Annual Report 2012 - ecoWise Holdings Limited

98ecoWise Holdings Limitedannual report 201231 OCTOBER 2012NOTES TO THE FINANCIAL STATEMENTS14. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)Constructionin-progressPlant andequipmentTotal$’000 $’000 $’000CompanyCostAt 1 November 2010 – 765 765Additions – 14 14Disposals – (2) (2)At 31 October 2011 – 777 777Additions 67 19 86Disposals – (11) (11)At 31 October 2012 67 785 852Accumulated depreciationAt 1 November 2010 – 199 199Depreciation for the year – 79 79Disposals – (2) (2)At 31 October 2011 – 276 276Depreciation for the year – 80 80Disposals – (11) (11)At 31 October 2012 – 345 345Carrying amountsAt 1 November 2010 – 566 566At 31 October 2011 – 501 501At 31 October 2012 67 440 50714A. Impairment Loss on Plant and EquipmentIncluded in the property, plant and equipment of the Group is a coal-fired power plant with carrying amountof $6,514,000 as at 31 October 2012 (2011: $7,008,000) owned by a non-wholly owned subsidiary, WuhanecoWise Energy Co., Ltd.. This plant will be converted to a biomass co-generation plant. The coal-firedpower plant has ceased operations and the commencement of plant conversion is subject to the subsidiaryreceiving additional capital injection from its shareholders for purposes of securing the bank financing for theconversion. As at 31 October 2012, the Group has assessed the recoverable amount of the plant based onits estimated value in use assuming the operation of a biomass co-generation plant, using a pre-tax discountvalue of 12.8%. Based on management’s review, there is no impairment loss.