120
121
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
12. Goodwill
$
Group
Cost :
At 1 January 2011, 31December 2011, 1 January 2012 and 31December 2012
7,551,331
Accumulated impairment :
At 1 January 2011, 31December 2011, 1 January 2012 and 31December 2012
–
Net carrying amount :
31December 2011 and 31December 2012
7,551,331
Impairment testing of goodwill
Goodwill acquired through business combinations has been allocated to the Group’s cash-generating unit
(“CGU”) identified according to each individual business unit for impairment testing.
Group
2012
2011
$
$
SeaDeep Shipyard Pte. Ltd.
7,551,331 7,551,331
The recoverable amount of the CGU has been determined based on value in use calculations using cash flow
projections from financial budgets approved by management covering a five-year period. Management have
considered and determined the factors applied in these financial budgets.
A pre-tax discount rate of 10% (2011: 10%) per annum, which is commonly adoptedwithin the industry, was
applied to the cash flow projections. In addition, management has also adopted a conservative forecasted
growth rateof 3% (2011:Nil) per annum for 5 years cash flowprojections. Thebulkof theGroup’s profit relates
to theoperations of theSeaDeepGroup.Given this information, the recoverableamount is not sensitive toother
assumptions.
No impairment loss was required for the carrying amount of goodwill assessed as at 31December 2012 and
2011 as the recoverable amount of theCGUwas in excess of the carrying value.
13. Investment in subsidiaries
Company
2012
2011
$
$
Shares, at cost
20,000,000 20,000,000
The subsidiaries for the financial year ended 31December are :-
Subsidiaries
(Country of incorporation)
Cost of
investment
Percentage
of equity held
by theGroup
Principal activities
(Place of business)
2012
2011 2012 2011
$
$
% %
(1)
SeaDeep Shipyard Pte. Ltd.
(Singapore)
20,000,000 20,000,000 100 100 Manufacture of steel
components and service
andmaintenance for
the offshore oil and gas
industry
(Singapore)
20,000,000 20,000,000
The subsidiary of SeaDeep Shipyard Pte. Ltd. is :-
(1)
Interseas Shipping (Private)
Limited.
(Singapore)
200,000 200,000 100 100 Manufacture of steel
components and service
andmaintenance for
the offshore oil and gas
industry
(Singapore)
(1)
Audited by Ernst & Young LLP, Singapore
for the financial year ended 31december 2012
for the financial year ended 31december 2012
notestothe
financialstatements
notestothe
financialstatements
