BANK LOANS PAYABLE

3 Months Ended

Sep. 30, 2014

Notes to Financial Statements

BANK LOANS PAYABLE (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

Bank loans payable consisted of the following:

	Sept. 30, 2014 (Unaudited)			June 30, 2014
Note payable denominated in Malaysian ringgit to a commercial bank for infrastructure investment, maturing in August 2024, bearing interest at the bank’s prime rate (4.6% and 5.1% at September 30, 2014) per annum, with monthly payments of principal plus interest through August 2024, collateralized by the acquired building with a carrying value of $3,804.		2,692			2,786
Note payable denominated in U.S., dollars to a financial institution for working capital plans in Singapore and its subsidiaries, maturing in December 2014, bearing interest at the bank’s prime rate plus 1.50% (4.75% at September 30, 2014) with monthly payments of principal plus interest through December 2014. This note payable is secured by plant and equipment with a carrying value of $429.		104			260
Current portion		(292	)		(448	)
Long term portion of bank loans payable	$	2,504		$	2,598

Future minimum payments (excluding interest) as at September 30, 2014 and June 30, 2014

were as follows:

2015	$	292	$	448
2016		197		198
2017		208		209
2018		219		220
2019		230		138
Thereafter		1,650		1,833
Total obligations and commitments	$	2,796	$	3,046

Carrying value of the Company’s bank loan payable approximates its fair value because the interest rates associated with long-term debt are adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities.