annual report 2007 - ChartNexus

N OTES TO THE FINANCIAL STATEMENTS
11. INVESTMENT IN SUBSIDIARY
FOR THE YEAR ENDED 31 DECEMBER 2007
Company
2007 2006
RM RM
Unquoted shares - at cost 2 -
During the financial year, the Group acquired 100% equity interest in Key ASIC Semiconductor Sdn. Bhd., a
company incorporated in Malaysia, for a total cash consideration of RM2. The principal activities of the subsidiary
is in the business of providing manufacturing service to fabless design company, provide design for
manufacturing (“DFM”) and design for test (“DFT”) consultation and the sale of chips.
The effect of the acquisition on the financial results of the Group for the financial year is as follows :
Post-acquisition results of the subsidiary acquired:
2007
RM
Revenue 8,275,655
Other operating expenses ( 8,330,036)
Loss before tax ( 54,381)
Income tax credit 10,646
Decrease in Group’s profit attributable to shareholders ( 43,735)
The effect of this acquisition on the financial position of the Group as of end of year is as follows :
2007
Net assets acquired: RM
Cash on hand 2
Net assets acquired 2
Less : Cash and bank balances ( 2)
Cash flow on acquisition, net of cash and cash equivalents acquired -
The amount owing to subsidiary, which arose mainly from expenses paid on behalf and interest-free advances
given, is unsecured and bears no fixed terms of repayment.
12. DEFERRED TAX ASSETS
Group Company
2007 2007 2006
RM RM RM
At beginning of year - - -
Recognised in income statements (Note 7) 10,646 - -
At end of year 10,646 - -
The deferred tax asset is in respect of unutilised tax losses.
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