Sunny Tew

NOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2007 (Continued)5. Intangible assets (Continued)The Company2007 2006$ $GoodwillCarrying amountsAt beginning and end of the financial year 163,417 163,417Goodwill comprise purchased goodwill when the Company bought over the business operations of Hock Guan Hardware & Company, a partnership in 1988. As at 30September 2007, the Directors of the Company had determined that there is no indication that the goodwill had been impaired.The amortisation period for the computer software is 5 years, using the straight-line method from the first day of utilisation. As at 30 September 2007, the installation of thecomputer software has not been completed. Hence, the amortisation of this asset, on the same basis as other property assets, commences only when the asset is readyfor its intended use.6. Investment in subsidiariesThe Company2007 2006$ $Unquoted equity shares, at cost 6,600,926 6,380,866The Directors of the Company had assessed for impairment in value of investment in subsidiaries. From the assessment, no allowance for impairment in value of investmentin subsidiaries is required.66 HG METAL MANUFACTURING LIMITED ANNUAL REPORT 2007