LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS

6 Months Ended

Dec. 31, 2013

Notes to Financial Statements

LOANS RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

The following table presents TTCQ’s loan receivable from property development projects in China as of December 31, 2013. The exchange rate is based on the date published by the Monetary Authority of Singapore as on December 31, 2013.

	Loan Expiry Date	Loan Amount (RMB)			Loan Amount (U.S. Dollars)
Investment in JiaSheng (Project B-48 Phase 2)	31-Oct-2013		5,000			826
Investment in JiangHuai (Project - Yu Jin Jiang An)	31-May-2013		2,000			330
Less : Allowance for doubtful receivables			(2,000	)		(330	)
Net loan receivable from property development projects			5,000			826

On November 1, 2010, TTCQ entered into a Memorandum Agreement with JiaSheng Property Development Co. Ltd. (“JiaSheng”) to invest in their property development projects (Project B-48 Phase 2) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310-10-25 Receivables, amounting to RMB 5,000, or approximately $826, based on the exchange rate as at December 31, 2013 published by the Monetary Authority of Singapore. The agreement guaranteed TTCQ an income of RMB 1,250, or approximately $196, payable in four installments of RMB 313, or approximately $51. The amount is unsecured and repayable at the end of the term.  The loan was renewed in November 2011 for a period of one year, which expired on October 31, 2012 and was renewed in November 2012 and expired in November 2013. On November 1, 2013 the loan was transferred by JiaSheng to and is now payable by Chong Qing Jun Zhou Zhi Ye Co. Ltd., and the transferred agreement expires on October 31, 2016. The book value of the loan receivable approximates its fair value. TTCQ recorded other income of RMB 313, or approximately $51, and RMB 625, or approximately $102, from JiaSheng for the three and six months ended December 31, 2013.

On November 1, 2010, TTCQ entered into another Memorandum Agreement with JiangHuai Property Development Co. Ltd. (“JiangHuai”) to invest in their property development projects (Project - Yu Jin Jiang An) located in Chongqing City, China. Due to the short-term nature of the investment, the amount was classified as a loan based on ASC Topic 310-10-25 Receivables, amounting to RMB 2,000, or approximately $330 based on the exchange rate as at December 31, 2013 published by the Monetary Authority of Singapore. The agreement guaranteed TTCQ an income of RMB 400, or approximately $66, payable in 12 installments of RMB 33, or approximately $5. The amount is secured by the underlying property and repayable at the end of the term. The loan was renewed, but expired on May 31, 2013. TTCQ is in the process of recovering the outstanding amount. TTCQ did not generate other income from JiangHuai for the three and six months ended December 31, 2013, while it recorded other income of $11 and $26 for the same periods in the last fiscal year, respectively. An allowance for doubtful receivables of $330 was provided for during the second quarter of fiscal 2014, based on the company’s financial policy.