All figures are stated at $'000 unless stated otherwise.

Notes workings are on the right hand side of consolidated accounts and regular workings.

Consolidated statement of profit or loss

YEAR TO 31 MARCH 2009

Group
$'000

Sales revenues 1,600.00

Cost of sales - 890.00
Gross profit 710.00
Operating expenses - 184.00
Debenture interest - 6.00
Profit before tax 520.00
Income tax - 120.00
Profit for the year 400.00

Profit attributable to :
Parent 380.00
NCI 20.00
Total 400.00

Consolidated statement of financial position

AS AT 31 MARCH 2009

Group
$'000

Assets

Non current assets

Goodwill 180.00
Property, plant and equipment 1,405.00
Investments 30.00
1,615.00

Current assets
Inventory 510.00
Accounts receivable 324.00
Bank 80.00
914.00

Total assets 2,529.00

Equity and liabilities

Equity
Equity shares of $1 each 700.00
Share premium 600.00
NCI 195.00
Group retained earnings 500.00
1,995.00

Non-current liabilities
8% debentures 150.00

Current liabilites
Trade accounts payable 289.00
Current tax payable 95.00
384.00

Total equity and liabilities 2,529.00

ounts and regular workings.

W1 Group structure
Acquisition date 1-Oct-08
Reporting date 31-Mar-09
Parent ( P ) Hepburn
Subsidiary (S ) Salter
P% 80%
NCI% 20%

W2 Profit attributable to NCI

NCI%*PAT of S*6/12 20

W1 Group structure ( same as above )

W2 Net assets of Salter

At Acqn date At Reporting date Post acqn

Share capital 150.00 150 -
Retained earnings 600.00 700 100.00
Increase in FV of land 125.00 125 -

875.00 975.00 100.00

W3 Goodwill

Purchase consideration
Share exchange 900.00
FV of NCI at acqn date 175.00 ( Proportion of net assets method : Note v )
Less : FV of net assets of salter - 875.00
Goodwill at acquisition 200.00
W4 NCI
FV of NCI at acqn date 175.00
NCI% * Post acqn reserves 20.00
195.00

W5 Group retained earnings

P's 100% RE 450

Less : PURP -10
Less : Impairment of goodwill - 20.00
P%*post acqn earnings 80.00
500
Note 0 Workings - Share exchange consideration

Number of shares issued by Hepburn ( '000 units ) 300

Share exchange consideration 900

Dr. Investment in Salter/Goodwill 900

Cr. Share capital 300
Cr. Share premium 600

Note (i) Workings - FV of net assets of Salter

Increase in FV of land 125

Note (ii) Workings - Hepburn sales to Salter

Sales 100

Gross profit ( 25% markup ) 20

PURP ( 50% inventory ) 10

Note (iii) Workings

Goodwill at reporting date 180

Goodwill at acquisition 200.00
Impairment of goodwill 20.00 ( Charged to operating expenses )

Note (iv) Workings

Cash in transit ( From Salter to Hepburn ) 20

Hepburn's receivables from Salter ( Before adjusting cash in transit ) 56

Hepburn's receivables from Salter ( After adjusting cash in transit ) 36

to operating expenses )