FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
97
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONT’D)
25 DEFERRED GAIN
In the financial year 2010, one of the subsidiaries of the Company sold its leasehold land and buildings, 1 and 2
Changi North Street 2 Singapore to RBC Dexia Trust Services Singapore Limited (in its capacity as trustee of Cambridge
Industrial Trust) and under the terms of sale and purchase agreement, leaseback the properties for the next 7 years
from the date of the sale on 19 October 2010 to 18 October 2017. The excess of the net sale price of $21,742,000
above the fair value of $14,300,000 which amounted to $7,442,000 was deferred and amortised over the leaseback
period of 7 years, which will be ending on 18 October 2017. The fair value calculation was arrived based on valuation
performed by independent valuer. The deferred gain was presented in the consolidated balance sheet as follows:
The Group
2015
$’000
2014
$’000
Balance at beginning of financial year
2,923
3,987
Amortisation of deferred gain (Note 6)
(1,063)
(1,064)
Balance at end of financial year
1,860
2,923
Less: Deferred gain (non-current)
(797)
(1,860)
1,063
1,063
26 BORROWINGS
The Group
The Company
2015
$’000
2014
$’000
2015
$’000
2014
$’000
Current
Short term bank borrowings
(1)
:
- Bank overdrafts
26,216
23,534
-
-
- Bankers' acceptances
13,715
10,912
-
-
- Bills payables
4,527
8,304
-
-
- Revolving credits
4,422
8,424
-
400
Finance lease liabilities
(2)
(Note 27)
293
404
-
-
Term loans
(3)
941
1,444
-
-
50,114
53,022
-
400
Non-Current
Finance lease liabilities
(2)
(Note 27)
168
350
-
-
Term loans
(3)
1,618
1,987
-
-
1,786
2,337
-
-
(1)
Short term bank borrowings:
Bank overdrafts of the Group of:
(a) $23,943,000 (2014 : $21,854,000) is secured by mortgage over properties (Note 13), pledged on the
inventories (Note 18) and trade receivables (Note 19) of all subsidiaries of the Company in The Netherlands.
