TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
71
Notes to the financial statements
For the financial year ended 31 March 2016
16.
Interest in subsidiaries (cont’d)
(A)
Investment in subsidiaries (cont’d)
(a)
Investments in subsidiaries which are either restaurant operators or holding interests in entities which
are restaurant operators are impaired when the restaurants showed prolonged operating losses since the
opening of the restaurants. Impairment loss is provided on the investment based on value in use. The
value in use is based on the available data and the estimated future cash flows discounted to its present
value by using a pre-tax discount rate of 9.0% to 11.5% (2015: 7.1%) per annum that reflects current
market assessment of the time value of money and the risks specific to the subsidiary. The management
has assessed that growth rate of its subsidiaries to range from 1% to 28% (2015: 2% to 21%) per annum.
(b)
The advances are unsecured, interest-free and not expected to be repaid within the next 12 months as
the advances were used to fund the long-term operations of the subsidiaries. The Day One difference
between the fair value of the advances and the notional amount of the advances given is accounted for as
“Fair value adjustment” on interest-free advances to subsidiaries.
The Group has the following investment in subsidiaries:
Name of subsidiary
Country of
incorporation/
operation
Principal activities
Proportion of
ownership interest
and voting power
2016
2015
% %
Held by the Company
Tung Lok Millennium Pte Ltd
Singapore
Restaurateur
100
100
Tung Lok (China) Holdings Pte Ltd
Singapore
Investment holding
100
100
TLG Asia Pte Ltd
Singapore
Investment holding
100
100
Club Chinois Pte Ltd
Singapore
Restaurateur
75
75
Tung Lok Arena Pte Ltd
Singapore
Restaurateur
70
70
Olde Peking Dining Hall Pte Ltd
Singapore
Restaurateur
60
60
Held by Tung Lok Millennium Pte Ltd
Charming Garden (Asia Pacific) Pte Ltd Singapore
Central kitchen support
function
100
100
Tung Lok Central Restaurant Pte Ltd
Singapore
Restaurateur
100
100
