Annual Report - Bina Puri

Notes to and Forming Part of the Financial Statements (Cont’d)36. ANALYSIS OF ACQUISITION OF SUBSIDIARIESDuring the financial year, the Company acquired the following subsidiaries:(a) Bina Puri Pakistan (Private) LtdThe Company subscribed 9,997 ordinary shares of PKR10 each, representing 99.97% of the initial issued and paidupshare capital of Bina Puri Pakistan (Private) Ltd, a company incorporated in Pakistan, at a cash consideration ofPKR99,997 (RM5,554). Bina Puri Pakistan (Private) Ltd was incorporated on 2 August 2007 and its principal activityis contractor of earthworks, building and road construction.(b) Bina Puri (B) Sdn Bhd (formerly known as Dynacorp Sdn Bhd)On 1 June 2007, the Company and a wholly owned indirect-subsidiary, Bina Puri Construction Sdn Bhd acquired100% equity interest, representing 2 ordinary shares of BND1 each in Bina Puri (B) Sdn Bhd (formerly known asDynacorp Sdn Bhd), a company incorporated in Negara Brunei Darussalam, at a cash consideration of BND2(RM5). The principal activity of the newly acquired subsidiary is contractor of earthworks, building and roadconstruction.The acquisition was accounted for using the acquisition method of accounting.There is no goodwill or negativegoodwill arising from the said acquisition.In the previous financial year, the Company acquired 60% equity interest, representing 60 ordinary shares of RM1 eachin Bina Puri Gah Sdn Bhd, a company incorporated in Malaysia at a cash consideration of RM60.The effects of acquisition of the subsidiaries on the consolidated net profit, the consolidated financial position andconsolidated cash flow statement are as follows:(i)Effect on consolidated net profit for the yearSubsidiariesacquired in2007 2006RM’000 RM’000Gross revenue 7,496 –Cost of sales 7,264 –Profit/(Loss) before tax 89 (16)Tax expense 27 –Increase/(Decrease in) Group’s net profit 62 (16)94 BINA PURI HOLDINGS BHDAnnual Report 2007