FRONTLINE COVER FA 070606 CR2.indd

78
frontline technologies corporation ltd
annual report 2006
> notes to the financial statement
for the year ended 31 march 2006
17. Available-for-sale investments (cont’d)
iASPire.net Pte Ltd (“iASPire”) (cont’d)
As at 31 March 2005, the Company had converted $400,000 convertible loan stock into ordinary shares. The Company
had also invested an additional $530,000 in the form of ordinary stocks by capitalising the debts owing by iASPire. The
Company’s total investment of $930,000 represents 19.3% of equity share of iASPire. This remained unchanged as of 31
March 2006.
iGine.com Pte Ltd (“iGine”)
Under the terms of subscription agreements dated 31 March 2000 and 5 September 2000, the Company purchased
125,000 ordinary shares representing 10.2% equity interest of iGine for a cash consideration of $500,000. The Company
also previously purchased 114,678 redeemable convertible preference shares (“RCPS”) in iGine for a cash consideration
of $999,992. These RCPS are convertible to one ordinary share in the capital of iGine. On 30th May 2005, the Company
redeemed all of its 114,678 Redeemable Convertible Preference Shares (“RCPS”) in iGINE Pte Ltd (“iGINE”) for a
redemption amount of $322,725.74 and an additional 22,727 ordinary shares in iGINE. By the redemption of the RCPS,
the Company has increased its equity interest in iGINE to 11%. The Company’s equity interest remains unchanged as of
31 March 2006.
Beacon Frontline Solutions, Inc. (“Beacon”)
Pursuant to an investment agreement dated 1 August 2002, FTI Ventures Pte Ltd (“FTIV”), a subsidiary, purchased
US$133,333 (equivalent to $245,453) convertible bonds of Beacon. The convertible bonds are non-interest bearing.
The bonds are convertible into 6,666,667 new common shares of Peso 1 each in the capital of Beacon, or such
higher number of shares comprising no less than 25% of the total enlarged capital stock of Beacon as at the date of
conversion. The conversion period for the bonds has expired on 31 July 2005. However, the directors of the Group are
of the opinion that they are able to re-negotiate an extension on the conversion period to a later date.
The fair value of investments in the above unquoted investments is not available as there is no quoted market prices in
an active market and other methods of determining fair value do not result in a reasonable estimate.
18. Club Membership
Group
Company
2006 2005 2006 2005
$ $ $ $
At Cost 357,059 302,845 321,825 285,825
Less: Allowance for impairment in value (86,825) (86,825) (86,825) (86,825)
270,234 216,020 235,000 199,000