79
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
17 TRADEAND OTHER PAYABLES (CONT’D)
(a) The deferred consideration forms part of the purchase consideration in relation
to the Group’s acquisition of a subsidiary, which is payable within 12 months from
completion date. Please refer to Note 28 for further details.
(b) The contingent consideration payable relates to the acquisition of a subsidiary,
TEHO Water & Envirotec Pte. Ltd. during the financial year ended 30 June 2013.
The movement in fair value of the contingent consideration payable is as follows:
Group
2016
2015
$
$
At beginning of the year
78,924 723,000
Consideration paid
(78,924)
(450,000)
Changes in fair value
– (194,076)
At end of the year
–
78,924
(c)
The loan due to a subsidiary is unsecured, bears interest of 6.0% per annum
(2015: 6.0%) and repayable by January 2020 over 60 monthly instalments.
(d) The amounts due to a shareholder and subsidiaries are non-trade in nature,
unsecured, interest-free and repayable on demand, except as stated in note 17(c).
18 DERIVATIVE FINANCIAL LIABILITIES
This includes the gross amount of all notional values for contracts that have not yet
been settled or cancelled. The amount of notional value outstanding is not necessarily
a measure or indication of market risk, as the exposure of certain contracts may be
offset by that of other contracts.
Contract notional
Fair value
amount
liabilities
$
$
Group
2016
Structured currency instruments
404,400
40,764
2015
Structured currency instruments
10,279,500
360,241
The purpose of these instruments is to mitigate the fluctuations of expected purchases
(forecast transactions) denominated in USD.
The fair value gains on derivatives are credited to profit or loss and included in
other income.
