notes to the financial statements - Sino

NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 200833. BANK BORROWINGS, SECUREDAt 31 December 2008, the bank borrowings, which are denominated in RMB, were repayable as follows:Group2008 2007HK$’000HK$’000Within one year 27,935 10,892In the second years 11,356 26,268In the third to fifth years 19,226 28,831Wholly repayable within 5 years 58,517 65,991Less: Portion due within one year under current liabilities 27,935 10,892Portion due over one year under non-current liabilities 30,582 55,099At 31 December 2008, the bank borrowings’ interest rate profiles are as follows:Group2008 2007HK$’000HK$’000Floating rates– 8.51% (2007: 7.62%) per annum 41,938 50,187Floating rates– 6.24% (2007: 8.22%) per annum 16,579 15,80458,517 65,991The carrying amounts of the borrowings approximate their fair value.34. DEFERRED TAXAt 31 December 2008, the Group has unrecognised deferred tax asset arising from tax losses of the subsidiariesoperating in Hong Kong and in Mainland China of approximately HK$31,618,000 and HK$191,316,000 (2007:HK$71,391,000 and HK$44,333,000) respectively. The amount of unrecognised deferred tax assets are as follows:GroupCompany2008 2007 2008 2007HK$’000 HK$’000 HK$’000 HK$’000Tax effect of:– unused tax losses 48,316 23,579 – 7,81148,316 23,579 – 7,811Deferred tax asset in respect of unused tax losses has not been recognised in the financial statements due tothe unpredictability of future profit streams against which the tax losses can be utilised. The tax losses of thesubsidiaries operating in Mainland China can be carried forward for 5 years and tax losses of the companies withinthe Group operating in Hong Kong will not be expired under the current tax legislation.Sino-i Technology Limited Annual Report 200887