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TEHO INTERNATIONAL INC LTD Annual Report 2012 54
Notes to the
Financial Statements
30 June 2012
24. Other Financial Liabilities (Continued)
24A. Bank Loans (Continued)
Term Loan 1 - The loan was covered by corporate guarantee by the parent
company of $3,000,000 and secured by legal charges over the
company’s leasehold buildings. It was repayable over 15 years
in equal instalments with effect from September 2005.
Term Loan 2 and 3 - The loans are covered by corporate guarantee by the parent
company of $20,350,000 and secured by legal charges over
the company’s leasehold buildings. The loans are repayable
over 60 monthly instalments commencing one month from
date of frst drawdown. The loans were drawdown in March
2012.
Loan - The loan is secured by all of the subsidiary’s assets and
guaranteed by a related company.
24B. Trust Receipts
The trust receipts are covered by corporate guarantee by the parent company of
$62,090,000 and secured by legal charges over the company’s leasehold buildings.
24C. Finance Leases
Minimum
payments
Finance
charges
Present
value
$ $ $
2012:
Minimum lease payments payable:
Due within one year 168,036 (16,010) 152,026
Due within 2 to 5 years 462,140 (19,423) 442,717
At end of the year 630,176 (35,433) 594,743
Net book value of plant and equipment
under fnance leases 741,810
There are leases for certain of its plant and equipment under finance leases. The lease
term is 4 years. For the reporting year ended 30 June 2012, the effective borrowing rate
was 3.05 per cent. All leases are on a fixed repayment basis and no arrangements have
been entered into for contingent rental payments. The obligations under finance leases
are secured by the lessor’s charge over the leased assets.
25. Trade and Other Payables
Group Company
2012
$
2011
$
2012
$
2011
$
Trade payables:
Outside parties and
accrued liabilities 3,577,808 1,775,275 134,141 118,848
Subsidiaries (Note 3) – – 2,930,605 –
Subtotal 3,577,808 1,775,275 3,064,746 118,848
Other payables:
Outside parties 526,384 2,963 500,000 –
Fair value loss on
interest rate swap
(Note 27) – 89,399 – –
Other – for advances 112,990 60,800 – –
Subtotal 639,374 153,162 500,000 –
Total trade and other
payables 4,217,182 1,928,437 3,564,746 118,848
26. Acquisition of Subsidiary
On 10 May 2012 the group acquired 100% of the share capital of TEHO Engineering
Pte Ltd (Formerly known as Finessco Systems Pte Ltd) (incorporated in Singapore).
It became a subsidiary (see Note 17 for the principal activities). The transaction was
accounted for by the acquisition method of accounting.
The consideration transferred is as follows
2012
$
Consideration transferred:
Cash 5,282,000
3,891,051 shares issued at market price 600,000
Amount owing to the shareholders 500,000
Total consideration transferred 6,382,000