notes to the financial statements - Investor Relations

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CWT Limited 80 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011 5 INTANGIBLE ASSETS (CONT’D) Goodwill on consolidation Computer software Customer contracts LME licence Port concession rights Business relationship Brand Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Accumulated amortisation and impairment loss At 1 January 2010 741 3,055 4,940 1,105 424 – – 10,265 Amortisation charge for the year – 297 638 340 324 – – 1,599 Disposals – (1,496) – – – – – (1,496) Effect of movement in exchange rates (1) (71) – – (76) – – (148) At 31 December 2010 740 1,785 5,578 1,445 672 – – 10,220 Amortisation charge for the year – 350 673 340 318 1,555 2,072 5,308 Impairment loss 127 – – – – – – 127 Effect of movement in exchange rates 1 (9) – – (28) 53 71 88 At 31 December 2011 868 2,126 6,251 1,785 962 1,608 2,143 15,743 Carrying amount At 1 January 2010 20,712 496 2,995 9,093 12,644 – – 45,940 At 31 December 2010 27,934 432 2,357 8,753 10,471 – – 49,947 At 31 December 2011 68,970 671 1,684 8,413 9,978 30,558 19,281 139,555 Company Computer software $’000 Cost At 1 January 2010 2,711 Additions 232 Disposal (1,401) At 31 December 2010 1,542 Additions 239 At 31 December 2011 1,781 Accumulated amortisation At 1 January 2010 2,485 Amortisation charge for the year 185 Disposal (1,401) At 31 December 2010 1,269 Amortisation charge for the year 181 At 31 December 2011 1,450 Carrying amount At 1 January 2010 226 At 31 December 2010 273 At 31 December 2011 331
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011 5 INTANGIBLE ASSETS (CONT’D) The amortisation charge is recognised in the following line items in profit or loss: Annual Report 2011 Group Company 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Administration expenses 329 282 173 185 Cost of sales 20 16 8 – Other operating expenses 4,959 1,301 – – 5,308 1,599 181 185 Impairment test for cash-generating units containing goodwill For the purpose of impairment testing, goodwill is allocated to the following cash-generating units, which represent the lowest level within the Group at which the goodwill is monitored for internal management purposes: Group 2011 2010 $’000 $’000 LME licence 3,276 13,055 General warehousing 11,844 – Collateral management (“CMA”) 6,117 6,117 Freight forwarding 3,240 3,148 Defence logistics 5,482 5,482 Commodity marketing and supply chain management (“SCM”) 38,978 – Others 33 132 68,970 27,934 Due to the restructuring in Europe during the year, the Group reorganised its reporting structure in a manner that changes the composition of cash-generating units to which goodwill has been allocated. As a result, certain entities previously falling under LME licence are now reallocated to general warehousing. The recoverable amount of the cash-generating units is based on value-in-use calculations which were determined by discounting future cash flows generated from continuing use of the units. The key assumptions used for projecting future cash flows are as follows: LME licence General warehousing CMA Freight forwarding Defence logistics SCM Revenue annual growth rate 3% - 12% 3% - 18% 3% - 14% 5% - 7% 0% - 50% 3% - 29% Discount rate 8% 8% 8% 13% 8% 8% The budgeted gross margins used in the forecasts are based on past performance trends and expectations of market developments. The average growth rate used is consistent with past performance trends and forecasts included in industry reports. The discount rates used are pre-tax and reflect the weighted average cost of capital adjusted for the risks specific to the respective cash-generating units. Cash flows are projected based on financial budgets approved by management covering 2012 and are extrapolated using the growth rates and gross margins as described above for the next four years. The terminal value is estimated by using the fifth year cash flow through perpetuity at zero growth rate and discounting it. The Group believes that any reasonably possible changes in the above key assumptions are not likely to cause any of the recoverable amounts to be materially lower than the related carrying amounts. 81
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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
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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
Page 51 and 52: STATEMENT OF FINANCIAL POSITION AS
Page 53 and 54: Annual Report 2011 CONSOLIDATED STA
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Page 59 and 60: CONSOLIDATED STATEMENT OF CASH FLOW
Page 61 and 62: 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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