NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
95
CITIC ENVIROTECH LTD.
Annual
Report
2015
11 PREPAID LEASES
Group
December
31,
March
31,
2015
2015
$’000
$’000
Cost:
At beginning of year
8,766
5,743
Exchange realignment
(241)
517
Acquisition of subsidiaries (Note 40)
30,732
2,506
At end of year
39,257
8,766
Accumulated amortisation:
At beginning of year
1,117
592
Exchange realignment
(21)
53
Charge to profit or loss
691
472
At end of year
1,787
1,117
Carrying amount:
At December 31, 2015
37,470
7,649
At March 31, 2015
7,649
5,151
Presentation on Statements of Financial Position:
Group
December
31,
March
31,
2015
2015
$’000
$’000
Current assets
766
108
Non-current assets
36,704
7,541
Total
37,470
7,649
This represents prepaid lease payments for land use rights for eight (March 31, 2015 : two) pieces of
land located in the PRC on which the treatment plants of the subsidiaries are erected. All the land
leases run for an initial period of 50 years commencing between 2007 and 2014.
None of these leases include contingent rentals.
As at the end of the reporting period, the Group has pledged land use right with carrying amount of
$7,237,000 (March 31, 2015 : $7,649,000) to secure project financing facilities granted to the Group
(Note 19).
12 ASSESTS CLASSIFIED AS HELD FOR SALE
On February 5, 2015, the Group signed an agreement to dispose of one of the Group’s subsidiaries,
Heilongjiang Qitaihe Wanxinglong Water Co. Ltd. to Harbin Wanxinglong Development Co. Ltd., the
non-controlling shareholder, for a total proceeds of RMB24,870,000 ($5,503,000) which will be settled
in four tranches with completion expected in August 2015. However, the completion was delayed
due to the delay in settlement by Harbin Wanxinglong Development Co. Ltd.
