FRONTLINE COVER FA 070606 CR2.indd

frontline technologies corporation ltd
annual report 2006 77
> notes to the financial statement
for the year ended 31 march 2006
16. Associated companies (cont’d)
(c) The summarised financial information of associates is as follows:
Group
2006 2005
$ $
Income statement
Revenue 299,532,692 215,895,718
Expenses (289,559,499) (209,809,811)
Profit after taxation 9,973,193 6,085,907
Balance Sheet
Total assets 174,140,969 153,187,749
Total liabilities 106,093,576 94,192,117
17. Available-for-sale investments
Group
Company
2006 2005 2006 2005
$ $ $ $
Unquoted investments, at cost
– convertible bonds 245,453 245,453 – –
– convertible loan 2,500,000 2,500,000 2,500,000 2,500,000
– preference shares – 999,992 – 999,992
– ordinary shares 1,995,268 1,982,559 1,430,000 1,430,000
4,740,721 5,728,004 3,930,000 4,929,992
Less: allowance for impairment in value
– preference shares – 677,266 – 677,266
– convertible bonds 245,453 245,453 – –
– convertible loan 2,500,000 2,500,000 2,500,000 2,500,000
– ordinary shares 1,984,573 1,971,865 1,430,000 1,430,000
4,730,026 5,394,584 3,930,000 4,607,266
10,695 333,420 – 322,726
Main features of certain investments were as follows:
iASPire.net Pte Ltd (“iASPire”)
Pursuant to a subscription agreement dated 8 May 2000, the Company purchased $2,900,000 of convertible loan stock
bearing interest at 6% per annum. The convertible loan stock is convertible at the Company’s option into ordinary
shares of iASPire. The loan matures on 31 December 2002 and the option also expires on that date. The $2,900,000
convertible loan stock is convertible into ordinary shares representing 66.5% of the equity interest in iASPire. The
agreement also contains anti-dilution protection against the Company’s equity interest in iASPire falling below 51%.
On 10 May 2002, the Company entered into an agreement with iASPire to extend the maturity date for the convertible
loan stocks to 31 December 2003 and the interest of 6% per annum to be waived for the extended period until 31
December 2003. Pursuant to this agreement, the maturity redemption amount shall be equal to the issue price until
the extended maturity date and the other terms and conditions of the first agreement remain unchanged.