GCS ANNUAL REPORT 2014

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2014
NOTE 10. NON-CURRENT RECEIVABLES
Non-current
2014
$’000
2013
$’000
Loans to related parties 9,736 9,594
Other 6 8
9,742 9,602
As at 30 June 2014, Global Construction Services Limited had a loan outstanding of $736,119 (2013: $591,104) from GCS Concrete Pumping Pty Ltd which is being utilised by the business as
working capital. The loan is unsecured and accrues interest in accordance with the shareholders agreement. Global Construction Services Limited holds a 50% interest in GCS Concrete Pumping Pty
Ltd as a joint venture.
As at 30 June 2014, Global Construction Services Ltd had a loan outstanding of $9,000,000 (2013: $9,000,000) from SmartScaff Pty Ltd which is being utilised by the business as working capital.
The loan is secured and accrues interest at the rate of the Commercial Bill rate plus 2% margin per annum. Global Construction Services Limited holds a 50% interest in SmartScaff Pty Ltd.
NOTE 11. INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD
Global Construction Services Limited is party to a joint venture In GCS Concrete Pumping Pty Ltd. Global Construction Services Limited has a 50% Interest in the issued shares and equity of the
entity. GCS Concrete Pumping Pty Ltd provides concrete pump hire and contracting services to the commercial construction market in Western Australia.
Global Construction Services Limited holds an interest in an associate entity SmartScaff Pty Ltd, a scaffolding company with operations and facilities in Melbourne, Sydney and Brisbane. Global
Construction Services Limited has a 50% Interest in the issued shares and equity of the entity.
The interest of Global Construction Services Limited is accounted in the consolidated financial statements using the equity method of accounting. Global Construction Services Limited share of
results, assets and liabilities are as follows:
Movements in carrying amounts
Carrying amount at the beginning of the financial year 4,923 4,267
Share of profits after income tax 1,702 656
Carrying amount at the end of the financial year 6,625 4,923
Place of
Business/Country
Ownership interest
held by the Group Nature of Measurement
Name of Entity
of Incorporation 2014 2013 relationship
method Fair value
GCS Concrete Pumping Pty Ltd Australia 50% 50% Joint Venture Equity Method N/A*
SmartScaff Pty Ltd Australia 50% 50% Associate Equity Method N/A*
*Private company – no share price available
GLOBAL CONSTRUCTION SERVICES LIMITED ANNUAL REPORT 2014
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