108
GROUP
CO-OPERATIVE
15. OTHER RECEIVABLES FROM ASSOCIATES
(a) This interest-bearing advance from SG Domain Pte Ltd is unsecured, bears interest rate at 3% per annum
(2012 : 3% per annum) and repayable in one lump sum in 5 years time from February 17, 2010.
(b) FRS 39 - Financial Instruments: Recognition and Measurement requires financial assets and liabilities to be initially
measured at fair value. This has resulted in non-interest-bearing advance to SG Domain Pte Ltd amounting to
$29,352,000 (2012 : $29,352,000) being carried at amortised cost of $28,038,000 (2012 : $27,226,000).
The non-interest-bearing advance is unsecured and repayable in one lump sum in 5 years time from February 17, 2010.
(c) The loan to an associate, Mercatus Co-operative Limited, includes a principal amount of $164,700,000 plus
compounded interest as at March 31, 2013. This amount is unsecured, interest bearing based on (i) 6.5% of the
shareholder’s loan amount or (ii) 95% of the Co-operative’s share of Net Distributable Surplus in respect of each
financial year, whichever amount is lower, and not expected to be repaid within 12 months from the end of the
current financial year. The Co-operative and the other shareholders of Mercatus Co-operative Limited have given
a letter of undertaking that they will not demand payment of the loan within the next 12 months from March 31, 2012
(Note 12). The loan to an associate also includes an amount of $1,800,000 loan to SMRT Alphaplus Pte. Ltd.
during the financial year. This amount is unsecured and bears an interest of 4%.
All the receivables from the associates are all denominated in Singapore dollars.
Future finance charge is represented by:
2013
2012
2013
2012
$’000
$’000
$’000
$’000
Interest-bearing advance
(a)
59,897 59,897
59,897 59,897
Non-interest bearing advance
- nominal value
(b)
29,352 29,352
29,352 29,352
Less: Future finance charge
(1,314)
(2,126)
(1,314)
(2,126)
87,935 87,123
87,935 87,123
Loan to an associate
(c)
175,714 168,077
173,914 168,077
263,649 255,200
261,849 255,200
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
2013
2012
$’000
$’000
Excess of nominal value over the fair value of advance at inception date
(Note 11)
4,068
4,068
Notional interest income adjustment using amortised cost method
(2,754)
(1,942)
1,314
2,126
Group and Co-operative
