TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
69
Notes to the financial statements
For the financial year ended 31 March 2016
13.
Other receivables and prepayments (cont’d)
Movement in the allowance for doubtful debts
Group
2016
2015
$
$
At the beginning of the financial year
2,263,231
–
Charge for the year for a former subsidiary (Note 16(C))
–
2,263,231
Charge for the year
33,384
–
At the end of the financial year
2,296,615 2,263,231
At the end of the reporting period, the Group has provided an allowance of $33,384 (2015: $2,263,231) for other
receivables and loans from a former subsidiary, as the former subsidiary has been suffering significant financial losses.
Most of the other receivables that are neither past due nor impaired relate to customers that the Company has assessed
to be creditworthy based on the credit evaluation process performed by management.
14.
Inventories
Group
2016
2015
$
$
At cost
Food and beverages
2,283,917 2,328,082
Cook books
451
934
Total
2,284,368 2,329,016
15.
Long-term security deposits
Group
2016
2015
$
$
Refundable security deposits
1,625,401 1,495,494
These are mainly deposits placed with the landlords and service providers. Management is of the opinion that these
deposits have been placed with counterparties who are creditworthy and accordingly no allowance for potential non-
recovery of security deposits is required.
Included in the above long-term security deposits are deposits amounting to $159,827 (2015: $162,630) placed with a
corporate shareholder of the Company.
The carrying amounts of the above deposits approximate their fair values.
