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SEE HUP SENG LIMITED
Annual Report 2012
80
Notes to the Financial Statements
31 DECEMBER 2012
29 Reserves
Group Company
2012 2011 2012 2011
S$’000 S$’000 S$’000 S$’000
Made up of:
– Retained earnings/(Accumulated
losses) 7,435 1,958 (12,271) (16,455)
– Asset revaluation reserve (a) 2,461 2,461 2,874 2,874
– Capital reserve (b) – 1,589 – 1,589
– Other reserves (c) (16,687) (18,040) – –
– Foreign currency translation reserve 631 1,095 – –
(13,595) (12,895) 2,874 4,463
Total (6,160) (10,937) (9,397) (11,992)
(a) The above represents the revaluation surplus in respect of leasehold buildings.
(b) The capital reserve represents the proceeds received from the issue of 178,128,050 warrants at S$0.01, net of issue expenses
amounting to S$151,370 in prior years. In financial year 2010, 524,500 warrants have been exercised at an exercise price of S$0.23,
net of expenses of S$33,000. In the financial year 2011, no warrant has been exercised. 23,190,525 warrants have been exercised
during the current financial year.
(c) The other reserve represents the excess of consideration over the fair value of net assets acquired from a non-controlling interest in
a subsidiary.
30 Financial Guarantees
Group Company
2012 2011 2012 2011
S$’000 S$’000 S$’000 S$’000
Corporate guarantees – – 124,981 119,981
Performance guarantees 22,081 21,065 – –
22,081 21,065 124,981 119,981
The financial guarantees of S$119,981,000 are secured under the terms set out in Notes 23 and 24 to the
financial statements. The remaining S$5,000,000 is granted to a third party.
The performance guarantees represent guarantees issued by the Group’s bankers in favour of certain suppliers
of the Group.
The fair value of corporate guarantees was not recorded in the Company’s balance sheet in accordance with the
accounting policy disclosed in Note 2(l), as in the opinion of the directors, the amounts involved are not material.