Page 9 - ar2014

CHAIRMAN’S STATEMENT AND OPERATIONS REVIEW
Current liabilities
The Group’s current liabilities increased by approximately S$1.3
million or 14.1% from approximately S$8.9 million as at 31 March
2013 to approximately S$10.2 million as at 31 March 2014 mainly
due to the following:
i) an increase in trade and other payables of approximately
S$979,000 mainly due to an increase in period-end billings by
our trade suppliers and contractors for outlet renovations;
ii) an increase in provisions of approximately S$134,000 mainly
due to additional provision of reinstatement cost for new
outlets and provision of unconsumed leave;
iii) an increase in bank loans of approximately S$85,000 mainly
to fnance the renovation of a new factory facility in Malaysia
and reclassifcation of banks loans from long-term to short-
term in accordance with the loan repayment periods, partially
offset by loan repayments during FY2014; and
iv) an increase in provision for tax by approximately S$126,000
due to tax provision for FY2014 of approximately S$1.4 million,
partially offset by tax payments made of approximately S$1.2
million.
The increase in the Group’s current liabilities was partially offset by
a decrease in short term fnance lease liabilities of approximately
S$72,000 mainly due to repayments made during the period,
partially offset by reclassifcations of fnance lease liabilities from
long term to short term.
Non-current liabilities
The Group’s non-current liabilities increased by approximately
S$827,000 or 20.6% from approximately S$4.0 million as at 31 March
2013 to approximately S$4.8 million as at 31 March 2014, mainly
due to the following:-
i) an increase in bank loan of approximately S$418,000 mainly to
fnance the renovation of the new factory facility in Malaysia,
partially offset by reclassifcation of banks loans from long-term
to short-term in accordance with the loan repayment periods ;
ii) an increase in deferred tax liabilities of approximately
S$435,000 mainly due to deferred tax liability of approximately
S$504,000 for revaluation gain on our factory facilities, offset
by a decrease in other deferred tax liabilities of approximately
S$69,000 during FY2014.
The increase in the Group’s non current liabilities was partially
offset by reclassifcation of fnance lease liabilities of approximately
S$128,000 from long term to short term according to the lease
repayment periods, offset by a new fnance lease of approximately
S$102,000 for the purchase of a motor vehicle.
7
Annual Report 2014 •