ANNUAL REPORT
2016
.93
NOTES TO THE
FINANCIAL STATEMENTS
22.
OTHER LIABILITIES (CONT¡¯D)
22A. Deferred income
GROUP
2016
$¡¯000
2015
$¡¯000
At beginning of the year
16,532
19,865
Credit to profit or loss included in other income
(3,333)
(3,333)
At end of the year
13,199
16,532
Presented in the statement of financial position as:
Current
3,333
3,333
Non-current
9,866
13,199
13,199
16,532
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 Garden 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.
22B. Warranty provision
GROUP
2016
$¡¯000
2015
$¡¯000
Balance at beginning of the year
96
234
Provision charged to profit or loss included in cost of sales
23
77
Used
(66)
(215)
Balance at end of the year
53
96
