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NOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2007 (Continued)6. Investment in subsidiaries (Continued)Details of the subsidiaries are as follows:Country ofEffective equity interestheld by the Groupincorporation/operations Principal activities2007 2006% %Held by the CompanyJin Heng Li Hardware Sdn. Bhd. (a) 59.23 59.23 Malaysia Trading in all types of hardwareOriental Metals Pte Ltd (b) 99.99 99.99 Singapore Trading and manufacturing of steel productsHG Metal Investments Pte Ltd (b) 100.00 100.00 Singapore Investment holdingHeld by the HG Metal Investments Pte LtdNiho (Singapore) Pte Ltd (b) 72.29 72.29 Singapore Wholesalers and distributors of various typesof metals and fabricated metalsGalaxia Pte Ltd (b) 100.00 100.00 Singapore Rental of metal platesHG Metal Manufacturing Sdn Bhd (c) 100.00 - Malaysia DormantHeld by Niho (Singapore) Pte LtdKunshan Niho Co Ltd (d) 72.29 72.29 People’s Republic Wholesalers and distributors of various typesof China of metals and fabricated metals(a) Audited by BDO Binder, Malaysia, a member firm of BDO International.(b) Audited by BDO Raffles, Singapore.(c) This subsidiary has not commenced operations since its incorporation.(d) Audited by BDO Shanghai Zhonghua, People’s Republic of China, a member firm of BDO International.Acquisition of subsidiaries in financial year 2006On 15 August 2006, the Group acquired 72.29% of the issued share capital of Niho (Singapore) Pte Ltd which owns 100% of the effective equity interest in Kunshan NihoCo. Ltd, for a cash consideration of $1,500,000.In financial year 2006, the acquired companies contributed revenue and net profit of $540,947 and $9,255 respectively to the consolidated income statement for the periodbetween the date of acquisition and the balance sheet date.HG METAL MANUFACTURING LIMITED ANNUAL REPORT 200767