NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
93
CITIC ENVIROTECH LTD.
Annual
Report
2015
8 SERVICE CONCESSION RECEIVABLES (cont’d)
(d) Service concession receivables amounting to $226,716,000 (March 31, 2015 : $151,040,000)
are pledged to secure the loans for the Group (Note 19).
(e)
The fair value of the non-current portion of financial receivables approximates its carrying
value, as management is of the opinion that the effective interest rates used ranging from
6.36% to 14.50% (March 31, 2015 : 8.40% to 14.50%) is appropriate.
(f)
Revenue and gross profits for the year arising from service concession arrangement under
service concession receivables and intangible assets (Note 17) for the provision of construction
services amount to $100,522,000 (March 31, 2015 : $90,606,000) and $29,946,000 (March 31,
2015 : $38,424,000) respectively which form part of revenue from environmental engineering
projects (Note 30).
(g) The counterparties of the above service concession arrangements are municipal governments
in People’s Republic of China. Management is of the view that the associated credit risk is
not significant.
9 OTHER RECEIVABLES AND PREPAYMENTS
Group
Company
December
31,
March
31,
December
31,
March
31,
2015
2015
2015
2015
$’000
$’000
$’000
$’000
Deposits for project tender and acquisition
87,080
17,428
–
–
Prepayments and advance payment to
suppliers
38,924
24,943
–
–
Other deposits
1,131
57
304
303
VAT receivable
7,299
6,555
–
–
Dividend receivable from subsidiaries
(Note 13)
–
–
67,581
43,582
Subsidiaries (Note 13)
–
–
647,595 414,593
Deposit for acquisition of subsidiaries
16,702
9,312
16,702
9,312
Commission income receivable
–
4,000
–
4,000
Other receivables
12,555
7,728 49 49
Total
163,691
70,023 732,231 471,839
Included in deposits for project tender and acquisition is an amount of $65,520,000 (March
31, 2015: $Nil) which relates to refundable deposits for the BOT and TOT concessions for waste
water treatment plants in the PRC and Indonesia respectively which are still in the process of being
finalised.
