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Notes to the Consolidated Financial Statements

31st March 2016

29 GAIN ON DISPOSAL OF PROPERTIES AND DEFERRED GAIN (CONTINUED)

Upon completion of the disposal, AEL and Lead Harvest entered into a tenancy agreement, whereby
AEL leased the aforesaid self-occupied property from Lead Harvest for its own use for 3 years
commencing on the Completion Date. The fair value of the self-occupied property near the Completion
Date was determined by the Valuer. The excess of consideration over fair value has been deferred
and amortised over the lease period, resulting in the recognition of “deferred gain” amounting to
HK$50,896,000 in the consolidated balance sheet and amortisation of the deferred gain amounting to
HK$1,454,000 in the consolidated income statement for the current year.

During the current year, gain on the disposals of a self-occupied property and certain investment
properties of HK$100,763,000 and HK$122,009,000 have been recognised in the consolidated income
statement.

30 BANKING FACILITIES

As at 31st March 2016, banking facilities of approximately HK$1,314 million (2015: HK$1,150 million)
were granted by banks to the Group, of which approximately HK$233 million (2015: HK$52 million)
have been utilised by the Group. All banking facilities were supported by corporate guarantees given by
the Company and no facility is secured by charges over the use of certain assets of the Group (2015:
same).

31 COMMITMENTS

(a) Capital commitments

2016 2015
HK$’000 HK$’000

Moulds, plant and machinery and renovation contracted
but not provided for 11,878 16,018

ALCO HOLDINGS LIMITED ANNUAL REPORT 2016 83