FAR East Hotels and Entertainment plunged deeper into the red, losing $15.28 million for the 12 months to March 31, compared with $8.02 million in the 15 months to March 31, 1992. The loss per share rose from 1.7 cents to 3.2 cents. There was no dividend. Turnover plunged 31.1 per cent to $146.9 million. The group is at the centre of a controversy surrounding a property deal involving land in Shanghai owned by managing director Derek Chiu. It is proposed to sell the land to the listed company for more than $546.25 million, bringing a gain to Mr Chiu of about $506 million. The stock exchange has asked the company to state more clearly why the proposed deal is a good investment for the company. In a separate development, directors of companies in the Far East group have been asked to show their support for non-executive chairman Deacon Chiu, who was diagnosed in September 1991 as suffering from dementia. The diagnosis led to indictments against him being dropped on the basis he was unfit to stand trial. The Shanghai land deal and another proposal to change the domicile of the holding company from Hong Kong to the Cayman Islands need to be approved by shareholders. An extraordinary general meeting on the domicile issue is expected to be held on June 11. Operating profit was $3.43 million, placing the profit margin at 2.3 per cent. There was an operating loss in the previous period of $15.79 million. An exceptional loss of $2.4 million was made, compared with an exceptional profit in the previous period of $4.02 million. The big dent to profitability came in associate company losses of $15.96 million, compared with a loss in the previous period of $5.05 million. The company said profit, after exceptional items, from Hong Kong operations in the year was $1.03. But associate company operations were weak. ''The decline was mainly due to the continuous increase in the operating costs of the cinema division and the drop in turnover and profitability of Sung Dynasty Village due to severe competition,'' said the company. Performance of the Dallas Grand Hotel also was below expectations. In April the group disposed of its remaining 50 per cent holding in Hamsher International, the holding company for the hotel. The price was $70.9 million, leaving a gain of $4.6 million on the net book value of the interest after providing for the group's share in post-acquisition losses. The company said: ''The directors have taken an active role to review and streamline those existing operations with limited contribution to the business activities of the group with a view to improving efficiency and profitability in the long run.''