Page 68 - 00_See Hup Seng_Cover.indd

SEE HUP SENG LIMITED
Annual Report 2012
66
Notes to the Financial Statements
31 DECEMBER 2012
8 Property, Plant and Equipment (Continued)
(a) As at the year end, the leasehold buildings of the Group consists of the following:
Property Address Description Tenure
81 Tuas South Street 5,
Singapore 637651
Single storey detached factory with
ancillary 2-storey warehouse,
and a 3-storey annexe office block
30 years lease from
1999 with an option to renew
for an additional 1 year
9 Jalan Pesawat,
Singapore 619367
Single-storey detached factory with
2-storey ancillary office and
4 blocks of single detached factories
30 years lease from 2008
1 Penjuru Lane
Singapore 609217
A single-storey detached factory
building with a mezzanine office and
side/rear extension
10 years leasehold
commencing from
1 November 2007
(b) The Group’s leasehold buildings at 81 Tuas South Street 5, Singapore 637651 and at 9 Jalan Pesawat,
Singapore 619367, were professionally valued by an independent valuer based on open market value in
February 2012. The valuer has used the direct comparison method by referring to market evidence of
recent transactions for similar properties. The fair value of the leasehold building has been incorporated
in the financial statements for the current financial year.
(c) Had the property, plant and equipment stated at valuation been included in the financial statements at
cost less depreciation, the net book value would have been as follows:
Group Company
2012 2011 2012 2011
S$’000 S$’000 S$’000 S$’000
Leasehold buildings 14,853 15,218 8,012 8,172
(d) Leasehold buildings of the Group and the Company with carrying amounts of S$18,492,000 (2011:
S$19,248,000) and S$10,398,000 (2011: S$10,949,000) respectively are mortgaged to secure bank
borrowings (Notes 23 and 24).
(e) Net book values of motor vehicles, machinery and yard equipment acquired under hire purchase for the
Group amounts to S$659,000 (2011: S$582,000).
(f) During the financial year, the Group acquired property, plant and equipment with an aggregate cost of
S$3,555,000 (2011: S$3,732,000) of which S$564,000 (2011: S$Nil) was financed by means of hire
purchase.