97
97
2015/2016 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
11. INVESTMENT IN SUBSIDIARIES/AMOUNT DUE FROM SUBSIDIARIES
The Company
2016
US$’000
2015
US$’000
Unquoted equity shares, at cost
33,274
33,274
Less: Impairment loss
(649)
(649)
32,625
32,625
Due from subsidiaries (non-trade)
11,714
14,608
The investments in subsidiaries are tested for impairment when a subsidiary is in a net liabilities
position or has suffered continual operating losses or has any other known impairment indicators. This
test requires significant judgement.
Based on this assessment, an impairment loss has been recognised in respect of the investment in
one of the subsidiaries.
The impairment loss in respect of the investment in a subsidiary is as follows:
The Company
2016
US$’000
2015
US$’000
Balance at beginning and end of the year
649
649
The net assets of the subsidiary, which comprise mainly current monetary assets and liabilities,
approximate their recoverable amounts.
The non-trade amount due from subsidiaries are unsecured and interest-free. The full settlement of
the loan is neither planned nor likely to occur in the foreseeable future. As this loan is, in substance, a
part of the Company’s net investment in the subsidiary, it is stated at cost less accumulated impairment
losses, if any.
