LOAN RECEIVABLE FROM PROPERTY DEVELOPMENT PROJECTS

12 Months Ended

Jun. 30, 2014

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 loans receivable from property development projects in China as of June 30, 2014. The exchange rate is based on the rate published by the Monetary Authority of Singapore as on June 30, 2014.

	Loan Expiry	Loan Amount			Loan Amount
Short-term loan receivables	Date	(RMB)			(U.S. Dollars)
Investment in JiangHuai (Project - Yu Jin Jiang An)	May 31, 2013		2,000		325
Less: Allowance for impairment			(2,000	)	(325	)
Net short-term loans receivables from property development projects			-		-
Long-term loan receivables
Investment in Jun Zhou Zhi Ye	Oct 31, 2016		5,000		805
Net long-term loans receivables from property development projects			5,000		805

The following table presents TTCQ’s loans receivable from property development projects in China as of June 30, 2013.

	Loan Expiry	Loan Amount		Loan Amount
Short-term loan receivables	Date	(RMB)		(U.S. Dollars)
Investment in JiaSheng Property Development Co. Ltd.	Nov 30, 2013		5,000		814
Investment in JiangHuai (Project - Yu Jin Jiang An)	May 31, 2013		2,000		325
Net short-term loan receivables from property development projects			7,000		1,139

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 $805 based on the exchange rate as at June 30, 2014 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. (“Jun Zhou Zhi Ye”) and the transferred agreement expires on October 31, 2016. Hence the loan receivable has been reclassified as a long-term loan receivable. The book value of the loan receivable approximates its fair value. TTCQ recorded other income of $202 for the year ended June 30, 2014, as compared to $200 for the year ended June 30, 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 $322 based on the exchange rate as at June 30, 2014 published by the Monetary Authority of Singapore. The agreement guaranteed TTCQ an income of $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 legal process of recovering the outstanding amount of $325. TTCQ did not generate other income from JiangHuai for the year ended June 30, 2014, while it recorded other income of $59 for the same period in the last fiscal year. An impairment of $325 was recorded during the second quarter of fiscal year 2014.