FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
75
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONT’D)
9 EXCEPTIONAL ITEMS (CONT’D)
(i) The indemnity compensation to SNECI SAS is in accordance with Article L.134-12 of the French Commercial code
which provides that in the event of agency termination, including non-renewal of agency, the agent shall be
entitled to compensation indemnity for any loss suffered arising from the termination. This code is a matter
of public policy rule. Pursuant to Article L.134-7 of the French Commercial code, SNECI SAS is entitled to post
contractual remuneration constituting commission for activities established during the tenure of the agency
agreement but concluded within a reasonable time after the cessation of the agreement. A settlement agreement
was reached with SNECI SAS for the aforesaid claims; the sum for indemnity compensation was
€
1,055,358
($1,870,885) and that for post contractual remuneration was
€
247,463 ($438,690).
(ii) This represent the reversal of sales commission accrued from the day after the expiration of the agency agreement
on 20 September 2014 to the conclusion of the settlement agreement on 18 September 2015 as disclosed in
Note 9(i).
(iii) This is in respect of impairment loss of deferred development costs by a subsidiary of Juken Technology Limited
as disclosed in Note 17(b).
(iv) This is in respect of loss on winding up of subsidiaries in Malaysia and People's Republic of China.
(v) This is in respect of impairment loss of investment in MTIC Holdings Pte Ltd.
(vi) This was in respect of impairment of goodwill in Allmepp Holding B.V. in last financial year as disclosed in Note
17.
10 INCOME TAX EXPENSE
The Group
2015
$’000
2014
$’000
Income tax expense attributable to profit is made up of:
Current income tax:
- Singapore
(180)
(3)
- Foreign
(5,690)
(3,245)
Deferred income tax (Note 28)
1,023
(1,187)
(4,847)
(4,435)
(Under) Over recognition in respect of previous financial years:
- Current income tax
81
(37)
- Deferred income tax (Note 28)
75
41
156
4
Withholding tax
(431)
(284)
(5,122)
(4,715)
