notes to the financial statements - Investor Relations

CWT Limited
92
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2011
14 INVENTORIES
Group Company
2011 2010 2011 2010
$’000 $’000 $’000 $’000
Raw materials 1,284 790 – –
Work-in-progress 61 20 – –
Consumables, equipment and spare parts 1,512 1,389 21 12
Commodities and other goods for sale 167,477 367 1,760 376
170,334 2,566 1,781 388
Raw materials, consumables, changes in work-in-progress and commodity inventories recognised in cost of sales amounted
to $1,821,901,000 (2010: $8,113,000).
Commodity inventories with carrying amounts of $153,000,000(2010: nil) have been pledged as securities for certain of the
Group’s bank credit facilities.
15 CONTRACT WORK-IN-PROGRESS
Group
Note 2011 2010
$’000 $’000
Costs incurred and attributable profits 386,486 411,888
Allowance for foreseeable losses (1,225) (4,906)
385,261 406,982
Progress billings (387,125) (414,835)
(1,864) (7,853)
Represented by:
Progress billing receivables 16 5,138 1,755
Advance billings and billings in excess of costs incurred and recognised profits 30 (7,002) (9,608)
(1,864) (7,853)
The Group assesses allowance for foreseeable losses by taking into account the contracted revenue, estimated costs to
completion, project duration and overruns. It is possible that management estimate is not indicative of future losses that may
be incurred. Any increase or decrease would affect profit or loss in the future years.