WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
142
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
21. INTERESTS IN ASSOCIATES
– continued
Reconciliation of the above summarised financial information to the carrying amount of the interest
in GW Electronics Company Limited recognised in the consolidated financial statements:
2016
2015
HK$’000
HK$’000
Net assets of the associate
124,620
153,077
Proportion of the Group’s ownership interest in GW Electronics
Company Limited
49%
49%
Deemed capital contribution
9,016
7,490
Carrying amount of the Group’s interest in GW Electronics
Company Limited
70,080
82,498
Impairment
(70,080)
–
–
82,498
During the year, a winding-up petition is issued by a major supplier to GW Electronics Company
Limited as a result of the termination of an authorised distributorship agreement. The directors of
the Group reviewed and assessed this circumstance to be an indication for non-recoverability of
the investment in GW Electronics Company Limited. Accordingly, a full provision is made and an
impairment loss of HK$70,080,000 on the investment in this associate is made for the year ended
March 31, 2016.
22. TRUST RECEIPT LOANS
The trust receipt loans are unsecured, bear effective interest ranging from 1.72% to 2.89% (2015:
1.83% to 2.79%) per annum and are repayable within one year.
At the end of March 31, 2016 and 2015, the Group’s trust receipt loans with carrying amount
of approximately HK$40,745,000 and HK$12,884,000 are required to comply with certain loan
covenants.
The Group has complied with the loan covenants for both years.
