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A M A R Q U E A B O V E T H E R E S T 82 E U R O S P O R T S G L O B A L L I M I T E D 83
2 0 1 4 A N N U A L R E P O R T
31 March 2014 31 March 2014
NOTES TO THE NOTES TO THE
F INANCI AL STATEMENTS F INANCI AL STATEMENTS
16. Other Assets
Group Company
2014
$’000
2013
$’000
2014
$’000
Non-current:
Land premium (Note 16A) 1,161 – –
Non-current, total 1,161 – –
Current:
Deposits (a) 3,199 2,776 –
Deferred expenses – 126 –
Land premium (Note 16A) 536 – –
Prepayments 516 83 17
Current, total 4,251 2,985 17
Total 5,412 2,985 17
Notes:
(a) Pursuant to a heads of agreement between EuroAutomobile, a subsidiary, and Spania GTA Tecnomotive S.L. (“GTA Spain”), a
company incorporated in Spain, dated 22 September 2012, EuroAutomobile will be granted the distributorship for GTA Spain’s
automobiles in the Asia Pacific region. GTA Spain will enter into an exclusive distributorship agreement with Spania GTA Asia Pacific
Private Ltd. (“GTA Singapore”), a subsidiary, granting GTA Singapore the exclusive rights to distribute GTA automobiles in the
designated territories, including mainly the Asia Pacific region. In addition, EuroAutomobile has been granted a call option by GTA
Spain to subscribe for such shares representing 13.4% of the share capital of GTA Spain at a subscription consideration of EUR2
million. EuroAutomobile and/or its nominees are to purchase up to 8 units of GTA automobiles from GTA Spain and the Group has
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GTA automobiles. The Executive Directors of the Company have on 18 November 2013 executed a deed of indemnity in favour
of the Group, pursuant to which the Executive Directors have undertaken, inter alia, that they will indemnify the Group, on a joint
and several basis, for the deposit payment made to GTA Spain in the event (i) GTA Spain fails to deliver the GTA automobiles by 31
March 2015 and fails to refund the deposit in full to the Group; or (ii) if GTA Spain is wound up or placed in judicial management,
whichever is earlier.
16A. Land Premium
Group
2014
$’000
2013
$’000
At beginning of the year – –
Additions 1,719 –
At the end of the year 1,719 –
Accumulated amortisation:
At beginning of the year – –
Amortisation for the year included under administrative expenses 22 –
At the end of the year 22 –
14. Inventories
Group
2014
$’000
2013
$’000
Automobiles 14,851 13,535
Automobile parts and accessories 1,188 1,045
Watches 3,535 2,378
19,574 16,958
Inventories are stated after allowance. Movements in allowance:
Balance at beginning of the year 1,222 310
Charge to profit or loss included in cost of sales 724 1,222
Used (714) (310)
Balance at end of the year 1,232 1,222
Changes in inventories of finished goods 2,616 6,290
The amount of inventories included in cost of sales 30,060 65,633
The write-downs of inventories charged to profit or loss included
in cost of sales 724 1,222
Certain inventories are pledged as security for the bank facilities and finance leases (Note 20).
15. Trade and Other Receivables
Group Company
2014
$’000
2013
$’000
2014
$’000
Trade receivables:
Outside parties 1,416 1,419 –
Less allowance for impairment (231) (228) –
Related parties (Note 3) – 308 –
Sub-total 1,185 1,499 –
Other receivables:
Related parties [Note 3.4(a)] – 4,857 –
Subsidiaries – – 8,866
Staff loans 3 6 –
Other receivables 191 – –
Sub-total 194 4,863 8,866
Total trade and other receivables 1,379 6,362 8,866
Movement in above allowance:
Balance at beginning of the year 228 112 –
Charge for trade receivables to profit or loss included
in other charges 3 182 –
Used – (66) –
Balance at end of the year 231 228 –