TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
80
Notes to the financial statements
For the financial year ended 31 March 2016
20.
Property, plant and equipment (cont’d)
The recoverable amount of the relevant assets of the restaurants has been determined on the basis of their value in use.
The discount rate used in measuring value in use was 9.0% to 11.5% (2015: 7.1%) per annum. The management has
assessed that growth rate of the relevant restaurants ranged from 1% to 28% (2015: 2% to 21%) per annum. There was
no impairment for the financial year ended 31 March 2016 and 31 March 2015.
Plant and equipment with the following carrying amounts at the end of the reporting period are under finance leases,
which are secured under the finance lease arrangements:
Group
2016
2015
$
$
Motor vehicles
757,325
692,517
Kitchen equipment
6,899
11,494
Total
764,224
704,011
Leasehold property with carrying amount of $3,282,299 (2015: $3,370,416) has been pledged to secure bank loans
(Note 25). Management has estimated the fair value of the leasehold property to be approximately $7,300,000 as at 31
March 2016 (2015: $7,300,000).
The valuation of leasehold property is based on comparable market prices that consider similar properties that have
been transacted in the open market, which is classified under Level 2 of the fair value hierarchy.
Details of the leasehold property as at 31 March 2016 are as follows:
Location
Type of premises
Land area
Tenure
(sq ft)
20 Bukit Batok Crescent
#11-05 to 09
18 Enterprise Centre
Singapore 658080
Office cum factory
building
23,659
60 years commencing
13 March 1997
21.
Goodwill
Group
$
Cost:
As at 1 April 2014, 31 March 2015 and 31 March 2016
310,468
Impairment:
As at 1 April 2014, 31 March 2015 and 31 March 2016
(310,468)
Carrying amount:
As at 1 April 2014, 31 March 2015 and 31 March 2016
–
The goodwill was fully impaired in prior years.
