/ . 9 2
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
2 1 . ot he r L i ab i l i t i e s
group
2015
$’000
2014
$’000
non-current:
Deferred income (Note 21A)
13,199
16,532
Non-current, total
13,199
16,532
Current:
Deferred income (Note 21A)
3,333
3,333
Deferred income – others
282
–
Warranty provision (Note 21B)
96
234
Deposits from customers
10,896
5,166
Current, total
14,607
8,733
Total
27,806
25,265
21a. Deferred income
group
2015
$’000
2014
$’000
Balance at beginning of the year
19,865
1,794
Additions [Note 12(e)]
– 20,000
Credit to profit or loss included in other income
(3,333)
(1,929)
Balance at end of the year
16,532
19,865
Presented in the statement of financial position as:
Current
3,333
3,333
Non-current
13,199
16,532
16,532
19,865
Pursuant to a conditional sale and purchase agreement dated 4 July 2012 between EuroSports Auto Pte Ltd and
RBC Dexia Trust Services Singapore Limited (in its capacity as trustee of Cambridge Industrial Trust) (the “
Purchaser
”),
EuroSports Auto Pte Ltd agreed to sell its leasehold interest in respect of 30 Teban Gardens Crescent Singapore 608927,
comprising the land, building and all mechanical and electrical equipment installed therein, to the Purchaser for a
consideration of $41.0 million. On 17 March 2014, the sale of property was completed and EuroSports Auto Pte Ltd has
leased the property from the Purchaser for six years commencing from 17 March 2014 at an average annual rent of
$3,589,000 over the lease term, with an option to renew the lease for a further term of six years. Knight Frank Pte Ltd, a
firm of independent professional valuers, valued the property as at 4 July 2012 at $21.0 million on the assumption that
the 22 years lease extension from JTC has been or will be granted and the property is sold in the open market without
the benefit of any leaseback agreement. The difference between the consideration of $41.0 million and fair value of
$21.0 million is deferred and amortised over the leaseback period of six years or at an annual amount of $3,333,000.
