NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
120
CITIC ENVIROTECH LTD.
Annual Report
2015
27 GENERAL RESERVE (cont’d)
Group
December
31,
March
31,
2015
2015
$’000
$’000
Statutory surplus reserve fund:
At beginning of year
4,469
4,410
Transfer from retained earnings
861
–
Acquisition of subsidiaries (Note 40)
–
59
At end of year
5,330
4,469
28 OTHER RESERVES
Currency translation reserve
The currency translation reserve represents exchange differences arising from the translation of the
financial statements of foreign operations whose functional currencies are different from that of the
Group and Company’s presentation currency.
Capital reserve
The capital reserve represents the Group’s share of fair value adjustment to the net assets of
subsidiaries on acquisition of additional equity interest from the majority shareholders.
29 SHARE-BASED PAYMENTS
Equity-settled share option scheme
The Company has a share option scheme for all directors and employees of the Group. The
scheme is administered by the Remuneration Committee. Options are exercisable at a price that
is equivalent to the Market Price; or a price that is set at a discount to the Market Price, provided
always that the maximum discount shall not exceed 20% of the Market Price; and the prior approval
of Shareholders shall have been obtained in a separate resolution. The vesting period is 1 year for
non-discount options and 2 years for discounted options. If the options remain unexercised after a
period of 10 years (Executive Directors and Employees) and 5 years (Non-Executive Directors) from
the date of grant, the options expire. Options are forfeited if the employee leaves the Group before
the options vest.
