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12. LINES OF CREDIT
 12 Months Ended
Jun. 30, 2015
Notes to Financial Statements  
LINES OF CREDIT (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

12. LINES OF CREDIT

 

The carrying value of the Company’s lines of credit approximates its fair value, because the interest rates associated with the lines of credit are adjustable in accordance with market situations when the Company borrowed funds with similar terms and remaining maturities.

 

 

The Company’s credit rating provides it with readily and adequate access to funds in global markets. As of June 30, 2015, the Company had certain lines of credit that are collateralized by restricted deposits.

 

Entity with   Type of   Interest   Expiration     Credit     Unused  
Facility   Facility   Rate   Date     Limitation     Credit  
                           
Trio-Tech International Pte. Ltd., Singapore   Lines of Credit   Ranging from 1.9% to 5.6%     -     $ 7,422     $ 6,161  
                                 
Trio-Tech (Malaysia) Sdn. Bhd.   Lines of Credit   Ranging from 6.3% to 6.7%     -     $ 396     $ 79  
                                 
Trio-Tech (Tianjin) Co., Ltd.   Lines of Credit   Ranging from 4.9% to 6.3%     -     $ 1,289     $ 1,289  

 

On April 10, 2015, Trio-Tech Tianjin signed an agreement with a bank for an Accounts Receivable Financing facility with the bank for RMB 8,000, or approximately $1,289, interest is charged at the bank’s lending rate plus a floating interest rate. The effective interest rate is 130% of the bank’s lending rate. The financing facility was set up to facilitate the growing testing operations in our Tianjin operations in China. The immediate holding company, Trio-Tech International Pte. Ltd., acted as the guarantor for this bank facility. The bank account for this facility was set up on August 24, 2015 and has not been put to use as of the date of these financial statements.

 

As of June 30, 2014, the Company had certain lines of credit that are collateralized by restricted deposits.

 

Entity with   Type of   Interest   Expiration     Credit     Unused  
Facility   Facility   Rate   Date     Limitation     Credit  
                           
Trio-Tech International Pte. Ltd., Singapore   Lines of Credit   Ranging from 1.9% to 6.0%     -     $ 9,073     $ 5,306