/ . 8 6
E U R O S P O R T S G L O B A L L I M I T E D
Notes to
the F iNaNci al statemeNts
3 1 ma r ch 2 0 1 5
1 5 .
Tr ade and ot he r re c e i v ab l e s
group
Company
2015
$’000
2014
$’000
2015
$’000
2014
$’000
Trade receivables:
Outside parties
2,250
1,416
11
–
Less: allowance for impairment
(276)
(231)
–
–
Sub-total
1,974
1,185
11
–
other receivables:
Subsidiaries (Note 3)
–
–
11,374
8,866
Staff loans
2
3
–
–
Other receivables
5
191
–
–
Sub-total
7
194
11,374
8,866
Total trade and other receivables
1,981
1,379
11,385
8,866
movements in above allowance:
Balance at beginning of the year
231
228
–
–
Charge for trade receivables to profit or loss included in
other charges
64
3
–
–
Bad debts written off
(19)
–
–
–
Balance at end of the year
276
231
–
–
1 6 . ot he r a s s e t s
group
Company
2015
$’000
2014
$’000
2015
$’000
2014
$’000
non-current:
Land premium (Note 16A)
640
1,161
–
–
Non-current, total
640
1,161
–
–
Current:
Deposits
(a)
2,753
3,199
–
–
Land premium (Note 16A)
529
536
–
–
Prepayments
295
516
44
17
Current, total
3,577
4,251
44
17
Total
4,217
5,412
44
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. The fair value of the call option is not determinable.
EuroAutomobile and/or its nominees are to purchase up to 8 units of GTA automobiles from GTA Spain and the Group has paid a refundable
deposit of EUR1.2 million (S$1.9 million equivalent) to GTA Spain for the purchase of 5 units of 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. During the year, the deed of indemnity has been extended to
31 August 2015. The Board of Directors has agreed not to demand for the repayment of S$1.9 million till the end of August 2015 based on
correspondences from GTA Spain on the expected delivery schedule. The Management continues to assess this delivery schedule.
