11. TRADE AND OTHER RECEIVABLES (continued) (a) Assessment of impairment allowance of trade and other receivables (continued) ii) Based on preliminary discussion with the Sponsor, Sponsor Group may be agreeable for the advance payments received of S$60,433,000 for the proposed divestment to be applied to set off the RMB82,416,000 (S$15,362,000) rent receivable from the Sponsor Group in relation to the other related-party leases and other receivables, subject to compliance with all applicable legal and regulatory requirements. In relation to the RMB32,600,000 (S$6,057,000) Fu Zhuo Industrial Compensation, the Manager is exploring various options including divestment of the underlying subsidiary to recover the outstanding receivables. Hence, no impairment allowance was made for this balance as at 31 December 2024. 12. DERIVATIVE FINANCIAL INSTRUMENTS Group Contract Notional amount Fair value Assets Liabilities S$’000 S$’000 S$’000 2023 Derivatives not held under hedging accounting Interest rate swaps 107,000 – (166) Cross currency interest rate swaps 72,523 – (1,713) – (1,879) As at 31 December 2024, all the derivative instruments had been settled in full. Although the Group has entered into derivatives to economically hedge its interest rate and foreign currency risks, it does not apply hedge accounting. The Group has entered into interest rate swaps to manage its exposure to interest rate movements on its floating rate interest-bearing borrowings (Note 18). Under the swaps, the Group receives Singapore Overnight Rate Average (“SORA”) floating interest every 3 months and pays fixed rates of interest varying from 3.82% to 3.98% per annum (2023: 1.96% to 3.98% per annum). The Group has also entered into cross currency interest rate swaps to manage its exposure to interest rate and exchange rate movements on its United States Dollars (“USD”) floating-rate interest-bearing borrowings (Note 19). Under the swaps, the Group receives Secured Overnight Financing Rate (“SOFR”) floating interest every 3 months and pays fixed rates of interest varying from 3.82% to 4.19% per annum (2023: 1.79% to 4.19% per annum). 13. LOANS TO SUBSIDIARIES ECW 2024 2023 S$’000 S$’000 Loans to subsidiaries 237,057 237,057 The loans to subsidiaries are unsecured, interest free, repayable on demand and approximate their fair values. EC WORLD REIT 98 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
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