notes to the financial statements - Investor Relations

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CWT Limited 78 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011 4 PROPERTY, PLANT AND EqUIPMENT (CONT’D) (i) During the year, the Group acquired property, plant and equipment with an aggregate cost of $70,751,000 (2010: $58,242,000), of which $2,327,000 (2010: $306,000) was acquired under finance lease arrangements. At the reporting date, the carrying amount of property, plant and equipment of the Group held under finance lease and hire purchase arrangements amounted to $3,932,000 (2010: $1,201,000). (ii) Property, plant and equipment with a carrying amount of $78,696,000 (2010: $20,727,000) have been pledged as security for bank loans and bank overdrafts granted to the Group. (iii) The following are the significant accounting estimates on the Group’s property, plant and equipment and judgements used in applying accounting policies: (a) Depreciation of property, plant and equipment Property, plant and equipment are depreciated on the straight-line basis over their estimated useful lives, after taking into account the estimated residual values. The Group reviews the estimated useful lives and residual values of the assets regularly in order to determine the amount of depreciation expense to be recorded in each financial year. Changes in the expected level of use of the assets and the Group’s historical experience with similar assets, after taking into account anticipated technological changes, could impact the economic useful lives and the residual values of the assets; therefore future depreciation charges could be revised. Any changes in the economic useful lives could impact the depreciation charge and consequently, affect the Group’s results. During the year, there were no changes in useful lives or residual values of the Group’s property, plant and equipment. (b) Provision for restoration In some lease agreements, the Group and Company are required to carry out site restoration work upon expiry of the leases. At 31 December 2011, the Group and Company have provisions for site restoration amounted to $534,000 (2010: S$534,000) and $284,000 (2010: $284,000), respectively. The expected site restoration costs are based on estimated costs of dismantling and removing assets and restoring the premises to their original conditions provided by external contractors. (c) Impairment assessment The Group has substantial investments in property, plant and equipment for its logistics and warehousing businesses. Each of these warehouse properties (including land) and the related plant and equipment forms a separate cash-generating unit (“CGU”). Management evaluates the performance of the CGUs annually and performs an impairment assessment for CGUs with impairment trigger. The recoverable amount of a CGU is determined based on the higher of fair value less costs to sell and value-in-use. During the financial year, one of the subsidiaries, Pryzma Ltd, carried out a review of the recoverable amount of its freehold land which has become idle since the termination of the warehouse property project in 2008. The Group obtained an updated open market valuation of the freehold land conducted by an independent professional valuer on a willing-buyer-willing-seller basis close to the reporting date. The market value had decreased and accordingly, an impairment loss of $378,000 was recognised in the financial year.
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011 4 PROPERTY, PLANT AND EqUIPMENT (CONT’D) (d) Expenses capitalised 5 INTANGIBLE ASSETS Group During the financial year, the Group capitalised the following expenses in leasehold buildings: Annual Report 2011 Group Company 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Operating lease expense 514 482 – – Note Goodwill on consolidation Computer software Customer contracts LME licence Port concession rights Business relationship Brand Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Cost At 1 January 2010 21,453 3,551 7,935 10,198 13,068 – – 56,205 Additions 2,747 250 – – – – – 2,997 Acquisition through business combinations 5,821 – – – – – – 5,821 Disposal (137) (1,496) – – – – – (1,633) Disposal of subsidiaries (9) − – – – – – (9) Effect of movement in exchange rates (1,201) (88) – – (1,925) – – (3,214) At 31 December 2010 28,674 2,217 7,935 10,198 11,143 – – 60,167 Additions – 709 – – 33 – – 742 Acquisition through business combinations 40 37,970 – – – – 32,435 21,603 92,008 Disposal – (120) – – – – – (120) Effect of movement in exchange rates 3,194 (9) – – (236) (269) (179) 2,501 At 31 December 2011 69,838 2,797 7,935 10,198 10,940 32,166 21,424 155,298 79
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CWT Limited Annual Report 2011 Annu
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ABOUT THE CWT GROUP VISION To Be A
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GROUP FIVE-YEAR FINANCIAL SUMMARY F
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Largest warehouse operator in Singa
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CWT Limited CHAIRMAN’S STATEMENT
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CWT Limited BOARD OF DIRECTORS Loi
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CWT Limited EXECUTIVE TEAM Loi Pok
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ELEVATION Rising through resilience
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COMMODITY SUPPLY CHAIN MANAGEMENT C
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MIDDLE EAST Kuwait Kuwait UK Estoni
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CWT Limited OPERATIONS REVIEW “Am
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CWT Limited OPERATIONS REVIEW 1. Br
Page 29 and 30: CHARACTER Our identity and performa
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Page 33 and 34: Investor Relations We regularly eng
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Page 47 and 48: DIRECTORS’ REPORT YEAR ENDED 31 D
Page 49 and 50: STATEMENT BY DIRECTORS YEAR ENDED 3
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NOTES TO THE FINANCIAL STATEMENTS Y
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NOTES TO THE FINANCIAL STATEMENTS Y
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STATISTICS OF SHAREHOLDINGS SHAREHO
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NOTICE OF ANNUAL GENERAL MEETING An
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NOTICE OF ANNUAL GENERAL MEETING An
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CWT LIMITED (Company Registration N
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CORPORATE DIRECTORY Loi Pok Yen Gro
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notes to the financial statements - Investor Relations

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