Annual Report 2011 - Food Junction

Notes to the Financial Statements (cont’d)
31 December 2011
4. Investment in subsidiary companies
Loan to subsidiary companies
Company
2011 2010
$’000 $’000
Unquoted shares, at cost
Balance at beginning of year 6,821 6,821
Investments during the year 2 –
Balance at end of year 6,823 6,821
Loan to subsidiary companies 11,110 4,500
Less: Allowance for doubtful debt (1,250) (1,250)
9,860 3,250
This loan is interest-free, unsecured and has no repayment terms. It is not expected to be repaid
within the next 12 months.
At the balance sheet date, the Company has provided an allowance of $1,250,000 (2010: $1,250,000)
for impairment of the unsecured loan to a subsidiary company with a nominal amount of approximately
$1,469,000 (2010: $1,469,000). This subsidiary company has been suffering financial losses since
incorporation.
The Company had the following subsidiary companies as at 31 December 2011:
Name of subsidiary
company Principal activities
Held by the Company
(1) Food Junction
Management Pte Ltd
(1) Food Junction
International Pte Ltd
Operation and
management of food
courts
Investment holding
company
(1) Food Culture Pte Ltd Operation and
management of food
courts and sale of
food and beverage
(1) FNC International Pte.
Ltd.
(1) Malones Holdings
Pte. Ltd.
Sale of food and
beverage and
conduct cooking
courses
Investment holding
company for Malone’s
business operations
(1) Star Party Pte. Ltd. Investment holding
company
(1) Lifestyle Dining Pte. Ltd. Investment holding
company
Country of
incorporation
and place of
business
Percentage of
equity held by
the Group
Cost of
investment
by the Company
2011 2010 2011 2010
% % $’000 $’000
Singapore 100 100 200 200
Singapore 100 100 400 400
Singapore 100 100 400 400
Singapore 100 100 * *
Singapore 100 100 5,821 5,821
Singapore 100 – 1 –
Singapore 100 – 1 –
6,823 6,821
Annual Report 71