TAN CHONG MOTOR HOLDINGS BERHAD
Annual Report 2014
86
NOTES TO THE FINANCIAL STATEMENTS
9.
Other investments, including derivatives (continued)
Group
Company
2014
2013
2014
2013
RM’000
RM’000
RM’000
RM’000
Current
Fair value through profit or loss financial asset:
Liquid investments with licensed financial institutions
127,059
152,720
-
-
Representing items:
At cost/amortised cost
-
-
5,846
16,355
At fair value
127,060
152,721
1
1
127,060
152,721
5,847
16,356
Market value of liquid investments with licensed
financial institutions
127,059
152,720
-
-
Note a
The Company entered into a Subscription Option Agreement on 1 October 2009 with Kereta Komersil Seladang (M) Sdn.
Bhd. (“Kereta Komersil”), a subsidiary of Warisan TC Holdings Berhad, pursuant to which the Company was granted
an option to subscribe for up to such number of new ordinary shares of RM1.00 each in the capital of Kereta Komersil
as shall be equivalent to 19% of the total and paid-up capital of Kereta Komersil after such subscription (“Option”). The
Option is available for a period of ten (10) years from the date of the Subscription Option Agreement.
Note b
In June 2009, RM159 million nominal value of second series – 2009A medium term asset-backed notes (“Notes”) was
issued by Special Purpose Entity (“SPE”). The Notes acquired by the Company comprise of Class A Notes, Class B
Notes and Class C Notes. The proceeds from the issuance of the Notes were used by the SPE for the acquisition of hire
purchase receivables from Tan Chong & Sons Motor Company Sdn. Bhd. (“TCM”) and TC Capital Resources Sdn. Bhd.
(“TCCR”). RM110 million of Class A Notes were issued to investors in the debt capital markets while the remaining Class
A Notes, Class B Notes and Class C Notes were subscribed by the Company.
The maturity dates and coupon rates for the outstanding Notes held by the Company as of year end are as follows:
Notes
Date of
maturity
Coupon
rate
RM’000
Class B
150 June 2016
5.85%
Class C
8,000 June 2016
5.00%
