Page 7 - ar2014

CHAIRMAN’S STATEMENT AND OPERATIONS REVIEW
5
Annual Report 2014 •
a) allowance for doubtful debts for amount due from an
associated company, amounting to approximately S$533,000;
and
b) lower foreign exchange gain of approximately S$103,000
pursuant to revaluation loss of RM-denominated loans to our
Malaysian associated company and subsidiary company,
partially offset by revaluation gain on purchases in Thai Baht.
The increase in other expenses was partially offset by a decrease
in fxed assets written off of approximately S$210,000 mainly due to
a decrease in the closure and relocation of retail outlets in FY2014,
as compared to FY2013, and the absence of a one-off revaluation
defcit amounting to S$76,000 for our factory facility in FY2013.
As a result of the above, total operating expenses increased from
approximately S$35.3 million in FY2013 to approximately S$36.8
million in FY2014, an increase of approximately S$1.5 million or 4.3%.
Total operating expenses amounted to approximately 53.4% of
revenue in FY2014 and 53.7% in FY2013 respectively.
Depreciation
Depreciation decreased by approximately S$107,000 or 3.0% in
FY2014 as compared to FY2013. The decrease was mainly due to
lower depreciation for leasehold improvement expenses in FY2014
by approximately S$176,000, as compared to FY2013, partially
offset by an increase in depreciation of plant and equipment of
approximately S$69,000.
Finance costs
Finance cost increased by approximately S$29,000 due to interest
expenses on loans taken to fnance the purchase of factory facilities.
Gain on disposal of Property, Plant and Equipment
The increase was mainly due to gain from disposal of motor vehicles
of approximately S$94,000.
Proft before tax
The Group’s proft before tax increased from approximately S$6.1
million in FY2013 to approximately S$7.2 million in FY2014, an
increase of approximately S$1.2 million or 19.5%.
Taxation
The Group’s taxation expenses increased from approximately
S$1.1 million for FY2013 to S$1.3 million for FY2014, an increase of
approximately S$144,000 or 13.3%. The increase was mainly due to
higher proft before tax in FY2014 as compared to FY2013.