FRONTLINE COVER FA 070606 CR2.indd

92
frontline technologies corporation ltd
annual report 2006
> notes to the financial statement
for the year ended 31 march 2006
36. Financial instruments (cont’d)
(a) Financial risk management objectives and policies (cont’d)
(iv) Credit risk
The carrying amount of cash and cash equivalents and trade and other receivables represent the Group’s
maximum exposure to credit risk in relation to financial assets. No other financial assets carrying a significant
exposure to credit risk.
Cash and cash equivalents are placed with reputable financial institutions.
The Group has no significant concentrations of credit risk.
(b)
Fair value
Other than as disclosed in note 17, the carrying amounts of the financial assets and liabilities recorded in the
financial statements of the Group and the Company approximate their fair values.
37. Events occurring after balance sheet date
On 1 April 2006, the Company increased its investment in one of its subsidiaries, Accel Frontline Limited (“AFL”) from
51% to 54.5% for a cash consideration of $1,897,373.
On 1 April 2006, the Company acquired 80.2% equity interest in Dalian BHR Consultancy Services (“DBHR”) from PSA
China Pte Ltd for a cash consideration of $1,113,889. The remaining 19.8% were acquired by one of its associated
companies, MDCL-Frontline (China) Ltd for a cash consideration of $275,000.
On 1 April 2006, the Company divested 3.5% equity interest in Frontline Technologies Corporation (M) Sdn Bhd
(“FTCM”) to the key management of the FTCM for a cash consideration of $153,650.
On 1 June 2006, the Company increased its investment in one of its associated companies, Ecquaria Limited
(“Ecquaria”) from 30% to 49.99%. The new issue and allotment of 78,906 shares by Ecquaria to Frontline is pursuant to
the subscription agreement between the parties dated 7 November 2003.
38. Comparative figures
Certain comparative figures have been reclassified to conform with current year’s presentation.
Group
Company
Restated Reported Restated Reported
2006 2005 2006 2005
$ $ $ $
Balance sheet
Club membership 216,020 – 199,000 –
Other investments – 549,440 – 521,726
Available-for-sale investments 333,420 – 322,726 –
39. Authorisation of financial statements
The financial statements for the year ended 31 March 2006 were authorised for issue in accordance with a resolution of
the directors on 4 July 2006.