Page 52 - ar2012

TEHO INTERNATIONAL INC LTD Annual Report 2012 50
Notes to the
Financial Statements
30 June 2011
17. Investments in Subsidiaries (Continued)
(a) Audited by RSM Chio Lim LLP, Singapore.
(b) Other independent auditors. Reviewed by frms of accountants other than member
frms of RSM International of which RSM Chio Lim LLP in Singapore is a member.
The name is indicated above.
(c) Audited by member frm of RSM International of which RSM Chio Lim LLP in
Singapore is a member.
(d) Cost of investment is less than $1,000.
As is required by Rule 716 of the Listing Manual of the Singapore Exchange Securities
Trading Limited and the board of directors of the company have satisfed themselves
that the appointment of the auditors of its overseas subsidiary would not compromise
the standard and effectiveness of the audit of the group.
18. Investment in Associate
Group Company
2012
$
2011
$
2012
$
2011
$
Unquoted equity shares, at cost 42,794 42,794 42,794 42,794
Share of post-acquisition profts 55,657 50,524 – –
98,451 93,318 42,794 42,794
Share of net book value of
associate 98,451 93,318 98,451 93,318
The associate held by the company is listed below:
Name of Associate, Country of Incorporation, Place
of Operations and Principal Activities
(and Independent Auditors)
Effective Percentage
of Equity Held
2012
%
2011
%
Besteel Pte Ltd (a)
Singapore
Distribution of rigging and mooring equipment
(Liew Keow Seng & Company, Certifed Public
Accountants) 25 25
(a) Other independent auditors. Audited by frms of accountants other than member
frms of RSM International of which RSM Chio Lim LLP in Singapore is a member.
The name is indicated above.
18. Investment in Associate (Continued)
The group’s share of the results of the associate company and its share of assets and
liabilities are as follows:
Group
2012
$
2011
$
Current assets 99,717 95,339
Non-current assets 640 722
Current liabilities (1,905) (2,743)
Revenue 97,470 112,250
Cost and expenses (92,336) (99,243)
19. Inventories
Group
2012
$
2011
$
Goods held for resale 20,126,646 18,731,828
Inventories are stated after allowance.
Movement in above allowance:
Balance at beginning of the year (87,380) (87,380)
Charge to proft and loss included in cost of sales (91,390) –
Balance at end of the year (178,770) (87,380)
Changes in inventories of fnished goods –
(increase)/ decrease (1,023,413) 172,871
The amount of inventories included in cost of goods
sold 25,674,609 23,860,316
Certain inventories are pledged as security for the bank facilities (see Note 24).