SINGAPORE WINDSOR HOLDINGS LIMITED
| Annual Report 2015
72
Year ended 31 March 2015
NOTES TO THE
FINANCIAL STATEMENTS
22. Share capital (cont’d)
The improvement as shown by the decrease in the debt-to-adjusted capital ratio for the reporting year resulted
primarily from the exclusion of borrowings from the disposal of discontinued operations. There was an unfavourable
change with decreased retained earnings. This resulted in the decrease of equity.
23. Other reserves
Group
2015
2014
HK$’000
HK$’000
Foreign Currency Translation Reserve
19,305
21,366
Statutory Reserves
3,949
3,949
23,254
25,315
(a)
Foreign Currency Translation Reserve
The foreign currency translation reserve comprises all foreign exchange differences arising from the
translation of the financial statements of foreign operations.
Foreign
currency
translation
reserve
HK$’000
Group
Current Year:
Opening Balance at 1 April 2014
21,366
Exchange difference on translating foreign operation
(2,061)
Closing Balance at 31 March 2015
19,305
Previous Year:
Opening Balance at 1 April 2013
25,732
Disposal of a subsidiary (Note 11B)
(6,705)
Exchange difference on translating foreign operation
2,339
Closing Balance at 31 March 2014
21,366
This reserve is not available for distribution as cash dividends.
(b)
Statutory Reserves
Under the regulations in the People’s Republic of China, a subsidiary is required to set up a statutory reserve
which represents a non-distributable reserve made at a rate of 10% of net profit after tax. Contribution to
this reserve is no longer mandatory when the reserve reaches 50% of the registered share capital of the
subsidiary. The statutory reserve is not available for distribution as cash dividend. The reserve is to be used
in accordance to the circumstances as stipulated in the relevant regulations.
