85
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
for the financial year ended 31 December 2014
11.
INTANGIBLE ASSETS (CONT’D)
Computer software
Computer software of the Group and the Company is determined to have finite useful lives and is
amortised on a straight-line basis over 3 to 5 years with remaining useful lives of 1 to 5 years (2013:
1 to 5 years).
12.
INVESTMENT IN SUBSIDIARIES
Company
2014
2013
$’000
$’000
Unquoted equity shares, at cost
14,114
13,488
Impairment losses
(967)
–
13,147
13,488
During the year, the Company recognised impairment loss of $967,000 (2013: Nil) on PT HG Metal
Distribution Indonesia as the subsidiary is making losses and there is a shortfall in the cost of
investment compared to its net tangible asset value (“NTA”). The Company has impaired the cost of
investment up to the subsidiary’s NTA as the subsidiary became dormant since July 2014.
(a)
Composition of the Group
The Group has the following investment in subsidiaries.
Name of subsidiaries
Principal activities
Country of
incorporation/
business
Proportion
of ownership
interest
2014 2013
% %
Held by the Company
Jin Heng Li Hardware
Sdn Bhd
(2)
Dormant since May 2013 Malaysia
79.38 59.23
Oriental Metals Pte Ltd
(1)
Trading and
manufacturing of steel
products and provisions
of engineering services
Singapore 99.99 99.99
HG Metal Investments
Pte Ltd
(1)
Investment holding
Singapore 100.00 100.00
PT HG Metal Distribution
Indonesia
(3)
Dormant since July 2014 Indonesia 100.00 100.00
