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12. LINES OF CREDIT

12 Months Ended

Jun. 30, 2017

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, 2017, 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 3.96% to 7.5%		—	$	4,496	$	2,815
Trio-Tech (Malaysia) Sdn. Bhd.		Lines of Credit	Ranging from 6.3% to 6.7%		—	$	734	$	734
Trio-Tech (Tianjin) Co., Ltd.		Lines of Credit	5.22%		—	$	885	$	10

On January 20, 2017, Trio-Tech Tianjin signed an agreement with a bank for an Accounts Receivable Financing facility with the bank for RMB 6,000, or approximately $871 based on the market rate. Interest is charged at the bank’s lending rate plus a floating interest rate. The effective interest rate is 120% 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 bank account for this facility was set up on January 20, 2017 and has started use in fiscal year 2017.

As of June 30, 2016, 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 1.6% to 5.5%		—	$	5,745	$	3,856
Trio-Tech (Malaysia) Sdn. Bhd.		Lines of Credit	Ranging from 6.3% to 6.7%		—	$	783	$	783
Trio-Tech (Tianjin) Co., Ltd.		Lines of Credit	Ranging from 4.9% to 6.3%		—	$	1,204	$	602

On May 3, 2016, Trio-Tech Tianjin used the facility amounting to RMB 2 million, or approximately $301, and on June 23, 2016, further used an additional facility of RMB 2 million, or approximately $301.