Annual Report 2011 - QuamIR

Notes to the Consolidated Financial StatementsFor the year ended 31 March 201139. Disposal of Subsidiaries (continued)On 10 February 2010, SP Group (as vendor) and Mr. Leung (as purchaser), entered into a disposalagreement pursuant to which the purchaser has agreed to acquire and the vendor has agreed to disposeof the entire issued ordinary share capital of Sino Prosper Resources Limited (an indirect wholly-ownedsubsidiary of the Company), which holds 65% equity interests in PT Sino Prosper Indocarbon, andthe loan outstanding as at completion made by or on behalf of the vendor to Sino Prosper ResourcesLimited, at the purchase price of RMB5,280,000 (equivalent to HK$6,000,000). The disposal constituted aconnected transaction on the part of the Company under Chapter 14A of the Listing Rules. Sino ProsperResources Limited and its 65% equity-owned subsidiary are principally engaged in mineral resourcesexploration project in Indonesia and own the right to carry out general exploration in bitumen minesin Buton, Indonesia. Upon completion of the disposal, the Group ceased to have any shareholding inSino Prosper Resources Limited.The consolidated net liabilities of Sino Proper Resources Limited and its subsidiary on the date ofdisposal were as follows:HK’000Property, plant and equipment 11Prepayments, deposits and other receivables 19Amounts due from non-controlling interests of a subsidiary 3,481Bank balances and cash 79Amount due to immediate holding company (9,809)Other payables and accruals (420)(6,639)Non-controlling interests (898)Release of foreign currency translation reserve (158)Gain on disposal of subsidiaries 3,886(3,809 )Satisfied by:Cash consideration 6,000Disposal of shareholder’s loan (9,809)(3,809 )Net cash inflow on disposal of subsidiaries:Cash consideration 6,000Bank balances and cash disposed of (79)5,921Annual Report 2011119