100
TEHO INTERNATIONAL INC LTD.
Annual Report 2015
30 OPERATING LEASES
The Group has a number of office, warehouse and factory facilities under operating leases.
The lease rental terms are negotiated for an average term of 3 to 30 years and rentals are
subject to an escalation clause but the amount of rent increase is not to exceed a certain
percentage.
As at 30 June 2015, the total of future minimum lease payment commitments under non-
cancellable operating leases are as follows:
Group
2015
2014
$
$
Not later than 1 year
1,311,600
844,279
Later than 1 year and not later than 5 years
2,235,178 1,624,177
Later than 5 years
9,020,464 8,822,439
12,567,242 11,290,895
Rental expense for the year
1,303,057
805,880
31 PERFORMANCE SHARE PLAN
The Company’s performance share plan, TEHO Performance Share Plan (the “PSP”),
was approved and adopted by the shareholders at the Company’s Extraordinary General
Meeting held on 25 November 2011. The PSP is administered by the Remuneration
Committee (“RC”) with such discretion, powers and duties as are conferred on it by the
Board of Directors.
The PSP contemplates the award of fully-paid shares in the capital of the Company to
participants after certain pre-determined benchmarks have been met. The Company
believes that the PSP will be more effective and rewarding than pure cash bonuses in
motivating employees to work towards pre-determined goals of the Company.
31 PERFORMANCE SHARE PLAN (CONT’D)
The PSP shall continue to be in force at the discretion of the RC, subject to a maximum
period of 10 years commencing from its adoption by the shareholders and may continue
beyond the stipulated period with the approval of the shareholders by an ordinary resolution
in general meeting and of any relevant authorities which may then be required.
Under the rules of the PSP and at the absolute discretion of the RC, confirmed full-time
employees of the group who are of the age of 18 years and above, and directors of the
group who have contributed or will contribute to the success and the development of
the group are eligible to participate in the PSP. However, participation in the PSP by the
directors who are also controlling shareholders and their associates are subject to the
approval by independent shareholders of the Company.
The total number of shares that may be issued or are issuable pursuant to the granting of
the awards under the PSP, when added to the aggregate number of shares that are issued
or are issuable in respect of such other share-based incentive schemes of the Company (if
any), shall not exceed 15% (or such other percentage as may be prescribed or permitted
from time to time by the SGX-ST) of the total number of issued ordinary shares of the
Company on the day immediately preceding the relevant award date.
There were no awards granted under the PSP by the Company or any corporation in the
Group since its inception and during the financial year.
There were no shares issued during the financial year by virtue of the exercise of awards to
take up unissued shares of the Company or any corporation in the Group.
There were no unissued shares under the PSP in the Company or any corporation in the
Group as at the end of the financial year.
32 COMPARATIVE INFORMATION
The financial statements for the year ended 30 June 2014 were audited by another firm of
auditors.
NOTES TO THE
FINANCIAL STATEMENTS
Year ended 30 June 2015
