NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
100
THE STRAITS TRADING COMPANY LIMITED
18.
SUBSIDIARIES (CONT’D)
(iv)
SRE Venture 3 Pte. Ltd. (“SRE Venture 3”) with 1 ordinary share at the price of $1 per share. SRE Venture 3 had
incorporated a subsidiary, SRE China 1 Pte. Ltd. (“SRE China”) with 1 ordinary share at the price of $1 per share.
SRE China incorporated a subsidiary, Chongqing Xinchuang Mall Management Co., Ltd. with a registered capital of
$100,200,000;
(v)
SRE Venture 4 Pte. Ltd. (“SRE Venture 4”) with 1 ordinary share at the price of $1 per share. SRE Venture 4 had
incorporated a subsidiary, SRE Capital Pte. Ltd. with 1 ordinary share at the price of $1 per share; and
(vi)
SRE Venture 5 Pte. Ltd. with 1 ordinary share at the price of $1 per share.
In 2014, Chongqing Xinchuang Mall Management Co., Ltd (“CXMM”) acquired a retail mall in Chongqing, China (the
“Acquisition”). As part of the Acquisition, SRE China 1 Pte. Ltd. (“SRE China”) was given the option to sell the entire
shareholdings in CXMM to the seller of the retail mall should the retail mall fail to generate a certain internal rate of
return over the investments contributed by SRE China for the Acquisition, within an agreed time frame.
The effect of the option is not expected to be material to the financial statements.
Capital injection by a subsidiary
During the financial year, the Group increased its contribution in Straits Real Estate Pte. Ltd. (“Straits Real Estate”) to
$272,850,000 (2014: $42,500,000) increasing Straits Real Estate’s share capital to $304,950,000 (2014: $47,500,000).
Voluntary liquidation of subsidiaries
During the financial year, two wholly-owned subsidiaries, STC Equities Holding Pte. Ltd. and Malayan Securities Private
Limited were voluntarily liquidated.
In 2014, a wholly-owned subsidiary, Merevale Holdings Private Limited was voluntarily liquidated. An impairment provision
of $40,000,000 was written off. The utilisation of the provision for impairment has no impact to the Group results.
Interest in subsidiaries with material non-controlling interest (NCI)
The Group has the following subsidiaries that have NCI that are material to the Group.
Name of subsidiary
Principal
place of
business
Proportion of
ownership
interest held by
non-controlling
interest
Profit/(loss)
allocated to
NCI during the
reporting period
Accumulated
NCI at the end of
reporting period
2015
2014
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Malaysia Smelting Corporation
Berhad
Malaysia
45%
45%
(783)
(1,964)
40,391
44,857
Straits Real Estate Pte. Ltd.
Singapore
11%
11%
(281)
(428)
32,658
6,044
