TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
70
Notes to the financial statements
For the financial year ended 31 March 2016
16.
Interest in subsidiaries
(A)
Investment in subsidiaries
Company
2016
2015
$
$
(i)
Investment
Unquoted equity shares, at cost
6,628,493 6,628,493
Impairment loss (a)
(1,200,000)
(1,200,000)
Net
5,428,493 5,428,493
(ii)
Deemed investment
Fair value adjustment on interest-free advances and financial guarantees
issued on behalf of subsidiaries at free of consideration to subsidiaries
3,690,160 2,675,526
Allowance for impairment (a)
(1,637,220)
(931,000)
Net
2,052,940 1,744,526
(iii)
Receivables from subsidiaries
Advances to subsidiaries (b)
19,774,613 16,441,176
Allowance for impairment on advances
(10,690,000)
(10,690,000)
Net
9,084,613 5,751,176
Total interests
16,566,046 12,924,195
Movement in allowance account for deemed investment:
Company
2016
2015
$
$
At the beginning of the financial year
931,000
931,000
Charge for the year
706,220
–
At the end of the financial year
1,637,220
931,000
At the end of the reporting period, the Company has provided an allowance of $706,220 (2015: $Nil) for deemed
investment in a subsidiary as the value in use of the subsidiary is less than its carrying amount.
