. (“ETS”) for a
consideration of S$4,080,000.
The group acquired ETS in order to build an integrated chemical hub that will offer toll-blending
and chemical warehousing and logistics services on ETS’ premises at 1 Penjuru Lane.
The group has elected to measure the non-controlling interest at the non-controlling interest’s
proportionate share of ETS’ net identifiable assets. The non-controlling interest at the date of
acquisition was S$1,275,000.
The goodwill of S$2,753,000 comprises the expected synergies from combining operations. None
of the goodwill acquired is expected to be deductible for tax purpose.
The acquired subsidiary company derived revenue of S$3,832,000 and profit before tax of
S$62,000 from the date of acquisition to 31 December 2012 to the Group. The subsidiary
company’s assets and liabilities at 31 December 2012 were S$4,568,000 and S$1,906,000
respectively. If the acquisition had occurred on 1 January 2012, there would have been no change
to the Group’s revenue and profit before tax.