Annual - Johnson Electric

NOTES TO THE ACCOUNTS
NOTES TO THE ACCOUNTS
1. General information
The principal operations of Johnson Electric Holdings Limited (the Company) and its subsidiaries (together the
Group) are the manufacture, sale, and trading of motors, electromechanical components and materials. The Group
has manufacturing plants and sales operations around the world. During the year, the Group acquired control of
“Saia-Burgess Electronics Holding AG (Saia-Burgess)” and “Parlex Corporation (Parlex)”. Saia-Burgess is a leading
supplier of stepper motors, switches, actuators, sensors and electronic controllers to customers within the automotive,
industrial, medical, home appliances, and infrastructure automation industries. Parlex is a world leader in the
design and manufacture of flexible, interconnect products.
The Company is a limited liability company incorporated in Bermuda. The address of its registered office is
Canon’s Court, 22 Victoria Street, Hamilton HM 12, Bermuda.
The Company has its primary listing on The Stock Exchange of Hong Kong Limited.
These consolidated financial statements are presented in thousands of units of US dollars (US$’000), unless otherwise
stated. These consolidated financial statements have been approved for issue by the Board of Directors on 5th June
2006.
2. Principal accounting policies
The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting
Standards (HKFRS). The consolidated financial statements have been prepared under the historical cost convention,
as modified by the revaluation of available-for-sale financial assets, financial assets and financial liabilities (including
derivative instruments ) at fair value through profit or loss and investment properties, which are carried at fair
value.
The preparation of financial statements in conformity with HKFRS requires the use of certain accounting estimates.
It also requires management to exercise its judgement in the process of applying the Group’s accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the consolidated financial statements, are disclosed in note 4.
In 2005/06, the Group adopted the new / revised standards and interpretations of HKFRS. The effect of adopting
the new HKFRS is disclosed in note 44.
2.1 CONSOLIDATION
The consolidated financial statements include the financial statements of the Company and all its subsidiaries
made up to 31st March 2006.
58 Johnson Electric Holdings Limited