notes to the financial statements - Investor Relations

CWT Limited
96
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2011
18 LOAN TO JOINTLY-CONTROLLED ENTITY
Group
Note 2011 2010
$’000 $’000
Non-current
Loan to a jointly-controlled entity, classified as loans and receivables 10 369 377
Current
Loan to a jointly-controlled entity 350 125
Allowance for impairment losses (125) (125)
16 225 –
The non-current loan to a jointly-controlled entity is unsecured and bears interest at a fixed rate of 5% (2010: 5%) per annum.
As at the reporting date, the Group has given an undertaking to the jointly-controlled entity not to recall the loan within the
next 12 months.
The current loan to a jointly-controlled entity is unsecured and bears interest at an effective rate of 3.7% (2010: 3.7%) per
annum. The interest rate reprices on an annual basis.
19 LOANS TO ASSOCIATES
Group
Note 2011 2010
$’000 $’000
Non-current
Loans to associates, classified as loans and receivables 10 4,311 3,851
The non-current loans to associates are unsecured and bear interest at 0.76% - 6% (2010: 0.94%) per annum. The Group
has given an undertaking to the associates not to recall the loan within the next 12 months.
20 AMOUNTS DUE FROM SUBSIDIARIES
Note
Company
2011 2010
$’000 $’000
Amounts due from subsidiaries
- trade 19,094 20,389
- non-trade 1,471 1,723
20,565 22,112
Allowance for impairment losses (1,775) (1,775)
16 18,790 20,337
All the balances with subsidiaries are classified as loans and receivables. The trade balances are transacted at arm’s length.
The non-trade balances are unsecured, interest-free and repayable on demand.
The Company assessed collectibility of the balances, having considered the financial conditions of the subsidiaries and
their ability to make the required repayments. Management believes that no further impairment loss beyond the recorded
allowances is necessary. If the financial conditions of the subsidiaries were to deteriorate subsequently, further impairment
loss may then be recognised in future periods.