Page 34 - ar2012

TEHO INTERNATIONAL INC LTD

Annual Report 2012

32

The accompanying notes form an integral part of these fnancial statements.

Group

2012

2011

$

Cash Flows From Operating Activities

Proft Before Income Tax

2,909,562 2,616,484

Adjustments for:

Share of Proft from Equity-Accounted Associate

(5,133)

(13,007)

Depreciation of Property, Plant and Equipment

748,971 728,681

(Gain)/Loss on Disposal of Property, Plant and Equipment

(210,581)

575

Interest Expense

359,922 518,212

Interest Income

(33,039)

(4,563)

Amortisation of Intangible Assets

216,000

–

Net Effect of Exchange Rate Changes in Consolidating Foreign

Entities

(5,926)

(14,658)

Operating Cash Flows Before Working Capital Changes

3,979,776 3,831,724

(Increase)/Decrease in Inventories

(1,023,413)

172,871

(Increase)/Decrease in Trade and Other Receivables

(764,850)

1,408,669

(Increase)/Decrease in Other Assets

(89,027)

111,620

Increase/(Decrease) in Trade and Other Payables

1,091,718 (447,245)

Net Cash Flows From Operations

3,194,204 5,077,639

Income Taxes Paid

(597,543)

(891,375)

Net Cash Flows From Operating Activities

2,596,661 4,186,264

Cash Flows From Investing Activities

Purchase of Property, Plant and Equipment (Note 22)

(339,646)

(475,261)

Proceeds from Disposal of Property, Plant and Equipment

210,581

1,375

Acquisition of Subsidiary (Net of cash acquired) (Note 26)

(3,448,532)

–

Interest Received

33,039

4,563

Net Cash Flows Used in Investing Activities

(3,544,558)

(469,323)

Cash Flows Used In Financing Activities

Dividends paid to Equity Shareholders

(894,400)

Decrease in Finance Leases

(37,257)

–

Cash restriction in Use

(25,000)

–

Increase from New Borrowings

7,000,000

–

Decrease in Other Financial Liabilities

(5,817,480)

(1,629,141)

Interest Paid

(359,922)

(518,212)

Net Cash Flows Used in Financing Activities

(134,059)

(3,041,753)

Net (Decrease)/Increase in Cash and Cash Equivalents

(1,081,956)

675,188

Cash and Cash Equivalents, Statement of Cash Flows,

Beginning Balance

8,111,180 7,435,992

Cash and Cash Equivalents, Statement of Cash Flows,

Ending Balance (Note 22)

7,029,224 8,111,180

Consolidated Statement

of Cash Flows

Year Ended 30 June 2012

1.

General

The company is incorporated in Singapore with limited liability. The financial statements

are presented in Singapore dollar and they cover the company (referred to as “parent”)

and the subsidiaries.

The board of directors approved and authorised these financial statements for issue on

the date of the statement by directors.

The company is an investment holding company. It is listed on the Catalist which is a

market on Singapore Exchange Securities Trading Ltd.

The principal activities of the subsidiaries are described in the notes to the financial

statements below.

The registered office is: 1 Commonwealth Lane, #09-23, One Commonwealth,

Singapore 149544. The company is situated in Singapore.

2.

Summary of Signifcant Accounting Policies

Accounting Convention

The financial statements have been prepared in accordance with the Singapore Financial

Reporting Standards (“FRS”) and the related Interpretations to FRS (“INT FRS”) as issued

by the Singapore Accounting Standards Council and the Companies Act, Chapter 50.

The financial statements are prepared on a going concern basis under the historical cost

convention except where an FRS requires an alternative treatment (such as fair values)

as disclosed where appropriate in these financial statements.

Basis of Presentation

The consolidated financial statements include the financial statements made up to the

end of the reporting year of the company and all of its directly and indirectly controlled

subsidiaries. The consolidated financial statements are the financial statements of the

group presented as those of a single economic entity and are prepared using uniform

accounting policies for like transactions and other events in similar circumstances.

All significant intragroup balances and transactions, including profit or loss and other

comprehensive income items and dividends are eliminated on consolidation. The results

of any subsidiary acquired or disposed of during the reporting year are accounted for

from the respective dates of acquisition or up to the date of disposal which is the date

on which effective control is obtained of the acquired business until that control ceases.

Notes to the

Financial Statements

30 June 2012