103
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
31 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 2016, the total of future minimum lease payment commitments under
non-cancellable operating leases are as follows:
Group
2016
2015
$
$
Not later than 1 year
1,846,509 1,311,600
Later than 1 year and not later than 5 years
3,192,728 2,235,178
Later than 5 years
5,685,219 9,020,464
10,724,456 12,567,242
Rental expense for the year
1,677,934 1,303,057
32 PERFORMANCE SHARE PLAN
The Company’s performance share plan, TEHOPerformance 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.
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.
