83
Annual Report 2015
TEHO INTERNATIONAL INC LTD.
25 RELATED PARTIES
Other related party transactions
Other than as disclosed elsewhere in the financial statements, the transactions with related
parties based on terms agreed between the parties are as follows:
Group
Note
2015
2014
$
$
Rental expenses paid to a related party
(a)
(312,001)
(308,201)
Service fees paid to a related party
(b)
(230,400)
(38,400)
Rental income earned from an associate
96,000
48,000
Sale of goods to an associate
55,927
253,233
Real estate services income earned from an associate
95,468
–
(a) The related party is a company in which a director has a significant controlling interest.
(b) The related party is a company in which a substantial shareholder has a controlling
interest.
Transactions with key management personnel
Key management personnel of the Group are directors and those persons having authority
and responsibility for planning, directing and controlling the activities of the Company,
directly or indirectly. Key management personnel compensation comprised:
Group
2015
2014
$
$
Salaries and other short-term employee benefits
2,759,872 2,190,328
Post-employment benefits, including employer’s
contribution to Central Provident Fund
116,669
96,369
Fees to directors of the Company
196,667
143,333
3,073,208 2,430,030
NOTES TO THE
FINANCIAL STATEMENTS
Year ended 30 June 2015
25 RELATED PARTIES (CONT’D)
Commitments and contingencies
The Company has issued corporate guarantees to banks for borrowings of certain
subsidiaries. These bank borrowings amount to $62,533,404 (2014: $49,123,492) at the
reporting date.
26 OPERATING SEGMENTS
Information about reportable segment profit or loss, assets and liabilities
For management purposes, the reporting entity is organised into the following major
strategic operating segments that offer different products and services:
• Marine, Offshore Oil & Gas: This segment sells rigging and mooring equipment,
offshore oil and gas equipment, and related marine and engineering hardware and
accessories; and
• Property Development: This segment develops, markets and sells real estate
properties, and provides real estate services.
Inter-segment sales are measured on the basis that the entity actually used to price the
transfers. Internal transfer pricing policies of the group are as far as practicable based on
market prices. The accounting policies of the operating segments are the same as those
described in the summary of significant accounting policies.
The management reporting system evaluates performances based on a number of
factors. However, the primary profitability measurement to evaluate segment’s operating
performance is segment profit before tax because management believes that such
information is the most relevant in evaluating the results of certain segments relative to
other entities that operate within these industries.
