2006 - TCL Communication Technology Holdings Limited

TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED
Notes to Financial Statements
31 December 2006
23. TRADE RECEIVABLES
An aged analysis of the trade receivables as at the balance sheet date, based on the invoice date is as follows:
Group
2006 2005
HK$’000
HK$’000
Within 3 months 1,056,795 996,600
4 to 12 months 48,708 174,520
Over 12 months 25,633 –
1,131,136 1,171,120
Impairment loss of trade receivables (17,938) (44,057)
1,113,198 1,127,063
24. FACTORED TRADE RECEIVABLES
At 31 December 2006, a subsidiary of the Group factored trade receivables of HK$256,483,000 (2005:
HK$106,981,000) to banks on a without-recourse basis for cash. As the subsidiary of the Group still retained the
risks and rewards associated with the delay in payment by the customers, the financial asset derecognition conditions
as stipulated in HKAS 39 have not been fulfilled. Accordingly, bank advances from the factoring of the Group’s trade
receivables have been accounted for as liabilities in the consolidated balance sheet. Maturity date ranges from 30
days to 120 days.
25. PLEDGED DEPOSITS, CASH AND CASH EQUIVALENTS
Group
Company
2006 2005 2006 2005
HK$’000 HK$’000 HK$’000 HK$’000
Cash and cash equivalents 531,001 405,755 1,633 3,078
Pledged deposits 36,603 54,317 – –
567,604 460,072 1,633 3,078
Less: Pledged deposits:
– for factored trade receivables (note 24) (36,603) (18,870) – –
– for discounted notes – (35,447) – –
Cash and cash equivalents 531,001 405,755 1,633 3,078
At the balance sheet date, the cash and bank balances of the Group denominated in Renminbi (“RMB”) amounted
to approximately HK$135,922,000 (2005: HK$94,612,000). The RMB is not freely convertible into other currencies.
However, under Mainland China’s Foreign Exchange Control Regulations and Administration of Settlement, Sale and
Payment of Foreign Exchange Regulations, the Group is permitted to exchange RMB for other currencies through
banks authorised to conduct foreign exchange business.
Cash at bank earns interest at floating rates based on daily bank deposits rates. The carrying amounts of the cash
and cash equivalents and the pledged deposits approximate to their fair values.
Annual Report 2006
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