AJ Lucas Group annual report 2007-08

27. CONSOLIDATED ENTITIES
The financial statements at 30 June 2008 include the following controlled entities. The financial years of all the controlled entities are the same as that
of the parent entity.
Ownership interest
Name of entity
Country of
incorporation
Parent entity
AJ Lucas Group Limited
Controlled entities
AJ Lucas Operations Pty Limited Australia 100 100
AJ Lucas Plant & Equipment Pty Limited Australia 100 100
AJ Lucas Drilling Pty Limited Australia 100 100
AJ Lucas Pipelines Pty Limited Australia 100 100
AJ Lucas Testing Pty Limited Australia 100 100
Smart Electrical & Power Services Pty Limited Australia 100 100
AJ Lucas Joint Ventures Pty Limited Australia 100 100
Coastal Sand Technologies Pty Limited Australia 100 100
AJ Lucas (Hong Kong) Limited Hong Kong 100 100
Lucas Energy Pty Limited Australia 100 100
AJ Lucas Coal Technologies Pty Limited Australia 100 100
AJ Lucas (USA) Inc. USA 100 100
Lucas Contract Drilling Pty Ltd Australia 100 100
Wholly owned subsidiary of Lucas Contract Drilling Pty Ltd
McDermott Drilling Pty Ltd Australia 100 100
Lucas Stuart Pty Limited Australia 100 100
Wholly owned subsidiaries of Lucas Stuart Pty Ltd
Ketrim Pty Limited Australia 100 100
Stuart Painting Services Pty Ltd Australia 100 100
Lucas Stuart Projects Pty Ltd Australia 100 100
Jaceco Drilling Pty Ltd Australia 100 —
Geosearch Drilling Service Pty Ltd Australia 100 —
Arawn Energy Ltd Canada 60 —
Lucas Energy (UK) Limited England 99 —
257 Clarence Street Pty Limited Australia 100 —
Lucas SARL New Caledonia 100 100
2008
%
2007
%
28. CONTINGENCIES
Details of contingent liabilities and contingent assets where the probability of future payments/receipts is not considered remote are set out below, as
well as details of contingent liabilities and contingent assets, which although considered remote, the directors consider should be disclosed.
The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that a future sacrifice of economic
benefits will be required or the amount is not capable of reliable measurement.
Contingent liabilities not considered remote
The Group has received a claim from a customer in relation to a construction contract which was completed by the Group in 2001. While liability is not
admitted, if defence against the claim is unsuccessful, claims could amount to $2,098,000 plus legal and rectification costs. Based on legal advice, the
directors do not expect the outcome of the action to have a material impact on the Group’s financial position.
Contingent assets not considered remote
The Group has claimed amounts from a previous customer in relation to works on a construction contract which was completed in 2003. Subsequent
to year-end, the Group was awarded contract sums, plus interest and costs in relation to the claim. Amounts recognised by the Group as being
receivable in relation to the claim are materially consistent with the contract sums and interest awarded. No amounts have been recognised by the
Group in relation to recovery of costs as the quantum is subject to court determination.
Joint ventures
Under the joint venture agreements (see note 26) the relevant AJ Lucas Group company is jointly and severally liable for all the liabilities incurred by
the joint ventures. As at 30 June 2008, the assets of the joint venture were sufficient to meet such liabilities. The liabilities of the joint ventures not
included in the consolidated financial statements amounted to $18,187,000 (2007: $26,593,000).
60 LUCAS group