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5. LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS
12 Months Ended
Jun. 30, 2015
Notes to Financial Statements  
LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

5. LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS

 

The following table presents TTCQ’s loans receivable from property development projects in China as of June 30, 2015. The exchange rate is based on the historical rate published by the Monetary Authority of Singapore as on March 31, 2015, since the net loan receivable was “nil” as at June 30, 2015.

 

  Loan Expiry   Loan Amount     Loan Amount  
Short-Term Loan Receivable Date   (RMB)     (U.S. Dollars)  
JiangHuai (Project - Yu Jin Jiang An) May 31, 2013     2,000       325  
Less: allowance for impairment Dec 31, 2013      (2,000 )     (325
Net loan receivable from property development projects       -       -  

 

  Loan Expiry   Loan Amount     Loan Amount  
Long-Term Loan Receivable Date   (RMB)     (U.S. Dollars)  
Jun Zhou Zhi Ye Oct 31, 2016     5,000       814  
Less: transfer – down payment for purchase of property Oct 14, 2014      (5,000 )     (814
Net loan receivable from property development projects       -       -  

 

The following table presents TTCQ’s loans receivable from property development projects in China as of June 30, 2014. The exchange rate is based on the rate published by the Monetary Authority of Singapore as on June 30, 2014.

 

  Loan Expiry   Loan Amount     Loan Amount  
Short-Term Loan Receivable Date   (RMB)     (U.S. Dollars)  
Investment in JiangHuai (Project - Yu Jin Jiang An) May 31, 2013     2,000       325  
Less: allowance for doubtful receivables Dec 31, 2013     (2,000  )     (325
Net loan receivable from property development projects       -       -  

 

  Loan Expiry   Loan Amount     Loan Amount  
Long-Term Loan Receivable Date   (RMB)     (U.S. Dollars)  
Jun Zhou Zhi Ye Oct 31, 2016     5,000       805  
Net loan receivable from property development projects       5,000       805  

 

 

On November 1, 2010, TTCQ entered into a Memorandum Agreement with JiangHuai Property Development Co. Ltd. (“JiangHuai”) to invest in their property development projects (Project - Yu Jin Jiang An) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310 Receivables (“ASC Topic 310”), amounting to RMB 2,000, or approximately $325. The loan was renewed, but expired on May 31, 2013. TTCQ is in the legal process of recovering the outstanding amount of $325. TTCQ did not generate other income from JiangHuai for the twelve months ended June 30, 2015 and 2014. An impairment of $325 on the investment in Jianghuai was provided for during the second quarter of fiscal 2014 based on TTI’s financial policy.

 

On November 1, 2010, TTCQ entered into another Memorandum Agreement with JiaSheng Property Development Co. Ltd. (“JiaSheng”) to invest in their property development projects (Project B-48 Phase 2) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310, amounting to RMB 5,000, or approximately $814 based on the exchange rate as at March 31, 2015 published by the Monetary Authority of Singapore. The amount was unsecured and repayable at the end of the term. The loan was renewed in November 2011 for a period of one year, which expired on October 31, 2012 and was again renewed in November 2012 and expired in November 2013. On November 1, 2013 the loan was transferred by JiaSheng to and is now payable by Chong Qing Jun Zhou Zhi Ye Co. Ltd. (“Jun Zhou Zhi Ye”), and the transferred agreement expires on October 31, 2016. Hence the loan receivable was reclassified as a long-term receivable. The book value of the loan receivable approximates its fair value. For the fiscal year 2015, TTCQ recorded other income of RMB 417, or approximately $68. An allowance for doubtful deemed interest receivables from Jun Zhou Zhi Ye of $68 was made on the other income. In the second quarter of fiscal year 2015, the loan receivable was transferred to down payment for purchase of investment property that is being developed in the Singapore Themed Resort Project.