irasia.com - Yue Yuen Industrial (Holdings) Limited

Yue Yuen Industrial (Holdings) Limited
(incorporated in Bermuda with limited liabiltiy)

Notes on the Accounts
For the year ended 30th September 1998

Note: [13] [14] [15] [16] [17] [18] [19] [20] [21] [22]

13. NET CURRENT ASSETS

14. STOCKS

15. SHORT-TERM BANK AND OTHER BORROWINGS

16. SHARE CAPITAL

17. SHARE OPTIONS

Under the Company's share option scheme, the directors may, at their discretion, grant options at nil consideration to employees of the Company or its subsidiaries, including directors of any of such companies, to subscribe for shares in the Company. The price per share payable on the exercise of an option will be the higher of the nominal value of the shares or 80% of the average of the closing price per share as quoted on the Stock Exchange for the five trading days immediately preceding the date of grant of the option or such price as from time to time adjusted pursuant to the scheme.
A summary of the options granted under the Company's share option scheme is as follows:

18. RESERVES

The special reserve of the Group represents the difference between the nominal amount of the share capital issued by the Company and the nominal amount of the share capital of subsidiaries acquired pursuant to a corporate reorganisation in preparation for the listing of the Company's shares on the Stock Exchange in 1992.
The contributed surplus of the Company represents the difference between the aggregate net tangible assets of the subsidiaries acquired by the Company under the group reorganisation in 1992 and the nominal amount of the Company's shares issued for the acquisition.
In addition to retained profits, under the Companies Act 1981 of Bermuda (as amended), contributed surplus is also available for distribution to shareholders. However, a company cannot declare or pay a dividend, or make a distribution out of contributed surplus, if:
(a) the company is, or would after the payment be, unable to pay its liabilities as they become due; or
(b) the realisable value of the company's assets would thereby be less than the aggregate of its liabilities and its issued share capital and share premium accounts.
In the opinion of the directors of the Company, the Company's reserves available for distribution to shareholders as at 30th September, 1998 were US$78,085,000 (1997: US$38,178,000), which comprises the aggregate of contributed surplus and retained profits of the Company.

19. LONG-TERM BANK LOANS

The long-term bank loans represent unsecured US$210 million 5-year syndicated bank loans raised in June 1997, consisting of a non-USD term loan portion equivalent to US$140 million and a US$70 million revolving loan; and are repayable during the period from December 2000 to June 2002. As of 30th September, 1998, the term loan portion was fully drawn and US$50 million of the revolving loan portion was drawn. Under a separate swap arrangement, the non-USD term loan portion was swapped into USD liabilities of US$140 million at the time when the loan was drawn. Thus, effectively, the debt was a wholly USD loan, with commercial interest rates in USD. Pursuant to the relevant loan agreement, certain substantial shareholders of the Company, the Tsai family together with PCC, are obliged to maintain an aggregate shareholding of not less than 51% of the issued share capital of the Company.

20. OTHER LONG-TERM LOAN

21. DEFERRED TAXATION

The deferred tax liability represents the tax effect of timing differences arising as a result of the excess of depreciation allowances claimed for tax purposes over depreciation charged in the financial statements.
In the opinion of the directors, the surplus arising on revaluation of the Group's property interests does not constitute a timing difference for tax purposes as any profits realised on future disposal of the investment properties would not give rise to a significant taxation.
The Group and the Company had no significant unprovided deferred taxation at the balance sheet date.

22. RECONCILIATION OF PROFIT FROM ORDINARY ACTIVITIES BEFORE TAXATION TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Annual Reports

Company's Index

irasia.com

DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any information provided on this website. Under no circumstances shall irasia.com Ltd be liable for damages resulting from the use of the information provided on this website.
TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited.
TERMS OF USE: Please read the Terms of Use governing the use of our website.

13.	NET CURRENT ASSETS

14.	STOCKS

15.	SHORT-TERM BANK AND OTHER BORROWINGS

16.	SHARE CAPITAL

17.	SHARE OPTIONS Under the Company's share option scheme, the directors may, at their discretion, grant options at nil consideration to employees of the Company or its subsidiaries, including directors of any of such companies, to subscribe for shares in the Company. The price per share payable on the exercise of an option will be the higher of the nominal value of the shares or 80% of the average of the closing price per share as quoted on the Stock Exchange for the five trading days immediately preceding the date of grant of the option or such price as from time to time adjusted pursuant to the scheme. A summary of the options granted under the Company's share option scheme is as follows:

18.	RESERVES The special reserve of the Group represents the difference between the nominal amount of the share capital issued by the Company and the nominal amount of the share capital of subsidiaries acquired pursuant to a corporate reorganisation in preparation for the listing of the Company's shares on the Stock Exchange in 1992. The contributed surplus of the Company represents the difference between the aggregate net tangible assets of the subsidiaries acquired by the Company under the group reorganisation in 1992 and the nominal amount of the Company's shares issued for the acquisition. In addition to retained profits, under the Companies Act 1981 of Bermuda (as amended), contributed surplus is also available for distribution to shareholders. However, a company cannot declare or pay a dividend, or make a distribution out of contributed surplus, if: (a) the company is, or would after the payment be, unable to pay its liabilities as they become due; or (b) the realisable value of the company's assets would thereby be less than the aggregate of its liabilities and its issued share capital and share premium accounts. In the opinion of the directors of the Company, the Company's reserves available for distribution to shareholders as at 30th September, 1998 were US$78,085,000 (1997: US$38,178,000), which comprises the aggregate of contributed surplus and retained profits of the Company.

19.	LONG-TERM BANK LOANS The long-term bank loans represent unsecured US$210 million 5-year syndicated bank loans raised in June 1997, consisting of a non-USD term loan portion equivalent to US$140 million and a US$70 million revolving loan; and are repayable during the period from December 2000 to June 2002. As of 30th September, 1998, the term loan portion was fully drawn and US$50 million of the revolving loan portion was drawn. Under a separate swap arrangement, the non-USD term loan portion was swapped into USD liabilities of US$140 million at the time when the loan was drawn. Thus, effectively, the debt was a wholly USD loan, with commercial interest rates in USD. Pursuant to the relevant loan agreement, certain substantial shareholders of the Company, the Tsai family together with PCC, are obliged to maintain an aggregate shareholding of not less than 51% of the issued share capital of the Company.

20.	OTHER LONG-TERM LOAN

21.	DEFERRED TAXATION The deferred tax liability represents the tax effect of timing differences arising as a result of the excess of depreciation allowances claimed for tax purposes over depreciation charged in the financial statements. In the opinion of the directors, the surplus arising on revaluation of the Group's property interests does not constitute a timing difference for tax purposes as any profits realised on future disposal of the investment properties would not give rise to a significant taxation. The Group and the Company had no significant unprovided deferred taxation at the balance sheet date.

22.	RECONCILIATION OF PROFIT FROM ORDINARY ACTIVITIES BEFORE TAXATION TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Yue Yuen Industrial (Holdings) Limited(incorporated in Bermuda with limited liabiltiy)

Yue Yuen Industrial (Holdings) Limited
(incorporated in Bermuda with limited liabiltiy)