Strength & Stability - ECS Holdings Limited

11 Trade Receivables (Cont’d)
The change in impairment losses in respect of trade receivables during the year is as follows:
Group
Company
Note 2008 2007 2008 2007
$’000 $’000 $’000 $’000
At 1 January 8,272 8,884 - -
Utilised during the year (1,547) (4,333) - -
Impairment loss recognised 23(b) 4,773 3,151 - -
Translation differences on consolidation (333) 570 - -
At 31 December 11,165 8,272 - -
Based on historical default rates, the Group believes that no further impairment allowance is necessary in respect of trade receivables
not past due as at 31 December 2008. These receivables are mainly arising with customers that have a good record with the Group.
12 Deposits, Prepayments and Other Receivables
Group
Company
Note 2008 2007 2008 2007
$’000 $’000 $’000 $’000
Deposits 1,620 913 - -
Prepayments 53,346 14,953 59 26
Recoverables 2,563 3,169 - 14
Tax recoverables 33 - - -
Other receivables 1,452 4,066 10 -
Call option (a) 653 756 - -
10 59,667 23,857 69 40
(a)
On 4 January 2006, a subsidiary entered into a call option agreement with a shareholder of the associate for US$1 cash
consideration which will entitle the subsidiary to acquire additional 10% equity interest in the associate. The call option is
exercisable beginning 4 July 2008 and ending on the date falling three years thereafter, unless otherwise further extended by
the shareholder in writing, at an option price equivalent to US$450,000. The fair value of the call option as at balance sheet
date has been recognised as an option asset with its corresponding change in fair value during the year recognised in the income
statement.
Notes to the
Financial Statements
These notes form an integral part of the financial statements.
Annual Report 2008
p.
73