NOTES TO THE FINANCIAL STATEMENTS
FOR THE FInAncIAL yEAR EnDED 30 JunE 2016
13
OTHER INVESTMENTS
Group
Company
2016
2015
2016
2015
$’000
$’000
$’000
$’000
Non-current
Held-to-maturity investment
– Structured deposit with a financial institution
400
400
–
–
– 4.60% p.a. SGD corporate bond due 19 January 2021
(unquoted)
1,077
–
–
–
1,477
400
–
–
Current
Held-to-maturity investment
– 7% p.a. SGD corporate bond due 27 April 2017 (quoted)
984
–
–
–
The structured deposit is denominated in Singapore dollars and matures on 4 June 2018. The financial institution
guarantees a minimum interest rate at each of the interest payments dates. The Group earns a bonus interest
calculated based on a formula which is pegged to a basket of traded instruments. The structured deposit bears
effective interest rate of 1.02% per annum.
The structured deposit was pledged to a bank as collateral for the bank borrowings.
The structured deposit has a fair value at the reporting date amounting to $398,000 (2015: $397,000). The fair
value was determined based on the discounted cash flow using effective interest rate for structured deposit of
1.02% per annum as at the reporting date.
The quoted and unquoted bonds have fair values at the reporting date amounting to $956,000 (2015: $Nil) and
$1,071,000 (2015: $Nil) respectively. The fair values are determined based on indicative mid market price as at
the reporting date, which is classified in Level 2 of the fair value hierarchy.
14
INVESTMENT IN SUBSIDIARIES
Company
2016
2015
$’000
$’000
Unquoted equity shares, at cost
Balance at beginning of financial year
26,136
13,750
Capitalisation of debts owing by a subsidiary
100
–
Acquisition during financial year
3,949
12,386
30,185
26,136
Less: Allowance for impairment in value
(2,581)
(2,090)
27,604
24,046
Movement in allowance for impairment in value are as follows:
Company
2016
2015
$’000
$’000
Balance at beginning of financial year
2,090
–
Allowance made
491
2,090
Balance at end of financial year
2,581
2,090
89
ISOTEAM LTD.
ANNUAL REPORT 2016
